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In a move applauded by credit union trade groups, the CFPB on Thursday proposed changes to the reporting requirements under the Home Mortgage Disclosure Act.
The agency said that the changes, submitted in a notice of proposed rulemaking and another notice soliciting comments before changes are even suggested, are the result of feedback from financial institutions, as well as provisions included in the regulatory overhaul passed during the last Congress.
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In the notice of proposed rulemaking, the CFPB is soliciting comment on a plan that would increase the threshold for closed-end mortgages. For those loans, the plan would permanently increase the threshold from 25 to either 50 or 100 closed-end mortgages.
For open-end lines of credit, the proposal would extend for another two years the current temporary coverage threshold of 500 open-end lines of credit.
Once that temporary coverage expires, the plan would set the open-end threshold at 200 open lines of credit.
The advance notice of proposed rule making seeks comments about the costs and benefits of data points the agency added in 2015.
Credit union trade groups said they were pleased with the plans.
"The HMDA rule has disproportionately burdened credit unions despite no evidence of past wrongful conduct," CUNA President/CEO Jim Nussle said.
He added, however, that CUNA still has concerns about how the CFPB handles open-lines of credit.
"We have called on the CFPB to make the reporting of open-end lines of credit voluntary, as was the case prior to the 2015 HMDA rule, and we will continue to do so," he said.
The proposals would help relieve the regulatory burden for credit unions, said Carrie Hunt, NAFCU's executive vice president of government affairs and general counsel.
"The CFPB's proposed HMDA changes will help reverse the tide of burdensome regulations, which have impacted small-community lenders, including credit unions," she said.
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