CFPB proposes higher HMDA thresholds after strong CUNA push

May 2, 2019

The Consumer Financial Protection Bureau (CFPB) issued a proposed rule on Home Mortgage Disclosure Act (HMDA) reporting requirements Thursday, as well as an Advance Notice of Proposed Rulemaking (ANPR) about the costs and benefits of collecting HMDA data.

CUNA has repeatedly called on the CFPB to raise the closed-end mortgage loan and open-end line of credit reporting thresholds to exempt as many credit unions as possible from HMDA reporting. Credit union concerns with the HMDA rule have been discussed in numerous meetings and other communications with Director Kathy Kraninger and her staff.

“We thank the CFPB for responding to continued credit union and small lender engagement on this matter and for issuing a proposal to provide some relief from HMDA requirements,” said CUNA President/CEO Jim Nussle. “The HMDA rule has disproportionately burdened credit unions despite no evidence of past wrongful conduct. We look forward to engaging with the CFPB during the rulemaking process and will continue to advocate for the CFPB to increase these thresholds further.

"“However, while increasing the closed-end mortgage loan threshold is a positive first step, we continue to have concerns about the CFPB’s treatment of open-end lines of credit. We have called on the CFPB to make the reporting of open-end lines of credit voluntary, as was the case prior to the 2015 HMDA rule, and we will continue to do so," Nussle added. 

Members of the CFPB’s Credit Union Advisory Council (CUAC) also called for the CFPB to consider raising the thresholds during its March meeting. All CUAC members are from CUNA member credit unions.

CUNA also suggested raising the reporting thresholds in a letter sent to Kraninger after her confirmation by the Senate.

Specifically, the CFPB proposes two alternatives that would permanently increase the HMDA reporting threshold for closed-end mortgage loans to either 50 or 100 loans (up from the current 25 loans), in either of the two preceding calendar years. For open-end lines of credit, the proposal would extend for another two years the temporary reporting threshold of 500 open-end lines of credit.

Once that temporary extension expires, the proposal would set the open-end reporting threshold permanently at 200 open-end lines of credit.

Comments on the proposal will be due 30 days after it is published in the Federal Register, which is expected in the coming days.

In addition to the proposed rule, the CFPB issued an ANPR seeking input on the costs and benefits of collecting and reporting HMDA data points added by the 2015 rule, as well as certain pre-existing data points revised by the 2015 rule.  CUNA has called on the CFPB to reduce the HMDA data set to only those data points required by statute.

Comments on the ANPR are due 60 days after it is published in the Federal Register.