The Home Mortgage Disclosure Act  (HMDA) data collection rules have recently been finalized, but U.S. banks and credit unions are troubled with how to accurately capture the new HMDA-required data fields.
Earlier this month, the Consumer Financial Protection Bureau  (CFPB) announced the finalization of the HMDA reporting rule , that is expected to that will improve information about consumers’ access to residential mortgage credit.
“The Home Mortgage Disclosure Act helps financial regulators, the public, housing officials, and even the industry itself keep a watchful eye on emerging trends and problem areas in the nation’s mortgage market—the largest consumer financial market in the world,” CFPB Director Richard Cordray said. “With today’s final rule we are shedding more light to foster better understanding of the market, and also ensuring that lenders have sufficient time to come into compliance.”
Results from a Regulatory and Risk Management Indicator survey by Wolters Kluwer Financial Services  showed that system upgrades, increased staffing, and other costs are presenting challenges to banks and credit unions in regards to new HMDA requirements.
The survey, generated from 539 responses among banks, credit unions, and other lenders found that 67 percent of respondents indicated they had concerns about the HMDA data collection rules. This reflects a degree of impact ranking of a "seven" or higher on a 10-point scale.
Wolters Kluwer also asked respondents to rank specific HMDA issues. As of August 2014, a total of 63 percent of those surveyed noted that the task of accurately capturing new data fields as either their first or second biggest obstacle in complying with the new regulation. In 2013, the number was 46 percent.
The next problem, rated among the top two concerns that 42 percent of banks, credit unions, and other lenders pointed out was upgrading systems to accommodate the new requirements. Staff training was an issue with 39 percent of those surveyed, while 33 percent cited time and costs of implementing a regulation this large as one of their top concerns.
“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, EVP, 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.”
Click here  to view the survey results.