WASHINGTON–The CFPB has announced that penalties for errors won’t be assessed for Home Mortgage Disclosure Act (HMDA) data collected in 2018. In addition, the agency said new rulemaking that reconsiders aspects of 2015 HMDA reporting rules will also be released.
Both credit union trade groups, which had requested the delay, greeted the announcement with support.
The CFPB said it does not intend to require data resubmission unless data errors are material, or assess penalties with respect to errors for data collected in 2018 and reported in 2019. In its statement, it also said it will open rulemaking to reconsider the HMDA rules, including “the institutional and transactional coverage tests and the rule’s discretionary data points.”
The CFPB pointed out that under its 2015 rule, financial institutions are required to collect and report additional mortgage information beginning on Jan. 1, 2018. In August 2017, the agency issued a final rule making technical corrections that clarified certain reporting requirements, and increased the threshold for collecting and reporting data on home equity lines of credit for two years.
“The Bureau recognizes the significant systems and operational challenges needed to meet the impending requirements under the rule,” the CFPB said. “Accordingly, for HMDA data collected in 2018 and reported in 2019, the Bureau does not intend to require financial institutions to resubmit data unless data errors are material, or to pay penalties with respect to data errors.”
The agency said that, accordingly, collection and submission of the 2018 HMDA data will “provide financial institutions an opportunity to focus on identifying any gaps in their implementation of the additional requirements and making improvements in their HMDA compliance management systems for future years.”
The CFPB further said it expects that any supervisory examinations of 2018 HMDA data will be diagnostic to help institutions identify compliance weaknesses, and will credit good-faith compliance efforts.
As for the reconsideration of the 2015 rules, the agency indicated potential rulemaking may re-examine lending-activity criteria that determine whether institutions are required to report mortgage data.
In response, NAFCU’s VP-Regulatory Compliance, Brandy Bruyere, said, "NAFCU supports the CFPB's decision not to require credit unions to resubmit HMDA data where submission errors are not material, with NCUA taking a similar approach. We also appreciate that the bureau will reconsider the scope of HMDA in a future rulemaking. The 2015 HMDA rule requires collecting a significantly greater number of data points than what was mandated by Dodd-Frank, and relief for smaller institutions was only temporary. NAFCU is glad to see the CFPB, under acting Director Mulvaney's leadership, is willing to hear credit unions' concerns. In the new year, we will continue to advocate for more credit union exemptions from this burdensome rule."