Request for Information Regarding the Small Business Lending Market, 22318-22322 [2017-09732]
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Federal Register / Vol. 82, No. 92 / Monday, May 15, 2017 / Notices
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BILLING CODE 3510–22–P
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[Docket No.: CFPB–2017–0011]
Request for Information Regarding the
Small Business Lending Market
Bureau of Consumer Financial
Protection.
ACTION: Notice and request for
information.
The Consumer Financial
Protection Bureau (CFPB or Bureau)
seeks information about the small
business lending market. Section 1071
of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (DoddFrank Act) amends the Equal Credit
Opportunity Act (ECOA) to require
financial institutions to compile,
maintain, and report information
concerning credit applications made by
women-owned, minority-owned, and
small businesses. In an effort to inform
the Bureau’s work on the business
lending data collection rulemaking to
implement section 1071, the Bureau
seeks to learn more about the small
business financing market, including
understanding more about the products
that are offered to small businesses,
including women-owned and minorityowned small businesses, as well as the
financial institutions that offer such
credit. The Bureau also seeks to learn
more about the business lending data
that currently is used and may be
maintained by financial institutions in
connection with credit applications
made by small businesses, including
women-owned and minority-owned
small businesses, and the potential
complexity and cost of small business
data collection and reporting. The
Bureau is also seeking comment from
the public on privacy concerns related
to the disclosure purposes of section
1071.
SUMMARY:
Comments must be received on
or before July 14, 2017.
ADDRESSES: You may submit responsive
information and other comments,
identified by Docket No. CFPB–2017–
0011, by any of the following methods:
• Electronic: Go to https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: FederalRegisterComments@
cfpb.gov. Include Docket No. CFPB–
2017–0011 in the subject line of the
email.
• Mail: Monica Jackson, Office of the
Executive Secretary, Consumer
Financial Protection Bureau, 1700 G
Street NW., Washington, DC 20552.
• Hand Delivery/Courier: Monica
Jackson, Office of the Executive
DATES:
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Secretary, Consumer Financial
Protection Bureau, 1275 First Street NE.,
Washington, DC 20002.
Instructions: Please note the number
associated with any question to which
you are responding at the top of each
response (you are not required to
answer all questions to receive
consideration of your comments). The
Bureau encourages the early submission
of comments. All submissions must
include the document title and docket
number. Because paper mail in the
Washington, DC area and at the Bureau
is subject to delay, commenters are
encouraged to submit comments
electronically. In general, all comments
received will be posted without change
to https://www.regulations.gov. In
addition, comments will be available for
public inspection and copying at 1275
First Street NE., Washington, DC 20002,
on official business days between the
hours of 10 a.m. and 5 p.m. Eastern
Time. You can make an appointment to
inspect the documents by telephoning
202–435–7275.
All submissions, including
attachments and other supporting
materials, will become part of the public
record and subject to public disclosure.
Sensitive personal information, such as
account numbers or Social Security
numbers, or names of other individuals,
should not be included. Submissions
will not be edited to remove any
identifying or contact information.
FOR FURTHER INFORMATION CONTACT: For
general inquiries, submission process
questions or any additional information,
please contact Monica Jackson, Office of
the Executive Secretary, at 202–435–
7275.
SUPPLEMENTARY INFORMATION:
The Bureau is seeking comment
through this Request for Information
(RFI) to better understand the small
business lending market in order to
prioritize and streamline work to
implement section 1071. The feedback
obtained in response to this RFI will
help the Bureau fulfill the statutory
purpose of section 1071 in a manner
that is efficient and minimizes burden
on industry.
The Bureau encourages comments
from all interested members of the
public, including:
• Individual consumers;
• Individual businesses;
• Consumer civil rights and privacy
advocates;
• Small business advocates;
• Business development and
community development organizations;
• Lenders, including depository and
non-depository institutions;
• Business trade associations;
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• Data software vendors and
developers who may provide services to
lenders for regulatory compliance and
data submission;
• Consultants, attorneys, or other
professionals who advise market
participants on these issues;
• Federal, State, and municipal
regulators;
• State, local, and tribal government
entities;
• Researchers or members of
academia; and
• Any other interested parties.
The Bureau is interested in all input
from commenters, including knowledge
of standard practices, understanding of
the market as a whole, and views on the
questions included in this RFI.
Part A: Congressional Mandate To
Enact Section 1071
Section 1071 of the Dodd-Frank Act
(section 1071) amends ECOA to require
financial institutions to report
information concerning credit
applications made by women-owned,
minority-owned, and small businesses.
The purpose of this data collection, as
stated by Congress in section 1071, is to
‘‘facilitate enforcement of fair lending
laws’’ and to ‘‘enable communities,
governmental entities, and creditors to
identify business and community
development needs and opportunities of
women-owned, minority-owned, and
small businesses.’’ 1 In order to achieve
this statutory purpose, the Bureau
believes the section 1071 data should
cover an extensive share of the market
and contain enough flexibility to
analyze different market segments.
However, there are costs associated with
any data collection which have to be
weighed against the benefits. Please
consider this context in responding to
this RFI.
Small businesses, including those
owned by women and minorities, are
critical engines for economic growth,
and access to credit is a crucial
component of their success. The Bureau
believes that data collected under the
business lending data collection rule as
mandated by section 1071 would fill
existing gaps in the general
understanding of the small business
lending environment. Further, data
would be helpful in fulfilling Congress’s
purposes in enacting section 1071 by
identifying potential fair lending
concerns regarding small businesses,
including women-owned and minorityowned small businesses, as well as the
needs and opportunities for both
business and community development.
At the same time, the Bureau recognizes
1 15
U.S.C. 1691c–2(a).
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that certain financial institutions may
not be collecting and reporting
information regarding small business
lending in connection with other
regulatory requirements and that
therefore a new data collection
requirement could pose implementation
and operational challenges.
The Bureau is in its early stages with
respect to implementing section 1071,
and is currently focused on outreach
and research to further develop its
understanding of the small business
lending market, including the
institutions, credit products, recording
systems, underwriting approaches,
distribution channels, and types of
applicants in that market. In furtherance
of that outreach and research, the
Bureau is issuing this RFI. The Bureau
is interested in exploring potential ways
to implement section 1071 in a balanced
manner with a goal of providing timely
data with the highest potential for
achieving the statutory objectives, while
minimizing burden to both industry and
the Bureau.
