CFPB Addresses Court Order Vacating 2020 HMDA Rule Reporting Threshold

The CFPB recently stated its intent not to initiate enforcement actions or cite HMDA violations against institutions that originated at least 25 and fewer than 100 closed end loans, for reporting failures in HMDA data from 2022, 2021, and 2020, as a result of a recent court order that has the effect of requiring those entities to report HMDA data.  In September, the U.S. District Court of the District of Columbia vacated certain aspects of the CFPB’s 2020 Home Mortgage Disclosure Act (HMDA) Final Rule.  The now-vacated threshold in the 2020 HMDA Final Rule had required that any institution making 100 or more closed-end mortgage loans in either or both of the two preceding years needed to report HMDA data.  The court’s order means that the 2015 HMDA Final Rule is now the operative rule with respect to that specific issue.  Under that rule, the threshold is lower – any institution making 25 closed-end mortgage loans or more in each of the two preceding years is required to report HMDA data. 

Due to the court’s order, any institution making at least 25 loans in each of the two preceding years but fewer than 100 closed-end mortgages in either or both of the two preceding years now would be in noncompliance with the rule if it had not reported the required data.  However, the CFPB recognized that affected institutions will not be able to comply with the new reporting requirements immediately and has therefore announced some flexibility with respect to supervision and enforcement on that issue.