Proposed Rule2021-25330
Request for Information Regarding the HMDA Rule Assessment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 22, 2021
Issuing agencies
Consumer Financial Protection Bureau
Abstract
The Bureau of Consumer Financial Protection (Bureau) is conducting an assessment of the 2015 Home Mortgage Disclosure Act (HMDA) Rule and related amendments in accordance with section 1022(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd- Frank Act). The Bureau is requesting public comment on its plans for the assessment as well as certain recommendations and information that may be useful in conducting the planned assessment.
Full Text
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[Federal Register Volume 86, Number 222 (Monday, November 22, 2021)]
[Proposed Rules]
[Pages 66220-66229]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25330]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 86, No. 222 / Monday, November 22, 2021 /
Proposed Rules
[[Page 66220]]
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1003
[Docket No. CFPB-2021-0018]
Request for Information Regarding the HMDA Rule Assessment
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notification of assessment; request for public comment.
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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
conducting an assessment of the 2015 Home Mortgage Disclosure Act
(HMDA) Rule and related amendments in accordance with section 1022(d)
of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act). The Bureau is requesting public comment on its plans for
the assessment as well as certain recommendations and information that
may be useful in conducting the planned assessment.
DATES: Comments must be received on or before January 21, 2022.
ADDRESSES: You may submit comments, identified by Docket No. CFPB-2021-
0018, by any of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#85b7b5b7b4a8cdc8c1c4a8d7c3ccc5e6e3f5e7abe2eaf3"><span class="__cf_email__" data-cfemail="a99b999b9884e1e4ede884fbefe0e9cacfd9cb87cec6df">[email protected]</span></a>.
<bullet> Mail/Hand Delivery/Courier: Comment Intake--HMDA
Assessment, Bureau of Consumer Financial Protection, 1700 G Street NW,
Washington, DC 20552. Please note that due to circumstances associated
with the COVID-19 pandemic, the Bureau discourages the submission of
comments by hand delivery, mail, or courier.
Instructions: The Bureau encourages the early submission of
comments. All submissions should include document title and docket
number. Because paper mail in the Washington, DC, area and at the
Bureau is subject to delay, commenters are encouraged to submit
comments electronically. In general, all comments received will be
posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>. In addition, once
the Bureau's headquarters reopens, comments will be available for
public inspection and copying at 1700 G Street NW, Washington, DC
20552, on official business days between the hours of 10 a.m. and 5
p.m. Eastern Time. At that time, you can make an appointment to inspect
the documents by telephoning 202-435-7275.
All comments, including attachments and other supporting materials,
will become part of the public record and subject to public disclosure.
Proprietary information or sensitive personal information, such as
account numbers or Social Security numbers, or names of other
individuals, should not be included. Comments will not be edited to
remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: Katherine LoPiccalo, Economist,
Research; Patrick Orr, Policy Analyst, Markets; Shaakira Gold-Ramirez,
Counsel, or Alexandra Reimelt, Senior Counsel, Regulations; Division of
Research, Markets, and Regulations at 202-435-7700. If you require this
document in an alternative electronic format, please contact
<a href="/cdn-cgi/l/email-protection#11525741534e5072727462627873787d78656851727761733f767e67"><span class="__cf_email__" data-cfemail="03404553415c4260606670706a616a6f6a777a43606573612d646c75">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
For over 45 years, the Home Mortgage Disclosure Act (HMDA) has
provided the public with information about how financial institutions
are serving the housing needs of their communities. Public officials
use the information available through HMDA to develop and allocate
housing and community development investments, to respond to market
failures when necessary, and to monitor whether financial institutions
may be engaging in discriminatory lending practices. The data are used
by the mortgage industry to inform business practices, and by local
communities to ensure that lenders are serving the needs of individual
neighborhoods. To maintain the data's usefulness in serving its goals,
HMDA and its implementing Regulation C have been updated and expanded
over time in response to the changing needs of homeowners and the
evolution of the mortgage market.
The Bureau is conducting a voluntary assessment of the final rule
on HMDA the Bureau issued in October 2015 (2015 HMDA Final Rule) \1\
and related amendments (collectively, the HMDA Rule) in order to
evaluate the effectiveness of the HMDA Rule in meeting its stated goals
and the purposes and objectives of the Dodd-Frank Act. Section 1022(d)
of the Dodd-Frank Act requires the Bureau to conduct an assessment of
each significant rule or order adopted by the Bureau under Federal
consumer financial law.\2\ While the Bureau determined that the HMDA
Rule is not a significant rule for purposes of section 1022(d), the
Bureau considers the HMDA Rule to be of sufficient importance to
support the Bureau conducting a voluntary assessment that complies with
the requirements of a Dodd-Frank Act assessment. Pursuant to those
requirements, the Bureau must publish a report of the assessment not
later than five years after the effective date of such rule or order.
The assessment must address, among other relevant factors, the rule or
order's effectiveness in meeting the purposes and objectives of title X
of the Dodd-Frank Act and the specific goals stated by the Bureau. The
assessment also must reflect available evidence and any data that the
Bureau reasonably may collect. Before publishing a report of its
assessment, the Bureau must invite public comment on recommendations
for modifying, expanding, or eliminating the significant rule or
order.\3\
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\1\ Home Mortgage Disclosure (Regulation C); 80 FR 6612766128
(Oct. 28, 2015).
\2\ 12 U.S.C. 5512(d).
\3\ 12 U.S.C. 5512(d).
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To assess the effectiveness of the HMDA Rule, the Bureau intends to
focus its evaluation on the following primary topic areas: (1)
Institutional coverage and transactional coverage; (2) data points; (3)
benefits of the new data and disclosure requirements; \4\ and (4)
operational and compliance costs. The Bureau recognizes that it faces
challenges in its assessment, as it may be difficult to quantify
certain components such as the benefits of the
[[Page 66221]]
HMDA Rule. The Bureau also recognizes that, across stakeholders, there
is interest and disagreement over certain aspects of the HMDA Rule,
including thresholds. The Bureau has revised the institutional and
transactional coverage thresholds that determine whether financial
institutions are required to collect, record, and report any HMDA data
on closed-end mortgage loans or open-end lines of credit in recent
years. The Bureau also recently published a study on thresholds that
analyzed differences in lending patterns for lenders below and above
the 100-loan closed-end threshold set by the 2020 HMDA Final Rule.\5\
The Bureau is inviting public comment on these and other relevant
issues as part of its HMDA assessment. The Bureau views the assessment
as an opportunity to evaluate whether prior HMDA rulemakings have
improved upon the data collected, reduced unnecessary burden on
financial institutions, and streamlined and modernized the manner in
which financial institutions collect and report HMDA data. The Bureau
welcomes comments from stakeholders, in particular information and data
that would produce a more robust evaluation of the costs and benefits
of the HMDA Rule.
