- CFPB Considers Expanding HMDA Data Reporting Requirements
- February 14, 2014 | Author: Robert L. Carothers
- Law Firm: Jones Walker LLP - Mobile Office
On February 7, 2014, the Consumer Financial Protection Bureau ("CFPB") announced that it is considering expanding the types of information that banks have to report under the Home Mortgage Disclosure Act ("HMDA"). It stated that expanding the types of information collected would make it easier to identify new consumer protection concerns as they develop and to assess whether consumers have equal and fair access to mortgage credit.
Under current rules, certain banks must report certain data with respect to residential mortgage loans, including the name of the lender, loan amount, the type and general location of the property, and the race, ethnicity, and gender of the applicant. The Dodd-Frank Act mandated that certain additional information be reported, including total points and fees, length of teaser rates, and the borrower's age and credit score. The CFPB is considering whether to expand the types of data collected to also include, among other items, the debt-to-income ratio, interest rate, origination charges, an explanation of rejected loan applications, and whether the loan is a "qualified mortgage" under the Ability-To-Repay rule.
The CFPB announced that the first step in the process will involve convening a Small Business Review Panel (which is required under the law) to get the perspective of community banks, credit unions, and other small lenders that may be affected and it will also reach out to consumer groups. It said it planned to issue a proposed rulemaking sometime later this year.