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CFPB Proposes Rule to Improve Information about Access to Credit in the Mortgage Market
Monday, July 28, 2014 6:35 AM

Last week, the Consumer Financial Protection Bureau proposed a rule to improve information reported about the residential mortgage market. The rule would shed more light on consumers’ access to mortgage credit by updating the reporting requirements of the Home Mortgage Disclosure Act (HMDA) regulations. The CFPB says it aims to simplify the reporting process for financial institutions.

The announcement is part of CFPB’s public rulemaking process to improve HMDA that began in February when the CFPB convened a panel of small businesses to provide feedback on possible changes to the regulations. The agency is proposing to improve the quality and type of HMDA data as required by the Dodd-Frank Act. The Bureau is also looking at ways to make submission of data easier for lenders and to improve the user experience in accessing the public data.

To provide better information about residential mortgage credit, the CFPB is proposing changes to the rules that establish what data financial institutions are required to provide. The CFPB wants to improve the quality of HMDA data in today’s housing market. The proposed changes include improving market information and monitoring access to credit.

In developing the proposed rule, the CFPB reviewed the HMDA reporting requirements. The agency is looking to simplify these requirements for financial institutions. The CFPB aims to:

  • Standardize the reporting threshold
  • Ease reporting requirements for some small banks
  • Align reporting requirements with industry data standards
  • Improve the electronic reporting process
  • Improve data access

The proposed rule will be open for public comment through Oct. 22, 2014.

A copy of the proposed rule, which includes information on how to submit comments, is available on CFPB’s website. A copy of the final report of the Small Business Review Panel is also available online.