BCFP Issues Interpretive Rule on HMDA Amendments

On August 31, 2018 the Bureau of Consumer Financial Protection issued an interpretive and procedural rule to implement and clarify the requirements of section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Act). This portion of the Act amended the Home Mortgage Disclosure Act (HMDA). The Bureau also released updates to the Filing Instructions Guide (FIG) for HMDA data collected in 2018 to incorporate the Act as implemented and clarified by the newly issued rule.

The Act contains provisions that are intended to decrease the burden smaller depository institutions face in complying with HMDA and its implementing regulation, Regulation C. The Bureau notes that financial institutions have raised questions about the new partial HMDA exemptions and how the exemptions affect collection and reporting of data for transactions with final action taken in 2018 or subsequent years. The Bureau is issuing this interpretive rule in order to provide answers to these questions.

The Bureau explains that the new interpretive rule clarifies that insured depository institutions covered by a partial exemption have the option of reporting exempt data fields as long as they report all data fields within any exempt data point for which they report data. The rule also clarifies:

  • that only loans and lines of credit that are otherwise HMDA reportable count toward the thresholds for the partial exemptions
  • which of the data points in Regulation C are covered by the partial exemptions, and
  • the exception to the partial exemptions for negative CRA examination history.

The rule also assigns a non-universal loan identifier for partially exempt transactions for institutions that choose not to report a universal loan identifier.

The Bureau said it anticipates that it will initiate a notice-and-comment rulemaking at a later date that will incorporate these interpretations and procedures into Regulation C.

The new interpretive rule can be found here.

The updated Filing Instructions Guide (FIG) can be found here.

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