MBA, Trade Groups Urge CFPB to Raise HMDA Reporting Threshold
The Mortgage Bankers Association and a half-dozen other industry trade groups urged the Consumer Financial Protection Bureau to increase the threshold for reporting Home Mortgage Disclosure Act data on closed-end mortgage loans.
The CFPB earlier this spring issued Notice of Proposed Rulemaking proposing amendments to Regulation C, which implements HMDA (https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/regulation-c-home-mortgage-disclosure-act/). Specifically, the Notice proposes to increase the threshold for reporting HMDA data about closed-end mortgage loans from 25 loans in each of the two preceding calendar years, to either 50 or 100 loans, for both depository and non-depository institutions.
MBA and the trade groups, representing a broad range of businesses, including banks and other depository institutions of all sizes, life insurance companies, sponsors of commercial mortgage-backed securities and investment funds that make or enter into business- and commercial-purpose loans secured by multifamily properties. The letter expresses support for increasing the transactional coverage thresholds for depository and non-depository institutions to at least 100 closed-end loans, noting such an increase would more appropriately reduce the regulatory burdens on affected institutions without impairing the achievement of HMDA’s purposes.
“We also support increasing the transactional coverage thresholds because doing so would relieve the regulatory burden of HMDA reporting on some multifamily loans,” the letter said. “This would be consistent with our view that business- or commercial-purpose loans made to business entities (rather than to consumers) and secured by multifamily properties should be exempt from HMDA reporting.”
The letter also expressed support that the Bureau is reconsidering HMDA reporting on “business- or commercial-purpose loans made to a non-natural person and secured by a multifamily dwelling,” as part of an Advance Notice of Proposed Rulemaking.
“We applaud the Bureau’s efforts to reconsider the appropriate balance of benefits and regulatory burdens around HMDA reporting, and are glad for the opportunity to participate in that process,” the letter said.
Joining MBA in the letter: the CRE Finance Council; the National Apartment Association; the National Association of Home Builders; the National Multifamily Housing Council; and The Real Estate Roundtable.
