CFPB Releases Proposal to Clarify Mortgage Data Rule
Tue 25 Apr, 2017 / by McIntyre & Lemon / Client Alerts
04/25/17 – The Consumer Financial Protection Bureau (CFPB) has issued a proposal to facilitate compliance with the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule.
HMDA, which was originally enacted in 1975, requires many lenders to report information about the home loans for which they receive applications or that they originate or purchase.
Through public outreach and engagement, the CFPB has identified opportunities to clarify parts of the 2015 HMDA Final Rule, which would help financial institutions clarify the information they are required to collect and report about their mortgage lending. Most of the updated requirements take effect in January 2018, and the industry is working to bring operations into compliance.
The proposal contains a number of clarifications, technical corrections, and minor changes to the HMDA regulation. These include clarifying certain key terms, such as “temporary financing” and “automated underwriting system.” The proposal would also establish transition rules for reporting certain loans purchased by financial institutions. Another proposed change would facilitate reporting the census tract of a property, using a new geocoding tool the CFPB plans to provide online.
The CFPB invites the public to submit written comments on the proposal. The proposal will be open for public comment until May 25, 2017.