Removing Barriers Blog

HMDA HELOC Final Rule Published
Posted September 13, 2017 by CUNA Advocacy

Today, the CFPB’s final rule that amends Regulation C regarding HELOCs was published in the Federal Register. The rule, which the Bureau issued late last month, temporarily increases the threshold for collecting and reporting HELOC data under HMDA. 

Under the Regulation C rules that are scheduled to take effect in January 2018, credit unions and other financial institutions would have been required to report HELOCs if they made 100 such loans in each of the last two years. The final rule increases that threshold to 500 loans through 2018 and 2019. Over these next two years, the Bureau will reconsider whether to adjust the threshold amount and/or duration of the temporary increase.  

CUNA appreciates the Bureau’s effort to provide flexibility for credit unions making a relatively low number of HELOCs. As a result of CUNA’s advocacy efforts, two-thirds of all credit unions that would otherwise have been subject to the HMDA HELOC reporting requirements are spared the unnecessary financial and personnel expenses associated with reporting such data. The increased reporting threshold relieves roughly 90% of covered credit unions from reporting HMDA HELOC data. 

While we believe the final rule is a step in the right direction, as detailed in our comment letter to the CFPB, we believe a complete exemption from the HELOC reporting requirement would be more appropriate for credit unions. Particularly, given there has been no evidence of wrongful conduct and credit union HELOC data would ultimately be inconclusive because of credit unions’ field of membership requirements. In addition, we believe an outright exemption is appropriate since the increased reporting threshold is for just two years. Compliance challenges with reporting such data will undoubtedly continue to exist beyond this time period.