CFPB's HMDA Data Changes Could Increase Litigation

By: Ellen R. Marshall
– DS News

Seeking to "gain greater insight into issues about access to credit," the Consumer Financial Protection Bureau (CFPB) announced the launch of a rulemaking process to change reporting requirements under the Home Mortgage Disclosure Act (HMDA). The new reporting requirements could have unintended consequences for both mortgage servicers, and legal teams who assess discriminatory lending practices.

"[T]hese efforts are about better information, better collection, and better access to mortgage loan data," said CFPB Director Richard Cordray in a press call. He explained that the agency was tasked pursuant to the Dodd-Frank Act to improve HMDA reporting.

The Dodd-Frank Act specified new data points to be collected and reported: namely, the total points and fees of the mortgage; property value and improved property location information; the length of any teaser interest rates, prepayment penalties, and non-amortizing features; lender information, including a unique identifier for the loan officer and the loan; and the borrower's age and credit score.

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