CFPB Announces HMDA, TILA, and Civil Penalty Annual Adjustments

The CFPB recently announced three annual adjustments.  First, the CFPB adjusted the asset-size exemption threshold for banks, savings associations, and credit unions under Regulation C, which implements HMDA.  The exemption threshold increased from $50 million to $54 million, meaning that banks, savings associations, and credit unions with assets of $54 million or less as of December 31, 2022, will be exempt from collecting data in 2023.

Second, the CFPB adjusted the threshold under TILA’s implementing regulation, Regulation Z, for the exemption to the requirement for certain creditors to establish an escrow account for a higher-priced mortgage loan.  The exemption threshold increased from $2.336 billion to $2.537 billion, meaning that creditors with assets, together with the assets of their affiliates that regularly extended first-lien covered transactions, of less than $2.537 billion as of December 31, 2022, are exempt from establishing escrow accounts for higher-priced mortgage loans in 2023, assuming that the other requirements of Regulation Z are also met, and also are exempt from the escrow-accounts requirement for higher-priced mortgage loans for any loan consummated in 2024 with an application received before April 1, 2024.

Finally, the CFPB adjusted the maximum amount of each civil penalty within the CFPB’s jurisdiction that is assessed after January 15, 2023, by applying a new “cost of living adjustment” multiplier of 1.07745.  As a result, for example, the new tier 1 penalty under the Consumer Financial Protection Act is $6,813 for each day during which the violation continues, the new tier 2 penalty is $34,065, and the new tier 3 penalty is $1,362,567.