FAIR LENDING: (HMDA)

With the adopted amendments to Regulation C, referred to by the Consumer Financial Protection Bureau (CFPB) as the “Final Rule.” It brings with it a potential set of new challenges. The Final Rule adds 25 new data elements to the existing LAR data set, modifies, and expands many other existing elements. The lack of certain loan-level information in the current LAR data set has resulted in regulatory and enforcement agencies’ allegations of disparate treatment redlining based primarily on a statistical analysis of a mortgage lender’s application or origination rate in comparison with that of other mortgage lenders that are deemed to be its peers. Do the new data elements in the Final Rule improve fair lending or do they just allow for other areas of fair lending analysis to emerge and therefore present new challenges for mortgage lenders? Let me know what you think!