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Friday, January 8, 2016

CFPB Takes Second Look at Its Tolerance Levels for HMDA Errors

The Consumer Financial Protection Bureau is seeking feedback on whether it needs to change its rules that determine when lenders must resubmit Home Mortgage Disclosure Act reports.

The CFPB finalized a rule in October that requires lenders to collect more information from borrowers to satisfy tougher mortgage-reporting requirements. Regulators mine HMDA data to identify possible discriminatory lending patterns. The rule is scheduled to take effect in 2018.

The CFPB released a seven-page request for information that contains a dozen questions that lenders might consider when providing feedback. The questions engage lenders to consider whether systemic errors should be treated differently, and if any omission of data automatically requires a correction and resubmission. The CFPB also wants lenders to comment on what kinds of errors might be allowable in the HMDA data but still go uncorrected.

Read more.

See the request for information.