Community Developments Newsletter Focuses on Using HMDA Data to Expand Mortgage Lending Opportunities

The Office of the Comptroller of the Currency (OCC) today published the Summer 2005 edition of the Community Developments newsletter, which provides various perspectives and strategies on how the revised Home Mortgage Disclosure Act (HMDA) reporting requirements could enhance mortgage-lending opportunities for national banks and their customers.

"Mortgage pricing data, which is reported under the new HMDA rules, can be a beneficial tool for banks committed to shaping financial products and services to fit the needs of all of their customers," said Comptroller of the Currency John C. Dugan. "This is particularly true when banks partner with experienced housing counseling organizations to improve the creditworthiness and financial savvy of potential homeowners."

The newsletter describes key changes to HMDA and how pricing information can be used to identify mortgage lending opportunities; reviews the OCC's recent mortgage lending guidelines to prevent abusive and predatory lending practices, particularly within third-party loan origination channels; and discusses the advantages to banks of establishing partnerships with housing counseling agencies. This issue also identifies nontraditional ways to establish creditworthiness.

The latest issue of Community Developments offers a useful resource to help lenders tap new markets while promoting compliance with consumer protection and anti-discrimination laws and regulations. The newsletter also includes news-you-can-use from the OCC's district offices, as well as helpful Websites.

The newsletter can be accessed quickly by selecting "Community Affairs" on the OCC Internet home page, located at www.occ.gov, and choosing "Publications and Resource Materials."