Unexampled Mortgage Facts Application Introduced through CFPB

Successful problem solving often depends upon the instruments you’re given: The greater information you have, the higher quality equipped that you are to identify and solve an issue. That’s taking that approach behind the federal Consumer Financial Protection Bureau’s new mortgage data tool as well as the new data-reporting requirements it offers to propose in 2010. 89705931

The CFPB has announced the making of its new online tool for exploring Mortgage loan Disclosure Act data, allowing individuals sift through data on loans stated in their communities and compare it with other locations. The tool is meant to help people achieve a better perception of consumers’ use of credit inside their areas, CFPB officials said.

The Dodd-Frank Act tasked the CFPB with expanding the results collected with the HMDA, how the bureau is tackling this coming year. The bureau will seek public feedback on what needs to be in the data and offers to determine the revolutionary data points that lenders must report, although requirements won’t should be met in 2014.

“We're considering asking loan companies to feature more underwriting and pricing information, like an applicant?s debt-to-income ratio, a person's eye rate, the entire origination charges, and the total discount points of the loan,” said CFPB Director Richard Cordray. “This will help regulators spot troublesome trends in mortgage markets throughout the country.”

The CFPB is additionally thinking about requiring lenders to report the borrower’s age and credit score, the word with the loan and if the loan meets the qualified mortgage standard. The bureau is setting up a Small Business Review Panel, during which it's going to engage and seek feedback from community banks, credit unions and also other entities which may be afflicted with the brand new rules.

In explaining next changes, Cordray referenced some signs in the recent housing crisis that may have been simpler to address if more comprehensive data had been available. He mentioned the surge in home equity lending prior to the bust, along with the increased by using teaser interest rates ? the first rate by using an adjustable-rate mortgage that could reset to some better rate after the initial period.

“Teaser interest levels proliferated prior to a crisis, though the current HMDA database contains only limited information about the rates charged by lenders,” Cordray said. “These along with other gaps in whatever we know hinder everyone?s ability to see whether borrowers get access to affordable loans or even identify potential targeting of borrowers for riskier or higher-priced loans.”

Because the process of determining new data-reporting requirements begins, the population already has use of the results comparison tool over the CFPB’s website, where anyone can see mortgage trends within certain loan products, places and racial groups. The tool would eventually be enhanced with whatever additional data the CFPB requires from lenders.