H. Rept. 115-485 - HOME MORTGAGE DISCLOSURE ADJUSTMENT ACT115th Congress (2017-2018)
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[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-485
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HOME MORTGAGE DISCLOSURE ADJUSTMENT ACT
_______
January 8, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2954]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 2954) to amend the Home Mortgage Disclosure Act
of 1975 to specify which depository institutions are subject to
the maintenance of records and disclosure requirements of such
Act, and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Home Mortgage Disclosure Adjustment
Act''.
SEC. 2. DEPOSITORY INSTITUTIONS SUBJECT TO MAINTENANCE OF RECORDS AND
DISCLOSURE REQUIREMENTS.
(a) In General.--Section 304 of the Home Mortgage Disclosure Act of
1975 (12 U.S.C. 2803) is amended--
(1) by redesignating subsection (i) as paragraph (3) and
adjusting the margins accordingly; and
(2) by inserting before paragraph (3), as so redesignated,
the following:
``(i) Exemptions.--
``(1) Closed-end mortgage loans.--With respect to a
depository institution, the requirements of paragraphs (5) and
(6) of subsection (b) shall not apply with respect to closed-
end mortgage loans if the depository institution originated
less than 500 closed-end mortgage loans in each of the 2
preceding calendar years.
``(2) Open-end lines of credit.--With respect to a depository
institution, the requirements of paragraphs (5) and (6) of
subsection (b) shall not apply with respect to open-end lines
of credit if the depository institution originated less than
500 open-end lines of credit in each of the 2 preceding
calendar years.''.
(b) Technical Correction.--Section 304(i)(3) of the Home Mortgage
Disclosure Act of 1975, as so redesignated by subsection (a)(1), is
amended by striking ``section 303(2)(A)'' and inserting ``section
303(3)(A)''.
Purpose and Summary
Introduced on June 20, 2017, by Representative Emmer, the
``Home Mortgage Disclosure Adjustment Act'' amends the Home
Mortgage Disclosure Act of 1975 to create an exemption from
certain records and disclosure requirements for depository
institutions that have originated in each of the two preceding
calendar years fewer than 500 closed-end mortgage loans, or
fewer than 500 open-end lines of credit.
Background and Need for Legislation
In 1975, Congress enacted and President Ford signed into
law the Home Mortgage Disclosure Act (HMDA). The Federal
Reserve Board's Regulation C implemented HMDA. On July 21,
2011, pursuant to Title X of the Dodd-Frank Wall Street Reform
and Consumer Protection Act the Consumer Financial Protection
Bureau (CFPB) received the rule-writing authority of Regulation
C. Over time HMDA has expanded originally aimed at basic
monitoring and redlining prevention, to one widely used by
regulators and advocates as a fair lending tool. It requires
many depository institutions, including banks, savings
associations, credit unions, and other mortgage lending
institutions to report information about the home loans that
they decision, originate, or purchase.
Section 1094 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) directed the Consumer
Financial Protection Bureau (CFPB) to expand HMDA data
reporting requirements to include additional information about
the applicants, lenders, and loans. In October 2015, the CFPB
released a final rule amending Regulation C, which implements
the HMDA and requires most lenders to report certain
information about mortgage applications and loans in efforts to
create transparency in the mortgage lending process. The final
rule reflects the CFPB's belief ``that the HMDA data must be
updated to address the informational shortcomings exposed by
the financial crisis and to meet the needs of homeowners,
potential homeowners, and neighborhoods throughout the
nation.''\1\
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\1\See 80 FR 66127
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The final rule, among other things, requires covered banks
and credit unions to collect 48 unique data fields on each
mortgage loan they make beginning January 1, 2018--more than
double the number of data fields covered lenders are currently
required to collect and beyond the number of fields statutorily
required by the Dodd-Frank Act.
The cost of compliance for HMDA is so great that many small
banks are considering whether to abandon the mortgage business
all-together. This legislation provides much needed regulatory
relief for smaller institutions if they have originated in each
of the two preceding calendar years fewer than 500 closed-end
mortgage loans, and fewer than 500 open-end lines of credit.
Hearings
The Committee on Financial Services held a hearing
examining matters relating to H.R. 2954 on April 26, 2017, and
April 28, 2017.