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\4\ The Bureau considers an evaluation of the balancing test
used to determine whether and how HMDA data should be modified prior
to its disclosure to the public to protect applicant and borrower
privacy to be outside the scope of its assessment of the HMDA Rule.
\5\ ``A Brief Note on General Lending Patterns of Small to
Medium Size Closed-end HMDA Reporters,'' HMDA Data Point, June 14,
2021, <a href="https://www.consumerfinance.gov/data-research/research-reports/a-brief-note-on-general-lending-patterns-small-to-medium-size-closed-end-hmda-reporters/">https://www.consumerfinance.gov/data-research/research-reports/a-brief-note-on-general-lending-patterns-small-to-medium-size-closed-end-hmda-reporters/</a>.
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Section 1094 of the Dodd-Frank Act amended HMDA and transferred
HMDA rulemaking authority and other functions from the Board of
Governors of the Federal Reserve System (Board) to the Bureau. In the
2015 HMDA Final Rule, the Bureau implemented the Dodd-Frank Act
amendments to HMDA and made other changes to Regulation C. Most of the
2015 HMDA Final Rule took effect on January 1, 2018.\6\ The Bureau
issued another final rule in 2017 (2017 HMDA Final Rule) amending
certain requirements adopted in the 2015 HMDA Final Rule.\7\ Most of
the 2017 HMDA Final Rule provisions also took effect on January 1,
2018. The Bureau issued an interpretive and procedural rule in 2018
(2018 HMDA Rule) to implement and clarify the requirements of section
104(a) of the Economic Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA), which was enacted in May 2018 and amended
HMDA by adding partial exemptions from certain reporting
requirements.\8\ Additionally, the Bureau issued final rules in 2019
and 2020 (2019 and 2020 HMDA Final Rules, respectively) that amended
certain aspects of Regulation C after most of the 2015 HMDA Final Rule
took effect.\9\
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\6\ 80 FR 66128, 66256-57 (Oct. 28, 2015). The amendments to the
institutional coverage criteria for depository institutions took
effect on January 1, 2017. 12 CFR 1003.2(g)(1)(v)(A). The quarterly
reporting requirements for certain larger-volume institutions took
effect on January 1, 2020. 12 CFR 1003.5(a)(1)(ii).
\7\ Home Mortgage Disclosure (Regulation C); 82 FR 43088 (Sept.
13, 2017).
\8\ Public Law 115-174, 132 stat. 1296 (2018); Partial
Exemptions from the Requirements of the Home Mortgage Disclosure Act
Under the Economic Growth, Regulatory Relief, and Consumer
Protection Act (Regulation C), 83 FR 45325 (Sept. 7, 2018). The 2018
HMDA Rule did not amend the text of Regulation C. The Bureau later
incorporated the interpretations and procedures from the 2018 HMDA
Rule into Regulation C in the 2019 HMDA Final Rule.
\9\ Home Mortgage Disclosure (Regulation C), 84 FR 57946 (Oct.
29, 2019); Home Mortgage Disclosure (Regulation C), 85 FR 28364 (May
12, 2020).
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For purposes of this request for information (RFI) and the
assessment, except as otherwise noted, the Bureau refers to the 2015
HMDA Final Rule and the subsequent HMDA rules issued in 2017, 2018,
2019, and 2020 collectively as ``the HMDA Rule''.\10\ Additionally, the
Bureau believes that, based on the modifications to reporting
requirements adopted in the 2017, 2018, 2019, and the 2020 rules, it
may be difficult to isolate the separate effects of each of the 2015
HMDA Final Rule and the related subsequent rules during this
assessment. The Bureau has determined that considering all of these
rules together will facilitate a more meaningful assessment of the HMDA
Rule. Specifically, the Bureau is incorporating into the assessment all
rules that implicate calendar-year HMDA data beginning with data
collected in 2018 through data collected in 2021.
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\10\ Certain provisions in the 2020 HMDA Final Rule that would
not go into effect until January 2022, such as the increase in the
open-end coverage threshold, are not being considered under this
assessment.
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As discussed in more detail in part III.B, the Bureau has
determined that the HMDA Rule is not a significant rule for purposes of
section 1022(d) and therefore the Bureau is not required to conduct an
assessment under the Dodd-Frank Act. However, the Bureau considers the
HMDA Rule to be of sufficient importance to support the Bureau
conducting a voluntary assessment. In this document, the Bureau is
requesting public comment on the issues identified below regarding the
HMDA Rule as part of the planned voluntary assessment.
II. The Assessment Process
Assessments are for informational purposes only and are not part of
any formal or informal rulemaking proceedings under the Administrative
Procedure Act. The Bureau plans to consider relevant comments,
available data, and any other relevant information as it conducts the
assessment and prepares an assessment report. The Bureau does not,
however, expect that it will respond in the assessment report to each
comment received pursuant to this document. Furthermore, the Bureau
does not anticipate that the assessment report will include specific
proposals by the Bureau to modify any rules, although the findings made
in the assessment may help to inform the Bureau's general understanding
of implementation costs and regulatory benefits for future
rulemakings.\11\ Upon completion of the assessment, the Bureau
anticipates issuing an assessment report not later than January 1,
2023.
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\11\ The Bureau announces its rulemaking plans in semiannual
updates of its rulemaking agenda, which are posted as part of the
Federal Government's Unified Agenda of Regulatory and Deregulatory
Actions. The current Unified Agenda can be found here: <a href="https://www.reginfo.gov/public/do/eAgendaMain">https://www.reginfo.gov/public/do/eAgendaMain</a>.
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III. The Home Mortgage Disclosure Act Rule
Regulation C implements HMDA, 12 U.S.C. 2801 through 2810. Adopted
in 1975, HMDA requires certain depository institutions and for-profit
nondepository institutions to collect, report, and disclose data about
originations and purchases of mortgage loans, as well as mortgage loan
applications that do not result in originations (for example,
applications that are denied or withdrawn). The purposes of HMDA are to
provide the public with loan data that can be used: (i) To help
determine whether financial institutions are serving the housing needs
of their communities; (ii) to assist public officials in distributing
public-sector investment so as to attract private investment to areas
where it is needed; and (iii) to assist in identifying possible
discriminatory lending patterns and enforcing antidiscrimination
statutes.\12\
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\12\ 12 CFR 1003.1.
