CUNA advocacy has led to the Consumer Financial Protection Bureau (CFPB) reversing its position on Home Mortgage Disclosure Act (HMDA) data reporting requirements in 2018. The bureau issued a statement Thursday that it intends to open a rulemaking to reconsider various aspects of the bureau’s 2015 HMDA rule and will not assess penalties for errors in data collected in 2018.
CUNA and the leagues have strongly advocated in dozens of meetings and letters, for this regulatory relief for credit unions. In letters to both former CFPB Director Richard Cordray and Interim CFPB Director Mick Mulvaney, CUNA outlined why changes to HMDA needed to be made to allow credit unions to continue to serve consumers.
“This is a significant win for credit unions, as CUNA has urged the bureau for years for relief from HMDA requirements that place a heavy burden on credit unions,” said CUNA President/CEO Jim Nussle. “Credit unions will be unduly burdened by the data reporting requirements finalized in October 2015, and CUNA will fully engage with the bureau during this rulemaking process to ease these reporting requirements on credit unions."
Thursday’s announcement indicated the bureau intends to engage in a rulemaking to reconsider various aspects of the 2015 HMDA rule. Specifically, it may re-examine lending activity criteria that determine whether institutions are required to report mortgage data.
According to the bureau, this rulemaking may re-assess the additional information that the rule requires beyond new data points specified in the Dodd-Frank Act. CUNA has long pushed the bureau to limit reporting requirements to those in the Dodd-Frank Act. The October 2015 HMDA rule requires reporting of twice as many data points.
At CUNA’s urging both members of Congress and NCUA have also called on the CFPB to make changes to its HMDA rule. CUNA recently supported a bill to delay HMDA reporting requirements until Jan. 1, 2019, in turn postponing the first mandatory reporting date until March 2020.
The change is consistent with CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation by removing barriers to allow credit unions to more effectively serve their members.