Removing Barriers Blog

Credit Union Advocacy Leads to Positive HMDA Changes
Posted December 21, 2017 by CUNA Advocacy

The CFPB issued a statement to clarify Home Mortgage Disclosure Act (HMDA) compliance responsibilities taking effect on January 1, 2018.  The agency announced it does not intend to require resubmission of pre-2019 data for non-material issues. CFPB shall not impose non-compliance penalties for non-material errors relating to data collected in 2018, reported in 2019. The agency also intends to utilize the rulemaking process to reconsider changes to the 2015 HMDA rule, including the institutional and transactional coverage test and the rule’s discretionary data points. Today’s action is taken in coordination with the federal banking agencies, including the National Credit Union Administration (NCUA), and similar statements regarding HMDA implementation are expected. 

CUNA, the Leagues and credit unions have been diligent in advocating for regulatory relief regarding HMDA. There have been dozens of meetings with CFPB officials and lawmakers articulating credit union concerns with the final rule’s requirements. CUNA has also sent several letters to the CFPB on this topic, both while it was under the leadership of former Director Richard Cordray and to Interim Director Mick Mulvaney on his first week on the job.

In addition to meeting with the CFPB, CUNA and the leagues have urged Members of Congress to support improvements to the HMDA rule. Several pieces of legislation including the Senate bipartisan regulatory relief bill also address problems with HMDA. CUNA also urged NCUA to support changes to HMDA, and earlier this year NCUA Chairman McWatters sent a letter to the CFPB asking for changes to it specifically for credit unions.

We are pleased to see the CFPB is considering CUNA’s recommendations for common sense regulation, based on a document sent to them in June.  CUNA will continue to engage on these issues with the CFPB.