The Consumer Financial Protection Bureau said Thursday it is considering expanding the home loan data it requires from credit unions and other lenders to include Dodd Frank Act mandates of more underwriting and pricing information.
That includes potentially requiring lenders to explain why they rejected a loan and whether they thought it was a so-called qualifying mortgage.
"We are considering asking financial institutions to include more underwriting and pricing information, such as an applicant's debt-to-income ratio, the interest rate, the total origination charges, and the total discount points of the loan," said CFPB director Richard Cordray.
Credit union trade groups have been
The CFPB will be forming a review panel to get feedback from industry and other interested parties about the expansion of the Home Mortgage Disclosure Act data reporting requirements. Bureau officials said they are just starting the process to update HMDA reporting and they won't issue an actual proposal for public comment until the later this year.
Under HMDA, lenders are required to record the number of loans approved and rejected, a loan's purpose (such as a refinancing), the sex, race and ethnicity of applicants and the interest rate spread, among other items.
But the Dodd-Frank Act required the bureau to begin adding new data collection points, including total points and fees, the term of the loan, the length of any teaser interest rates and the borrower's age and credit score.
The CFPB is also weighing going beyond that, potentially asking lenders whether they considered a loan for QM status and to further explain if they rejected a loan.
"We are considering adding a data point on whether the lender considered the loan to be a qualified mortgage," Cordray said. "This information would help regulators and the public determine how the bureau's rules are affecting the mortgage market."
CFPB officials said they are also mindful of the data collection burden this would impose on lenders. The agency said it is considering ways to ease the compliance burden by aligning HMDA data collection with the Uniform Loan Delivery Dataset that lenders use to deliver loans to Fannie Mae and Freddie Mac.
For multi-family properties, a credit union lender would have to report whether it has an affordable housing deed restriction. For manufactured housing, the reporting requirements under consideration would include whether a loan is secured by real or personal property and whether the homeowner rents or owns the property where the home sits.
Home purchase loans, refinancings, home improvement loans secured by a dwelling, and reverse mortgages would be covered. Credit unions originating fewer than 25 home loans a year would be exempted
Credit unions will be included in a Small Business Review Panel obligated by Dodd Frank for the CFPB to examine proposed regulatory changes that could impact them.
While the list of requirements is long, the CFPB said much of the data is already being collected by lenders and that a streamlining and aligning the process in the mortgage industry could reduce costs and improve accuracy.
CFPB officials said they are also mindful of the data collection burden this would impose on lenders. The agency said it is considering ways to ease the compliance burden by aligning HMDA data collection with the Uniform Loan Delivery Dataset that lenders use to deliver loans to Fannie Mae and Freddie Mac.
In another mortgage development, the agency has created a
