The Consumer Financial Protection Bureau has made an annual adjustment regarding which mortgage lenders may be excused from reporting Home Mortgage Disclosure Act (HMDA) data to the federal government. The threshold for HMDA exemption has been moved up to $43 million; lending institutions with assets at that level or lower must report data collected in 2013 but will not have to gather the data in 2014.
The asset level that triggers an exemption from the requirement to set up an escrow account for a higher-priced mortgage under Regulation Z of the Truth in Lending Act also has been raised. Creditors with assets of $2.028 billion or less, but that satisfy other requirements under Regulation Z, will not have to meet the escrow stipulation this year.
The CFPB has exhibited low tolerance for violation of the HMDA reporting requirements, which it believes can help identify discriminatory lending patterns and gauge how well lenders are meeting housing needs in the communities they serve. "Significant data errors" in 2011 HMDA reporting, for example, resulted in a $425,000 fine for Mortgage Master Inc. of Walpole, Mass., and $34,000 in penalties for Seattle-based Washington Federal.