Yesterday, the CFPB issued a Notice rescinding its 2020, Home Mortgage Disclosure Act (HMDA) Final Rule changing the loan volume reporting threshold for closed-end mortgage loans. This comes on the heels of a ruling by the United States District Court for the District of Columbia, in September of this year. The ruling stated the CFPB did not have the authority to change the original reporting threshold from 25 to 100.
The April 2020, the CFPB’s final HMDA rule increased the reporting threshold for closed-end mortgage loans from 25 covered loans originated in each of the prior two years to 100 covered loans originated in each of the prior two years.
At the time of the ruling the CFPB had not issued a public statement addressing the change and what it meant for the roughly 1,700 institutions it would affect. Since these institutions have not had polices, procedures, or process in place for the last three years, the CFPB has given a little bit of leniency.
In the announcement they state, “The CFPB recognizes that financial institutions affected by this change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with their reporting obligations. In these limited circumstances, in allocating the CFPB’s enforcement and supervisory resources, the CFPB does not view action regarding these institutions’ HMDA data as a priority.” They go on to say they will not cite or bring enforcement for any institutions that does not report 2020, 2021, or 2022 data.
However, with the few weeks left in 2022, intuitions will need to get prepared to start collecting the data come January 2023.
As always, we at COMPLIANCE RESOURCE are here to help, we have an extensive data base of HMDA courses. If you and your staff need to reacquaint yourself or brush up on what you need to do, consider us as a trusted partner and go to training vendor.