The Consumer Financial Protection Bureau issued a proposed rule Thursday that would clarify the information mortgage lenders are required to collect and report under the Home Mortgage Disclosure Act (HMDA).
HMDA, originally enacted in 1975, was updated in 2015 under the Dodd-Frank Act with most changes effective January 2018. The proposal by the CFPB aims to help financial institutions comply with the update.
“The Home Mortgage Disclosure Act shines a much-needed spotlight on the mortgage market, which is the largest consumer financial market in the world,” said CFPB Director Richard Cordray in a press release. “Today’s proposal reflects the Bureau’s ongoing and substantive engagement with stakeholders in the marketplace, and will help industry meet its new reporting obligations.”
Among other changes including the establishment of transition rules for reporting certain loan types, the proposal issued Thursday provides clarifications, corrections and changes to the HMDA regulation, which the CFPB says will clarify certain terms such as “temporary financing” and “automated underwriting system.”
The agency is seeking comments on the proposed rule, and is open to comments for a 30-day period.
Written by Elizabeth EckerPrint Article