Part B: Questions Related to the Small
Business Lending Market
The Bureau is seeking comment to
enhance our understanding of the small
business lending market in order to
prioritize and guide research and policy
development work for implementation
of section 1071.
The Bureau recognizes that some
commenters may feel that answering the
questions below raises concerns about
revealing proprietary information. We
encourage commenters to share as much
detail as possible in this public forum.
We also welcome comments from
representatives, such as attorneys,
consultants, or trade associations, which
need not identify their clients or
members by name. The Bureau also
welcomes any relevant empirical
research or studies on these topics.
The questions below are separated
into five categories: (1) Small Business
Definition, (2) Data Points, (3) Financial
Institutions Engaged in Business
Lending, (4) Access to Credit and
Financial Products Offered to
Businesses, and (5) Privacy.
Small Business Definition
Section 1071 defines ‘‘small business’’
as having ‘‘the same meaning as the
term ‘small business concern’ in section
3 of the Small Business Act (15 U.S.C.
632).’’ 2 This section of the Small
Business Act sets forth a multi-part
definition of ‘‘small business concern’’
that includes a provision authorizing
the Small Business Administration
2 15
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(SBA) to establish detailed size
standards that meet certain criteria set
forth within the statute.3 The most
commonly used size standards
developed by the SBA are industryspecific size standards organized by the
six-digit North American Industry
Classification System (NAICS-specific
size standards).4 These NAICS-specific
size standards are primarily used by the
SBA and other Federal agencies to
determine eligibility for Federal contract
and loan assistance programs.5
Section 632 also permits the SBA to
approve size standards developed by
other Federal agencies that meet certain
requirements.6 As an alternative to the
NAICS-specific size standards, the
Bureau is exploring developing an
alternative definition of small business
that meets the criteria outlined in
section 632 of the Small Business Act
and is tailored to the needs of section
1071, a business lending data collection
rule. Specifically, the Bureau is
exploring size standard approaches that
potentially may not require a
determination of a six-digit NAICS code
for each applicant while remaining
consistent with the SBA’s policy and
regulatory requirements and that are
aligned with the common practices of
financial institutions extending credit to
small businesses.
Under nearly any definition of ‘‘small
business,’’ a substantial percentage of
women-owned and minority-owned
businesses would be covered. For
example, a definition of small
businesses as businesses with annual
revenue of $1 million or less 7 covers
approximately 95% of all firms, over
97% of all minority-owned firms, and
over 98% of all women-owned firms.8
Bureau outreach to date with industry
reveals other definitions used by
financial institutions as to what
constitutes a ‘‘small business’’ for
internal purposes, including for
focusing marketing resources,
3 15
U.S.C. 632(a)(2).
CFR 121.201 (NAICS-specific size standards
promulgated by the SBA).
5 See 13 CFR 121.101(a) (‘‘SBA’s size standards
define whether a business entity is small and, thus,
eligible for Government programs and preferences
reserved for ‘small business’ concerns.’’)
6 15 U.S.C. 632(a)(2)(C).
7 Under the Community Reinvestment Act,
certain financial institutions report information on
small business loans extended to businesses with
annual revenue of $1 million or less. See, e.g., 12
CFR 228.42.
8 U.S. Census Bureau, Statistics for All U.S. Firms
by Industry, Gender, and Receipts Size of Firm for
the U.S. and States: 2012 More Information 2012
Survey of Business Owners, American Fact Finder
(last visited April 12, 2017), available at https://
factfinder.census.gov/faces/tableservices/jsf/pages/
productview.xhtml?pid=SBO_2012_
00CSA05&prodType=table.
4 13
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establishing appropriate products to
support the small business segment, and
establishing risk management practices.
Common factors that financial
institutions use for defining a business
as small include annual revenue,
industry, loan size, aggregate credit
exposure, or some combination of these
factors. The threshold amounts that
financial institutions apply to each of
these factors also vary considerably
among financial institutions.
Through this RFI, the Bureau hopes to
learn more about the various definitions
of a small business that are currently
utilized by lenders.
1. What potential challenges and
burdens would financial institutions or
applicants encounter if a business
lending data collection rule defined a
‘‘small business’’ applicant using the
SBA’s NAICS-specific size regulations?
2. What definitions of ‘‘small
business’’ do financial institutions
currently use internally or for external
reporting purposes?
a. What factors are used to define a
‘‘small business’’ (such as revenue of the
business applicant)? If more than one
factor is used, are those factors
considered individually or in
combination?
b. What minimum or maximum
thresholds are used to define a ‘‘small
business’’?
c. Are certain types of small
businesses excluded or treated
differently under the definitions?
d. Do the definitions take into account
entities that are related to the small
business applicant (such as parents,
subsidiaries, affiliates, etc.)?
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Data Points
Section 1071 specifies particular data
points that financial institutions must
compile and maintain, submit annually
to the Bureau, and make available to
members of the public upon request
unless the Bureau determines to permit
the deletion or modification of certain
data to advance a privacy interest.9
These include:
• Application number;
• application date;
• type and purpose of the financing;
• amount applied for;
• amount approved;
• type of action taken and action
taken date;
• census tract of the principal place
of business;
9 15 U.S.C. 1691c–2(e)(2)(A)–(G), (e)(4), (f)(1),
(f)(2)(A)–(B). The statute also provides that the data
shall annually be made available to the public
generally by the Bureau, in such form and in such
manner as is determined by the Bureau, by
regulation. Id. 1691c–2(f)(2)(C).
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• gross annual revenue in the last
fiscal year of the applicant preceding
the date of the application; and
• information about the race, sex, and
ethnicity of the business principal
owners.10
Section 1071 also gives the Bureau
authority to require ‘‘any additional data
that the Bureau determines would aid in
fulfilling the purposes of [1071]’’.11 The
purpose of section 1071 provided in the
statute is, as previously noted: (1) To
facilitate enforcement of fair lending
laws; and (2) to enable communities,
governmental entities, and creditors to
identify business and community
development needs and opportunities of
women-owned, minority-owned, and
small businesses.12
As part of its research and policy
development work, the Bureau will
explore how to best implement the data
point reporting requirements for the
business lending data collection
rulemaking to serve the purposes of
section 1071 while minimizing burden.
Through this RFI, the Bureau seeks
information on existing business
lending data collection and reporting
standards, how various data points are
used by the business financing industry,
how reporting particular data points
could serve the purposes of section
1071, and other issues related to data
points.