Committee Consideration
The Committee on Financial Services met in open session on
October 11, 2017, October 12, 2017, and ordered H.R. 2954 to be
reported favorably to the House as amended by a recorded vote
of 36 yeas to 24 nays (Record vote no. FC-79), a quorum being
present. Before the motion to report was offered, the Committee
adopted an amendment in the nature of a substitute offered by
Mr. Emmer by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. The
sole recorded vote was on a motion by Chairman Hensarling to
report the bill favorably to the as amended. The motion was
agreed to by a recorded vote of 36 yeas to 24 nays (Record vote
no. FC-79), a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee states that H.R. 2954
will amend the Home Mortgage Disclosure Act of 1975 by
providing for a limited exemption from disclosure requirements
for small depository institutions.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, December 5, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services, House of Representatives,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2954, the Home
Mortgage Disclosure Adjustment Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Stephen
Rabent.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 2954--Home Mortgage Disclosure Adjustment Act
Under current law, depository institutions are required to
collect and periodically report to federal financial regulatory
agencies information related to the number and dollar value of
closed-end loans and open-end lines of credit that those
institutions originate or purchase each year.\1\ Depository
institutions now must itemize and disclose that information in
numerous categories. The Consumer Financial Protection Bureau
(CFPB) currently exempts some institutions from reporting
information about closed-end loans or open-end lines of credit
if the number of loans or accounts is below a threshold for
each type of credit instrument. H.R. 2954 would modify the
thresholds to qualify for an exemption from some of the
reporting requirements.
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\1\Closed-end loans, such as mortgages and car loans, are acquired
for a particular purpose and for a set period. Open-end lines of
credit, such as credit card accounts, are not restricted to a specific
use or duration.
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Using information from CFPB, CBO estimates that enacting
H.R. 2954 would cost the agency $1 million over the 2018-2027
period to complete a rulemaking and update its data collection
systems. Those costs are recorded in the budget as direct
spending. Because enacting H.R. 2954 would affect direct
spending, pay-as-you-go procedures apply. Enacting the bill
would not affect revenues.
CBO estimates that enacting H.R. 2954 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2028.
H.R. 2954 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
The CBO staff contact for this estimate is Stephen Rabent.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Federal Mandates Statement
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995.
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of the section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, (115th Congress),
the following statement is made concerning directed
rulemakings: The Committee estimates that the bill requires no
directed rulemakings within the meaning of such section.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section cites H.R. 2954 as the ``Home Mortgage
Disclosure Adjustment Act.''
Section 2. Depository institutions subject to maintenance of records
and disclosure requirements
This section amends the Home Mortgage Disclosure Act of
1975 to exempt a depository institution from maintenance of
mortgage loan records and disclosure requirements: (1) with
respect to closed-end mortgage loans, if the depository
institution originated fewer than 500 such loans in each of the
two preceding years; or (2) with respect to open-end lines of
credit, if the depository institution originated fewer than 500
such lines of credit in each of the two preceding years.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
HOME MORTGAGE DISCLOSURE ACT OF 1975
* * * * * * *
TITLE III--HOME MORTGAGE DISCLOSURE
* * * * * * *
maintenance of records and public disclosure
Sec. 304. (a)(1) Each depository institution which has a home
office or branch office located within a primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas,
as defined by the Department of Commerce shall compile and make
available, in accordance with regulations of the Board, to the
public for inspection and copying at the home office, and at
least one branch office within each primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas
in which the depository institution has an office the number
and total dollar amount of mortgage loans which were (A)
originated (or for which the institution received completed
applications), or (B) purchased by that institution during each
fiscal year (beginning with the last full fiscal year of that
institution which immediately preceded the effective date of
this title).
(2) The information required to be maintained and made
available under paragraph (1) shall also be itemized in order
to clearly and conspicuously disclose the following:
(A) The number and dollar amount for each item
referred to in paragraph (1), by census tracts for
mortgage loans secured by property located within any
county with a population of more than 30,000, within
that primary metropolitan statistical area,
metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas,
otherwise, by county, for mortgage loans secured by
property located within any other county within that
standard metropolitan statistical area.
