More HMDA Guidance Issued; Student Lending Requirements Take Effect

October 11, 2019 at 9:42 am Leave a comment

It’s getting more confusing keeping track of proposed amendments to HMDA than it is to keep track of the developments in the Trump impeachment inquiry. That being said, after 45 minutes, albeit with no coffee, I think I have it straight.

Yesterday, the CFPB finalized a regulation extending a partial exemption from HMDA reporting requirements for institutions that do not meet certain mortgage thresholds. Specifically, for open-end lines of credit, the rule extends for another two years, until January 1, 2022, the current temporary coverage threshold of 500 open-end lines of credit. For data collection years 2020 and 2021, financial institutions that originated fewer than 500 open-end lines of credit in either of the two preceding calendar years will not need to collect and report data with respect to open-end lines of credit.

In addition to this announcement, there are pending regulatory proposals for which comment is due by Tuesday, or forever hold your piece. One proposed rule would also extend to January 1, 2022, the current temporary threshold of 500 open-end lines of credit for open-end institutional and transactional coverage. Once that temporary extension expires, the proposed rule would set the open-end threshold permanently at 200 open-end lines of credit in each of the preceding two calendar years. The other is an Advanced Notice of Proposed Rulemaking. This will likely be the more significant of the two going forward. In the Dodd-Frank Act, Congress mandated that HMDA-reporting institutions collect several additional data points, and gave the CFPB the discretion to add other data field reporting requirements that it deemed to be appropriate. The Bureau took up this task with gusto. The ANPR is likely to be the first step by the Kraninger-led Bureau to scale back the reporting requirements imposed by King Cordray.

DFS Creates Student Loan Advisory Task Force

To mark the effective date of a new law imposing licensing and servicing standards on student loan providers, DFS Superintendent Linda Lacewell announced the creation of a student advisory board to advise the Bureau on consumer protection issues related to students. Remember that in addition to establishing baseline servicing requirements on student loan providers, the new law also imposes licensing requirements, but credit unions and banks are exempt from these regulations. Credit unions should notify the Department of their exempt status by email at

How Low Should Mortgage Rates Go?

Finally, here is a great article in today’s Wall Street Journal suggesting that mortgage rates should be even lower than they are based on traditional indicators, such as 10-year treasury notes, the fact that lenders haven’t cut rates more aggressively underscores how big an appetite there is among consumers to refinance their existing mortgages.

On that note, enjoy your weekend. If you’re like me, you’re already happy because you know you don’t have to waste your Sunday watching the Giants lose to the Patriots. You already wasted Thursday night. By the way, we now know how bad the Patriots can play and still easily defeat the Giants.

Entry filed under: Compliance, Mortgage Lending, New York State, Regulatory. Tags: , , , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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