Brand-new Mortgage loan Data Instrument Unveiled by simply CFPB

Successful problem solving often will depend on the tools you’re given: A lot more information you could have, the better equipped you are to identify and solve a problem. That’s the idea behind the government Consumer Financial Protection Bureau’s new mortgage data tool plus the new data-reporting requirements it promises to propose in 2010. 89705931

The CFPB has announced the release of the new online tool for exploring Mortgage Disclosure Act data, allowing people to search through data entirely on home loans produced in their communities and compare it with other locations. The tool is supposed to help people achieve better perception of consumers’ access to credit within their areas, CFPB officials said.

The Dodd-Frank Act tasked the CFPB with expanding the information collected from the HMDA, which the bureau is tackling this season. The bureau will seek public feedback about what really should be as part of the data and offers determine the newest data points that loan officers must report, the requirements won’t need to be met in 2014.

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

The CFPB can be enthusiastic about requiring lenders to report the borrower’s age and credit score, the definition of with the loan and perhaps the loan meets the qualified mortgage standard. The bureau is putting together a Small Business Review Panel, in which it will engage and seek feedback from community banks, credit unions along with entities which can be afflicted with the brand new rules.

In explaining the approaching changes, Cordray referenced some signs of the recent housing crisis that will have been better to address if more comprehensive data ended up being available. He mentioned the surge home based equity lending prior to the bust, plus the increased by using teaser interest rates ? the first rate by using an adjustable-rate mortgage that might reset to some more achieable rate as soon as the initial period.

“Teaser rates proliferated prior to the crisis, however the current HMDA database contains only limited specifics of the rates charged by lenders,” Cordray said. “These along with gaps in what we should know hinder everyone?s capability to decide if borrowers have access to affordable loans or identify potential targeting of borrowers for riskier or more-priced loans.”

Because strategy of determining new data-reporting requirements begins, the general public already has access to the info comparison tool with the CFPB’s website, where anyone is able to see mortgage trends within certain loan products, urban centers and racial groups. The tool would eventually be enhanced with whatever additional data the CFPB requires from lenders.

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