Dear Boards of Directors and Chief Executive Officers:
Credit unions located in metropolitan areas that engage in certain types and volume of residential mortgage lending, and that had assets exceeding $47 million as of December 31, 2019, must file a report this year on mortgage loan applications received during 2020. The filing is required under the Home Mortgage Disclosure Act (HMDA), as implemented by the Consumer Financial Protection Bureau’s (CFPB’s) Regulation C.1
Credit unions subject to HMDA requirements in calendar year 2020 must submit loan/application register data to the CFPB by March 1, 2021.
To determine if your credit union must submit HMDA data for calendar year 2020 activity, please review the 2020 HMDA Institutional Coverage Chart (opens new window).
Please note, the closed-end mortgage loan threshold increased from 25 to 100 effective July 1, 2020. Credit unions that originated fewer than 100 covered closed-end mortgage loans in 2018 or 2019 are not required to report any closed-end mortgage loan information for 2020. Section 1003.3(c) (opens new window) of Regulation C lists excluded (not covered) transactions.
Submission Process for Data Collected in 2020
Credit unions must submit their HMDA data using the HMDA Platform. No other submission methods are permitted. Credit unions will use the HMDA Platform (opens new window) to upload their loan/application register (LAR) data, review edits, certify the accuracy and completeness of the data, and submit data for the filing year.
Note: While a beta system is available for testing purposes, final HMDA data must be submitted to the live HMDA Platform.
The HMDA Platform will walk you through the loan/application register filing process. Credit unions should use a modern web browser, such as the latest versions of Google Chrome, Mozilla Firefox, Internet Explorer 11, Safari or Microsoft Edge.
Credit unions must submit data collected in a pipe delimited text file (.txt). A loan/application register formatting tool has been developed to help format certain data into a pipe delimited text file. The LAR Formatting Tool (opens new window) may be especially helpful for credit unions with small volumes of reported loans that do not use vendor or other software to prepare their HMDA data for submission.
Credit unions must address all edits prior to submitting their HMDA data. The edit report will be web-based. Additionally:
- Edit reports will not be e-mailed to credit unions in a PDF format. Instead, the CFPB edit reports must be viewed in and can be downloaded from the HMDA Platform.
- Responses to edits cannot be faxed or e-mailed to the CFPB. The HMDA Platform will guide credit unions through the process of addressing edits.
As part of the submission process, an authorized representative of your credit union with knowledge of the data submitted must certify to the accuracy and completeness of the data submitted. Credit unions cannot fax or e-mail the signed certification, as they must use the HMDA Platform for all aspects of the submission process.
Additional resources, including the Filing Instructions Guide for HMDA data (opens new window) collected in 2020, can be found on the Resources for HMDA filers (opens new window) page on the CFPB’s website.
Technical questions about reporting HMDA data collected in or after 2020 should be directed to firstname.lastname@example.org.
NCUA Policy Concerning Delinquent Filings
NCUA expects every credit union required to report 2020 HMDA data to submit its file to the CFPB by the March 1, 2021, deadline. Credit unions appearing on a delinquent filers list could become subject to civil money penalty assessments.
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.
Todd M. Harper