American Banker: Will HMDA data carve-out for small banks make discrimination easier?

American Banker, March 13, 2018: Will HMDA data carve-out for small banks make discrimination easier?

As critics of the Senate banking bill have rallied in recent weeks, an important argument has begun to gain traction: The legislation would make it easier for banks to discriminate.

The Senate bill calls for exempting banks and credit unions that provide fewer than 500 mortgages a year from having to report on a series of expanded data points required by the Home Mortgage Disclosure Act.

“Credit scores, the loan-to-value ratio, how long the prepayment penalty is — all of these things and more could give a clearer picture,” said John Taylor, president and CEO of the National Community Reinvestment Coalition.

“This isn’t a bill to reduce regulatory burden, this is a bank bill that allows them to continue to hide the data from the public,” said Taylor. “We are seeing a wholesale withdrawal by this administration, away from making homeownership available to working-class Americans.”

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