All in HMDA

On January 31, 2023, the Federal Reserve Board issued a letter to institutions supervised by the Federal Reserve regarding the changes to home mortgage disclosure act (HMDA) loan volume reporting threshold for closed-end mortgage loans. The letter addresses the impact on financial institutions supervised by the Federal Reserve of recent changes as a result of litigation related to the HMDA reporting threshold for closed-end mortgage loans.

On December 27, 2022, the CFPB adjusted the HMDA exemption threshold from $50 million to $54 million. The adjustment is based on the 8.6percent increase in the average of the CPI-W for the 12-month period ending in November 2022 (up from 1.3 in 2020 and 4.7 in 2021). Therefore, banks, savings associations, and credit unions with assets of $54 million or less as of Dec. 31, 2022, are exempt from collecting data in 2023.

On December 9, 2022, the CFPB issued a technical amendment that formally updates the Code of Federal Regulations to reflect the closed-end mortgage loan reporting threshold of 25 mortgage loans in each of the two preceding calendar years. This change comes after the CFPB announced through a blog post that the HMDA loan volume threshold for reporting data on closed-end mortgage loans has now decreased from 100 to 25 loans in each of the two preceding calendar years in accordance with a September 2022 court decision.

Over two months after the United States District Court for the District of Columbia issued an order vacating the 2020 Home Mortgage Disclosure Act (HMDA) Final Rule, the CFPB has finally broken their silence. On December 6, 2022, the CFPB announced through a blog post that the HMDA loan volume threshold for reporting data on closed-end mortgage loans has now decreased to 25 loans in each of the two preceding calendar years. Read more for a background on this change and how it might apply to you…

VIDEO: Analyzing HMDA Data for Fair Lending

In this Compliance Clip (video), Adam discusses how the regulators are analyzing HMDA data for fair lending and explains why financial institutions should be analyzing their own data as well - even if they aren’t a HMDA reporter. This is a topic that was covered in our upcoming Fair Lending Hot Topics program.

VIDEO: HMDA Demographic Information Determinants

In this Compliance Clip, Adam answers a question which had been a topic of debate before the CFPB finally issued a guidance, that is whether to list code 2 or code 3 on the HMDA LAR for when information about determinants are not available. And if you don’t know what is a determinant, watch this video to find out. A transcript of this video is now available.

On 3/29/2022, the FDIC announced that the Federal Financial Institutions Examination Council (FFIEC) had issued the 2022 edition of A Guide to HMDA Reporting: Getting It Right! for Home Mortgage Disclosure Act (HMDA)-related data collected in 2022 and reported in 2023. This longstanding compliance resource has regularly been used by financial institutions as a “go-to” HMDA resource as it can help financial institutions better understand HMDA requirements, including the data collection and reporting provisions.

VIDEO: HMDA Income & Property Value in Credit Decisions

In this Compliance Clip, Adam answers a HMDA question on whether income and property value should be included in the HMDA LAR when they are not the deciding factor, but are used in determining a credit decision. In other words, when income and property value were factors in the credit decision, but they're just a partial factor, should they be reported?