Banks and Credit Unions Most Concerned about Accurate Data Capture with Home Mortgage Disclosure Act
System upgrades, increased staffing, and other costs also driving anxiety, according to 2015 Wolters Kluwer Financial Services’ Regulatory & Risk Management Indicator
With recent finalization of the new Home Mortgage Disclosure Act (HMDA) data collection rules, determining how to accurately capture the new HMDA-required data fields is viewed as one of the top challenges that U.S. banks and credit unions face, according to results from the just-released “Regulatory & Risk Management Indicator” survey conducted by Wolters Kluwer Financial Services.
Overall, concerns about the new HMDA data collection rules generated a 67 percent rating by respondents, reflecting a degree of impact ranking of a “7” or higher on a 10-point scale. When asked to rank specific HMDA challenges, 64 percent of respondents cited the task of accurately capturing the new data fields as either their first or second biggest obstacle in complying with the new rules. Upgrading systems to accommodate the new requirements was rated among the top two concerns by 42 percent of respondents, with 39 percent viewing staff training—and 33 percent citing the time and costs associated with implementing a regulation of this magnitude—as one of their top concerns.
Conducted in August 2015, the “Indicator” generated 539 responses among banks, credit unions and other lenders.
“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, 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.”
Wolters Kluwer Financial Services will host an in-depth examination of the 2015 “Indicator” survey results and their implications for bankers and credit unions in a webinar Thursday, Nov. 19 from 11 a.m. to noon CST. Presenters include Stephen Cross, senior director, Risk & Compliance Consulting Practice; Shannon Bennett, senior director for Financial Crimes Control Strategy; and Kris Stewart, principal regulatory consultant and director for the firm’s Compliance Professional Services practice. For webinar details, visit www.wolterskluwerfs.com/Indicator-Webinar.
About Wolters Kluwer Financial Services
Wolters Kluwer Financial Services provides customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions. With more than 30 offices in 20 countries, our prominent brands include: AppOne®, AuthenticWeb™, Bankers Systems®, Capital Changes, CASH Suite™, GainsKeeper®, NILS®, OneSumX®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, which had 2014 annual revenues of €3.7 billion ($4.9 billion), employs 19,000 employees worldwide, and maintains operations in over 170 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.