Author Topic: New federal database will track Americans' credit ratings, other financial information  (Read 195 times)

0 Members and 1 Guest are viewing this topic.

Offline flowers

  • Hero Member
  • ****
  • Posts: 18,372
http://washingtonexaminer.com/new-federal-database-will-track-americans-credit-ratings-other-financial-information/article/2549064

Quote

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 Federal Housing Finance Agency and 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.
Sign Up for the Watchdog newsletter!

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.

Critics, however, question the need for such a “vast database” for simple reporting purposes.

In a May 15 letter to FHFA Director Mel Watt and CFPB Director Richard Cordray, Rep. Jeb Hensarling, R-Texas, and Sen. Mike Crapo, R-Idaho, charged, "this expansion represents an unwarranted intrusion into the private lives of ordinary Americans."

Crapo is the ranking Republican on the Senate Banking, Housing and Urban Affairs Committee. Hensarling is chairman of the House Financial Services Committee.

Critics also warn the new database will be vulnerable to cyber attacks that could put private information about millions of consumers at risk. They also question the agency’s authority to collect such information.

Earlier this year, Cordray tried to assuage concerned lawmakers during a Jan. 28 hearing of Hensarling's panel, saying repeatedly the database will only contain “aggregate” information with no personal identifiers.

But under the April register notice, the database expansion means it will include a host of data points, including a mortgage owner’s name, address, Social Security number, all credit card and other loan information and account balances.

The database will also encompass a mortgage holder’s entire credit history, including delinquent payments, late payments, minimum payments, high account balances and credit scores, according to the notice.

The two agencies will also assemble “household demographic data,” including racial and ethnic data, gender, marital status, religion, education, employment history, military status, household composition, the number of wage earners and a family’s total wealth and assets.


Offline Chieftain

  • AMF, YOYO
  • Hero Member
  • ****
  • Posts: 9,633
  • Your what hurts??
This will never survive the inevitable court challenge.  Look for a judge to be asked for a restraining order while attorneys for plaintiffs sue.  There is no possible way this will pass Constitutional muster and it will die on the vine long before it can be implemented.


Offline SouthTexas

  • Hero Member
  • ****
  • Posts: 1,667
If the feds are loaning our money, they really SHOULD do credit checks on the borrowers, but there is no need to start another agency.

Experian, TransUnion, and Equifax do quite well.  Would imagine the $20 it costs to run a report would save us a lot over the government starting their own.  And it will probably be more accurate.


Offline flowers

  • Hero Member
  • ****
  • Posts: 18,372
This will never survive the inevitable court challenge.  Look for a judge to be asked for a restraining order while attorneys for plaintiffs sue.  There is no possible way this will pass Constitutional muster and it will die on the vine long before it can be implemented.
Hopefully you are correct.



Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf