The American Bankers Association today expressed support for the Home Mortgage Disclosure Adjustments Act (H.R. 2954), which would relieve smaller financial institutions from intrusive and ill-suited data reporting requirements.
The bill — introduced by Rep. Tom Emmer (R-Minn.) — would specifically exempt small banks and credit unions from HMDA reporting obligations if they have originated 1,000 or fewer closed-end mortgages in each of the two preceding calendar years or 2,000 or fewer open-ended lines of credit in each of the two preceding calendar years. It would also repeal the HMDA expansion included in the Dodd-Frank Act and the Consumer Financial Protection Bureau’s implementing rule, which takes effect in January.
“So great is the cost of compliance with these new regulations that many smaller banks may be forced to reconsider their ability to continue to make mortgages and other covered loans,” ABA said. “H.R. 2954 provides needed relief to keep more lending options available in the markets that these banks serve.”