The Consumer Financial Protection Bureau issued a final rule today raising the loan-volume coverage thresholds for financial institutions that must report data under the Home Mortgage Reporting Act (HMDA).
The final rule, amending Regulation C, increases the permanent threshold for collecting and reporting data about closed-end mortgage loans from 25 to 100 loans effective July 1, 2020. The final rule will also amend Regulation C to increase the permanent threshold for collecting and reporting data about open-end lines of credit from 100 to 200, effective January 1, 2022, when the current temporary threshold of 500 loans expires.
HMDA and its implementing regulation require certain financial institutions to report data about mortgage loan applications, originations and their purchases. The data serve HMDA’s purposes, which are to help determine whether financial institutions are serving the housing needs of their communities, to assist public officials in distributing public-sector investment so as to attract private investment to areas where it is needed, and to assist in identifying possible discriminatory lending patterns and enforcing anti-discrimination statutes.
The final HMDA rule may be found here: https://files.consumerfinance.gov/f/documents/cfpb_final-rule_home-mortgage-disclosure_regulation-c_2020-04.pdf.
A summary of the final HMDA rule may be found here: https://files.consumerfinance.gov/f/documents/cfpb_hmda_executive-summary_2020-04.pdf.