CFPB Warns Mortgage Companies about Potential HMDA Violations

The CFPB announced that it has issued warning letters to 44 mortgage lenders and mortgage brokers stating that the Bureau has information that appears to show that they may not be in compliance with certain provisions of the Home Mortgage Disclosure Act (“HMDA”) and Regulation C.

According to the CFPB’s press release, the CFPB identified the 44 mortgage companies by reviewing available bank and nonbank mortgage data. Although the warning letters state that the CFPB has not made a determination that the companies are in violation of HMDA filing requirements, the letters urge the entities to review their practices to ensure that they comply with all applicable laws, including the requirements to collect, record and report mortgage lending data. The letters also encourage recipients to notify the CFPB of the steps that they have taken or will take to ensure compliance with HMDA, or to provide an explanation if they think that they are not subject to HMDA.

In October 2015, the CFPB finalized regulations updating the reporting requirements of HMDA. The changes will, among other things, expand the scope of who must collect and report HMDA data, and expand the kinds of data that must be collected and reported with respect to each loan. The final rule will also revise the method and frequency of reporting data and making data available to the public. Most of the provisions of the final rule will take effect on January 1, 2018.

The CFPB’s press release is available here: http://www.consumerfinance.gov/about-us/newsroom/cfpb-warns-financial-institutions-about-potential-mortgage-lending-reporting-failures/.

A sample letter is available here: http://www.consumerfinance.gov/about-us/newsroom/cfpb-warns-financial-institutions-about-potential-mortgage-lending-reporting-failures/.