Rounds Statement on CFPB Decision to Delay HMDA Enforcement
WASHINGTON—U.S. Sen. Mike Rounds (R-S.D.), a member of the Senate Banking Committee, today issued the following statement on the Consumer Financial Protection Bureau’s (CFPB) announcement to delay enforcement of the Home Mortgage Disclosure Act:
“As the Senate sponsor of the Home Mortgage Disclosure Adjustment Act, I am keenly aware of the burden that HMDA data reporting requirements pose for small banks and credit unions in South Dakota. Today’s decision to delay penalties for the collection of HMDA data will give the Senate enough time to consider the Senate Banking Committee’s economic growth legislation, which includes my provision that would provide a long-term fix for this problem. This will allow banks to focus on servicing consumers rather than on complying with unneeded federal reporting regulations. I thank Acting CFPB Director Mulvaney for his leadership on this issue and look forward to getting our economic growth legislation signed into law.”
Today, the CFPB announced it will not require HMDA data resubmission unless errors are material, nor will the CFPB assess penalties with respect to errors for data collected in 2018 and reported in 2019. The Bureau also announced it intends to open a rulemaking to reconsider changes made to the Home Mortgage Disclosure Act by the Dodd-Frank Act. Senator Rounds’ Home Mortgage Disclosure Adjustment Act, S. 1310, provides an exemption from new HMDA data reporting requirements for small financial institutions that originate 500 closed-end mortgage loans or 500 open-end lines of credit.
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Horrific, useless, utterly bad law and a classic example of Congressional “feel good” legislation. HMDA was in full force and effect for 25 years before the mortgage meltdown, supposedly informing consumers of the costs, risks and rights they have with their mortgage. It completely failed, in all respects, and study after study has shown it made the problem worse as consumers thought the government was looking out for them where it was not.
Great Job Mike getting CFPB to back off at least one portion of its power-grab from existing federal regulators. Every hiccup you can cause them while a full repeal of CFPB is in process is worth the effort.
MHS,
Ironically, why is it every time Congress does something to make themselves feel good I get sicker?
Rounds is proving himself to be a very diligent plodder in the Senate. He finds issues where he can make a difference, stays with them through the process, and gets results. Too often we reward show horses and dismiss workhorses.
I’m with you. Great job Senator Rounds.