Compliance Insights compliance-newsletter-march-2020 | Page 12

HMDA Final Rule and New Guidance Released The first quarter of 2020 provided many developments in the way of final rules related to the Home Mortgage Disclosure Act (HMDA). Doeren Mayhew has outlined some of the major ones below. Volume-Threshold Exemption Extension Clarification: Partial Exemption The CFPB extended the temporary loan-volume The following points for depository institutions and threshold exemption for the HMDA reporting related to real estate secured open-end lines of credit for another two years. Effective Jan. 1, 2020, the final rule extended the temporary loan-volume threshold exemption of 500 open-end lines of credit until Jan. 1, 2022. This means institutions originating fewer than 500 covered open-end lines of credit in each of the two preceding calendar years are not required to collect, record or report HMDA data associated with open-end lines of credit. insured credit unions covered by the partial exemption were clarified: Regulation C, 12 CFR Part 1003, which implements HMDA, originally required covered institutions to report HMDA data associated with home equity lines of credit when the institution originated 100 or more of these loans in each of the two preceding calendar years. The Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA) provided temporary relief by increasing this volume threshold reporting requirement to 500 open-end lines of credit for 2018 and 2019. This temporary adjustment, which was poised to sunset at the beginning of 2020, is now effective through the end of 2021. The CFPB has signaled an intent to address, in a separate final rule, the changes it proposed to the permanent coverage thresholds for open-end lines of credit and closed-end mortgage loans. In the interim, the CFPB believes extending the current temporary increase in the open-end coverage threshold for an additional two years will allow it to consider the appropriate level for the permanent open-end coverage threshold for data collected beginning Jan. 1, 2022. 12 • Depository institutions and insured credit unions covered by the partial exemption have the option of reporting exempt data fields, if all data fields within any exempt data point are reported. • Only loans and lines of credit that are otherwise HMDA reportable count toward the volume thresholds for the partial exemptions. • Which data points in Regulation C are covered by the partial exemptions. • Institutions covered by the partial exemption that choose not to report a universal loan identifier (ULI) can report a non-universal loan identifier (non-ULI), provided the non-ULI meets form and content requirements. • The partial exemption is not available for insured depository institutions with less than satisfactory examination histories under the Community Reinvestment Act. New Guidance In mid-February, the Federal Financial Institutions Examination Council (FFIEC) released new guidance for HMDA reporters. The 2020 edition of the Guide to HMDA Reporting: Getting It Right! reflects the updates outlined above and further incorporates content from the HMDA rule and appendices with information for filers. This guide was developed by member agencies of the FFIEC and is located on its website at www.ffiec.cfpb.gov. lll