In September, a U.S. District Court vacated the 2020 Home Mortgage Disclosure Act final rule establishing loan volume reporting thresholds for closed-end mortgage loans. The effect of the decision is to revert the threshold for data reporting on closed-end mortgages to 25 loans in each of the two preceding calendar years, rather than the 100-loan threshold set by the 2020 final rule.
In response to the court’s remand of this matter back to the agency, the bureau issued a blog post today recognizing that financial institutions may need time to implement or adjust policies, procedures, systems and operations to come into compliance with their reporting obligations and that the agency does not view action regarding institutions’ HMDA data as a current priority.
“CFPB does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021 or 2020 for institutions subject to the CFPB’s enforcement or supervisory jurisdiction that meet Regulation C’s other coverage requirements and originated at least 25 closed-end mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years,” according to the blog post. The blog post does not, however, set forth any expectations for prospective loans starting in January 2023. ABA will seek further direction on this matter.
