Regulation B - SS - 2024 - FINAL

Federal Trade Commission
Supporting Statement for Information Collection Provisions of Regulation B
(Equal Credit Opportunity Act)
12 C.F.R. Part 202 (Federal Reserve Board); 12 C.F.R. Part 1002 (CFPB)
OMB Control Number: 3084-0087
The Federal Trade Commission (“FTC” or “Commission”) requests approval for a threeyear extension of an existing clearance relating to the information collection requirements under
Regulation B (Equal Credit Opportunity Act), 12 C.F.R. Part 202, 12 C.F.R. Part 1002. In 2023,
the CFPB amended Regulation B, to create Subparts A and B, in implementing amendments
mandated by Section 1071 of the Dodd Frank Act, 12 U.S.C. 1691c-2, pertaining to small business
lending, including for small businesses owned by women or minorities. As a result, Regulation B,
Subpart A, now contains the prior Regulation B requirements; Regulation B, Subpart B, contains
the new small business lending requirements. There are no other changes in the recordkeeping or
disclosure requirements. The annual burden hours and labor costs are shown below.
1.

Necessity for Collecting the Information

The Equal Credit Opportunity Act (“ECOA”), 15 U.S.C. 1691 et seq., was enacted to
ensure that credit is made available to all creditworthy applicants without discrimination on the
basis of sex, marital status, race, color, religion, national origin, or age. The ECOA also prohibits
discrimination because an applicant’s income is derived from a public assistance program, or
because the applicant has in good faith exercised any right under the Consumer Credit Protection
Act.
The ECOA applies to anyone who regularly extends or arranges for the extension of credit
and to an assignee who participates in the decision to extend credit, including mortgage lenders,
mortgage brokers, finance companies and others.1 Subject to the discussion below, the Federal
Trade Commission (“FTC” or “Commission”) enforces the ECOA as to all creditors except those
(such as federally chartered or insured depository institutions) that are subject to the regulatory
authority of another federal agency. The ECOA also contains a private right of action with a fiveyear statute of limitations for aggrieved applicants.
The Board of Governors of the Federal Reserve System (“Federal Reserve Board” or
“Board”) promulgated the original Regulation B (12 C.F.R. Part 202) to implement the ECOA, as
required by the statute. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act
(“Dodd-Frank Act”), Pub. L. 111-203, 124 Stat. 1376 (2010), however, almost all rulemaking
authority for the ECOA transferred from the Board to the Consumer Financial Protection Bureau
(“CFPB”) on July 21, 2011 (“transfer date”). Although the Dodd-Frank Act transferred most
rulemaking authority under ECOA to the CFPB, the Federal Reserve Board retained rulemaking
1

The law applies to a person who, in the normal course of business, regularly participates in a credit decision,
including setting the terms of credit. See 12 C.F.R. 202.2(l); 12 C.F.R. 1002.2(l). It includes all persons participating
in the credit decision. It may include an assignee or potential purchaser of the obligation who influences the credit
decision by indicating whether or not it will purchase the obligation if the transaction is consummated. Section
202.2(l)-1 of the Federal Reserve Board Official Staff Commentary; Section 1002.2(l)-1 of the CFPB Official Staff
Commentary.

authority for certain motor vehicle dealers.2 The CFPB’s regulations for entities under its
jurisdiction for Regulation B appear in 12 C.F.R. Part 1002.3
As a result of the Dodd-Frank Act, the FTC and the CFPB generally share the authority to
enforce Regulation B for entities for which the FTC had enforcement authority before the Act,
except for certain motor vehicle dealers4 and certain state-chartered credit unions.5 The FTC
generally has sole authority to enforce Regulation B regarding motor vehicle dealers
predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of
motor vehicles, or both.6
In 2010, Congress enacted the Dodd-Frank Act. Section 1071 of that Act amended ECOA
to require the financial institution collect and report to the CFPB certain data regarding
applications for credit for women-owned, minority-owned, and small businesses. Section 1071’s
statutory purposes are to facilitate enforcement of fair lending laws and to enable communities,
government entities and creditors to identify business and community development needs and
opportunities of women-owned, minority-owned and small businesses. Section 1071 specifies
various data points that financial institutions must collect and report, and provides authority for the
CFPB to require additional data that it determines would aid in fulfilling those statutory purposes.
In 2023, the CFPB amended Regulation B, to create Subparts A and B, in implementing
amendments mandated by Section 1071 of the Dodd Frank Act, 12 U.S.C. 1691c-2, pertaining to
small business lending, including for small businesses owned by women or minorities.7 As a
2

Generally, these are dealers “predominantly engaged in the sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.” See Dodd-Frank Act, § 1029(a), (c), 12 U.S.C. 5519(a), (c).
3

Because both the Board and the CFPB have certain rulemaking authority under Regulation B – as discussed further
below – citations to both aspects of the regulation are included in this document. Hence, 12 C.F.R. Part 202 refers to
the Board-issued Regulation B; 12 C.F.R. Part 1002 refers to the CFPB-issued Regulation B. Generally, these two
aspects of Regulation B are virtually identical, other than occasional minor technical differences, and citations.
However, as further discussed below in footnotes 7 and 10, the Board has not at present amended its Regulation B to
implement amendments made by Section 1071 of the Dodd Frank Act amending ECOA regarding small business
lending, and that relate to recent such changes made by the CFPB to its Regulation B.
4

See Dodd-Frank Act, § 1029(a), as limited by subsection (b) as to motor vehicle dealers. Subsection (b) does not
preclude CFPB regulatory oversight regarding, among others, businesses that extend retail credit or retail leases for
motor vehicles in which the credit or lease offered is provided directly from those businesses to consumers, where the
contract is not routinely assigned to unaffiliated third parties. .
5

The FTC’s enforcement authority includes state-chartered credit unions. In varying ways, other federal agencies
also have enforcement authority over state-chartered credit unions. For example, for large credit unions (exceeding
$10 billion in assets), the CFPB has certain authority. The National Credit Union Administration also has certain
authority for state-chartered federally insured credit unions, and it additionally provides insurance for certain statechartered credit unions through the National Credit Union Share Insurance Fund and examines state-chartered credit
unions for various purposes. See generally Dodd-Frank Act, §§ 1061, 1025, 1026.
6

See Dodd-Frank Act, § 1029(a), (c). 12 U.S.C. 5519(a), (c).

