CFPB Now Accepting Comments for HMDA Rule Proposal

The Consumer Financial Protection Bureau (CFPB) announced on Wednesday that it is now accepting comments concerning a proposed rule change to aspects of the Home Mortgage Disclosure Act (HMDA), changes which would affect coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit.

“Specifically, the Bureau requests comments on (1) the Bureau’s proposed changes to the permanent coverage threshold for closed-end mortgage loans, (2) the Bureau’s proposed changes to the permanent coverage threshold for open-end lines of credit, and (3) the appropriate effective date for any change to the closed-end coverage threshold,” the CFPB said in a press release announcing the beginning of the comment period.

The rule change proposal was originally made public in May, and is being made in the interest of smaller financial organizations conducting business in American communities, according to CFPB Director Kathleen L. Kraninger.

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“Today’s proposed changes would provide much needed relief to smaller community banks and credit unions while still providing federal regulators and other stakeholders with the information we need under the Home Mortgage Disclosure Act,” said Kraninger in May’s announcement of the rule change proposal. “The public is encouraged to submit their comments on the proposals, which will be considered by the Bureau before the next step is taken.”

HMDA was passed by the United States Congress in the fall of 1975, and signed into law by President Gerald Ford that December. It requires certain financial institutions to provide mortgage transaction data to the public.

In 2018, another rule proposal was implemented that requires financial institutions that have originated 500 home equity credit lines to submit certain information about borrowers to the CFPB under HMDA, which the agency said at the time could be revisited to determine, “the appropriate level for the threshold for data collected beginning January 1, 2020.” The proposal now under consideration would extend the 500 threshold requirement to January 1, 2022.

All comments must be submitted by October 15 to be taken under consideration. The CFPB website features more information on the proposed rule and the commenting procedure.

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