CFPB: Final Ruling on Home Mortgage Disclosure Act

The Consumer Financial Protection Bureau (CFPB) has issued a final ruling on its amendment to Regulation B of the Home Mortgage Disclosure Act, with the intention to assist with compliance with Regulation C.

According to the CFPB’s report, the amendment is to assist creditors with flexibility in meeting with standard government regulation. The ruling will be effective starting January 1, 2018. The CFPB notes that their summary as published, provides guidelines and it is not a substitute of the final ruling.

The final rule provides Regulation B creditors flexibility in collecting the applicant information. According to the report, Regulation B creditors making mortgage loans are subject to “collect the applicant’s information using either the aggregate ethnicity and race categories, or disaggregated ethnicity and race categories and subcategories, as set forth in appendix B to Regulation C (the Regulation C appendix), as amended by the 2015 and 2017 HMDA Final Rules.”

Finally, the CFPB’s ruling makes changes to the appendix of Regulation B, which “provide two alternative forms to collect applicant ethnicity, race, and sex information. The final rule also removes an outdated version of the URLA (Universal Residential Loan Application), effective January 1, 2022.”

These changes include a model form and cross reference for collecting aggregate applicant race, ethnicity, and sex information.

To view the full report, click here.