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Each depositor insured to at least $250,000 per insured bank

Financial Institution Letters

FIL-58-2018
October 10, 2018

Home Mortgage Disclosure Act (HMDA): Bureau of Consumer Financial Protection Interpretive and Procedural Rule on Partial Exemptions from HMDA Requirements

Printable Format:

FIL-58-2018 - PDF (PDF Help)

Summary:

The Bureau of Consumer Financial Protection released an interpretive and procedural rule to implement and clarify amendments to HMDA made by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The rule provides further guidance from the Bureau on implementation of the partial exemptions available to qualifying institutions pursuant to the Act.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised institutions subject to HMDA and Regulation C. A HMDA exemption applies to institutions with assets at or below a threshold specified in Regulation C.

Highlights:

Continuation of FIL-58-2018

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Note:

FDIC financial institution letters (FILs) may be accessed from the FDIC's website at www.fdic.gov/news/news/financial/2018/

To receive FILs electronically, please visit www.fdic.gov/about/subscriptions/fil.html.

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

Financial Institution Letters
FIL-58-2018
October 10, 2018

Bureau of Consumer Financial Protection Interpretive and Procedural Rule to Implement Amendments to the Home Mortgage Disclosure Act Made by the Economic Growth, Regulatory Relief, and Consumer Protection Act

On August 31, 2018, the Bureau of Consumer Financial Protection issued an interpretive and procedural rule on the implementation of Section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Economic Growth Act) signed into law by the President on May 24, 2018.1

The Economic Growth Act amends Section 304(i) of the Home Mortgage Disclosure Act (HMDA) by providing partial exemptions from HMDA's requirements available to eligible insured depository institutions and insured credit unions (collectively, IDIs).2 The Economic Growth Act provides partial exemptions from HMDA's requirements for eligible IDIs with respect to closed-end mortgage loans, open-end lines of credit, or both. To be eligible for a partial exemption with respect to a particular type of loan, an IDI must have originated fewer than 500 loans of that type in each of the two preceding calendar years. The partial exemptions, however, are not available for an IDI that received a rating of "needs to improve record of meeting community credit needs" during each of its two most recent CRA examinations, or a rating of "substantial noncompliance in meeting community credit needs" in its most recent CRA examination.

The Bureau's rule provides clarifications related to the following matters:

The rule states that the Bureau anticipates initiating a notice-and-comment rulemaking to incorporate these interpretations and procedures into Regulation C and further implement the Economic Growth Act.

To supplement the rule, the FFIEC Filing Instructions Guide for HMDA Data Collected in 2018 (FIG) has been revised to reflect exemption codes.3 The Bureau also has issued additional resources to aid compliance.4

1 The rule was effective upon publication in the Federal Register. 83 FR 45325 (Sept. 7, 2018). The Bureau explained that “the rule merely interprets and provides guidance regarding what Congress required in section 104(a) of the [Economic Growth] Act and provides procedures related to those requirements.” Id. at 45332. The Bureau explained further that the rule “does not impose new, or change existing, substantive requirements that would require exercise of the Bureau’s legislative rulemaking authority.” Id.

2 Pub. L. 115-174, Section 104(a). HMDA is implemented by Regulation C, 12 CFR Part 1003.

3 The August 2018 version of the FIG is available at https://s3.amazonaws.com/cfpb-hmda-public/prod/help/2018-hmda-fig-2018-hmda-rule.pdf.

4 The Bureau’s Executive Summary of the rule is available at https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/bcfp_hmda_interpretive-procedural-rule_2018-08_executive-summary.pdf. The Bureau’s updated chart describing reportable HMDA data is available at https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201710_cfpb_reportable-hmda-data_regulatory-and-reporting-overview-reference-chart.pdf/.

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