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In 2010, Congress enacted the Dodd-Frank Act, which amended HMDA
and transferred HMDA rulemaking authority and other functions from the
Board to the Bureau.\13\ Among other changes, the Dodd-Frank Act
expanded the scope of information relating to mortgage applications and
loans that institutions
[[Page 66222]]
must compile, maintain, and report under HMDA. This introduction to
part III provides a high-level overview of each of the rules. The major
provisions of the HMDA Rule are discussed in more detail in part III.A,
below.\14\
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\13\ Public Law 111-203, 124 stat. 1376, 1980, 2035-38, 2097-101
(2010).
\14\ For details explaining the rationale behind each of these
provisions, refer to the preamble discussion in each of the HMDA
rules.
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In the 2015 HMDA Final Rule, the Bureau implemented the Dodd-Frank
Act amendments to HMDA and made other changes to Regulation C. The 2015
HMDA Final Rule modified the types of institutions and transactions
subject to Regulation C, including by adopting new loan volume
thresholds for determining which institutions are covered under
Regulation C and must report HMDA data for their closed-end mortgage
loans and open-end lines of credit (coverage thresholds, collectively).
The 2015 HMDA Final Rule also modified the types of data that
institutions are required to collect and report by adding new data
points to Regulation C and revising certain pre-existing data points.
Additionally, the 2015 HMDA Final Rule revised the processes for
financial institutions to report and disclose the required data and the
determination of which data would be publicly disclosed.\15\
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\15\ 80 FR 66128 (Oct. 28, 2015). As discussed in part III.A.4
below, the Bureau explained in the 2015 HMDA Final Rule that it
interpreted HMDA, as amended by the Dodd-Frank Act, to call for the
use of a balancing test to determine whether and how HMDA data
should be modified prior to its disclosure to the public; the Bureau
applied that balancing test in final policy guidance issued in
December 2018 that described the loan-level HMDA data the Bureau
intended to make available to the public. Disclosure of Loan-Level
HMDA Data, 84 FR 649 (Jan. 31, 2019).
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In August 2017, the Bureau issued the 2017 HMDA Final Rule, which
made technical corrections to, and clarified certain requirements
adopted by, the 2015 HMDA Final Rule. This rule also increased
temporarily the open-end coverage threshold for calendar years 2018 and
2019.
In 2018, Congress enacted the EGRRCPA.\16\ Section 104(a) of the
EGRRCPA amended HMDA section 304(i) by adding partial exemptions from
HMDA's requirements for certain insured depository institutions and
insured credit unions. The EGRRCPA provides that an insured depository
institution or insured credit union does not need to collect or report
certain data with respect to its closed-end mortgage loans if it
originated fewer than 500 closed-end mortgage loans in each of the two
preceding calendar years. Similarly, the EGRRCPA provides that an
insured depository institution or insured credit union does not need to
collect or report certain data with respect to open-end lines of credit
if it originated fewer than 500 open-end lines of credit in each of the
two preceding calendar years. In August 2018, the Bureau issued the
2018 HMDA Rule to implement and clarify the requirements of section
104(a) of the EGRRCPA.\17\
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\16\ Public Law 115-174, 132 stat. 1296 (2018).
\17\ 83 FR 45325 (Sept. 7, 2018).
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In October 2019, the Bureau issued the 2019 HMDA Final Rule, which
extended for two years, until January 1, 2022, the temporary increase
in the open-end coverage threshold adopted by the 2017 HMDA Final Rule.
This rule also incorporated into Regulation C the interpretations and
procedures from the 2018 HMDA Rule and implemented further the
EGRRCPA.\18\
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\18\ 84 FR 57946 (Oct. 29, 2019).
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In April 2020, the Bureau issued the 2020 HMDA Final Rule, which
increased the closed-end coverage threshold effective July 1, 2020, and
the permanent level of the open-end coverage threshold effective
January 1, 2022, upon the expiration of the temporary threshold.\19\
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\19\ 85 FR 28364 (May 12, 2020).
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The major provisions of the HMDA Rule are summarized below.
A. Major Provisions of the HMDA Rule
The HMDA Rule contains four major elements: (1) Institutional
coverage and loan-volume thresholds; (2) transactional coverage; (3)
data points; and (4) disclosure and reporting requirements.
1. Institutional Coverage and Loan-Volume Thresholds
Regulation C requires financial institutions to report HMDA data.
Section 1003.2(g) defines financial institution for purposes of
Regulation C and sets forth Regulation C's institutional coverage
criteria for depository financial institutions and nondepository
financial institutions.\20\ The HMDA Rule amended the Board's pre-
existing institutional coverage criteria that determine which
institutions meet the definition of financial institution and are
required to report HMDA data.
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\20\ 12 CFR 1003.2(g)(1) (definition of depository financial
institution); Sec. 1003.2(g)(2) (definition of nondepository
financial institution).
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The HMDA Rule includes uniform coverage thresholds based on loan
origination volume that determine, in part, whether institutions are
required to collect, record, and report any HMDA data on closed-end
mortgage loans or open-end lines of credit. Under the institutional
coverage criteria set forth in the HMDA Rule, depository institutions
and nondepository institutions are required to report HMDA data if
they: (1) Meet either the closed-end or open-end coverage threshold in
each of the two preceding calendar years, and (2) meet all of the other
applicable criteria for institutional coverage. Financial institutions
that meet only the closed-end coverage threshold are not required to
report data on their open-end lines of credit, and financial
institutions that meet only the open-end coverage threshold are not
required to report data on their closed-end mortgage loans.\21\
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\21\ 80 FR 66128, 66173 (Oct. 28, 2015).
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The Bureau has amended the levels of the coverage thresholds
several times since the enactment of the Dodd-Frank Act. The 2015 HMDA
Final Rule set the closed-end coverage threshold at 25 closed-end
mortgage loans and the open-end coverage threshold at 100 open-end
lines of credit. As a result, an institution that originated at least
25 closed-end mortgage loans or at least 100 open-end lines of credit
in each of the two preceding calendar years, and met all of the other
applicable criteria for institutional coverage, met the definition of
financial institution and was required to report HMDA data.
Prior to the 2015 HMDA Final Rule taking effect, in the 2017 HMDA
Final Rule the Bureau increased temporarily the open-end coverage
threshold from 100 to 500 open-end lines of credit for calendar years
2018 and 2019. In the 2019 HMDA Final Rule, the Bureau extended the
temporary increase in the open-end coverage threshold for two
additional years, until January 1, 2022.\22\ Effective January 1, 2022,
the 2020 HMDA Final Rule sets the open-end coverage threshold at 200
open-end lines of credit, meaning that financial institutions
originating at least 200 open-end lines of credit in each of the two
preceding calendar years must report such data. The 2020 HMDA Final
Rule also increased the closed-end coverage threshold, from 25 to 100
closed-end mortgage loans. Effective July 1, 2020, financial
institutions originating at least 100 closed-end mortgage loans in each
of the two preceding calendar years must report such data.\23\
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\22\ 82 FR 43088 (Sept. 13, 2017); 84 FR 57946 (Oct. 29, 2019).
