The Independent Community Bankers of America (ICBA) recently said that increased data-collection and data-reporting mandates to the Home Mortgage Disclosure Act requirements could negatively impact community banks.
ICBA said the new mandates — scheduled to begin Jan. 1, 2018 — would drive many community banks out of the residential mortgage market unless they are changed. ICBA called on the Consumer Financial Protection Bureau (CFPB) to mitigate the impact of the upcoming changes.
“These changes are just the latest in an unprecedented number of new and amended consumer regulatory requirements put into effect over the past several years,” ICBA Assistant Vice President and Regulatory Counsel Joe Gormley wrote in a letter to the CFPB. “ICBA understands that some of this change was required by statute, but we strongly urge the CFPB to mitigate the impact of the new HMDA requirements on community banks.”
Beginning Jan. 1, many community banks will be required to provide information on 48 data categories spread over 110 data fields.
ICBA officials said it is concerned that the expanded mandates will force community banks to exit the mortgage market due to the additional regulatory burden, thereby reducing consumer choice.
To mitigate the impact, ICBA urged the CFPB to make a few changes. ICBA would like the CFPB to make the reporting of new data optional and increase reporting thresholds to exempt more small-volume lenders. ICBA also said it should said exclude reporting for commercial loans and establish reasonable data-resubmission guidelines. The new mandates should also address privacy concerns, ICBA said.