The Consumer Financial Protection Bureau (CFPB) is seeking feedback on the implementation of the Home Mortgage Disclosure Act (HMDA), which requires lenders to report information on home loans they receive applications for, create or buy for, according to one. Press release.
The CFPB welcomes public comments to ensure they can use the data collected by the HMDA rule to achieve their goals, the statement said.
The public and regulators are allowed to use information from HMDA to verify whether financial institutions (FIs) are meeting the housing needs of their communities, as well as to distribute public sector investments and identify predatory loans, according to the report. the press release.
The request for information comes after an August report from the HMDA, finding that mortgage lenders more often denied credit and charged black and Hispanic applicants more than white applicants, the statement said.
The CFPB wants to focus on certain aspects of the rule, including institutional and transactional coverage, data points, data benefits and disclosure requirements, and operating and compliance costs, the statement said.
The CFPB has an online tool to review government lending data, the statement said. The public can use it to filter information, make summary tables, download data and save their results.
The organization completed its HMDA regulatory changes in 2015, when it expanded the types of data reported by lenders, thereby improving aggregate market intelligence and helping oversight to comply with fair lending, while by improving the reporting process.
In other CFPB news, the organization is expected to crack down on Big Tech. Director Rohit Chopra sent questions to Amazon, Meta’s Facebook and Alphabet’s Google about how consumer information is collected, users and stored.
Read more: CFPB Should Ask Tech Giants About Financial Data Management
This is part of a larger initiative to protect consumer data as well as competition in the consumer financial services space.