CUNA wrote in support of a Senate bill that would provide regulatory relief from Home Mortgage Disclosure Act (HMDA) reporting requirements Wednesday, a bill titled the Home Mortgage Disclosure Adjustment Act (S. 1310). The bill, introduced by Sen. Mike Rounds (R-S.D.) would raise the threshold for reporting requirements to 500 closed-end and 500-open end mortgages.
“These [HMDA reporting] requirements impose significant burdens on credit unions beyond what Congress envisioned when enacting the Dodd-Frank Act. 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 meaningful additional protection,” wrote CUNA President/CEO Jim Nussle. “This proposal will undoubtedly add to the compliance costs credit unions must pay – a cost that was $7.2 billion in 2014 – and will lead to mortgage credit and other credit union services being that much more expensive and possibly less available.”
The Consumer Financial Protection Bureau currently requires credit unions that have originated 25 or more closed-end or 100 open-end mortgage loans the prior year to report HMDA data. The data points required by CFPB are dozens more than are required by Dodd-Frank.
S. 1310 is also co-sponsored by Sens. Jon Tester (D-Mont.), John Hoeven (R-N.D.), Joe Donnelly (D-Ind.), Heidi Heitkamp (D-N.D.) and John Kennedy (R-La.).