The American Bankers Association (“ABA”) recently issued a white paper calling on the Consumer Financial Protection Bureau (“CFPB”) to delay expansion in the data collection under Home Mortgage Disclosure Act (“HMDA”), stating concern that the new requirements do not advance the purpose of HMDA. The ABA stated that the Dodd-Frank Act amendments “vastly increase HMDA data collection and reporting obligations,” and that while the initial intent may have been to reduce burden on the industry, ABA members have reported concern that these changes will actually “significantly increase costs and limit the availability of mortgage credit.” Additionally, the ABA expressed concern that the increase in the data collected may distract the financial institution from the purpose of HMDA, and that this addition in data collected increases the probability for violation of consumer privacy.
In all, the ABA made four requests:
- Rescind the Bureau’s expansion beyond the statute,
- Suspend data expansion until security and privacy concerns are fully addressed,
- Exclude commercial loans, and
- Revoke the new HMDA data elements added by DFA.