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CFPB MORTGAGE DATABASE: INVASION OF PRIVACY OR MARKET NECESSITY? The Consumer Financial Protection Bureau's (CFPB) ambitious effort to build a National Mortgage Database was not taken lightly by lawmakers during a Senate committee hearing. Senators expressed discomfort over the idea of having a federal agency track consumer behavior, despite CFPB director Richard Cordray's continued emphasis on the anonymity the database will provide to individual consumers. The National Mortgage Database is a joint effort with the Federal Housing Finance Agency (FHFA) and will include information such as borrower profiles, payment history, and the mortgage product and terms, but it will not provide information that would give away the personal identities of borrowers, according to the federal agencies. Sen. Mike Johanns (R-Nebraska) expressed concern over the idea that somehow, someway, the government is getting control over information on how people pay their mortgage. Johanns also bluntly stated that for many people, the idea of the database is "creepy," adding that people are bothered by the fact that there is a federal agency collecting data on the behavior of individuals. Throughout the hearing, Cordray responded to privacy concerns by stressing consumer information will be anonymized and individuals will not be personally identifiable, explaining the bureau has no interest in watching individual consumers, but instead holds an interest in understanding how financial products impact consumers. Cordray also explained that without the database, the agency can't do its job. "You have to have information about consumers if you're 40 going to understand what is going on in the consumer marketplace. There's no two ways about this," he said. He also added that if Congress wants the bureau to write rules, the CFPB needs to have aggregate data and information on the market. "If we don't have data and information … we can't do that and we can't do our job, and you would be upset with us and rightly so," he said. One database on the consumer marketplace that the bureau has made available is its Consumer Complaint Database, which was expanded in March. According to Cordray, the main complaints found in the database were related to mortgage servicing. Second were credit card complaints. He also added that the practice of dualtracking is a great concern, noting that CFPB's new servicing rules that take effect in January 2014 will make a significant difference. STAT INSIGHT Investment units in the United States. Source: Census Bureau SURVEY: 22% OF AMERICANS HAVE NEVER CHECKED THEIR CREDIT REPORT Although credit scores play a crucial role in the homebuying process, a recent FindLaw.com survey found nearly a quarter of Americans have never bothered to check their credit report. Overall, 22 percent of the 1,000 adults surveyed said they've never checked their credit report even though credit reporting agencies are required to provide free copies when requested. Out of the 78 percent who have checked their report, just 46 percent checked within the last year. The survey also revealed women and households with higher levels of income are less likely to say they have never checked their credit report. When dividing responses by gender, FindLaw.com reported 25 percent of men never checked their report, while 18 percent of women shared the same answer. For households with annual incomes below $35,000, 37 percent of respondents said they have never checked their report. On the higher end of the income spectrum were respondents who made $100,000 or more, of which 12 percent said they've never checked their credit report. Households where annual incomes ranged from $50,000 to less than $75,000 represented the smallest share, with 11 percent stating they have never checked their report. When categorizing respondents by age, the survey revealed Americans ages 35 to 44 were the least likely to say they've never checked their report, with 13 percent falling into this category. "The accuracy of your credit report can have a major impact on your finances, and even your chances of obtaining a job," said Stephanie Rahlfs, an attorney and editor with FindLaw. com. "Inaccuracies in information such as late payments or defaults could play a major role in whether you can obtain a home mortgage, credit card, car loan, and other types of debt, and how favorable your terms will be, such as interest rates." Rahlfs added, "Credit reports are increasingly used in background checks, and could determine whether you are offered a job or rental housing." A report from the Consumer Financial Protection Bureau (CFPB) revealed that from July 21, 2011, to February 28, 2013, the CFPB handled around 6,700 credit reporting complaints out of 131,300 consumer complaints. KNOW THIS The S&P/Case-Shiller index posted its first double-digit gain since the housing boom of the last decade, up 10.2% annually in Q1.

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