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FHFA and CFPB Unite to Create the First National Mortgage Database

The mortgage market may be the largest market for consumer finance, but the sector lacks a comprehensive national database, according to the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA) and ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov (CFPB).

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This is why the federal agencies are coming together to create a national mortgage database.

The database will become the ""first comprehensive repository of detailed mortgage loan information,"" according to the agencies. Although federal and state agencies collect information, there isn't a collective center for all of the information.

""In order to understand what is going on in the mortgage marketplace and develop appropriate consumer protections, we must have the best facts and data,"" said CFPB Director Richard Cordray. ""This database will be a valuable tool for regulators and researchers and we look forward to partnering with FHFA on this important work.""

The information in the database will cover the life cycle of a loan starting with origination and span through servicing.

Borrower profiles, payment history, and the mortgage product and terms will be included in the database, which will be updated monthly and date back to 1998.

In the release, the agencies assured the database won't contain information that would give away the identities of borrowers to the public.

The agencies provided examples of ways the database will support their work, one of which includes the ability to monitor the health of the market. Through the database, the agencies can know how mortgages are performing and access information on loan modifications, foreclosures, and bankruptcies.

The agencies will also be able to monitor new products, view liens, and obtain information on other debt obligations of borrowers.

The database also enables FHFA to conduct a monthly mortgage market survey, which is a requirement under the Housing and Economic Recovery Act of 2008 (HERA).

About Author: Esther Cho

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