Bureau proposes higher thresholds for HMDA data reporting; wants input also on costs, benefits of gathering certain data points

Raising the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under federal disclosure rules was proposed Thursday by the Consumer Financial Protection Bureau (CFPB).

In a release, the bureau indicated its notice of proposed rulemaking (NPRM) is aimed at providing relief to smaller lenders (such as credit unions and community banks) from the Home Mortgage Disclosure Act’s (HMDA) data reporting requirements. The agency said the proposal would also clarify partial exemptions from certain disclosure requirements enacted in last year’s regulatory relief legislation, the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155).

More specifically, in its release, the bureau said it proposes two alternatives to permanently increase the coverage threshold from 25 to either 50 or 100 closed-end mortgage loans. For open-end lines of credit, the proposal would extend for two years the current temporary coverage threshold of 500 open-end lines of credit. The bureau said once that extension expires, it proposes that the open-end threshold would be set permanently at 200 open-end lines of credit.

In addition to that proposal, CFPB said, it is seeking information on the costs and benefits of reporting “certain data points under HMDA.” The information collection would be done under and advance notice of proposed rulemaking. The costs and benefits aspects is also in keeping with recent pronouncements from the agency to do more along those lines with its rules.

The bureau said it also wants input about costs and benefits of requiring institutions to report certain commercial-purpose loans made to a non-natural person and secured by a multifamily dwelling.

Consumer Financial Protection Bureau Proposes Changes to HMDA Rules