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New Federal Database Will Track Americans' Credit Ratings, Other Financial Info
schwit1 (797399) writes "As many as 227 million Americans may be compelled to disclose intimate details of their families and financial lives — including their Social Security numbers — in a new national database being assembled by two federal agencies.
The Consumer Financial Protection Bureau posted an April 16 Federal Register notice of an expansion of their joint National Mortgage Database Program to include personally identifiable information that reveals actual users, a reversal of previously stated policy. The FHFA will manage the database and share it with CFPB. A CFPB internal planning document for 2013-17 describes the bureau as monitoring 95 percent of all mortgage transactions. FHFA officials claim the database is essential to conducting a monthly mortgage survey required by the Housing and Economic Recovery Act of 2008 and to help it prepare an annual report for Congress."
btw, YES, I do believe that the whole mortgage crisis was caused not by banks, who merely provide a tool, but by the people with bad credit history thinking they can buy the american dream.
I believe there were changes made in the 90s that mandated banks give out more loans
have you seen my sig? there are many others like it but none that are the same
No, actually it doesn't.
There's a whole section of the Constitution concerning Congressional Powers (and another for Executive Powers).
And then there's the "if we didn't mention it, it's a prerogative of the States of the People" part (10th Amendment.)
"I do not agree with what you say, but I will defend to the death your right to say it"
Full Disclosure: Worked at one of the money center banks in both Small Business and Credit Cards for six years and a foreign bank with a US presence for 4.
What is this thing and do I need to get my foil hat?
The database they are constructing is being used to conduct performance reviews on originated mortgages. The database won't pick you up unless you start a mortgage. Once you originate the mortgage this database is being put into place in order to monitor your performance on that mortgage and your corresponding financial condition.
Why are they doing this?
To stop the next credit crisis as the system would allow surveillance over mortgages originated by banking institutions. Today, banking regulators have broad powers to request information out of banks including everything that's going to be held in this database (personal information about you, you bet - your bank is pulling regular credit reports on you and the regulator can check your progress when they come in for an exam. Building the database would shortcut that request and help get a better view as to how institutions are originating. No longer would regulators have to show up and start poking around at a bank, but they could monitor the health of the banks portfolio.
Who would be against this? This sounds like a way to crack down on banks.
It is a way to crack down on banks and ensure that what's being originated isn't crap. Think about it. We could have better monitored the health of the entire mortgage system by have having this database in place. Those who are against this are most likely those who have a vested interest in ensuring that the mortgage industry opaque to regulators. Those concerned about privacy should realize all of this data is being collected today, I can pull your credit report and cross it with data from CoreLogic and do roughly the same thing. Yes it is all in one place and with a government entity, but so long as its being used responsibility I don't have a problem with it as it would create an excellent tool for finding bad actors within the mortgage industry.