As part of a business lending data
collection rulemaking, the Bureau plans
to explore how to best implement the
statutorily-mandated data points. The
Bureau believes the reporting and
potential disclosure of these data would
constitute a major advancement in
information on lending to small
businesses, including to women-owned
and minority-owned small businesses.
In addition, the Bureau will consider
whether supplementing the statutorilymandated data points with a limited
number of discretionary data points
would serve the purposes of section
1071, improve the quality of the data for
all stakeholders, and reduce the
possibility of misinterpretations or
10 15 U.S.C. 1691c–2(e)(2)(A)–(G). With some
exceptions, section 1002.5(b) of Regulation B,
which implements the ECOA, prohibits a creditor
from inquiring about the race, color, religion,
national origin, or sex of an applicant or any other
person in connection with a credit transaction.
Section 1002.5(a)(2) provides an exception to that
prohibition for information required by a
regulation, order, or agreement issued by or entered
into with a court or an enforcement agency to
monitor or enforce compliance with ECOA,
Regulation B, or other Federal or State statutes or
regulations. Section 1002.5(a)(3) provides another
exception to that prohibition for information to
determine eligibility for a special purpose credit
program under 1002.8.
11 15 U.S.C. 1691c–2(e)(2)(H).
12 15 U.S.C. 1691c–2(a).
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incorrect conclusions that might arise
from the collection or release of more
limited data. The Bureau believes that
responses to the RFI questions will
provide helpful information for this
purpose and aid the Bureau in
determining whether to supplement, in
a limited fashion, the statutorilymandated data points.
3. What data standards regarding
information on small business financing
are financial institutions currently
subject to or using? Data standards are
rules by which data is described and
recorded using standardized formats
and meanings for purposes such as
sharing, exchanging and analyzing data.
Examples could include governmental
reporting or recordkeeping
requirements, as well as standards
associated with credit bureaus, data
repositories, trade associations,
accounting standards, or securitization
or guarantee programs.
a. What information is being
collected, reported, or disclosed using
these data standards?
b. Are these data standards applicable
at the loan level, on an aggregate basis,
or some combination of the two?
4. What information concerning the
data points specifically identified for
reporting under section 1071 by
Congress do financial institutions
collect and maintain in the ordinary
course of business concerning their
small business lending?
a. What sources of information do
financial institutions rely on in
obtaining this data, including, for
example, applicant self-reporting,
specific documents used by financial
institutions to obtain this data, or third
party sources?
b. What technological or other
challenges do financial institutions
foresee in collecting and reporting this
data (such as the manual compilation of
information, the lack of an electronic
system for maintaining this information,
the potential for this information to be
found in multiple systems within a
financial institution, etc.)? What steps
can the Bureau take within a business
lending data collection rulemaking to
minimize the challenges?
c. With respect to which data points,
if any, among those specifically
identified by Congress in Section 1071,
do financial institutions currently not
collect any information?
5. The Bureau understands that
applications for small business
financing may vary both by financial
institution and by the business credit
product. How do financial institutions
integrate data collection into their
application process?
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a. When are different data collected in
the process (such as at the time of initial
application, during the application
process, or near the end of the process)?
b. What verification procedures are
used?
c. Are certain data not collected or
more difficult to collect if the
application is not originated and instead
is withdrawn, denied, or involves a
counteroffer?
d. Are different data collected for
different types of credit events (such as
renewals, line increases, etc.)?
e. What systems, whether proprietary
or provided by a third party vendor, are
used by financial institutions to collect
and maintain the data?
f. How does data collection differ
according to business credit product?
6. Considering the data points
specifically identified by Congress for
reporting in section 1071:
a. What concerns, if any, do financial
institutions have about the possibility of
misinterpretations or incorrect
conclusions being drawn by regulators
from the collection of the data provided
for in Section 1071 or by the public
from potential release of these data in a
manner protective of privacy interests?
b. Are there limited additional data
points that could be readily reported
and potentially disclosed that would
mitigate these concerns and reduce the
risk of misinterpretation or help reduce
incorrect conclusions?
7. What information about the type of
business (such as NAICS code or other
industry information) of a small
business applicant do financial
institutions currently collect? What
challenges might financial institutions
have in potentially collecting this
information under section 1071?
8. What information about the number
of employees of a small business
applicant do financial institutions
currently collect? What challenges
might financial institutions have in
potentially collecting this information
under section 1071?
9. In section 1071, Congress requires
financial institutions to collect and
report information on whether an
applicant is a women-owned, minorityowned, or small business and the
ethnicity, race, and sex of the principal
owners of the business. Section 1071
provides for limitations on access to
certain information, including an
applicant’s minority-owned or womenowned business status, by underwriters,
where feasible, and provides for limited
access in certain circumstances
determined by the financial institution
with notice to the applicant.
a. What challenges do financial
institutions foresee in complying with
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these requirements with respect to
applications by small businesses,
including any potential challenges in
identifying the principal owners of the
business and reporting demographic
information about them?
b. In what situations, if any, may it
not be feasible to limit underwriter
access to this information?
c. What steps can the Bureau take to
minimize burden on financial
institutions and applicants and facilitate
compliance with the requirements to
identify the principal owners of the
business and report demographic
information about them?
Financial Institutions Engaged in
Business Lending
Section 1071 of the Dodd-Frank Act
requires financial institutions to report
information concerning credit
applications made by women-owned,
minority-owned, and small businesses.
Financial institution is defined in
section 1071 to mean ‘‘any partnership,
company, corporation, association
(incorporated or unincorporated), trust,
estate, cooperative organization, or other
entity that engages in any financial
activity.’’ 13 The Bureau understands
small businesses, including womenowned and minority-owned small
businesses, may secure non-equity
financing from many sources, including,
but not limited to, depository and nondepository financial institutions such as
banks and credit unions, community
development financial institutions,
governmental entities, commercial
finance firms, and alternative online
lenders.
This Bureau seeks comment to
enhance its understanding of the
various financial institutions and other
parties engaged in small business
lending as well as initial feedback from
stakeholders on appropriate
institutional coverage the Bureau may
consider for the business lending data
collection rule.
10. Section 1071 allows the Bureau to
exercise exemption authority to exempt
certain classes of financial institutions
from collecting and reporting pursuant
to a business lending data collection
rule as the Bureau deems necessary or
appropriate to carry out the purposes of
section 1071.
a. Should certain classes of financial
institutions be exempt from a small
business lending data collection rule?
b. Are there data or data sources
available that could inform the Bureau’s
decision to exempt certain classes of
financial institutions (such as the size,
type, or lending characteristics of the
13 15
PO 00000
U.S.C. 1691c-2(h)(1).
