Newsroom

July 19, 2017

CFPB issues HMDA 'loan scenarios' document

The CFPB on Wednesday released a document presenting examples of hypothetical transactions to help Home Mortgage Disclosure Act filers determine how to report three different types of loans.

The 27-page document details three scenarios: a single-family, closed-end purchase loan; a non-natural person, multifamily purchase loan; and an open-end line of credit. The document also contains a comparison of the reported values to illustrate the differences among these scenarios.

Last week, the CFPB issued proposed changes to its HMDA rule that would temporarily raise the home equity line of credit reporting threshold for smaller financial institutions, including credit unions.

Currently, under the HMDA rules that are slated to take effect in January, financial institutions will be required to report HELOCs if they made 100 such loans in each of the previous two years. The CFPB's new proposal would increase that threshold to 500 loans through 2018 and 2019 as the bureau decides whether to make the change permanent.

Last month, Sens. Mike Rounds, R-S.D., and Heidi Heitkamp, D-N.D., introduced a NAFCU-backed bill to both raise the loan threshold for HMDA reporters and delay implementation of the HMDA rule by one year. The two also wrote Cordray asking him to delay or modify the HMDA rule.

NAFCU President and CEO Dan Berger has also urged Cordray to delay the rule's effective date to Jan. 1, 2019.