WebThe Guidelines should assist financial institutions seeking to better understand the approach the FDIC will use to assess HMDA data as part of the examination process. As originally adopted, HMDA identifies its purposes as providing the public and public officials with information to help determine whether financial institutions are serving the housing needs of the communities in which they are located, and to assist public officials in their determination of the distribution of public sector investments in a manner designed to improve the private investment environment. Snapshot National Loan-Level Dataset. The Bureau estimated the 2015 HMDA Final Rule would result in ongoing costs of the rule of $53.6 million to $68.3 million per year for all reporters, as compared to one-time and start-up costs of between $177 million and $326.6 million per year.[38]. Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, section 1211 (Fair lending oversight and enforcement section), 103 stat. In the HMDA Rule, the Bureau modified Regulation C's transactional coverage in several ways. 6 Pub. or have questions about the content, WebReportable Data For HMDA data collected on or after January 1, 2018, covered institutions will collect, record, and report additional information about originations of, purchases of, and applications for covered loans. In the HMDA Rule, the Bureau modified Regulation C's transactional coverage in several ways. HMDA data are used to assist in determining whether financial institutions are serving the housing credit needs of The 2012 HMDA data are the first to use the census tract delineations and population and housing characteristic data from the 2010 Census and from the American Community Survey (ACS) 1. A lender should not use the revised categories for collecting HMDA data before that date, unless the lender is certain that the application will not receive final action until 2004 (e.g., because it was received on December 30, 2003). A Brief Note on General Lending Patterns of Small to Medium Size Closed-end HMDA Reporters, HMDA Data Point, June 14, 2021, 12 CFR 1003.1. Previously, Regulation C allowed, but did not require, reporting of home-equity lines of credit and there was no minimum coverage threshold. HMDA Data Publication - Consumer Financial Protection Bureau The Bureau also recently published a study on thresholds that analyzed differences in lending patterns for lenders below and above the 100-loan closed-end threshold set by the 2020 HMDA Final Rule. The Bureau views the assessment as an opportunity to evaluate whether prior HMDA rulemakings have improved upon the data collected, reduced unnecessary burden on financial institutions, and streamlined and modernized the manner in which financial institutions collect and report HMDA data. For general information on the partial exemptions, see section 4.3 of the HMDA Small Entity Compliance Guide and Regulation C, 12 CFR 1003.3(d) . WebHMDA Interagency Consumer Laws and Regulations HMDA 3 80 Fed. Prior to the passage of the Dodd-Frank Act, the Board required financial institutions to report rate spread for higher-priced mortgage loans. The Bureau recognizes the importance of the HMDA Rule, however, and believes that the public would benefit from the Bureau conducting a voluntary assessment. Before publishing a report of its assessment, the Bureau must invite public comment on recommendations for modifying, expanding, or eliminating the significant rule or order.[3]. The 2018 HMDA Rule and 2019 HMDA Final Rule clarified which of the data points in Regulation C are covered by the EGRRCPA partial exemptions. Generally, for the subsequent 2017, 2018, 2019, and 2020 HMDA rules, the Bureau estimated that changes in thresholds and other requirements would represent savings in ongoing costs for affected entities. Beginning with HMDA data collected in 2017, financial institutions were no longer required to provide their modified loan/application registers and disclosure statements directly to the public. Public Law 104-121, tit. These markup elements allow the user to see how the document follows the Specifically, the Bureau intends to focus its evaluation of the HMDA Rule on the following primary topic areas: (1) Institutional coverage and transactional coverage; (2) data points; (3) benefits of the new data and disclosure requirements;[50] The Bureau also considered in the 2015 HMDA Final Rule whether the new reporting requirements would cause smaller institutions to exit the mortgage market, either for closed-end mortgage loans or for open-end lines of credit. non-bank mortgage companies) institutions, to report HMDA data. To allow for easier public access to all LAR data, the Bureaus 2015 HMDA rule made the data for each HMDA filer available electronically on the FFIECs HMDA Platform. Property Address As a data collection rule, the HMDA reporting requirements have had little direct impact on the features of consumer financial products and services. 