\23\ 85 FR 28364 (May 12, 2020). On October 9, 2020, the Bureau
corrected several clerical errors in the Supplementary Information
to the 2020 HMDA Final Rule, regarding the estimated cost savings in
annual ongoing costs from various possible closed-end coverage
thresholds.
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[GRAPHIC] [TIFF OMITTED] TP22NO21.003
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[GRAPHIC] [TIFF OMITTED] TP22NO21.004
BILLING CODE 4810-AM-C
For depository institutions, in addition to adopting the new loan-
volume coverage thresholds, the HMDA Rule retained other pre-existing
institutional coverage criteria. The pre-existing criteria require
reporting by depository institutions that: (1) Satisfy an asset-size
threshold; (2) have a branch or home office in a Metropolitan
Statistical Area (MSA) on the preceding December 31; (3) satisfy the
``federally related'' test; and (4) originated at least one first-lien
home purchase loan or refinancing secured by a one- to four-unit
dwelling in the previous calendar year.
For nondepository institutions, the HMDA Rule adopted the new loan-
volume coverage thresholds and removed the pre-existing institutional
coverage tests based on asset-size or loan originations and total loan
amounts. The HMDA Rule retained the criterion that the institution had
a branch or home office in an MSA on the preceding December 31.
2. Transactional Coverage
HMDA requires financial institutions to collect and report
information about ``mortgage loans,'' which HMDA section 303(2) defines
as loans secured by residential real property or home improvement
loans. In the HMDA Rule, the Bureau modified Regulation C's
transactional coverage in several ways.
First, the HMDA Rule requires some financial institutions to report
data on their open-end lines of credit.\24\ Previously, Regulation C
allowed, but did not require, reporting of home-equity lines of credit
and there was no minimum coverage threshold. As discussed in part
III.A.1 above, the HMDA Rule requires financial institutions that meet
the loan-volume coverage threshold for open-end lines of credit in each
of the two preceding calendar years to report data on these
transactions.
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\24\ The 2015 HMDA Final Rule defined open-end line of credit as
an extension of credit that: (1) Is secured by a lien on a dwelling;
and (2) Is an open-end credit plan as defined in Regulation Z, 12
CFR 1026.2(a)(20), but without regard to whether the credit is
consumer credit, as defined in Sec. 1026.2(a)(12), is extended by a
creditor, as defined in Sec. 1026.2(a)(17), or is extended to a
consumer, as defined in Sec. 1026.2(a)(11).
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Additionally, the HMDA Rule moved away from the pre-existing ``loan
purpose'' test and adopted a dwelling-secured standard for all loans or
lines of credit that are for personal, family, or household purposes.
In general, prior to the HMDA Rule, financial institutions were
required to report information about closed-end applications and loans
made for one of three purposes: Home improvement, home purchase, or
refinancing. Under the HMDA Rule, most consumer-purpose extensions of
credit secured by a lien on a dwelling are subject to Regulation C,
including closed-end home-equity loans, home-equity lines of credit,
and reverse mortgages. Regulation C no longer requires reporting of
home improvement loans that are not secured by a dwelling (i.e., home
improvement loans that are unsecured or that are secured by some other
type of collateral).\25\
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\25\ Under pre-existing Regulation C, closed-end home purchase
loans and refinancings were required to be reported if they were
dwelling-secured and closed-end home improvement loans were required
to be reported whether or not they were dwelling-secured.
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The HMDA Rule also requires reporting of applications for, and
originations of, dwelling-secured business- or commercial-purpose
closed-end mortgage loans and open-end lines of credit for home
purchase, refinancing, or home improvement purposes. Prior to the HMDA
Rule, Regulation C covered closed-end, business- or commercial-purpose
loans made to purchase, refinance, or improve a dwelling. Thus, the
HMDA Rule revised coverage of business- or commercial-purpose
transactions by: (1) Adding the dwelling-secured test, and (2)
requiring reporting of dwelling-secured, business- or commercial-
purpose open-end lines of credit for the purpose of home purchase,
refinancing, or home improvement.
3. Data Points
Prior to the enactment of the Dodd-Frank Act, Regulation C required
collection and reporting of 22 data points and allowed for optional
reporting of one data point: The reasons for which an institution
denied an application (reasons for denial). The 2015 HMDA Final Rule
implemented the new data points specified in the Dodd-Frank Act, added
additional data
[[Page 66225]]
points pursuant to the Bureau's discretionary authority under HMDA
section 304(b)(5) and (6), and revised certain pre-existing Regulation
C data points. The 2018 HMDA Rule and 2019 HMDA Final Rule clarified
which of the data points in Regulation C are covered by the EGRRCPA
partial exemptions.\26\
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\26\ In May 2019, the Bureau issued an advance notice of
proposed rulemaking (ANPR) relating to certain data points that the
Bureau added or revised in the 2015 HMDA Final Rule as well as
Regulation C's coverage of certain business- or commercial-purpose
transactions. Home Mortgage Disclosure (Regulation C) Data Points
and Coverage, 84 FR 20049 (May 8, 2019). In June 2021, the Bureau
announced that it was no longer pursuing a proposed rulemaking
following up on this ANPR in light of its other rulemaking
priorities.
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In the 2015 HMDA Final Rule, the Bureau added the following data
points to Regulation C to implement specific provisions added by the
Dodd-Frank Act in HMDA section 304(b)(4), (5)(A) through (C), and
(6)(A) through (I): Universal loan identifier (ULI); \27\ property
address; age of the applicant/borrower; rate spread for all loans; \28\
credit score; total loan costs or total points and fees; prepayment
penalty term; loan term; introductory rate period; non-amortizing
features; property value; application channel; and mortgage loan
originator identifier.\29\
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\27\ Prior to the passage of the Dodd-Frank Act, the Board
required reporting of an identifying number for the loan or
application but did not require that the identifier be universal.
HMDA section 304(b)(6)(G) requires reporting of, ``as the Bureau may
determine to be appropriate, a universal loan identifier.''
\28\ Prior to the passage of the Dodd-Frank Act, the Board
required financial institutions to report rate spread for higher-
priced mortgage loans. 67 FR 7222 (Feb. 15, 2002); 67 FR 43218 (June
27, 2002). HMDA section 304(b)(5)(B) requires reporting of rate
spread for all loans.
\29\ 12 CFR 1003.4(a)(1)(i), (a)(9)(i), (a)(10)(ii), and
(a)(12), (15), (17), (22), (25) through (28), and (33) and (34).