7

See CFPB, Final Rule, Small Business Lending Under the Equal Credit Opportunity Act (Regulation B) (CFPB
Rule), 88 Fed. Reg. 35150 (May 31, 2023), available at https://www.govinfo.gov/content/pkg/FR-2023-0531/pdf/2023-07230.pdf. The CFPB generally refers to these requirements as those pertaining to “small business

2

result, Regulation B, Subpart A, now contains the prior Regulation B requirements; Regulation B,
Subpart B, contains the new small business lending requirements encompass the changes pursuant
to and related to Section 1071 of the Dodd-Frank Act.8
Recordkeeping
Subpart A
Sections 202.12(b)/1002.12(b) of Regulation B require creditors to retain records relating
to consumer credit applications for 25 months from the date that the applicant is notified of the
action taken on the application or, where notice is not required, for 25 months from the date of the
application. When a creditor takes adverse action on an existing account, the creditor must retain
records for 25 months after the applicant is notified of the action taken. Records of business credit
applications must be retained for comparable 12-month periods, with certain exceptions.
Regulation B also requires creditors who have been informed that they are the subject of an
investigation by the FTC (or another agency) regarding their compliance with the ECOA to retain
such records until the agency or a court informs the creditor that retention is no longer necessary.
Regulation B also requires creditors to retain certain prescreened solicitation materials for 25
months after the date on which an offer of credit is made to potential customers (12 months for
business credit, with certain exceptions).9 Moreover, Regulation B requires creditors to retain all
lending.” See CFPB Rule, id. That term is also used herein.
The Federal Reserve Board has not issued its related rule for these requirements covering certain motor
vehicle dealers pursuant to the Dodd Frank Act, Section 1029, 12 U.S.C. 5519. In May 2024, following the U.S.
Supreme Court ruling in Consumer Fin. Protection Bureau v. Community Fin. Servs. Ass’n of Am., Ltd. (CFPB v.
CFSA), No. 22-448, 2024 WL 2193873 (U.S.S.C. May 16, 2024), available at
https://www.supremecourt.gov/opinions/23pdf/22-448_o7jp.pdf, the CFPB issued informal guidance extending the
compliance dates for the small business lending rule and indicated it would issue an interim final rule; on June 25,
2024, the CFPB issued an interim final rule, extending the compliance dates accordingly. See CFPB, Small Business
Lending Rulemaking, available at https://www.consumerfinance.gov/1071-rule/; 89 Fed. Reg. 55024 (July 3, 2024),
available at https://www.govinfo.gov/content/pkg/FR-2024-07-03/pdf/2024-14396.pdf, corrected, 89 Fed. Reg. 76713
(Sept. 19, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-09-19/pdf/2024-21265.pdf. The FTC
has hereunder included estimates of burden for these requirements, based on currently available information,
including the supplementary information with the CFPB Rule, 88 Fed. Reg. 35150, and its related CFPB Supporting
Statement.
8

In implementing Regulation B, Subpart B, the CFPB noted that merchant cash advances are covered under that part,
and are “credit” subject to Regulation B (and ECOA). See, e.g., CFPB Rule, 88 Fed. Reg. 35223. When applicable,
these entities (to the extent they are “creditors” under Subpart A) also apparently would be subject to, for example, the
requirement to provide notices whenever they take adverse action, such as denial of a credit application. The CFPB
estimates about 100 merchant cash advance providers as active in the small business lending market. See CFPB Rule,
88 Fed. Reg. 35164. The FTC estimates below cover those providers as “creditors” for Subpart A and re applicable
transactions. As noted above, in view of fluctuations that occurred with COVID-19 and have continued (and with
respect to which the Commission did not reduce its prior burden estimates to avoid undercounting, despite varied
market contractions and shifts), these entities are included within the burden estimates below.

9

The records generally are already retained by creditors in connection with their business operations in part due to
the credit extension that will be made to responding applicants.

3

written or recorded information about a self-test (including corrective action), as defined in
Sections 202.15/1002.15 of Regulation B, for 25 months after a self-test has been completed (and
longer under some circumstances).
Sections 202.13/1002.13 of Regulation B require that creditors who receive applications
for certain mortgage credit requests, as part of the application process, obtain information about
the applicant’s race/national origin, sex, marital status, and age. The applicant is asked but not
required to supply the information. If the applicant chooses not to provide the information or any
part of it, the creditor must note that fact on the form and must note the applicant’s race/national
origin and sex, to the extent that it is possible to determine these characteristics based on a visual
observation or a surname. The creditor is required to inform the applicant that the information is
sought by the federal government to help monitor compliance with federal statutes that prohibit
creditors from discriminating against applicants based on the above-noted factors.10
The recordkeeping requirement ensures that records that might contain evidence of
violations of the ECOA remain available to the FTC and other agencies that enforce the ECOA
and private litigants.
Subpart B
Section 1002.107 addresses various requirements pertaining to collection of data on
covered applications from small businesses. Section 1002.107(a) specifies that covered financial
institutions must compile and maintain enumerated data points, which are detailed there. The data
points are to be collected and reported consistent with the rule and with the Filing Instructions
Guide, provided by the CFPB for the applicable filing year. Some data points could be collected
from the applicant (or determined from information from appropriate third-party sources); other
data points are based on information already within the financial institution’s control.
Section 1002.109 addresses aspects of covered financial institutions’ obligations to report
small business lending data to the CFPB. Section 1002.109(a) notes that data must be collected on
a calendar year basis, compiled in a small business lending application register using the format
supplied by the CFPB and submitted to the CFPB by June 1 of the next year. Section 1002.109(b)
lists information that financial institutions must provide regarding themselves in reporting
information to the CFPB.
Section 1002.111 addresses several parts of the recordkeeping requirements for small
business lending data. This includes, under Section 1002.111(a), that a covered financial
institution must retain evidence of compliance with Subpart B – including a copy of its small
business lending application register, for at least three years after submission to the CFPB (which
10

As noted, Section 1071 of the Dodd-Frank Act, 15 U.S.C. 1691c-2, amended the ECOA to require financial
institutions to collect and report information concerning credit applications by women- or minority-owned businesses
and small businesses, effective on the July 21, 2011 transfer date. Compliance with the CFPB rule for Regulation B,
Subpart B is addressed herein. The Commission will address PRA burden for its enforcement of the requirement with
respect to the Board’s rule after the Board has issued its associated final rule.

4

is pursuant to Section 1002.109). Also, Section 1002.111(b) requires a covered financial
institution to maintain, separately from the rest of an application for credit and related information,
an applicant’s responses to a financial institution’s inquiries regarding the applicant-provided data
on the demographics of the applicant’s ownership. In addition, Section 1002.111(c) requires that
when reporting its small business lending application register and its separately maintained
protected demographic information pursuant to Section 1002.111(b), a financial institution may
not include any personally identifiable information concerning any individual who is, or is
connected with, an applicant.
In addition, the recordkeeping requirements ensure that records that might contain
evidence of violations of the ECOA will be available in a comprehensive database useful for
enforcement of fair lending laws, and to those interested in fair lending and community
development needs and to private litigants.
Disclosure11
Subpart A
Sections 202.9/1002.9 of Regulation B require creditors to provide notice (within specified
time periods) to applicants for credit against whom adverse action is taken.12 Generally, the
required notice must be in writing and contain: a statement of the action taken; the name and
address of the creditor; a statement describing the anti-discrimination provisions of the ECOA; the
name and address of the federal agency that administers compliance as to the creditor; and either a
statement of specific reasons for the action taken or a notice of the applicant's right to obtain such
a statement.
Sections 202.10/1002.10 of Regulation B require creditors that furnish credit information
to consumer reporting agencies to designate accounts to reflect the participation of both spouses, if
the applicant’s spouse is permitted to use or is contractually liable on the account.
Sections 202.14/1002.14 of Regulation B require that creditors provide applicants for a
mortgage loan with a first lien on the dwelling a copy of the appraisal report or other written
valuation prepared in connection with an application.13 The material must be furnished promptly
but no later than three business days prior to consummation of the transaction (closed-end credit)
or account opening (open-end credit), whichever is earlier. The requirement that the creditor
provide a copy of the appraisal report or other written valuation, for a loan secured by a first lien
on a dwelling, is statutorily mandated by Section 1691(e) of the ECOA.

