Legislation that would delay the implementation of new Home Mortgage Disclosure Act (HMDA) requirements until their impact can be studied has the full support of CUNA. The Homeowner Information Privacy Protection Act (H.R. 4993) was introduced by Rep. Randy Hultgren (R-Ill.), and would delay implementation of the rules until the Government Accountability Office has completed a study on the data Consumer Financial Protection Bureau is requesting from lenders.
“The Consumer Financial Protection Bureau recently finalized amendments to Regulation C that would significantly increase the amount of data mortgage lenders, including credit unions, will be required to provide,” wrote CUNA President/CEO Jim Nussle. “The rule will also almost certainly lead to mortgage credit and other credit union services being more expensive and possibly less available to our members, your constituents.”
The CFPB’s new requirements include requiring credit unions that have originated 25 or more closed-end mortgage loans, or 100 or more open-end loans, to report dozens of data points in addition to what is required by Dodd-Frank, which calls for only 17.
“When implemented, the final CFPB rule will impose significant burden on credit unions beyond what Congress envisioned when enacting the Dodd-Frank Act,” Nussle wrote. “Credit unions will undertake 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.”
CUNA is concerned that without a study, there will be risk of fraud and identity theft. Further, a study on the impact of HMDA reporting would ensure that credit unions aren’t overly burdened with unneeded data reporting.