CFPB proposes changes to collection of demographic data




The Consumer Financial Protection Bureau on March 24 released a proposal to amend the Equal Credit Opportunity Act regulations to provide additional flexibility for mortgage lenders in the collection of consumer information on ethnicity and race.

The CFPB is proposing to amend Regulation B, the rule implementing the ECOA, which restricts lenders’ ability to ask consumers about their race, color, religion, national origin or sex, except under certain circumstances. The proposed changes will provide greater clarity to lenders regarding their obligations under the law, while promoting compliance with rules intended to ensure consumers are treated fairly, according to a CFPB news release.

The proposal also contains other amendments to Regulation B to facilitate compliance with the regulation’s requirements for the collection and retention of information about the ethnicity, race, and sex of applicants seeking certain types of mortgage loans.

The CFPB is seeking input from a wide range of stakeholders and invites the public to submit written comments on the proposal. The proposal will be open for public comment for 30 days after publication in the Federal Register.

A copy of the proposal is available by clicking here.

2016 Mortgage Industry Report is now available

The Nationwide Multistate Licensing System’s Mortgage Industry Report for 2016 was released on March 20 by the Conference of State Bank Supervisors.

The report, which is posted on the NMLS website, compiles data concerning companies, branches and mortgage loan originators who are licensed or registered in the NMLS to conduct mortgage activities, including state and federally registered companies and MLOs.

Mortgage originations by state-licensed MLOs surpassed $1 trillion in 2016, up 20% from 2015. The number of state-licensed mortgage companies grew by 2.2% in 2016, and the number of licensed MLOs grew by 7.6%, according to the report.

Forward loan originations reported by state-licensed companies increased by 20% over the year, and volume of home purchase loans grew by 14.8%, the report found.

To read the full report, click here.

Trump budget proposes 13.2% funding cut for HUD

President Trump’s proposed 2018 budget requests $40.7 billion in gross discretionary funding for the U.S. Department of Housing and Urban Development. That represents a 13.2% or $6.2 billion decrease in funding from the 2017 annualized continuing resolution level.

The proposed 2018 HUD budget:

• Provides more than $35 billion for HUD’s rental assistance programs and proposes reforms to reduce costs.

• Eliminates funding for the Community Development Block Grant program, which received $3 billion in funding for 2017.

• Eliminates funding for a number of programs, including the HOME Investment Partnerships Program, Choice Neighborhoods and the Self-help Homeownership Opportunity Program. Those programs received about $1.1 billion for 2017.

• Provides $130 million for the mitigation of lead-based paint and other hazards in low-income homes, an increase of $20 million over the 2017 level.

• Eliminates $35 million in funding for Section 4 Capacity Building for Community Development and Affordable Housing.

The budget is posted on the HUD website and can be read by clicking here.

CFPB report uncovers credit reporting problems

The Consumer Financial Protection Bureau released a report detailing problems in credit reporting industry that the bureau uncovered through its oversight work.

The CFPB has identified significant issues with the quality of the credit information being provided by furnishers and maintained by credit reporting companies. The report outlines actions the CFPB has taken to address these ongoing problems such as fixing data accuracy at credit reporting companies, repairing the dispute process, and cleaning up information being reported by furnishers.

The CFPB’s Supervisory Highlights Credit Reporting Special Edition is available by clicking here.


About the author

John Roszkowski

Finance Editor John Roszkowski develops and edits content for OnCourse Learning’s financial services blog, which covers industry news and trends in mortgage, banking, compliance, credit unions, gaming and nonbank financial services. He has more than 25 years of writing and editing experience, having previously worked for weekly and daily newspapers.

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