HMDA Regulatory Developments | Wolters Kluwer
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  • HMDA and Related Regulatory Developments

    We’ve sifted through the HMDA regulation and found the updates we think are the most significant to you. Need all recent information about the HMDA regulation? Be sure to keep the CFPB’s website handy!

    On the Horizon

    We are still awaiting release of the CFPB geocoding tool.

    December 2017 – Beta testing on the HMDA Platform ends December 31, 2017; lenders will need to create new accounts

    The CFPB announced that beta testing on the HMDA Platform would end December 31, 2017, for transition to filing. The CFPB removed all test data from the platform. Lenders will be required to create new accounts for filing.

    December 2017 – CFPB announces an intention to grant a grace period for resubmission requirements and penalties and an intention to reconsider parts of the HMDA rule

    The CFPB announces that it does not intend to “require data resubmission unless data errors are material or assess penalties with respect to errors for data collected in 2018 and reported in 2019 under the Home Mortgage Disclosure Act (HMDA).” Additionally, the CFPB announces that it intends to reconsider parts of the HMDA rule and expressly mentions “institutional and transactional coverage tests” as well as “discretionary data points.” The CFPB goes on to advise that financial institutions can use 2018 as a period to identify gaps in HMDA implementation and make improvements to HMDA compliance management systems. (Note that the CFPB announced an intention only and that the subjects covered are limited to certain requirements under HMDA only. Lenders continue to be subject to other regulations, such as Regulation B, Fair Lending, and the CRA, that will require compliance that overlaps HMDA, and lenders continue to be subject to requirements of loan purchasers. It would be best for lenders to stay the course notwithstanding the CFPB’s intention to grant a grace period.)  

    December 2017 - The Federal Financial Institutions Examination Council (FFIEC) and Housing and Urban Development (HUD) Launches Check Digit Tool and Rate Spread Calculator, FFIEC/HUD Announce a HMDA Self Service Knowledge Portal

    The FFIEC and HUD announce the launch of a check digit tool, a rate spread calculator, and a HMDA Self Service Knowledge Portal. Lenders may enter a preliminary ULI into the check digit tool and the tool will generate a check digit to be added to the ULI. Lenders may also enter a complete ULI into the tool and the tool will validate the ULI. There is also a new rate spread calculator and a data base of questions and answers. (Note that since the tools were only released in December 2017, they have not been tested over time by the public. Also note that the questions and answers data base is very limited at this time.) Links for the above tools and questions and answers data base can be found here.

    November 2017- Fannie Mae and Freddie Mac publish an updated and redesigned Uniform Residential Loan Application (URLA); permissive use starts July 1, 2019, and the mandatory use date is February 2020

    Fannie Mae and Freddie Mac release of the newest static version of the URLA on November 17, 2017. The newest version includes (1) updates to the demographic information collection section (required by the August 2017 amendments to the HMDA ‘final’ rule); and (2) the preferred language question (required by the Federal Housing Finance Agency). Fannie and Freddie released the dynamic URLA on December 19, 2017.

    September 2017 – CFPB proposal for modifying data prior to release to protect privacy interests

    The CFPB announced proposed Policy Guidance for Disclosure of Loan-Level HMDA data. Read the proposal here.  

    September 2017 - CFPB finalized amendments to Regulation B under the Equal Credit Opportunity Act (ECOA)

    In September 2017, the CFPB finalized amendments to Regulation B under ECOA in order to bring the government monitoring information requirements under Regulation B and ECOA in sync with the demographic information collection requirements of Regulation C and HMDA. For those loans that are not subject to HMDA reporting, but are subject to government monitoring information collection under Regulation B and ECOA, lenders may use the aggregated questions or disaggregated questions. The CFPB announced proposed Policy Guidance for Disclosure of Loan-Level HMDA data. Read the proposal here.

    August 2017 - CFPB finalized amendments to HMDA ‘final’ rule and, among other things, temporarily increases the open-end threshold

    The most significant part of the August 2017 amendments is the temporary change in the threshold for reporting open-end lines of credit. The definition of a Financial Institution now temporarily provides that as to open-end lines of credit, a lender is not a Financial Institution required to collect and report data as to open-end lines of credit unless the lender originated at least 500 open-end lines of credit in each of the two preceding years. On January 1, 2020, absent other action, the definition automatically reverts back to 100 open-end lines of credit. In addition to the foregoing, the August 2017 amendments included numerous clarifications and substantial new guidance for data collection and reporting.

    Updated Information from the CFPB for Filing HMDA Data

    The CFPB issued (through the FFIEC) the updated data specification implementation guides for both the 2017 and 2018 reporting years. Read more.

    Collection of Expanded Race and Ethnicity Allowed in 2017

    The CFPB has issued a safe harbor allowing lenders to collect government monitoring information prior to the 1/1/2018 HMDA effective date without violating ECOA. Read more.

    2017 HMDA Submission Changes & Import Format

    The file format and place of filing for 2017 data has changed. The 2017 file format for submission is pipe delimited. During the submission process, Wiz will create the submission file in the new pipe delimited format. You do not need to make any changes to your import format for this file requirement. Read more.