CFPB proposing expanded HMDA reporting
The Consumer Financial Protection Bureau (CFPB) took over enforcement of the Home Mortgage Disclosure Act (HMDA) with the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The law also required CFPB to expand the HMDA dataset to include additional loan information to help regulators spot emerging lending problems.
Now the CFPB says it will run some of its ideas for expanded HMDA data collection requirements by a panel of small businesses for feedback. The CFPB will convene a Small Business Review Panel as the next step in the rulemaking process.
Feedback is being sought from small lenders as to how data can be updated to better reflect what is happening in the market. Some of the new data that is being considered to help alert regulators to emerging problems includes: the length of the loan; total points and fees; the length of any teaser or introductory interest rates; and the applicant or borrower's age and credit score.
On Feb. 7, the bureau showed its cards on some of its ideas for expanded reporting under HMDA. CFPB also unveiled a new tool to make it easier for consumer groups and others to navigate the publicly available HMDA data.
The bureau, in coordination with the federal and state agencies represented by the Federal Financial Institutions Examination Council (FFIEC), launched a tool that provides the public easier access to information for 2007 through 2012. The public will be able to filter it. download it, create summary tables and share the results, according to the bureau.
In prepared remarks made to the press on Feb. 7, CFPB Director Richard Cordray said, "We are considering asking financial institutions to include more underwriting and pricing information, such as an applicant's debt-to-income ratio, the interest rate, the total origination charges...