CFPB: Annual HMDA Threshold Adjustment Announced

HMDA Asset-Size Exemption Threshold Unchanged at $44 Million

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a final rule regarding the annual threshold adjustment under the implementing regulations for the Home Mortgage Disclosure Act.

Home Mortgage Disclosure Act

The CFPB issued a final rule regarding the asset-size exemption threshold for banks, savings associations, and credit unions under Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).

HMDA requires that the CFPB adjust this threshold yearly by the annual percentage change in the average of Consumer Price Index for Urban Wage Earners and Clerical Workers for each 12-month period ending in November, rounded to the nearest million dollars. This results in a change of zero for this period when rounded to the nearest million.

The asset-size exemption for banks, savings associations, and credit unions will remain at $44 million. As a result, these institutions with assets of $44 million or less as of December 31, 2015, are exempt from collecting HMDA data in 2016. An institution’s exemption from collecting data in 2016 does not affect its responsibility to report the data it was required to collect in 2015.

HMDA and the CFPB’s Regulation C require most mortgage lenders located in metropolitan areas to collect, report, and disclose data about mortgage loan applications, originations, and purchases. The data cover home purchase loans, home improvement loans, and refinancings. Data reported include the type, purpose, and amount of the loan; the race, ethnicity, sex, and income of the loan applicant; the location of the property; and loan pricing information for some loans. HMDA data are used to help determine whether financial institutions are serving the housing needs of their communities and to assist in identifying possible discriminatory lending patterns.

The rule will be effective Jan. 1, 2016 and will apply to data collection in 2016. The final rule is available at: http://www.consumerfinance.gov/regulations/