Yesterday, the CFPB issued a Final Rule that will temporarily amend the reporting threshold for home equity lines of credit (HELOCs), effective in 2018. The Final Rule also made a number of clarifications and other minor corrections/changes.
When the 2018 HMDA rule was finalized back in 2015, it required banks to report HELOCs if they originated at least 100 in each of the two prior calendar years. This new final rule increases that threshold to 500 and it will remain in effect in 2018 & 2019. The CFPB will re-evaluate this change to determine if it will make additional changes to the threshold before 2020.
The additional clarifications/corrections include:
- Further clarifying the terms, “temporary financing” and “automated underwriting system”;
- Creating transition rules for purchased loans; and
- Establishing a safe harbor for reporting census tract information when using a geocoding tool to be provided on the CFPB’s website.
Rest assured we are beginning to tackle these changes and plan to cover them and much more in our upcoming HMDA training. We have a variety of HMDA webinars and live events coming up yet this year so be sure to check them out.