CFPB Finalizes Proposed Amendments to HMDA Final Rule

The CFPB recently finalized proposed amendments to its October 2015 HMDA Final Rule that make technical corrections, clarify certain previously adopted requirements, and temporarily increase the threshold for collecting and reporting data with respect to open-end lines of credit for a period of two years.

The final rule implements two proposed rules that the CFPB published in April and July of this year.  Among other things, the amendments, which were finalized largely as proposed, establish transition rules for reporting certain data points for purchased loans, clarify the definitions of certain key terms (such as “multifamily dwelling” and “automated underwriting system”), modify the instructions for collecting and reporting an applicant’s race and ethnicity information, and temporarily increase the reporting threshold with respect to open-end lines of credit from 100 to 500 for the 2018 and 2019 calendar years.  Under the temporary increase, financial institutions originating fewer than 500 open-end lines of credit in either of the preceding two years will not be required to begin collecting such data until at least January 1, 2020.

Most of the amendments under the final rule will take effect on January 1, 2018, with certain other changes becoming effective on January 1, 2020.  The text of the final rule is available here.