The CFPB recently issued in final form two elements of a May 2019 Home Mortgage Disclosure Act (HMDA) proposed rule.
As previously reported, the May 2019 proposal would:
- Increase the volume threshold that triggers reporting of closed-end mortgage loans from at least 25 originated loans in each of the prior two calendar years to at least 50 originated loans in each of the prior two calendar years. (The CFPB also requested comment on a 100 loan threshold.)
- Increase the volume threshold that triggers reporting of open-end, dwelling-secured lines of credit to at least 200 originated lines of credit in each of the prior two calendar years.
- Continue until January 1, 2022 the temporary volume threshold that triggers reporting of open-end, dwelling-secured lines of credit of at least 500 originated lines of credit in each of the prior two calendar years.
- Incorporate into Regulation C the interpretative and procedural rule previously issued by the CFPB to implement the partial exemption from HMDA reporting for smaller volume bank and credit union lenders adopted in the Economic Recovery, Regulatory Relief, and Consumer Protection Act (Growth Act).
The final rule includes the last two elements of the May 2019 proposal. As reported previously, during the summer the CFPB extended the comment period for the first two elements of the proposal until October 15, 2019 in order to allow interested parties to examine the 2018 HMDA data before submitting comments. The 2018 HMDA data was released at the end of August 2019. The CFPB advises that it intends to issue a separate final rule in 2020 to address the threshold for closed-end loans and permanent threshold for open-end lines of credit.