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From Banking and Finance Law Daily, December 22, 2017

CFPB delays enforcement of HMDA reporting requirements

By Stephanie K. Mann, J.D.

The Consumer Financial Protection Bureau has announced that it will not require data resubmission under the Home Mortgage Disclosure Act unless data errors are material or assess penalties with respect to errors for data collected in 2018 and reported in 2019. According to the CFPB’s public statement, the Bureau recognizes that significant systems and operational challenges that are needed to adjust to the revised regulation and this extended submission deadline will help institutions identify compliance weaknesses, and the Bureau will credit good-faith compliance efforts.

The Bureau also announced it intends to open a rulemaking to reconsider various aspects of its 2015 HMDA rule, such as the institutional and transactional coverage tests and the rule’s discretionary data points. Beginning on Jan. 1, 2018, financial institutions will submit HMDA data collected in 2017 and beyond using the Bureau’s new online platform.

Similar statements regarding HMDA implementation have been issued by the Federal Reserve BoardOffice of the Comptroller of the CurrencyFederal Deposit Insurance Corporation, and National Credit Union Administration.

Legislative support. While Sen. Mike Rounds (R-SD) is supportive of the CFPB’s action to delay enforcement of the HMDA data reporting requirements, he hopes that the temporary reprieve will give the Senate enough time to consider the Banking Committee’s economic growth legislation. This includes Rounds’ provision of an exemption for small financial institutions that originate 500 closed-end mortgage loans or 500 open-end lines of credit from HMDA reporting requirements. "This will allow banks to focus on servicing consumers rather than on complying with unneeded federal reporting regulations."

Expressing his gratitude to Acting CFPB Director Mick Mulvaney, Rep. Randy Hultgren (R-Ill) said that the delayed enforcement will protect community banks and credit unions from "burdensome" reporting requirements. Hultgren recently introduced the Home Mortgage Reporting Relief Act with Rep. Tom Emmer (R-Minn), who also applauded Mulvaney’s action, which would give community banks and credit unions additional time to comply with the new HMDA reporting rules.

Industry support. Independent Community Bankers of America President and CEO Camden R. Fine strongly supports the CFPB’s actions, believing that if left unaddressed, these mandatory reporting requirements would divert critical community bank resources that would otherwise be used to serve American consumers.

Companies: Independent Community Bankers of America

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