From: Mondaq
Article by Damon C. Barhorst and Robert S. Niemi |BakerHostetler
On Oct. 27, 2016, the Consumer Financial Protection Bureau (CFPB) warned 44 unnamed mortgage lenders and brokers that they may be in violation of data reporting requirements of the Home Mortgage Disclosure Act (HMDA).
Enacted in 1975, HMDA requires financial institutions to collect data about housing-related lending activity – including home purchase loans, home improvement loans and home refinancing loans that they originate or purchase or for which they receive applications – and report the information to the appropriate federal agency. The data is then used by regulators, including the CFPB, and the public to monitor lending practices nationwide and identify patterns of discriminatory lending behavior. Additionally, the data is used to ensure financial institutions are serving the housing needs of their communities and attracting private investment to areas of need.