CFPB Issues Revised Section 1071 Rule

Posted by Erin Hall on April 30, 2026

The CFPB finalized its revised Section 1071 rule Thursday, largely as proposed. The changes reflect many GoWest recommendations, reducing compliance burden while supporting small business lending.

Key changes in the final rule include:

• Raises “covered financial institution” coverage to 1,000 covered transactions (from 100).
• Lowers the “small business” revenue threshold to $1 million or less (from $5 million).
• Removes discretionary data points from the 2023 rule to streamline collection and reduce operational burden.
• Sets a single compliance date—Jan. 1, 2028—for institutions that originated at least 1,000 covered small-business transactions in both 2026 and 2027.
• Eliminates non-statutory requirements that prescribed when and how lenders must collect demographic and ownership data.

The CFPB proposed these revisions late last year after its 2023 final rule and related litigation delayed some compliance deadlines. GoWest commented on the proposal, and many recommendations were adopted. We will build on this advocacy with the CFPB during the Spring Hike the Hill.

Next steps: Credit unions should review the revised thresholds and data requirements, determine whether 2026–2027 activity meets coverage, and begin implementation planning ahead of the Jan. 1, 2028 compliance date. GoWest will continue engaging the CFPB and sharing compliance resources.

Posted in Advocacy on the Move, Regulatory Advocacy.