All in HMDA

On October 10, 2019 the Consumer Financial Protection Bureau (CFPB) issued a rule which finalizes some parts of its May 2019 Notice of Proposed Rulemaking that we previously reported on. This new final rule extends for two years 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).

We received a question this week about when to expect more HMDA changes.  That’s right, more HMDA changes are on the horizon, but we really don’t know when to expect them.  As we reported back in May of 2019, the CFPB has issued two things that could result in more HMDA changes: 1) a Notice of Proposed Rulemaking as well as 2) an Advance Notice of Proposed Rulemaking. This article provides a summary of the possible changes, what to look for, and a reminder that comments on both potential changes are due on October 15, 2019.

HMDA Temporary Financing for Bridge Loans

In this Compliance Clip (video), Adam talks about HMDA applicability for bridge loans under the new temporary financing rules. While these rules have been around for a bit now, we are still seeing some confusion with reporting (or not) bridge loans as it relates to HMDA.

As we reported last month, the CFPB decided this summer to reopen two comment periods relating to the Home Mortgage Disclosure Act (HMDA). On July 31, 2019, the CFPB announced the reopening of the comment period for specific aspects of the proposed rule published by the Bureau in the Federal Register on May 13, 2019 (84 FR 20972) (May 2019 Proposal). In their announcement, the Bureau explained that one of the main reasons for reopening the original 30-day comment period is to allow commenters to be able to

HMDA Income for Cosigners (Video)

In this Compliance Clip (video), Adam explains how to report income under the Home Mortgage Disclosure Act in relationship to cosigners. The question we have this:

Question: A loan has one borrower and a co-signer. Do I report the income of just the borrower, or do I report the income of the co-signer since we wouldn’t do the loan with just the borrower?

The answer to this come from 1003.4(a)(10) of Regulation C. In this video, Adam breaks down the different HMDA requirements for reporting income as it relates to co-signers and breaks down a few key phrases as well as the applicable commentary to Regulation C.

On March 29, 2019, the Consumer Financial Protection Bureau (CFPB) released the Home Mortgage Disclosure Act (HMDA) Modified Loan Application Registers (LARs).  This data was published for about 5,400 financial institutions and is the first year in which the “expanded data fields” - required by the 2015 HMDA rule - are available for public viewing, though some data has been modified for public viewing for privacy purposes.

The modified LAR data is required by statute to be available by March 31 of each year.  Prior to the implementation of the 2015 HMDA rule, financial institutions had to make their Modified LARs available to members of the public who requested them.  The 2015 rule, which became effective on 1/1/2018, eliminated this requirement.

On March 25, 2019, the CFPB announced the availability of the FFIEC 2019 HMDA Getting it Right (GIR) Guide.  Updated each year, the GIR guide is a valuable resource for assisting all institutions in their HMDA reporting. It includes a summary of responsibilities and requirements, directions for assembling the necessary tools, and instructions for reporting HMDA data.

The full GIR guide can be found at…

The 2019 edition is effective January 1, 2019, and applies to 2019 HMDA data that must be submitted by March 1, 2020.  This updated edition reflects amendments made to HMDA by the Economic Growth, Regulatory Relief, and Consumer Protection Act and the 2018 HMDA interpretive and procedural rule issued by the Consumer Financial Protection Bureau.