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The new Home Mortgage Disclosure Act (HMDA) data collection rules are putting banks and credit unions in a state of agitation, according to the new Regulatory & Risk Management Indicator survey conducted by Minneapolis-based Wolters Kluwer Financial Services.
According to the survey, concern over the new HMDA data collection rules scored a 67 percent rating by 539 respondents, reflecting a degree of impact ranking of a seven or higher on a scale of one-to-10. Regarding the specific HMDA challenges, 64 percent of respondents named accurately capturing the new data fields as either their first or second biggest obstacle in complying with the new rules, while upgrading systems to accommodate the new requirements was rated among the top two concerns by 42 percent of respondents. Less concern was raised with personal issues—39 percent viewed staff training as a major problem—and 33 percent cited the time and costs associated with implementing this major change to operations.
“The responses demonstrate that lenders are becoming increasingly aware—and wary—of the ramifications of the new HMDA rules, including the many levels in which it will impact their organizations, including technology, operations, staffing and regulatory change management,” said Timothy R. Burniston, executive vice president at Wolters Kluwer Financial Services. “Now that the wait is over and we know what the new HMDA requirements entail, advance preparation is critical. Lenders are strongly encouraged to begin initiating enterprise planning to best position their organizations for compliance.”