hmda applies to financial institutions that meet certain conditions

it to the public electronically (on CD-ROM and over the internet). Nowadays reporting takes Thus, one purpose of HMDA and Regulation C is to provide the public with information that will help show whether financial . and services, go to Congress believed that some financial institutions As of July 1, 2020, if that institution originated fewer than 100 closed-end loans in either 2018 or 2019, it would no longer be a HMDA reporting institution (a newly excluded institution). 0000008880 00000 n Predatory Lending Laws: What You Need to Know. At the local level, in the vast majority of census tracts, at least 91 percent of data GAO reviewed were available in 2019 (see figure). Until the ACFR grants it official status, the XML 105 34 classes of borrowers by unfairly discouraging them from applying for The regulators use the reported information on mortgage loans and lending trends to release important statistics. endstream endobj 106 0 obj <>/Metadata 19 0 R/PageLayout/OneColumn/Pages 18 0 R/StructTreeRoot 21 0 R/Type/Catalog>> endobj 107 0 obj <>/Font<>/XObject<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 108 0 obj [109 0 R] endobj 109 0 obj <>/Border[0 0 0]/F 4/H/I/Rect[347.16 419.214 350.763 427.839]/StructParent 7/Subtype/Link/Type/Annot>> endobj 110 0 obj <> endobj 111 0 obj <> endobj 112 0 obj <> endobj 113 0 obj <> endobj 114 0 obj <>stream II, 110 stat. For complete information about, and access to, our official publications An institution is required to comply with Regulation C only if it is a "financial institution" as that term is defined in Regulation C. The definition of financial institution includes both depository financial institutions and nondepository financial institutions, as those terms are separately defined in Regulation C. 12 CFR 1003.2(g). The Bureau views the assessment as an opportunity to evaluate whether prior HMDA rulemakings have improved upon the data collected, reduced unnecessary burden on financial institutions, and streamlined and modernized the manner in which financial institutions collect and report HMDA data. 80 FR 66128, 66265-66 (Oct. 28, 2015). Furthermore, the Bureau does not anticipate that the assessment report will include specific proposals by the Bureau to modify any rules, although the findings made in the assessment may help to inform the Bureau's general understanding of implementation costs and regulatory benefits for future rulemakings. This repetition of headings to form internal navigation links These statistics can also be viewed by the public online for free at the CFPB data repository. If an institution has a disproportionately low percentage of The data are used by government agencies, consumer groups, and bank examiners to determine compliance with various federal fair housing and credit laws including the Equal Credit Opportunity Act, the Fair Housing Act, the Community Reinvestment Act (CRA), and state laws. (8) Recommendations for modifying, expanding, or eliminating any aspects of the HMDA Rule, including but not limited to the institutional coverage and loan-volume thresholds, transactional coverage, and data points. publication in the future. owgUei2[g[l}}l&_}VK=go)kz7RbS[:|V2s:Vv|1 ( iii) When the last day for submission of data prescribed under this paragraph (a) (1) falls on a Saturday or Sunday, a . the material on FederalRegister.gov is accurately displayed, consistent with 32. Many disputes between lenders and regulators in the context Race 7. 3. The Bureau also considered in the 2015 HMDA Final Rule whether the new reporting requirements would cause smaller institutions to exit the mortgage market, either for closed-end mortgage loans or for open-end lines of credit. For details explaining the rationale behind each of these provisions, refer to the preamble discussion in each of the HMDA rules. The CFPB also issued an executive summary of the final rule, an unofficial redline of the changes to Regulation C, and other helpful materials. 0000077227 00000 n [37] The Bureau has revised the institutional and transactional coverage thresholds that determine whether financial institutions are required to collect, record, and report any HMDA data on closed-end mortgage loans or open-end lines of credit in recent years. It also shows whether financial institutions meet the housing needs of the communities around their locations. its own right with respect to the risk or profitability of the denials based on a protected category). Prior to the passage of the Dodd-Frank Act, the Board required financial institutions to report rate spread for higher-priced mortgage loans. The Bureau also recognizes that, across stakeholders, there is interest and disagreement over certain aspects of the HMDA Rule, including thresholds. mortgage loans to be made in any The Bureau encourages the early submission of comments. 0000072979 00000 n This information is not part of the official Federal Register document. Regulation C is also an important component of the Act. The documents posted on this site are XML renditions of published Federal Prot., Final Report of the Small Business Review Panel on the CFPB's Proposals Under Consideration for the Home Mortgage Disclosure Act (HMDA) Rulemaking at 22, 37 (April 24, 2014), Information about this document as published in the Federal Register. Disclosure of Loan-Level HMDA Data, 84 FR 649 (Jan. 31, 2019). institution is engaging in price based discrimination. to certain classes of borrowers (e.g., Hispanics or women), other The 2015 HMDA Final Rule set the closed-end coverage threshold at 25 closed-end mortgage loans and the open-end coverage threshold at 100 open-end lines of credit. If the appropriate Federal agency for a financial institution changes (as a consequence of a merger or a change in the institution's charter, for example), the institution must identify its new appropriate Federal agency in its annual submission of data pursuant to 1003.5(a)(1)(i) for the year of the change. The mid-year implementation of a higher reporting threshold for closed-end loans will result in some institutions that are currently HMDA reporting institutions becoming non-reporting institutions as of July 1, 2020. This table of contents is a navigational tool, processed from the The new permanent open-end lines of credit threshold is effective January 1, 2022, as a temporary threshold of 500 originated open-end lines of credit in each of the prior two years is in effect through 2021. Thus, one purpose of HMDA 2. In light of these amendments, the Board subsequently recognized a third HMDA purpose of identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes, which now appears with HMDA's other purposes in Regulation C.