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financial institution or types of small
business credit products offered by the
financial institution)?
11. What are the roles of lending
marketplaces, brokers, dealers and other
third parties in the small business
lending application process (such as in
taking an application and in making a
credit decision on an application)?
Access to Credit and Financial Products
Offered to Businesses
The Bureau seeks information on the
various financial products that are
offered to small businesses, including
women-owned and minority-owned
small businesses, as well as initial
feedback from stakeholders on
challenges small businesses may face in
accessing credit and appropriate
transaction and product coverage the
Bureau may consider for a business
lending data collection rule.
Section 1071 requires financial
institutions to report information
concerning credit applications made by
women-owned, minority-owned, and
small businesses. Although section 1071
does not provide a specific definition
for credit, credit is a defined term under
ECOA. ECOA (which section 1071
amended) defines credit as ‘‘the right
granted by a creditor to a debtor to defer
payment of debt or to incur debts and
defer its payment or to purchase
property or services and defer payment
therefor.’’ 14
From its initial outreach and research,
the Bureau understands that small
businesses depend on a number of
different non-equity financing products
to establish, maintain, and grow their
businesses. Although small businesses,
including women-owned and minorityowned small businesses, secure nonequity financing in many forms, the
Bureau understands that term loans,
lines of credit, and credit cards are the
principal all-purpose products used by
small businesses. The Bureau estimates
that these products collectively
comprise about three-fourths of the nonequity financing market, when
excluding supplier financing.15 Through
this RFI, the Bureau seeks initial
feedback on products offered by
financial institutions to small business
applicants and the challenges faced by
small businesses, including women14 15
U.S.C. 1691a(d).
Consumer Financial Protection Bureau,
‘‘Lending to Women-Owned, Minority-Owned and
Small Businesses: A White Paper,’’ May 2017
(figure is based on CFPB research of available data
sources exclusive of business-to-business credit),
available at https://files.consumerfinance.gov/f/
documents/201705_cfpb_Key-Dimensions-SmallBusiness-Lending-Landscape.pdf .
15 See
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owned and minority-owned small
businesses, in accessing credit.
12. What business credit product
types are currently offered to small
businesses by financial institutions as
defined in section 1071, and for which
product types is data collection and
reporting most important for furthering
the purposes of section 1071?
a. In addition to term loans, lines of
credit, and credit card products, are
there other business credit products that
are an important source of financing for
small businesses?
13. How do financial institutions
define an application for business credit
products? How, if at all, does a financial
institution’s definition of an application
vary for different types of products
offered to small business applicants?
a. Under what circumstances are
preapproval, prequalification, and
similar assessments made and what
information is typically collected and
evaluated during such assessments?
14. Under what circumstances (such
as renewal, line increase, etc.) would a
credit review occur on an existing credit
facility?
a. In what circumstances would the
credit review be initiated by the
borrower? In what circumstances is the
credit review initiated by the financial
institution?
b. For each circumstance, what
information is collected as part of the
credit review? How would such a credit
review differ, if at all, from an
application submitted on a new credit
facility?
c. For each circumstance, what are the
types of action taken?
15. What challenges do small
businesses face in accessing credit?
What obstacles do women-owned or and
minority-owned small businesses in
particular face in accessing credit?
Privacy
Section 1071 specifies particular data
points that financial institutions must
compile and maintain, submit annually
to the Bureau, and make available to
members of the public upon request in
a form prescribed by the Bureau.16
Section 1071 also provides the Bureau
with authority to delete or modify data
available to the public to advance a
privacy interest.17 The Bureau is
exploring options which protect
applicant and borrower privacy, as well
as the confidentiality interests of
financial institutions, while also
fulfilling the purpose of section 1071
which, to repeat, is to facilitate
enforcement of fair lending laws and
16 15
17 15
U.S.C. 1691c–2(e)(2)(A)–(G), (f).
U.S.C. 1691c–2(e)(4).
VerDate Sep<11>2014
13:51 May 12, 2017
Jkt 241001
enable communities, governmental
entities, and creditors to identify
business and community development
needs and opportunities of womenowned, minority-owned, and small
businesses. Through this RFI, the
Bureau seeks initial feedback to
understand privacy concerns related to
the potential disclosure of the data
points specifically identified for
reporting under section 1071 by
Congress.
16. What privacy-related concerns for
applicants and confidentiality-related
concerns of financial institutions are
implicated by the statutorily-mandated
data points in section 1071? For
example, are there particular statutorilymandated data points or a combination
of data points that, if released to the
public, may be harmful to applicant
privacy or financial institution
confidentiality? Are there particular
statutorily-mandated data points or a
combination of data points that may
pose a risk of re-identification if
released to the public?
17. What steps can the Bureau take to
mitigate such privacy or confidentialityrelated concerns consistent with the
purposes of section 1071?
Authority: 12 U.S.C. 5511(c).
Dated: May 9, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2017–09732 Filed 5–12–17; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF DEFENSE
Department of the Air Force
Notice is Given as a Reminder of the
U.S. Air Force Scientific Advisory
Board Notice of Meeting
Air Force Scientific Advisory
Board, Department of the Air Force,
DoD.
ACTION: Federal Registrar meeting
notice.
AGENCY:
The United States Air Force
Scientific Advisory Board plans to hold
its Summer Session Board meeting on
June 15th, 2017. Portions of this meeting
will be open to the public.
DATES: Effective Date: The meeting date
is June 15, 2017, from 8:00 a.m. to 4:00
p.m.
SUPPLEMENTARY INFORMATION: Under the
provisions of the Federal Advisory
Committee Act of 1972 (5 U.S.C.,
Appendix, as amended), the
Government in the Sunshine Act of
1976 (5 U.S.C. 552b, as amended), and
SUMMARY:
PO 00000
Frm 00018
Fmt 4703
Sfmt 9990
41 CFR 102–3.150, the Department of
Defense announces the United States
Air Force (USAF) Scientific Advisory
Board (SAB) Summer Board meeting
will take place on 15 June 2017 at the
Beckman Center of The National
Academies of Science and Engineering,
located at 100 Academy Drive, Irvine,
California 92617. The purpose of this
quarterly board meeting is to formally
complete, outbrief, and receive majority
approval for the content and
recommendations contained in the SAB
FY17 SAB studies. The meeting will
occur from 8:00 a.m.–4:00 p.m. on
Thursday, 15 June 2017. The session
that will be open to the general public
will be held from 8:30 a.m. to 9:30 a.m.
on 15 June 2017. In accordance with 5
U.S.C. 552b, as amended, and 41 CFR
102–3.155, a number of sessions of the
Air Force Scientific Advisory Board
Summer Board meeting will be closed to
the general public because they will
discuss classified information and
matters covered by Section 552b of Title
5, United States Code, subsection (c),
subparagraph (1).
