Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2023

23-RA-02 / March 2023
Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2023
Subject
HMDA
To
Federally Insured Credit Unions
Status
Active
To
Federally Insured Credit Unions
Subj
Home Mortgage Disclosure Act Data Collection Requirements for Calendar Year 2023

Dear Boards of Directors and Chief Executive Officers:

If your credit union makes residential mortgage loans and meets all four criteria outlined below, you must comply with the Consumer Financial Protection Bureau’s (CFPB) Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).1

Regulation C requires you to collect HMDA data associated with mortgage loan applications processed during 2023 if:

  1. Your credit union’s total assets as of December 31, 2022, exceeded $54 million;2
  2. Your credit union had a home or branch office in a Metropolitan Statistical Area on December 31, 2022;
  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 2022; and
  4. Your credit union originated at least 25 covered closed-end mortgage loans in each of the two preceding calendar years (2021 and 2022) or at least 200 covered open-end lines of credit in each of the two preceding calendar years (2021 and 2022).3

If your credit union meets all four criteria, you must collect HMDA data during calendar year 2023 and submit the data to the CFPB no later than March 1, 2024.

If your credit union does not meet all four criteria, you are exempt from filing HMDA data for mortgage loan applications processed in calendar year 2023.

HMDA Data Partial Exemptions

Regulation C contains partial exemptions from HMDA’s requirements for certain transactions.

Regulation C provides that a credit union is not required to collect or report certain data points with respect to closed-end mortgage loans if the credit union originated fewer than 500 covered closed-end mortgage loans in each of the two preceding calendar years. Similarly, a credit union is not required to collect or report certain data points with respect to open-end lines of credit if the credit union originated fewer than 500 covered open-end lines of credit in each of the two preceding calendar years.

Section 1003.3(c) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) of Regulation C lists excluded (not covered) transactions.

The table below provides partial exemption examples.

Credit Union Loan Type Originations During Calendar Year 2021 Originations During Calendar Year 2022 Partial Exemption In 2023
A Closed-end mortgage loans

Open-end lines of credit
425

500
450

525
Only closed-end mortgage loans are exempt
B Closed-end mortgage loans

Open-end lines of credit
475

400
500

425
Only open-end lines of credit are exempt
C Closed-end mortgage loans

Open-end lines of credit
525

600
550

625
Neither exemption applies

As the table indicates, the partial exemption for closed-end mortgage loans and the partial exemption for open-end lines of credit operate independently of one another. Thus, a credit union may rely on one partial exemption but not the other.

There are 48 data points required by Regulation C. The regulation specifies that 26 of these data points are not required to be collected and reported if a transaction qualifies for a partial exemption. The regulation also specifies that 22 of these data points must be collected and reported even if a transaction qualifies for a partial exemption. Appendix F (Partial Exemptions Charts) in the 2022 A Guide to HMDA Reporting: Getting It Right! (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) outlines the 26 data points covered by the partial exemptions and the 22 data points not covered by the partial exemptions.

As illustrated in the table above, in 2023, Credit Union A would only be required to collect and report the 22 non-exempt data points, but not the 26 exempt data points, for its closed-end mortgage loans and applications. Credit Union A would, however, be required to collect and report all 48 data points for its open-end lines of credit loans and applications.

In 2023, Credit Union B would only be required to collect and report the 22 non-exempt data points, but not the 26 exempt data points, for its open-end lines of credit loans and applications. Credit Union B would, however, be required to collect and report all 48 data points for its closed-end mortgage loans and applications.

In 2023, Credit Union C would be required to collect and report all 48 data points for both its closed-end mortgage loans and applications and its open-end lines of credit loans and applications.

Please note that a credit union may voluntarily report any or all of the 26 exempt data points. However, if a credit union opts to report an exempt data point voluntarily, it must report all data fields that are part of that data point.

If you have questions about the information in this Regulatory Alert, please contact the NCUA’s Office of Consumer Financial Protection at 703.518.1140 or ComplianceMail@ncua.gov. You can also contact your NCUA regional office or your state supervisory authority.

Sincerely,

/s/

Todd M. Harper
Chairman

Footnotes


1 12 U.S.C. 2801–2810; 12 CFR Part 1003 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .

2 See 87 FR 80433 (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (December 27, 2022) (adjusting asset-size exemption threshold).

3 On September 23, 2022, the United States District Court for the District of Columbia issued an order vacating the 2020 HMDA Final Rule as to the loan volume reporting threshold for closed-end mortgage loans. The decision means that the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA Final Rule rather than the 100-loan threshold set by the 2020 HMDA Final Rule. See NCUA Regulatory Alert 23-RA-01, Change to HMDA’s Closed-End Loan Reporting Threshold (February 2023).

HMDA
Last modified on
03/30/23