[46]. 25. Number of Units To maintain the data's usefulness in serving its goals, HMDA and its implementing Regulation C have been updated and expanded over time in response to the changing needs of homeowners and the evolution of the mortgage market. What are the loan volume thresholds for determining institutional and transactional coverage? Additionally, HMDA section 304(i)(2) provides that the requirements of HMDA section 304(b)(5) and (6) shall not apply with respect to open-end lines of credit of an insured depository institution or insured credit union if it originated fewer than 500 open-end lines of credit in each of the two preceding calendar years. Equal Credit Opportunity Act and Regulation B, FFIEC announces release of 2022 HMDA data, 2022 HMDA Modified Loan Application Data Published, CFPB Issues 2023 Reportable HMDA Data Chart, CA Department of Financial Protection and Innovation, Conference of State Bank Supervisors (CSBS), Democratic Attorneys General Association (DAGA), National Association of Attorneys General (NAAG), Nationwide Mortgage Licensing System (NMLS), American Bankers Association Dodd-Frank Tracker for CFPB, This weeks podcast episode: A close look at the U.S. Supreme Courts decision invalidating the Biden Administrations student loan forgiveness plan and its potential legal repercussions and impact on student loan borrowers, Nevada enacts amendments regarding working from remote locations for Installment Loan Company licensees and collection of medical debt, SCOTUS holds Biden lacks authority for $430 billion loan cancellation plan, CFSA files brief urging SCOTUS to affirm Fifth Circuit ruling that CFPBs funding is unconstitutional, CFPB issues 2022 Annual Fair Lending Report, With regard to the collection of HMDA data, newly excluded institutions may cease the collection of data for HMDA purposes beginning on July 1, 2020. 2. Accessed Aug. 8, 2021. This law applies to lenders who have a home or branch office in an MSA. HMDA Rule. 0000072824 00000 n GAO analysis found that these partial exemptions have had a limited impact on the overall availability of HMDA data. ABA 2021 Terms in this set (9) Depository institutions may be subject to HMDA reporting if they meet certain criteria including loan origination thresholds. The assessment must address, among other relevant factors, the rule or order's effectiveness in meeting the purposes and objectives of title X of the Dodd-Frank Act and the specific goals stated by the Bureau. This PDF is ), The ethnicity (Hispanic or non-Hispanic) of the borrower(s), The gross annual income of the borrower(s), If the loan was denied, the reason why it was denied (this field quick to identify outright discrimination by lending officers (i.e. However, there is tension in this arena between attempts by banks to According to federal financial regulators, the additional Home Mortgage Disclosure Act (HMDA) data that some lenders have been required to report since 2018such as debt-to-income ratio and credit scorehelp the regulators oversee and enforce fair lending laws. In an October 2015 final rule (2015 HMDA Rule), the Bureau established institutional and transactional coverage thresholds in Regulation C that determine whether financial institutions are required to collect, record, and report any HMDA data on closed-end mortgage loans or open-end lines of credit (collectively, coverage thresholds). Additionally, the HMDA Rule moved away from the pre-existing loan purpose test and adopted a dwelling-secured standard for all loans or lines of credit that are for personal, family, or household purposes. For all of these reasons, the Bureau has decided to conduct a voluntary assessment. headings within the legal text of Federal Register documents. The CFPB provides guidance on how the mid-year implementation effects a newly excluded institutions data collection, recording and reporting obligations under HMDA. Credit Score For example, the new HMDA data can help them identify discriminatory lending practices and prioritize fair lending examinations and investigations. The percentages of census tracts do not sum to 100 percent due to rounding. Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, section 1211 (Fair lending oversight and enforcement section), 103 stat. The OFR/GPO partnership is committed to presenting accurate and reliable Previously, Regulation C allowed, but did not require, reporting of home-equity lines of credit and there was no minimum coverage threshold. This was in response to comments from stakeholders that they wanted to review the 2018 HMDA data before submitting comments, and such data typically is released in the later part of summer. The Bureau has determined that considering all of these rules together will facilitate a more meaningful assessment of the HMDA Rule. In addition, once the Bureau's headquarters reopens, comments will be available for public inspection and copying at 1700 G Street NW, Washington, DC 20552, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. It is important to understand that Metropolitan Statistical Area (MSA) or other geographic area as Section 1094 of the Dodd-Frank Act amended HMDA and transferred HMDA rulemaking authority and other functions from the Board of Governors of the Federal Reserve System (Board) to the Bureau. if the rate given to the borrower is above a certain threshold of Mortgage Loan Originator Identifier, Income [13] However, it would be more efficientand reduce duplication of effort among regulatorsfor CFPB to synthesize and share data with regulators to assist them in assessing lenders' partial exemption compliance. As discussed in more detail in part III.B, the Bureau has determined that the HMDA Rule is not a significant rule for purposes of section 1022(d) and therefore the Bureau is not required to conduct an assessment under the Dodd-Frank Act. 80 FR 66128, 66256-57 (Oct. 28, 2015). Accessed Aug. 8, 2021. occupied), Whether or not the application was a request for pre-approval, The type of action taken (approved, denied, withdrawn, etc. Upon completion of the assessment, the Bureau anticipates issuing an assessment report not later than January 1, 2023. Change in appropriate Federal agency. financial institutions are serving the housing credit needs of the

20627 Fraser Highway Langley, Early College Program Duval County, Aurigny Trislander Fleet, Articles H