The Consumer Financial Protection Bureau (CFPB) Wednesday finalized CUNA-supported changes to its Equal Credit Opportunity Act (ECOA) regulations, while issuing a separate proposal seeking input on proposed Home Mortgage Disclosure Act (HMDA) policy guidance. CUNA supported the ECOA changes in its comment letter sent in May, saying the changes would provide a measure of regulatory relief.
Specifically, the ECOA final rule makes changes to Regulation B (which implements ECOA) to provide compliance flexibility for mortgage lenders. Lenders will not be required to maintain different practices depending on their loan volume or other characteristics.
This allows more mortgage lenders to adopt application forms that include expanded requests for information regarding a consumer’s ethnicity and race, including the revised Uniform Residential Loan Application.
The HMDA proposed policy guidance issued Wednesday describes the loan-level HMDA data the bureau proposes to make available to the public starting in 2019. It also proposes modification to the data to protect consumer privacy.
These modifications include excluding certain data fields from what is shared publicly, such as property address and the applicant’s credit score. It would also reduce precision in certain information, such as presenting an age range instead of an applicant’s specific age.
The comment period on the proposed guidance will be 60 days after it is published in the Federal Register, which is expected in the coming days.
Additional information can be found in CUNA’s Removing Barriers Blog.