The Consumer Financial Protection Bureau (CFPB) is seeking input regarding Home Mortgage Disclosure Act (HMDA) rule implementation.
The agency has issued a Request for Information (RFI) in accordance with plans to review recent changes to the rule and evaluate effectiveness. The analysis would strengthen the CFPB’s ability to maintain an equitable, competitive and non-discriminatory mortgage market.
The HMDA requires lenders to report information regarding home loans for which they receive applications, or they originate or purchase. The public and regulators have the information at their disposal as a means of monitoring whether financial institutions are serving community housing needs, aid in distributing public-sector investment to attract private investment in needed areas, and identify possible discriminatory lending patterns.
Public feedback is needed to ensure the agency can use the data collected via the HMDA Rule to effectively meet the rule’s goals – with the CFPB’s concentration being
institutional coverage and transactional coverage; data points; new data and disclosure requirement benefits; and operational and compliance costs.
The CFPB noted an August 2021 HMDA report determined mortgage lenders had a propensity to deny credit and charge higher interest rates to Black and Hispanic applicants than white applicants. The RFI will remain open for 60 days after publication in the Federal Register.