On February 3, 2023, the FDIC issued a Financial Institution Letter to inform supervised institutions of recent changes regarding the Home Mortgage Disclosure Act (HMDA) reporting threshold for closed-end mortgage loans and the FDIC’s supervisory approach for enforcing related requirements. According to the FDIC, it does not intend to initiate enforcement actions or cite HMDA violations for certain failures to report closed-end mortgage data collected in the last three years.
Like the CFPB’s stance on the changes to the HMDA loan origination thresholds, the FDIC recognizes that financial institutions affected by this change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with reporting obligations. Thus, the FDIC plans to implement a supervisory approach for FDIC-supervised institutions consistent with the CFPB’s approach for closed-end mortgage data. For FDIC-supervised institutions that are subject to Regulation C’s other coverage requirements, and originated at least 25 closed-end mortgage loans in each of the two preceding calendar years, but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years, the FDIC does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data for 2022, 2021, or 2020.
The FDIC added that FDIC-supervised institutions may elect to report data voluntarily for those years but does not expect those institutions to collect and report data retroactively for closed-end mortgage loans covered by the Court’s order vacating the CFPB 2020 HMDA Final Rule. Additionally, institutions affected by the Court’s order, and that meet the reporting thresholds of 25 closed-end mortgage loans in each of the two preceding calendar years as of 2023, should start collecting data in 2023 and reporting data in 2024.
The FDIC’s FIL-06-2023 can be found here.