CFPB is requesting comments on whether to make changes to data points that the CFPB’s October 2015 final rule implementing the Home Mortgage Disclosure Act (HMDA) added to Regulation C or revised to require additional information. Additionally, CFPB is requesting comments on the requirement that institutions report certain business- or commercial-purpose transactions under Regulation C. Comments must be received by July 08, 2019.
One of the goals of CFPB in gathering information in this proposed rule is to ensure that the data requirements established in the 2015 HMDA Rule appropriately balance the benefits and burdens associated with data reporting. Financial institutions were required to report their first data pursuant to the 2015 HMDA Rule by March 01, 2019. Now that financial institutions have completed their first submissions of the additional information required under the 2015 HMDA Rule and institution-specific submissions are available to the public, CFPB believes that they and other stakeholders may have additional and more accurate information to offer on the benefits and burdens associated with the data points required by the 2015 HMDA Rule.
CFPB seeks to assess the extent to which requiring reporting of information on business- or commercial-purpose loans made to a non-natural person and secured by a multifamily dwelling imposes burdens on financial institutions and furthers the purposes of HMDA. CFPB seeks information that might assist in deciding whether to propose to exclude such transactions from the requirements of HMDA, including information about the following:
- Value that data on such transactions provides in serving the purposes of HMDA
- Other benefits associated with reporting such transactions
- Burden imposed by the requirement to report data on such transactions
HMDA, which CFBP issued in October 2015, requires certain depository institutions and for-profit non-depository institutions to collect, record, and report data about origination and purchases of mortgage loans as well as mortgage loan applications that do not result in origination. The 2015 HMDA Rule implemented the new data points specified in the Dodd-Frank Act and re-adopted certain pre-existing data points added to Regulation C by the FED. The 2015 HMDA Rule added data points pursuant to the discretionary authority of CFPB under the HMDA sections 304(b)(5) and (6) and revised certain pre-existing data points to provide for greater specificity or additional information in reporting. The 2015 HMDA Rule also requires reporting of applications for, and origination of, dwelling-secured business- or commercial-purpose closed-end mortgage loans and open-end lines of credit for home purchase, refinancing, or home improvement purposes. Prior to the 2015 HMDA Rule, Regulation C covered closed-end, business- or commercial-purpose loans made to purchase, refinance, or improve a dwelling.
Before institutions had to comply with the new data reporting requirements in the 2015 HMDA Rule, CFPB, in September 2017, had issued a final rule amending certain aspects of the 2015 HMDA Rule (2017 HMDA Rule). Among other things, the 2017 HMDA Rule addressed certain technical errors in the 2015 HMDA Rule, eased the burden of reporting certain data requirements, and clarified key terms to facilitate compliance with Regulation C. In December 2017, CFPB issued a statement in which it indicated that it intended to engage in a rulemaking to reconsider various aspects of the 2015 HMDA Rule, such as the institutional and transactional coverage tests and the discretionary data points of the rule. This proposed rule is part of that rulemaking. Furthermore, section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act, which was signed into law on May 24, 2018, amended section 304(i) of HMDA by adding partial exemptions from the HMDA requirements for certain transactions of insured depository institutions and insured credit unions. Some data points about which the CFPB is soliciting information in this proposed rule are covered under the EGRRCP Act partial exemptions.
Related Link: Federal Register Notice
Comment Due Date: July 08, 2019
Keywords: Americas, US, Banking, Securities, Data Points, Regulation C, Reporting, Dodd-Frank Act, EGRRCP Act, Home Mortgage, HMDA, CFPB
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.