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December 18, 2015
CFPB updates thresholds for HMDA, higher-priced loan escrow
CFPB announced two final rules relating to annual adjustments of thresholds for the Home Mortgage Disclosure Act and the Truth in Lending Act.
CFPB is required to adjust the HMDA threshold yearly according to the annual percentage change in the average Consumer Price Index for Urban Wage Earners and Clerical Workers. This year, the asset-size exemption for banks, credit unions and savings associations will remain at $44 million; institutions with assets of less than that as of Dec. 31 are exempt from collecting HMDA data in 2016.
The other update relates to the exemption from having to establish an escrow account for higher-priced mortgage loans under Regulation Z and the Truth in Lending Act. CFPB established a $2 billion threshold in 2013 and updates it yearly according to the same Consumer Price Index standard. This year, the asset-size threshold exemption is decreasing from $2.060 billion to $2.052 billion for 2016, as of Dec. 31.
The rules will be effective on Jan. 1 and apply to data collection and exemption eligibility during 2016 and a grace period during 2017.
CFPB is required to adjust the HMDA threshold yearly according to the annual percentage change in the average Consumer Price Index for Urban Wage Earners and Clerical Workers. This year, the asset-size exemption for banks, credit unions and savings associations will remain at $44 million; institutions with assets of less than that as of Dec. 31 are exempt from collecting HMDA data in 2016.
The other update relates to the exemption from having to establish an escrow account for higher-priced mortgage loans under Regulation Z and the Truth in Lending Act. CFPB established a $2 billion threshold in 2013 and updates it yearly according to the same Consumer Price Index standard. This year, the asset-size threshold exemption is decreasing from $2.060 billion to $2.052 billion for 2016, as of Dec. 31.
The rules will be effective on Jan. 1 and apply to data collection and exemption eligibility during 2016 and a grace period during 2017.
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