Automation provides a wealth of benefit to any manual process, inlcuding speed (file reviews in under 5 minutes), accuracy (99% for data validation) and traceability (audit trail of defects), to name a few. But, in the case of HMDA, lenders are often surprised to find that it brings three unique value-adds to their reporting process. Automation can eliminate “check the…
The CFPB is welcoming the new year with a change of heart on the collection of the new HMDA data. According to Acting Secretary Mulvaney, CFPB will offer lenders a safe harbor from enforcement action arising from reporting errors for the new 2018 data. A big win for lenders! Further, according to Mulvaney, the CFPB plans to reduce the burdens…
Better late than never, I guess. The Community Home Lenders Association sent a letter to acting CFPB Director Mulvaney seeking a delay in implementation of the new HMDA data collection and reporting requirements. That’s like betting on a long shot. They believe the new requirements are an unfair burden on small independent lenders. Further, they want a safe harbor from…
The MBA, along with other mortgage and banking industry trade groups, are challenging CFPB’s ‘Proposed Guidance’ for handling the disclosure of HMDA data. The CFPB proposes to exclude certain loan-level data points, modify other data points prior to disclosure, and disclose other information without modification. The trade groups say the disclosure of information will put the consumer at risk. Consumers…
More lenders are realizing that HMDA data can be a benefit in identifying new markets and paths to increase business in present markets. It will also help to identify competitors doing business in the same markets and the products and communities they serve. With new data being collected, this information will become even more valuable. Lenders who pay attention to…
I hope by now everybody knows or should know, that CFPB has increased the reporting requirements for data under the Home Mortgage Disclosure Act (HMDA). Even some people outside of our mortgage lending arena have asked me about it. Go figure. Effective with loan action dates in 2018, lenders need to report 48 loan data elements to CFPB for each…
