WASHINGTON – The Consumer Financial Protection Bureau last week issued a new rule to temporarily change reporting requirements for banks and credit unions that issue home-equity lines of credit.
The federal agency also provided guidance on what information financial institutions are required to collect and report related to mortgage lending.
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The new rules amend the Home Mortgage Disclosure Act rule, which requires financial institutions to report certain information related to home loans.
“The Home Mortgage Disclosure Act is a vital source of information on the health and fairness of the mortgage market,” Richard Cordray, CFPB director, said in a statement. “[These] amendments show that the Consumer Bureau is committed to ensuring that financial institutions are able to comply with the rule, and to promoting transparency across the largest consumer financial market in the world.”
The first amendment, scheduled to take effect in January, would increase the two-year threshold at which financial institutions would need to report home-equity lines of credit, in accordance with HMDA, to 500 loans from 100 loans. The new rule would apply through calendar years 2018 and 2019, during which time the agency will determine whether the rule should change for the two-year period beginning Jan. 1, 2020.
The second amendment makes a series of changes to the HMDA itself, including more clearly defining such terms as “temporary financing” and “automated underwriting system.”
All changes can be viewed HERE.
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or you can follow him on Twitter @Eli_Sherman.
