Efforts Continue to Rein-in CFPB’s HMDA Overreach

CBAI applauds the continued legislative and regulatory efforts to reign-in the Consumer Financial Protection Bureau’s (CFPB) overreach on Home Mortgage Disclosure Act (HMDA) reporting. While the Dodd-Frank Act mandated additional data to be collected and reported, the CFPB used its discretionary authority to materially increase the number of data fields beyond what was required. Those additional data fields are unnecessary and clear regulatory overreach. They also present legitimate consumer privacy concerns and will impose a significant additional regulatory burden on community banks by diverting bankers’ resources towards unnecessary regulatory compliance rather than serving their customers and communities. On the legislative front, Illinois Congressman Randy Hultgren (R-14th) introduced the Home Mortgage Reporting Relief Act (H.R. 4648). This legislation provides a one year safe harbor for financial institutions from having to comply with the data collection and reporting requirements issued under the CFPB amendments to the HMDA. In addition the legislation restricts the CFPB’s ability to make any of the new data publicly available because its release raises a number of privacy concerns. Also on the legislative front, the bi-partisan Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) recently passed the U.S. Senate Banking Committee. This legislation contains an exemption for [community] banks that offer fewer than 500 closed-end mortgage loans and fewer than 500 open-end lines of credit from collecting the new Dodd-Frank Act data fields. On the regulatory front, the CFPB’s new Acting Director, Mick Mulvaney, is delaying for one year the enforcement of the rule amending HMDA that implements the new data fields. In addition, Mulvaney stated that he would revisit the prior decision of the Bureau to go beyond the HMDA reporting requirements that were mandated under the Dodd-Frank Act. CBAI has consistently expressed concern about the increased regulatory burden and privacy threats regarding additional HMDA reporting. Read CBAI’s October, 2014 Comment Letter. Read CBAI’s May, 2017 Comment Letter. Read CBAI’s July, 2017 Comment Letter. These recent legislative and regulatory developments clearly indicate that the voices of community bankers and their associations are being heard by Congress and the new leadership of the CFPB. CBAI will continue to urge lawmakers and regulators to provide meaningful HMDA relief for community banks. December 28, 2017