The NAFCU Journal November - December 2017 - 36

COMPLIANCE CENTRAL

CFPB Sets HMDA Corrections,
Higher HELOC Floor (For Now)
By Brandy Bruyere, VP of Regulatory Compliance

O

n Aug. 24, 2017, the CFPB
published a final rule
amending its 2015 Home
Mortgage Disclosure Act
rule. This finalizes technical changes and
amendments that the Bureau proposed
back in April, while also finalizing a
July proposal to increase the reporting
threshold for open-end home equity
loans from 100 loans to 500 loans. The
regulatory references to HMDA below
are not to the current version of the rule,
but the rule as amended in 2015 (and
further amended by this new rulemaking). Below are summaries of some of
the important changes.

Technical Amendments

In April, the CFPB proposed a set of
technical and clarifying amendments to
its HMDA rule. These changes are being
finalized rather late in the implementation process and will need to be incorporated for loans where the credit union
takes "final action" on or after Jan. 1,
2018. Here are summaries of a few of the
key amendments to the HMDA rule:
■■

Counteroffers. Section 1003.4(a)(8)
(i) requires credit unions to report
the action taken on covered loans
and applications. Comment 4(a)
(8)(i)-9 explains how to report the
action taken for a counteroffer where
the applicant does not accept the
counteroffer or fails to respond. The
final rule amends comment 4(a)(8)
(i)-9 to broaden the possible actions
taken that could be reported in
these situations.

36

Temporary and construction-only
loans. Section 1003.3 specifies which
transactions are excluded from HMDA
reporting. The Bureau finalized clarifying changes to comment 3(c)(3)-1
and added new comment 3(c)(3)-2 to
specify that a construction-only loan
or line of credit is considered temporary financing and is excluded under
§1003.3(c)(3) if the loan or line of
credit is extended to a person exclusively to construct a dwelling for sale.
■■ Loan purpose for purchased loans
originated before Jan. 1, 2018. Section
1003.4(a)(3) requires credit unions to
report the purpose of a covered loan
or application. Categories include
■■

home purchase, home improvement
or refinancing, an "other" category and
a cashout refinancing category. The
CFPB is adding new comment 4(a)
(3)-6 to clarify that, for purchased
covered loans where the origination
took place before Jan. 1, 2018, a credit
union complies with §1003.4(a)(3)
by reporting that the requirement is
not applicable.
■■ Rate spread. The bureau is also finalizing rule text to formally incorporate commentary on reporting the
rate spread for certain applications.
Specifically, the rule will state that the
rate spread between the annual percentage rate (APR) and the average

THE NAFCU JOURNAL  NOVEMBER-DECEMBER 2017



Table of Contents for the Digital Edition of The NAFCU Journal November - December 2017

Events Calendar
From the Chair
Inside NAFCU
The Digital Download
The Never-Ending Compliance Burden
Developing Future Leaders From Within
Future Focus
Getting to Know
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal November - December 2017 - Cover1
The NAFCU Journal November - December 2017 - Cover2
The NAFCU Journal November - December 2017 - 1
The NAFCU Journal November - December 2017 - 2
The NAFCU Journal November - December 2017 - Events Calendar
The NAFCU Journal November - December 2017 - From the Chair
The NAFCU Journal November - December 2017 - 5
The NAFCU Journal November - December 2017 - Inside NAFCU
The NAFCU Journal November - December 2017 - 7
The NAFCU Journal November - December 2017 - 8
The NAFCU Journal November - December 2017 - 9
The NAFCU Journal November - December 2017 - 10
The NAFCU Journal November - December 2017 - 11
The NAFCU Journal November - December 2017 - 12
The NAFCU Journal November - December 2017 - 13
The NAFCU Journal November - December 2017 - 14
The NAFCU Journal November - December 2017 - 15
The NAFCU Journal November - December 2017 - The Digital Download
The NAFCU Journal November - December 2017 - 17
The NAFCU Journal November - December 2017 - The Never-Ending Compliance Burden
The NAFCU Journal November - December 2017 - 19
The NAFCU Journal November - December 2017 - 20
The NAFCU Journal November - December 2017 - 21
The NAFCU Journal November - December 2017 - 22
The NAFCU Journal November - December 2017 - 23
The NAFCU Journal November - December 2017 - Developing Future Leaders From Within
The NAFCU Journal November - December 2017 - 25
The NAFCU Journal November - December 2017 - 26
The NAFCU Journal November - December 2017 - 27
The NAFCU Journal November - December 2017 - Future Focus
The NAFCU Journal November - December 2017 - 29
The NAFCU Journal November - December 2017 - 30
The NAFCU Journal November - December 2017 - 31
The NAFCU Journal November - December 2017 - Getting to Know
The NAFCU Journal November - December 2017 - 33
The NAFCU Journal November - December 2017 - Management Insight
The NAFCU Journal November - December 2017 - 35
The NAFCU Journal November - December 2017 - Compliance Central
The NAFCU Journal November - December 2017 - Inside NAFCU Services
The NAFCU Journal November - December 2017 - 38
The NAFCU Journal November - December 2017 - 39
The NAFCU Journal November - December 2017 - From the President’s Desk
The NAFCU Journal November - December 2017 - Cover3
The NAFCU Journal November - December 2017 - Cover4
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