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CFPB Issues HMDA Compliance Bulletin

Robert E. Bostrom
Greenberg Traurig, LLP - New York Office

Peter L. Cockrell
Greenberg Traurig, LLP - McLean Office

Brett M. Kitt
Greenberg Traurig, LLP - Washington Office

Gil Rudolph
Greenberg Traurig, LLP - McLean Office

J. Scott Sheehan
Greenberg Traurig, LLP - Houston Office

October 18, 2013

Previously published on October 14, 2013

In conjunction with the CFPB’s HMDA actions discussed above, the CFPB issued Bulletin 2013-10 on October 9th. 1 The Bulletin sets forth the Bureau’s expectations that lenders will implement compliance programs designed to ensure that they collect and report accurate HMDA data in a timely manner. The Bulletin outlines the components of an effective HMDA compliance management system, including the following:

  • Comprehensive policies, procedures and internal controls to ensure ongoing compliance;

  • Comprehensive and regular internal, pre-submission HMDA audits that are appropriate to the size and complexity of the institution;

  • Reviews of any relevant regulatory changes;

  • Reporting systems that are appropriate given the volume of the institution’s lending operations;

  • Assignment of one or more individuals to oversee HMDA compliance;

  • Appropriate, sufficient and periodic employee training to ensure compliance;

  • Effective corrective action in response to previously identified deficiencies; and

  • As appropriate, board and management oversight.

The Bulletin also provides a non-exclusive list of factors the CFPB considers relevant when determining whether to pursue an enforcement action with respect to HMDA violations:

  • The size of an institution’s HMDA LAR and the observed error rate;

  • Whether an institution self-identified its HMDA errors outside the context of an active examination or examination-related activity, and independently took appropriate corrective action; and

  • If the institution has previously been on notice regarding high HMDA LAR errors, the extent to which those error rates have changed.

The CFPB also released its HMDA Resubmission Schedule and Guidelines,2 which establish thresholds for determining whether an institution must resubmit data where errors are discovered during a HMDA data integrity examination. The new Resubmission Schedule and Guidelines apply to all HMDA data integrity reviews initiated on or after January 18, 2014.

These HMDA developments follow the CFPB’s recent release of a new online tool to access HMDA data. The stated purpose of the tool is to enable “greater transparency by helping inform people of trends in their local mortgage markets.” Foreshadowing the potential uses of the tool, however, the CFPB added in its press release that the “public information is important because it helps show whether lenders are serving the housing needs of their communities; it gives public officials information that helps them make decisions and policies; and it sheds light on lending patterns that could be discriminatory.”

1 CFPB Bulletin 2013-10.

2 The CFPB’s HMDA Resubmission Schedule and Guides.


The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.

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