Consumer bureau proposes new mortgage disclosure rule

The Consumer Financial Protection Bureau (CFPB) is proposing new mortgage requirements.

Stemming from a Dodd-Frank requirement, many of the changes to the Home Mortgage Disclosure Act (HMDA) rule are scheduled to go into effect in 2018. 

But the CFPB proposed Thursday to “clarify” what sort of information lenders must collect from borrowers as well as from people who apply for a home loan but are rejected.

{mosads}The information could help the CFPB determine lending patterns in different neighborhoods.

“The public and regulators can use the information to monitor whether financial institutions are serving the housing needs of their communities, to assist in distributing public-sector investment so as to attract private investment to areas where it is needed, and to identify possible discriminatory lending patterns,” the CFPB said.

The public has 30 days to comment.