Regulatory Update 2-3-2020, Weekly Regulatory Advocacy Report

by Tim Pierce and Dave Hawkins | Feb 03, 2020


CFPB Creates 2020 List of Consumer Reporting Companies
The CFPB has published a list of consumer reporting companies online. The list also includes how to request a report, includes free guides, and gives information on security freezes.
HMDA Reporting
Credit unions located in metropolitan areas that engage in certain types and volume of residential mortgage lending, and that had assets exceeding $46 million as of December 31, 2018, must file a report this year on mortgage loan applications received during 2019. The filing is required under the Regulation C, Home Mortgage Disclosure Act (HMDA).
Regulation C requires you to collect HMDA data associated with mortgage loan applications processed during 2020, if:
  1. Your credit union’s total assets as of December 31, 2019, exceeded $47 million;
  2. Your credit union had a home or branch office in a Metropolitan Statistical Area on December 31, 2019;
  3. Your credit union originated at least one home purchase loan (other than temporary financing such as a construction loan) or refinanced a home purchase loan, secured by a first lien on a one-to-four-unit dwelling during 2019; and
  4. Your credit union originated at least 25 closed-end mortgage loans in each of the two preceding calendar years (2018 and 2019) or 500 open-end lines of credit in each of the two preceding calendar years (2018 and 2019).
To determine if your credit union must submit HMDA data for calendar year 2019 activity, please review the 2019 HMDA Institutional Coverage Chart.
CFPB Adjusted Regulation Z Asset-Size Threshold Exemption
The CFPB has adjusted the asset-size exemption threshold for creditors, including depository institutions, under Regulation Z, Truth in Lending Act. The asset-size threshold increased from $2.167 billion to $2.202 billion in 2020.
As a result, credit unions with assets of less than $2.202 billion (including assets of certain affiliates) as of December 31, 2019, are exempt — if other requirements of Regulation Z are met — from establishing escrow accounts for higher-priced mortgage loans in 2020. The adjustment also increases the asset-size threshold for credit unions making small-creditor portfolio and balloon-payment qualified mortgages under Regulation Z.
CFPB Publishes Policy Statement to Announce “Compliance Aids”
The CFPB is establishing a new category of compliance materials that will be designated as “Compliance Aids” Although the compliance aids will not be rules, the policy statement states the aids will provide greater clarity to assist individuals with implementation and impact of the rules.
Pending Regulatory Comment Call
Upcoming Effective Dates
Regulatory Update is a compliance resource delivered by email only. All Regulatory Updates are available on the League's website. If you have any questions, please don't hesitate to contact Joe Guilfoy, Tim Pierce or Dave Hawkins. If there is someone else at your credit union who should receive these updates, or if you would like to be removed from our list, please send a reply e-mail.