In April 2020, under then-director of the Consumer Financial Protection Bureau (CFPB) Kathy Kraninger, the CFPB issued a final rule increasing the HMDA reporting threshold for closed-end mortgage loans from 25 covered loans originated in each of the prior two years to 100 covered loans originated in each of the prior two years.
In September 2022, the DC federal district court issued a ruling which vacated the 2020 rule change, forcing the CFPB to reinstate the lower reporting requirement threshold. In a recent blog post, the bureau has provided some information on how it will handle the change in requirements for reporting years 2020, 2021, and 2022.
Specifically, it noted that this reversion to the original 2015 HMDA threshold rule would require changes in practice and procedure for many institutions which may take a significant amount of time to complete. For that reason, the CFPB stated that it does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2020, 2021, or 2022 for institutions subject to the CFPB’s enforcement or supervisory jurisdiction that meet Regulation C’s other coverage requirements and originated at least 25, but fewer than 100, closed-end mortgage loans in either or both of the two preceding calendar years.