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VIEWpoint Issue 1 | 2023
2023 Compliance Trends: Staying Ahead in an Evolving Regulatory E...
On Nov. 16, 2021, the Consumer Financial Protection Bureau (CFPB) issued a 33-page Request for Information on the Home Mortgage Disclosure Act (HMDA). Over the last 45 years since its conception, HMDA has been updated and expanded over time. The CFPB is conducting a voluntary assessment of the HMDA final rule issued in 2015. In 2015, the CFPB expanded the types of loan data reported by lenders to help evaluate fair lending compliance.
An August 2021 HMDA report found mortgage lenders often deny credit and charge higher interest rates to Black and Hispanic applicants than they do to white applicants. In July 2021, an CFPB analysis of mortgage lending patterns within the Asian American Pacific Islander (AAPI) communities showed mortgage denial rates similar to those of Black and Hispanic borrowers.
To assess the effectiveness of the HMDA Rule, the CFPB intends to focus its evaluation on the following primary topic areas:
The CFPB views the assessment as an opportunity to evaluate whether prior HMDA rulemakings have improved upon the data collected, reduced unnecessary burden on financial institutions, and streamlined and modernized the way financial institutions collect and report HMDA data.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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