If your credit union makes residential mortgage loans and meets all four criteria outlined below, you must comply with the Consumer Financial Protection Bureau’s Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).[1]
Regulation C requires you to collect HMDA data associated with mortgage loan applications with action taken in 2019 if:
- Your credit union’s total assets as of December 31, 2018, exceeded $46 million;[2]
- Your credit union had a home or branch office in a Metropolitan Statistical Area on December 31, 2018;
- Your credit union originated at least one home purchase loan (other than temporary financing such as a construction loan) or refinanced a home purchase loan, secured by a first lien on a one-to-four-family dwelling during 2018; and
- Your credit union originated at least 25 closed-end mortgage loans or 500 open-end lines of credit in each of the two preceding calendar years (2017 and 2018).[3]
If your credit union meets all four criteria, you must collect HMDA data during calendar year 2019 and submit the data to the Consumer Financial Protection Bureau no later than March 1, 2020, using the CFPB web-based platform.
If your credit union does not meet all four criteria, you are exempt from filing HMDA data for applications on which you took action in calendar year 2019.
HMDA Data Partial Exemptions
On September 10, 2018, the Office of Consumer Financial Protection issued an update to provide information regarding the changes made by section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Economic Growth Act) to HMDA.
The Economic Growth Act amended HMDA by adding partial exemptions from HMDA’s requirements for certain transactions. It provides that a credit union does not need to collect or report certain data with respect to closed-end mortgage loans if it originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years. Similarly, a 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. The table below provides partial exemption examples.
| Credit Union | Loan Type | Originations During Calendar Year 2017 | Originations During Calendar Year 2018 | Partial Exemption In 2019 |
|---|---|---|---|---|
| A | Closed-end mortgage loans | 650 | 700 | Neither |
| A | Open-end lines of credit | 550 | 575 | Neither |
| B | Closed-end mortgage loans | 495 | 499 | Only closed-end mortgage loans |
| B | Open-end lines of credit | 485 | 505 | Only closed-end mortgage loans |
| C | Closed-end mortgage loans | 480 | 525 | Only open-end lines of credit |
| C | Open-end lines of credit | 475 | 490 | Only open-end lines of credit |
| D | Closed-end mortgage loans | 425 | 450 | Both closed-end mortgage loans and open-end lines of credit |
| D | Open-end lines of credit | 375 | 400 | Both closed-end mortgage loans and open-end lines of credit |
The Consumer Financial Protection Bureau’s August 31, 2018, interpretive and procedural rule clarifies the Economic Growth Act’s changes and specifies the data points that do not need to be collected and reported if a transaction qualifies for a partial exemption, as well as those data points that must be collected and reported even if a transaction qualifies for a partial exemption. There are 48 data points currently required by HMDA and Regulation C (HMDA). Under the Economic Growth Act, 26 of the 48 data points do not need to be collected and reported if the transaction qualifies for a partial exemption.
Beginning in 2019, a credit union subject to HMDA but eligible for a partial exemption is only required to collect and report the 22 non-exempt data points for the transactions subject to the partial exemption.
For questions about HMDA, see the information available on NCUA’s Fair Lending Compliance Resources webpage, or contact NCUA’s Office of Consumer Financial Protection at (703) 518-1140 or ComplianceMail@ncua.gov.
If you have further questions, please contact your regional NCUA office or state supervisory authority.
Footnotes
[1] 12 U.S.C. 2801-2810; 12 CFR Part 1003.
[2] See https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/bcfp_final-rule_home-mortgage-disclosure-act_annual-adjustment_12-2018.pdf (December 27, 2017) (adjusting asset-size exemption threshold).
[3] On January 1, 2020, the open-end line of credit threshold will adjust to 100. See 82 FR 43088 (September 13, 2017) (Amendment to HMDA Final Rule).