CFPB Raises Exemption Threshold for Disclosure Act

The ""Consumer Financial Protection Bureau"":http://www.consumerfinance.gov/ (CFPB) announced it has ""finalized a rule"":http://files.consumerfinance.gov/f/201212_CFPB_Home-Mortgage-Disclosure-Adjustment-Asset-Size-Exemption-Threshold.pdf adjusting the asset-size exemption threshold for banks, savings associations, and credit unions under Regulation C, which implements the Home Mortgage Disclosure Act (HMDA).

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Based on the adjustments, institutions with assets of $42 million or less (as of the end of 2012) are exempt from collecting HMDA data in 2013. That exemption does not apply to data institutions are supposed to report for 2012.

The adjustment is based on the 2.23 percent increase in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period ending in November 2012, according to the CFPB. The previous exemption threshold was $41 million.

HMDA and the CFPB's Regulation C requires most mortgage lenders located in metro areas to collect, report, and disclose data about applications and originations for purchase loans, home improvement loans, and refinances. Data reported include the type, purpose, and amount of the loan; the race, ethnicity, sex, and income of the loan applicant; the location of the property; and loan pricing information for some loans. The collected data are used to determine if lenders are serving the needs of their communities and to assist in identifying discriminatory practices.