Monday, February 10, 2014

Reporting Requirements for HMDA Filers to Increase

Banks and credit unions that are HMDA (Home Mortgage Discloure Act) filers are going to see an increase in their reporting burden.

In prepared comments on Friday, February 7, Consumer Financial Protection Bureau (CFPB) Overlord Director Richard Cordray stated that the Dodd-Frank Act requires lenders to collect and report on specific new information as part of the HMDA process. The new information to be collected and reported by HMDA filers include: the total points and fees; the term of the loan; the length of any teaser interest rates; and the borrower’s age and credit score.

But Cordray did not stop there.

He stated that the agency is contemplating requiring lenders to collect more information about underwriting and pricing. For example, the CFPB may ask lenders to gather information on the applicant’s debt-to-income ratio, the interest rate, the total origination charges, and the total discount points of the loan.

In addition, the agency is thinking about requiring lenders to explain why they rejected a loan application and whether the lender considered the loan to be a Qualified Mortgage.

Read Cordray's speech.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.