Sunday, December 16, 2012

National Mortgage Database from the CFPB & FHFA – About Time!

National Mortgage Database from the CFPB & FHFA – About Time!

As an attorney who represents borrowers in mortgage loan disputes, mortgage relief matters, foreclosures cases, and other similar matters, I often experience great difficulties in attempting to navigate the maze that confronts almost anyone attempting to gain clear and true information regarding the ownership and holding of a mortgage loan note.  Mortgage loan servicers and noteholders, as well as their attorneys, routinely ignore requests to provide clear information as to the ownership of mortgage loans.  It is my hope that the intended National Mortgage Database, discussed below, will help to even the playing field and prevent mortgage loan servicers and lenders from hiding information from homeowners.

 The Consumer Finance Protection Bureau (“CFPB”) a fairly new Federal agency which got off to a slow start, but it now continues to move aggressively in its efforts to protect consumers.  The CFPB and the Federal Housing Finance Agency (“FHFA”) are going to join together to create a truly comprehensive National Mortgage Database.  The details are still being developed, but the database will supposedly include in information such as:

  1. The borrower’s financial and credit profile;

  2. The mortgage product (loan) and its terms;

  3. The property at issue; and

  4. The ongoing payment history on the loan.

The intention, apparently, is to include as much data as possible all the way back to 1998.  The National Mortgage Database will be updated every month. The stated reasons for the creation of the database are as follows:

  • to monitor the health of mortgage markets and consumers;

  • to provide insight into consumer decision making:

  • to monitor new and emerging mortgage products;

  • to consolidate data on first and second lien mortgages for a given borrower; and

  • to help policymakers understand consumer debt burden.

The National Mortgage Database is expected to make its debut in 2013. It is unclear, at this time, when the public will have access to the information – but the public IS supposed to have access.