“This is purportedly a way to reduce burden. However, because the data points covered by the rule are already collected by lenders, the burden associated with the rule is minimal,” according to the National Community Reinvestment Coalition letter.

“This is purportedly a way to reduce burden. However, because the data points covered by the rule are already collected by lenders, the burden associated with the rule is minimal,” according to the National Community Reinvestment Coalition letter.

“We are concerned about this trend throughout the financial services industry,” said Stella Adams, Chief of Equity and Inclusion at National Community Reinvestment Coalition, an organization that works to promote diversity in banking, housing and business. “Many minority borrowers are looking for trusted financial advisors that reflect the diversity of the marketplace. A recent report from the GAO shows that the industry is underperforming based upon the talent available in the workforce.”

Under the new law, smaller banks with fewer than 500 closed-end loans or open-end credit lines do not have to report the additional data fields required by Dodd-Frank. The banks still collect the data, according to a letter sent to Congress by the National Community Reinvestment Coalition, but are not required to report it.

In my neighborhood in the Philadelphia suburbs, there are financial institutions everywhere, of all kinds—global conglomerates, credit unions, community banks, and much else. Combining census data from 2010 and this useful tool from the National Community Reinvestment Coalition, my ZIP code has one physical bank branch for roughly every 1,500 people.