CREFC Responds to CFPB 1071 Re-Proposal
December 16, 2025
On December 15, CREFC submitted a response to the Consumer Financial Protection Bureau’s (CFPB) 1071 re-proposal. CREFC also signed onto a joint trade letter, also submitted on December 15.
The 1071 reporting requirements, via a final rule originally issued in 2023, prescribe the collection of data on loan applications and originations made to small businesses.
- The 2023 rule largely exempted multifamily loans, which are reported separately under the Home Mortgage Disclosure Act (HMDA).
- However, it did not exempt loans secured by commercial real estate made to a small businesses.
The Re-proposal makes several helpful changes for CRE lenders, but still falls short of exempting commercial mortgages and similar credit from data collection.
- Lower Revenue Threshold: The CFPB has proposed to lower the small business revenue threshold from $5 million to $1 million in gross annual revenue.
- Higher Institutional Loan Threshold: The CFPB has recommended making some changes to the definition of covered financial institution, including raising the origination threshold from 100 to 1,000 in each of the preceding two years.
- Multifamily loans continue to be excluded from 1071 reporting.
CREFC argues that as reflected in both the federal regulatory framework and industry practice, CRE finance is fundamentally different from small-business lending.
- Bringing CRE loans within the scope of section 1071 would stretch the reporting regime beyond its intended focus on small-business credit.
We urge the CFPB, therefore, to exempt from section 1071 rulemaking credit secured by non-owner-occupied commercial real estate.
- Like other investment properties, these loans are underwritten based on the property’s cash flow and collateral value rather than the operating revenues of a business.
- The 1071 framework would be more coherent and targeted if it excluded CRE investment properties.