Any member of the public that wishes
to attend this meeting or provide input
to the Air Force Scientific Advisory
Board must contact the Scientific
Advisory Board meeting organizer at the
phone number or email address listed in
this announcement at least five working
days prior to the meeting date. Please
ensure that you submit your written
statement in accordance with 41 CFR
102–3.140(c) and section 10(a)(3) of the
Federal Advisory Committee Act.
Statements being submitted in response
to the agenda mentioned in this notice
must be received by the Scientific
Advisory Board meeting organizer at
least five calendar days prior to the
meeting commencement date. The
Scientific Advisory Board meeting
organizer will review all timely
submissions and respond to them prior
to the start of the meeting identified in
this notice. Written statements received
after this date may not be considered by
the Scientific Advisory Board until the
next scheduled meeting.
The
Scientific Advisory Board meeting
organizer, Major Mike Rigoni at
michael.j.rigoni.mil@mail.mil or 703–
695–4297, United States Air Force
Scientific Advisory Board, 1500 West
Perimeter Road, Ste. #3300, Joint Base
Andrews, MD 20762.
FOR FURTHER INFORMATION:
Anh Trinh,
Air Force Federal Register Liaison Officer.
[FR Doc. 2017–09775 Filed 5–12–17; 8:45 am]
BILLING CODE 5001–10–P
E:\FR\FM\15MYN1.SGM
15MYN1
]]>Agencies
[Federal Register Volume 82, Number 92 (Monday, May 15, 2017)]
[Notices]
[Pages 22318-22322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09732]
=======================================================================
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BUREAU OF CONSUMER FINANCIAL PROTECTION
[Docket No.: CFPB-2017-0011]
Request for Information Regarding the Small Business Lending
Market
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice and request for information.
-----------------------------------------------------------------------
SUMMARY: The Consumer Financial Protection Bureau (CFPB or Bureau)
seeks information about the small business lending market. Section 1071
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act) amends the Equal Credit Opportunity Act (ECOA) to require
financial institutions to compile, maintain, and report information
concerning credit applications made by women-owned, minority-owned, and
small businesses. In an effort to inform the Bureau's work on the
business lending data collection rulemaking to implement section 1071,
the Bureau seeks to learn more about the small business financing
market, including understanding more about the products that are
offered to small businesses, including women-owned and minority-owned
small businesses, as well as the financial institutions that offer such
credit. The Bureau also seeks to learn more about the business lending
data that currently is used and may be maintained by financial
institutions in connection with credit applications made by small
businesses, including women-owned and minority-owned small businesses,
and the potential complexity and cost of small business data collection
and reporting. The Bureau is also seeking comment from the public on
privacy concerns related to the disclosure purposes of section 1071.
DATES: Comments must be received on or before July 14, 2017.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2017-0011, by any of the following
methods:
Electronic: Go to https://www.regulations.gov. Follow the
instructions for submitting comments.
Email: FederalRegisterComments@cfpb.gov. Include Docket
No. CFPB-2017-0011 in the subject line of the email.
Mail: Monica Jackson, Office of the Executive Secretary,
Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC
20552.
Hand Delivery/Courier: Monica Jackson, Office of the
Executive Secretary, Consumer Financial Protection Bureau, 1275 First
Street NE., Washington, DC 20002.
Instructions: Please note the number associated with any question
to which you are responding at the top of each response (you are not
required to answer all questions to receive consideration of your
comments). The Bureau encourages the early submission of comments. All
submissions must include the document title and docket number. Because
paper mail in the Washington, DC area and at the Bureau is subject to
delay, commenters are encouraged to submit comments electronically. In
general, all comments received will be posted without change to https://www.regulations.gov. In addition, comments will be available for public
inspection and copying at 1275 First Street NE., Washington, DC 20002,
on official business days between the hours of 10 a.m. and 5 p.m.
Eastern Time. You can make an appointment to inspect the documents by
telephoning 202-435-7275.
All submissions, including attachments and other supporting
materials, will become part of the public record and subject to public
disclosure. Sensitive personal information, such as account numbers or
Social Security numbers, or names of other individuals, should not be
included. Submissions will not be edited to remove any identifying or
contact information.
FOR FURTHER INFORMATION CONTACT: For general inquiries, submission
process questions or any additional information, please contact Monica
Jackson, Office of the Executive Secretary, at 202-435-7275.
SUPPLEMENTARY INFORMATION:
The Bureau is seeking comment through this Request for Information
(RFI) to better understand the small business lending market in order
to prioritize and streamline work to implement section 1071. The
feedback obtained in response to this RFI will help the Bureau fulfill
the statutory purpose of section 1071 in a manner that is efficient and
minimizes burden on industry.
The Bureau encourages comments from all interested members of the
public, including:
Individual consumers;
Individual businesses;
Consumer civil rights and privacy advocates;
Small business advocates;
Business development and community development
organizations;
Lenders, including depository and non-depository
institutions;
Business trade associations;
[[Page 22319]]
Data software vendors and developers who may provide
services to lenders for regulatory compliance and data submission;
Consultants, attorneys, or other professionals who advise
market participants on these issues;
Federal, State, and municipal regulators;
State, local, and tribal government entities;
Researchers or members of academia; and
Any other interested parties.
The Bureau is interested in all input from commenters, including
knowledge of standard practices, understanding of the market as a
whole, and views on the questions included in this RFI.
Part A: Congressional Mandate To Enact Section 1071
Section 1071 of the Dodd-Frank Act (section 1071) amends ECOA to
require financial institutions to report information concerning credit
applications made by women-owned, minority-owned, and small businesses.
