House and Senate Pass Bills Exempting Certain Depository Institutions From New HMDA Requirements

Premier Insights - Industry Updates - House and Senate Pass Bills Exempting Certain Depository Institutions From New HMDA Requirements

On January 18, 2018, the House passed H.R.2954, the Home Mortgage Disclosure Adjustment Act. The bill exempts certain depository institutions from collecting and reporting various expanded HMDA data points in the CFPB’s 2015 amendments to Regulation C that became effective on January 1, 2018.

Depository institutions originating fewer than 500 closed-end mortgage loans or fewer than 500 open-end lines of credit would receive regulatory relief in connection with expanded data points required by the amended regulation for, respectively, their closed-end mortgage loans or their open-end lines of credit.

On March 14, 2018, the Senate passed S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, a broader bill that contains similar provisions.

The specific exemptions are worded as follows according to congressional committee reports:

(i) Exemptions.–          

“(1) Closed-end mortgage loans.–With respect to a depository institution, the requirements of paragraphs (5) and (6) of subsection (b) shall not apply with respect to closed- end mortgage loans if the depository institution originated less than 500 closed-end mortgage loans in each of the 2 preceding calendar years.          

“(2) Open-end lines of credit.–With respect to a depository institution, the requirements of paragraphs (5) and (6) of         subsection (b) shall not apply with respect to open-end lines of credit if the depository institution originated less than         500 open-end lines of credit in each of the 2 preceding calendar years.”.

If the HMDA provisions in these bills are reconciled and passed into law, depository institutions eligible for the exemptions would still need to collect and report HMDA data points required prior to the amended regulation’s January 1, 2018, effective date.

More information and the status on the bills can be found here:
https://www.congress.gov/bill/115th-congress/house-bill/2954/actions?q=%7B%22search%22%3A%5B%22home%2Bmortgage%2Bdisclosure%2Bact%22%5D%7D.


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