11

Regulation B permits many disclosures to be made orally. Any required written disclosures must be made clearly
and conspicuously and in a form the applicant can retain.

12

For incomplete applications, creditors may initially provide the adverse action notice or a notice of incompleteness.

13

While the rule also requires the creditor to provide a short written disclosure regarding the appraisal process, the
disclosure is now provided by the CFPB, and is thus not a “collection of information” for PRA purposes. See 5 C.F.R.
1320.3(c)(2). Accordingly, it is not included in burden estimates below.

5

Under Sections 202.5(b)/1002.5(b) and 202.15/1002.15 of Regulation B, creditors that
collect applicant characteristics for purposes of conducting a self-test under Regulation B must
disclose, orally or in writing, that providing the information is optional, that the creditor will not
take into account the information in any aspect of the credit transactions, and, if applicable, that
the information will be noted by visual observation or surname, if the applicant chooses not to
provide it.
The requirement that spousal credit history information on shared accounts be reported
under both spouses’ names (if it is reported at all) is intended to ensure that each spouse has the
benefit of that shared credit history from which to seek and obtain further credit. The requirement
that a notice of adverse action be provided assists applicants in detecting unlawful discrimination,
correcting errors that may have occurred in the evaluation of their applications, and learning how
to become more creditworthy. The requirement that information about the race/national origin,
sex, marital status, and age of applicants be collected helps the FTC, other enforcement agencies,
and private litigants to determine whether creditors discriminated against applicants on those
bases. The collateral requirement that applicants be notified of the purpose for collecting this
information helps to ensure that the information is provided. The applicants’ copy of the appraisal
or other written valuation allows applicants to determine the role that the appraisal played in the
credit decision. The self-testing disclosure helps applicants understand the nature of the
information collection process.
The Federal Reserve Board and CFPB have issued model forms that may be used to
comply with the notice requirements of the ECOA and Regulation B. See Appendices B and C to
12 C.F.R. Part 202/1002. Correct use of these model forms insulates creditors from liability for
the respective requirements under the ECOA and Regulation B. Id.
Subpart B
As noted above, Section 1002.107 identifies data points that must be collected and reported
by covered financial institutions for covered applications from small businesses. When requesting
an applicant’s protected demographic information, a financial institution must inform the applicant
that the financial institution cannot discriminate on the bases of the protected information and that
Federal law requires it to ask for the information to help ensure that all small business applicants
for credit are treated fairly.
Section 1002.108 implements Section 1071 of the Dodd Frank Act’s requirement that an
applicant’s protected demographic information be shielded from employees and officers in making
determination about applications for credit if possible; but if the financial institution determines
that certain persons should have access accordingly it may do so if it informs the applicant. The
notice can be provided to each applicant whose information will be accessed or, alternatively, to
all applicants. The CFPB provides the sample disclosure that a financial institution can (but is not
required to) use for this purpose.
Section 1002.110(c) requires a covered financial institution to publish on its website a
statement that its small business lending data, as modified by the CFPB, is or will be available
6

from the CFPB – to satisfy the statutory obligation to make the data available to the public if
requested. The CFPB provides the information for the financial institution’s use on the website (or
the financial institution can use substantially similar information, if it prefers).
2.

Use of the Information

As to Subpart A, the FTC, other agencies, and private litigants use recordkeeping
information to compare accepted and rejected applicants in order to determine whether applicants
are treated less favorably on the basis of race, sex, age, or other prohibited bases under the ECOA.
Information derived from these records has been and is the primary evidence of law violations in
most of the ECOA enforcement actions brought by the FTC. Self-testing records (including for
corrective action) are used by creditors to identify potential violations and reflect their efforts to
correct the problem. Absent the Regulation B requirement that creditors retain monitoring
information, the FTC’s ability to detect unlawful discrimination and enforce the ECOA would be
significantly impaired. As to Subpart B, the recordkeeping and reporting requirements enable
compliance with Section 1071’s statutory purposes to facilitate enforcement of fair lending laws
and enable identification of business and community development needs and opportunities of
women-owned, minority-owned and small businesses. The requirements also enable applicants
for credit to determine if covered financial institutions have provided the requisite information on
which they can rely, particularly regarding potential discrimination and fair lending compliance.
As to Subpart A, the adverse action notice requirement apprises applicants of their rights
under the ECOA and of the basis for a creditor’s decision. Applicants use their copy of the
appraisal to review (and possibly challenge) the accuracy and/or fairness of the information
contained within, and to determine the role that the appraisal played in the credit decision.
Applicants use the self-testing disclosure to facilitate understanding of creditors’ information
collection, including its optionality. These disclosures are necessary for the FTC and private
litigants to enforce the ECOA. As to Subpart B, the notice provisions will apprise applicants that
financial institutions cannot discriminate on the basis of protected demographic information and
that federal law requires such entities to ask for the information to help ensure small business
applicants for credit are treated fairly and community small business needs are met. The website
notice requirements also help apprise persons that wish to access the small business lender data of
such entities that it is or will be, as modified by the CFPB, available from the CFPB.
3.

