CFPB Proposes Rule to Update Mortgage Data Reporting

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HMDA, originally enacted in 1975, was updated in 2015 under the Dodd-Frank Act with most changes effective January 2018.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.”

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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. 

View the proposed rule

Written by Elizabeth Ecker

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  • Good afternoon all,

    I read the 150 page proposal, I did pick up a degree of clarification on certain areas I was confused about but I also wound up being confused with many other areas of the proposal, what else is new, right?

    Everyone out there reading my comment, Please read the proposed clarification rule, see what you think. I know I would value other comments on it and I am sure others will as well.

    To much regulation, to much interference. Sure we need clarification on the information mortgage lenders are required to collect and report under HMDA, this is very critical. However, when I read the proposal, I have certain questions answered but new questions pop up.

    To top it off, there are many ambiguity’s in the proposal, I may be wrong in how I am interpreting what I am reading? This is why I welcome other thoughts and opinions on the proposal.

    Happy Easter to all of you and your families!

    John Smaldone
    http://www.hanover-financial.com

  • So which two regulations does the CFPB propose to eliminate with the implementation of this new regulatory burden, per Trump’s Executive Order?

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