Under rules that are scheduled to take effect in January 2018, financial institutions are generally required under the Home Mortgage Disclosure Act (HMDA) to report home equity lines of credit if they made 100 such loans in each of the last two years. Under the new proposal, the threshold would increase to 500 loans for 2018 and 2019, at which time the CFPB could consider whether to make this adjustment permanent.
The CFPB stated this proposal came after concerns were raised by community banks and credit unions, and the agency is seeking comment on whether to postpone collection of this information for smaller-volume institutions in order to study whether the threshold should be adjusted permanently. The CFPB estimated that the temporary 500-loan threshold would still capture about three-quarters of the home-equity lending market, down from about 88 percent at the 100-loan threshold.
The public comment period is open until Monday, July 31.