The Consumer Financial Protection Bureau (CFPB) issued a proposal designed to facilitate compliance with the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. Initial CUNA analysis suggests the changes will be favorable for credit unions, and CUNA will continue to examine the proposal for potential unintended consequences.
The proposal would clarify information financial institutions are required to collect and report about mortgage lending. Specifically, it contains a number of clarifications, technical corrections and minor changes to the HMDA regulation.
These include clarifying certain key terms, such as “temporary financing” and “automated underwriting system.”
The proposal would also, for example, establish transition rules for reporting certain loans purchased by financial institutions. Another proposed change would facilitate reporting the census tract of a property, using a new geocoding tool CFPB plans to provide online.
Comments will be accepted for 30 days after the proposal is published in the Federal Register, which should be in the coming days.
More information is available at CUNA’s Removing Barriers Blog.