The Consumer Financial Protection Bureau (CFPB) issued a final rule adjusting the annual exemption threshold for requirements of the CFPB’s Home Mortgage Disclosure Act (HMDA) requirements under Regulation C.
The bureau increased the threshold to $58 million from $56 million the year prior, based on the 2.9 percent increase in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period ending in November 2024.
This adjustment means banks, savings associations, and credit unions with assets of $58 million or less as of Dec. 31, are exempt from collecting data in 2025.
This exemption threshold is significant for covered institutions. It can lead to compliance cost savings for those that fall under the threshold for HMDA reporting, which involves gathering and submitting detailed information on mortgage lending activities and demographic information about borrowers. Conversely, institutions with assets above the threshold must comply with HMDA requirements, which aim to provide transparency in mortgage lending and help identify discriminatory lending practices but also come with greater expenses.
The CFPB is required to update the exemption threshold annually and has done so every year since 2012.