(B) The number and dollar amount for each item
referred to in paragraph (1) for all such mortgage
loans which are secured by property located outside
that primary metropolitan statistical area,
metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas.
For the purpose of this paragraph, a depository institution
which maintains offices in more than one primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas
shall be required to make the information required by this
paragraph available at any such office only to the extent that
such information relates to mortgage loans which were
originated or purchased (or for which completed applications
were received) by an office of that depository institution
located in the primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas in which the office making such
information available is located. For purposes of this
paragraph, other lending institutions shall be deemed to have a
home office or branch office within a primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas
if such institutions have originated or purchased or received
completed applications for at least 5 mortgage loans in such
area in the preceding calendar year.
(b) Any item of information relating to mortgage loans
required to be maintained under subsection (a) shall be further
itemized in order to disclose for each such item--
(1) the number and dollar amount of mortgage loans
which are insured under title II of the National
Housing Act or under title V of the Housing Act of 1949
or which are guaranteed under chapter 37 of title 38,
United States Code;
(2) the number and dollar amount of mortgage loans
made to mortgagors who did not, at the time of
execution of the mortgage, intend to reside in the
property securing the mortgage loan;
(3) the number and dollar amount of home improvement
loans;
(4) the number and dollar amount of mortgage loans
and completed applications involving mortgagors or
mortgage applicants grouped according to census tract,
income level, racial characteristics, age, and gender;
(5) the number and dollar amount of mortgage loans
grouped according to measurements of--
(A) the total points and fees payable at
origination in connection with the mortgage as
determined by the Bureau, taking into account
15 U.S.C. 1602(aa)(4);
(B) the difference between the annual
percentage rate associated with the loan and a
benchmark rate or rates for all loans;
(C) the term in months of any prepayment
penalty or other fee or charge payable on
repayment of some portion of principal or the
entire principal in advance of scheduled
payments; and
(D) such other information as the Bureau may
require; and
(6) the number and dollar amount of mortgage loans
and completed applications grouped according to
measurements of--
(A) the value of the real property pledged or
proposed to be pledged as collateral;
(B) the actual or proposed term in months of
any introductory period after which the rate of
interest may change;
(C) the presence of contractual terms or
proposed contractual terms that would allow the
mortgagor or applicant to make payments other
than fully amortizing payments during any
portion of the loan term;
(D) the actual or proposed term in months of
the mortgage loan;
(E) the channel through which application was
made, including retail, broker, and other
relevant categories;
(F) as the Bureau may determine to be
appropriate, a unique identifier that
identifies the loan originator as set forth in
section 1503 of the S.A.F.E. Mortgage Licensing
Act of 2008;
(G) as the Bureau may determine to be
appropriate, a universal loan identifier;
(H) as the Bureau may determine to be
appropriate, the parcel number that corresponds
to the real property pledged or proposed to be
pledged as collateral;
(I) the credit score of mortgage applicants
and mortgagors, in such form as the Bureau may
prescribe; and
(J) such other information as the Bureau may
require.
(c) Any information required to be compiled and made
available under this section, other than loan application
register information under subsection (j), shall be maintained
and made available for a period of five years after the close
of the first year during which such information is required to
be maintained and made available.
(d) Notwithstanding the provisions of subsection (a)(1), data
required to be disclosed under this section for 1980 and
thereafter shall be disclosed for each calendar year. Any
depository institution which is required to make disclosures
under this section but which has been making disclosures on
some basis other than a calendar year basis shall make
available a separate disclosure statement containing data for
any period prior to calendar year 1980 which is not covered by
the last full year report prior to the 1980 calendar year
report.
(e) Subject to subsection (h), the Bureau shall prescribe a
standard format for the disclosures required under this
section.
(f) The Federal Financial Institutions Examination Council,
in consultation with the Secretary, shall implement a system to
facilitate access to data required to be disclosed under this
section. Such system shall include arrangements for a central
depository of data in each primary metropolitan statistical
area, metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas. Disclosure
statements shall be made available to the public for inspection
and copying at such central depository of data for all
depository institutions which are required to disclose
information under this section (or which are exempted pursuant
to section 306(b)) and which have a home office or branch
office within such primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas.
