Just to be clear, when counting loan originations we would include in this number our construction loans and temporary loans? These loans are not subject to HMDA but they are closed end and originated. I just want to make sure I am clear on this subject. Thank you.

We are about to release a written and video blog on this. It should be up soon at https://www.bankerscompliance.com/blog/

On the surface, it at least sounds as if the Bureau has put some logical though into this 'back-up the train' process. I hope so...because it could be a cluster, if not thoughtfully planned out .

If I'm reading the law & revised law correctly, small filers only need to report the same data as they did in 2017 plus age. Sections 5 & 6 of the Dodd-Frank Act have been removed, but age is listed in (b)(4). Anyone disagree / agree?

I am reading it the same way you do, David. The new law seems to clearly states that paragraphs 5 & 6 are removed.

"With respect to an insured depository institution or insured credit union, the requirements of paragraphs (5) and (6) of subsection (b) shall not apply with respect to..."

The preamble to the 2015 HMDA final rule clarifies that Dodd-Frank amended section 304(b)(4) to add age:

"Section 1094(3)(A)(i) of the Dodd-Frank Act amended HMDA section 304(b)(4) to require financial institutions to report an applicant's or borrower's age."

Sections 5 & 6 outline the other Dodd-Frank requirements:
(5) the number and dollar amount of mortgage loans grouped according to measurements of-
(A) the total points and fees payable at origination in connection with the mortgage as determined by the Bureau, taking into account 15 U.S.C. 1602(aa)(4);
(B) the difference between the annual percentage rate associated with the loan and a benchmark rate or rates for all loans;
(C) the term in months of any prepayment penalty or other fee or charge payable on repayment of some portion of principal or the entire principal in advance of scheduled payments; and
(D) such other information as the Bureau may require; and

(6) the number and dollar amount of mortgage loans and completed applications grouped according to measurements of-
(A) the value of the real property pledged or proposed to be pledged as collateral;
(B) the actual or proposed term in months of any introductory period after which the rate of interest may change;
(C) the presence of contractual terms or proposed contractual terms that would allow the mortgagor or applicant to make payments other than fully amortizing payments during any portion of the loan term;
(D) the actual or proposed term in months of the mortgage loan;
(E) the channel through which application was made, including retail, broker, and other relevant categories;
(F) as the Bureau may determine to be appropriate, a unique identifier that identifies the loan originator as set forth in section 5102 of this title;
(G) as the Bureau may determine to be appropriate, a universal loan identifier;
(H) as the Bureau may determine to be appropriate, the parcel number that corresponds to the real property pledged or proposed to be pledged as collateral;
(I) the credit score of mortgage applicants and mortgagors, in such form as the Bureau may prescribe; and
(J) such other information as the Bureau may require.

Disclaimer: I'm not an attorney and don't interpret laws, so I could be wrong...

I wish the CFPB would simply provide a complete list of what is (or is not) required for data. 5(D) and 6(J) are pretty ambiguous. I could assume that we do the data from 2017 + age, but 5(B) mentions a rate spread. The 2017 rules required rate spread, although calculated differently. Do small filers go back to that rate spread method? Or do they not have to do any rate spread?

We really need a regulation to answer the small filer data requirements. Loan officers shouldn't have to collect any of the expanded data. To tell them to continue to collect it and then the LAR will be filed with an exempt code seems like a huge waste of time and resources.

I have emailed the CFPB with a request for what exactly is required (or exempt) for small filers. If I hear from them, I'll post.

I completely agree about 5(D) and 6(J) being ambiguous and the need for guidance from the CFPB. I think it will be very difficult for small filers to do anything different than the existing regulation without guidance from the CFPB. If they do, they could be redoing quite a bit of data fields which could be extremely problematic. The law is in place so unnecessary work will continue until there is clear guidance from the CFPB.

So I understand the impact on reporting lines of credit.... Currently under revised Reg C, if an institution originated less than 500 lines in EITHER of the past two years, there is a temporary exemption from collecting data, the exemption ending December 31, 2019 (would be required to start collecting data January 1, 2020 and report in 2021). Under the recently passed bill, a small entity filer (originated less than 500 lines in EACH of the past two years) reports under the small entity filer rules, meaning certain fields do not get reported.

Assuming the Reg C temporary exemption does not get altered or extended, a small entity filer still is not required to report any lines until 2021 - at which time, will report under the small entity filer rules effective with the new bill. Is this correct? I did read the bill, but didn't see anything that addresses the Reg C temporary exemption.

David, our security does not let the blogs play.

So, in the 500 threshold, are we counting all loans originated (closed end mortgage or open end lines of credit) or do we only count the ones that are HMDA reportable? See original question regarding construction loans, also consider business purpose loans that are secured by mortgage, but not reportable, etc.

