CFPB Proposed Regulation on Home Mortgage Disclosure Act (Regulation C)

· The Consumer Financial Protection Bureau (CFPB) is proposing changes to Regulation C to implement amendments made to the Home Mortgage Disclosure Act (HMDA) by the Dodd-Frank Act and other revisions.

· Among the changes, the tests for determining which institutions are covered under HMDA would be revised.

o Covered entities, including credit unions that trigger Reg C compliance, would be required to report HMDA data if they originate 25 covered loans other than open-end lines of credit and commercial lines of credit, in the previous calendar year.

o Unsecured home improvement loans would no longer have to be reported.

o All closed-end loans, open-end lines of credit and reverse mortgages secured by dwellings would be required to be reported.

· The proposal will require credit unions and other covered entities to report much more information as mandated by the Dodd-Frank Act.

· The new data required by the Dodd-Frank Act include:

o Applicant age;

o Applicant credit score;

o Application channel;

o Postal address and location of subject property;

o Property value;

o Points and fees;

o Introductory period;

o Non-amortizing features;

o Prepayment penalty;

o Universal Loan Identifier;

o Reasons for denial;

o Loan term;

o Occupancy type;

o Lien priority;

o HOEPA status;

o Loan type; and

o Loan amount.

· However, in addition to the data required under the Dodd-Frank Act, the CFPB is proposing to use its discretionary authority to require reporting on additional issues, such as the first draw amount at account opening for HELOCs.

· This requirement alone could be very costly and cumbersome for credit unions to provide, and CUNA has already sent a letter to CFPB Director Richard Cordray urging the agency to exempt credit unions from this requirement.