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National Monitoring Information needs Under the HMDA plus the ECOA

By Aaron Thompson, Senior Examiner, Federal Reserve Bank of Richmond

Introduction

Government monitoring information (GMI) is the mortgage applicant demographic data creditors must collect under Regulation B, which implements the Equal Credit chance Act (ECOA), and Regulation C, which implements the house Mortgage Disclosure Act (HMDA), whenever customers submit an application for specific home loans. The requirement that is regulatory loan providers to gather such information goes back to 1977 as soon as the Federal Reserve Board (Board) amended Regulation B to need creditors to collect monitoring details about age, intercourse, marital status, and competition or nationwide origin on home-purchase loans and refinancing deals. 1 The Board explained that these details would assist federal regulators detect home loan discrimination that is lending. Customer groups additionally thought that this information could be valuable in detecting home loan discrimination that is lending. 2

Likewise, in 1989, the banking institutions Reform, healing and Enforcement Act amended the HMDA to need creditors to gather competition, intercourse, and earnings information from candidates for mortgage loans to simply help 3 In 2002, the Board amended Regulation C to conform the number of battle and ethnicity information to modifications used by the working office of Management and Budget. 4 Overall, the range of this HMDA information collection demands is broader as compared to ECOA’s requirement due to the fact HMDA pertains to all home mortgages, including home-improvement loans. (mais…)