This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has issued warning letters to 44 mortgage lenders and mortgage brokers informing them that they may be in violation of Home Mortgage Disclosure Act requirements to collect, record, and report data about their housing-related lending activity. Financial institutions subject to the HMDA requirements must annually report the data to the appropriate federal agencies and also make it available to the public.
According to the CFPB, this information can be used by regulators and the public to monitor whether financial institutions are serving the housing needs of their communities, to assist in distributing public-sector investment so as to attract private investment to areas where it is needed, and to identify possible discriminatory lending patterns. The warning letters state that entities meeting certain requirements are required to collect, record, and report mortgage lending data, and it encourages companies to respond to the bureau regarding whether they have taken, or will take, steps to ensure compliance with the law or whether they believe the law does not apply to them.