Blog Post

Will It Ever End? The CFPB Proposes Additional HMDA Rulemaking

michaelchristians • May 3, 2019

On May 2nd, the Consumer Financial Protection Bureau (“CFPB”) issued an NPRM which proposes to raise the coverage thresholds for collecting and reporting HMDA data in connection with both closed-end mortgage loans and open-end lines of credit. Alongside the NPRM, the CFPB also issued an ANPR seeking information about the costs and benefits associated with reporting certain data points under HMDA.

Notice of Proposed Rulemaking (“NPRM”)
Currently, a financial institution is required to report HMDA data in connection with closed-end mortgage loans if it originated at least 25 of these loans in each of the two preceding calendar years. The CFPB is proposing two options for increasing this closed-end reporting threshold:
• 50 closed-end mortgage loans in each of the two preceding calendar years; or
• 100 closed-end mortgage loans in each of the two preceding calendar years.
As a result, under the proposed rule, a financial institution that originates fewer than 50 (or alternatively, 100) closed-end mortgage loans in each of the two preceding calendar years would not be required to collect and report HMDA data in connection with closed-end mortgage loans beginning January 1, 2020.

The CFPB’s original HMDA rule set the open-end reporting threshold at 100. This was temporarily increased to 500 for calendar years 2018 and 2019. However, this temporary increase is currently scheduled to expire on January 1, 2020. Under the CFPB’s NPRM, the agency is proposing to extend the temporary increase for another two years and then permanently set the reporting threshold for open-end lines of credit at 200. As a result, a financial institution that originated fewer than 500 open-end lines of credit in each of the two preceding calendar years would continue to be exempt from open-end reporting until January 1, 2022. Thereafter, to continue to qualify for the exemption from open-end reporting the financial institution will need to originate less than 200 open-end lines of credit in each of the two preceding calendar years.

Advance Notice of Proposed Rulemaking (“ANPR”)
In its ANPR, the CFPB is soliciting comments on the following aspects of HMDA and Regulation C:
• Effective January 1, 2018, HMDA reportable institutions were required to begin collecting 27 additional data points in connection with every HMDA reportable transaction. Recognizing the significant compliance burden placed on financial institutions as a result of the increased collection requirements, the CFPB is soliciting feedback as to what modifications can be made to balance the benefits and burdens associated with data reporting.
• Currently, business or commercial purposes loans made to a non-natural person and secured by a multifamily dwelling are reportable under HMDA. The CFPB is soliciting feedback as to whether it would be appropriate to exclude these types of transactions from HMDA’s requirements.

The comment period for the NPRM closes 30 days after publication in the Federal Register. The comment period for the ANPR closes 60 days after publication in the Federal Register.

The post Will It Ever End? The CFPB Proposes Additional HMDA Rulemaking appeared first on Michael Christians Consulting, LLC.

< Older Post Newer Post >

Share this post

Recent Blog Posts

NCUA Outlines Changes to Exam Scheduling Policy

By Michael Christians • February 12, 2025

In Letter to Credit Unions 25-CU-03 , the National Credit Union Administration (NCUA) announced its new exam scheduling policy. Effective January 1, 2025, federally insured credit unions (FICUs) will be examined according to the following schedule: 8 to 12 months following its last examination date FICUs with ANY of the following characteristics - A CAMELS rating of 3, 4, or 5, Considered less than well capitalized, An outstanding enforcement action, or Assets greater than or equal to $10 billion. FICUs with assets between $1 billion and $10 billion, and A CAMELS rating of 3, 4, or 5, or A change in CEO since its last examination. 12 to 16 months following its last examination date FICUs with assets between $1 billion and $10 billion, and A CAMELS rating of 1 or 2, and No change in CEO since its last examination. 14 to 18 months following its last examination date Federal credit unions (FCUs) not included above Once every 5 years Federally insured state-chartered credit unions (FISCUs) not included above The NCUA believes this revised schedule will allow it to better respond to emerging risks and priorities using available resources. It is important to note that nothing in the new schedule limits the NCUA's authority to examine any FICU as frequently as the agency deems necessary.

Eleventh Circuit Vacates New TCPA Prior Express Written Consent Requirements

By Michael Christians • January 29, 2025

Back in December 2023, the Federal Communications Commission (FCC) adopted a new rule amending the prior express written consent requirements under the Telephone Consumer Protection Act (TCPA). That rulemaking would have done a couple of things. First, it would have clarified that a consumer’s prior express written consent can apply to not more than one seller. In other words, the rule would have prevented a company from obtaining a consumer’s consent to the receipt of advertising and telemarketing messages both for itself as well as its affiliates. Second, the rule would have required that a consumer’s consent be logically and topically associated with the interaction that prompted the consent. That second requirement was particularly concerning for financial institutions. The language of the rulemaking seemed to suggest that an institution that captured prior express written consent at the time of account opening could not later rely on that same consent for purposes of sending advertising or telemarketing messages related to loans, credit cards, or other non-deposit products. The Insurance Marketing Coalition asked for a judicial review of the rulemaking at the Eleventh Circuit Court of Appeals. On January 24, 2025, that court vacated the new requirements. In its order, the court found that the FCC exceeded its statutory authority because the amendments to the definition of prior express written consent impermissibly conflicted with the statutory definition of the same term under the TCPA.

CFPB Reminds Institutions Payday Lending Rule Takes Effect March 30th

By Michael Christians • January 25, 2025

Following years of litigation, the Consumer Financial Protection Bureau’s 2017 payday lending rule will take effect on March 30, 2025. Three types of consumer loans are covered by the payday lending rule: Short-term loans that require repayment within 45 days, Longer term loans with a balloon payment, and Longer term loans for which the APR exceeds 36% and automatic payment is required from the consumer's account. Under the rule, covered lenders will have to adhere to both payment restrictions and notice requirements. First, when two consecutive automatic payment attempts have failed in connection with a covered loan, the lender is prohibited from attempting another withdrawal until it has obtained a new and specific authorization from the consumer. Second, the rule imposes the following notice requirements in connection with a covered loan: Written notice before the lender attempts to withdraw the first automatic payment from the consumer's account, Written notice before a subsequent automatic payment attempt that will differ in amount or effective date, and Written notice when two consecutive payment attempts have failed. Lenders that do not originate more than 2,500 covered loans in a calendar year are exempt from the rule’s requirements. Additional implementation resources regarding the payday lending rule are available from the CFPB here .

Address

5438 South Prairie View Drive

West Des Moines, IA 50266

Phone

319-325-1171

Email

michael@mchristiansconsulting.com

Sitemap

Michael Christians Consulting, LLC

This website has been built to be accessible for all users. If you experience any difficulty in accessing this website, please contact us for assistance.

Client Login