FDIC Guidance on HMDA’s Loan Volume Reporting Threshold

Recently, the FDIC issued Financial Institution Letter FIL-06-2023 regarding recent changes to the HMDA reporting threshold for closed-end mortgages and the FDIC’s supervisory approach for enforcing such requirements.  In September 2022, the U.S. District Court for the District of Columbia issued an order vacating the CFPB’s 2020 HMDA Final Rule, which set the threshold for reporting HMDA data at entities originating 100 closed-end loans in each of the two preceding calendar years.  In December 2022, the CFPB issued a statement that indicated the threshold for reporting HMDA data would now be 25 loans in each of the two preceding calendar years (the threshold established by the CFPB’s 2015 HMDA Final Rule). 

The FDIC has advised that it plans to implement a supervisory approach consistent with the CFPB.  This means that the FDIC does not intend to pursue enforcement actions or cite HMDA violations for failure to report closed loan data information for 2022, 2021, or 2020, if the entity: (1) meets the other Regulation C coverage requirements; and (2) originated at least 25 closed-end mortgage loans in the precedent two years, but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years.

WBK has previously written about the CFPB’s response to the court order vacating the 2020 HMDA Rule, here.