Using this information, lenders and community groups can work together to identify the particular segments of their communities that may need additional financial education or, perhaps, new, more-competitive products. What advice can I offer you mortgage lenders in light of these new HMDA disclosure requirements? Let me begin by reminding you of what regulators expect to find when examining mortgage lenders.
As with all business lines, the mortgage lending strategy needs to be clearly articulated at the board of directors level. The strategy that the board articulates should include such basics as the anticipated range of risk parameters intended in the mortgage portfolio. A portfolio limited to prime single-family residential loans would presume risk-management tools consistent with that portfolio.