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 In May 2023, the Bureau published a final rule implementing section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rule, as modified by subsequent extensions of compliance dates, became effective on August 29, 2023. The Bureau issued a proposed rule to reconsider certain aspects of the May 2023 final rule. The comment period for that proposed rule closed on December 15, 2025. Further information on the procedural history of this rule is available under related RIN 3170-AA09, which pertains to the final rule the Bureau issued in May 2023. 

Statement of Need:

The amendments as proposed would streamline the rule, reduce complexity for lenders, and improve data quality, advancing the purposes of section 1071 and complying with recent executive directives.

Summary of the Legal Basis:

15 U.S.C. 1691c-2.

Alternatives:

There are no appropriate alternatives as amendments to the current regulatory text are necessary.

Anticipated Costs and Benefits:

The Bureau estimates one-time costs savings from these amendments as proposed across all impacted financial institutions as well as total annual ongoing cost savings. Small businesses would primarily benefit from these amendments in the form of pass-through cost savings from financial institutions. Under the existing rule, financial institutions could benefit from transparency resulting from the collection of data; under these amendments as proposed, the reduction in the amount of data collected could result in the loss of these benefits to financial institutions. Some covered financial institutions also would incur one-time adjustment costs, for such entities that may have started implementing the existing rule. Further, to the extent that small businesses may derive fair lending and community development benefits from the data provided by the existing rule, the amendments as proposed would impose some unquantifiable cost on small businesses.

Risks:

To be determined.