#HMDA – Federal Financial Analytics

30 03, 2023

DAILY033023

Eliza Allen2023-03-30T17:27:30-04:00March 30th, 2023|2- Daily Briefing|

Yellen Calls for Bank, Nonbank Regulatory Rewrite

Implicitly confirming press reports that the White House will soon press for tougher bank rules, Treasury Secretary Yellen today said that, as beneficial as the rules imposed since the great financial crisis have been, more stringent standards are necessary.

Hsu Sets Dual OCC Mission: Safety, Fairness

In remarks today, Acting Comptroller Hsu emphatically echoed statements of other top regulators that the banking system is safe and sound, emphasizing that the OCC is monitoring the market and is prepared to use its tools to protect the system.

Basel Updates Global Liquidity, Operational Standards

Although the U.S. has still not even proposed the Basel IV “end-game” standards, the Basel Committee continues to refine them and today issued its latest set of FAQs.

White House Sets Reg-Reform Agenda

As anticipated early this morning, the White House has issued a statement calling on federal banking agencies to roll back rules the President describes as weakening “common-sense bank safety and supervision.”

Senate Dems Press Agencies to Strengthen Capital Rules

Following this week’s hearings (see Client Report REFORM218), Sens. Warren (D-MA), Blumenthal (D-CT), and Duckworth (D-IL) sent a letter to Vice Chair Barr, Chairman Gruenberg, and Acting Comptroller Hsu urging them to strengthen large-bank capital requirements.

CFPB Stands By Its Small-Business Reporting Rules

Despite strong industry and GOP opposition, the CFPB today finalized its small business data collection rulemaking in a sweeping final rule the Bureau says will increase transparency in small business lending, promote economic …

24 01, 2022

GSE-012422

Arezou Rafikian2023-04-21T14:29:12-04:00January 24th, 2022|4- GSE Activity Report|

The Processing Problem

A new Federal Reserve Bank of Atlanta study adds another element to those prior research argues are evidence of widespread racial discrimination in U.S. mortgage finance. It adds processing speed to the list of discriminatory practices that now is said to include denial disparities, pricing, and refi rates. The paper’s findings cast particular aspersions on loans originated for the GSEs, but it does so at a time when PLS distorted the market in terms of both underwriting and processing speed. Its conclusions that GSE practices exacerbated discrimination and that processing times added to the problem are not, in our view, clearly validated by the data, which suggest to us that processing speed is an artifact of other market factors (e.g., discriminatory steering by some lenders, GSE AU and put-back power).

GSE-012422.pdf…

24 01, 2022

FedFin: The Processing Problem

Arezou Rafikian2023-04-21T14:29:25-04:00January 24th, 2022|The Vault|

A new Federal Reserve Bank of Atlanta study adds another element to those prior research argues are evidence of widespread racial discrimination in U.S. mortgage finance.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.…

13 01, 2022

Daily011322

Arezou Rafikian2023-04-24T15:31:22-04:00January 13th, 2022|2- Daily Briefing|

CBDC Said to Conquer Another Operational Hurdle
he BIS and Swiss National Bank today announced that “Project Helvetia” – their CBDC pilot – has so successfully handled an array of transactions as to prove that DLT can be successfully adopted across traditional financial products and services.

Dems Demand Still-Tougher CFPB Small-Business Anti-Discrimination Data
Senate Banking Chairman Brown (D-OH), Small Business Committee Chair Cardin (D-MD), and other senior Democrats today filed a formal comment calling on the CFPB to advance its controversial small-business reporting proposal (see FSM Report LENDING10).

Hsu Reiterates Case for Bank-Like Crypto Regs
Acting Comptroller Hsu today elaborated on the risks U.S. regulators have identified for crypto assets, reiterating the need to apply bank regulation to stablecoin issuers (see Client Report CRYPTO16).

Daily011322.pdf…

18 11, 2021

FAIRLEND10

Arezou Rafikian2023-05-26T10:30:48-04:00November 18th, 2021|1- Financial Services Management|

HMDA Rewrite

The CFPB has followed a study earlier this year finding significant mortgage product and price discrepancies based on race or ethnicity with a request for input (RFI) on the HMDA data on which the study was based. This is a preliminary effort with no immediate regulatory or supervisory consequences, but it likely presages a significant HMDA-regulatory rewrite in no later than 2023 to provide still more firepower for ongoing CFPB, Department of Justice, and bank-regulatory actions against credit discrimination and redlining.

