CFPB Grants Small Lenders Some Relief on Mortgage Data Reporting

By Jeff Bater

The Consumer Financial Protection Bureau is giving small lenders a break on reporting requirements under the Home Mortgage Disclosure Act.

HMDA regulations updated in 2015 required banks and other mortgage lenders to report detailed information on home-equity lines of credit if they made 100 such loans in each of the last two years.

The final rule announced Aug. 24 increases that threshold to 500 loans through calendar years 2018 and 2019 as the CFPB considers whether to make a permanent adjustment.

Small-Bank Concern

The bureau issued a proposal in July on home-equity lines after hearing from community banks concerned about the impact of the heightened data collection requirements that are on the horizon. The CFPB’s 2015 regulations greatly expanded the amount of HMDA data that must be reported to include more information on loan underwriting and pricing.

The CFPB and other financial regulators use HMDA data to keep up with mortgage market trends and to identify possible discriminatory lending patterns among lenders. The updated regulations are due to go into effect in January.

The Independent Community Bankers of America welcomed the relief announced by the CFPB Aug. 24, but was disappointed the exemption for small lenders wasn’t broader. The industry group urged the CFPB to raise the threshold to 2,000 loans and to make the increase permanent.

“We remain concerned about the staggering number of data requirements under the final rule and the number of community banks that will still be affected by the threshold cap,” ICBA President Camden Fine said in a statement.

To contact the reporter on this story: Jeff Bater in Washington at

To contact the editor responsible for this story: Michael Ferullo at

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