CUNA keeps working for CU exemption as HELOC threshold finalized
The Consumer Financial Protection Bureau finalized its temporary increase of the reporting threshold for data required under the Home Mortgage Disclosure Act (HMDA) Thursday. CUNA strongly advocated for the increased threshold, which applies to credit unions and community banks originating 500 or less home equity lines of credit through calendar years 2018 and 2019.
“Today’s changes are a direct result of the combined efforts of CUNA, the Leagues and credit unions’ strong advocacy. While this is a step in the right direction, CUNA will keep working toward a complete exemption from the HELOC reporting requirement," said CUNA President/CEO Jim Nussle. "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.”
According to the CFPB, the temporary increase in the threshold will provide time for it to consider whether to permanently adjust the threshold for data collected beginning January 1, 2020.
In addition to finalizing the rule Thursday, the bureau issued new HMDA implementation materials, including an executive summary of the changes updates to technical filing instructions.