Off the Record, On the Issues with John

DakCU advocates for small credit unions on the CFPB’s 1071 rule and Federal Reserve guidance as pennies phase out.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Draft DakCU Comment Letter on CFPB’s 1071 Small-Business Rule
The Dakota Credit Union Association (DakCU) has prepared a draft comment letter to the Consumer Financial Protection Bureau (CFPB) about its proposed changes to the Section 1071 small-business lending rule (Regulation B). This rule deals with how lenders collect and report data on loans to small businesses.

In our draft, we:

• Support raising the loan-volume threshold to focus on large lenders, not small rural credit unions.
• Request additional relief for small institutions, via a higher threshold or asset-based exemption.
• Advocate removing non-mandatory data points to reduce unnecessary costs.
• Recommend collecting only aggregate race and ethnicity data to protect privacy in small communities.
• Support eliminating LGBTQIA+ questions and simplifying the sex field to maintain trust.
• Ask for more time, clear guidance, and safe harbors to prevent penalizing good-faith efforts.

This draft will be submitted to the CFPB on the official comment due date of December 15, 2025. For more information, please refer to the Federal Reserve’s resources on Section 1071, Small Business Lending Under the Equal Credit Opportunity Act (Regulation B).

If you would like to add examples, concerns, or suggested changes before we file, please email me.

Federal Reserve Asked to Clarify Rules as Pennies Phase Out
DakCU has joined more than two dozen state and regional credit union leagues in signing a joint letter to Federal Reserve Governor Christopher Waller, urging the Board to provide guidance and coordinate with other regulators on emerging penny circulation issues. The letter highlights growing challenges from the end of penny production, shrinking inventories at Federal Reserve coin depots, and the lack of a clear national rounding standard, all of which create uncertainty for credit unions and their members.

The leagues ask the Federal Reserve to keep coin depots open where possible, give regular public updates on penny inventory, and work with the NCUA and other regulators to clarify acceptable rounding practices, tax treatment, and disclosure expectations when exact change is not available. The letter also encourages the Federal Reserve to support congressional action such as the Common Cents Act to establish a uniform national framework for rounding cash transactions, helping credit unions maintain consistent, consumer-friendly practices as pennies gradually leave circulation.
 
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For more information or to share your perspectives, feel free to contact me.