CFPB Issues New HMDA FAQs Concerning Multiple Data Points

The CFPB recently published a response to two new HMDA frequently asked questions related to multiple data points– specifically, whether financial institutions should report (i) the credit score, debt-to-income ratio (DTI), and combined loan-to-value ratio (CLTV), and (ii) income and property value when such factors are not dispositive in making a credit decision.

The CFPB confirmed, with respect to both data sets, that any such data point must be reported if “relied on in making the credit decision” and that there is no requirement in Regulation C, implementing HMDA, that limits reporting to dispositive factors alone.  For example, if a financial institution denied an application for failing to satisfy one or more underwriting requirements other than the credit score, the FAQs emphasize that the credit score must still be reported if the financial institution “relied” on the credit score in its decision.  Citing the comments to Regulation C, the FAQs apply this same fact pattern and analysis to the reporting of CLTV and DTI.

With respect to income and property value, the FAQs similarly require reporting if such data is relied on in making the credit decision.  Further, the FAQs emphasize comments to Regulation C that explain the required income reporting applies to the relied-on gross annual income of an applicant.