The purpose of this data collection, as stated by Congress in section
1071, is to ``facilitate enforcement of fair lending laws'' and to
``enable communities, governmental entities, and creditors to identify
business and community development needs and opportunities of women-
owned, minority-owned, and small businesses.'' \1\ In order to achieve
this statutory purpose, the Bureau believes the section 1071 data
should cover an extensive share of the market and contain enough
flexibility to analyze different market segments. However, there are
costs associated with any data collection which have to be weighed
against the benefits. Please consider this context in responding to
this RFI.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 1691c-2(a).
---------------------------------------------------------------------------
Small businesses, including those owned by women and minorities,
are critical engines for economic growth, and access to credit is a
crucial component of their success. The Bureau believes that data
collected under the business lending data collection rule as mandated
by section 1071 would fill existing gaps in the general understanding
of the small business lending environment. Further, data would be
helpful in fulfilling Congress's purposes in enacting section 1071 by
identifying potential fair lending concerns regarding small businesses,
including women-owned and minority-owned small businesses, as well as
the needs and opportunities for both business and community
development. At the same time, the Bureau recognizes that certain
financial institutions may not be collecting and reporting information
regarding small business lending in connection with other regulatory
requirements and that therefore a new data collection requirement could
pose implementation and operational challenges.
The Bureau is in its early stages with respect to implementing
section 1071, and is currently focused on outreach and research to
further develop its understanding of the small business lending market,
including the institutions, credit products, recording systems,
underwriting approaches, distribution channels, and types of applicants
in that market. In furtherance of that outreach and research, the
Bureau is issuing this RFI. The Bureau is interested in exploring
potential ways to implement section 1071 in a balanced manner with a
goal of providing timely data with the highest potential for achieving
the statutory objectives, while minimizing burden to both industry and
the Bureau.
Part B: Questions Related to the Small Business Lending Market
The Bureau is seeking comment to enhance our understanding of the
small business lending market in order to prioritize and guide research
and policy development work for implementation of section 1071.
The Bureau recognizes that some commenters may feel that answering
the questions below raises concerns about revealing proprietary
information. We encourage commenters to share as much detail as
possible in this public forum. We also welcome comments from
representatives, such as attorneys, consultants, or trade associations,
which need not identify their clients or members by name. The Bureau
also welcomes any relevant empirical research or studies on these
topics.
The questions below are separated into five categories: (1) Small
Business Definition, (2) Data Points, (3) Financial Institutions
Engaged in Business Lending, (4) Access to Credit and Financial
Products Offered to Businesses, and (5) Privacy.
Small Business Definition
Section 1071 defines ``small business'' as having ``the same
meaning as the term `small business concern' in section 3 of the Small
Business Act (15 U.S.C. 632).'' \2\ This section of the Small Business
Act sets forth a multi-part definition of ``small business concern''
that includes a provision authorizing the Small Business Administration
(SBA) to establish detailed size standards that meet certain criteria
set forth within the statute.\3\ The most commonly used size standards
developed by the SBA are industry-specific size standards organized by
the six-digit North American Industry Classification System (NAICS-
specific size standards).\4\ These NAICS-specific size standards are
primarily used by the SBA and other Federal agencies to determine
eligibility for Federal contract and loan assistance programs.\5\
---------------------------------------------------------------------------
\2\ 15 U.S.C. 1691c-2(h)(2).
\3\ 15 U.S.C. 632(a)(2).
\4\ 13 CFR 121.201 (NAICS-specific size standards promulgated by
the SBA).
\5\ See 13 CFR 121.101(a) (``SBA's size standards define whether
a business entity is small and, thus, eligible for Government
programs and preferences reserved for `small business' concerns.'')
---------------------------------------------------------------------------
Section 632 also permits the SBA to approve size standards
developed by other Federal agencies that meet certain requirements.\6\
As an alternative to the NAICS-specific size standards, the Bureau is
exploring developing an alternative definition of small business that
meets the criteria outlined in section 632 of the Small Business Act
and is tailored to the needs of section 1071, a business lending data
collection rule. Specifically, the Bureau is exploring size standard
approaches that potentially may not require a determination of a six-
digit NAICS code for each applicant while remaining consistent with the
SBA's policy and regulatory requirements and that are aligned with the
common practices of financial institutions extending credit to small
businesses.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 632(a)(2)(C).
---------------------------------------------------------------------------
Under nearly any definition of ``small business,'' a substantial
percentage of women-owned and minority-owned businesses would be
covered. For example, a definition of small businesses as businesses
with annual revenue of $1 million or less \7\ covers approximately 95%
of all firms, over 97% of all minority-owned firms, and over 98% of all
women-owned firms.\8\ Bureau outreach to date with industry reveals
other definitions used by financial institutions as to what constitutes
a ``small business'' for internal purposes, including for focusing
marketing resources,
[[Page 22320]]
establishing appropriate products to support the small business
segment, and establishing risk management practices. Common factors
that financial institutions use for defining a business as small
include annual revenue, industry, loan size, aggregate credit exposure,
or some combination of these factors. The threshold amounts that
financial institutions apply to each of these factors also vary
considerably among financial institutions.
---------------------------------------------------------------------------
\7\ Under the Community Reinvestment Act, certain financial
institutions report information on small business loans extended to
businesses with annual revenue of $1 million or less. See, e.g., 12
CFR 228.42.
\8\ U.S. Census Bureau, Statistics for All U.S. Firms by
Industry, Gender, and Receipts Size of Firm for the U.S. and States:
2012 More Information 2012 Survey of Business Owners, American Fact
Finder (last visited April 12, 2017), available at https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=SBO_2012_00CSA05&prodType=table.
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Through this RFI, the Bureau hopes to learn more about the various
definitions of a small business that are currently utilized by lenders.
1. What potential challenges and burdens would financial
institutions or applicants encounter if a business lending data
collection rule defined a ``small business'' applicant using the SBA's
NAICS-specific size regulations?
2. What definitions of ``small business'' do financial institutions
currently use internally or for external reporting purposes?
a. What factors are used to define a ``small business'' (such as
revenue of the business applicant)? If more than one factor is used,
are those factors considered individually or in combination?
b. What minimum or maximum thresholds are used to define a ``small
business''?
c. Are certain types of small businesses excluded or treated
differently under the definitions?
d. Do the definitions take into account entities that are related
to the small business applicant (such as parents, subsidiaries,
affiliates, etc.)?
