Home Mortgage Disclosure Act (HMDA)
New HMDA Rules with Lower Thresholds for Reporting on Multifamily Loans in Effect on 1/1/2018
Last updated: August 7, 2018
- The Home Mortgage Disclosure Act (HMDA) has long been a reporting requirement for single-family mortgage lenders, but regulatory changes made by the Consumer Financial Protection Bureau (CFPB) clarified that the law also applies to multifamily (MF) lending.
- The CFPB changes also lowered the origination threshold that triggers reporting requirements for nonbanks. The closed-end threshold is now 25 loan originations in either of the previous two years.
- There are a few bipartisan HMDA reform bills making their way through Congress, though the focus generally is on reducing the number of reporting fields (which the CFPB also expanded) for smaller lenders. Under its new leadership, the CFPB has indicated it will reexamine the rule.
- An extremely limited provision was included in the Senate banking reform bill, S. 2155: Economic Growth, Regulatory Relief, and Consumer Protection Act, that provides for reduced reporting and disclosure requirements for insured depository institutions that originate fewer than 500 loans per annum. S. 2155 was signed into law on May 24, 2018.
- The CFPB has opened a request for information on inherited rules, including HMDA (CREFC submitted comments to the rule on June 19, 2018) and the CFPB placed a HMDA-specific proposal on its rulemaking agenda for January 2019. CREFC also submitted comments via a coalition letter with other real estate trade groups.