HMDA compliance has been looming over credit unions for many years. It was actually enacted by Congress in 1975 but wasn’t transferred to the Consumer Financial Protection Bureau until 2011. The financial industry has been revamping their loan processes in order to ensure compliance with recent and more rigorous adjustments to the regulation, but what exactly does that entail? Here is the download on recent HMDA announcements and how your credit union can remain compliant.
First things first, what is the HMDA (Home Mortgage Disclosure Act)?
The HMDA rule was set forth back in 1975 and implemented by the Federal Reserve Board’s Regulation C, thus requiring financial institutions to collect, report and disclose data about their mortgage lending activity.
Most recently, a final rule declared that borrower privacy interests arise if the disclosure of unmodified HMDA loan-level data either ”substantially facilitate the identification of an applicant or borrower, or disclose information about an applicant or borrower that is not otherwise public and that may be harmful or sensitive.” Regulation C currently mandates that credit unions make available a written notice advising that the credit union’s loan and application register might be obtained from the Bureau’s website and modified by the Bureau to address privacy concerns.
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