80 FR 66128 (Oct. 28, 2015). In August 2020, the CFPB was sued in the U.S. District Court for the District of Columbia by the National Community Reinvestment Coalition, et al., over the CFPB's final rule amending Regulation C to raise the loan-volume coverage thresholds for financial institutions reporting data under HMDA (the 2020 HMDA rule). The amendments to the institutional coverage criteria for depository institutions took effect on January 1, 2017. To inform the assessment, the Bureau hereby invites members of the public to submit information and other comments relevant to the issues identified above and below, information relevant to enumerating costs and benefits of the HMDA Rule to inform the assessment, and any other information relevant to assessing the effectiveness of the HMDA Rule in meeting the purposes and objectives of title X of the Dodd-Frank Act (section 1021) and the specific goals of the Bureau (enumerated above). L. 115-174, 132 Stat. Home Mortgage Disclosure (Regulation C); 82 FR 43088 (Sept. 13, 2017). [42], Congress enacted HMDA in 1975 to create transparency in the mortgage market. The major provisions of the HMDA Rule are summarized below. 43 Questions and Answers Regarding the Use the PDF linked in the document sidebar for the official electronic format. Among other changes, the Dodd-Frank Act expanded the scope of information relating to mortgage applications and loans that institutions Follow the instructions for submitting comments. 183, 524-26 (1989). WASHINGTON, D.C. The Home Mortgage Disclosure Act (HMDA) Modified Loan Application Register (LAR) data for 2021 are now available on the Federal Financial The only exception to this is the temporary increase in the reporting exemption related to open-end lines of credit from 100 to 500 loans. [7] 6 Pub. One Year National Loan-Level Dataset. [8] Register (ACFR) issues a regulation granting it official legal status. Applications should be reported on a LAR as either a refinance or a cash-out refinance depending upon the products and procedures of a specific financial A ratio thats nearing unmanageable levels of debt: between 43 and 49 percent. Legal Entity Identifier. Bureau of Consumer Fin. III. The Bureau considered qualitative factors as well. All institutions selected. [40] The Bureau also stated that the HMDA data must be updated in order to address the informational shortcomings exposed by the financial crisis and to meet the needs of homeowners, potential The HMDA Rule amended the Board's pre-existing institutional coverage criteria that determine which institutions meet the definition of financial institution and are required to report HMDA data. The Bureau generally refers herein to the obligation to report data instead of listing all of these obligations in each instance. HMDA Dataset Filtering - Consumer Financial Protection Bureau [39] CFPB-2021-0018, by any of the following methods: The Agencies use HMDA data to support a variety of activities. Combined Loan-to-Value Ratio, Loan Purpose https://www.regulations.gov. Later this year, the 2021 HMDA data will be available in other forms to provide users insights into the data. explained should be identified as errors. Use information and data from the preceding December 31 date when determining whether you meet the reporting criteria. The Bureau considers an evaluation of the balancing test used to determine whether and how HMDA data should be modified prior to its disclosure to the public to protect applicant and borrower privacy to be outside the scope of its assessment of the HMDA Rule. See comment 203.4(a)-4(iv). About the Federal Register The documents posted on this site are XML renditions of published Federal https://www.reginfo.gov/public/do/eAgendaMain. Because paper mail in the Washington, DC, area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. Select or type the name of one or more LEIs to filter. Data Background and Purpose of HMDA - Federal Financial Institutions Reg. HMDA the material on FederalRegister.gov is accurately displayed, consistent with The Bureau also invites comments on additional data or analyses that would be helpful for the Bureau to evaluate the effects of different institutional coverage and loan-volume thresholds. A Beginners Guide to Accessing and Using Home The assessment must address, among other relevant factors, the rule or order's effectiveness in meeting the purposes and objectives of title X of the Dodd-Frank Act and the specific goals stated by the Bureau. The Bureau also considered the effects of the HMDA Rule on the market in making its determination. A frequent question we get is whether a financial institution must collect government monitoring information (GMI) in accordance with Reg. 38. In May 2019, the Bureau issued an advance notice of proposed rulemaking (ANPR) relating to certain data points that the Bureau added or revised in the 2015 HMDA Final Rule as well as Regulation C's coverage of certain business- or commercial-purpose transactions. [16] If you require this document in an alternative electronic format, please contact points pursuant to the Bureau's discretionary authority under HMDA section 304(b)(5) and (6), and revised certain pre-existing Regulation C data points. Data collected under the Home Mortgage Disclosure Act (HMDA) 1 continue to reveal that certain minorities are more likely to receive high-cost mortgages than other racial or ethnic groups. Financial Institution HMDA requires financial institutions to collect and report information about mortgage loans, which HMDA section 303(2) defines as loans secured by residential real property or home improvement loans. HMDA data are used to assist in determining whether financial institutions are serving the housing credit needs of their local communities; Under