Thanks,

Our fate hangs on the answer to this, as well.

In the blog he states that the same definition is used, they just increased the closed-end from 25 - 500...in the Rule, the definition is as follows:

(v) Meets at least one of the following criteria:

(A) In each of the two preceding calendar years, originated at least 25 closed-end mortgage loans that are not excluded from this part pursuant to § 1003.3(c)(1) through (10) or (13); or

(B) In each of the two preceding calendar years, originated at least 500 open-end lines of credit that are not excluded from this part pursuant to § 1003.3(c)(1) through (10); and

So, if you take that into consideration, it would be loan originated that were also reportable.

Now, if that is accurate...considering the reportable TYPES have changed...do we have to additionally account for loans that 'would have been' reportable under today's reporting waterfalls?

If you look at preceding years...then I would think it would be what was actually on the LAR the prior two years...but I'd hate to stake my life on that at the moment. At the same time, that would be the most reliable concrete record of originations.

Joker, were you addressing my question or SMQ's?

I was addressing SMQ and RR Becca, but looking at your specific question, Indy, I don't see it as 'either'. The wording is "each".

I'm just trying to figure out if the partial exemption (fewer data points to report) given to small filers for lines of credit under the new bill supersedes the temporary, total exemption to filing on lines of credit for small filers under revised Reg C - in other, if we've been under 500 lines either of the last two years, are we still exempt from reporting anything until 2021?

Oh, I'm sorry Indy, I wasn't thinking about the temporary rule...

Still a lot of unanswered questions, it appears!

You are right!

Sorry - I've been away for a few days. SMQ asked:

My best analysis is that they left the loan coverage and exemptions the same. They simply raised the tier from 25 to 500. Here's what I revised in our HMDA training manual:

Reporting Closed-End Loans vs. Open-End Lines of Credit:

a. Subject to HMDA
If you originate at least 25 closed-end loans, but not 500 open-end lines of credit, you only report closed-end loans. [Commentary to §1003.3(c)(12) #1] If you originate at least 500 open-end lines of credit, but not 25 closed-end loans, you only report open-end lines of credit. If you originated > 25 loans and > 500 lines, you report both loans and lines. [Commentary to §1003.3(c)(11) #1]

b. Small Filer Data Exemption
If you originate 25-499 closed-end loans, you are subject to HMDA reporting, but you only collect and report limited data. [Economic Growth, Regulatory Relief, and Consumer Protection Act, Pub. L. 115-174, section 104(a) (to be codified at 12 USC 2803)]
*Your institution must have received at least a Satisfactory CRA rating to qualify for the limited data reporting exemption.

Hope this helps.

So if we had less than 25 closed-end and open-end loans for 2016 and 2017, we were exempt from reporting 2018's data. Does this mean that now we would no longer be considered exempt, and we would have to go back through our loans and add the ones that qualify under "pre-2018" HMDA to our LAR and report them???

I don't think the 25 part changed. The only thing that changed is the small reporter. 25 - 499 and the increase to include more CE loans in that subset.

So for those banks that if they had less than 25 didn't have to report at all, now they do.

I'm really not sure where y'all are getting that from. I don't see as that changed any at all.

If you are getting that from:

They simply raised the tier from 25 to 500.

I believe David is referring to Open-end lines. The minimum was less than 25. Now it's less than 500 and you are off the hook [so long as you don't exceed the <25 limit on CEloans.

Well before the small reporter limit was 25 and now <500 and you need to report, but without all the new fields.

Let's break it down:

Reporting Closed-End Loans vs. Open-End Lines of Credit:

a. Subject to HMDA
If you originate at least[/b] 25 closed-end loans, but not 500 open-end lines of credit, [u]you only report closed-end loans. [Commentary to §1003.3(c)(12) #1] If you originate at least 500 open-end lines of credit, but not 25 closed-end loans, you only report open-end lines of credit. If you originated > 25 loans and > 500 lines, you report both loans and lines. [Commentary to §1003.3(c)(11) #1]

This tells me that if you originate 25 or more CE loans, but less than 500 LOC, you report only CE loans.
If you originated 500 or more LOC, but less than 25 CE loans, you only report LOC
If you originate more than 25 CE loans and more than 500 LOCs you report all.


b. Small Filer Data Exemption
If you originate 25-499 closed-end loans, you are subject to HMDA reporting, but you only collect and report limited data. [Economic Growth, Regulatory Relief, and Consumer Protection Act, Pub. L. 115-174, section 104(a) (to be codified at 12 USC 2803)]
*Your institution must have received at least a Satisfactory CRA rating to qualify for the limited data reporting exemption.

To be considered small, and therefore less data reporting, you will have to 1) be a reporter and 2) originate more than 24 and less than 500 CE loans/year