The CFPB is proposing important changes to Regulation C, which implements the Home Mortgage Disclosure Act. One change would increase the threshold above which financial institutions, including credit unions, must comply with the regulation. The CFPB has also issued a potentially significant Advanced Notice of Proposed Rulemaking (ANPR) seeking feedback on what information originators should not be required to gather.

Proposed Rule
 
Must your credit union currently comply with the Home Mortgage Disclosure Act?

1. Yes
2. No

  If yes, approximately how many mortgage applications does your credit union process each year?

If your credit union originates 25 or more closed mortgage loans in each of the two preceding calendar years it must comply with RESPA, provided it also meets the other triggering criteria. In addition, in 2017, the CFPB established that financial institutions originating 500 or more open-end lines of mortgage loans for two consecutive calendar years had to also comply with HMDA. The CFPB wants feedback as to whether it should permanently raise the 25 mortgage threshold to either 50 or 100 closed-end loans in each of the preceding two calendar years.
 
Which of the following best explains your position?
 

1. I believe only financial institutions that originate 50 closed-end mortgage loans in each of the preceding two calendar years should have to comply with HMDA.
2. I believe only credit unions that originate 100 or more closed-end loans in two consecutive preceding calendar years should have to comply with HMDA.
3. I do not believe the threshold should be increased beyond 25 mortgages.

Why? Please explain your answer.

The Dodd-Frank Act mandated that financial institutions provide information on open-end lines of credit. Currently institutions that originate 500 or more such loans in each of the preceding calendar years must provide HMDA data.
 
How many home equity lines of credit does your credit union provide each year?

The CFPB is proposing to permanently set the HMDA threshold for compliance with regard to open end lines of credit at 200 in each of the preceding two years. This threshold would take effect January 1, 2022.
 
Are you in favor of a permanent threshold of 200 open-end lines of credit?
 

1. Yes, 200 is an appropriate number
2. No, the threshold should be even higher
3. No, the threshold should be lower

Why? Please explain your answer below.

Advanced Notice of Proposed Rulemaking

In the Dodd-Frank Act, Congress added a dozen categories of data points which had to be collected by a mortgage originator subject to the Home Mortgage Disclosure Act. Congress also gave the CFPB the authority to add additional categories over and above what Congress had mandated. In this ANPR, the bureau is seeking feedback on whether or not it should eliminate some of the CFPB’s additional data point categories. Below is a list of the additional categories added by the CFPB.
 
For each category, indicate whether you oppose or are in favor of the elimination of this information, along with an estimate as to the cost involved in obtaining this information if possible.
 
Data Points Added by 2015 HMDA Rule Pursuant to Discretionary Authority
 
Reasons for Denial

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Origination Charges

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Discount Points

1. Oppose elmination
2. In favor of elimination

Cost involved in complying with regulation:

Lender Credits

1. Oppose elimination
2. In favor of eliminatinon

Costs involved in complying with regulation:

Interest Rate

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Debt-to Income Ratio

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation

Combined Loan to Value Ratio

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Manufactured Home Secured Property Type

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Multi-family Affordable Units

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Manufactured Home Land Property Interest

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Automated Underwriting System

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Reverse Mortgage Flag

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Open-End Line of Credit Flag

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Business or Commercial Purpose Flag

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Data Points Revised by 2015 HMDA Rule to Require Additional Information

Loan Purpose

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Occupancy Type

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Ethnicity

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Race

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Legal Entity Identifier (LEI)

1. Oppose elimination
2. In favor of elimination

Cost involved in complying with regulation:

Thank you for your participation!