CFPB Seeks to Modify HMDA Data Collection; Raises Privacy Concerns

Editor’s Note: The Paperwork Reduction Act comment request section of the proposal begins of page 447 of the 534 page proposed rule. The CFPB is not permitted to collect any of the data without OMB approval.

From: Mortgage Daily News

by: Jann Swanson

Public comments are being requested a a new proposed rule for collecting data under the Home Mortgage Disclosure Act (HMDA). The Consumer Financial Protection Bureau (CFPB) said the new rule includes changes the could help in shedding more light on consumers’ access to mortgage credit. The Bureau said it also aims to simplify the reporting process for financial institutions.

HMDA, enacted in 1975, requires that many lenders report information regarding home loans for which they receive applications or originate or purchase. The information is available to both the public and to regulators who can use it to monitor whether financial institutions are serving the needs of their communities and to identify discriminatory lending patterns. The Dodd Frank Wall Street Reform and Consumer Protection Act authorized CFPB to expand the HMDA dataset to gather additional information that might be helpful to better understand certain aspects of the market.

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