the institutional coverage criteria set forth in the HMDA Rule, depository institutions and nondepository institutions are required to report HMDA data if they: (1) Meet either the closed-end or open-end coverage threshold in each of the two preceding calendar years, and (2) meet all of the other applicable criteria for institutional coverage. For 3. Congress later expanded HMDA to, among other things, require financial institutions to report racial characteristics, gender, and income information on applicants and borrowers. Webdata is merged with the HMDA data using the so-called RSSD identifier, as well as the FDIC certifier, and OCC charter numbers.7 Geographical mapping The HMDA provides the census tract, which is then translated into a ZIP code using both the 2010 US Census Bureau data (from 2011 onwards) and the U.S. Department of Housing and Urban Development The Bureau has revised the institutional and transactional coverage thresholds that determine whether financial institutions are required to collect, record, and report any HMDA data on closed-end mortgage loans or open-end lines of credit in recent years. The Bureau has amended the levels of the coverage thresholds several times since the enactment of the Dodd-Frank Act. This rule also incorporated into Regulation C the interpretations and procedures from the 2018 HMDA Rule and implemented further the EGRRCPA. Start Printed Page 66228 12/23/16 - The CFPB announces the annual threshold adjustment . For example, some Agencies use HMDA data as part of their fair lending examination process. Financial institutions regulated by the Office of the Comptroller of the Currency (OCC) are required to report reasons for denial on their HMDA loan/application registers pursuant to 12 CFR 27.3(a)(1)(i) and 128.6. Similarly, the EGRRCPA provides that an insured depository institution or insured credit union does not need to collect or report certain data with respect to open-end lines of credit if it originated fewer than 500 open-end lines of credit in each of the two preceding calendar years. HMDA Data The 2020 HMDA Final Rule also increased the closed-end coverage threshold, from 25 to 100 closed-end mortgage loans. Institutional Coverage and Loan-Volume Thresholds, https://www.federalregister.gov/d/2021-25330, MODS: Government Publishing Office metadata, https://www.consumerfinance.gov/data-research/research-reports/a-brief-note-on-general-lending-patterns-small-to-medium-size-closed-end-hmda-reporters/, https://www.reginfo.gov/public/do/eAgendaMain, https://www.gao.gov/assets/700/696200.pdf, http://files.consumerfinance.gov/f/201407_cfpb_report_hmda_sbrefa.pdf, Universal Loan Identifier (ULI) In the 2015 HMDA Final Rule, the Bureau explored whether covered entities passed through increased compliance costs to consumers and found the impact to be negligible. B generally prohibits a creditor from collecting information on an applicants race, color, religion, national origin, or sex. The quarterly reporting requirements for certain larger-volume institutions took effect on January 1, 2020. Mortgages, after being unlinked from any personally identifiable information or characteristics that could be traced back to any borrower, are followed in the NMDB database until they terminate through prepayment (including refinancing), foreclosure, or maturity. The Home Mortgage Disclosure Act Rule, 1. Regulation C no longer requires reporting of home improvement loans that are not secured by a dwelling ( Number of Units HMDA Prior to the 2015 HMDA Final Rule taking effect, in the 2017 HMDA Final Rule the Bureau increased temporarily the open-end coverage threshold from 100 to 500 open-end lines of credit for calendar years 2018 and 2019. Show Less. developer tools pages. HMDA Examiner Transaction Testing Guidelines - FDIC 35. C. Modifications to Disclosure and Reporting Requirements The final rule retains the current requirement that financial institutions submit their HMDA data to the appropriate Federal agency by March 1 following the calendar year for which the data are collected. 8. To register your financial institution on the HMDA Filing Platform you will need to provide your institution name, Legal Entity Identifier (LEI), tax ID number, email domain In addition, the Bureau is planning on utilizing responses to this request for information as appropriate. 2016 Home Mortgage Disclosure Act Data Filing Information The Home Mortgage Disclosure Act (or HMDA, pronounced HUM-duh) is a United States federal law that requires certain financial institutions to provide mortgage data to the public. By doing this, we created four categories for debt-to-income ratio. Start Printed Page 66221 Rate Spread The Plaintiffs argue that WebBeginning on January 1, 2022, a financial institution originating 200 or more open-end lines of credit must collect, record, and report HMDA data for open-end lines of credit. This summary provides information about the data on 2022 mortgage lending transactions at 4,460 U.S. financial institutions reported under the Home Mortgage Disclosure Act (HMDA). 31. Similarly, pursuant to regulations transferred from the Office of Thrift Supervision, certain financial institutions supervised by the Federal Deposit Insurance Corporation (FDIC) are required to report reasons for denial on their HMDA loan/application registers. Certain smaller-volume financial institutions are not required to report all of these data, pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). 