Featured Product

    CFPB Proposes Changes to Data Points Required by 2015 HMDA Rule

    May 08, 2019

    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

    Featured Experts
    Related Articles
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    FDIC Letter on Submission of Call Reports by End of January 2020

    FDIC, in a letter to financial institutions, announced that the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2019 report date must be submitted to the Central Data Repository of the relevant US agencies by January 30, 2020.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Consults on Calculation of Own Funds Requirements for Market Risk

    EBA is consulting on the draft regulatory technical standards for calculation of the own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4489