(g) The requirements of subsections (a) and (b) shall not
apply with respect to mortgage loans that are--
(1) made (or for which completed applications are
received) by any mortgage banking subsidiary of a bank
holding company or savings and loan holding company or
by any savings and loan service corporation that
originates or purchases mortgage loans; and
(2) approved (or for which completed applications are
received) by the Secretary for insurance under title I
or II of the National Housing Act.
(h) Submission to Agencies.--
(1) In general.--The data required to be disclosed
under subsection (b) shall be submitted to the Bureau
or to the appropriate agency for the institution
reporting under this title, in accordance with rules
prescribed by the Bureau. Notwithstanding the
requirement of subsection (a)(2)(A) for disclosure by
census tract, the Bureau, in consultation with other
appropriate agencies described in paragraph (2) and,
after notice and comment, shall develop regulations
that--
(A) prescribe the format for such
disclosures, the method for submission of the
data to the appropriate agency, and the
procedures for disclosing the information to
the public;
(B) require the collection of data required
to be disclosed under subsection (b) with
respect to loans sold by each institution
reporting under this title;
(C) require disclosure of the class of the
purchaser of such loans;
(D) permit any reporting institution to
submit in writing to the Bureau or to the
appropriate agency such additional data or
explanations as it deems relevant to the
decision to originate or purchase mortgage
loans; and
(E) modify or require modification of
itemized information, for the purpose of
protecting the privacy interests of the
mortgage applicants or mortgagors, that is or
will be available to the public.
(2) Other appropriate agencies.--The appropriate
agencies described in this paragraph are--
(A) the appropriate Federal banking agencies,
as defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)), with
respect to the entities that are subject to the
jurisdiction of each such agency, respectively;
(B) the Federal Deposit Insurance Corporation
for banks insured by the Federal Deposit
Insurance Corporation (other than members of
the Federal Reserve System), mutual savings
banks, insured State branches of foreign banks,
and any other depository institution described
in section 303(2)(A) which is not otherwise
referred to in this paragraph;
(C) the National Credit Union Administration
Board with respect to credit unions; and
(D) the Secretary of Housing and Urban
Development with respect to other lending
institutions not regulated by the agencies
referred to in subparagraph (A) or (B).
(3) Rules for modifications under paragraph (1).--
(A) Application.--A modification under
paragraph (1)(E) shall apply to information
concerning--
(i) credit score data described in
subsection (b)(6)(I), in a manner that
is consistent with the purpose
described in paragraph (1)(E); and
(ii) age or any other category of
data described in paragraph (5) or (6)
of subsection (b), as the Bureau
determines to be necessary to satisfy
the purpose described in paragraph
(1)(E), and in a manner consistent with
that purpose.
(B) Standards.--The Bureau shall prescribe
standards for any modification under paragraph
(1)(E) to effectuate the purposes of this
title, in light of the privacy interests of
mortgage applicants or mortgagors. Where
necessary to protect the privacy interests of
mortgage applicants or mortgagors, the Bureau
shall provide for the disclosure of information
described in subparagraph (A) in aggregate or
other reasonably modified form, in order to
effectuate the purposes of this title.
(i) Exemptions.--
(1) Closed-end mortgage loans.--With respect to a
depository institution, the requirements of paragraphs
(5) and (6) of subsection (b) shall not apply with
respect to closed-end mortgage loans if the depository
institution originated less than 500 closed-end
mortgage loans in each of the 2 preceding calendar
years.
(2) Open-end lines of credit.--With respect to a
depository institution, the requirements of paragraphs
(5) and (6) of subsection (b) shall not apply with
respect to open-end lines of credit if the depository
institution originated less than 500 open-end lines of
credit in each of the 2 preceding calendar years.
[(i)] (3) Exemption from certain disclosure
requirements.--The requirements of subsections (b)(4),
(b)(5), and (b)(6) shall not apply with respect to any
depository institution described in [section 303(2)(A)]
section 303(3)(A) which has total assets, as of the
most recent full fiscal year of such institution, of
$30,000,000 or less.
(j) Loan Application Register Information.--
(1) In general.--In addition to the information
required to be disclosed under subsections (a) and (b),
any depository institution which is required to make
disclosures under this section shall make available to
the public, upon request, loan application register
information (as defined by the Bureau by regulation) in
the form required under regulations prescribed by the
Board.
