MINNEAPOLIS–Determining how to accurately capture the new HMDA-required data fields is viewed as one of the top challenges that U.S. banks and credit unions face, according to the Regulatory and Risk Management Indicator survey just released by Wolters Kluwer Financial Services.
Overall, concerns about the new HMDA data collection rules generated a 67% rating by respondents, reflecting a degree of impact ranking of a “7” or higher on a 10-point scale, according to Wolters Kluwer.
When asked to rank specific HMDA challenges, 64% of respondents cited the task of accurately capturing the new data fields as either their first or second biggest obstacle in complying with the new rules. Upgrading systems to accommodate the new requirements was rated among the top two concerns by 42% of respondents, with 39% viewing staff training—and 33% citing the time and costs associated with implementing a regulation of this magnitude—as one of their top concerns.
Conducted in August 2015, the Indicator generated 539 responses among banks, credit unions and other lenders.
“The responses demonstrate that lenders are becoming increasingly aware—and wary—of the ramifications of the new HMDA rules, including the many levels in which it will impact their organizations, including technology, operations, staffing and regulatory change management,” said Timothy R. Burniston, EVP with Wolters Kluwer Financial Services. “Now that the wait is over and we know what the new HMDA requirements entail, advance preparation is critical. Lenders are strongly encouraged to begin initiating enterprise planning to best position their organizations for compliance.”