CFPB to Gather Comments on Data Collection

The Consumer Financial Protection Bureau (CFPB) is looking for input on implementing the Home Mortgage Disclosure Act (HMDA), which requires lenders to report information about home loans they receive applications for, originate or buy, according to a press release.

The CFPB wants comments from the public to make sure it can use the data collected by the HMDA rule in order to meet its goals, the release stated.

The public and regulators are allowed to use HMDA information in order to monitor whether financial institutions (FIs) have been doing right by housing needs in their communities, along with distributing public-sector investment and identifying predatory lending, according to the release.

The request for information comes after an August report from the HMDA, finding that mortgage lenders have more often denied credit and charged more to Black and Hispanic applicants as opposed to white ones, the release stated.

The CFPB wants to focus on certain aspects of the rule, including institutional and transactional coverage, data points, benefits of data and disclosure requirements and costs for operation and compliance, according to the release.

The CFPB has an online tool to look into public loan data, the release stated. The public can use it to filter information, make summary tables, download data and save their results.

The organization finished its changes to HMDA regulations in 2015, when it expanded the types of data reported by lenders, boosting the overall market information and helping with monitoring to comply with fair lending, along with improving the reporting process.

In other CFPB news, the organization has been expected to crack down on Big Tech. Director Rohit Chopra sent out questions to Amazon, Meta’s Facebook and Alphabet’s Google about how information on consumers is collected, users and stored.

Read more: CFPB Expected to Query Tech Giants Over Financial Data Handling

This is part of a larger initiative to protect consumer data as well as competition in the consumer financial services space.

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