WASHINGTON, DC (October 15, 2015) — National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alicia Nealon expressed concern in response to the Consumer Financial Protection Bureau’s final changes to reporting requirements under the Home Mortgage Disclosure Act (HMDA) for mortgage lenders.
“While NAFCU and our members support HMDA requirements that further the goal of ensuring fair lending and anti-discriminatory practices, we are concerned that some of the additional reporting requirements will not achieve these goals and may only serve to impose significant additional compliance and reporting burdens on responsible lenders like credit unions who work to meet their members’ needs with safe, sound and fair products,” said Nealon. “As the CFPB and Congress have repeatedly recognized, credit unions did not engage in the type of mortgage-related practices that the Bureau is seeking to identify through an expanded HMDA dataset. Moreover, mandating home equity lines of credit reporting will exacerbate compliance costs and burdens on credit unions since they will have to make costly modifications to their systems in order to collect data on these newly covered transactions ”
Under the rule, depository and non-depository institutions meeting all other criteria under Regulation C, and which had originated 25 closed-end mortgage loans or at least 100 open-end lines of credit in each of the two preceding calendar years, will be required to report HMDA data.
The rule makes significant changes to the types of loans that are subject to HMDA reporting under Regulation C. It expands the scope of reportable transactions to include most closed-end loans, open-end lines of credit and reverse mortgages secured by dwellings. Under this expansion, reporting will be required on all home equity lines of credit (HELOCs).
In other provisions, the final rule requires reporting new data points about applicants and borrowers, property used to secure loans, loan features and unique identifiers.
The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. www.nafcu.org.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
