Compliance Blog

Another day, another HMDA question keeps coming up that boils down to some regulatory version of "Where's Waldo?"

By my count, we are waiting on three things from the CFPB relating to HMDA implementation. The CFPB has promised to create a "check digit" tool and its own version of a geocoding tool for locating a property's census tract which are not yet available. Credit unions are also waiting on the CFPB to release its own web-based HMDA submission tool which has yet to be released.

As a reminder, while HMDA data is currently submitted to the FFIEC,this will change for 2018. The web-based submission tool is the system credit unions subject to HMDA reporting will be required to use in 2018 for submitting data collected in 2017.  In fact, the CFPB's Small Entity Compliance Guide for HMDA actually suggests becoming familiar with this tool as part of a credit union's planning for implementing HMDA:

9.1.1 Identifying changes to business processes, policies, and systems

The requirements of the 2015 HMDA Rule may affect a number of a Financial Institution’s business systems, processes, and policies. A review should be conducted of existing business processes, policies, and systems that the Financial Institution, its agents, and other business partners use. Identifying impacts early will allow the Financial Institution to understand what changes will be needed to support ongoing compliance.

When reviewing its existing processes, policies, and systems, a Financial Institution should consider the 2015 HMDA Rule’s requirement to submit data electronically beginning in 2018. Beginning in 2018, Financial Institutions will not be able to use paper-based submissions for HMDA data. The Bureau is creating a web-based tool for submission of HMDA data. Financial Institutions should become familiar with the new web-based submission tool and be able to use it to submit data beginning in 2018. For more information on the web-based submission tool, see http://www.consumerfinance.gov/hmda/. (Emphasis added.)

So understandably, credit unions have been asking – where is this submission tool that our teams need to "become familiar with" soon?

There is good news on this – we have been advised that the CFPB plans to make the submission tool live sometime in August and is holding webinars as part of the Bureau's HMDA outreach. NAFCU will host one of these webcasts in early August, which will be freely available. The plan is for CFPB staff to provide a demonstration of the tool and how to use it. Stay tuned for more details on how to register, or you can check back at this website in a couple of weeks for registration options.

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McWatters to Cordray: Exempt CUs from CFPB Oversight. In other news, NCUA Chairman McWatters wrote a letter to CFPB Director Richard Cordray yesterday asking the Bureau to provide an exemption for credit unions with assets above $10 billion from the CFPB's examination and enforcement authority. NAFCU has repeatedly called for credit unions to be exempt from the CFPB's rulemaking and examination authority, including as part of our 2015 five-point plan for regulatory relief. NAFCU President and CEO Dan Berger stated "NAFCU – from the Bureau's inception – was against the CFPB having direct oversight over credit unions and was the only financial services trade association to take that stance. NAFCU and its members thank Chairman McWatters for making this request directly to Director Cordray." You can read more here, and find our 2017 advocacy priorities here.

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