A&B ABstract: In a final rule issued on October 10, 2019, the CFPB amended Regulation C under the Home Mortgage Disclosure Act to incorporate exemptions created by the Economic Growth, Regulatory Relief, and Consumer Protection Act, among other changes.
Effective January 1, 2020, the Consumer Financial Protection Bureau issued a final rule under the Home Mortgage Disclosure Act (“HMDA”), addressing certain exemptions from HMDA’s reporting requirements.
Threshold Exemption for Reporting on Open-End Loans
The CFPB has extended to January 1, 2022, an increased threshold for reporting HMDA data on open-end loans. Specifically, the rule maintains the threshold of 500 transactions below which a lending institution is not required to report loan data. (Thus, an entity originating fewer than 500 transactions is exempt.) However, if a financial institution that is under the 500-transaction threshold chooses to report any excluded applications for, or originations or purchases of open-end lines of credit, it must report all such transactions.
Incorporation of Partial Exemptions Under the Regulatory Relief Act
The final rule incorporates into Regulation C provisions of an August 2018 interpretive and procedural rule adopted pursuant to the Regulatory Relief Act. Specifically, an insured depository institution or credit union covered by a partial exemption may report exempt data fields as long as it reports all data fields within any exempt data point for which it reports data. Section 1003.3(d) makes a partial exemption available to an entity that, in each of the preceding two calendar years, originated fewer than 500 closed-end mortgage loans or 500 open-end lines of credit.
The final rule also include clarifications:
- That only loans and lines of credit that are otherwise reportable under HMDA count towards the thresholds for the partial exemptions;
- Of which data points the partial exemptions cover; and
- On the applicability of the partial exemptions to insured depository institutions with less-than-satisfactory CRA examination histories.
In its rule announcement, the CFPB indicated that it will address permanent coverage thresholds for both closed-end mortgage loans and open-end lines of credit in a separate final rule. We will continue to monitor the rulemaking process.