Brand-new Mortgage Data Application Released simply by CFPB

Successful problem solving often is determined by the tools you’re given: The more information you could have, the better equipped that you are to spot and solve a challenge. That’s the thought behind the federal Consumer Financial Protection Bureau’s new mortgage data tool along with the new data-reporting requirements it plans to propose this coming year. 89705931

The CFPB has announced the production of that new online tool for exploring Mortgage loan Disclosure Act data, which allows people to dig through data on home loans manufactured in their communities and compare it to other locations. The tool is supposed to help people achieve better comprehension of consumers’ usage of credit into their areas, CFPB officials said.

The Dodd-Frank Act tasked the CFPB with expanding the information collected throughout the HMDA, how the bureau is tackling this season. The bureau will seek public feedback on the really should be in the data and plans to determine the revolutionary data points that loan officers must report, although the requirements won’t should be met in 2014.

“We are considering asking banking institutions to add in more underwriting and pricing information, such as an applicant?s debt-to-income ratio, a person's eye rate, the overall origination charges, plus the total discount points from the loan,” said CFPB Director Richard Cordray. “This will aid regulators spot troublesome trends in mortgage markets about the country.”

The CFPB is usually keen on requiring lenders to report the borrower’s age and credit standing, the word of the loan and whether the loan meets the qualified mortgage standard. The bureau is assembling a small company Review Panel, through which it's going to engage and seek feedback from community banks, credit unions as well as other entities which might be troubled by the brand new rules.

In explaining the approaching changes, Cordray referenced some signs with the recent housing crisis which will are safer to address if more comprehensive data ended up being available. He mentioned the surge in home equity lending before the bust, plus the increased usage of teaser mortgage rates ? the 1st rate on an adjustable-rate mortgage that will reset to a greater rate following your initial period.

“Teaser interest levels proliferated prior to crisis, even so the current HMDA database contains only limited details about the rates charged by lenders,” Cordray said. “These as well as other gaps in whatever we know hinder everyone?s power to evaluate if borrowers have access to affordable loans as well as to identify potential targeting of borrowers for riskier or more-priced loans.”

Because the procedure for determining new data-reporting requirements begins, people already has usage of the results comparison tool over the CFPB’s website, where anyone could see mortgage trends within certain loan products, metropolitan areas and racial groups. The tool would eventually be enhanced with whatever additional data the CFPB requires from lenders.

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