The Consumer Financial Protection Bureau (CFPB) this week released proposals regarding SME lenders that could be exempted from data collection requirements under the Dodd-Frank Act.

Why should we care?
The requirements ensure institutions provide demographic data to assess whether borrowers face lending discrimination. The CFPB is considering a series of exemption thresholds, including companies who deliver fewer than 25 loans or $2.5M; less than 50 loans or $5M; or less than 100 loans or $10M. The regulator is proposing exemptions because of the high cost of compliance for the smallest institutions. Teddy Flo, general counsel at Zest AI, told TheFR implementing this small change could make a big difference in measuring our progress toward helping underserved borrowers. Meanwhile, consumer advocates expressed caution. “The CFPB must ensure consistent reporting from all lenders and limit the number of exemptions, including eliminating exemptions based solely on the assets held by the institution, The National Community Reinvestment Coalition said in a statement.