November 03, 2017

CUs can test HMDA reporting with beta portal

The CFPB on Friday released a beta version of its long-awaited Home Mortgage Disclosure Act (HMDA) portal. As reporting institutions use the beta portal for the next few months, the bureau will continue to make updates and improvements before releasing the final version in January.

This tool, along with the CFPB's HMDA rule, is likely to be discussed tomorrow when CFPB Director Richard Cordray meets with the NAFCU Board of Directors at the association's headquarters.

The beta version of the HMDA portal allows financial institutions to establish test log-in credentials, upload sample files and validate the data, receive edit reports, confirm test data submissions and complete test filing processes. The beta version of the portal will lead to a final HMDA portal for reporting 2017 HMDA data this spring.

The CFPB, in its release of the beta platform, said institutions will be able to test as often as they like, and any accounts created or data added will be removed from the system before the January filing period officially opens. Credit unions can learn more about the new HMDA submission portal in this free NAFCU webcast.

The bureau also recently published a new chart that is intended to be used as a reference tool for those data points required to be collected, recorded and reported under HMDA, and updated its small-entity compliance guide, which details some clarifications, technical corrections and minor changes to the regulation.

The CFPB's final technical amendments to the HMDA rule, issued in August, increase the threshold at which credit unions are required to report home equity lines of credit (HELOCs) from 100 to 500 loans through calendar years 2018 and 2019. NAFCU continues to urge the CFPB for an exemption from HMDA reporting for all HELOCs or, in the alternative, make the 500-loan threshold permanent.

In general, the CFPB's final HMDA rule changes are set to take effect Jan. 1, with most data submissions under the new provisions due in 2019. The rule changes affect HELOCs, establish transactional thresholds for coverage and expand the number of HMDA data points to be collected from credit unions.

NAFCU has a host of HMDA compliance resources available to association members, including charts and guides, articles, webcasts and blog posts.