CFPB Fires HMDA Warning Shots at 44 Lenders

Consumer Financial Protection Bureau (CFPB) chief
Richard Cordray announced on Thursday that his agency had issued warning
letters
regarding reporting under the Home Mortgage Disclosure Act (HMDA) to 44
financial institutions.  The letters
advised the companies, which included both mortgage lenders and mortgage
brokers that they appear to be in violation of HMDA requirements.

CFPB
identified the 44 companies through a review of available bank and nonbank
mortgage data. The letter reads in part, “While we have not made a
determination that [Name of Company] is in violation of HMDA filing
requirements, we urge you to review your practices to ensure that you comply
with all relevant laws. You may find it helpful to review the text of HMDA,
Regulation C, and CFPB guidance documents available on the CFPB’s website. We encourage
you to advise us of the steps you have taken or will take to ensure compliance
with the laws identified above or, if you believe these legal requirements do
not apply to you, to provide an explanation.”

HMDA was
originally enacted in 1975 and requires many institutions to collect data about
their housing-related lending including home purchase mortgages, refinancing,
and home improvement loans which they originate or for which they receive applications
and to report them to their appropriate federal regulators and make the data
available to the public.  This will allow
the public and regulators to determine whether the institutions are serving the
housing needs of their community, identify possible discriminatory patterns and
assist in the appropriate provision of public resources to attract private
investment where it is needed.

The rules
updating reporting requirements under HMDA were finalized by CFPB in October of
last year.  Most provisions of the final
rule will go into effect on January 1, 2018.

“Financial
institutions that fail to report mortgage information as required make it
harder to identify and address discriminatory lending,” Cordray said.  “No mortgage lender that is required to
report their loan data can avoid this responsibility.”

Article source: http://www.mortgagenewsdaily.com/10272016_cfpb_rulemaking.asp

Leave a Reply

WP Facebook Auto Publish Powered By : XYZScripts.com
Bunk Beds