Compliance Center: CFPB Releases 2017 and 2018 HMDA File Specifications

The Consumer Financial Protection Bureau (CFPB) recently released the Home Mortgage Disclosure Act (HMDA) file specifications for 2017 and 2018.  One important change that is being highlights is the file format is being changed from fixed field file to a delimited file format. This means that each data field within each row will be separated with a pipe (|).  These are not fixed length fields so leading and trailing zeros or spaces will not be needed and filler data fields will no longer be used.   Please see the CFPB’s guides for filing available here.

The announcement regarding the HDMA data requirements will likely mean that credit unions may require another system update.  It is best for credit unions subject to the HDMA reporting requirements to start the necessary steps to implement these changes well ahead of the 2017 and 2018 deadlines.

Compliance Question of the Week

What is a Single Member LLC and does it need an EIN to open an account?

Per the IRS, a Single Member Limited Liability Company (SMLLC) can either be a corporation or a single member “disregarded entity”.  This provides greater protection than a sole proprietorship, but allows for different options for IRS tax reporting.

For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner’s social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

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Legal Briefs

National Credit Union Administration (NCUA)

The NCUA released the video recording of its January 2016 open board meeting.

The February 2016 issue of the NCUA Report is now available. This issue focuses on Military Saves Week, MSB accounts, 2016 examination focus, and the 2016 regulatory review.

The NCUA released a video module on the credit union Board’s role in policy planning. The video covers key aspects of policy planning, including responsibility of the board in development of key policies, major policies all credit unions should have, and the differences between policies and procedures.

NCUA Chairman Matz delivered remarks at CUNA’s Governmental Affairs Conference (GAC) and discussed the regulatory relief the NCUA is working to provide as well as highlighting the important role that millennials will serve in the shaping of credit unions going forward.

The NCUA released the results of its most recent Board Meeting. The February Board meeting included a finalization of the MBL rule and an update on the performance of the National Credit Union Share Insurance Fund.

Consumer Financial Protection Bureau (CFPB)

The CFPB posted a blog entry aimed at helping consumers understand ways they can save money on their tax preparation, stay aware of tax fraud and keep their information safe, and the benefits of directly depositing tax returns.

CFPB Director Cordray delivered prepared remarks at the American Constitution Society. Cordray’s remarks focused on how the CFPB works to protect consumers from predatory conduct and its responsibility to foresee new problems that could arise in the future.

The CFPB finalized its policy to facilitate consumer-friendly innovation. The policy establishes a process for companies to apply for a statement from the CFPB that would alleviate regulatory uncertainty when a new product or service is being offered that could be considered consumer-friendly innovation.

Federal Trade Commission (FTC)

The FTC issued a letter to the CFPB detailing the steps that the FTC has taken in addressing debt collection practices and issues.  

Federal Deposit Insurance Corporation (FDIC)

The FDIC has issued a proposed rule that would facilitate prompt payment of FDIC-insured deposits when large institutions fail and hold two million or more deposit accounts.

The FDIC, OCC, and FRB announced an interim final rule that increases the number of small banks and savings associations eligible for an 18 month exam cycle, as opposed to the traditional 12 month exam cycle. The interim final rule will apply to well-capitalized and well-managed institutions with less than $1 billion in total assets.

Federal Reserve Board (FRB)

The FRB has announced that it will continue periodic testing of the Term Deposit Facility (TDF). The FRB will conduct routine TDF test operations each quarter in 2016.

The 2016 budgets for the Reserve Banks have been released.

The FRB released the minutes of the Federal Open Market Committee’s January meeting.

The FRB has released the charge0ff and delinquency rates on loans and leases at commercial banks.

The FRB has issued an interim final rule that amends Regulation I to establish procedures for payment of dividends by the Federal Reserve Banks. The rule sets out the dividend rates applicable to Reserve Bank depository institution stockholders. The FRB is accepting comments through April 29, 2016.

Financial Action Task Force (FATF)

The FATF issued a Mutual Evaluation Report on Anti-money laundering and counter-terrorist financing measures—Italy.

Federal Financial Institution Examination Council (FFEIC)

The FATF issued a Mutual Evaluation Report on Anti-money laundering and counter-terrorist financing measures—Italy.

Federal Housing Finance Agency (FHFA)

FHFA Director Watt delivered prepared remarks to the Bipartisan Policy Center focusing on the work that has been done by the FHFA since the conservatorship of Fannie Mae and Freddie Mac. Watt’s remarks also focused on the future of the conservatorships and the ongoing risks that the agency faces.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of February 16, 2016. The last update prior to this was February 11, 2016.

Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, Federal, NCUA.