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Additionally, the 2015 HMDA Final Rule added the following
additional data points pursuant to the Bureau's discretionary authority
under HMDA section 304(b)(5) and (6): Reasons for denial, which were
optionally reported under the Board's rule but became mandatory in the
HMDA Rule; the total origination charges associated with the loan
(origination charges); the total points paid to the lender to reduce
the interest rate of the loan (discount points); the amount of lender
credits; the interest rate applicable at closing or account opening;
the debt-to-income ratio; the ratio of the total amount of debt secured
by the property to the value of the property (combined loan-to-value
ratio); for transactions involving manufactured homes, whether the loan
or application is or would have been secured by a manufactured home and
land or by a manufactured home and not land (manufactured home secured
property type); the land property interest for loans or applications
related to manufactured housing (manufactured home land property
interest); the number of individual dwellings units that are income-
restricted pursuant to Federal, State, or local affordable housing
programs (multifamily affordable units); information related to the
automated underwriting system used in evaluating an application and the
result generated by the automated underwriting system; whether the loan
is a reverse mortgage; whether the loan is an open-end line of credit;
and whether the loan is primarily for a business or commercial
purpose.\30\
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\30\ 12 CFR 1003.4(a)(16), (18) through (21), (23) and (24),
(29) and (30), (32), and (35) through (38).
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The 2015 HMDA Final Rule also revised certain pre-existing
Regulation C data points to provide for greater specificity or
additional information in reporting.\31\
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\31\ These data points include the following: The purpose of the
loan or application; occupancy type; ethnicity; race; and legal
entity identifier (LEI).
----------------------------------------------------------------------------------------------------------------
Data points added by 2015 HMDA final Data points added by 2015 HMDA final Data points revised by 2015 HMDA
rule to implement Dodd-Frank Act rule pursuant to discretionary final rule to require additional
requirements authority information
----------------------------------------------------------------------------------------------------------------
<bullet> Universal Loan Identifier <bullet> Reasons for Denial <bullet> Loan Purpose
(ULI) <bullet> Origination Charges <bullet> Occupancy Type
<bullet> Property Address <bullet> Discount Points <bullet> Ethnicity
<bullet> Age (applicant/borrower) <bullet> Lender Credits <bullet> Race
<bullet> Rate Spread <bullet> Interest Rate <bullet> Legal Entity Identifier
<bullet> Credit Score <bullet> Debt-to-Income Ratio
<bullet> Total Loan Costs or Total <bullet> Combined Loan-to-Value
Points and Fees Ratio
<bullet> Prepayment Penalty Term
<bullet> Loan Term <bullet> Manufactured Home Secured
<bullet> Introductory Rate Period Property Type
<bullet> Non-Amortizing Features <bullet> Manufactured Home Land
Property Interest
<bullet> Property Value <bullet> Multifamily Affordable
Units
<bullet> Application Channel <bullet> Automated Underwriting
System
<bullet> Mortgage Loan Originator <bullet> Reverse Mortgage Flag
Identifier
<bullet> Open-End Line of Credit
Flag
<bullet> Business or Commercial
Purpose Flag
----------------------------------------------------------------------------------------------------------------
As discussed above, the EGRRCPA provides certain institutions
partial exemptions from reporting certain data. As amended by the
EGRRCPA, HMDA section 304(i)(1) provides that the requirements of HMDA
section 304(b)(5) and (6) shall not apply with respect to closed-end
mortgage loans of an insured depository institution or insured credit
union if it originated fewer than 500 closed-end mortgage loans in each
of the two preceding calendar years. Additionally, HMDA section
304(i)(2) provides that the requirements of HMDA section 304(b)(5) and
(6) shall not apply with respect to open-end lines of credit of an
insured depository institution or insured credit union if it originated
fewer than 500 open-end lines of credit in each of the two preceding
calendar years. Notwithstanding the partial exemptions under the
EGRRCPA, HMDA section 304(i)(3) provides that an insured depository
institution must comply with HMDA section 304(b)(5) and (6) if it has
received a rating of ``needs to improve record of meeting community
credit needs'' during each of its two most recent examinations or a
rating of ``substantial noncompliance in meeting community credit
needs'' on its most recent examination under section 807(b)(2) of the
Community Reinvestment Act (CRA).\32\
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\32\ 12 U.S.C. 2906(b)(2).
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The 2018 HMDA Rule and the 2019 HMDA Final Rule specify that the
following data points do not need to be collected and reported if a
transaction qualifies for a partial exemption under the EGRRCPA: ULI;
property address; rate spread; credit score; reasons for
[[Page 66226]]
denial; \33\ total loan costs or total points and fees; origination
charges; discount points; the amount of lender credits; the interest
rate applicable at closing or account opening; prepayment penalty term;
the debt-to-income ratio; the combined loan-to-value ratio; loan term;
introductory rate period; non-amortizing features; property value;
manufactured home secured property type; manufactured home land
property interest; multifamily affordable units; application channel;
mortgage loan originator identifier; information related to the
automated underwriting system used in evaluating an application and the
result generated by the automated underwriting system; whether the loan
is a reverse mortgage; whether the loan is an open-end line of credit;
and whether the loan is primarily for a business or commercial purpose.
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\33\ Financial institutions regulated by the Office of the
Comptroller of the Currency (OCC) are required to report reasons for
denial on their HMDA loan/application registers pursuant to 12 CFR
27.3(a)(1)(i) and 128.6. Similarly, pursuant to regulations
transferred from the Office of Thrift Supervision, certain financial
institutions supervised by the Federal Deposit Insurance Corporation
(FDIC) are required to report reasons for denial on their HMDA loan/
application registers. 12 CFR 390.147.
------------------------------------------------------------------------
Data points covered by the EGRRCPA Data points not covered by the
partial exemptions EGRRCPA partial exemptions
------------------------------------------------------------------------
<bullet> Universal Loan Identifie <bullet> Application Date
<bullet> Property Address <bullet> Loan Type
<bullet> Rate Spread <bullet> Loan Purpose
<bullet> Credit Score <bullet> Preapproval
<bullet> Reasons for Denial <bullet> Construction Method
<bullet> Total Loan Costs or Total <bullet> Occupancy Type
Points and Fees
<bullet> Origination Charges <bullet> Loan Amount
<bullet> Discount Points <bullet> Action Taken
<bullet> Lender Credits <bullet> Action Taken Date
<bullet> Interest Rate <bullet> State
<bullet> Prepayment Penalty Term <bullet> County
<bullet> Debt-to-Income Ratio <bullet> Census Tract
<bullet> Combined Loan-to-Value <bullet> Ethnicity
Ratio
<bullet> Loan Term <bullet> Race
<bullet> Introductory Rate Period <bullet> Sex
<bullet> Non-Amortizing Features <bullet> Age (applicant/borrower)
<bullet> Property Value <bullet> Income
<bullet> Manufactured Home Secured <bullet> Type of Purchaser
Property Type <bullet> Home Ownership and Equity
<bullet> Manufactured Home Land Protection Act (HOEPA) Status
Property Interest <bullet> Lien Status
<bullet> Multifamily Affordable <bullet> Number of Units
Units <bullet> Legal Entity Identifier
<bullet> Application Channel
<bullet> Mortgage Loan Originator
Identifier
<bullet> Automated Underwriting
System
<bullet> Reverse Mortgage Flag
<bullet> Open-End Line of Credit
Flag
<bullet> Business or Commercial
Purpose Flag
------------------------------------------------------------------------
4. Disclosure and Reporting
HMDA and Regulation C require that data collected and reported by
financial institutions in a given calendar year be made available to
the public the following year in both aggregate and loan-level formats.
