On July 14, ELFA hosted a member webinar examining the Consumer Financial Protection Bureau's (CFPB) newly finalized Section 1071 rule and its implications for the equipment finance industry. Moderated by ELFA Senior Vice President of Public Policy and Government Affairs Susan Sullivan Kinney, the discussion featured Elena Babinecz, Shareholder at Baker Donelson; Owen Babcock, Partner at Padfield & Stout; and me in my role as ELFA Vice President of Federal Government Affairs.
With the Bureau issuing its revised final rule in May 2026, ELFA has been focused on helping members understand both what has changed and what remains uncertain. The webinar provided an overview of ELFA's advocacy efforts, the status of ongoing litigation, our engagement with the CFPB throughout the rulemaking process, key revisions from the 2023 rule, and the practical considerations members should be evaluating as implementation moves forward.
Susan opened the discussion by reflecting on ELFA's years-long advocacy surrounding Section 1071, highlighting the organization’s engagement with regulators, congressional outreach, and litigation strategy. I summarized key issues raised during ELFA’s engagement with the Bureau, noting the significant positive changes resulting from ELFA advocacy.
That foundation set the stage for a thoughtful discussion on where the rule stands today and what members should expect next.
Drawing on her experience as the CFPB's former Deputy Assistant Director for Fair Lending, Small Business Lending, and Language Access during the initial rulemaking, Elena Babinecz offered valuable perspective on the Bureau's rationale for several changes included in the 2026 final rule. She discussed what those revisions mean for covered institutions, identified areas where additional CFPB guidance will be critical, and shared practical considerations as companies begin evaluating their compliance approaches.
Owen Babcock, who represented ELFA as counsel in its litigation challenging the rule, provided an update on the judicial proceedings and the status of the litigation. The panel also explored several areas that continue to generate significant member interest, including potential safe harbors, firewall requirements, and the scope of exemptions under the final rule.
While the publication of the final rule marks an important milestone, the discussion made it clear that the work is far from complete. Members can likely expect technical resources from the Bureau. Additionally, a separate data publication rulemaking from the Bureau is anticipated in 2029. In the meantime, equipment finance companies should begin assessing their internal processes and compliance frameworks to prepare for the rule's implementation.
ELFA will continue to engage with the Bureau to raise ELFA member concerns and questions, while providing members with timely analysis and resources as additional implementation information becomes available. This webinar marked the beginning of the next phase of that effort, helping members navigate implementation with greater clarity while continuing to advocate for a regulatory framework that reflects the realities of the equipment finance industry.
