The Consumer Financial Protection Bureau (“CFPB”) has updated respective sections of Regulation C with new Home Mortgage Disclosure Act (“HMDA”) volume reporting thresholds. The 2015 Final Rule required that lenders originating 25 closed-end mortgage loans per year for the previous two years would be subject to reporting under HMDA. In the 2020 Final Rule, the Bureau attempted to raise this threshold to 100 closed-end mortgages per year in each of the two preceding years. This increase in the reporting threshold was challenged in court and subsequently, the United States District Court for the District of Columbia issued an order vacating the 2020 HMDA Final Rule. Therefore, the reporting threshold is now set at the 25 loans per year that was in the 2015 Final Rule instead of the 100 loans per year in the 2020 HMDA Final Rule.
In a recent blog post, the CFPB acknowledged that institutions affected by this change would need time to adjust to the change and become compliant with the lowered threshold. The Bureau stated that it did 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 affected by this change (i.e., initiated more than 25 closed-end mortgage loans but less than 100 in either or both of the preceding two years).