The CFPB sent a letter to 44 lenders and brokers stating that they may be required to collect, record and report data about their lending activity – and that they may be in violation of those requirements under the Home Mortgage Disclosure Act.
“Financial institutions that fail to report mortgage information as required make it harder to identify and address discriminatory lending,” CFPB Director Richard Cordray said. “No mortgage lender that is required to report their loan data can avoid this responsibility.”
The HDMA required many financial institutions to collect data about “housing-related lending activity” – including purchase loans, home improvement loans and refinancings – that they originate or purchase, or even for which they receiv3e applications. Financial institutions required to collect that data must report it annually to the appropriate federal agencies, according to the CFPB.
“Data transparency helps to ensure that financial institutions are not engaging in discriminatory lending or failing to meet the credit needs of the entire community, including low- and moderate-income neighborhoods,” the CFPB said in a news release. “Financial institutions that avoid their responsibility to collect and report mortgage loan data hinder regulatory efforts to enforce fair lending laws.”
The Consumer Financial Protection Bureau has put nearly four dozen mortgage lenders and brokers on notice that they may be violating mortgage disclosure requirements.