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CFPB seeks input on HMDA resubmissions

Posted in Mortgages

The CFPB has issued a request for information (RFI) seeking information on what changes to the CFPB’s HMDA Resubmissions Guidelines may be appropriate.  The RFI responds to comments received by the CFPB in connection with its final HMDA rule issued in October 2015 that it consider changes to the Resubmission Guidelines to reflect the expanded data to be collected under the final rule.

The RFI contains 12 principal questions to which commenters are asked to respond.  (Each principal question is supplemented by one or more follow up questions.)  The questions include (1) whether the CFPB should continue to use error percentage thresholds to determine the need for data resubmission, (2) whether the error percentage thresholds, if retained, should (a) be calculated differently, (b) treat systemic and non-systemic errors differently, (c) continue to include separate thresholds for the entire HMDA loan/application register (LAR) sample and individual data fields within the LAR sample, or (d) include different thresholds for institutions with different LAR sizes and for different HMDA fields based on LAR size, (3) whether the CFPB should separately survey a financial institution’s internal data for HMDA-reportable transactions that were omitted from the institution’s LAR, (4) whether the CFPB should require correction and resubmission for some kinds of errors and, for other kinds of errors, should require only that an institution ensure the errors will not be found in future HMDA submissions, and (5) whether changes are needed in how the CFPB conducts HMDA data integrity reviews, including how it selects HMDA samples for such reviews.

The CFPB states in the RFI that it anticipates it will not separately propose and solicit comments on changes to its Resubmission Guidelines before finalizing and publishing changes.  In short, this may be the industry’s only chance to submit comments on revisions to the Resubmission Guidelines.  Comments on the RFI will be due on or before 60 days after it is published in the Federal Register.