Government-created database to help monitor mortgage loans

A new partnership between the Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) will work to create the National Mortgage Database that will include various loan information for industry members and regulators to utilize.

A new partnership between the Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) will work to create the National Mortgage Database that will include various loan information for industry members and regulators to utilize.

The new initiative will be used to support policymaking and other research to create better regulations via housing market factors and changing mortgage trends.

"In order to understand what is going on in the mortgage marketplace and develop appropriate consumer protections, we must have the best facts and data," said Richard Cordray, director of CFPB. "This database will be a valuable tool for regulators and researchers and we look forward to partnering with FHFA on this important work."

When seeking solutions to questions regarding the housing market, having separate systems could create varying answers. According to the report, the database will not include personal information and strict precaution will be used to ensure consumers won't be easily identified through the information which will be distributed to researchers and the public. Together, FHFA and CFPB will collect information from credit bureaus on mortgages, payment history, property valuation models and other data that will provide figures necessary for more accurate research.

While multiple agencies have collective databases that benefit local housing industries, there is no one database for national use. Researchers will be able to closely monitor loan performance with this initiative, which can help policymakers understand how products are being used and in what way. Agencies will also be able to conduct better surveys to be completed by consumers on topics ranging from mortgage shopping to distressed homeownership.

As consumer credit and debt remain a vital component to housing markets nationwide, the database will also include data regarding debt obligations for other investments, including loans for vehicles and higher education. Monitoring trends will enable agencies to create better programs for consumers burdened by debt.

The database will also serve as the first single collection of information to provide both details of both first and second lien mortgage for borrowers.

"This partnership between FHFA and CFPB will create a unique resource that benefits the government and public as we seek to answer important questions about the housing finance market is evolving and changing," said FHFA acting director Edward DeMarco.



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