Data Points
Section 1071 specifies particular data points that financial
institutions must compile and maintain, submit annually to the Bureau,
and make available to members of the public upon request unless the
Bureau determines to permit the deletion or modification of certain
data to advance a privacy interest.\9\ These include:
---------------------------------------------------------------------------
\9\ 15 U.S.C. 1691c-2(e)(2)(A)-(G), (e)(4), (f)(1), (f)(2)(A)-
(B). The statute also provides that the data shall annually be made
available to the public generally by the Bureau, in such form and in
such manner as is determined by the Bureau, by regulation. Id.
1691c-2(f)(2)(C).
---------------------------------------------------------------------------
Application number;
application date;
type and purpose of the financing;
amount applied for;
amount approved;
type of action taken and action taken date;
census tract of the principal place of business;
gross annual revenue in the last fiscal year of the
applicant preceding the date of the application; and
information about the race, sex, and ethnicity of the
business principal owners.\10\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 1691c-2(e)(2)(A)-(G). With some exceptions,
section 1002.5(b) of Regulation B, which implements the ECOA,
prohibits a creditor from inquiring about the race, color, religion,
national origin, or sex of an applicant or any other person in
connection with a credit transaction. Section 1002.5(a)(2) provides
an exception to that prohibition for information required by a
regulation, order, or agreement issued by or entered into with a
court or an enforcement agency to monitor or enforce compliance with
ECOA, Regulation B, or other Federal or State statutes or
regulations. Section 1002.5(a)(3) provides another exception to that
prohibition for information to determine eligibility for a special
purpose credit program under 1002.8.
---------------------------------------------------------------------------
Section 1071 also gives the Bureau authority to require ``any
additional data that the Bureau determines would aid in fulfilling the
purposes of [1071]''.\11\ The purpose of section 1071 provided in the
statute is, as previously noted: (1) To facilitate enforcement of fair
lending laws; and (2) to enable communities, governmental entities, and
creditors to identify business and community development needs and
opportunities of women-owned, minority-owned, and small businesses.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 1691c-2(e)(2)(H).
\12\ 15 U.S.C. 1691c-2(a).
---------------------------------------------------------------------------
As part of its research and policy development work, the Bureau
will explore how to best implement the data point reporting
requirements for the business lending data collection rulemaking to
serve the purposes of section 1071 while minimizing burden. Through
this RFI, the Bureau seeks information on existing business lending
data collection and reporting standards, how various data points are
used by the business financing industry, how reporting particular data
points could serve the purposes of section 1071, and other issues
related to data points.
As part of a business lending data collection rulemaking, the
Bureau plans to explore how to best implement the statutorily-mandated
data points. The Bureau believes the reporting and potential disclosure
of these data would constitute a major advancement in information on
lending to small businesses, including to women-owned and minority-
owned small businesses. In addition, the Bureau will consider whether
supplementing the statutorily-mandated data points with a limited
number of discretionary data points would serve the purposes of section
1071, improve the quality of the data for all stakeholders, and reduce
the possibility of misinterpretations or incorrect conclusions that
might arise from the collection or release of more limited data. The
Bureau believes that responses to the RFI questions will provide
helpful information for this purpose and aid the Bureau in determining
whether to supplement, in a limited fashion, the statutorily-mandated
data points.
3. What data standards regarding information on small business
financing are financial institutions currently subject to or using?
Data standards are rules by which data is described and recorded using
standardized formats and meanings for purposes such as sharing,
exchanging and analyzing data. Examples could include governmental
reporting or recordkeeping requirements, as well as standards
associated with credit bureaus, data repositories, trade associations,
accounting standards, or securitization or guarantee programs.
a. What information is being collected, reported, or disclosed
using these data standards?
b. Are these data standards applicable at the loan level, on an
aggregate basis, or some combination of the two?
4. What information concerning the data points specifically
identified for reporting under section 1071 by Congress do financial
institutions collect and maintain in the ordinary course of business
concerning their small business lending?
a. What sources of information do financial institutions rely on in
obtaining this data, including, for example, applicant self-reporting,
specific documents used by financial institutions to obtain this data,
or third party sources?
b. What technological or other challenges do financial institutions
foresee in collecting and reporting this data (such as the manual
compilation of information, the lack of an electronic system for
maintaining this information, the potential for this information to be
found in multiple systems within a financial institution, etc.)? What
steps can the Bureau take within a business lending data collection
rulemaking to minimize the challenges?
c. With respect to which data points, if any, among those
specifically identified by Congress in Section 1071, do financial
institutions currently not collect any information?
5. The Bureau understands that applications for small business
financing may vary both by financial institution and by the business
credit product. How do financial institutions integrate data collection
into their application process?
[[Page 22321]]
a. When are different data collected in the process (such as at the
time of initial application, during the application process, or near
the end of the process)?
b. What verification procedures are used?
c. Are certain data not collected or more difficult to collect if
the application is not originated and instead is withdrawn, denied, or
involves a counteroffer?
d. Are different data collected for different types of credit
events (such as renewals, line increases, etc.)?
e. What systems, whether proprietary or provided by a third party
vendor, are used by financial institutions to collect and maintain the
data?
f. How does data collection differ according to business credit
product?
6. Considering the data points specifically identified by Congress
for reporting in section 1071:
a. What concerns, if any, do financial institutions have about the
possibility of misinterpretations or incorrect conclusions being drawn
by regulators from the collection of the data provided for in Section
1071 or by the public from potential release of these data in a manner
protective of privacy interests?
b. Are there limited additional data points that could be readily
reported and potentially disclosed that would mitigate these concerns
and reduce the risk of misinterpretation or help reduce incorrect
conclusions?
7. What information about the type of business (such as NAICS code
or other industry information) of a small business applicant do
financial institutions currently collect? What challenges might
financial institutions have in potentially collecting this information
under section 1071?
8. What information about the number of employees of a small
business applicant do financial institutions currently collect? What
challenges might financial institutions have in potentially collecting
this information under section 1071?
9. In section 1071, Congress requires financial institutions to
collect and report information on whether an applicant is a women-
owned, minority-owned, or small business and the ethnicity, race, and
sex of the principal owners of the business. Section 1071 provides for
limitations on access to certain information, including an applicant's
minority-owned or women-owned business status, by underwriters, where
feasible, and provides for limited access in certain circumstances
determined by the financial institution with notice to the applicant.
a. What challenges do financial institutions foresee in complying
with these requirements with respect to applications by small
businesses, including any potential challenges in identifying the
principal owners of the business and reporting demographic information
about them?
b. In what situations, if any, may it not be feasible to limit
underwriter access to this information?
c. What steps can the Bureau take to minimize burden on financial
institutions and applicants and facilitate compliance with the
requirements to identify the principal owners of the business and
report demographic information about them?
