Information About the Recent Changes to the Home Mortgage Disclosure Act
Friday, July 13, 2018 9:00 AM

Recently, NCUA, along with the other financial regulators, issued a joint statement on the amendments to HMDA in the Economic Growth, Regulatory Relief, and Consumer Protection Act (s. 2155). 

The Act provides partial exemptions for some insured credit unions from certain HMDA requirements. The partial exemptions are generally available for closed-end mortgage loans, if the credit union originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years, and for open-end lines of credit, if the credit union originated fewer than 500 open end lines of credit in each of the two preceding calendar years.  However, the statutory language in Regulation C has not been amended yet, leaving many credit unions unsure of how to proceed in the interim.  The statement does say that the Bureau expects to provide guidance sometime later this summer on the applicability of the Act to HMDA data collected in 2018...not helpful for right now!  Until we receive guidance, CUNA has been telling credit unions to continue operations as normal and collect all of the expanded data points as if S. 2155 had not happened.  Better to overcomply than undercomply until the rule is actually amended.

Additionally, the statement does tell us that LAR formatting will not be affected by the Act, and LARs will be formatted according to the previously-released 2018 Filing Instructions Guide for HMDA Data Collected in 2018.  LARs will be submitted to the same HMDA platform.  And finally, NCUA has stated that S.2155 will not change its approach to supervision, which was previously stated in a Letter to Credit Unions on Supervisory Priorities.  That letter stated that for HMDA data collected in 2018 and reported in 2019, the NCUA does not intend to cite violations for data errors found in the quarterly LARs, nor require data resubmission unless data errors are material. Furthermore, the NCUA does not intend to assess penalties with respect to errors in data collected in 2018 and reported in 2019.

Source:  CUNA Compliance Blog