FAIRLEND10.pdf…

18 11, 2021

FedFin Analysis of: HMDA Rewrite

Arezou Rafikian2023-05-26T10:31:04-04:00November 18th, 2021|The Vault|

The CFPB has followed a study earlier this year finding significant mortgage product and price discrepancies based on race or ethnicity with a request for input (RFI) on the HMDA data on which the study was based. This is a preliminary effort with no immediate regulatory or supervisory consequences, but it likely presages a significant HMDA-regulatory rewrite in no later than 2023 to provide still more firepower for ongoing CFPB, Department of Justice, and bank-regulatory actions against credit discrimination and redlining.

The full report is available to retainer clients. To find out how you can sign up for the service, click here.…

17 11, 2021

GSE-111721

Arezou Rafikian2023-05-26T10:50:27-04:00November 17th, 2021|4- GSE Activity Report|

The Anti-Discrimination Data Drive

As noted yesterday, the CFPB has opened its HMDA rules to a raft of changes. None of these is likely to come fast, but more than a few of them could change mortgage origination, underwriting, and securitization for the better in terms of inclusion and the worse in terms of cost.

GSE-111721.pdf…

16 11, 2021

Daily111621

Arezou Rafikian2023-05-26T10:56:42-04:00November 16th, 2021|2- Daily Briefing|

Basel Proposes Global Climate-risk Management, Supervision Principles
As anticipated, the Basel Committee today proposed climate-risk management and supervision principles sure to guide both the Fed and OCC, even in just proposed form, as the U.S. agencies finalize near-term U.S. guidance in this high-priority arena.

FRB-NY Staff: U.S. Banks Now Even More Resilient
A new post from the Federal Reserve Bank of New York’s blog assesses bank resilience through the pandemic, concluding that large banks are even more resilient now than before thanks to post-2008 rules and post-2020 market backstops.

HFSC Republicans Condition CBDC on Stablecoin, Private Sector
HFSC Republicans have now laid out their principles for any U.S. CBDC, demanding that any Fed-issued CBDC maintain the U.S. Dollar’s reserve currency status and the U.S. payment system’s preeminence.

Senate GOP Tackles USPS Banking Pilot Program
Senate Banking Ranking Member Toomey (R-PA) today described postal banking as about the worst possible idea. Joined by other Republicans, Mr. Toomey wrote to the Postmaster General, questioning USPS authority to offer its recent pilot and challenging its mission-relevance.

CFPB Plans HMDA-Data Do-Over
Reflecting the President’s executive order on racial equity, the CFPB has now accelerated its fair-lending efforts with a request for views on how best to retool HMDA to better prevent mortgage discrimination.

FRB Presidents: Fund-Access, Financial-Literacy Improvements Needed
At today’s racism and the economy virtual event hosted by the Minneapolis Fed, FRB Atlanta President Bostic highlighted work by his Reserve Bank’s Special Committee on Payments Inclusion to show the Fed’s dedication in this …

8 10, 2021

Daily100821

Arezou Rafikian2023-06-20T15:21:05-04:00October 8th, 2021|2- Daily Briefing|

Comment Date Set for Controversial Small Business Lending Disclosures NPR
The Federal Register includes the CFPB’s small business lending data collection proposal, with comments now due January 6.

BIS Highlights Data Risk due to DeFi, AI, HFT
The head of the BIS Innovation Hub, Benoît Cœuré, focused not only on the structural and systemic risks posed by DeFi and bigtech, but also emerging supervisory threat.

G20 Data Gaps Initiative Comes Up Short
With recent blow-ups such as Archegos and Evergrande heightening regulatory concerns about aggregate exposures, the FSB and IMF issued their sixth progress report on the G20 Data Gaps Initiative.

Daily100821.pdf…

8 09, 2021

FedFin on: Small-Business Lending Disclosures

Arezou Rafikian2023-08-21T13:45:34-04:00September 8th, 2021|The Vault|

Turning again to a provision in the 2010 Dodd-Frank Act, the Bureau of Consumer Financial Protection has issued a sweeping proposal to implement small-business and small-farm lending disclosure requirements akin to those long required under the Home Mortgage Disclosure Act (HMDA). Although the law focuses on lender reports to discern different loan-approval rates based on gender or ethnic/racial groups, the notice of proposed rulemaking (NPR) goes farther also to require extensive detail on loan amounts and pricing on approved loans a borrower chooses not to accept. Data would be required from all but the very smallest bank and nonbank lenders.

The full report is available to retainer clients. To find out how you can sign up for the service, click here.…