CUNA President/CEO Jim Nussle wrote in support of a bill that would call for a study of the data required by the Consumer Financial Protection Bureau (CFPB) under the Home Mortgage Disclosure Act (HMDA). The Homeowner Information Privacy Protection Act (HIPPA) was introduced by Rep. Randy Hultgren (R-Ill.).
“Your legislation would require the Government Accountability Office (GAO) to complete a study on the data the CFPB is requesting from lenders. Studying the impact of increased data points will ensure that consumer data remains secure and not unnecessarily disclosed,” Nussle wrote. “It is important to do the study immediately, as credit unions have already begun the process of moving towards implementation of the rule. The GAO study will help to identify and reduce the risk of fraud or identity theft associated with the rule.
“Furthermore, assessing the impact of increased data reporting will ensure that credit unions, which did not cause the financial crisis, are not overly burdened with unneeded data reporting,” Nussle added.
CFPB’s amendments to the HMDA rule significantly increased the amount of data mortgage lenders, including credit unions, are required to provide. While the Dodd-Frank Act outlines 17 required data points, CFPB requires more than double that.
“The final CFPB rule imposes significant burden on credit unions beyond what Congress envisioned when enacting the Dodd-Frank Act,” Nussle wrote. “Credit unions have already undertaken significant expense to bring their systems into compliance with a rule that does very little, if anything, to provide credit union members with additional protection. Further, the rule does not significantly enhance the ability of the CFPB to oversee the industry.”
CUNA backed several technical changes to HMDA proposed by the bureau, and urged CFPB to incorporate additional relief measures in a letter sent earlier this month.