Is The Dodd-Frank Act Spurring More Lending To The Poor?

NCRC President, Founder John Taylor Testifies at CFPB on Section 1071 Of The Dodd-Frank Act Regarding The Impact On Small Business Data

WASHINGTON, DC – John Taylor, President and Founder of the National Community Reinvestment Coalition, testified today at the Consumer Finance Protection Bureau’s (CFPB) Symposium: Section 1071 of the Dodd-Frank Act.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q3 2019 hedge fund letters, conferences and more

CFPB organized the symposium to hear from industry and the public on issues surrounding small business lending data.

The Dodd-Frank Act details

Section 1071 of the Dodd-Frank Act of 2010 amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report information regarding women and minority-owned small business credit applications. The CFPB has yet to implement this section. And without it, obtaining data on small business lending is difficult and incomplete, as NCRC found with a recent report.

“One of the basic conclusions of the CFPB was that there exists a gap in the available data that limits their understanding of the small business financing market," Taylor said in his opening remarks at the symposium. "NCRC and others agree and have reached this same conclusion, that the small business lending data available simply was inconclusive and that further detail or data was needed to measure the level of commitment by financial institutions to address the small business needs of minorities and women.”

In written testimony submitted to the CFPB prior to the symposium, Taylor urged the Bureau to “expeditiously proceed with this important rulemaking.”

“By holding institutions accountable, public data disclosure effectively motivates financial institutions to increase their lending to traditionally underserved small businesses,” he said. “Robust data also more precisely identifies the causes of unmet credit needs and therefore helps stakeholders to more efficiently craft policies and programs to meet the unmet needs.”

To read release online: https://ncrc.org/ncrc-president-founder-john-taylor-testifies-at-cfpb-on-small-business-data/


About NCRC

NCRC and its grassroots member organizations create opportunities for people to build wealth. www.ncrc.org

 



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver