The Consumer Financial Protection Bureau recently issued a "Request for Information Regarding Home Mortgage Disclosure Act Resubmission Guidelines." The Home Mortgage Disclosure Act was enacted in 1975 and requires covered depository and nondepository institutions to collect and publicly disclose information about applications for, originations of, and purchases of home purchase loans, home improvement loans, and refinancing.
The October 2015 revisions to Regulation C – the implementing authority of the HMDA – updated the reporting requirements, and the statute now requires these covered lenders to provide information for a variety of new data points including age, credit score, property value, loan term, and interest rate. Covered institutions will be required to begin collecting this new information in 2018.
Once data is reported to the CFPB, the CFPB conducts a review to ensure the accuracy of the information; it also has the authority to request that the institutions correct and resubmit data based on a percentage of the submissions reviewed that identify errors. With the October 2015 amendments to Regulation C, the CFPB seeks comments on whether updating the Resubmission Guidelines is also warranted. In particular, the CFPB seeks comment on its use of error percentage thresholds to determine whether data must be resubmitted, how thresholds should be calculated, and resubmission required for certain categories of errors. Upon publication in the Code of Federal Regulations, the comment period will remain open for 60 days.
The Troutman Sanders’ Consumer Financial Services Law Monitor blog offers timely updates regarding the financial services industry to inform you of recent changes in the law, upcoming regulatory deadlines and significant judicial opinions that may impact your business. To view the blog, click here
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