Welcome to the Compliance Cohort. We are a group of compliance professionals working to make compliance easier. Our goal is to take complex compliance concepts and put them in simple terms that apply to the real world. We are glad you have found us and look forward to collaborating in the future.
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All in HMDA
In this Compliance Clip (video), Adam discusses how the regulators are analyzing HMDA data for fair lending and explains why financial institutions should be analyzing their own data as well - even if they aren’t a HMDA reporter. This is a topic that was covered in our upcoming Fair Lending Hot Topics program.
On June 16, 2022, the FFIEC announced the availability of data on 2021 mortgage lending transactions reported under the Home Mortgage Disclosure Act (HMDA) by 4,338 U.S. financial institutions. Covered institutions include banks, savings associations, credit unions, and mortgage companies.
On June 13, 2022, the CFPB published the Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data. The guide will serve as a resource to support a range of stakeholders in accessing and using HMDA data, the largest source of publicly available data on mortgage lending in the United States.
In this Compliance Clip, Adam answers a question which had been a topic of debate before the CFPB finally issued a guidance, that is whether to list code 2 or code 3 on the HMDA LAR for when information about determinants are not available. And if you don’t know what is a determinant, watch this video to find out. A transcript of this video is now available.
On 3/29/2022, the FDIC announced that the Federal Financial Institutions Examination Council (FFIEC) had issued the 2022 edition of A Guide to HMDA Reporting: Getting It Right! for Home Mortgage Disclosure Act (HMDA)-related data collected in 2022 and reported in 2023. This longstanding compliance resource has regularly been used by financial institutions as a “go-to” HMDA resource as it can help financial institutions better understand HMDA requirements, including the data collection and reporting provisions.
In this Compliance Clip, Adam answers a HMDA question on whether income and property value should be included in the HMDA LAR when they are not the deciding factor, but are used in determining a credit decision. In other words, when income and property value were factors in the credit decision, but they're just a partial factor, should they be reported?
In this Compliance Clip (video), Adam answers a question that he recently received about reporting a temporary construction loan that has been modified on the HMDA LAR. Specifically, the initial loan was temporary financing and was designed to be replaced by a permanent loan, but was not sold on the Secondary Market as intended. Watch as Adam tries to simplify a somewhat confusing topic. A transcript of this video is now available.
On 1/27/22, the CFPB issued Version 1 of the 2022 Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart. The 38-page chart is intended to be used as a reference tool for data points required to be collected, recorded, and reported under Regulation C.
On December 23, 2021, the CFPB adjusted the HMDA exemption threshold from $48 million to $50 million. The adjustment is based on the 4.7 percent increase in the average of the CPI-W for the 12-month period ending in November 2021 (up from 1.6 in 2019 and 1.3 in 2020). Therefore, banks, savings associations, and credit unions with assets of $50 million or less as of Dec. 31, 2021, are exempt from collecting data in 2022.
On 12/17/21, the OCC issued the revised interagency Home Mortgage Disclosure Act (HMDA) examination procedures for determining compliance with HMDA and its implementing regulations. The interagency procedures update the April 19, 2019, FFIEC interagency examination procedures for the Home Mortgage Disclosure Act.
