Several Democrats in both the Senate and House of Representatives have introduced a new bill to bring back an old Dodd-Frank reporting requirement on loan quality criteria, which was repealed last year when Republicans controlled each chamber of Congress.
The legislation, known as the Home Loan Quality Transparency Act of 2019, was introduced by Senator Catherine Cortez-Masto and Representative Nydia Velazquez and includes additional sponsors.
If enacted, the new bill would reinstate the Dodd-Frank mandate that required lenders producing more than 25 mortgages or 100 HELOCs per year to report detailed characteristics – including interest rates, points and fees, loan terms, and certain borrower characteristics (such as credit scores and ethnicity). In addition, the legislation would also require each loan to receive a unique identifier so it could be more easily tracked if sold to an investor.
As it currently stands, lenders are only required to issue reports if they process more than 500 mortgages or 500 HELOCs per year. According to Senator Cortez-Masto, this rollback effectively exempted 85% of banks and credit unions from reporting loan characteristics that she feels are vital to ensuring lending fairness.
For more information, including the full text and any updates, reference the bill on congress.gov.