The HMDA Rule addressed the public disclosure of HMDA data in two
primary ways. First, it shifted public disclosure of HMDA data entirely
to the agencies. Beginning with HMDA data collected in 2017, financial
institutions were no longer required to provide their modified loan/
application registers and disclosure statements directly to the public.
Instead, they were required only to provide a notice advising members
of the public seeking their data that the data may be obtained on the
Bureau's website. Second, the HMDA Rule interpreted HMDA, as amended by
the Dodd-Frank Act, to require that the Bureau use a balancing test to
determine whether and how HMDA data should be modified prior to its
disclosure to the public to protect applicant and borrower privacy
while also fulfilling HMDA's public disclosure purposes. The Bureau
interpreted these changes to require that public HMDA data be modified
when the release of the unmodified data creates risks to applicant and
borrower privacy interests that are not justified by the benefits of
such release to the public in light of HMDA's statutory purposes. In
December 2018, the Bureau issued final policy guidance on its website
describing the loan-level HMDA data it intends to make available to the
public, including modifications to be applied to the data.\34\
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\34\ 84 FR 649 (Jan. 31, 2019). This final policy guidance will
not be covered by the assessment of the HMDA Rule.
---------------------------------------------------------------------------
The HMDA Rule retained the pre-existing requirement that financial
institutions submit their HMDA data to the appropriate Federal agency
by March 1 following the calendar year for which the data are
collected. The HMDA Rule additionally requires that financial
institutions that reported for the preceding calendar year at least
60,000 covered loans and applications combined, excluding purchased
covered loans, also submit their data for the following calendar year
to the appropriate Federal agency on a quarterly basis.
B. Significant Rule Determination
The Bureau has determined that the HMDA Rule, comprised of the 2015
HMDA Final Rule and the related later amendments, considered both
individually and together, is not a significant rule for purposes of
Dodd-Frank Act section 1022(d).\35\ The Bureau made this determination
based on a number of factors, including the estimated annual costs to
industry of complying with the HMDA Rule, and limited or undetectable
effects of the rule on mortgage features, mortgage
[[Page 66227]]
industry operations, and the price and availability of mortgages.
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\35\ For more information on how the Bureau determines a rule's
significance for purposes of section 1022(d) of the Dodd-Frank Act,
see U.S. Gov't Accountability Office, Dodd-Frank Regulations:
Consumer Financial Protection Bureau Needs a Systematic Process to
Prioritize Consumer Risks, December 2018, <a href="https://www.gao.gov/assets/700/696200.pdf">https://www.gao.gov/assets/700/696200.pdf</a>.
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The Bureau's 2015 HMDA Final Rule presented a basic framework of
analyzing compliance costs for HMDA reporting, including ongoing costs
and one-time costs for financial institutions.\36\ A 1022(b)(2) cost-
benefit analysis in the 2015 HMDA Final Rule estimated that the bulk of
the costs associated with the rule derived from one-time implementation
and not ongoing annual costs.\37\ The Bureau estimated the 2015 HMDA
Final Rule would result in ongoing costs of the rule of $53.6 million
to $68.3 million per year for all reporters, as compared to one-time
and start-up costs of between $177 million and $326.6 million per
year.\38\
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\36\ The Small Business Regulatory Enforcement Fairness Act of
1996 (SBREFA), as amended by section 1100G(a) of the Dodd-Frank Act,
requires the Bureau to convene a Small Business Review Panel before
proposing a rule that may have significant economic impact on a
substantial number of small entities. See Public Law 104-121, tit.
II, 110 stat. 847, 857 (1996) as amended by Public Law 110-28, and
Public Law 111-203, section 1100G (2010).
\37\ 80 FR 66128, 66265-66 (Oct. 28, 2015).
\38\ The Bureau's 1022(b) analysis in the 2015 HMDA Final Rule
annualized one-time and start-up costs using a 7 percent discount
rate and 5-year amortization window. Generally, for the subsequent
2017, 2018, 2019, and 2020 HMDA rules, the Bureau estimated that
changes in thresholds and other requirements would represent savings
in ongoing costs for affected entities. Although affected entities
would incur additional one-time costs from the adjustment to new
HMDA requirements, the Bureau estimated these would be negligible.
---------------------------------------------------------------------------
The Bureau considered qualitative factors as well. As a data
collection rule, the HMDA reporting requirements have had little direct
impact on the features of consumer financial products and services.
Financial institutions' HMDA operations are mostly for compliance
purposes, and neither the 2015 HMDA Final Rule nor any of the
amendments materially affected institutions' underlying operations for
originating mortgages.
The Bureau also considered the effects of the HMDA Rule on the
market in making its determination. In the 2015 HMDA Final Rule, the
Bureau explored whether covered entities passed through increased
compliance costs to consumers and found the impact to be
negligible.\39\ The Bureau also considered in the 2015 HMDA Final Rule
whether the new reporting requirements would cause smaller institutions
to exit the mortgage market, either for closed-end mortgage loans or
for open-end lines of credit. The Bureau is not aware of evidence that
the 2015 HMDA Final Rule, or any related amendments, caused some
lenders to leave the market or inhibited any lenders from entering the
market, resulting in a decline in consumers' access to credit.
---------------------------------------------------------------------------
\39\ Generally, for the subsequent 2017, 2018, 2019, and 2020
HMDA rules, the Bureau estimated that changes in thresholds and
other requirements would represent savings in ongoing costs for
affected entities. Although affected entities would incur additional
one-time costs from the adjustment to new HMDA requirements, the
Bureau estimated these would be negligible.