Financial Institutions Engaged in Business Lending
Section 1071 of the Dodd-Frank Act requires financial institutions
to report information concerning credit applications made by women-
owned, minority-owned, and small businesses. Financial institution is
defined in section 1071 to mean ``any partnership, company,
corporation, association (incorporated or unincorporated), trust,
estate, cooperative organization, or other entity that engages in any
financial activity.'' \13\ The Bureau understands small businesses,
including women-owned and minority-owned small businesses, may secure
non-equity financing from many sources, including, but not limited to,
depository and non-depository financial institutions such as banks and
credit unions, community development financial institutions,
governmental entities, commercial finance firms, and alternative online
lenders.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 1691c-2(h)(1).
---------------------------------------------------------------------------
This Bureau seeks comment to enhance its understanding of the
various financial institutions and other parties engaged in small
business lending as well as initial feedback from stakeholders on
appropriate institutional coverage the Bureau may consider for the
business lending data collection rule.
10. Section 1071 allows the Bureau to exercise exemption authority
to exempt certain classes of financial institutions from collecting and
reporting pursuant to a business lending data collection rule as the
Bureau deems necessary or appropriate to carry out the purposes of
section 1071.
a. Should certain classes of financial institutions be exempt from
a small business lending data collection rule?
b. Are there data or data sources available that could inform the
Bureau's decision to exempt certain classes of financial institutions
(such as the size, type, or lending characteristics of the financial
institution or types of small business credit products offered by the
financial institution)?
11. What are the roles of lending marketplaces, brokers, dealers
and other third parties in the small business lending application
process (such as in taking an application and in making a credit
decision on an application)?
Access to Credit and Financial Products Offered to Businesses
The Bureau seeks information on the various financial products that
are offered to small businesses, including women-owned and minority-
owned small businesses, as well as initial feedback from stakeholders
on challenges small businesses may face in accessing credit and
appropriate transaction and product coverage the Bureau may consider
for a business lending data collection rule.
Section 1071 requires financial institutions to report information
concerning credit applications made by women-owned, minority-owned, and
small businesses. Although section 1071 does not provide a specific
definition for credit, credit is a defined term under ECOA. ECOA (which
section 1071 amended) defines credit as ``the right granted by a
creditor to a debtor to defer payment of debt or to incur debts and
defer its payment or to purchase property or services and defer payment
therefor.'' \14\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 1691a(d).
---------------------------------------------------------------------------
From its initial outreach and research, the Bureau understands that
small businesses depend on a number of different non-equity financing
products to establish, maintain, and grow their businesses. Although
small businesses, including women-owned and minority-owned small
businesses, secure non-equity financing in many forms, the Bureau
understands that term loans, lines of credit, and credit cards are the
principal all-purpose products used by small businesses. The Bureau
estimates that these products collectively comprise about three-fourths
of the non-equity financing market, when excluding supplier
financing.\15\ Through this RFI, the Bureau seeks initial feedback on
products offered by financial institutions to small business applicants
and the challenges faced by small businesses, including women-
[[Page 22322]]
owned and minority-owned small businesses, in accessing credit.
---------------------------------------------------------------------------
\15\ See Consumer Financial Protection Bureau, ``Lending to
Women-Owned, Minority-Owned and Small Businesses: A White Paper,''
May 2017 (figure is based on CFPB research of available data sources
exclusive of business-to-business credit), available at https://files.consumerfinance.gov/f/documents/201705_cfpb_Key-Dimensions-Small-Business-Lending-Landscape.pdf .
---------------------------------------------------------------------------
12. What business credit product types are currently offered to
small businesses by financial institutions as defined in section 1071,
and for which product types is data collection and reporting most
important for furthering the purposes of section 1071?
a. In addition to term loans, lines of credit, and credit card
products, are there other business credit products that are an
important source of financing for small businesses?
13. How do financial institutions define an application for
business credit products? How, if at all, does a financial
institution's definition of an application vary for different types of
products offered to small business applicants?
a. Under what circumstances are preapproval, prequalification, and
similar assessments made and what information is typically collected
and evaluated during such assessments?
14. Under what circumstances (such as renewal, line increase, etc.)
would a credit review occur on an existing credit facility?
a. In what circumstances would the credit review be initiated by
the borrower? In what circumstances is the credit review initiated by
the financial institution?
b. For each circumstance, what information is collected as part of
the credit review? How would such a credit review differ, if at all,
from an application submitted on a new credit facility?
c. For each circumstance, what are the types of action taken?
15. What challenges do small businesses face in accessing credit?
What obstacles do women-owned or and minority-owned small businesses in
particular face in accessing credit?
Privacy
Section 1071 specifies particular data points that financial
institutions must compile and maintain, submit annually to the Bureau,
and make available to members of the public upon request in a form
prescribed by the Bureau.\16\ Section 1071 also provides the Bureau
with authority to delete or modify data available to the public to
advance a privacy interest.\17\ The Bureau is exploring options which
protect applicant and borrower privacy, as well as the confidentiality
interests of financial institutions, while also fulfilling the purpose
of section 1071 which, to repeat, is to facilitate enforcement of fair
lending laws and enable communities, governmental entities, and
creditors to identify business and community development needs and
opportunities of women-owned, minority-owned, and small businesses.
Through this RFI, the Bureau seeks initial feedback to understand
privacy concerns related to the potential disclosure of the data points
specifically identified for reporting under section 1071 by Congress.
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\16\ 15 U.S.C. 1691c-2(e)(2)(A)-(G), (f).
\17\ 15 U.S.C. 1691c-2(e)(4).
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16. What privacy-related concerns for applicants and
confidentiality-related concerns of financial institutions are
implicated by the statutorily-mandated data points in section 1071? For
example, are there particular statutorily-mandated data points or a
combination of data points that, if released to the public, may be
harmful to applicant privacy or financial institution confidentiality?
Are there particular statutorily-mandated data points or a combination
of data points that may pose a risk of re-identification if released to
the public?
17. What steps can the Bureau take to mitigate such privacy or
confidentiality-related concerns consistent with the purposes of
section 1071?
Authority: 12 U.S.C. 5511(c).
Dated: May 9, 2017.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-09732 Filed 5-12-17; 8:45 am]
BILLING CODE 4810-AM-P
