CFPB issues final HMDA rule

Mortgage & Real Estate

The Consumer
Financial Protection Bureau issued its final rule for the Home Mortgage
Disclosure Act, which could lessen the burden for some smaller lenders.

Under the new rule, the current temporary threshold for collecting
and reporting data about open-end lines of credit under HMDA will be extended
for two years until January 1, 2022. The current temporary threshold is 500
open-ended lines of credit. For data collection years 2020 and 2021, financial
institutions that originated fewer than 500 open-end lines of credit in either
of the two preceding calendar years will not need to collect and report data
with respect to open-end lines of credit.

Last year, the CFPB relaxed some of the requirements for the data collection and reporting stipulated by HMDA. The policy exempted insured depository institutions and credit unions that originated less than 500 closed-end mortgages or 500 open-end lines of credit in each of the two preceding years from certain HMDA reporting requirements.

Then in May, the CFPB proposed easing HMDA reporting requirements even more. The CFPB proposed new HMDA rules that would increase the HMDA reporting threshold for mortgages, meaning some smaller lenders and credit unions may not have to report their lending activities, at all.

Under the current rules, lenders that originate 25 mortgages
or more in a two-year period are required to report to their HMDA data to the

The new proposal establishes new reporting thresholds that
are under consideration. According to the CFPB, the new rules would raise the
HMDA reporting requirement to either 50 or 100 mortgages during a two-year

But while the CFPB said it expected the new threshold to go into effect on January 1, 2020, it is now saying it will not issue a final rule that covers these thresholds until 2020.