National Monitoring Information criteria Under the HMDA and also the ECOA

National Monitoring Information criteria Under the HMDA and also the ECOA

By Aaron Thompson, Senior Examiner, Federal Reserve Bank of Richmond

Introduction

National monitoring information (GMI) describes the mortgage applicant data that are demographic must gather under Regulation B, which implements the Equal Credit chance Act (ECOA), and Regulation C, which implements the house Mortgage Disclosure Act (HMDA), when customers submit an application for particular home mortgages. The requirement that is regulatory loan providers to get such information goes back to 1977 once the Federal Reserve Board (Board) amended Regulation B to need creditors to gather monitoring information about age, intercourse, marital status, and battle or nationwide beginning on home-purchase loans and refinancing deals. 1 The Board explained that these records would assist federal regulators detect home loan discrimination that is lending. Customer groups additionally believed that this information could be valuable in detecting home loan lending discrimination. 2

Likewise, in 1989, the banking institutions Reform, healing and Enforcement Act amended the HMDA to need creditors to gather battle, intercourse, and earnings information from candidates for home mortgage loans to simply help 3 In 2002, the Board amended Regulation C to conform the assortment of battle and ethnicity information to changes used by the working office of Management and Budget. 4 Overall, the range associated with the HMDA information collection needs is wider compared to ECOA’s requirement since the HMDA relates to all home mortgages, including home-improvement loans. Xem thêm