CUNA on Tuesday expressed appreciation to the Consumer Financial Protection Bureau (CFPB) for its proposal to reconsider the home equity line of credit (HELOC) reporting threshold.
“CUNA thanks the CFPB for listening to credit unions, their members and their champions in Congress in considering changes to the HELOC threshold in Home Mortgage Disclosure Act reporting,” said CUNA President/CEO Jim Nussle. “We will continue to work with the bureau to ensure this and other regulatory reporting burdens in this rule are properly addressed.”
In a letter sent to several senators Monday, CFPB Director Richard Cordray said an upcoming proposal from CFPB would exempt institutions that originate fewer than 500 HELOCs in either of the previous 2 calendar years from reporting. The current threshold is 100.
Cordray cited increasing concerns from credit unions and other community financial institutions about the reporting burden.
Cordray said the bureau would issue the proposal within the next two weeks, and it would apply for reporting in 2018 and 2019.
In recent advocacy efforts with Congress, CUNA has shared its research that found 23% of credit unions that currently offer HELOCs indicate they plan to either curtail their HELOC offerings or stop offering them in response to reporting burdens.