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QuestSoft Recommends Reduction of Burden, Increased Clarity and Automation in HMDA Comments

Compliance firm joins MBA and other trade associations in urging reduction in HMDA reporting

Laguna Hills, CA based QuestSoft Corporation responded to the CFPB’s request for comment (CFPB-2019-0020 ANPR) by urging the CFPB to make changes to HMDA reporting requirements that would make HMDA information more accurate, reduce burden and increase the ability of lenders to automate validation.

Among the compliance expert’s recommendations were changes in the following areas:

  • Eliminate the disaggregated race and ethnicity fields
  • Eliminate all free form text fields
  • Eliminate the collection of manufactured housing information
  • Add fields to better automate the collection process
    • RegZ indicator which would better identify loans requiring additional HMDA fields be populated
    • Type of Borrower (natural person, business, trust, etc.) 
    • Method of Application from the URLA to better identify loans with visual observation entries.
  • Adjusting Credit Score to eliminate the multiple borrower/co-borrower selections in favor of a system that would concentrate on the actual score used for underwriting and a separate field if a different score is used for pricing.

Finally, QuestSoft also recommended that the CFPB consider eliminating the reporting of multifamily properties to non-persons that are more relevant to the Community Reinvestment Act (CRA) than to HMDA. This aligns to recommendations submitted to the bureau by the Mortgage Bankers Association (MBA) and other trade associations.

Click Here for a complete version of QuestSoft’s CFPB HMDA Comment Letter.