Consideration of the Use of Improved Information Technology

For Subpart A, the Federal Reserve Board and CFPB have issued rules to establish uniform
standards for using electronic communication to deliver disclosures required under Regulation B,
within the context of the Electronic Signatures in Global and National Commerce Act (“ESIGN”),
15 U.S.C. 7001 et seq., and Sections 202.4(d)/1002.4(d) of Regulation B. These rules enable
businesses to utilize electronic disclosures and compliance, consistent with the requirements of
ESIGN. Use of such electronic communications is also consistent with the Government
Paperwork Elimination Act (“GPEA”), codified at 44 U.S.C. 3504 note. ESIGN and GPEA serve
to reduce businesses’ compliance burden related to federal requirements, including Regulation B,
by enabling creditors to utilize more efficient electronic media for disclosures and compliance.
7

Regulation B also permits a creditor to retain records as “carbon copies, photocopies,
microfilm or microfiche copies, or copies produced by any other accurate retrieval system, such as
documents stored and reproduced by computer.” Section 202.12(b)-1 of the Federal Reserve
Board Commentary; Section 1002.12(b)-1 of the CFPB Commentary. In addition, Regulation B
permits a creditor to record the information required for monitoring purposes “by recording on
paper or by means of computer . . . .” Section 202.13(b)-2 of the Federal Reserve Board
Commentary; Section 1002.13(b)-2 of the CFPB Commentary.
For Subpart B, financial institutions must submit data to the CFPB in electronic form,
which involves more readily available information, and the CFPB continues to address its system
to receive, process, and publish the data so collected. The CFPB is incorporating for this
collection, prior approaches established for other laws, such as the Home Mortgage Disclosure Act
(“HMDA”) and its implementing Regulation C. As noted above, the CFPB has developed a Filing
Instruction Guide and related material for financial institutions’ use.14
4.

Efforts to Identify Duplication/Availability of Similar Information

As to Subpart A, the recordkeeping requirement of Regulation B preserves the information
considered by the creditor in deciding whether to extend credit or terminate an existing credit
account. The creditor is the only source of this information, and no other federal law mandates its
retention. State laws do not duplicate these requirements.15 Similarly, the creditor is the only
source of the information provided by appraisal reports, adverse action notices, and self-testing
information, and no other federal law mandates provision of the report (in a fully duplicative
manner) or the disclosure nor is staff aware of any state law mandating this information.16
14

The CFPB has made available guidance for providing data consistent with the new rule, including in electronic
form See generally CFPB, Filing Instructions Guides for Small Business Lending Rule,
https://www.consumerfinance.gov/data-research/small-business-lending/filing-instructions-guide/. See also CFPB,
Small Business Lending Rule FAQs (last updated June 25, 2024),
https://www.consumerfinance.gov/compliance/compliance-resources/small-business-lending-resources/smallbusiness-lending-collection-and-reporting-requirements/small-business-lending-rule-faqs/.
15

Regarding prescreened solicitations, Section 615(d) of the Fair Credit Reporting Act (“FCRA”) requires retention
of some, but not identical, information required by the ECOA. Among other things, the FCRA requires persons who
use information in consumer reports to select consumers to receive certain offers of credit to maintain the criteria used
to select the consumer, for three years from the date the credit offer is made. The ECOA focuses on creditors,
includes certain business applicants, and also addresses the solicitation including the text and any related complaints.
The Board and CFPB issued these rules to ensure that creditors would retain all necessary information for
enforcement and avoidance of circumvention of the ECOA.
16

The requirement in ECOA to provide applicants with copies of written appraisals, in part, duplicates a requirement
in the Truth in Lending Act (“TILA”) to provide copies of written appraisals for certain higher-priced mortgage loans,
15 U.S.C. 1639h. The Dodd-Frank Act amended both ECOA and TILA to add the appraisal rules that overlap only in
part. For example, the ECOA appraisal rule applies to those transactions that meet all of the following conditions: (1)
first liens; (2) involving business or consumer transactions; and (3) that are open-end or closed-end mortgages. The
TILA appraisal rule applies to those loans that meet all of the following conditions: (1) any lien; (2) involving
consumer transactions; and (3) that are higher-priced mortgage loans (HPMLs) (a type of closed-end credit) under
TILA and that are not exempt under those rules (such as bridge loans, reverse mortgages, loans for $25,000 or less as

8

Regulation C under the HMDA requires mortgage lenders subject to that Act to collect and
report information about the race or national origin and sex of applicants. The data collection
requirements of HMDA are similar, but not identical to, those of the ECOA. However, the FTC
has no enforcement authority for HMDA, and ordinarily has no right to obtain this information
except to the extent that it becomes publicly available. Moreover, the HMDA information
released publicly does not include identifying information about individual applicants. Thus, the
HDMA monitoring information is less useful to FTC staff in its enforcement efforts than is the
ECOA monitoring information. The creditor is also the only source of the credit history reporting
information regarding the applicant’s spouse.
As to Subpart B, some aspects of this information overlap with other regulations (although
the FTC does not enforce those regulations). For example, primary sources of information on
small business lending by depository institutions – such as banks over which the FTC does not
have jurisdiction – are the Federal Financial Institutions Examination Council (FFIEC) and the
NCUA’s Consolidated Reports of Condition and Income (Call Reports) – however the FTC does
not have examination or supervision authority and is not part of the FFIEC, does not have
jurisdiction over Federally-chartered credit unions, and does not have enforcement authority as to
the Community Reinvestment Act (CRA). All of these reporting mechanisms also focus on
entities with certain limited sizes, and no similar sources of information about lending to small
business exist by other non-depository entities. Although the Small Business Administration
releases certain data concerning its loan programs, it generally does not include demographic
information and covers only a small portion of the total small business financing market. In
addition, among other things, other existing Federal regulations do not require the collection of
data regarding applications, which is the focus of Section 1071 of the Dodd-Frank Act, and data
that otherwise exists is not standardized.
5.

Efforts to Minimize Burdens on Small Businesses

As to Subpart A, the ECOA and Regulation B accord special treatment to creditors that
receive fewer than 150 applications each year. Sections 202.9(d)/1002.9(d) of the Regulation
states that such creditors may provide required notices to rejected applicants orally rather than in
writing. Where fewer written records are required to be created, the recordkeeping burden is
correspondingly reduced. In addition, Sections 202.3(c)/1002.3(c) of the Regulation exempts
providers of incidental credit, such as a doctor or lawyer who allows a patient or client to defer
payment of a bill, from many requirements including notifications under Sections 202.9/1002.9 of
the Regulation and recordkeeping. The requirements to collect monitoring information and to
indexed each year for inflation, and any mortgage that constitutes a qualified mortgage under TILA or that meets rules
on qualified mortgages issued by the U.S. Dept. of Housing and Urban Development, U.S. Dept. of Agriculture, or
U.S. Dept. of Veterans Affairs). However, where duplicative requirements apply (e.g., for consumer credit that
involves first lien, closed-end HPMLs that are also non-exempt under the TILA appraisal rules), creditors can provide
one appraisal, based upon the applicable rules. See CFPB, Equal Credit Opportunity Act (ECOA) Valuations Rule,
Small Entity Compliance Guide (Jan. 13, 2014), and CFPB, TILA Higher-Priced Mortgage Loans (HPML) Appraisal
Rule, Small Entity Compliance Guide (Jan. 13, 2014). This approach ensures that applicants will receive a copy of
the required appraisal, and it also limits burden to creditors.

