Changes proposed for Home Mortgage Disclosure Act reporting are intended to help financial institutions comply with a rule finalized two years ago.
The HMDA regulation was updated in 2015 in order to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Requirements of the final rule, which mostly take effect in January 2018, are designed to improve the quality and type of data that is reported by home lenders.
On Thursday, the Consumer Financial Protection Bureau, which issued the rule,
announced a proposal that clarifies HMDA information lenders are required to collect and report.
“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,” CFPB Director Richard Cordray said in the statement.
Among a number of clarifications, technical corrections and minor changes to the HMDA regulation in the proposal is clarifying key terms like “temporary financing” and “automated underwriting system.”
In addition, the
proposal would establish transition rules for reporting certain loans purchased by financial institutions and facilitate reporting the census tract of a property using a new geocoding tool the CFPB plans to provide online.
National Association of Federally-Insured Credit Unions President and Chief Executive Officer Dan Berger issued a statement indicating that the trade group appreciates the CFPB’s clarifications.
“However, the rule still represents a huge regulatory burden for credit unions,” Berger said. “NAFCU strongly encourages the bureau to reconsider its enormous expansion of the HMDA data collection set, raise the exemption thresholds and delay implementation of this rule to give credit unions more time to prepare.”