CFPB Warns Mortgage Lenders and Brokers They May be Out of Compliance with HMDA

Last month, the CFPB issued warning letters to 44 mortgage lenders and brokers warning that they may be in violation of the Home Mortgage Disclosure Act (“HMDA”) and its implementing regulation, Regulation C. HMDA and Regulation C require certain qualifying financial institutions to collect, record, and report data regarding their housing related lending activities. The CFPB identified the 44 lenders and brokers by reviewing available bank and nonbank mortgage data. The warning letters stated that the recipients should review their current practices to ensure they are in compliance with all relevant laws. The companies were encouraged to respond to the Bureau to advise if they have taken, or will take, steps to ensure compliance with HMDA and Regulation C, or alternatively to provide an explanation if they think the HMDA reporting requirements do not apply to them. It is important to note that the CFPB made no determination that a legal violation did, in fact, occur.

As a mortgage banking focused law firm, AMLG continues to be involved with our clients’ implementation of the amended HMDA reporting requirements which will begin going into effect next year. If you need assistance with HMDA-related issues, including deciphering the reporting requirements applicable to your organization, assistance with implementation, updates to your policies and procedures, and/or counsel regarding fair lending best practices, please contact Managing Member James Brody by clicking here.  AMLG clients and newsletter readers may receive a complimentary copy of the firm’s HMDA Reporting Implementation Checklist by clicking here.