BCFP clarifies HMDA relief provisions of S. 2155

August 31, 2018

The Bureau of Consumer Financial Protection issued an interpretive final rule Friday, clarifying the Home Mortgage Disclosure Act (HMDA) partial exemptions contained in the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). CUNA wrote to Acting Director Mulvaney this summer urging the Bureau to quickly effectuate the regulatory relief in S. 2155, especially the changes to HMDA.

“We thank the bureau for clarifying the HMDA provisions in S. 2155, which should directly enhance credit unions’ ability to serve their members,” said CUNA President/CEO Jim Nussle. “We will continue our engagement with the bureau to ensure credit unions receive the relief intended by the passage of S. 2155 as soon as possible.”

Section 104 of the bill provides regulatory relief to small depository institutions that have originated less than 500 closed-end mortgage loans or less than 500 open-end lines of credit in each of the two preceding calendar years by exempting them from certain disclosure requirements under HMDA.

Other provisions in S. 2155 that fall under the bureau’s authority include:

  • Establishing a safe harbor from certain requirements for a loan to be considered a Qualified Mortgage;
  • Clarifying that the same consumer protections in place with respect to mortgage lending are nonexistent for Property Assessed Clean Energy loans; and
  • Removing the three-day wait period required for the combined Truth in Lending Act-Real Estate Settlement Procedures integrated disclosure (TRID) mortgage disclosure if a creditor extends to a consumer a second offer of credit with a lower annual percentage rate.

A detailed look at HMDA reporting requirements can be found on CUNA’s CompBlog.