The Consumer Financial Protection Bureau (CFPB) aims to simplify the reporting process for financial institutions by proposing a rule to improve information reported about the residential mortgage market. The goal of the proposed rule is to shed more light on consumers' access to mortgage credit by updating the reporting requirements of the Home Mortgage Disclosure Act (HMDA) regulations.
Enacted in 1975, HMDA requires many lenders to report information about the home loans for which they receive applications or that they originate or purchase. The public and regulators can use the information to monitor whether financial institutions are serving the housing needs of their communities and identify possible discriminatory lending patterns. In 2010, the Dodd-Frank Act directed the CFPB to expand the HMDA dataset to include additional information about loans.
Improving market information- This new information includes, for example: the property value; term of the loan; total points and fees; the duration of any teaser or introductory interest rates; and the applicant's or borrower's age and credit score.