WASHINGTON (2/8/14)--A new small business panel to help consider Home Mortgage Disclosure Act (HMDA) changes, and new resources to help users navigate publicly available HMDA data were announced by the Consumer Financial Protection Bureau on Friday.
Under HMDA, financial institutions with total assets of more than $43 million that have home or branch offices in defined metropolitan statistical areas must collect certain mortgage loan data and report it to federal regulators.
CFPB Director Richard Cordray on Friday said the bureau is seeking feedback on how the HMDA reporting process can be improved, and new requirements that would more accurately capture access to credit in the mortgage market.
A Small Business Regulatory Enforcement Fairness Act (SBREFA) panel has been assembled to consider these and other HMDA issues.
Potential HMDA reporting additions discussed by the panel will include:
- Total points and fees, and rate spreads for all loans;
- Riskier loan features including teaser rates, prepayment penalties, and non-amortizing features;
- Lender information, including a unique identifier for the loan officer and the loan;
- Property value and improved property location information;
- Mandatory reporting of denial reasons;
- Qualified mortgage status of loans; and
- Combined loan-to-value ratio.
The first meeting of the SBREFA panel is scheduled for March, and an advance notice of proposed rulemaking on HMDA changes will likely be issued this year, Cordray said. Many of the proposed data points under consideration are required by the Dodd-Frank Act, but many are not. CUNA will raise this as a point of concern with the agency.
In 2012, 7,400 financial institutions provided data on 18.7 million applications and loans. According to the CFPB, data supplied includes:
- The name of the lender;
- The type and general location of the property;
- The race, ethnicity, and sex of the applicant;
- The loan amount; and
- Whether the loan is for purchasing a home, refinancing an existing mortgage, or home improvement.
The CFPB has produced a new data tool that will help users examine HMDA information filed between 2007 and 2012. Users will be able to filter information by geographical location, loan characteristics, property type and more. They will also have the option of comparing refinances, home purchases and home improvement loans through summary tables, and can then download these tables and data in the format of their choice.
Users will be able to save and share their results on a website or through social media.
Use the resource link for more.