FHFA, CFPB to Cooperate on National Mortgage Database

by devteam November 2nd, 2012 | Share

Two federal agencies announcedrnon Thursday that they are working together to create the first comprehensivernrepository of detailed mortgage loan information.  Once in place, the Federal Housing FinancernAgency (FHFA) and the new Consumer Financial Protection Bureau (CFPB) will usernthe National Mortgage Database to support their policymaking and research effortsrnand to gain a better understanding of emerging mortgage and housing trends.</p

The database will include</binformation spanning the life of a mortgage loan from origination throughrnservicing and include a variety of borrower characteristics including thernborrower's financial and credit profile, the mortgage product and terms, propertyrninformation, and the ongoing payment history of the loan.  It will not, however include personallyrnidentifiable information and the agencies said they will ensure that individualrnconsumers cannot be identified through the database or any datasets that may bernmade available to researchers or the public.  Data will be updated on a monthly basis andrntrack back as far as 1998.</p

The database will be built by matching a nationwide sampling of credit bureaurnfiles on borrower’srnmortgages andrnpaymentrnhistoriesrnwithrninformational filesrnsuch as the Home Mortgage Disclosure Act (HMDA) database, propertyrnvaluation models, and other data filesrnto create a comprehensive picture forrneach mortgage.  Work has begun on thernproject which is expected to be completed next year.  FHFA and CFPB said they are committed tornexploring ways to share the database with other agencies, academics, and thernpublic once it is complete.</p

The agencies said that although the mortgage market is the single largest marketrnfor consumerrnfinancernthere is a lackrnof comprehensive data available on a complete,rnnational scale.rn Informationrnis kept by multiple federal and state agencies and private vendors but there isrnno single database where all the information can be found.  Examples of how the National Mortgage Database can supportrnthernagencies’ work include:</p<ul class="unIndentedList"<liMonitoring loan performance so policy makers canrnbetter understand how various loan products are being used and how they arernperforming. </li</ul<ul class="unIndentedList"<liConducting surveys to betterrnunderstand consumer decision making and experiences across a range of topicsrnsuch as mortgage shopping or distressed homeownership. </li</ul<ul class="unIndentedList"<liMonitoring volume and performance of newrnproducts in the marketplace to help regulators identify potential problems orrnnew risks</li</ul<ul class="unIndentedList"<liPermitting analysisrnof how many homeowners have more than one mortgage and how they are performing.rn</li</ul<ul class="unIndentedList"<liUnderstanding thernimpactrnofrnconsumers' debt burden from data included about borrowers' other debtrnobligations. </li</ul

FHFA Acting Director Edward J. DeMarco</bsaid "This partnership between FHFA and CFPB will create a unique resource thatrnbenefitsrnthe government andrnpublicrnas we seek tornanswer importantrnquestions aboutrnhow the housing finance marketrnis evolvingrnand changing.  Thisrncollaborative effort is a greatrnwayrnto pool expertise andrnleverage resources forrnthernbenefit of regulatorsrnand the public."</p

“In order tornunderstand what isrngoingrnon in the mortgage marketplacernand develop appropriaternconsumerrnprotections, we mustrnhavernthe best facts andrndata,” said CFPB Director Richard Cordray. “Thisrndatabase will be a valuable tool for regulators andrnresearchersrnand we look forwardrntornpartnering with FHFA on this important work.”

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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