Banks and Credit Unions Most Concerned about Accurate Data Capture with Home Mortgage Disclosure Act

29 October 2015

System upgrades, increased staffing, and other costs also driving anxiety, according to 2015 Wolters Kluwer Financial Services’ Regulatory & Risk Management Indicator

With recent finalization of the new Home Mortgage Disclosure Act (HMDA) data collection rules, determining how to accurately capture the new HMDA-required data fields is viewed as one of the top challenges that U.S. banks and credit unions face, according to results from the just-released “Regulatory & Risk Management Indicator” survey conducted by Wolters Kluwer Financial Services.

Overall, concerns about the new HMDA data collection rules generated a 67 percent rating by respondents, reflecting a degree of impact ranking of a “7” or higher on a 10-point scale. When asked to rank specific HMDA challenges, 64 percent of respondents cited the task of accurately capturing the new data fields as either their first or second biggest obstacle in complying with the new rules. Upgrading systems to accommodate the new requirements was rated among the top two concerns by 42 percent of respondents, with 39 percent viewing staff training—and 33 percent citing the time and costs associated with implementing a regulation of this magnitude—as one of their top concerns.

Conducted in August 2015, the “Indicator” generated 539 responses among banks, credit unions and other lenders.

“The responses demonstrate that lenders are becoming increasingly aware—and wary—of the ramifications of the new HMDA rules, including the many levels in which it will impact their organizations, including technology, operations, staffing and regulatory change management,” said Timothy R. Burniston, executive vice president, Wolters Kluwer Financial Services. “Now that the wait is over and we know what the new HMDA requirements entail, advance preparation is critical. Lenders are strongly encouraged to begin initiating enterprise planning to best position their organizations for compliance.”

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