Fed Warns of HMDA Data Limitations

Federal Reserve Board officials have started a public relations campaign to prevent lenders from being unfairly tarnished by the release of the new HMDA pricing data on subprime loans.The new Home Mortgage Disclosure Act data could show discriminatory lending patterns that, on closer examination of the loan files, don't exist, Fed staffer Glenn Canner told a Georgetown University conference. "We will be speaking as frequently as we can over the next few months trying to inform community groups and the press about the strengths and weaknesses of the data," he said. Starting March 31, individual lenders will make their HMDA disclosure reports available to the public upon request. At the same time, the Fed will issue a news release that explains the limitations of the pricing data. Despite the Fed's effort, Mr. Canner predicted that the news media "will have a field day with some lenders."