Fresh Home finance loan Details Tool Unveiled through CFPB

Successful problem solving often depends upon the various tools you’re given: The more information you could have, the higher quality equipped you happen to be to name and solve a concern. That’s the theory behind the government Consumer Financial Protection Bureau’s new mortgage data tool and also the new data-reporting requirements it offers propose in 2010. 89705931

The CFPB has announced the making of their new online tool for exploring Home mortgages Disclosure Act data, that permits visitors to dig through data on mortgage loans made in their communities and compare it with other locations. The tool is meant to help people gain a better perception of consumers’ use of credit in their areas, CFPB officials said.

The Dodd-Frank Act tasked the CFPB with expanding your data collected from the HMDA, which the bureau is tackling this coming year. The bureau will seek public feedback on the should be contained in the data and promises to determine the brand new data points that mortgage brokers must report, however the requirements won’t need to be met in 2014.

“I am considering asking banking institutions to feature more underwriting and pricing information, like a job candidate?s debt-to-income ratio, the interest rate, the complete origination charges, plus the total discount points from the loan,” said CFPB Director Richard Cordray. “This will assist regulators spot troublesome trends in mortgage markets about the country.”

The CFPB is additionally considering requiring lenders to report the borrower’s age and credit rating, the term from the loan and regardless of if the loan meets the qualified mortgage standard. The bureau is setting up a company Review Panel, during which it'll engage and seek feedback from community banks, credit unions along with entities which can be affected by the newest rules.

In explaining the arrival changes, Cordray referenced some signs of the recent housing crisis which could are actually safer to address if more comprehensive data was available. He mentioned the surge in home equity lending prior to the bust, and the increased using teaser mortgage rates ? the first rate by using an adjustable-rate mortgage that might reset to a higher rate following your initial period.

“Teaser rates proliferated before the crisis, nevertheless the current HMDA database contains only limited details about the rates charged by lenders,” Cordray said. “These and other gaps in what we should know hinder everyone?s ability to detect whether borrowers gain access to affordable loans or identify potential targeting of borrowers for riskier or maybe more-priced loans.”

As the strategy of determining new data-reporting requirements begins, everyone already has usage of your data comparison tool with the CFPB’s website, where anyone can see mortgage trends within certain loan products, metropolitan areas and racial groups. The tool would eventually be enhanced with whatever additional data the CFPB requires from lenders.