Regulator Statements about Recent Changes to HMDA

7/17/18

The Bureau of Consumer Financial Protection (CFPB), the National Credit Union Administration (NCUA), and other federal regulators issued a joint statement highlighting the implications of S. 2155 and the relief changes that will be made to the Home Mortgage Disclosure Act (HMDA).

On May 24, President Donald Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) into law. S. 2155 includes a section which amends HMDA to provide partial exemptions for some credit unions. The partial exemptions would allow credit unions that qualify from not having to collect, record, and report some of the data points required by HMDA, but the credit unions would still have reporting requirements for other data points These exemptions would apply to credit unions that have:

  • For closed-end loans if the institution originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years.
  • For open-end lines of credit if the institution originated fewer than 500 open-end lines of credit in each of the two preceding calendar years.

The CFPB has not updated the language in Regulation C to reflect this regulatory relief but does expect to provide guidance sometime later this summer. Until the changes are published, the best course of action for credit unions that have HMDA reporting requirements is to continue to gather all the HMDA required data until the changes are published. It is easier to gather it at this time and not need it in the future.

Additionally, the statement does tell us that LAR formatting will not be affected by the act, and LARs will be formatted according to the previously-released 2018 Filing Instructions Guide for HMDA Data Collected in 2018. LARs will be submitted to the same HMDA platform.

Question of the Week

Which logo do I use: equal housing opportunity, or equal housing lender?

Federal credit unions, with the respect to written and visual advertisements, may satisfy the notice requirement by including in the advertisement a copy of the logotype with the legend “Equal Housing Lender” or a copy of the logotype, with the legend “Equal Housing Opportunity.”

State credit unions are regulated under HUD and must use “Equal Housing Opportunity.”

Both federal and state-chartered credit unions are prohibited from engaging in any advertising of real-estate-related loans that violate the Fair Housing Act or the Equal Credit Opportunity Act.

Related Links:

Legal Briefs

Consumer Financial Protection Bureau (CFPB)

The CFPB announced that it is joining the Task Force on Market Integrity and Consumer Fraud, which was created by an Executive Order.

The CFPB announced that Brian Johnson will assume the responsibilities of Acting Deputy Director. Johnson is currently the Principal Policy Director at the CFPB.

Federal Reserve Board (FRB)

The FRB released its Monetary Policy Report, which details economic and financial developments over the first half of 2018.

The FRB released its annual Report to Congress on the Profitability of Credit Card Operations of Depository Institutions.

The FRB released the minutes from its June 4th and 13th discount rate meetings.

Federal Trade Commission (FTC)

The FTC delivered prepared remarks to the Senate Committee on Banking, Housing, and Urban Affairs regarding the Fair Credit Reporting Act. The remarks focused on how the FTC works to enforce the accuracy of the FCRA, educate consumers about their rights, and data security requirements for credit bureaus.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of July 10, 2018. The last update prior to this was July 9, 2018.

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

 

Posted in Compliance.