CFPB Proposes Changes to HMDA Rules

The Consumer Financial Protection Bureau (CFPB) is seeking comment on a proposal that would provide much needed relief to credit unions and small community banks under the Home Mortgage Disclosure Act (HMDA).

The CFPB today issued an Advance Notice of Proposed Rulemaking (ANPR) seeking information on the costs and benefits of reporting certain data points under HMDA. The proposal would raise the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under HMDA. Specifically, the CFPB proposes two alternatives that would permanently increase the HMDA reporting threshold for closed-end mortgage loans to either 50 or 100 loans (up from the current 25 loans), in either of the two preceding calendar years. For open-end lines of credit, the proposal would extend for another two years the temporary reporting threshold of 500 open-end lines of credit. Once that temporary extension expires, the proposal would set the open-end reporting threshold permanently at 200 open-end lines of credit.

“The public is encouraged to submit their comments on the proposals, which will be considered by the Bureau before the next step is taken,” said CFPB Director Kathleen L. Kraninger.

Comments on the proposal will be due 30 days after it is published in the Federal Register, which is expected in the coming days.