The Consumer Financial Protection Bureau (CFPB) has been busy setting what appears to be a broad regulatory agenda for the past few months. As discussed on this blog, the Bureau has issued an industry release Highlighting Industry Readiness Regarding COVID-19 Forbearance Plans, published proposed COVID-19 related changes to mortgage servicing rulessuggested that it will soon to issue an NPRM related to Dodd-Frank 1071, and suggested a delay among other things to implement his collection rules. When the light comes on at the end of the COVID-19 tunnel, the CFPB and other relevant authorities restarted the HMDA report clock.
CFPB ends pandemic redress for HMDA coverage
On April 1, 2021, the CFPB overturned seven policy statements made in 2020 under the Trump administration. One of these guidelines relieved financial institutions from reporting quarterly credit data under the Home Mortgage Disclosure Act (HMDA). Acting director of the CFPB, Dave Uejio, stated in a Press release that “providing regulatory flexibility to businesses should not come at the expense of consumers” and that “[b]As many financial institutions have developed more robust remote capabilities and demonstrated improved operations, it is no longer advisable to maintain this flexibility. ” The resignation itself notes that the CFPB “believes that companies have had sufficient time to adapt to the pandemic and should not be able to respond to consumer credit needs while complying with the quarterly data transfer requirement under Regulation C. without complying with the flexibility provided for in the declaration. The withdrawal itself is effective April 1, 2021, and HMDA applicants must submit their data for the first quarter of 2021 on or before May 31, 2021.
CFPB announces availability of 2020 HMDA data
The Federal Financial Institutions Examination Council (FFIEC) recently released the Modified Credit / Application Registers (LARS) for any financial institution that completed an HMDA data submission in 2020. Uejio stated in a Press release “HMDA data can help determine whether financial institutions are meeting their communities’ housing needs and can better encourage public sector investment[,] . . . Identify potential discriminatory lending patterns and eliminate unjustified differences in credit results and credit pricing. “
At this point, users can access the data through the FFIEC’s HMDA platform, which is located Here. Later this year, data will be available in other forms, including a nationwide loan-level dataset. The dataset contains all publicly available data from all HMDA reporters, aggregated reports with summary information by geography and lender, and the HMDA data browser that allows users to create custom datasets and reports.
FFIEC problems 2021 HMDA Conduct
The FFIEC recently published the 2021 edition of A Guide to HMDA Reporting. The 2021 guide covers the collection and reporting of residential mortgage loan application data under the HMDA 2021. A notable update to the 2021 guide is that it includes the recent change from 12 CFR § 1003 – Mortgage Disclosure (Regulation C). With this change, the permanent threshold for collecting and reporting data on closed mortgage loans will be increased from 25 to 100 loans effective July 1, 2020, and the permanent threshold for collecting and reporting data on open credit lines will be increased from 100 to 200. valid from January 1, 2022.