Asset-size threshold adjustments for 2021 under federal mortgage regulations, and the annual adjustment for consumer report fee limits, are detailed for credit unions in National Credit Union Administration (NCUA) Letter to Credit Unions 21-RA-02, released Wednesday.
The letter, signed by NCUA Board Chairman Todd Harper, focuses on adjustments made by the Consumer Financial Protection Bureau (CFPB) to thresholds set under the Home Mortgage Disclosure Act (HMDA/Regulation C) and the Truth in Lending Act (TILA/Regulation Z); and the annual adjustment to the maximum amount consumer reporting agencies may charge consumers for making a file disclosure to a consumer under the Fair Credit Protection Act (FCRA/Regulation V). All the changes took effect Jan. 1:
- HMDA/Reg C: The exemption threshold for HMDA data collection in 2021 increased to $48 million; credit unions with assets of $48 million or less are not required to collect such data this year. This adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in effect through Nov. 30, 2020.
- TILA/Reg Z: This applies to TILA rules on escrows and small-creditor qualified mortgages (QM). The exemption threshold for certain institutions required to establish escrows on higher-priced mortgage loans in 2021 increased to $2.23 billion (based on the CPI-W in effect through Nov. 30, 2020). This asset-size limit also applies during a grace period, in certain circumstances, with respect to transactions with applications received before April 1, 2022, the NCUA said; and increases the threshold for small-creditor portfolio and balloon-payment QMs. “A balloon-payment qualified mortgage that satisfies all applicable criteria, including having been made by a lender that, together with certain affiliates, has total assets below the threshold, is also exempted from the prohibition on balloon payments for high-cost mortgages,” the agency said.
- FCRA/Reg V: The ceiling on the allowable amount a consumer reporting agency may charge for a consumer report in 2021 increased to $13 (based proportionally on changes in the Consumer Price Index for All Urban Consumers [CPI-U]). The ceiling does not affect the amount a credit union may charge its members or potential members, directly or indirectly, for obtaining a credit report in the normal course of business. “Such cost is expected to be accurately represented in all advertising, disclosures, or agreements, whether written or oral,” the agency said.