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BCFP Clarifies HMDA Rules

On Friday, the Bureau of Consumer Financial Protection (BCFP) released an “interpretive and procedural rule” designed to implement and clarify the requirements of section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act amendment of the Home Mortgage Disclosure Act (HMDA).

In addition, theBCFP released an updated Filing Instructions Guide for 2018 HMDA data collected.

The president signed the Economic Growth, Regulatory Relief, and Consumer Protection Act on May 24. The Act contains provisions aimed at decreasing the burden on smaller depository institutions when facing compliance with HMDA and its implementing regulation. According to the CFPB, several institutions have questions about the exemptions to HMDA made in the Act, specifically, how they impact collecting and filing for 2018. The new rule aims to clarify these concerns.

According to the BCFP, the rule gives insured depository institutions and insured credit unions covered by a partial the option to exempt data fields as long as they report all data fields within any exempt data point for which they report data. Additionally, the rule notes that loans and lines of credit that are otherwise HMDA reportable are the only category of loans and lines of credit which count toward the partial exemption threshold.

For institutions that choose not to report a universal loan identifier, the rule designates a non-universal loan identifier for a partially exempt transaction for their exempt transactions, while clarifying the exception to the partial exemptions for negative Community Reinvestment Act examination history. The rule also clarifies which of the data points in Regulation C are covered by the partial exemptions.

The BCFP plans to begin a notice-and-comment rulemaking at a later date. This will implement these interpretations and procedures into Regulation C and further implement the Act. For more information, visit consumerfinance.gov.

For the complete interpretive and procedural rule, click here. For the updated Filing Instructions Guide, click here.

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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