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What Goes Up Must Come Down

Writing on Paper BHA bill by Representative Tom Emmer [1] (R-Min) that would increase the reporting threshold under the Home Mortgage Disclosure Act of 1975 [2] for open-end lines of credit and closed-end mortgage was introduced Tuesday. Titled the “Home Mortgage Disclosure Adjustment Act of 2017 [3]” (HMDA) the bill would exempt depository institutions with originations in the last two years under 2,000 open-end lines of credit and 1,000 closed-end mortgages from HMDA’s reporting and record keeping requirements. It would also withdraw the new and modified HMDA data points found in the CFPB’s rule.

Blaine Luetkemeyer [4], Chairman of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit [5], is an original co-sponsor of the bill.

"NAFCU thanks Rep. Emmer for introducing this important legislation that would ease the compliance burden for credit unions that will result from the HMDA rule requirements," said NAFCU VP of Legislative Affairs Brad Thaler. "We also thank Chairman Luetkemeyer for co-sponsoring this legislation. We look forward to working with the House and other members of Congress on this bill and other efforts to secure more credit union regulatory relief."

This isn’t the first bill of its kind—legislation introduced earlier this month in the Senate by Senator Mike Rounds [6], R-SD, and Heidi Heitkamp [7], D-ND, under the same title exempted depository institutions that have originated fewer than 500 open-end lines of credit and closed-end mortgages in the previous two years from HMDA’s reporting and recordkeeping requirements. Following the introduction of their bill, Rounds and Heitkamp wrote CFPB [8] Director Richard Cordray about their NAFCU echoed call for a one-year delay in the bureau’s revised HMDA rule.

A majority of the new HMDA requirements will come into effect January 1, 2018, affecting home equity lines of credit, establishing transactional thresholds for coverage, and expanding the number of HMDA data points to be collected from credit unions. According to NAFCU, they have long urged the CFPB to use the authority it has under the Dodd-Frank Act to provide credit unions more exemptions from its rules.