CFPB not prioritizing, just yet, enforcement of restored 25-loan HMDA reporting threshold for closed-end mortgages

The federal agency charged with consumer financial protection says it does not plan to carry out enforcement actions related to a now 25-loan threshold for reporting closed-end mortgage loans under the Home Mortgage Disclosure Act (HMDA) specifically for data collected in 2022, 2021, or 2020.

In a blog post Tuesday, the Consumer Financial Protection Bureau (CFPB) said is recognized institutions may need time to adjust to the change, which is the result of a federal court order in September.

The U.S. District Court for the District of Columbia on Sept. 23 issued an order vacating the 2020 HMDA final rule as to the loan volume reporting threshold for closed-end mortgage loans, the CFPB noted in a blog post Tuesday. It said the decision means that the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA final rule, rather than the 100-loan threshold set by the 2020 final rule.

“The CFPB recognizes that financial institutions affected by this change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with their reporting obligations,” the bureau said in Tuesday’s blog post. “In these limited circumstances, in allocating the CFPB’s enforcement and supervisory resources, the CFPB does not view action regarding these institutions’ HMDA data as a priority.”

Explaining further, the CFPB said it “does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020 for institutions subject to the CFPB’s enforcement or supervisory jurisdiction that meet Regulation C’s other coverage requirements and originated at least 25 closed-end mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years.”

Blog post: Changes to HMDA’s closed-end loan reporting threshold