TUCSON, ARIZ.—Recently, Rep. Raúl M. Grijalva led a letter to Consumer Financial Protection Bureau (CFPB) Acting Director Mick Mulvaney urging him to improve information gathering processes to ensure better data on veterans under the Home Mortgage Disclosure Act (HMDA). Improved data collection will allow the Veterans Administration to better access and understand the barriers and issues that veterans face when buying a home and increase effectiveness of the VA Home Loan Program. The letter read, in part:
“As you open rulemaking to reconsider regulations implementing HMDA, we strongly urge your consideration of the merits of adding a veteran’s data collection point. With veteran homelessness, unemployment, and persistent wage stagnation across our country, the federal government must work to ensure that all veterans have a fair lending experience. Adding a veteran status to the HMDA will provide the information necessary to engage with veterans regarding the VA home loan process. We respectfully urge the Bureau of Consumer Financial Protection to act swiftly on this pressing issue.”
Veterans advocates have long argued for improved data to better serve veterans through all stages of the home-buying process.
“By improving the HDMA information gathering process, CFPB will assist the VA in identifying reasons why less than 10% of eligible veterans, take advantage of their VA Home Loan benefit, thus identify ways to increase usage of this wealth building tool to our veteran brothers and sisters, and further promoting additional opportunities for financial stability,” said G-II Varrato II, National Legislative Chairman, VAREP. “Furthermore the improved HMDA reporting of this group of mortgage applicants, turned mortgagees will help the VA develop enhanced mechanisms to dissuade and prevent predatory lending practices that harm our veteran community.”
Read the full letter here.
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