CFPB's Final Policy on Privacy Modifications of Public 2018 HMDA Data

On Dec. 21, 2018, the CFPB issued final policy guidance on how data collected under the CFPB’s HMDA rule will be modified for privacy reasons before it is made public.  This policy applies to data collected in 2018 that the Bureau intends to make public in 2019.

Under this final policy, the CFPB will exclude from the public 2018 HMDA data: (1) the ULI (or non-ULI for exempt depository institutions); (2) application date; (3) the date of action taken; (4) property address; (5) credit score; (6) NMLS number; and (7) AUS result.  The CFPB also will exclude free-form text fields for the following data: (1) race; (2) ethnicity; (3) credit scoring model; (4) denial reason; and (5) the AUS name.  The CFPB will also modify the following data fields to make them less precise (e.g., by reporting ranges) rather than the actual amount: (1) loan amount; (2) age; (3) DTI (except between 36 and 50%); (4) property value; and (5) the number of dwelling units.

The CFPB also noted that it plans to issue a rule to address the modifications of public HMDA data for privacy reasons “more definitively.”  This rulemaking will reconsider the decisions in this final policy.  As I’ve written about before, the CFPB had already announced this rulemaking in its Fall 2018 rulemaking agenda and scheduled the issuance of a proposed rule for May 2019. 

This policy finalizes a proposed policy the Bureau issued in September 2017.  See 82 FR 44586 (Sept. 25, 2017).  The final policy is available at: https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-announces-policy-guidance-disclosure-home-mortgage-data/.

Please let us know if you would like to discuss this final policy or any other HMDA compliance or fair lending issues.