The scheduled release of the new Home Mortgage Disclosure Act data next year presents severe reputational risk for subprime lenders, and the Federal Reserve Board needs to prevent the misuse of the data, according to the American Financial Services Association."We are hopeful that the Board will do everything in its power to prevent the misuse of the data, up to and including public denunciations of subprime industry detractors who attempt to equate risk-based pricing with race discrimination," the AFSA says in a comment letter. The release of the 2004 HMDA data in the summer of 2005 will include pricing information on subprime loans for the first time. But it does not include data that will relate price to the actual risk of the loans. "We believe that this shortfall will permit industry detractors to draw erroneous conclusions concerning risk-based pricing of loans," the trade group contends. The AFSA is recommending that the Fed include a disclosure with the HMDA data that says the information "does not include several factors that are integral in determining the price of a loan."
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
2h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
4h ago -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
7h ago -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
7h ago -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18