"HMDA reporting has become less about checking the box and more about defending data under scrutiny year-round. Manual review, scattered systems, and last-minute validation place an undue burden on lending and compliance operations. Automation supports verification and exception handling across the loan lifecycle, keeping your institution prepared and compliant all year long."
"The Federal Reserve named HMDA/Reg C violations as the top-reported issue for state member banks in 2024, representing 38% of all cited consumer violations. Furthermore, failing to provide sufficient data for one or more HMDA data fields was the most common issue cited by the FDIC. Risks tied to post-approval document errors and manual review are growing."
"Reg C of the Home Mortgage Disclosure Act (HMDA) requires financial institutions to collect specific data points on all applications, originations, and purchases of covered loans. HMDA and fair lending scrutiny has increased in recent years as regulators have placed increased pressure on financial institutions to deliver clean data with leaner teams."
HMDA reporting season concludes with March 2nd submission deadlines, but compliance work continues throughout the year. Financial institutions face mounting regulatory pressure to maintain clean HMDA data with reduced staffing. The Federal Reserve identified HMDA/Reg C violations as the top consumer violation for state member banks in 2024, representing 38% of all cited issues, while the FDIC cited insufficient data provision as the most common problem. Manual review processes, scattered systems, and last-minute validation create operational burdens on lending and compliance teams. Automation supports verification and exception handling across the loan lifecycle, enabling institutions to maintain compliance readiness year-round despite regulatory scrutiny.
Read at www.housingwire.com
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