NCRC submits comment to the CFPB on Section 1071 Proposed Rule

The National Community Reinvestment Coalition (NCRC) submitted this week a detailed comment to the Consumer Financial Protection Bureau (CFPB) for its proposed rule on reporting and disseminating small business loan data required by Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Section 1071 requires the CFPB to enhance publicly available small business data to include the race and gender of small businesses applying for credit. As users of small business loan data, NCRC and our members believe that data effectuates the purpose of Section 1071 by improving the efficiency and equity of lending markets. Data analysis identifies credit needs and gaps for different types of small businesses and therefore directs attention to further understanding and remedying these gaps. 

The CFPB’s proposed rule will effectively facilitate community needs and fair lending analysis by requiring comprehensive and robust data. 

However, as with any proposed rule, there are areas that could be improved, including the CFPB’s decision to refrain from collecting a small business applicant’s credit score and the disclosure of the Annual Percentage Rate of loans.

To read NCRC’s full comment, visit: https://ncrc.org/ncrc-comment-on-proposed-section-1071-small-business-lending-data-collection/

For more about Section 1071, visit: https://ncrc.org/section1071/

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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