The Consumer Financial Protection Bureau (CFPB) recently proposed several changes to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The CFPB is looking to add new categories for reporting by lenders and make changes to how the data is reported. The rule would require lenders to report property value, loan term, total points and fees, the duration of teaser rates, and the age and credit score of the applicant or borrower. The CFPB also proposed that lenders submit data on an applicant’s debt-to-income ratio, interest rate and total points charged, which the Bureau said would help evaluate the impact of the current mortgage rules. With only a few exceptions, all dwelling-secured loans would be subject to the new rule.
The CFPB proposed a threshold, 25 mortgages originated annually, at which banks and nonbanks will become subject to the rule. The Bureau said it would align the HMDA reporting requirements with industry data standards and improve the electronic reporting process. Comments are due by October 22nd.