Rep. Emmer introduces bill to exempt small banks, credit unions from HDMA reporting

U.S. Rep. Tom Emmer (R-MN) introduced legislation that would exempt certain small banks and credit unions from the updated reporting requirements under the Home Mortgage Disclosure Act (HMDA).

Tom Emmer

The Consumer Financial Protection Bureau (CFPB) revised Regulation C under the HMDA to require covered banks and credit unions to collect new data points on loan applications they receive and report this data to the CFPB. This rule goes into effect January 1, 2018.

Emmer’s bill exempts small banks and credit unions from the updated reporting requirements of Regulation C if they are lenders that have originated 1,000 or fewer closed-end mortgages in each of the two preceding calendar years will be exempt from reporting on such loans.

Lenders that have originated 2,000 or fewer open-end lines of credit (such as a typical home equity loan) in each of the two preceding calendar years would also be exempt.

Additionally, the bill repeals the HMDA amendments included in Dodd-Frank and withdraws the CFPB’s rule to impose the new and modified HMDA data points.

“There is a time and a place for regulation, but imposing new and unnecessary mandates and reporting requirements on our community financial institutions is most certainly a step too far,” Emmer said. “Not only are our small banks and credit unions being forced to close up shop, these stifling regulations are making it harder for entrepreneurs and American families to get the mortgages, car loans and the business financing they need. Through my Home Mortgage Disclosure Adjustment Act, we will be able to cut red-tape and bring much needed regulatory relief to our local financial institutions so Americans can once again achieve the American Dream.”

This legislation is endorsed by the National Association of Federally-Insured Credit Unions and the Independent Community Bankers of America.