---------------------------------------------------------------------------
Taking these factors into consideration, the Bureau concluded that
the HMDA Rule is not significant for purposes of section 1022(d) of the
Dodd-Frank Act. Therefore, the Bureau is not required to conduct an
assessment of the HMDA Rule under section 1022(d). The Bureau
recognizes the importance of the HMDA Rule, however, and believes that
the public would benefit from the Bureau conducting a voluntary
assessment. The Bureau also previously noted that it would be doing an
assessment of this rulemaking.\40\ For all of these reasons, the Bureau
has decided to conduct a voluntary assessment.
---------------------------------------------------------------------------
\40\ 80 FR 66269 (Oct. 28, 2015).
---------------------------------------------------------------------------
IV. The Assessment Plan
The assessment will address, among other relevant factors, the HMDA
Rule's effectiveness in meeting the purposes and objectives of title X
of the Dodd-Frank Act and the specific goals of the HMDA Rule as stated
by the Bureau. Each is discussed below.
A. Purposes and Objectives of Title X
Section 1021 of the Dodd-Frank Act states that the Bureau shall
seek to implement and, where applicable, enforce Federal consumer
financial law consistently for the purpose of ensuring that all
consumers have access to markets for consumer financial products and
services and that markets for consumer financial products and services
are fair, transparent, and competitive.\41\ Section 1021 also sets
forth the Bureau's objectives, which are to exercise its authorities
under Federal consumer financial law for the purposes of ensuring that,
with respect to consumer financial products and services:
---------------------------------------------------------------------------
\41\ 12 U.S.C. 2603(a), 15 U.S.C. 1604(b).
---------------------------------------------------------------------------
(a) Consumers are provided with timely and understandable
information to make responsible decisions about financial transactions;
(b) Consumers are protected from unfair, deceptive, or abusive acts
and practices and from discrimination;
(c) Outdated, unnecessary, or unduly burdensome regulations are
regularly identified and addressed in order to reduce unwarranted
regulatory burdens;
(d) Federal consumer financial law is enforced consistently,
without regard to the status of a person as a depository institution,
in order to promote fair competition; and
(e) Markets for consumer financial products and services operate
transparently and efficiently to facilitate access and innovation.\42\
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\42\ 12 U.S.C. 5511(b)(1)-(5).
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B. Specific Goals of the HMDA Rule
Congress enacted HMDA in 1975 to create transparency in the
mortgage market.\43\ As originally adopted, HMDA identifies its
purposes as providing the public and public officials with information
to help determine whether financial institutions are serving the
housing needs of the communities in which they are located, and to
assist public officials in their determination of the distribution of
public sector investments in a manner designed to improve the private
investment environment.\44\ Congress later expanded HMDA to, among
other things, require financial institutions to report racial
characteristics, gender, and income information on applicants and
borrowers.\45\ In light of these amendments, the Board subsequently
recognized a third HMDA purpose of identifying possible discriminatory
lending patterns and enforcing antidiscrimination statutes, which now
appears with HMDA's other purposes in Regulation C.\46\
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\43\ 80 FR 66127, 66130 (Oct. 28, 2015).
\44\ HMDA section 302(b), 12 U.S.C. 2801(b); see also 12 CFR
1003.1(b)(1)(i)-(ii).
\45\ Financial Institutions Reform, Recovery, and Enforcement
Act of 1989, Public Law 101-73, section 1211 (``Fair lending
oversight and enforcement'' section), 103 stat. 183, 524-26 (1989).
\46\ 54 FR 51356, 51357 (Dec. 15, 1989), codified at 12 CFR
1003.1(b)(1).
---------------------------------------------------------------------------
In 2015, the Bureau issued amendments to Regulation C to implement
the Dodd-Frank Act amendments to HMDA, better achieve HMDA's purposes
in light of current market conditions, and reduce unnecessary burden on
financial institutions. At that time, the Bureau noted that HMDA and
Regulation C have been updated and expanded over time in order to
maintain the data's usefulness in response to the changing needs of
homeowners and evolution in the mortgage market.\47\ The Bureau also
stated that the HMDA data must be updated in order to address the
informational shortcomings exposed by the financial crisis and to meet
the needs of homeowners, potential
[[Page 66228]]
homeowners, and neighborhoods throughout the nation.\48\ The 2015 HMDA
Final Rule thus sought to address gaps in the HMDA data regarding
certain segments of the market. The Bureau issued subsequent amendments
to clarify further Regulation C's requirements and reduce burden.
---------------------------------------------------------------------------
\47\ 80 FR 66127, 66129 (Oct. 28, 2015).
\48\ Id. at 66130.
---------------------------------------------------------------------------
As previously stated, for purposes of this RFI and assessment
(except as otherwise noted), the Bureau refers to the 2015 HMDA Final
Rule and the subsequent HMDA rules issued in 2017, 2018, 2019, and
2020, collectively as ``the HMDA Rule.'' \49\
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\49\ Certain provisions in the 2020 HMDA Final Rule that would
not go into effect until January 2022, such as the increase in the
open-end coverage threshold, will be not considered under this
assessment.
---------------------------------------------------------------------------
C. Scope and Approach
To assess the effectiveness of the HMDA Rule in meeting these
purposes, objectives and goals, the Bureau is undertaking a voluntary
assessment that is consistent with the requirements of a statutory
assessment under Dodd-Frank Act section 1022(d). Specifically, the
Bureau intends to focus its evaluation of the HMDA Rule on the
following primary topic areas: (1) Institutional coverage and
transactional coverage; (2) data points; (3) benefits of the new data
and disclosure requirements; \50\ and (4) operational and compliance
costs.
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\50\ The Bureau considers an evaluation of the balancing test
used to determine whether and how HMDA data should be modified prior
to its disclosure to the public to protect applicant and borrower
privacy to be outside the scope of its assessment of the HMDA Rule.
---------------------------------------------------------------------------
To assess the HMDA Rule, the Bureau plans to analyze a variety of
metrics and data to the extent feasible. Feasibility will depend on the
data and information available to the Bureau as well as any information
and data submitted in response to this request for comment. The Bureau
plans to investigate the operational and compliance costs of the rule.
The Bureau will work from the methods and findings it published with
the cost-benefit analysis in the 2015 HMDA Final Rule. The Bureau will
also use comments responding to this request for information to
determine whether those methods and findings remain valid. The Bureau
is interested in any information about activities and outcomes
including the ones listed below and is interested in understanding how
these activities and outcomes relate to each other:
(1) Industry outcomes that the HMDA Rule may have affected,
including the number and types of reporters, the number of loans, and
the dollar amounts for reported open-end lines of credit and closed-end
mortgage loans;
(2) The activities undertaken by financial institutions to comply
with the HMDA Rule's criteria, as well as the adoption of loan-volume
coverage thresholds, adoption of new and revised data points, and
revisions to transactional coverage, including mandatory reporting of
open-end lines of credit and the adoption of a dwelling-secured
standard;
(3) Overall benefits and other outcomes that the HMDA Rule sought
to affect, including whether the HMDA Rule has brought greater
transparency to the mortgage market, has helped determine whether
financial institutions are serving the housing needs of their
communities, has assisted public officials in distributing public-
sector investment so as to attract private investment to areas where it
is needed, assisted in identifying possible discriminatory lending
patterns and enforcing antidiscrimination statutes, and addressed gaps
in the HMDA data regarding certain segments of the market;
(4) An evaluation of the benefits and costs of the new and revised
data points, and the benefits and costs of new data reported under the
revised coverage thresholds; and
(5) The HMDA Rule's effect on the operational and compliance costs
for financial institutions, including activities covered institutions
conducted to collect and report new and revised data points.
