CFPB Hosts Combined Advisory Committees Meeting
Last week, AFSA staff attended the Consumer Financial Protection Bureau’s (CFPB) virtual advisory committee meetings at which members discussed the agency’s recent initiatives and rulemakings, along with broader discussions on COVID-19-related trends in the mortgage market. Specifically, the meeting included discussions on implementing Section 1071 and Section 1033 of the Dodd-Frank Act.
Section 1071 requires financial institutions to gather and report data regarding credit applications for women and minority-owned small business. The CFPB stated that its key consideration in this rulemaking is to provide more small business lending data, while minimizing implementation burdens and unintentionally creating barriers. AFSA has been engaged with this rulemaking and is advocating for the creation of a CFPB-run small business database.
The meeting later shifted to a discussion on implementing Section 1033 of the Dodd-Frank. Section 1033 concerns data aggregators and is designed to address current market practices regarding the use, retention, and transmission of consumer data. Examples include fintechs contracting with financial institutions regarding the use of consumer account data. Current data collection practices including screen scrapping, dedicated portals, and APIs. The panel discussed the various ways consumers benefit from access to consumer data, while noting that such access poses certain risks. These risks necessitate actions from regulators and covered entities to ensure safe consumer data access.
AFSA has actively engaged with Congress and regulators on various consumer protection data issues and will continue to engage with the CFPB on Dodd-Frank-related matters.
November 23rd, 2020 by Dan Bucherer