Together with state bankers associations from all 50 states and Puerto Rico, the American Bankers Association today called on the Consumer Financial Protection Bureau to delay the implementation of the new Home Mortgage Disclosure Act requirements to provide bankers and third-party service providers more time to comply with the complex rule and to ensure that consumer data is protected. The rule is set to take effect on Jan. 1, 2018. The groups asked the bureau to announce its intention for a delay within the next month.
The associations noted that the recent proposed changes to the rule — many of which were substantive — have added to its complexity, and will require third-party software providers to make additional changes to help banks comply, which would make the Jan. 1 compliance deadline unfeasible. They also pointed out that the CFPB has not conducted appropriate reviews or engaged bankers in discussing solutions.
The recent Treasury report on financial regulation raised similar concerns banks’ ability to comply with the rule, and whether borrower data would be adequately protected. The associations echoed the department’s call for implementation to be postponed “until borrower privacy is adequately addressed and the industry is better positioned to implement the new requirements.” For more information, contact ABA’s Rod Alba.