In a recent letter, the National Association of Federally-Insured Credit Unions (NAFCU) asked the Consumer Financial Protection Bureau (CFPB) to excluded more Home Mortgage Disclosure Act (HMDA) data from public disclosure.
HMDA requires financial institutions to maintain, report, and publicly disclose information about mortgages. You can view the CFPB’s HMDA data by clicking here.
Speaking on behalf of the organization, NAFCU’s Regulatory Affairs Counsel Andrew Morris proposed these disclosure changes to ensure sensitive consumer financial information was adequately safeguarded.
"HMDA's statutory purpose does not specify that the public should be able to dissect every aspect of a lender's underwriting process, and while NAFCU understands that transparency is valuable, there is a point at which the risks to privacy outweigh the benefits of expanded disclosure," Morris wrote. "NAFCU believes that the proposed policy guidance does not strike the correct balance."
Morris sentiments echo those of many in the industry who have expressed concerns about better protecting data after the recent high-profile Equifax breach. According the NAFCU, failure to take further precautions with HMDA data could “elevate the risk of fraud, identity theft, or embarrassment for individual borrowers or applicants.”
Final HMDA rule changes will take effect on January 1, with the bulk of data submissions due in 2019.
To learn more about NAFCU’s letter, click here.