WASHINGTON– The Consumer Financial Protection Bureau has issued a rule that finalizes certain aspects of its May 2019 Notice of Proposed Rulemaking under the Home Mortgage Disclosure Act (HMDA).
The rule extends for two years the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA, and also clarifies partial exemptions from certain HMDA requirements that Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
For open-end lines of credit, the rule extends for another two years, until January 1, 2022, the current temporary coverage threshold of 500 open-end lines of credit, the CFPB said. For data collection years 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, the Bureau added.
“For the partial exemptions under the EGRRCPA, the rule incorporates into Regulation C the clarifications from the Bureau’s August 2018 interpretive and procedural rule,” the CFPB said. “This final rule further 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.”
While CUNA said it appreciates the CFPB extending the increased reporting threshold on open-ended lines of credit, Alexander Monterrubio, senior director of advocacy and counsel, said CUNA “strongly recommends the Bureau take action to make the 500-line threshold permanent to reduce the regulatory burden credit unions face, allowing them to confidently extend credit to consumers across the country.”
Also Proposed
According to the CFPB, the rule finalizes the above aspects of the May 2019 Notice of Proposed Rulemaking, which also proposed raising the permanent coverage thresholds for closed-end mortgage loans and open-end lines of credit.
As CUToday.info reported earlier, on July 31, 2019, the Bureau reopened the comment period until October 15, 2019, for aspects of the May 2019 Notice of Proposed Rulemaking related to raising the permanent coverage thresholds. The Bureau intends to issue a separate final rule in 2020 addressing these thresholds.
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NCUA Response
Following the announcement by the CFPB, NCUA Chairman Rodney Hood said, “This is positive news for small credit unions. Regulators need to stay mindful of the reporting burdens we place on smaller institutions, and we should always work to tailor rules appropriately. This will allow small credit unions to focus resources on serving their member-owners, not burdensome government regulations.”