(2) Format of disclosure.--
(A) Unedited format.--Subject to subparagraph
(B), the loan application register information
described in paragraph (1) may be disclosed by
a depository institution without editing or
compilation and in such formats as the Bureau
may require.
(B) Protection of applicant's privacy
interest.--The Bureau shall require, by
regulation, such deletions as the Bureau may
determine to be appropriate to protect--
(i) any privacy interest of any
applicant, including the deletion of
the applicant's name and identification
number, the date of the application,
and the date of any determination by
the institution with respect to such
application; and
(ii) a depository institution from
liability under any Federal or State
privacy law.
(C) Census tract format encouraged.--It is
the sense of the Congress that a depository
institution should provide loan register
information under this section in a format
based on the census tract in which the property
is located.
(3) Change of form not required.--A depository
institution meets the disclosure requirement of
paragraph (1) if the institution provides the
information required under such paragraph in such
formats as the Bureau may require
(4) Reasonable charge for information.--Any
depository institution which provides information under
this subsection may impose a reasonable fee for any
cost incurred in reproducing such information.
(5) Time of disclosure.--The disclosure of the loan
application register information described in paragraph
(1) for any year pursuant to a request under paragraph
(1) shall be made--
(A) in the case of a request made on or
before March 1 of the succeeding year, before
April 1 of the succeeding year; and
(B) in the case of a request made after March
1 of the succeeding year, before the end of the
30-day period beginning on the date the request
is made.
(6) Retention of information.--Notwithstanding
subsection (c), the loan application register
information described in paragraph (1) for any year
shall be maintained and made available, upon request,
for 3 years after the close of the 1st year during
which such information is required to be maintained and
made available.
(7) Minimizing compliance costs.--In prescribing
regulations under this subsection, the Bureau shall
make every effort to minimize the costs incurred by a
depository institution in complying with this
subsection and such regulations.
(k) Disclosure of Statements by Depository Institutions.--
(1) In general.--In accordance with procedures
established by the Bureau pursuant to this section, any
depository institution required to make disclosures
under this section--
(A) shall make a disclosure statement
available, upon request, to the public no later
than 3 business days after the institution
receives the statement from the Federal
Financial Institutions Examination Council; and
(B) may make such statement available on a
floppy disc which may be used with a personal
computer or in any other media which is not
prohibited under regulations prescribed by the
Board.
(2) Notice that data is subject to correction after
final review.--Any disclosure statement provided
pursuant to paragraph (1) shall be accompanied by a
clear and conspicuous notice that the statement is
subject to final review and revision, if necessary.
(3) Reasonable charge for information.--Any
depository institution which provides a disclosure
statement pursuant to paragraph (1) may impose a
reasonable fee for any cost incurred in providing or
reproducing such statement.
(l) Prompt Disclosures.--
(1) In general.--Any disclosure of information
pursuant to this section or section 310 shall be made
as promptly as possible.
(2) Maximum disclosure period.--
(A) 6- and 9-month maximum periods.--Except
as provided in subsections (j)(5) and (k)(1)
and regulations prescribed by the Bureau and
subject to subparagraph (B), any information
required to be disclosed for any year beginning
after December 31, 1992, under--
(i) this section shall be made
available to the public before
September 1 of the succeeding year; and
(ii) section 310 shall be made
available to the public before December
1 of the succeeding year.
(B) Shorter periods encouraged after 1994.--
With respect to disclosures of information
under this section or section 310 for any year
beginning after December 31, 1993, every effort
shall be made--
(i) to make information disclosed
under this section available to the
public before July 1 of the succeeding
year; and
(ii) to make information required to
be disclosed under section 310
available to the public before
September 1 of the succeeding year.
(3) Improved procedure.--The Federal Financial
Institutions Examination Council shall make such
changes in the system established pursuant to
subsection (f) as may be necessary to carry out the
requirements of this subsection.
(m) Opportunity To Reduce Compliance Burden.--
(1) In general.--
(A) Satisfaction of public availability
requirements.--A depository institution shall
be deemed to have satisfied the public
availability requirements of subsection (a) if
the institution compiles the information
required under that subsection at the home
office of the institution and provides notice
at the branch locations specified in subsection
(a) that such information is available from the
home office of the institution upon written
request.
