Government Monitoring Information Requirements Under the HMDA as well as the ECOA

Government Monitoring Information Requirements Under the HMDA as well as the ECOA

By Aaron Thompson, Senior Examiner, Federal Reserve Bank of Richmond

Introduction

Government monitoring information (GMI) is the mortgage applicant demographic data creditors must collect under Regulation B, which implements the Equal Credit chance Act (ECOA), and Regulation C, which implements the house Mortgage Disclosure Act (HMDA), whenever customers submit an application for specific home mortgages. The regulatory requirement of loan providers to gather such information goes back to 1977 as soon as the Federal Reserve Board (Board) amended Regulation B to need creditors to gather monitoring details about age, intercourse, marital status, and battle or nationwide beginning on home-purchase loans and refinancing deals. 1 The Board explained that these records would assist federal regulators detect home loan lending discrimination. Customer groups additionally thought that this information could be valuable in detecting home loan discrimination that is lending. 2

Likewise, in 1989, the finance institutions Reform, healing and Enforcement Act amended the HMDA to need creditors to get competition, intercourse, and income information from candidates for home loan loans to help 3 In 2002, the Board amended Regulation C to conform the assortment of competition and ethnicity information to modifications used because of the working office of Management and Budget. 4 Overall, the range associated with HMDA data collection needs is wider compared to the ECOA’s requirement considering that the HMDA pertains to all home mortgages, including home-improvement loans. (suite…)

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