5. Email: 2021-HMDA-RFI@cfpb.gov. Home Mortgage Disclosure (Regulation C) Data Points and Coverage, 84 FR 20049 (May 8, 2019). https://www.consumerfinance.gov/data-research/research-reports/a-brief-note-on-general-lending-patterns-small-to-medium-size-closed-end-hmda-reporters/. As previously stated, for purposes of this RFI and assessment (except as otherwise noted), the Bureau refers to the 2015 HMDA Final Rule and the subsequent HMDA rules issued in 2017, 2018, 2019, and 2020, collectively as the HMDA Rule.[49]. ; (7) Data and other factual information about the HMDA Rule's effectiveness in meeting the purposes and objectives of title X of the Dodd-Frank Act (section 1021), which are listed in part IV above; a. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. banks) and non-depository (e.g. This information is not part of the official Federal Register document. 3. are the fourth year of data that incorporate amendments made to HMDA by the Dodd -Frank Wall Street Reform and Consumer Protection Act of 2010 (DFA). The data as released by the FFIEC include census tract characteristics (minority composition and income). In August 2018, the Bureau issued the 2018 HMDA Rule to implement and clarify the requirements of section 104(a) of the EGRRCPA. First, it shifted public disclosure of HMDA data entirely to the agencies. The Bureau welcomes comments from stakeholders, in particular information and data that would produce a more robust evaluation of the costs and benefits of the HMDA Rule. WebYou can select one or more financial institutions by entering the financial institutions LEI or name. must compile, maintain, and report under HMDA. WebData Publication. This rule also increased temporarily the open-end coverage threshold for calendar years 2018 and 2019. As discussed in part III.A.4 below, the Bureau explained in the 2015 HMDA Final Rule that it interpreted HMDA, as amended by the Dodd-Frank Act, to call for the use of a balancing test to determine whether and how HMDA data should be modified prior to its disclosure to the public; the Bureau applied that balancing test in final policy guidance issued in December 2018 that described the loan-level HMDA data the Bureau intended to make available to the public. The Bureau is interested in any information about activities and outcomes including the ones listed below and is interested in understanding how these activities and outcomes relate to each other: (1) Industry outcomes that the HMDA Rule may have affected, including the number and types of reporters, the number of loans, and the dollar amounts for reported open-end lines of credit and closed-end mortgage loans; (2) The activities undertaken by financial institutions to comply with the HMDA Rule's criteria, as well as the adoption of loan-volume coverage thresholds, adoption of new and revised data points, and revisions to transactional coverage, including mandatory reporting of open-end lines of credit and the adoption of a dwelling-secured standard; (3) Overall benefits and other outcomes that the HMDA Rule sought to affect, including whether the HMDA Rule has brought greater transparency to the mortgage market, has helped determine whether financial institutions are serving the housing needs of their communities, has assisted public officials in distributing public-sector investment so as to attract private investment to areas where it is needed, assisted in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes, and addressed gaps in the HMDA data regarding certain segments of the market; (4) An evaluation of the benefits and costs of the new and revised data points, and the benefits and costs of new data reported under the revised coverage thresholds; and. HMDA is a data collection, reporting, and disclosure statute enacted in 1975. BILLING CODE: 4810AMP BUREAU OF CONSUMER [29], Additionally, the 2015 HMDA Final Rule added the following additional data points pursuant to the Bureau's discretionary authority under HMDA section 304(b)(5) and (6): Reasons for denial, which were optionally reported under the Board's rule but became mandatory in the HMDA Rule; the total origination charges associated with the loan (origination charges); the total points paid to the lender to reduce the interest rate of the loan (discount points); the amount of lender credits; the interest rate applicable at closing or account opening; the debt-to-income ratio; the ratio of the total amount of debt secured by the property to the value of the property (combined loan-to-value ratio); for transactions involving manufactured homes, whether the loan or application is or would have been secured by a manufactured home and land or by a manufactured home and not land (manufactured home secured property type); the land property interest for loans or applications related to manufactured housing (manufactured home land property interest); the number of individual dwellings units that are income-restricted pursuant to Federal, State, or local affordable housing programs (multifamily affordable units); information related to the automated underwriting system used in evaluating an application and the result generated by the automated underwriting system; whether the loan is a reverse mortgage; whether the loan is an