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QuestSoft Updates CFPB HMDA Testing Database to Ensure HMDA Readiness

Oct 2, 2017 by Brian Arnesen

This week, QuestSoft will be releasing the latest Compliance RELIEF update to enable customers to live test their 2018 data against the 215 new validity error codes and 42 new quality checks—three months ahead of the implementation deadline of January 1st. These new error codes have no ties to historical codes, allowing lenders to start with a “clean slate” and adjust to new standards and conditions throughout their operations.

Testing your data early is one of the only ways to be certain that you have the proper systems and procedures in place to ensure a smooth transition into 2018.

According to QuestSoft President Leonard Ryan, “Loan errors are one of the most complicated changes lenders must adapt to with the new HMDA standards. In addition to the sheer magnitude of a 169% increase in HMDA edits, each error now has multiple conditions, and a blank loan application immediately triggers more than 67 errors (a threefold increase). By providing the rulesets a full quarter before data collection is required, we are making it practical for lenders to ensure their loans are fully compliant, valid and accurate before the January 1st deadline.”

The CFPB has also updated the allowable error thresholds. You can view the Examiner Transaction Testing Guidelines here. These new thresholds are stricter, and your data must be more accurate than ever. Here are the new thresholds: 

2018 HMDA Thresholds

As you can see there is little room for error. Having to resubmit your data is tedious and can be expensive. We recommend all Compliance RELIEF customers live test their data as soon as possible. In the next few days, customers will be able to download the latest Compliance RELIEF update v1.1.3.0 (which includes the testing database) from the QuestSoft Download Center. If you are not a current QuestSoft customer, we encourage you to schedule a 10-minute demo with us by clicking here