United States

CFPB issues additional HMDA guidance


On July 19, 2017, the Consumer Financial Protection Bureau (CFPB) issued a 28-page HMDA Loan Scenarios publication, intended to give financial institutions examples and illustrations of HMDA data and reporting. The document provides several factual scenarios in narrative format. It then provides the data mapping information that would be entered on the Loan Application Register (LAR).

This new guidance comes as the January 2018 deadline approaches, for collection of additional HMDA data fields. That data must then be reported to the government in March 2019.

In July, the American Bankers Association (ABA) wrote a letter to the CFPB noting that “The new HMDA rules are inherently complex and very expensive to implement.” Earlier, in June, Senators Mike Rounds and Heidi Heitkamp wrote to the CFPB requesting a one-year delay in the new HMDA requirements. The National Association of Federally-Insured Credit Unions (NAFCU) also backs a delay in implementation.

On July 20, the CFPB’s HMDA final rule temporarily increased the open-end threshold to 500 or more open-end lines of credit for two years. The industry will watch closely as additional CFPB guidance is issued ahead of the Jan. 1, 2019 implementation date.