Kathleen Ryan Quoted in HousingWire Article, "Will HMDA replace TRID as the Most Dreaded Mortgage Acronym?"Kathleen C. Ryan
Kathleen Ryan was quoted in John Vong's HousingWire article, "Will HMDA replace TRID as the most dreaded mortgage acronym?," on April 6, 2016.
Maybe it’s a sign that our industry is finally coming to grips with the TILA-RESPA Integrated Disclosure (TRID) or “Know Before you Owe” rule because the Mortgage Bankers Association National Technology in Mortgage Banking Conference & Expo in Los Angeles this week wasn’t all TRID all of the time. A significant number of the sessions and hallway discussions focused on the next shoe to drop: the coming Home Mortgage Disclosure Act (HMDA) reporting rules.
Leading legal and compliance experts at several different HMDA sessions warned attendees that the amount of data and the unprecedented level of transparency that it will give regulators pose heightened compliance risks for banks and mortgage lenders. Even though the effective date of the new rules is still more than a year and a half away, the expert consensus at the conference was that it’s not too early to start developing comprehensive HMDA compliance and reporting solutions.
Kathleen Ryan from Buckley Sandler explained how the new data requirements will give regulators the ability to pursue redlining and CRA examinations on a more granular level. She began her presentation by quoting from the FFIEC’s press release that accompanied last year’s HMDA report. It stated: “The HMDA data alone cannot be used to determine whether a lender is complying with fair lending laws. They do not include many potential determinants of loan application and pricing decisions, such as the applicant’s credit history, the debt-to-income ratio, the loan-to-value ratio, and others.”