The CFPB issued a final rule on Friday adjusting the asset-size exemption threshold for America’s financial institutions under Regulation C, which implements the Home Mortgage Disclosure Act.
Asset-size exemptions for banks, savings associations and credit unions will increase to $42 million, and institutions with less than $42 million in assets are exempt from collecting HMDA data in 2013.
Additionally, the HMDA requires the CFPB to adjust the threshold on an annual basis by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
The CFPB’s Regulation C and HMDA both require most mortgage lenders in city areas to collect, report and disclose data about the applications for and originations of loans for home purchases, home improvement and refinancing.
Information contained in the mortgage lenders’ reports include the type, purpose and amount of the loan, as well as demographic information, including ethnicity, race, and income. The location of the property and loan pricing information are required for some loan reporting.
The HMDA data is used to determine how effectively financial institutions are meeting the housing needs of their communities and to identify possible discriminatory lending patterns.
The rule will take effect immediately after being published in the Federal Register and will apply to all data collection in 2013.