CFPB gives small banks, CUs a break on HMDA reporting

Share
CFPB gives small banks, CUs a break on HMDA reporting

The Consumer Financial Protection Bureau has chose to give small financial institutions a tiny bit of regulatory relief, by temporarily easing their reporting requirements under the Home Mortgage Disclosure Act.

According to the CFPB, the temporary increase in the threshold will provide time for it to consider whether to permanently adjust the threshold for data collected beginning January 1, 2020. The report noted that a reverse mortgage reduces the equity homeowners have in their house, which could create a negative impact if the loan balance grows faster than the property's appreciation rate. home values will appreciate. The industry group urged the CFPB to raise the threshold to 2,000 loans and to make the increase permanent.

"We remain concerned about the staggering number of data requirements under the final rule and the number of community banks that will still be affected by the threshold cap", ICBA President Camden Fine said in a statement.

In the initial letter, Irwin cited the burden of collecting HMDA-required information from borrowers, concerns over data security, and the potential cost of HMDA compliance software specifically designed for HECMs.

The brief used an average, hypothetical homeowner to determine the reverse mortgage cost compared to the full benefits of Social Security if the consumer lives to the average lifetime expectancy, which is now 85 years old.

The CFPB initially proposed the reporting rule for home equity lines of credit back in 2015, claiming that the products helped contribute to the "overleverage" that eventually led to the mortgage crisis in the mid-2000s.

The Bureau also warns that borrowers can be at risk of losing equity in their home as well, especially if they want to sell their home.

Share

Advertisement

Related Posts

Federer admits his chances of winning USA open is slim
I love the way Pliskova plays but I am sure very few people know who she is or what she is about. Federer has played 20 matches less this year, with an impressive win-loss record of 35-3.

Klopp impressed with Liverpool squad and happy for window to close
I'm happy at the moment. " It's not about money, it's not about us, but sometimes it's possible or not possible ". It just shows the quality of the squad, other players were not in squad.

Majority of Americans Disapprove of Trump's North Korea Policy
Since Trump became president, his lowest approval rating was 33 percent on August 2 and the highest was 41 percent on March 7. Sixty-eight percent of voters think Trump's words/actions could cause an "international conflict", while 29 percent disagree.

Chelsea to make fresh bid for Swansea City forward Fernando Llorente?
His goals helped keep the Swnas in the Premier League as he built up a strong relationship wit Gylfi Sigurdsson on the pitch. Considering that time is quickly running out, the Italian has reignited his interest in former player Fernando Llorente .

Study finds more Americans living paycheck to paycheck
Thirty-eight percent do not participate in a 401 (k) plan, individual retirement account (IRA) or any other type of retirement plan.

Lakewood Capital Management LP Continues to Hold Position in Baidu INC (BIDU)
The stock of The GEO Group Inc (NYSE:GEO) has "Buy" rating given on Friday, February 24 by Canaccord Genuity. Moreover, Lawson Kroeker Investment Management Inc Ne has 0.82% invested in the company for 255,643 shares.

Global Stocks Flat; Focus On Jackson Hole
In Europe, the Stoxx 600 Index had added 0.2 percent by 5:40 a.m., with S&P 500 futures slipping 0.1 percent . The Euro has defied gravity even as the fresh news has dried up and the Dollar has somewhat found its feet.

President Ilham Aliyev allocates AZN 2 mln to FC Qarabag
In the second leg match of the Champions League playoff round Copenhagen was hosting Azerbaijan's FK Qarabag on August 23. Dino Ndlovu scored his fourth goal in the qualifying round when he grabbed Qarabag's equalizer in the 63rd minute.

Wanted to play Dananjaya as someone who bowls googlies - Bhuvneshwar
India had an opening stand of 109 runs and then lost five wickets for 22 runs and another stand of 100 runs for the eighth wicket. In response, the Indian team went in with a different strategy by promoting KL Rahul and Kedar Jadhav up the order.

Klopp: Milner in midfield 'like a transfer' for Liverpool
Chelsea will take on Atletico Madrid, Roma and Karabag in the group stages of the Champions League . Liverpool manager Jurgen Klopp believes other teams in the Champions League will fear the Reds.

© 2015 ExpressNewsline. All Rights reserved.