The document provides an overview of the Home Mortgage Disclosure Act (HMDA) and Regulation C. It discusses the history of HMDA and key changes over time, including the transfer of rulemaking authority to the CFPB in 2010. It also summarizes the major provisions of the 2015 HMDA Rule, including expanded coverage of institutions and transactions, additional loan-level data requirements, and annual reporting deadlines.

1. Module 1: HMDA and Regulation C

2. 1.1 Home Mortgage Disclosure Act and Regulation C
History of HMDA
 Since its enactment in 1975, the Home Mortgage Disclosure Act (HMDA)
has been amended several times.
 1980: In 1980, amendments to HMDA directed the Federal Financial
Institutions Examination Council (FFIEC) to compile annually for each
Metropolitan Statistical Area (MSA) aggregate lending data by census tract for
certain lenders.
 1988 – 1993: The period of 1988 through 1993 saw substantial changes to
HMDA. Especially significant were the amendments to the Act resulting from
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(FIRREA).
 2010 - Dodd-Frank Act: Title X of the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010 (Dodd-Frank Act) transferred rulemaking
authority for HMDA to the Consumer Financial Protection Bureau (CFPB),
effective July 2011.

3. 1.2 Overview of the 2015 HMDA Rule
HMDA Rule includes changes to Regulation C in four broad areas.
 Covered institutions, i.e., the types of institutions required to collect and
report HMDA data.
 Covered transactions, i.e.; the types of transactions and applications subject
to collection and reporting requirements.
 Loan-level data, i.e., the data that must be collected, recorded, and reported.
 Reporting and disclosure, i.e., the method and frequency of reporting data
and making data available to the public.

4. 1.3 Covered Institutions
2017 - Depository Institutions Subject to Reg. C.
 In 2017, the HMDA Rule narrows the scope of depository institutions subject
to Regulation C.
2018 - Uniform Loan-Volume Threshold.
 The main change to covered institutions is the “uniform loan-volume
threshold”. Beginning in 2018, both depository institutions and non-
depository institutions will be covered by Regulation C if, in addition to other
existing criteria, they originated at least 25 covered closed-end mortgage
loans or 100 covered open-end lines of credit in each of the previous two
calendar years.

5. 1.3 Covered Institutions (continued)
2018 - Uniform Loan-Volume Threshold.
 Depository Institutions
 Current Regulation C requires depository institutions to collect and report
HMDA data if they meet certain criteria.
 For depository institutions, the loan-volume threshold will roll out in two phases:
 January 1, 2017: A depository institution will be subject to Regulation C if it meets the existing criteria and
originated at least 25 home purchase loans (including refinancings) in each of the two preceding calendar
years.
 January 1, 2018: A depository institution will be subject to Regulation C if it meets the existing criteria and
originated (a) at least 25 covered closed-end mortgage loans in each of the past two years or (b) at least 100
covered open-end lines of credit in each of the two preceding calendar years. (The terms “closed-end
mortgage loan” and “open-end line of credit” are defined as part of the new transactional coverage criteria,
which also become effective on January 1, 2018.)

6. 1.3 Covered Institutions (continued)
2018 - Uniform Loan-Volume Threshold.
 Non-Depository Institutions
 Current Regulation C requires non-depository institutions to collect and report
HMDA data if they meet certain criteria.
 New Criteria for Non-Depository Institutions - January 1, 2018
 (1) On the preceding December 31, it had a home or branch office in an MSA, AND
 (2) The institution originated at least:
 (a) 25 covered closed- end mortgage loans in each of the two preceding calendar years, OR
 (b) 100 covered open-end lines of credit in each of the two preceding calendar years.

7. 1.4 Covered Transactions
Coverage Criteria for Consumer-Purpose Loans.
 Amended Regulation C eliminates the purpose-based criteria for
consumer-purpose loans and replaces it with a single collateral-based
test (or dwelling-secured standard).
 Beginning January 1, 2018, covered loans under the HMDA Rule
generally will include closed-end mortgage loans and open-end lines of
credit secured by a dwelling.
 At that time, data must be collected and reported on consumer loans
that are secured by a dwelling, regardless of the purpose of the loan.

8. 1.4 Covered Transactions (continued)
Coverage Criteria for Business-Purpose Loans.
 Amended Regulation C eliminates the purpose-based criteria for
consumer-purpose loans and replaces it with a single collateral-based
test (or dwelling-secured standard).
 Beginning January 1, 2018, covered loans under the HMDA Rule
generally will include closed-end mortgage loans and open-end lines of
credit secured by a dwelling.
 At that time, data must be collected and reported on consumer loans
that are secured by a dwelling, regardless of the purpose of the loan.

9. 1.4 Covered Transactions (continued)

10. 1.5 Reportable Loan-Level Data
Types of Data Collected and Reported
 Information about applicants, borrowers, and the underwriting
process, such as age, credit score, debt-to-income ratio, and
automated underwriting system results.
 Information about the property securing the loan, such as construction
method, property value, and additional information about
manufactured and multifamily housing.
 Information about the features of the loan, such as additional pricing
information, loan term, interest rate, introductory rate period, non-
amortizing features, and the type of loan.
 Certain unique identifiers, such as a universal loan identifier, property
address, loan originator identifier, and a legal entity identifier for the
financial institution.

11. 1.5 Reportable Loan-Level Data (continued)
Types of Data Collected and Reported
 Information about applicants, borrowers, and the underwriting
process, such as age, credit score, debt-to-income ratio, and
automated underwriting system results.
 Information about the property securing the loan, such as construction
method, property value, and additional information about
manufactured and multifamily housing.
 Information about the features of the loan, such as additional pricing
information, loan term, interest rate, introductory rate period, non-
amortizing features, and the type of loan.
 Certain unique identifiers, such as a universal loan identifier, property
address, loan originator identifier, and a legal entity identifier for the
financial institution.

12. 1.5 Reportable Loan-Level Data (continued)
Collection and Reporting of Applicant Information
 Financial institutions are required to collect personal information from
applicants regarding their ethnicity, race, and sex.
 Beginning in 2018, institutions must report how the institution
collected the information about the applicant’s or borrower’s ethnicity,
race, and sex.
 A covered institution will report whether or not it collected the
information on the basis of visual observation or on the basis of
surname.

13. 1.5 Reportable Loan-Level Data (continued)
Disaggregation of Ethnic and Racial Categories
 Beginning January 1, 2018, for transactions where ethnicity and race
information is provided by the applicant, financial institutions must
allow the borrowers to self-identify their ethnicity and race using
disaggregated ethnic and racial subcategories (if provided).
 The HMDA Rule significantly modifies the current requirements related
to the collection of ethnicity, race, and sex of applicants and borrowers.
 Under the current rule, ethnicity has two aggregate categories—
“Hispanic or Latino” or “Not Hispanic or Latino”—and no disaggregated
subcategories.

14. 1.5 Reportable Loan-Level Data (continued)
Disaggregation of Ethnic and Racial Categories
 Additionally, there are five aggregate categories for race—“American
Indian or Alaska Native, Asian, Black or African American, Native
Hawaiian or Other Pacific Islander, and White”—and no subcategories.
 As amended, Regulation C disaggregates many of the data fields used
to denote these characteristics under the current rule.

15. 1.6 Reporting and Public Disclosure
Annual Reporting
 The HMDA Rule retains the requirement that a financial institution
submit its HMDA data to its appropriate Federal agency by March 1
following the calendar year for which it collected the data.
 Beginning with the HMDA data collected in 2017 (to be collected under
the existing collection requirements and reported by March 1, 2018)
the data will be reported through an electronic submission tool to the
CFPB.