The rule amends updates made to the Home Mortgage Disclosure Act (HMDA) rule in 2015. With the amendment, the CFPB has temporarily modified reporting requirements for banks and credit unions that issue lines of credit for home equity
"The Home Mortgage Disclosure Act is a vital source of information on the health and fairness of the mortgage market," said CFPB Director Richard Cordray. "Today’s amendments show that the Consumer Bureau is committed to ensuring that financial institutions are able to comply with the rule, and to promoting transparency across the largest consumer financial market in the world.”
The HMDA required covered lenders to report home loan
information covering originations, purchases, and applications. Following the enactment of the Dodd-Frank Act, the CFPB updated HMDA-related regulations in 2015 to improve reporting by financial institutions.
Under an updated rule that is set to take effect in January 2018, a financial institution that made 100 home-equity lines of credit in each of the last two years would be required under the HMDA to report those loans.
The final rule issued by the CFPB increases this threshold to 500 loans for calendar years 2018 and 2019. This adjustment will allow the CFPB to look into whether it needs to make a permanent adjustment. The CFPB initially proposed the change in July.
Additionally, the final rule includes minor changes to HMDA regulations, including transition rules on how to report purchased loans and the reporting of the census tract of a property.
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Financial institutions that make 500 home-equity lines of credit over a certain period will be required to report such loans through 2018 and 2019, according to a rule issued by the Consumer Financial Protection Bureau (CFPB).