Unknown Sponsor Bank

On October 8, 2021, the CFPB published a proposed rulemaking in the Federal Register regarding small business lending data collection under the Equal Credit Opportunity Act (ECOA), specifically amending Regulation B. The rule would require financial institutions, including banks and their fintech lending partners, to collect and report data on small business credit applications, including demographic information. This rulemaking has significant implications for BaaS sponsor banks that facilitate small business lending through fintech partnerships, as compliance obligations would extend to the originating bank of record. The rule is part of a broader CFPB agenda to increase transparency and fair lending oversight in areas where fintechs increasingly operate through bank charters.

Verified from source: The CFPB published a proposed rule (86 FR 56356) on small business lending data collection under the Equal Credit Opportunity Act (Regulation B), Docket No. CFPB-2021-0015, amending 12 CFR 1002. This is a proposed rulemaking, not a guidance or enforcement action against a specific bank.