It’s that time of the year again, the HMDA reporting deadline! As noted in this NCUA Letter to Credit Unions, the deadline to report 2023 HMDA data to the CFPB is March 1, 2024. What about for 2024 data? Well fortunately, the 2023 HMDA letter is not an anomaly and NCUA generally publishes an annual letter on credit union HMDA reporting requirements. The most recent letter details the deadline and requirements for reporting 2024 HMDA data. Let’s take a look at what the requirements are.
Generally, Regulation C, section 1003.4 requires financial institutions to collect and report data on covered loans if they meet certain requirement and unless an exemption applies. Fortunately, the NCUA letter outlines four basic criteria that credit unions need to meet in order for the requirements to apply to them:
- “Your credit union’s total assets as of December 31, 2023, exceeded $56 million;
- Your credit union had a home or branch office in a Metropolitan Statistical Area on December 31, 2023;
- 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 2023; and
- Your credit union originated at least 25 covered closed-end mortgage loans in each of the 2 preceding calendar years (2022 and 2023) or at least 200 covered open-end lines of credit in each of the 2 preceding calendar years (2022 and 2023).”
As noted in the letter, credit unions that meet the above criteria are required to collect HMDA data for the calendar year 2024 and submit that data to the CFPB by March 3, 2025. However, credit unions may want to note that, even if they meet the above criteria, further partial exemptions may limit the number of datapoints the credit union is required to report. Specifically, under section 1003.3(d)(2), if a credit union originated fewer than 500 closed-end mortgage loans in each of the preceding two calendar years, the credit union would not be required to collect “the data identified in § 1003.4(a)(1)(i), (a)(9)(i), and (a)(12), (15) through (30), and (32) through (38).” Similarly, section 1003.3(d)(3) provides the same partial exemption but to open-end lines of credit. Credit unions should note that the two partial exemptions are unrelated to each other and one, both or neither partial exemption could apply. NCUA helpfully provided the following table with examples in their letter:
Here is an excerpt from NCUA regarding the above table:
“As illustrated in the table above, in 2024, 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 2024, 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 2024, 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.”
For credit unions that have determined that the collection/reporting requirements apply to them, a helpful resource is the HMDA Reporting: Getting it Right guide. The guide is a go to resource for explanations on the various requirements, including explanations on the multitude of data points that are required to be collected by credit unions.
As mentioned above, the HMDA requirements are found in Regulation C, which is overseen by the Consumer Financial Protection Bureau (CFPB). Yesterday Jim Nussle, President and CEO of America’s Credit Unions, met with CFPB Director Rohit Chopra. America’s Credit Unions will continue to engage with federal regulators on all topics affecting credit union compliance and will continue to advocate for an environment in which credit unions can thrive.