National Mortgage Database
In 2012, the Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB) began “a major initiative to build a national mortgage database on first-lien single-family mortgages” to provide the agencies useful data for “policy making and research efforts and help regulators better understand emerging mortgage and housing market trends.”
The database will be comprehensive, and could be used in a number of ways, including:
- measuring effects of the subprime mortgage crisis
- how to monitor new and emerging products in the mortgage market
- how to monitor the relative health of mortgage markets and consumers
- loss mitigation
- borrower counseling
- loan modification programs
- suitability and sustainability
- affordable lending
- stress tests
- default modeling
The database will contain information including:
- loan performance from origination to termination
- loan terms
- property value and characteristics
- membership in federal loan programs
- sale in the secondary mortgage market
- information on all loan cosigners, including second liens, other past and present mortgages, and credit scores from one year before origination to one year after termination.
Impact to the Industry
A National Mortgage Database can be a comprehensive tool for federal regulators to help ensure that the residential mortgage market is safe, sound and stable for consumers. It also serves as a resource for research and analysis of the mortgage market, helping to forecast and avoid future crises. At the same time, these tools should not replace the title industry’s ability to insure and facilitate state law governance of transfer of interests in real property.
For more information about the National Mortgage Database, click here.