On September 27, the Consumer Financial Protection Bureau (CFPB) released its 2022 Home Mortgage Disclosure Act (HMDA) data. The data release forms part of a recent report titled 2022 Mortgage Market Activity and Trends, which delves into residential mortgage lending activity and trends for the current year. This recent HMDA data, according to an update by Orrick, Herrington & Sutcliffe LLP reflects the fifth consecutive year of data incorporating amendments to the HMDA, legislated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Originating as part of the regulatory measures in the wake of the 2008 financial crisis, the Dodd-Frank Act aimed to create accountability and transparency in the financial ecosystem. Over the years, various amendments were made to HMDA under this act, aiming to provide the public and regulators with information that can help understand emerging trends and identify discriminatory lending patterns.
Notably, the 2022 HMDA data marks another important milestone in trending analysis as it gives practitioners and regulators an opportunity to better study the impacts of legislative changes. The insights derived could provide valuable feedback loops to update or maintain current regulations based on real-world data and effects.
While the detailed analysis of the 2022 HMDA data is yet to be fully undertaken, the release itself underscores the continued regulatory focus on transparency in lending. This serves as an important reminder for institutions to ensure their own HMDA data collection and reporting processes are robust and compliant with current legal requirements.