Home Mortgage Disclosure Adjustment Act

 

 

 

The proposed Home Mortgage Disclosure Adjustment Act would eliminate the federal requirement to disclose home mortgage loans in federally-regulated financial services. The bill has bipartisan support in Congress and is expected to become law in a few months. It amends the official commentary that interprets the Bureau's Regulation C, which requires lenders to report certain data on consumer loan practices. The proposed legislation would exempt most lenders from reporting their information for two years.  Visit this site and discover more about Home Mortgage Disclosure Adjustment Act.

 

In addition, the bill will exempt small lenders from reporting about their loans. Lenders that originate fewer than five hundred closed-end mortgage loans and 200 open-end lines of credit will not have to report this information. Although the bill does not address the goals of the Home Mortgage Disclosure Act, it has received bipartisan support. According to the Congressional Budget Office, the proposed law will help small lenders to remain competitive and to increase consumer confidence.

 

In response to the proposed law, the Bureau of Consumer Financial Protection (CFPB) is issuing a new rule that implements the Home Mortgage Disclosure Act. The CFPB has concluded that the new rule will not affect the availability of mortgage data to consumers. As a result, the Act will have no impact on mortgage lending. Despite this potential downside, the new legislation is being supported by many industry organizations. The Independent Community Bankers of America, the American Bankers Association, and the National Association of Federal Credit Unions have endorsed the measure.

 

The Home Mortgage Disclosure Adjustment Act will provide regulatory relief to 3,400 small financial institutions by allowing them to continue operating under the existing regulatory framework. The Dodd-Frank Wall Street Reform Act imposed a host of mandates on community financial institutions, but many of these measures have little to do with the underlying cause of the 2008 financial crisis. The proposed Home Mortgage Disclosure Adjustment Act amends Regulation C, which requires small banks to collect 48 unique data points from loan applications.

 

While the legislation is not yet final, it does provide relief for small lenders. It does not affect the amount of mortgage data available to the CFPB and the goals of the Act. The CFPB will continue to monitor the compliance of smaller lenders, but the HMDA will also help protect consumers. The legislation has gained support in several industry groups. The American Bankers Association and Independent Community Bankers of America are all in favor of the new law.

 

In the coming months, the Home Mortgage Disclosure Act is likely to gain approval in the House. If it is passed, it will help protect the consumer and provide a better environment for lending. While this bill will not completely replace Regulation C, it will greatly improve the way the market works. It will help protect consumers and prevent the housing crisis from happening. The Act is a great step in preventing the housing crisis. However, it has been met with opposition in some states. Here is a post with more information on mortgage, check it out: https://en.wikipedia.org/wiki/Mortgage_origination.

 

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