The Consumer Financial Protection Bureau today issued a proposal to change certain Home Mortgage Disclosure Act (HDMA) rules. Under the proposal, the CFPB would raise the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit.
The HDMA requires many financial institutions to maintain, report and publicly disclose loan-level information about mortgages. The data is meant to show whether lenders are serving the housing needs of their communities and help identify discriminatory lending patterns. However, many in the industry have said that the reporting requirements were too onerous for smaller lenders.
The CFPB said that the proposed rule change would “provide relief to smaller lenders from HDMA’s data reporting requirements, and would clarify partial exemptions from certain HDMA requirements that Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).”
“Today’s proposed changes would provide much-needed relief to smaller community banks and credit unions while still providing federal regulators and other stakeholders with the information we need under the Home Mortgage Disclosure Act,” said CFPB Director Kathy Kraninger. “The public is encouraged to submit their comments on the proposals, which will be considered by the bureau before the next step is taken.”