With the finalization of new Home Mortgage Disclosure Act data collection rules, Wolters Kluwer Financial Services today issued its HMDA Readiness Project Plan tool to help lenders prepare for the enormity of change that the new rules entail. The Consumer Financial Protection Bureau released final rules that mandate the collection of a significant number of new and changed data fields.
According to the company’s regulatory compliance experts, the extent and breadth of the required new fields will have considerable ramifications for financial institutions.
“Collecting, analyzing and reporting the additional data fields now required under the law will bring significant technology, operational, staffing, and regulatory change management challenges for lenders,” said Timothy R. Burniston, executive vice president, Wolters Kluwer Financial Services. “Our first order of business will be to work closely with lenders to help them understand the scope of these changes and possible implications for their businesses, as well as to guide them on meaningful steps they can proactively take to prepare for the required changes and to improve their analysis of mortgage lending data.”
While the new rules are effective January 1, 2018—with reporting of the newly finalized 2018 data fields by March 1, 2019—the company encourages lenders to initiate enterprise planning and readiness efforts early to best position them for complying with the new regulation requirements, including:
Wolters Kluwer Financial Services recommends that organizations use the HMDA Readiness Project Plan tool to help aid their initial organizational assessments and planning.
“Meeting the new HMDA requirements will be facilitated more readily for those organizations that have a strong compliance foundation in place,” said Burniston. “Given that the transition time for managing a regulatory change of this magnitude can never really be sufficient, lenders should take the long view and manage the time available to position their organization for a successful transition.”
A copy of the HMDA Readiness Project Plan is available at www.wolterskluwerfs.com/HMDA
Wolters Kluwer Financial Services provides customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions. With more than 30 offices in 20 countries, our prominent brands include: AppOne®, AuthenticWeb™, Bankers Systems®, Capital Changes, CASH Suite™, GainsKeeper®, NILS®, OneSumX®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, which had 2014 annual revenues of €3.7 billion ($4.9 billion), employs 19,000 employees worldwide, and maintains operations in over 170 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.