In what is a significant victory for CUNA's 360-degree advocacy efforts, two-thirds of all credit unions that would have been subject to home equity line of credit reporting under the Home Mortgage Disclosure Act (HMDA) will receive direct exemptions.
The Consumer Financial Protection Bureau (CFPB) published its final rule in the Federal Register Wednesday.
CUNA strongly advocated for the increased threshold in a comment letter, which applies to credit unions and community banks originating 500 or less home equity lines of credit through calendar years 2018 and 2019.The previous threshold was 100.
"The increased threshold is the direct result of the combined efforts of CUNA, the Leagues and credit unions’ strong advocacy, and we thank the CFPB for finalizing it," said CUNA President/CEO Jim Nussle. "We continue to believe that an expanded exemption for credit unions makes more sense, and will continue our work to achieve this goal going forward."
This is a temporary increase so the CFPB can consider whether to permanently adjust the threshold for data collected beginning Jan. 1, 2020.
CUNA maintained an expanded exemption for credit unions makes more sense given there has been no evidence of wrongful conduct and credit union HELOC data would ultimately be inconclusive because of their field of membership requirements.
CUNA believes elimination of those institutions with a “relatively low” number of HELOCs would be statistically insignificant to the collected data and would not hamper the bureau’s ability to monitor an institution.
According to CUNA, the exemption provides relief to 480 of 718 credit unions around the country that issue more than 100 but less than 500 HELOCs.