The HMDA requires many lenders to report information about mortgages they originate or purchase so that regulators can assess whether lenders are serving local housing needs, among other indicators. The HMDA was updated in 2015, per the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposal would clarify those changes, specifically key terms such as “automated underwriting system” and “temporary financing” and some reporting requirements, in an effort to improve compliance.
“The Home Mortgage Disclosure Act shines a much-needed spotlight on the mortgage market, which is the largest consumer financial market in the world,” says Richard Cordray, director of the CFPB. “[This] proposal reflects the Bureau’s ongoing and substantive engagement with stakeholders in the marketplace, and will help industry meet its new reporting obligations.”
Members of the industry and the public are encouraged to submit feedback on the proposal to the CFPB. The proposal can be viewed here.