Fair Lending Continues with CFPB Considering Changes to HMDA Data
March 2014

Fair Lending and HMDA Data

Today the CFPB announced new information they are considering requiring lenders to collect for Home Mortgage Disclosure Act (HMDA) data. This announcement is one of many that the CFPB has released in regards to their increased focus on Fair Lending regulations.

So what exactly is being considered?

The CFPB is considering changes to what information lenders will be required to report about mortgages,
as well as changes to improve the reporting process.

The CFPB is asking for feedback on the new requirements, including:

  • Total points and fees, and rate spreads
  • Teaser rates, prepayment penalties, and non-amortizing features
  • Property Value and location information
  • Age and credit score

The CFPB is also asking for feedback on other data points that are under consideration. These include:

  • Mandatory reporting of reasons for application denial
  • DTI ratio of the borrower(s)
  • QM status of the loan
  • CLTV ratio
  • Automated underwriting results
  • Additional points and fees
  • For loans secured by more than one dwelling, report whether the property is restricted for affordable housing
  • If the loan is for a manufactured home

The Bureau is also asking for feedback on streamlining and improving the reporting process.

These new regulations are requiring more time and effort from all types of financial institutions to focus on the data they collect. How each institution will meet these new requirements is an ongoing effort.

How are you meeting these new requirements?
Are you also using this new data to help your institution make better decisions?
Let us know below.

*Read the full announcement here

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