Regulators' Silence on New HMDA Rule is Deafening

American Banker
1 minute read | April.20.2017

As banks prepare to comply with a Consumer Financial Protection Bureau rule adding new reporting requirements under the Home Mortgage Disclosure Act, much attention has been paid to how expanded data points such as “interest rate” and “credit score” will affect fair-lending compliance. But the impact does not stop there.

The CFPB noted in its 2015 rule, which takes effect Jan. 1, that “the new data will also help to assess certain financial institutions’ performance under the” Community Reinvestment Act. It seems likely that examiners conducting CRA reviews to evaluate a lender’s efforts meeting the credit needs of its community will utilize the updated reporting on mortgage activity.

Yet the CFPB does not enforce the CRA. The prudential regulators that do — the Federal Reserve Board, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency — have yet to weigh in on how the revised mortgage reporting requirements will affect institutions’ performance on CRA exams.