Final rule extending HMDA reporting threshold ready for publication

After nearly three weeks, a final rule extending the threshold for reporting information under the Home Mortgage Disclosure Act (HMDA) to January 2022 for lenders making 500 open-end lines of credit or fewer is ready to be published in the Federal Register, according to filings by the federal consumer financial protection agency Monday.

The Consumer Financial Protection Bureau (CFPB) has submitted the final rule for publication on Tuesday (Oct. 29). The final rule, which amends regulations related to HMDA (Regulation C) was first announced by the bureau Oct. 10.

The final rule takes effect Jan. 1.

The extension applies to financial institutions that originated fewer than 500 open-end lines of credit for reporting purposes under HMDA. For data collection years 2020 and 2021, those institutions originating fewer than 500 open-end credit lines in either of the two preceding calendar years will not need to collect and report data with respect to open-end lines of credit, the agency said when it announced the final rule.

CFPB also said then that its rule also clarifies partial exemptions from certain HMDA requirements that were included in last year’s regulatory relief legislation, the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S.2155).

The rule incorporates into Regulation C the clarifications from the CFPB’s August 2018 interpretive and procedural rule, the agency said. “This final rule further effectuates the burden relief for smaller lenders provided by the EGRRCPA by addressing certain issues relating to the partial exemptions that the August 2018 rule did not address,” according to the bureau.

Home Mortgage Disclosure (Regulation C)

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