On the heels of TRID, the CFPB is releasing new Home Mortgage Disclosure Act requirements, where lenders must report the property value, the term of the loan, the term of any prepayment penalty and the duration of any teaser or introductory interest rates. In addition, they will need to provide more information about underwriting and pricing.
The new requirements won’t just affect lenders, they will provide useful information to everyone in the mortgage process, beginning with buyers and sellers.
“When you submit a mortgage application to a financial institution, you are asked to share your race, ethnicity, sex, and income … [to] identify possible discriminatory lending patterns in mortgage markets. … The information is only as powerful as what’s collected; when you share your data, you help ensure a more equitable market for all.”
The new HMDA data will begin being collected beginning on January 1, 2018 and be available to the public in 2019. The reporting for this rule will have huge ramifications on non-bank lenders not familiar with HMDA reporting.
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