In light of the Consumer Financial Protection Bureau’s recently finalized rule updating the reporting requirements of the Home Mortgage Disclosure Act regulation, it is now seeking public feedback on the resubmission of mortgage lending data reported under the new regulation.
In October, the CFPB finalized the rule to improve information reported about the residential mortgage market. However, this did not sit well with the market, and a lot of people in the mortgage finance and housing industry raised concerns.
A copy of all 800-plus pages of the rule, which is updating the reporting requirements of the Home Mortgage Disclosure Act, can be found here.
The rule is intended to shed more light on consumers’ access to mortgage credit. The bureau is working with other federal agencies to streamline the reporting process for financial institutions.
As a result of the rule, the number of data points that financial institutions are required to report to federal regulators increases in order to include new information such as property value, the term of the loan and the duration of any teaser or introductory interest rates.
The CFPB explained that this caused some stakeholders to ask whether the bureau would adjust its mortgage lending data resubmission guidelines to reflect the expanded data that will be submitted under the new rules.
Bringing the industry to this point and the CFPB seeking public feedback.
Here’s the fine print for what the CFPB is asking for:
Specifically, the bureau’s notice published today asks for public comment on the Bureau’s use of resubmission error thresholds and how they should be calculated. The notice also invites comments on whether the thresholds should vary with the size of the submission or kind of data, as well as the consequences for exceeding a threshold. Other topics addressed in the notice include how the bureau conducts its mortgage lending data integrity reviews and any technological or other changes that might be made to the data editing and collection process to help reduce errors.
“The Home Mortgage Disclosure Act is a valuable asset in helping detect trends and problem areas in the nation’s mortgage market, and the recent improvements to the rule will foster better understanding of that market,” said CFPB Director Richard Cordray.
“With today’s request for information we are seeking feedback from stakeholders on how best to ensure the accuracy and reliability of mortgage lending information,” said Cordray.
Here is a link to the CFPB’s request for information.