Wolters Kluwer is the NAFCU Services Preferred Partner for Consumer and Member Business Lending & Deposit Services.
Listen On:
Key Takeaways:
- [01:01] Section 1071 of the Dodd-Frank Act actually amended the Equal Credit Opportunity Act to require financial institutions to collect and submit to the Consumer Financial Protection Bureau certain data regarding applications for credit for small businesses including those that are owned by women and minorities. The law requires CFPB to publish the data annually.
- [01:59] It is really important to keep in mind that this is fair lending regulation, not just a big exercise in data collection. The end game here is extremely important.
- [02:34] It should be used by financial institutions to self-access fair lending performance and help them identify ways to serve their customers better.
- [04:56] According to the CFPB credit unions increased their small business lending from 30 billion dollars in 2008 to over 71 billion dollars in 2021.
- [06:33] The CFPB is telling you that you can use the best information that you have available to you and if you don’t have that information readily available use the fourth quarter of 2023 as a proxy.
- [11:31] The threshold for reporting is now 100 covered transactions in each of the preceding two calendar years. That is up from 25 in the proposal which makes a significant difference, particularly for smaller institutions.
- [12:41] A financial institution must begin collecting data on October 1st, 2024 if it originated at least 25 covered originations in both 2022 and 2023.
- [14:58] Demographic information that needs to be collected relates to the status of a business, race, ethnicity, sex, and gender of the principal owners of the business. The CFPB provided a form that can be used by covered institutions to collect all this information.
- [20:13] Covered institutions are recommended to consider the expanded fair lending and other related compliance risks associated with the CFPB's new small business lending regulation.
Presented By
Tim Burniston
Timothy Burniston Senior Advisor, Regulatory Strategy
Wolters Kluwer Compliance Solutions
Timothy R. Burniston joined Wolters Kluwer in December 2011 to lead the company’s Risk and Compliance consulting practice. Under his leadership, the practice grew significantly in scope and now enjoys a national reputation for excellence. In July 2017 he was named senior advisor, regulatory strategy. In this role, he advises the Wolters Kluwer Financial & Corporate Compliance divisional executive leadership team and clients on emerging issues, legislative and regulatory developments, and regulatory strategy.
Prior to joining Wolters Kluwer, Burniston spent more than 35 years designing and leading compliance examination and supervision programs at the Federal Reserve Board (Fed), Federal Deposit Insurance Corporation (FDIC), and Office of Thrift Supervision (OTS). Immediately before coming to Wolters Kluwer, Burniston was the senior associate director at the Fed’s Division of Consumer and Community Affairs where he was responsible for its compliance, CRA, fair lending, applications, examiner training, information management, and Reserve Bank oversight programs. While with the Fed, he was tapped by the U.S. Department of the Treasury to lead the implementation team that developed the Consumer Financial Protection Bureau’s large depository institution examination program.
Burniston began his regulatory career as an analyst and consumer compliance examiner with the Federal Reserve Bank of New York in 1977, and he joined the Fed’s Division of Consumer and Community Affairs in Washington, DC, shortly thereafter. Burniston left the Fed in 1988 to establish the compliance examination program at the former Office of Thrift Supervision. In 2000, he joined the FDIC to oversee a major redesign of that agency’s consumer compliance examination program. He returned to the Fed in 2005.
Burniston earned his undergraduate degree from Gettysburg College and an M.B.A. from George Washington University. He is a Certified Regulatory Compliance Manager (CRCM) and previously served as a CRCM Advisory Board member for the American Bankers Association.
Jason Keller
Jason Keller, MPPA Associate Director, U.S. Advisory Services
Jason Keller, MPPA is an associate director who is responsible for managing a team of regulatory consultants who develop and deliver fair and responsible banking as well as Community Reinvestment Act (CRA) related consulting services for the U.S. Advisory Services group at Wolters Kluwer Compliance Solutions.
Prior to this role, Keller spent over 20 years at the Federal Reserve Bank of Chicago, where most recently he served as a community and economic senior advisor responsible for overseeing and evaluating economic capacities and sustainable growth opportunities. In this role, he conducted seminars and workshops, prepared written materials, and provided thought leadership on aspects of the CRA, community development, and applicable fair lending laws and regulations.
Keller is a commissioned bank examiner and has served in leadership roles assessing compliance with various consumer protection regulations in community, regional, and large banks and bank holding companies in urban, suburban and rural markets. He often speaks, trains, and moderates sessions on topics related to CRA and fair lending at industry events attended by bankers, government officials, non-profit leaders, students, and others to increase knowledge on furthering fair access to credit, capital, and opportunity.
He is an active member in several economic and civically minded organizations. He holds a bachelor’s degree in sociology from Illinois State University in Normal, Ill. and a master’s degree in public policy and administration (MPPA) from Northwestern University in Evanston, Ill.