9

provide a copy of the appraisal report apply to all creditors who extend applicable mortgage credit.
There is no exception based on creditor size.
Additionally, as noted above, Regulation B provides model forms that may be used in
compliance with its requirements. Correct use of these forms insulates creditors from liability
from the respective requirements.
As to Subpart B, Section 1002.105(b) defines a covered financial institution as having
originated at least 100 covered credit transactions for small business in each of the two preceding
calendar years. This requirement limits the entities subject to the reporting threshold for
information collection/reporting, recordkeeping, and any notices. In addition, Section 1002.107(b)
states that unless otherwise provided, financial institutions may rely on statements provided by
applicants when compiling data – clarifying that independent verification of such data is not
required. Also Section 1002.107(d) permits financial institutions to reuse previously collected
data for some reporting purposes if collected within the applicable time frame and the financial
institution has no reason to believe the data to be inaccurate – thus facilitating the multiple-usages
of such data and limiting collection or recollection. Section 1002.110(c) requires a covered
financial institution to make available to the public on its website or on request a statement that its
small business lending application register, as modified by the CFPB, is or will be available from
the CFPB; to assist in compliance, the CFPB via Subpart B provides compliance guidance on the
rule’s requirements, including among other things a sample form for data collection that may be
used for this purpose.17
6.

Consequences of Conducting Collection Less Frequently

As to Subpart A, the current record retention period of 25 months supports the five-year
statute of limitations for private actions, and the FTC’s (and other administrative agencies’) need
for sufficient time to bring enforcement actions regarding ECOA issues. If the retention period
were shortened, applicants who sue under the ECOA, and administrative agencies that enforce the
ECOA, might find that the records needed to prove ECOA violations no longer exist.
Were the requirement that creditors provide notice of adverse action eliminated, applicants
could be deprived of the right to receive timely notice of the creditor’s decision, the reasons for
any adverse action by the creditor, and the applicants’ rights under the ECOA. Eliminating the
requirement that creditors provide a copy of the appraisal report or notice of its availability would
greatly impair applicants’ ability to assess the report’s impact on the creditor’s decision and to
challenge it in timely fashion. Were the requirement that creditors collect information about an
17

See CFPB, Small Business Lending Rule, Small Entity Compliance Guide (Aug. 2024),
https://files.consumerfinance.gov/f/documents/cfpb small-business-lending-rule small-entity-compliance-guide.pdf;
Small Business Lending Rule FAQs (last updated June 25, 2024),
https://www.consumerfinance.gov/compliance/compliance-resources/small-business-lending-resources/smallbusiness-lending-collection-and-reporting-requirements/small-business-lending-rule-faqs/; Small Business Lending
Sample Data Collection Form (CFPB Final Rule, Appendix E),
https://www.consumerfinance.gov/compliance/compliance-resources/small-business-lending-resources/smallbusiness-lending-collection-and-reporting-requirements/small-business-lending-sample-form/.

10

applicant's race or national origin eliminated or changed, the creditor would still have access to
this information when obtained through a face-to-face interview with the applicant and could use
the information to discriminate. However, the FTC and others seeking to enforce compliance with
the ECOA would not have that information and would thereby be disadvantaged. Eliminating the
self-test disclosure could disadvantage consumers who may then not understand the purpose of the
information being collected, or their option not to provide it. Finally, eliminating the credit
history reporting requirement regarding spouses with shared accounts would undermine the goal
of affording both spouses the benefit of that shared credit history in seeking further credit.
As to Subpart B, if the data collection and reporting requirements were eliminated or
changed, the FTC and other agencies seeking to enforce fair lending laws would not have the
necessary information, which could adversely impact enforcement. If the notice requirements
were eliminated – even though compliance is facilitated and supported by the CFPB’s sample
information provided - the public would not have this information, making it difficult for
individuals and entities to use small business lending data to address fair lending enforcement.
The three-year record retention period after submission of small business lending data to the
CFPB is necessary to support a sufficient period to ascertain compliance with the rule and Section
1071 of the Dodd-Frank Act, by the FTC and other federal agencies, and these enforcers and
private litigants might not have necessary information to support accurate assessment of and legal
action regarding law violations otherwise.
7.

Circumstances Requiring Collection Inconsistent with Guidelines

As to Subpart A, Regulation B’s recordkeeping and disclosure requirements are consistent
with the guidelines contained in 5 C.F.R. 1320.5(d)(2). As to Subpart B, Section 1002.107(a)
requires financial institutions to submit information that might include confidential information.
The CFPB has discretion to modify public disclosure to advance privacy interests under ECOA
Section 704B(e)(4), and it has indicated it continues to review and consider this area. Some data
is considered confidential if it identifies applicants or persons who might not be applicants or it
implicates relevant privacy interests of applicants, related natural persons or financial
institutions.18
8.

Consultation Outside the Agency

Both the recordkeeping and the notice requirements of Regulation B, Subpart A were
issued by the Federal Reserve Board and CFPB. Before the regulation was initially issued and
prior to each amendment, the amendments were published for public comment in the Federal
Register. The recordkeeping, reporting and notice requirements of Regulation B, Subpart B issued
by the CFPB were also published for public comment in the Federal Register.
More recently, the Commission sought public comment in connection with its latest
Paperwork Reduction Act (“PRA”) clearance request for these regulations, in accordance with 5
C.F.R. 1320.8(d). See 89 Fed. Reg. 62,736 (Aug. 1, 2024). Eight comments were received. One
18

See generally, CFPB Rule, 88 Fed. Reg. 35150.

11

comment supported the proposal and stated that extension of clearance for these requirements and
documentation of compliance is essential for the protection of consumers. Seven comments were
unrelated to the proposal (and pertained to other issues such as antitrust topics). Consistent with 5
C.F.R. 1320.12(c), the FTC is again seeking public comment contemporaneously with this
submission.
9.

Payments or Gifts to Respondents
Not applicable.

10. & 11.

Assurances of Confidentiality/Matters of a Sensitive Nature

As to Subpart A, the required recordkeeping and written disclosures contain private
financial information about applicants for consumer credit. This information is protected by the
Right to Financial Privacy Act, 12 U.S.C. 3401 et seq. Such records may also constitute
confidential customer lists. Any of these records provided to the FTC would be covered by the
protections of Sections 6(f) and 21 of the FTC Act, 15 U.S.C. 46(f) and 57b-2, by Section 4.10 of
the Commission’s Rules of Practice, 16 C.F.R. 4.10, and by the applicable exemptions of the
Freedom of Information Act, 5 U.S.C. 552(b). As to Subpart B, some of the recordkeeping and
reporting requirements contain private information about small business applicants for credit.
Section 1002.111(c) requires that in reporting small business data to the CFPB, a financial
institution cannot include any name, address, telephone number, email address, or other personally
identifiable information concerning any individual who is or is connected with an applicant, with
limited exceptions. Section 1002.111(e) also prohibits financial institutions and third parties from
sharing protected demographic information collected under Subpart B with third parties unless to
further compliance with ECOA or Regulation B or as required by law.
12.

