CFPB Proposes Changes to Data Points Required by 2015 HMDA Rule
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
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous ArticleESRB Opinion on DNB Proposal for Stricter National Measure Under CRR
ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures
The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).
NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks
The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development
EBA Issues Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.
EC Adopts Regulation on Own Funds, Issues Other Updates
The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model
CDP Platform to Report Plastic-Related Impact, Issues Other Updates
The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide
IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments
The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,
BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks
The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.
FCA Sets Out Business Plan, Launches TechSprint on Greenwashing
The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets
UK Committee Sets Out Recommendations for Next Phase of Open Banking
The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members
ECB Publishes Multiple Regulatory Updates for Banking Institutions
The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,