Sixty-five Democratic representatives called on CFPB Director Kathy Kraninger to rescind a recent proposal that would reduce the amount of lending information collected under the Home Mortgage Disclosure Act ("HMDA") rules. As previously covered, the CFPB proposal is designed to provide reporting relief to smaller lenders.
According to the letter, the CFPB must ensure lending data is easily accessible in order to address discrimination in lending. The representatives argued that exempting a significant amount of financial institutions from HMDA reporting requirements for closed-end mortgage loans will give those institutions a "free pass" to "discriminate against otherwise creditworthy borrowers."
The CFPB requested comment on a proposal "to raise the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit."
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