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Friday, July 25, 2014

CFPB Proposes HMDA Changes

The Consumer Financial Protection Bureau yesterday proposed several changes to Regulation C, which implements the Home Mortgage Disclosure Act. The bureau is seeking to add several new categories for reporting by lenders and make changes in how the data is reported.

In keeping with the Dodd-Frank Act, the rule would require lenders to report for the first time property value, loan term, total points and fees, the duration of teaser rates and the age and credit score of the applicant or borrower. The CFPB also proposed that lenders submit data on an applicant’s debt-to-income ratio, interest rate and total points charged, which the bureau said would help it evaluate the impact of its mortgage rules. With only a few exceptions, all dwelling-secured loans would be subject to the rule.

The CFPB proposed a single threshold -- 25 mortgages originated annually -- at which banks and nonbanks become subject to the rule. It said it would align the HMDA reporting requirements with industry data standards and improve the electronic reporting process. The bureau also said it would seek to improve its public, online HMDA database that was launched in February.

Comments are due Oct. 22. ABA will evaluate the proposal and provide feedback.

Read the proposed rule.

For more information, contact ABIA’s  Kevin McKechnie.