CFPB seeks feedback on implementation of Home Mortgage Disclosure Act rule

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The Consumer Financial Protection Bureau (CFPB) is seeking comments regarding the implementation of the rules of the Home Mortgage Disclosure Act (HMDA).

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The agency issued a Request for Information (RFI) in accordance with plans to review recent rule changes and assess effectiveness. The analysis would strengthen the capacity of the CFPB to maintain a fair, competitive and non-discriminatory mortgage market.

The HMDA requires lenders to report information on home loans they receive applications for, or create or buy. The public and regulators have the information they need to verify whether financial institutions are meeting the housing needs of the community, help allocate public sector investments to attract private investments in needed areas, and identify possible discriminatory lending models.

Public comments are needed to ensure that the agency can use the data collected through the HMDA rule to effectively achieve the rule’s objectives – with the focus of the CFPB being
institutional and transactional coverage; data points; new benefits related to data and disclosure requirements; and operating and compliance costs.

The CFPB noted that an HMDA report from August 2021 determined that mortgage lenders had a propensity to deny credit and charge higher interest rates to black and Hispanic applicants than to white applicants. The RFI will remain open for 60 days after its publication in the Federal Register.


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