CFPB Proposal Targets Relief for HMDA Data Collection
On May 2, 2019, the Consumer Financial Protection Bureau (CFPB) issued an advance notice of proposed rulemaking (ANPR) to solicit comments relating to whether to make certain changes to Regulation C, implementing the Home Mortgage Disclosure Act (HMDA).
To recap, in its October 2015 HMDA final rule, the CFPB exercised discretionary authority in order to require the collection and reporting of data points in addition to the expanded HMDA data points listed in the Dodd-Frank Act. As part of the regulatory relief measures signed into law in May of 2018, certain institutions were provided with an exemption related to the requirement to collect and report certain HMDA data points. However, the regulatory relief measures did not change the underlying HMDA requirements.
With this ANPR, the CFPB solicits comments relating to whether to make changes to the data points it added to Regulation C or revised using its discretionary authority, and relating to the requirement that institutions report certain business- or commercial-purpose transactions under Regulation C. One of the information-gathering goals of the ANPR is to ensure the requirements appropriately balance the benefits and burdens associated with data reporting.
Table 1 from the ANPR provides the breakdown of data points added by the CFPB pursuant to its discretionary authority and is reproduced here for quick reference:
The ANPR also requests comment related to whether to make changes to Regulation C’s coverage of business- or commercial-purpose loans made to a non-natural person and secured by a multifamily dwelling. In particular, the ANPR seeks information that might assist the CFPB in deciding whether to propose to exclude such transactions from HMDA’s requirements.
Comments must be received no later than 60 days after the date the ANPR is published in the Federal Register,which is expected shortly. In particular, comments should address a number of specific questions set forth in the ANPR, which can be viewed in its entirety here: https://files.consumerfinance.gov/f/documents/cfpb_anpr_home-mortgage-disclosure-regulation-c-data-points-and-coverage.pdf
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