CFPB finalizes ECOA compliance reforms, issues HMDA guidance proposal

first_img continue reading » The CFPB on Wednesday issued its final rule modifying the Equal Credit Opportunity Act (ECOA) regulations, which it says will provide added flexibility for mortgage lenders in the collection of consumer ethnicity and race information.NAFCU is reviewing the final rule and will issue a Final Regulation to members.Currently, the ECOA restricts lenders’ ability to ask consumers about race, religion, nationality or sex except as it relates to the required collection of such information for some mortgage applications, subject to certain exceptions, including Home Mortgage Disclosure Act (HMDA) reporting. The CFPB’s final rule aims to give lenders more flexibility in using consistent forms to request the information.In the association’s comments on the proposed rule changes, NAFCU raised the issue of this leading to potentially confusing, dissimilar demographic data and pointed out that the proposed rule was unclear as to the process for evaluating aggregate data. 10SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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