Financial Institution Letter
Oct 10, 2018
Oct 10, 2018
The Bureau of Consumer Financial Protection released an interpretive and procedural rule to implement and clarify amendments to HMDA made by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The rule provides further guidance from the Bureau on implementation of the partial exemptions available to qualifying institutions pursuant to the Act.
- On August 31, 2018, the Bureau issued an interpretive and procedural rule to implement and clarify HMDA amendments made by the Economic Growth Act signed into law by the President on May 24, 2018.
- The Bureau's rule became effective on September 7, 2018. However, as interpreted by the Bureau, the HMDA amendments became effective when the Economic Growth Act was signed into law.
- The Economic Growth Act's HMDA amendments provide eligible insured depository institutions (IDIs) with a partial exemption from reporting certain data points with respect to closed-end mortgage loans, open-end lines of credit, or both. The partial exemptions are available to IDIs that meet conditions related to mortgage origination thresholds and Community Reinvestment Act (CRA) performance ratings.
- The Bureau's rule clarifies which data points are covered by the partial exemptions. The rule also clarifies that only loans and lines of credit that are otherwise reportable under Regulation C count towards the origination thresholds, as well as how to determine which CRA performance evaluations to consider in determining eligibility for a partial exemption.
- In addition, the rule clarifies that eligible IDIs generally may use a non-universal loan identifier for partially exempt transactions and may choose to report exempt data points as long as they report all data fields included in that data point.