open-end line of credit; and whether the loan is primarily for a business or commercial purpose. WebIf a financial institutions HMDA data are collected through multiple data collection and reporting systems, examiners may test a single sample from the financial institutions The Bureau is interested in information and data on how HMDA data are used by various stakeholders to serve the HMDA's goals and purposes, including extending access to credit, fair lending enforcement, and distributing public-sector investment so as to attract private sector investment. Comments relating to the usability of the public HMDA data, potential challenges of the current format of the public HMDA data, and recommendations for additional reporting by the Bureau that would be helpful in informing the use of the public HMDA data by communities, public officials, or other stakeholders; and. JUN 29, 2023. These can be useful 24. Of course, as with any rule, there are exceptions. covered by Regulation C Is the institution a for-profit mortgage-lending institution (other than a bank, savings establishing the XML-based Federal Register as an ACFR-sanctioned Instead, they were required only to provide a notice advising members of the public seeking their data that the data may be obtained on the Bureau's website. Explore guides to help you plan for big financial goals, https://ffiec.cfpb.gov/data-publication/modified-lar. Webaccuracy of the HMDA data that financial institutions record and report. 4. and other Agencies use HMDA data in conducting Community Reinvestment Act examinations. Home Mortgage Disclosure Act A healthy debt ratio: 35 percent or less. Examiners will use the guidelines to assess the accuracy of data that institutions collect and report under the Home Mortgage Disclosure Act (HMDA). 84 FR 57946 (Oct. 29, 2019). The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board's Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB). Reg. WebAn institution is required to comply with Regulation C only if it is a financial institution as that term is defined in Regulation C. The definition of financial institution includes both depository financial institutions and nondepository financial institutions, as those terms are separately defined in Regulation C. 12 CFR 1003.2(g). Mortgage In light of these amendments, the Board subsequently recognized a third HMDA purpose of identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes, which now appears with HMDA's other purposes in Regulation C.[46]. The Bureau issued another final rule in 2017 (2017 HMDA Final Rule) amending certain requirements adopted in the 2015 HMDA Final Rule. 1. 847, 857 (1996) as amended by Public Law 110-28, and Public Law 111-203, section 1100G (2010). This prototype edition of the The Bureau interpreted these changes to require that public HMDA data be modified when the release of the unmodified data creates risks to applicant and borrower privacy interests that are not justified by the benefits of such release to the public in light of HMDA's statutory purposes. WebThe institution is a depository financial . and services, go to Example: If your institutions LEI is 10BX939C5543TQA1144M, enter 10BX939C5543TQA1144M. 18. See 32. Registration is a two-step process. Start Printed Page 66225 80 FR 66269 (Oct. 28, 2015). Additionally, the Bureau believes that, based on the modifications to reporting requirements adopted in the 2017, 2018, 2019, and the 2020 rules, it may be difficult to isolate the separate effects of each of the 2015 HMDA Final Rule and the related subsequent rules during this assessment. 80 FR 66128, 66256-57 (Oct. 28, 2015). Release Public officials use the information available through HMDA to develop and allocate housing and community development investments, to respond to market failures when necessary, and to monitor whether financial institutions may be engaging in discriminatory lending practices. HMDA section 304(b)(6)(G) requires reporting of, as the Bureau may determine to be appropriate, a universal loan identifier.. industry operations, and the price and availability of mortgages. 4 82 Fed. This repetition of headings to form internal navigation links legal research should verify their results against an official edition of 22. 43088 (Sept. 13, 2017). WebAn institution is required to comply with Regulation C only if it is a financial institution as that term is defined in Regulation C. The definition of financial institution includes both depository financial institutions and nondepository financial institutions, as those terms are separately defined in Regulation C. 12 CFR 1003.2(g). HMDA institutional coverage Protection Bureau daily Federal Register on FederalRegister.gov will remain an unofficial Katherine LoPiccalo, Economist, Research; Patrick Orr, Policy Analyst, Markets; Shaakira Gold-Ramirez, Counsel, or Alexandra Reimelt, Senior Counsel, Regulations; Division of Research, Markets, and Regulations at 202-435-7700. [1] Summary of 2022 Data on Mortgage Lending | Consumer 5512(d). CFPB_Accessibility@cfpb.gov. Effective January 1, 2022, the 2020 HMDA Final Rule sets the open-end coverage threshold at 200 open-end lines of credit, meaning that financial institutions originating at least 200 open-end lines of credit in each of the two preceding calendar years must report such data.
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