New Mortgage loan Data Instrument Unveiled by CFPB

Successful problem solving often will depend on the instruments you’re given: The more information you have, the better equipped you might be to distinguish and solve a worry. That’s the idea behind the federal Consumer Financial Protection Bureau’s new mortgage data tool as well as the new data-reporting requirements it intends to propose this holiday season. 89705931

The CFPB has announced the discharge of their new online tool for exploring Home loan Disclosure Act data, that allows individuals to search through data on home loans manufactured in their communities and compare it with other locations. The tool is meant to help people gain a better comprehension of consumers’ access to credit into their areas, CFPB officials said.

The Dodd-Frank Act tasked the CFPB with expanding your data collected throughout the HMDA, which the bureau is tackling this year. The bureau will seek public feedback on the should be contained in the data and offers to determine the newest data points that banks must report, although requirements won’t must be met in 2014.

“We are considering asking banking companies to incorporate more underwriting and pricing information, such as an applicant?s debt-to-income ratio, the eye rate, the overall origination charges, and the total discount points with the loan,” said CFPB Director Richard Cordray. “This will assist regulators spot troublesome trends in mortgage markets around the country.”

The CFPB can also be considering requiring lenders to report the borrower’s age and credit history, the term from the loan and whether or not the loan meets the qualified mortgage standard. The bureau is arranging a Small Business Review Panel, where it's going to engage and seek feedback from community banks, credit unions and also other entities which can be affected by the revolutionary rules.

In explaining the coming changes, Cordray referenced some signs in the recent housing crisis that will have been safer to address if more comprehensive data had been available. He mentioned the surge in home equity lending before the bust, and also the increased utilization of teaser interest rates ? the original rate on an adjustable-rate mortgage that would reset to your better rate as soon as the initial period.

“Teaser interest levels proliferated prior to the crisis, even so the current HMDA database contains only limited info on the rates charged by lenders,” Cordray said. “These as well as other gaps in what we should know hinder everyone?s ability to determine whether borrowers get access to affordable loans or even identify potential targeting of borrowers for riskier or maybe more-priced loans.”

As being the process of determining new data-reporting requirements begins, the general public already has having access to the data comparison tool with the CFPB’s website, where anyone could see mortgage trends within certain loan products, locations and racial groups. The tool would eventually be enhanced with whatever additional data the CFPB requires from lenders.