The Consumer Financial Protection Bureau (CFPB) announced Thursday that it will allow advance collection of 2017 Home Mortgage Disclosure Act (HMDA) disaggregated ethnic and racial data categories, though such collection is not mandatory until Jan. 1, 2018, under the new HMDA regulations. The notice comes as part of other information released about HMDA and the Uniform Residential Loan Application (URLA).
The bureau believes the advance collection will allow creditors to begin to implement the regulatory changes and improve compliance processes before the new requirements become effective, if they so choose.
This may be true for those creditors that are ready to permit mortgage applicants to self-identify using disaggregated ethnic and racial categories before Jan. 1, 2018.
The notice also serves to indicate the CFPB’s approval of the Federal Housing Finance Agency’s revised and redesigned URLA, which was issued Aug. 23.
The CFPB issued its HMDA final rule in October 2015, and CUNA warned that the new requirements may place additional compliance burdens on credit unions.
For more information about Thursday’s notice, see CUNA’s Removing Barriers Blog.