Avoid HMDA Pitfalls With These Five Steps
Starting Jan.1, 2018, the Consumer Financial Protection Bureau will require the reporting of more detailed information about loan applicants based on the Home Mortgage Disclosure Act. In 2018, banks, credit unions, and other lenders will have to collect, record, and report on more than twice as many data points as were previously required, all of which increases the risk of errors in their reporting. Moreover, the much more detailed information they are required to submit will expose lenders to greater scrutiny and potential liability. This checklist describes five steps financial institutions and other lenders can take to safeguard their systems and processes in the face of these new requirements.