Estimated Hours and Labor Cost Burden

Estimated Hours Burden: 3,877,492 (1,296,378 recordkeeping hours + 2,581,114
disclosure and reporting hours)
Given their generally shared enforcement jurisdiction for Regulation B,19 the CFPB and
the FTC have divided the FTC’s previously cleared PRA burden estimates between them, except
that the FTC has assumed all of the burden estimates associated with motor vehicle dealers and
also, when appropriate, regarding estimated burden for state-chartered credit unions.20 The
19

See supra notes 4 and 5 and accompanying text.

20

As of the fourth quarter of 2023, there were approximately 1,936 state-chartered credit unions with federal
insurance; there also have been an estimated 112 or more which were privately insured, and an estimated 100 or more
in Puerto Rico which were insured by a quasi-governmental entity. Because of the difficulty in parsing out PRA
burden for such entities in view of agencies’ overlapping enforcement authority (see supra note 5 and accompanying
text), the FTC’s estimates include PRA burden for all state-chartered credit unions, unless otherwise noted. However,
in view of fluctuations that began due to COVID-19 and have continued and to avoid undercounting, we have retained
the prior estimate of 2,300 state-chartered credit unions, unless otherwise stated. Similarly, because it is not

12

division of PRA burden hours not attributable to motor vehicle dealers and, when appropriate, to
state-chartered credit unions, is reflected in the CFPB’s PRA clearance requests to OMB,21 as well
as in the FTC’s burden estimates below.
The following discussion and ensuing tables present the FTC’s estimates of PRA
recordkeeping and disclosure burden (average time and labor costs) for this very broad spectrum
of covered entities. These estimates exclude time and labor costs that the FTC believes those
entities incur customarily in the normal course of business22 as well as information compiled and
produced in response to FTC law enforcement investigations or prosecutions.23
Recordkeeping
FTC staff estimates that Regulation B, Subpart A general recordkeeping requirements
affect 530,762 credit firms subject to the Commission’s jurisdiction, at an average annual burden
of 1.25 hours per firm for a total of 663,453 hours. Staff also estimates that the requirement that
mortgage creditors monitor information about race/national origin, sex, age, and marital status
imposes a maximum burden of one minute each (of skilled technical time) for approximately 2.6
million credit applications (based on industry data regarding the approximate number of mortgage
purchase and refinance originations), for a total of 43,333 hours.24 Staff also estimates that
recordkeeping of self-testing subject to the regulation would affect 1,500 firms, with an average
annual burden of one hour (of skilled technical time) per firm, for a total of 1,500 hours, and that
recordkeeping of any corrective action as a result of self-testing would affect 10% of them, i.e.,
150 firms, with an average annual burden of four hours (of skilled technical time) per firm, for a
total of 600 hours.25 This is a total of 708,886 hours for Subpart A.
Regulation B, Subpart B, also requires recordkeeping for its data requirements. Staff
estimates that these requirements affect 681 covered financial institutions subject to the
Commission’s jurisdiction, at an average annual burden of 32 hours per firm for 24 Type A
practicable for PRA purposes to estimate the portion of motor vehicle dealers that engage in one form of financing
versus another (and that would or would not be subject to CFPB oversight), the FTC staff’s PRA burden analysis
reflects a general estimated volume of motor vehicle dealers. These attributions of burden estimation for motor
vehicle dealers and state-chartered credit unions do not bear on actual enforcement authority.
21

OMB Control Number 3170-0013 (Regulation B).

22

PRA “burden” does not include “time, effort, and financial resources” expended in the normal course of business,
regardless of any regulatory requirements. See 5 C.F.R. 1320.3(b)(2).

23

See 5 C.F.R. 1320.4(a) (excluding information collected in response to, among other things, a federal civil action or
“during the conduct of an administrative action, investigation, or audit involving an agency against specific
individuals or entities”).

24

Regulation B contains model forms that creditors may use to gather and retain the required information.

25

In contrast to banks, for example, entities under the FTC’s jurisdiction are not subject to audits by the FTC for
compliance with Regulation B; rather they may be subject to FTC investigations and enforcement actions. This may
impact the level of self-testing (as specifically defined by Regulation B) in a given year, and staff has sought to
address such factors in its burden estimates.

13

entities (state-chartered credit unions), 68 hours per firm for 553 Type B entities (520 nondepositories plus 33 state-chartered credit unions) and 5,280 hours per firm for 104 entities (100
non-depositories plus 4 state-chartered credit unions), for a total of 587,492 recordkeeping hours
for Subpart B.26
This yields a total annual recordkeeping burden of 1,296,378 hours for Regulation B,
Subparts A and B.
Disclosures and Reporting
Regulation B, Subpart A, requires that creditors (i.e., entities that regularly participate in
the decision whether to extend credit under Regulation B) provide notices whenever they take
adverse action, such as denial of a credit application. It requires entities that extend mortgage
credit with first liens to provide a copy of the appraisal report or other written valuation to
applicants.27 Regulation B, Subpart A, also requires that for accounts that spouses may use or for
which they are contractually liable, creditors who report credit history must do so in a manner
reflecting both spouses’ participation. Further, it requires creditors that collect applicant
characteristics for purposes of conducting a self-test to disclose to those applicants that: (1)
providing the information is optional; (2) the creditor will not take the information into account in
any aspect of the credit transactions; and (3) if applicable, the information will be noted by visual
observation or surname if the applicant chooses not to provide it.28
Regulation B, Subpart B requires covered financial institutions to collect and report
annually to the CFPB various data on covered applications for covered credit transactions from
small businesses, including those owned by women or minorities – which, among other things,
generally involves entities with a gross annual revenue for the preceding fiscal year of $5 million
or less. It covers credit such as loans, lines of credit, credit cards, merchant cash advances, and
various other credit products. Collection and reporting to the CFPB follows procedures
established under the regulation and certain data points.29 The burden hours below are based on
26

A financial institution is covered by Regulation B, Subpart B, if it originates at least 100 covered credit transactions
for small businesses in each of the two preceding calendar years (once the compliance date takes effect). A “covered
credit transaction” is one that meets the definition of business credit under Regulation B (as it existed before the small
business lending amendments), with some exceptions, and includes, for example, loans, lines of credit, merchant cash
advances and others. See generally 12 CFR 1002.104 and 1002.105; CFPB Rule, 88 Fed. Reg. 35150. Burden hours
for entities vary depending on the level of complexity of their transactions and procedures.

27

While the rule also requires the creditor to provide a short written disclosure regarding the appraisal process, the
disclosure language is provided by the CFPB, and is thus not a “collection of information” for PRA purposes.
Accordingly, it is not included in burden estimates below.

28

The disclosure may be provided orally or in writing. The model form provided by Regulation B assists creditors in
providing the written disclosure.

