Thu, Dec 21, 2017
The bureau has announced plans to revisit Home Mortgage Disclosure Act (HMDA) regulations in 2018 that govern discriminatory lending practices. In a statement, the CFPB stated it would not fine or penalize mortgage lenders that submit inaccurate data about borrowers unless the errors are "material."
HMDA, requires lenders to report information about their borrowers, including race, ethnicity, sex, income and age. The Dodd-Frank Wall Street Reform and Consumer Protection Act expanded data reporting requirements to include information regarding loan underwriting and pricing following the housing collapse.
"The Bureau recognizes the significant systems and operational challenges needed to meet the impending requirements under the rule," CFPB said in the statement. "The bureau expects that any supervisory examinations of 2018 HMDA data will be diagnostic, to help institutions identify compliance weaknesses, and will credit good-faith compliance efforts."
Beginning on January 1, 2018, financial institutions will submit HMDA data collected in 2017 and beyond using the Bureau’s new online platform.
The CFPB also will publish a proposed rule to reconsider aspects of the 2015 HMDA regulation issued by former CFPB Director Richard Cordray.
"The rulemaking may re-examine lending-activity criteria that determine whether institutions are required to report mortgage data. The rulemaking may also look at adjusting the new requirements to report certain types of transactions," the CFPB wrote. "Finally, the rulemaking may reassess the additional information that the rule requires beyond the new data points specified under the Dodd-Frank Act."