The Consumer Financial Protection Bureau is asking for input on rules implementing the Home Mortgage Disclosure Act as it considers a review of their effectiveness.
The CFPB finalized changes to the HMDA regulations in 2015, expanding the types of data reported by lenders to improve overall market information and help with monitoring for fair lending compliance. The 2015 rule also aligned requirements with industry data standards, significantly enhancing the technological interface, and easing requirements for some small banks and credit unions.
The CFPB is seeking comments on its plans to assess the effectiveness of the HMDA Rule, specifically:
- Institutional coverage and transactional coverage
- Data points
- Benefits of the new data and disclosure requirements
- Operational and compliance costs
The Request for Information will remain open for comments until January 21.
The RFI follows an August 2021 CFPB report, which found that mortgage lenders more often deny credit and charge higher interest rates to Black and Hispanic applicants than they do to white applicants, and a July 2021 CFPB analysis of mortgage lending patterns within the Asian American Pacific Islander communities which showed some segments of AAPI communities showing similar mortgage denial rates.