The final rule will expand the HMDA dataset to include the property value, term of the loan and the duration of any teaser or introductory interest rates. Financial institutions will also be required to provide more information about mortgage loan underwriting and pricing, such as an applicant’s debt-to-income ratio, the interest rate of the loan and the discount points charged for the loan. CFPB Director Richard Cordray said:
With today’s final rule we are shedding more light to foster better understanding of the market, and also ensuring that lenders have sufficient time to come into compliance.
ABA released a statement:
We appreciate the time and attention the Bureau has applied in considering industry comments to prepare the final HMDA rule. We are pleased that the Bureau has extended the compliance date and excluded the collection of data on most commercial transactions, as ABA advocated.
However, we continue to be concerned about the privacy of bank customers’ data and ensuring that their information is properly protected. We look forward to commenting on these important issues. The rule also imposes significantly expanded data reporting and collection requirements, so we remain concerned about the appropriate balancing of costs and benefits in order to maintain consumer access to the full variety of mortgage products.
The CFPB also seeks to streamline reporting to make it easier for financial institutions to comply. Under the final rule, small depository institutions located outside a metropolitan statistical area remain excluded. Furthermore, small depository institutions that have low loan volume will no longer have to report HMDA data.