(B) Provision of information upon request.--
Not later than 15 days after the receipt of a
written request for any information required to
be compiled under subsection (a), the home
office of the depository institution receiving
the request shall provide the information
pertinent to the location of the branch in
question to the person requesting the
information.
(2) Form of information.--In complying with paragraph
(1), a depository institution shall provide the person
requesting the information with a copy of the
information requested in such formats as the Bureau may
require.
(n) Timing of Certain Disclosures.--The data required to be
disclosed under subsection (b) shall be submitted to the Bureau
or to the appropriate agency for any institution reporting
under this title, in accordance with regulations prescribed by
the Bureau. Institutions shall not be required to report new
data under paragraph (5) or (6) of subsection (b) before the
first January 1 that occurs after the end of the 9-month period
beginning on the date on which regulations are issued by the
Bureau in final form with respect to such disclosures.
* * * * * * *
MINORITY VIEWS
H.R. 2954, as amended, would harm efforts to identify and
stop discriminatory lending and violations of fair housing
laws, as well as the ability to understand lending patterns and
trends. The bill exempts covered institutions from certain
records and disclosure requirements related to mortgage lending
under the Home Mortgage Disclosure Act (HMDA). Specifically,
the bill would exempt from certain HMDA requirements,
institutions that originate 500 or fewer closed-end loans, in
each of the two preceding calendar years as well as
institutions that originate 500 or fewer open-ended loans, in
each of the two preceding calendar years. In addition, the bill
would lessen requirements for depository institutions to
itemize and disclose specified mortgage loan data.
Congress originally enacted HMDA in 1975, after finding
that some depository institutions contributed to the decline of
certain geographic areas by their failure to meet the housing
and credit needs of the neighborhoods and communities that they
were responsible for serving. HMDA provides important
information to enable public officials to monitor mortgage
lending patterns and trends, to identify underserved
communities and populations, and to combat discriminatory
lending by mortgage creditors. We believe that H.R. 2954
undermines this statutory purpose.
The Consumer Financial Protection Bureau (Consumer Bureau),
which is the entity responsible for implementing HMDA since the
enactment of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), has been mindful to achieve
the right balance between the need for more robust mortgage
data and the burdens imposed on industry in collecting and
reporting the information. The Consumer Bureau issued a final
rule in October 2015 but, in response to concerns raised by
community banks and credit unions, adjusted the reporting
thresholds for open-end mortgage loans in an updated rule,
which was issued in August 2017. H.R. 2954 would prevent the
Consumer Bureau from having the discretion to adjust the
reporting thresholds and data fields going forward.
Furthermore, while H.R. 2954 would codify the same reporting
threshold for open-ended lines of credit currently contained in
the Consumer Bureau's final rule--500 open-end loan
originations--the Consumer Bureau's change is only a temporary
adjustment for reporting thresholds in 2018 and 2019 designed
to give the Bureau additional time to determine whether a
permanent adjustment is warranted. The Consumer Bureau is still
in the best position to conduct the research necessary to
determine what the appropriate thresholds should be for open-
end loans, and that it would be premature to codify that level
at this time.
The bill could also eliminate important mortgage data about
lending patterns and trends in this country, particularly in
certain low- and moderate-income communities. H.R. 2954 raises
the reporting requirement threshold for closed-ended lines of
credit from the 25 originations currently required by the
Consumer Bureau's final rule to 500 loans. This would exempt a
vast majority of the nation's mortgage lenders from HMDA
reporting requirements on closed-end mortgages. The benefits of
HMDA data, and other tools to help the enforcement of federal
fair lending laws, are too great to permanently exempt classes
of institutions or volumes of loans reporting mortgage lending
data.
For these reasons, we oppose H.R. 2954.
Maxine Waters.
Nydia M. Velazquez.
Wm. Lacy Clay.
Al Green (TX).
Gwen Moore.
Juan Vargas.
Keith Ellison.
Charlie Crist.
Gregory Meeks.
Carolyn B. Maloney.
Emanuel Cleaver.
[all]