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.