29

In addition to certain information related to the financial institution, such as a unique identifier and its name and
address, these data points include, for example, the application date, application method, application recipient, credit
type and credit purpose, amount applied for and amount approved or originated, action taken and date, denial reasons,

14

those for DIs (state chartered credit unions, which are considered depository institutions, under the
rule) and non-DIs (all other entities), and whether the applicable respondents are Type A, B, or C
entities under the rule.30 Staff estimates that the reporting requirements (which under the rule
include that for collection of data) for Regulation B, Subpart B, involve both one-time and
ongoing burden. Burden estimates relating to the disclosures required under Regulation B,
Subpart A, and reporting required under Regulation B, Subpart B, and labor cost estimates for
Subparts A and B are provided in the tables below.

pricing information, census tract, and other items, as well as certain demographics of applicants’ ownership (including
whether the applicant is a minority-owned business or women-owned business, whether the applicant is an LBGTQ+owned business, and the ethnicity, race, and sex of the applicant’s principal owners). See generally 12 CFR 1002.107
and 1002.109; CFPB Rule, 88 Fed. Reg. 35150. The CFPB has provided a sample data collection form, which is
voluntary, that financial institutions may use for data collection and reporting; in the alternative, they could use their
own form that complies with the requirements. See 12 CFR Part 1002, Appendix E. Although financial institutions
must request the various information specified in the rule, small business entities need not provide it.
In a few instances, Subpart B includes certain notices for financial institutions to provide to consumers in
conjunction with the data collection and reporting. These notices are provided by the CFPB for the financial
institution and are included within the reporting estimates (and are not separate collections of information). The first
two notices pertain to information being requested by the financial institution. See 12 CFR 1002.107(a)(18) & (19)
(that the financial institution cannot discriminate on the basis of minority-owned, women-owned, or LGBTQI+-owned
business status, on the basis of a principal owner’s ethnicity, race, or sex, or on whether the applicant provides any of
this information, when the financial institution requests that information); and 1002.108(c) & (d) (a financial
institution could establish a “firewall” so that employees and certain other persons cannot access certain protected
financial information of the applicants but if it doesn’t, the financial institution would instead notify small business
entities when collecting information that certain employees or persons can access the demographic information
provided). The above notices are included on the CFPB’s data collection form. Additionally, these notices can be
combined together (if the financial institution chooses to use its own form), and/or can be oral depending on the
circumstances (including for in-person, oral, or telephone applications). The CFPB also has provided the third notice
referenced above. See 12 CFR 1002.110(c) & (d), and 1002.110(c)-1, Supp. 1, Regulation B Official Staff
Commentary (a notice for the financial institution’s website or otherwise upon request, that the financial institution’s
data is available from the CFPB). These notices are encompassed within the reporting requirements of the rule.
30

Under the CFPB rule: Type A entities have the lowest level of complexity, and are estimated to originate less than
150 covered applications annually; Type B entities have a mid-level of complexity, and are estimated to originate 150999 covered applications annually; and Type C entities have the highest level of complexity, and are estimated to
originate 1000 or more covered applications annually. See CFPB Rule, 88 Fed. Reg. 35496-97.

15

Regulation B, Subpart A: Disclosures – Burden Hours

Disclosures

--------------- Setup/Monitoring1 ----------------------- Transaction-related----------Average
Total Setup/
Average
Total
Burden per
Monitoring
Number of Burden per Transaction
Total
Respondents Respondent
Burden
Transactions Transaction
Burden
Burden
(hours)
(hours)
(minutes)
(hours)
(hours)

Credit history reporting
133,553
Adverse action notices
530,762
Appraisal reports/written valuations 4,650
Self-test disclosures
1,500

.25
.75
1
.5

33,388
398,072
4,650
750

60,098,850
92,883,350
1,725,150
60,000

.25
.25
.50
.25

250,412
387,014
14,376
250

Total
1

283,800
785,086
19,026
1,000
1,088,912

The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations.

Regulation B, Subpart B: Reporting (Setup/One-time) – Burden Hours
--------------Reporting
Type A DIs
Type B DIs
Type C DIs
All Non DIs

Respondents
24
33
4
620

Setup/One-time for Reporting1 --------------Average
Total Setup for
Burden per
Reporting
Respondent
Burden
(hours)
(hours)
273
176
503
253

6,552
5,808
2,012
156,860

Total
1

171,232

The estimates assume that all applicable entities would be affected.

Regulation B, Subpart B: Reporting (Ongoing) – Burden Hours
-----------Reporting
Type A DIs
Type B DIs
Type C DIs
Type B Non DIs
Type C Non-DIs

Respondents
24
33
4
520
100

--- Ongoing for Reporting1 --------------Average
Total
Burden per
Reporting
Respondent
Burden
(hours)
(hours)
112
658
9,177
658
.9,177

2,688
21,714
36,708
342,160
917,700

Total
1

1,320,970

The estimates assume that all applicable entities would be affected.

16

Associated labor cost: $159,000,057 ($32,783,491 recordkeeping costs + $126,216,566
disclosure and reporting costs)
Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours
described above. The hourly rates used below ($66 for managerial or professional time, $47 for
skilled technical time, and $22 for clerical time) are averages.31
Recordkeeping
For Subpart A, staff estimates that the general recordkeeping responsibility of one hour per
creditor would involve approximately 90 percent clerical time and 10 percent skilled technical
time. Keeping records of race/national origin, sex, age, and marital status requires an estimated
one minute of skilled technical time. Keeping records of the self-test responsibility and of any
corrective actions requires an estimated one hour and four hours, respectively, of skilled technical
time. For Subpart B, staff estimates that the general recordkeeping responsibility applies as
shown below, and would involve approximately 90 percent clerical time and 10 percent skilled
technical time. As shown below, the total recordkeeping cost is $32,783,491.
Disclosures and Reporting
As noted, staff estimates that the burden hours consist of 10 percent managerial or
professional time and 90 percent skilled technical time. The total disclosures and reporting cost is
$126,216,566. As shown below, the total recordkeeping, disclosures and reporting cost is
$159,000,057.
Regulation B, Subpart A: Recordkeeping and Disclosures – Cost
Required Task

------Managerial-----Time
Cost
(hours)
($66/hr.)

General recordkeeping
Other recordkeeping
Recordkeeping of self-test
Recordkeeping of corrective action

0
0
0
0

$0
$0
$0
$0

-----Skilled Technical----- --------Clerical-------Time
Cost
Time
Cost
(hours)
($47/hr.)
(hours)
($22/hr.)
66,345
43,333
1,500
600

$3,118,215
$2,036,651
$70,500
$28,200

597,108 $13,136,376
0
$0
0
$0
0
$0

Total Recordkeeping
Disclosures:
Credit history reporting
Adverse action notices
Appraisal reports
Self-test disclosure

Total
Cost
($)
$16,254,591
$2,036,651
$70,500
$28.200
$18,389,942

28,380
78,509
1,903
100

$1,873,080
$5,181,594
$125,598
$6,600

255,420 $12,004,740
706,577 $33,209,199
17,123
$804,781
900
$42,300

Total Disclosures
Total Recordkeeping and Disclosures

0
0
0
0

$0
$0
$0
$0

$13,877,820
$38,390,793
$930,379
$48,900
$53,247,892
$71,637,834

31

These inputs are based broadly on mean hourly data found within the “Bureau of Labor Statistics, Economic News
Release,” April 3, 2024, Table 1, “National employment and wage data from the Occupational Employment Statistics
survey by occupation, May 2023.” http://www.bls.gov/news.release/ocwage.t01.htm.