The Bureau plans to conduct or has begun conducting several
research analyses in connection with this assessment. Other research
analyses may also be considered as appropriate. In conducting the
assessment, the Bureau will evaluate the association between the
requirements of the HMDA Rule and the HMDA Rule's stated purposes,
goals, and objectives.
The Bureau will consider analysis related to loan originations,
applications, prices, and the number of reporters using available data.
The currently available data includes HMDA data, third-party servicing
data, Fannie/Freddie public loan level data, and the National Mortgage
Database (NMDB).\51\ In addition, the Bureau is planning on utilizing
responses to this request for information as appropriate.
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\51\ The NMDB is an ongoing project, jointly undertaken by the
Federal Housing Finance Agency (FHFA) and the Bureau, with the goal
of providing the public and regulatory agencies with data that does
not include any personally identifiable information but that
otherwise may service as a comprehensive resource about the U.S.
mortgage market. The core data in the NMDB are drawn from a random,
personally anonymous, 1-in-20 sample of all credit bureau records
associated with a closed-end, first-lien mortgage, updated
quarterly. Mortgages, after being unlinked from any personally
identifiable information or characteristics that could be traced
back to any borrower, are followed in the NMDB database until they
terminate through prepayment (including refinancing), foreclosure,
or maturity. The information available to the FHFA, CFPB, or any
other authorized user of the NMDB data never includes personally
identifiable information.
---------------------------------------------------------------------------
V. Request for Comment
To inform the assessment, the Bureau hereby invites members of the
public to submit information and other comments relevant to the issues
identified above and below, information relevant to enumerating costs
and benefits of the HMDA Rule to inform the assessment, and any other
information relevant to assessing the effectiveness of the HMDA Rule in
meeting the purposes and objectives of title X of the Dodd-Frank Act
(section 1021) and the specific goals of the Bureau (enumerated above).
More detailed comments/information that are supported by data/analysis
will generally be more useful to inform the assessment. As mentioned
previously, the Bureau recognizes that it faces challenges in its
assessment, as it may be difficult to quantify benefits, and there may
be limitations in the data available to the Bureau to evaluate the HMDA
Rule's contributions to public investment and anti-discrimination
monitoring and enforcement. The Bureau is interested in information and
data on how HMDA data are used by various stakeholders to serve the
HMDA's goals and purposes, including extending access to credit, fair
lending enforcement, and distributing public-sector investment so as to
attract private sector investment. The Bureau also invites comments on
additional data or analyses that would be helpful for the Bureau to
evaluate the effects of different institutional coverage and loan-
volume thresholds. The Bureau welcomes stakeholders to submit data and
information about the effects of different thresholds on lenders and
communities. In particular, the Bureau invites the public, including
consumers and their advocates, community organizations, HMDA reporters
and other industry representatives, industry analysts, and other
interested entities to submit comments on any or all of the following:
(1) Comments on the feasibility and effectiveness of the assessment
plan, the objectives of the HMDA Rule that the Bureau intends to
emphasize in the assessment, and the outcomes for assessing the
effectiveness of the HMDA Rule as described in part IV above;
[[Page 66229]]
(2) Data and other factual information that the Bureau may find
useful in executing its assessment plan and answering related research
questions, particularly research questions that may be difficult to
address with the data currently available to the Bureau, as described
in part IV above;
(3) The specific data points reported under the 2015 HMDA Rule that
help meet the objectives of the HMDA Rule, as described in part IV
above, including the rationale, and provide any available detailed
supporting information, evidence and data;
(4) Recommendations to improve the assessment plan, as well as
data, other factual information, and sources of data that would be
useful and available to the Bureau to execute any recommended
improvements to the assessment plan;
(5) Data and other factual information about the benefits and costs
of the HMDA Rule for communities, public officials, reporters, mortgage
industry participants or other stakeholders; and about the effects of
the rule on transparency in the mortgage market, and the utility,
quality, and timeliness of HMDA data in meeting the Rule's stated goals
and objectives;
(6) Data and other factual information about the accuracy of
estimates of annual ongoing compliance and operational costs for HMDA
reporters, or the analytical approach used to estimate these costs, as
delineated in the Small Business Review Panel Report under the Small
Business Regulatory Enforcement Fairness Act (SBREFA) that the Bureau
convened and chaired in 2014; \52\
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\52\ See Bureau of Consumer Fin. Prot., ``Final Report of the
Small Business Review Panel on the CFPB's Proposals Under
Consideration for the Home Mortgage Disclosure Act (HMDA)
Rulemaking'' at 22, 37 (April 24, 2014), <a href="http://files.consumerfinance.gov/f/201407_cfpb_report_hmda_sbrefa.pdf">http://files.consumerfinance.gov/f/201407_cfpb_report_hmda_sbrefa.pdf</a>.
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a. Comments related to the nature and magnitude of any operational
challenges in complying with the HMDA Rule. Are they significantly
different from those delineated in the published Report of the Small
Business Review Panel mentioned above? If so, how and how much?;
b. Comments delineating and describing the ongoing costs incurred
in collecting and reporting information for the HMDA Rule. Are they
significantly different from those delineated in the published Report
of the Small Business Review Panel mentioned above? If so, how and how
much?;
(7) Data and other factual information about the HMDA Rule's
effectiveness in meeting the purposes and objectives of title X of the
Dodd-Frank Act (section 1021), which are listed in part IV above;
a. Please describe the value that data on such transactions
provides in serving HMDA's purposes;
b. Comments relating to the usability of the public HMDA data,
potential challenges of the current format of the public HMDA data, and
recommendations for additional reporting by the Bureau that would be
helpful in informing the use of the public HMDA data by communities,
public officials, or other stakeholders; and
(8) Recommendations for modifying, expanding, or eliminating any
aspects of the HMDA Rule, including but not limited to the
institutional coverage and loan-volume thresholds, transactional
coverage, and data points.
Rohit Chopra,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2021-25330 Filed 11-19-21; 8:45 am]
BILLING CODE 4810-AM-P
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