CFPB Announces Increase in HMDA Asset-Size Exemption Threshold to $43 Million
by: Anna DeSimone
December 30, 2013 the Consumer Financial Protection Bureau (CFPB) issued a final rule adjusting the asset-size exemption threshold for banks, savings associations, and credit unions under Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).
The rule is effective as of January 1, 2014 and will apply to data collection in 2014.
HMDA requires that the CFPB adjust this threshold yearly by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
- Based on the adjustments announced, the asset-size exemption for banks, savings associations, and credit unions will increase to $43 million.
- As a result, these institutions with assets of $43 million or less as of December 31, 2013, are exempt from collecting HMDA data in 2014.
- An institution’s exemption from collecting data in 2014 does not affect its responsibility to report the data it was required to collect in 2013.
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 refinancing’s. 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.
About the Author
Anna DeSimone is President and Founder of Bankers Advisory, Inc. She can be reached at anna@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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