Federal regulators of financial institutions have issued new examination procedures for compliance with the Home Mortgage Disclosure Act.
On Tuesday, the
Federal Financial Institutions Examination Council issued HMDA examiner transaction testing guidelines to help assess the accuracy of the HMDA data reported by financial institutions.
FFIEC’s guidelines come ahead of the January 2018 implementation date for mortgage lenders to complete new fields in their HMDA reporting.
The council consists of the
Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corp., National Credit Union Administration, Office of the Comptroller of the Currency and Consumer Financial Protection Bureau.
A
notice published by the CFPB provides a simple breakdown of the new guidelines.
According to the bureau, the guidelines eliminate
the file error resubmission threshold under which a regulated entity would be required to correct and resubmit its entire Loan Application Register.
They also establish allowable tolerances for certain data fields for the field error resubmission threshold.
In addition, the guidelines raise the field resubmission threshold to
10 percent for financial institutions with Loan Application Register counts of no more than 100. Many of the institutions with field counts this low are community banks and credit unions.
“This move by the federal banking regulators signals an acknowledgment that community banks maintain strong capital positions and high-quality balance sheets and should not be subjected to overly burdensome standards meant to reign in Wall Street excesses,” the Independent Community Bankers of America said in a written statement.
