Case Study: HMDA & CRA Scrub

Big Picture

The Home Mortgage Disclosure Act (HMDA) is a federal law enforced by the Consumer Financial Protection Bureau (CFPB) that requires financial institutions to collect and report on their mortgage lending activity in an effort to promote fair lending practices in the mortgage market. This data is then made publicly available, so regulators, researchers, and consumers can analyze lending patterns and identify potential discrimination. 

Similarly, the Community Reinvestment Act was enacted to address lending disparities by encouraging financial institutions to serve the credit needs of all their communities. Lenders are evaluated by regulators from the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) on their lending record in various community segments which influences their overall rating.

CRA HMDA Support

Client Scenario

Deadlines loomed for a midsized regional bank facing the annual regulatory filing requirements of ensuring accurate and complete Home Mortgage Disclosure Act Loan Application Register (LAR) and Community Reinvestment Act (CRA) Loan Register (LR) data for submission. To tackle these challenges, the bank partnered with Asurity Advisors, a leading provider of regulatory compliance solutions. 

Asurity Solutions

Utilizing RiskExec’s industry-leading software platform, Asurity Advisors completed a full review of all applicable data fields within the respective files. A rigorous 20% quality control review followed, ensuring the accuracy of identified discrepancies or missing information. Moreover, Asurity Advisors’ team of subject-matter experts offered in-depth knowledge of HMDA and CRA reporting requirements, providing advisory services tailored to enhance data integrity, accuracy, and completeness in the client’s future reporting processes. By combining advanced technology with subject-matter expertise, Asurity Advisors offered a comprehensive solution that ensured accurate data submission, streamlined processes, and provided valuable insights for future process improvements.