CUNA wrote to Rep. Tom Emmer (R-Minn.) Wednesday in support of his bill that would provide regulatory relief from some Home Mortgage Disclosure Act (HMDA) reporting requirements. The Home Mortgage Disclosure Adjustment Act (H.R. 2954) would raise the reporting threshold for certain HMDA requirements.
“Your legislation would raise the threshold that triggers these reporting requirements to 1,000 closed-end and 2,000 open-end mortgages,” CUNA President/CEO Jim Nussle wrote. “This would provide much needed relief, particularly to smaller credit unions, which is why we strongly support the legislation.”
The Consumer Financial Protection Bureau (CFPB) finalized amendments to its regulation governing HMDA in October 2015, significantly increasing the amount of data mortgage lenders will have to provide starting January 2018.
Credit unions generating 25 or more closed-end mortgage loans in the prior year will be required to report dozens of data points in addition to what is required by Dodd-Frank.
“These requirements impose significant burdens on credit unions beyond what Congress envisioned when enacting the Dodd-Frank Act,” Nussle wrote. “Credit unions will undertake significant expense to bring their systems into compliance with a rule that does very little--if anything--to provide credit union members with additional protection and which may, depending on which additional data is ultimately made public, expose consumers to potential identity theft or fraud.”
Nussle also noted that the CFPB’s requirements will undoubtedly add to the compliance costs credit unions must pay, costs that amounted to $7.2 billion in 2014, and led to mortgages and other services being more expensive and potentially less available.