Compliance Insights compliance-newsletter-march-2020 | Page 9

If a partial exemption applies to a covered transaction, an insured depository institution or insured institution may, but is not required to, collect, record and report these 26 data points. However, the insured depository institution or insured institution must collect, record and report the remaining 22 data points as required by the HMDA Rule, and otherwise comply with the HMDA for such covered transactions. Section 5 of the guide provides an expanded discussion of reportable data points. Collection and Reporting of Applicant Information (Section 2.4) For data collected on or after Jan. 1, 2018 (to be reported in or after 2019), the HMDA Rule amends the requirements for collection and reporting of information regarding an applicant’s or borrower’s ethnicity, race and sex. It also adds a requirement to report how the institution collects this information. A financial institution can report whether or not it collected the information on the basis of visual observation or surname. Attachment A of the guide includes the new sample data collection form providing the required aggregated categories and disaggregated subcategories for ethnicity and race. Section 6 of the guide provides an expanded discussion of recording requirements. Annual Reporting (Section 2.5) The HMDA Rule retains the requirement that a financial institution must submit its HMDA data to its appropriate federal agency by March 1 following the calendar year for which it collected the data. Beginning Jan. 1 2019, financial institutions were required to submit the new data set electronically in accordance with the HMDA Rule, using the new web- based submission tool and revised procedures available at http://ffiec.cfpb.gov/. Section 6 of the guide provides an expanded discussion of annual reporting. Quarterly Reporting (Section 2.6) HMDA data for each of the first three quarters of the year on a quarterly basis beginning in 2020. Section 6 of the guide provides an expanded discussion of quarterly reporting. Disclosure Requirements (Section 2.7) Effective Jan. 1, 2018 for data collected on or after Jan. 1, 2017 (to be reported in or after 2018), the HMDA Rule replaces Regulation C’s requirements to provide a disclosure statement and modified loan application register (LAR) to the public upon request with new requirements to provide notices that the institution’s disclosure statement and modified LAR are available on the CFPB’s website. The HMDA Rule also modifies the content of the posting required under Regulation C. Section 6 of the guide provides an expanded discussion of modified LAR, public disclosure statement and posted notice requirements. Attachment C of the guide provides model posting notices. Enforcement Provisions (Section 2.8) Beginning Jan. 1, 2020, the HMDA Rule provides inaccuracies or omissions in quarterly reporting are not violations of HMDA or Regulation C, if the financial institution makes a good-faith effort to report quarterly data timely, fully and accurately, and then corrects or completes the data prior to its annual submission. Section 7 of the guide provides an expanded discussion of HMDA enforcement. Additional Topics Section 8 of the guide address mergers and acquisitions, while Section 9 focuses on practical implementation and compliance recommendations. In addition to leveraging this guide, consider using the updated Regulatory and Reporting Overview Reference Chart for HMDA Data Collected as a resource. lll Note: The term “HMDA Rule” as used in the compliance guide refers collectively to the final HMDA rules released in 2015, 2017, 2018 and 2019; thus, although the guide has just been released, much of the content in the guide has already been analyzed and, as applicable for your institution, implemented. The HMDA Rule imposes a new quarterly reporting requirement for larger-volume reporters effective Jan. 1, 2020. In addition to their annual data submission, these larger-volume reporters will also electronically submit their 9