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CFPB adjusts HMDA data collection and TILA mortgage escrow thresholds

Posted in Mortgages

In notices published in yesterday’s Federal Register, the CFPB adjusted the thresholds of the asset-size exemptions for collecting HMDA data and establishing an escrow account for certain mortgage loans under TILA.

Pursuant to Regulation C, which implements HMDA, depository institutions with assets below an annually adjusted threshold are exempt from HMDA data collection requirements. In its notice, the CFPB increased the 2013 threshold of $42 million to $43 million for 2014.  Thus, depository institutions with assets of $43 million or less as of
December 31, 2013 will be exempt from collecting HMDA data in 2014.  (An institution’s exemption from collecting data in 2014 does not affect its duty to report data it was required to collect in 2013.)

Regulation Z, which implements TILA, requires creditors to establish an escrow account to pay property taxes and insurance premiums for certain first-lien higher-priced mortgages.  The rule contains an exemption for creditors that operate predominantly in rural or underserved areas that meet certain other criteria, including an annually adjusted asset-size threshold.   In its notice, the CFPB increased the 2013 threshold from $2 billion to $2.028 billion for 2014.  Thus, loans made by creditors with assets of less than $2.028 billion on
December 31, 2013 that operate predominantly in rural or underserved areas and meet the other exemption criteria will be exempt in 2014 from the TILA escrow account requirement for higher-priced mortgage loans.