Pendulums tend to swing, and the Fair Lending pendulum is no exception. Over the last few years, with the transition of HMDA rulemaking to the Consumer Financial Protection Bureau, and with the CFPB’s new final rule expanding HMDA data collection requirements, it’s clear that the pendulum has been swinging toward a tougher regulatory environment. With the change in administration, however, it appears that the pendulum is going to be heading back the other way. Precisely when and how far it will swing remains to be seen, but if you’ve been in the industry long enough, one thing seems certain: the Fair Lending pendulum doesn’t sit still for very long.
That said, certain requirements have been put in place, and until they are revoked or changed, the prudent course of action remains to be in compliance and not rely on “what might be.”