The CFPB is establishing a panel of small businesses to provide feedback on potential changes to mortgage information reported under the Home Mortgage Disclosure Act. Currently, credit unions above the HMDA reporting threshold report the name of the lender; the type and general location of the property; the race, ethnicity and sex of the applicant. Credit unions also report the loan amount and whether the loan is for a purchase, refinance or home improvement loan.
The Dodd-Frank Act directs the CFPB to expand their HMDA data collection to include additional information. The CFPB is seeking feedback from the panel on the potential inclusion of the length of the loan; total points and fees; the length of any teaser or introductory interest rates; the applicant or borrower’s age and credit score; interest rate; the total origination charges; total discount points of the loan; “Qualified Mortgage” status, and debt-to-income ratio.
The CFPB says this information will assist regulators to investigate and identify troubled areas in the mortgage market, including whether financial institutions are making loans that are expensive or unsuitable for borrowers.
Understanding the cumbersome nature for financial institutions to collect and submit HMDA data, the CFPB is reviewing different types of reporting requirements and seeking feedback from the panel on the different options.
For more information, the CFPB has published a Fact Sheet, which can be found here.