The Consumer Financial Protection Bureau (CFPB
) has responded to financial services industry concerns by temporarily changing the reporting requirements in the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule for banks and credit unions that issue home-equity lines of credit.
Under rules that are scheduled to take effect in January, financial institutions would have been required report home equity lines of credit if they made 100 such loans in each of the last two years. With this updated rule, the threshold was raised to 500 loans through calendar years 2018 and 2019. The CFPB stated it would consider whether to make a permanent adjustment to this aspect of HMDA in 2020.
“The Home Mortgage Disclosure Act is a vital source of information on the health and fairness of the mortgage market,” said CFPB Director Richard Cordray. “Today’s amendments show that the Consumer Bureau is committed to ensuring that financial institutions are able to comply with the rule, and to promoting transparency across the largest consumer financial market in the world.”
The CFPB also offered a clarification on the information that financial institutions are required to collect and report about their mortgage lending. According to the agency, these clarifying certain key terms including “temporary financing” and “automated underwriting system.” Another change is designed to facilitate reporting the census tract of a property, using a geocoding tool that will be provided on the Bureau’s website.