17

Regulation B, Subpart B: Recordkeeping and Reporting – Cost
Required Task
Recordkeeping

------Managerial-----Time
Cost
(hours)
($66/hr.)
0

$0

-----Skilled Technical----- --------Clerical-------Time
Cost
Time
Cost
(hours)
($47/hr.)
(hours)
($22/hr.)
58,749

$2,761,203

528,743 $11,632,346

Total Recordkeeping
Reporting:
One-time
Ongoing

Total
Cost
($)
$14,393,549
$14,393,549

17,123
132,097

$1,130,118
$8,718,402

154,109 $7,243,123
1,188,873 $55,877,031

0
0

$0
$0

$8,373,241
$64,595,433

Total Reporting

$72,968,674

Total Recordkeeping and Reporting

$87,362,223

Regulation B, Subparts A and B: Recordkeeping, Disclosures and Reporting – Cost
Required Task

------Managerial-----Time
Cost
(hours)
($66/hr.)

-----Skilled Technical----- --------Clerical-------Time
Cost
Time
Cost
(hours)
($47/hr.)
(hours)
($22/hr.)

Total Recordkeeping, Disclosures and Reporting

Total
Cost
($)
$159,000,057

18

13.

Estimated Capital and Other Non-Labor Costs
Estimated Annual Non-Labor Costs: Subpart A - $0; Subpart B - A range up to $6 million.

Generally, as to Subpart A, the applicable requirements impose minimal start-up costs, as
lenders generally have or obtain necessary equipment for other business purposes. For the same
reason, staff believes that the cost of printing and copying needed to comply with Regulation B is
minimal. Staff anticipates that the above requirements necessitate ongoing, regular training so that
lenders stay current and have a clear understanding of federal mandates. This training, however,
would be a small portion of and subsumed within the normal training that employees receive apart
from that associated with collecting information to comply with Regulation B.
For the small business lending requirements in Subpart B pertaining to reporting of
information to the CFPB, and as to training of applicable entities’ staff, the CFPB has issued
compliance guidance for this purpose.32 Some entities will utilize and adapt existing systems in
connection with Subpart B reporting; others may need to further expand or implement new
systems or components. The FTC does not have supervision or examination authority, and does
not oversee or directly regulate compliance activities, but rather uses enforcement actions and
other initiatives in connection with requirements. The FTC also does not have jurisdiction over
banks or Federal credit unions. The FTC has jurisdiction over state-chartered credit unions and
various nonbank entities, which are highly diverse in their characteristics, types, and current
capabilities. To that end, the CFPB has extended compliance effective dates and filing deadlines
providing additional time for addressing requirements (and related systems), with the earliest
compliance start date as July 18, 2025 and its related first filing deadline as June 1, 2026. See 89
Fed. Reg. 55024 (July 3, 2024), corrected 89 Fed. Reg. 76713 (Sept. 19, 2024). Notably, such
data systems also could be used or adapted for multiple uses and diverse business purposes
(including as to use for its potential expansion of offers and extensions of such credit to applicable
entities or to expanded communities - one of the primary goals of the statutory requirements as
well). Accordingly, staff’s best estimate of capital and other non-labor costs that may apply for
entities under its jurisdiction – and considering the wide range of types of entities that can be
covered and under the FTC’s jurisdiction – could potentially range up to a total of $6 million
overall - to implement data systems consistent with the statutory requirements. This estimate is
based on its enforcement experience and the fact that the entities can have various degrees of
capability to address necessary data as required, if they are engaged in such activity and covered
by the requirements, and can consider use of technology upgrades and adaptations of their current
compliance, and resulting use of such systems for multiple business purposes.33
14.

Estimated Cost to the Federal Government

The Federal Reserve Board and CFPB issued the recordkeeping requirement of Regulation
B for Subpart A, and the CFPB issued such requirement for Subpart B, so there is no cost to the
32

See CFPB, Small Business Lending Rule, Small Entity Compliance Guide,
https://files.consumerfinance.gov/f/documents/cfpb small-business-lending-rule small-entity-compliance-guide.pdf.
33
See also CFPB Rule, 88 Fed. Reg.35150 and related Supporting Statement.

19

FTC for that purpose. Enforcement of the recordkeeping requirements of Regulation B is
incidental to overall enforcement of the ECOA. In the course of compliance investigations, staff
routinely requests records of credit applications. If the records requested are not available, it
indicates that records are not being retained as required. Staff estimates that enforcing this
requirement will cost the FTC Bureau of Consumer Protection no more than $211,191, which is a
representative year’s cost of enforcing Regulation B’s requirements during the three-year
clearance period sought. This estimate is based on the assumption that one attorney work year
will be expended. Clerical and other support services are included in this estimate.
The Board and CFPB issued the Regulation B disclosure requirements and the CFPB
issued the reporting requirements, so there is no cost to the FTC for that purpose. As noted above,
the FTC does not have supervision or examination authority, and the reporting of information
under Subpart B is provided to the CFPB and addressed through its data system. Regarding
enforcement, staff estimates that the cost to the FTC Bureau of Consumer Protection for
Regulation B requirements will approximate $633,572. This estimate is based on the assumption
that 3 attorney work years will be expended to enforce various aspects of these rules. Clerical and
other support services are also included in this estimate.
15.

Program Changes or Adjustments

For Subpart A, the labor costs are adjusted upward to reflect updated BLS wage data.
Subpart B information collections are the result of a program change required by the Dodd-Frank
Act, Section 1071, and the CFPB’s implementation of amended Regulation B, which derives from
those statutory changes, as addressed in our responses to #1-2 and #12-13 above.
16.

Publishing Results of the Collection of Information

Not applicable as to Subpart A. As to Subpart B, the CFPB expects to make data that is
required to be reported to them available to the public in the future, subject to protection of
appropriate or confidential data aspects and their determination of appropriate format and related
considerations. See generally 88 Fed. Reg. 35150. The FTC has no plans to publish any
information for statistical use.
17.

Display of Expiration Date for OMB Approval
Not applicable.

18.

Exceptions to the Certification for PRA Submissions

The FTC certifies that this collection of information is consistent with the requirements of
5 C.F.R. 1320.9, and the related provisions of 5 C.F.R. 1320.8(b)(3), and is not seeking an
exception to these certification requirements.

20