The Consumer Financial Protection Bureau (CFPB) has issued a rule finalizing certain aspects of its May 2019 Notice of Proposed Rulemaking under the Home Mortgage Disclosure Act (HMDA).
According to a statement issued by the agency, the rule adds two years to the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA. The rule also clarifies partial exemptions from certain HMDA requirements which Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
The CFPB noted that for open-end lines of credit, the rule extends the current temporary coverage threshold of 500 open-end lines of credit until Jan. 1, 2022. For data collected in 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.
Furthermore, the CFPB provides partial exemptions under the EGRRCPA final rule and effectuates the burden relief for smaller lenders provided by the EGRRCPA by addressing certain issues relating to the partial exemptions that the August 2018 rule did not address.
This rule also finalizes the above aspects of the May 2019 Notice of Proposed Rulemaking, which proposed raising the permanent coverage thresholds for closed-end mortgage loans and open-end lines of credit. The CFPB added that it plans to issue a separate final rule in 2020 addressing these thresholds.
The Federal Financial Institutions Examination Council (FFIEC) recently published data on 2018 mortgage lending transactions at 5,683 financial institutions covered by the Home Mortgage Disclosure Act (HMDA). The data found total number of originated loans decreased by about 924,000 between 2017 and 2018, or by 2.6 percent. Refinance originations decreased by 23.1 percent from 2.5 million, and home purchase lending increased by 0.3 percent from 4.3 million.