CFPB announced Thursday, Dec. 21, that it will revisit HMDA regulations in 2018 that govern discriminatory lending practices. CFPB also said 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. Dodd-Frank expanded data reporting requirements to include information regarding loan underwriting and pricing after the housing collapse.
“The Bureau recognizes the significant systems and operational challenges needed to meet the impending requirements under the rule,” CFPB said in a 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.”
CFPB also will publish a proposed rule to reconsider aspects of the 2015 HMDA regulation issued by 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.”
See the full statement here.