Removing Barriers Blog

CUNA Writes Letter in Support of Hultgren HMDA Bill (HR 4993)
Posted April 21, 2016 by CUNA Advocacy

We have written a letter in support of H.R. 4993, the “Homeowner Information Privacy Protection Act” (HIPPA), which was introduced by Representative Randy Hultgren (R-Ill.) 

The CFPB recently finalized amendments to Regulation C (HDMA) that would significantly increase the amount of data that credit unions are required to report. Hultgren’s bill would delay the implementation of this rule until the Government Accountability Office (GAO) has completed a study on the impact of these increased data points, and ensured that consumer data remains secure and not unnecessarily disclosed.   

We believe it is important to do the study before the rule is implemented, to identify and reduce the risk of fraud or identity theft. Furthermore, assessing the impact of increased data reporting will ensure that credit unions, which did not cause the financial crisis, are not overly burdened with unneeded data reporting. 

The final rule requires credit unions that have originated 25 or more closed-end mortgage loans or 100 or more open-end loans in the prior year to report dozens of new data points, in addition to the 17 that are required under the Dodd-Frank statute. 

When implemented, the final CFPB rule will impose significant burden on credit unions beyond what Congress envisioned when enacting the Dodd-Frank Act.  Credit unions will undertake significant expense to bring their systems into compliance with a rule that does very little, if anything, to provide credit union members with additional protection.  Further, the rule will not significantly enhance the ability of the CFPB to oversee the industry.  Instead, it will undoubtedly add to the compliance costs credit unions must pay, a cost that rose to $7.2 billion in 2014.   

We hope this study will result in reduced burden on credit unions and enhanced protection of citizens' personal identifying information, and will follow this bill closely as it moves forward.