CFPB wants lenders to disclose more mortgage data

The Consumer Financial Protection Bureau wants to expand its collection of residential mortgage data.

The Consumer Financial Protection Bureau wants to expand its collection of residential mortgage data. Improving the data collection process required by the Home Mortgage Disclosure Act is also a goal, the bureau said.

As the first step of the process, the bureau will convene a Small Business Review Panel to seek feedback on what HMDA information is collected and how it is collected.  

Through the panel, the CFPB will question lenders on expanded reporting requirements specified by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act directs the CFPB to collect specific new information on the length of the loan, total points and fees, the length of any teaser or introductory interest rates, and the applicant or borrower’s age and credit score.

The panel also will be asked about increased collection of underwriting, pricing and credit access information, including a possible requirement that lenders explain rejected loan applications.

The CFPB also will seek feedback on ways to reduce the burden on lenders by streamlining data collection, standardizing the reporting threshold and improving data entry.

The CFPB also unveiled a new tool aimed at improving access to currently available public HMDA data. The tool will allow uses to filter and download data, create summary tables and share the results through documents or social media.

As part of current HMDA requirements, institutions must report the name of the lender; the type and general location of the property; and the race, ethnicity, and sex of the applicant. Reported HMDA data also include information about the loan amount and whether the loan is for purchasing a home, refinancing an existing mortgage, or home improvement.

In 2012, approximately 7,400 financial institutions reported mortgage data from approximately 18.7 million applications and loans.

“Today we are asking for small businesses to provide feedback on ideas to improve the Home Mortgage Disclosure Act, which monitors the largest consumer financial market in the world,” CFPB Director Richard Cordray said. “We want there to be better information, better collection, and better access to this important information.”

Fredrikson & Byron Law