Mortgage lenders should be aware of upcoming changes to the Consumer Financial Protection Bureau’s (CFPB) Regulation B. The CFPB has been in the process of changing existing rules to allow for compliance with recent changes to Regulation C, a mortgage loan data collection rule under the Home Mortgage Disclosure Act.
Fannie Mae and Freddie Mac have already responded to the changes to Regulation C by making changes to their uniform residential loan application. The CFPB now proposes changes to Regulation B, a fair lending rule that prohibits unlawful discrimination, to bring that rule in line with the data collection requirements of Regulation C. In essence, the proposed changes (1) would give creditors flexibility on how they collect race and ethnicity information so that they can better comply with Regulation C and (2) updates model forms. The new rule would also have updated record retention requirements regarding newly-collectible data.
Comments on the proposed changes are due May 4.