The Consumer Financial Protection Bureau issued a proposal to facilitate compliance with the 2015 updates to the Home Mortgage Disclosure Act rule.
The proposed changes clarify the information financial institutions are required to collect and report about their mortgage lending.
Through public outreach and engagement, the CFPB has identified areas where clarification of the 2015 HMDA Final Rule would help financial institutions comply with the updates, which largely take effect in January 2018.
The proposal contains a number of clarifications, technical corrections and minor changes to the HMDA regulation. These include clarifying certain key terms, such as “temporary financing” and “automated underwriting system.” The proposal would also, for example, establish transition rules for reporting certain loans purchased by financial institutions. Another proposed change would facilitate reporting the census tract of a property, using a new geocoding tool the CFPB plans to provide online.
“The Home Mortgage Disclosure Act shines a much-needed spotlight on the mortgage market, which is the largest consumer financial market in the world,” said CFPB Director Richard Cordray. “Today’s proposal reflects the Bureau’s ongoing and substantive engagement with stakeholders in the marketplace, and will help industry meet its new reporting obligations.”