Bankers associations urge consumer protection bureau to delay changes to Home Mortgage Disclosure Act
SAN JUAN – Together with bankers associations from all 50 states and Puerto Rico, the American Bankers Association is urging the Consumer Financial Protection Bureau (CFPB) to delay the implementation of changes to the Home Mortgage Disclosure Act that is set to go into effect next year and that require financial institutions to provide data to the public on home mortgages.
The organizations contend that the CFPB, which has had control of the law since 2011, should provide bankers and third-party service providers more time to comply with the complex rule and to ensure that consumer data is protected. The rule is set to take effect Jan. 1. In a statement, the groups asked the bureau to announce its intention for a delay by next month.
“The associations noted that the recent proposed changes to the rule—many of which were substantive—have added to its complexity, and will require third-party software providers to make additional changes to help banks comply, which would make the Jan. 1 compliance deadline unfeasible,” they said in a statement.
They also pointed out that the CFPB has not conducted adequate reviews or engaged bankers in discussing solutions.
A recent Treasury report on financial regulation raised similar concerns about banks’ ability to comply with the rule, and whether borrower data would be adequately protected. The associations echoed the department’s call for implementation to be postponed “until borrower privacy is adequately addressed and the industry is better positioned to implement the new requirements.”