What You Need to Know About the S.2155 HMDA Changes
On Friday, August 31st, the CFPB issued an interpretive and procedural rule to implement and clarify HMDA changes made by section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155). They additionally issued an Executive Summary and revised Filing Instructions Guide (FIG).
The Act became law on May 24, 2018, but does not provide an effective date. The rule is effective immediately upon publication in the Federal Register. The Executive Summary provides additional information / clarification:
- The rule applies to data collected or reported under HMDA on or after May 24, 2018.
- Entities eligible for the partial exemption are not required to collect exempt data points on or after May 24, 2018 and are not required to report data that may have been collected on or before May 24, 2018.
The rule provides clarification and guidance on five (5) areas of S.2155 implementation, outlined below:
- Clarifies which of the data points are covered by the exemption:
- 22 data points representing 57 data fields are required for all reporters.
- 26 data points representing 53 data fields are covered by the exemption.
- Clarifies that only loans and lines of credit that are otherwise HMDA reportable count toward the thresholds for partial exemptions.
- Clarifies that the CRA ratings used to determine whether the CRA reporting exception applies are the two most recent CRA ratings as of December 31 of the preceding calendar year.
Institutions will not qualify for the partial exemptions if they received either of the following CRA ratings:
- “Needs to Improve” during each of the two most recent CRA examinations, as of 12/31 of the preceding calendar year
- “Substantial Noncompliance” on the most recent CRA exam, as of 12/31 of the preceding calendar year
- Designates a non-universal loan identifier (NULI) for partially exempt institutions. Entities that choose not to report the universal loan identifier (ULI) are required to report a non-universal loan identifier (NULI).
- Clarifies that insured depository institutions and insured credit unions covered by the partial exemption have the option of reporting some or all of the exempt data points, as long as they report all data fields within any exempt data point for which they report data.
QuestSoft held a free webinar specifically addressing S.2155 HMDA implementation on Wednesday, October 3, 2018. Click Here to view the recording.