Final HMDA Reporting Thresholds: Financial Institution

Dec 23, 2021


Welcome to Life Designers, your trusted partner in providing exceptional consulting and analytical services for businesses and consumers alike. In this article, we will discuss the final HMDA (Home Mortgage Disclosure Act) reporting thresholds for financial institutions. Our aim is to provide you with accurate and comprehensive information to help you navigate and comply with these regulations.

What is HMDA?

The Home Mortgage Disclosure Act (HMDA) is a federal law enacted in 1975 that requires financial institutions to collect and report data related to mortgage loan applications, originations, and purchases. The data collected under HMDA is used to identify potential discriminatory lending practices, monitor fair lending compliance, and ensure equal access to credit for all consumers.

Understanding HMDA Reporting Thresholds

HMDA reporting thresholds refer to the criteria that determine whether a financial institution is required to collect and report HMDA data. The Consumer Financial Protection Bureau (CFPB) periodically reviews and adjusts these thresholds to reflect changes in the mortgage market and ensure effective data collection without imposing undue burden on smaller institutions.

Recent Changes in HMDA Reporting Thresholds

In 2021, the CFPB finalized changes to the HMDA reporting thresholds. These changes are aimed at reducing the regulatory burden on smaller financial institutions while still maintaining the effectiveness of HMDA data collection. The key changes include:

  1. Increase in Closed-End Mortgage Loan Threshold: The closed-end mortgage loan threshold has been increased from 25 to 100 loans. Financial institutions that originated or purchased fewer than 100 closed-end mortgage loans in the preceding two calendar years will be exempt from reporting such loans.
  2. Introduction of a New Open-End Lines of Credit Threshold: A threshold for reporting open-end lines of credit has also been introduced. Financial institutions that originated or purchased fewer than 200 open-end lines of credit in the preceding two calendar years will be exempt from reporting such lines of credit.

These changes aim to relieve smaller financial institutions from reporting obligations where the volume of mortgage transactions is relatively low, allowing them to focus on providing quality services to their customers.

Importance of Compliance

Compliance with HMDA reporting thresholds is crucial for financial institutions to fulfill their regulatory obligations. It enables them to contribute to the efforts of promoting fair lending practices, tracking potential discrimination, and providing accurate data for policymakers and researchers to make informed decisions.

Life Designers: Your Trusted Consulting Partner

At Life Designers, we understand the significance of compliance with HMDA regulations for financial institutions. Our team of experienced consultants is well-versed in the intricacies of HMDA reporting and can assist you in navigating the complexities of these thresholds.

By partnering with Life Designers, you gain access to tailored solutions that align with your unique needs and goals. Our experts will guide you through the entire HMDA reporting process, ensuring accuracy, comprehensive data collection, and seamless compliance.

Our Services

Life Designers offers a range of services related to HMDA reporting thresholds for financial institutions:

  • HMDA Compliance Assessment: Our consultants will conduct a thorough assessment of your current practices and identify any gaps or areas for improvement in relation to HMDA compliance.
  • Data Collection and Reporting: We assist financial institutions in collecting and organizing accurate data, ensuring compliance with HMDA reporting requirements.
  • Staff Training and Education: Our experts provide training and educational resources to ensure your staff is equipped with the knowledge and skills necessary for effective HMDA reporting.
  • Regulatory Updates: We keep you informed about any changes in HMDA reporting thresholds and assist in adapting your practices accordingly.

Contact Us Today

Ready to enhance your understanding of the final HMDA reporting thresholds for financial institutions? Reach out to Life Designers today to schedule a consultation. Our dedicated team is here to assist you every step of the way, ensuring compliance and optimal performance in meeting your reporting obligations.

Partner with Life Designers for expert consulting and analytical services. Trust us to help you navigate the complex world of HMDA reporting thresholds effectively.