CFPB finalizes HMDA changes

The CFPB has announced it has finalized a temporary increase in the HMDA HELOC reporting threshold for banks and credit unions, and made a number of clarifications, technical corrections, and minor changes to the HMDA regulation (Regulation C, 12 CFR Part 1003). Under the HMDA rules becoming effective on January 1, 2018, financial institutions would have been required to report HELOCs if they made 100 such loans in each of the previous two years. The threshold is temporarily being increased to 500 loans during 2018 and 2019 to give the Bureau time to consider whether to make a permanent adjustment. This change was proposed in mid-July (see our earlier Top Story).

The other amendments finalized by the Bureau include clarifying certain key terms, such as “temporary financing” and “automated underwriting system.” The changes will also, for example, establish transition rules for reporting certain loans purchased by financial institutions. Another change will facilitate reporting the census tract of a property, using a geocoding tool that will be provided on the Bureau’s website. These changes were initially proposed in April 2017.

• Final rule
• Updated Filing Instructions Guide for data collected in 2017
• Updated Filing Instructions Guide for data collected in or after 2018
• Updated HMDA Loan Scenarios
• Executive Summary of the August 24, 2017, changes
• UPDATE: Published 9/13/2017 at 82 FR 43088