Fed to Explain Limits of HMDA Data

The Federal Reserve Board is planning to publish an article shortly after the 2004 Home Mortgage Disclosure Act is released that summarizes the new pricing data on subprime loans and explains its limitations, according to a Fed spokeswoman.The new HMDA data are scheduled for release in late August or early September, and shortly afterwards the article will appear in the Federal Reserve Bulletin, a quarterly publication. Mortgage company executives are very concerned that the new pricing data will lead to false accusations of predatory and discriminatory lending. And they say they want to ensure that the public understands that HMDA data can be misleading because credit scores, LTV ratios, and debt levels are not included. Industry groups also are looking for the Fed to play a role in this effort and provide guidance on what the new pricing data mean and don't mean, according to America's Community Bankers president Diane Casey-Landry. "I think the Fed is taking this responsibility very seriously," she said.