In October, we alerted you to the fact that a Federal District Court had invalidated the CFPB’s increase of HMDA’s closed-end loan reporting threshold from 25 to 100, which occurred back in 2020. Since then, we have just been patiently waiting for the CFPB to chime in. Well, yesterday, they did.
The announcement confirmed, The decision means that the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA Final Rule, rather than the 100 loan threshold set by the 2020 HMDA Final Rule.
The CFPB also clarified it does not view any of this now effectively unreported data to be a priority and does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020.
Unfortunately, the CFPB failed to specifically mention if they expect institutions to comply with this “change” beginning on January 1, 2023. At this point, that is what we must assume and sadly, many institutions will be left scrambling these next three weeks.
We will be discussing this very briefly tomorrow during our HMDA A to Z webinar and during our Monthly Connection on Friday, so join us if you can. Again, stay tuned, as we are sure to have updates in the coming days and weeks.
Published
2022/12/07