Yesterday the CFPB released a statement saying they have issued a letter of notice to 44 mortgage companies (lenders and brokers) alerting that there may be an issue with their HMDA reporting.
“Financial institutions that fail to report mortgage information as required make it harder to identify and address discriminatory lending,” said CFPB Director Richard Cordray. “No mortgage lender that is required to report their loan data can avoid this responsibility.”
The CFPB identified the 44 companies by reviewing available bank and nonbank mortgage data. The warning letters flag that entities that meet certain requirements are required to collect, record, and report mortgage lending data. The letters say that recipients should review their practices to ensure they comply with all relevant laws. The companies are encouraged to respond to the Bureau to advise if they have taken, or will take, steps to ensure compliance with the law. They can also tell the Bureau if they think the law does not apply to them. The CFPB, in sending these letters, made no determination that a legal violation did, in fact, occur.
An example of the letter can be found here: CFPB Possible Non Compliance
Ken Perry has been stating for some time that adherence to the HMDA is a hot button and that changes are coming. CFPB just fired the first warning shot. The Knowledge Coop has already been working on HMDA training for 2017 that will also include some of the coming changes as well as the current requirements. Mortgage professionals will need to be fully aware and educated on the issued of HMDA and what that can mean for both their company and their business personally.