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All in HMDA
In this Compliance Clip, Adam answers a HMDA question on whether income and property value should be included in the HMDA LAR when they are not the deciding factor, but are used in determining a credit decision. In other words, when income and property value were factors in the credit decision, but they're just a partial factor, should they be reported?
In this Compliance Clip (video), Adam answers a question that he recently received about reporting a temporary construction loan that has been modified on the HMDA LAR. Specifically, the initial loan was temporary financing and was designed to be replaced by a permanent loan, but was not sold on the Secondary Market as intended. Watch as Adam tries to simplify a somewhat confusing topic. A transcript of this video is now available.
On 1/27/22, the CFPB issued Version 1 of the 2022 Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart. The 38-page chart is intended to be used as a reference tool for data points required to be collected, recorded, and reported under Regulation C.
On December 23, 2021, the CFPB adjusted the HMDA exemption threshold from $48 million to $50 million. The adjustment is based on the 4.7 percent increase in the average of the CPI-W for the 12-month period ending in November 2021 (up from 1.6 in 2019 and 1.3 in 2020). Therefore, banks, savings associations, and credit unions with assets of $50 million or less as of Dec. 31, 2021, are exempt from collecting data in 2022.
On 12/17/21, the OCC issued the revised interagency Home Mortgage Disclosure Act (HMDA) examination procedures for determining compliance with HMDA and its implementing regulations. The interagency procedures update the April 19, 2019, FFIEC interagency examination procedures for the Home Mortgage Disclosure Act.
The CFPB announced that the publication of Average Prime Offer Rates (APOR) for the week of November 15, 2021 was delayed. This information was listed at the bottom of the page containing the CFPB’s rate spread calculator. As the CFPB states that these data are now available on the Bureau’s Rate Spread Calculator above, financial institution will want to ensure they are using the accurate data for the week of 1/15/21.
On 11/16/21, the Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) to seek input on rules implementing the Home Mortgage Disclosure Act (HMDA). The CFPB plans to review recent changes to the rule and evaluate their effectiveness.
The HMDA Filing Instructions Guide (FIG) has been updated for data collected in 2022. As this guide is updated an an annual basis for the new year, there appears to be minimal changes in the newest version of the Guide.
On June 14, 2021, the CFPB issued a report that reviews differences in lending patterns for lenders below and above the 100-loan closed-end threshold set by the 2020 Home Mortgage Disclosure Act rule. The CFPB also issued a blog post that explains the data source and analytical approach, as well as key findings from their report. Even though the information presented in the report covers all 2019 HMDA reporters with closed-end origination volume below 1,000, the CFPB explains that their report highlights the contrasts between the reporters whose origination volume was below 100 and those whose origination volume was over 100, as 100 corresponds to the closed-end reporting threshold set by the 2020 HMDA Rule.
On 3/31/2021, the FDIC announced that the Federal Financial Institutions Examination Council (FFIEC) had issued the 2021 edition of A Guide to HMDA Reporting: Getting It Right! for Home Mortgage Disclosure Act (HMDA)-related data collected in 2021 and reported in 2022. This longstanding compliance resource has regularly been used by financial institutions as a “go-to” HMDA resource as it can help financial institutions better understand HMDA requirements, including the data collection and reporting provisions.
