CFPB Releases Updated HDMA Asset-Size Exemption Threshold
January 3, 2013
January 3, 2013
The Consumer Financial Protection Bureau (CFPB) issued a final rule adjusting the asset-size exemption threshold for credit unions under Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).
Based on the adjustments, the asset-size exemption for credit unions will increase to $42 million. As a result, credit unions with assets of $42 million or less as of Dec. 31, 2012, are exempt from collecting HMDA data in 2013. An institution’s exemption from collecting data in 2013 does not affect its responsibility to report the data it was required to collect in 2012.
The HMDA requires that the CFPB adjust this threshold yearly by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
The HMDA and the CFPB’s Regulation C require most mortgage lenders located in metropolitan areas to collect, report and disclose data about applications for and originations and purchases of home purchase loans, home improvement loans, and refinancings. Data reported include the type, purpose and amount of the loan; the race, ethnicity, gender and income of the loan applicant; the location of the property; and loan pricing information for some loans. HMDA data is used to help determine whether credit unions are serving the housing needs of their communities and to assist in identifying possible discriminatory lending patterns.
The rule will be effective immediately upon publication next week in the Federal Register and will apply to data collection in 2013.
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.