HMDA exemption static, TILA exemption lowered to $2.052B

December 22, 2015

WASHINGTON (12/22/15)--The Consumer Financial Protection Bureau issued two final rules last week regarding the annual threshold adjustments. The adjustments are under regulations that implement the Home Mortgage Disclosure Act (HMDA) and the Truth in Lending Act (TILA).

The HMDA regulation covers asset-size exemptions for credit unions and other financial institutions under Regulation C. The asset-size exemption will remain at $44 million for 2016. As a result, institutions with assets of $44 million or less as of Dec. 31, 2015, are exempt from collecting HMDA data in 2016.

An institution’s exemption from collecting data in 2016 does not affect its responsibility to report the data it was required to collect in 2015.

The bureau adjusted the asset-size threshold for certain creditors to qualify for an exemption from the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z, which implements TILA.

The asset-size threshold exemption for certain creditors will decrease to $2.052 billion for 2016, down from $2.060 billion.

As a result, these creditors with assets of less than $2.052 billion (including assets of certain affiliates) as of Dec. 31, 2015, that also meet other requirements of Regulation Z will be exempt from the requirement to establish escrow accounts for higher-priced mortgage loans in 2016.

The rule will be effective Jan. 1 and will determine whether a creditor is eligible for the exemption in 2016 and during a grace period for part of 2017.