CFPB sending HMDA warning letters

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The CFPB announced that it is issuing warning letters to 44 mortgage lenders and mortgage brokers stating that it “has information that appears to show that your company may not be in compliance with certain provisions of the Home Mortgage Disclosure Act (HMDA) and its implementing regulation, Regulation C.”

According to the CFPB’s press release, the CFPB identified the 44 companies by reviewing available bank and nonbank mortgage data.  The press release includes a link to a sample warning letter.

The letters urge recipients to review their practices to ensure HMDA compliance and encourage them to advise the CFPB of the steps they have taken or will take to ensure compliance.  Alternatively, if a recipient believes it is not subject to HMDA, the CFPB encourages the recipient to provide an explanation for its position.

In October 2015, the CFPB issued a final rule amending Regulation C.  The changes, which, in part, implement the Dodd-Frank Act’s amendments to HMDA, expanded the scope of data required to be collected and reported, changed the scope of HMDA’s coverage of both institutions and transactions, and adopted new processes for disclosing data.  Most of the new and revised requirements take effect on either January 1, 2018 or January 1,  2019.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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