Last week, the CFPB amended the requirements of Regulation C (Home Mortgage Disclosure Act) to reflect the asset-size exemption threshold for banks. The exemption threshold is adjusted to $48 million from $47 million. Therefore, banks with assets of $48 million or less as of December 31, 2020, are exempt from collecting HMDA data in 2021.

The CFPB also amended Regulation Z (Truth in Lending Act) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan. The exemption threshold is adjusted to $2.230 billion from $2.202 billion. Therefore, creditors with assets of less than $2.230 billion (including assets of certain affiliates) as of December 31, 2020, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2021.

Both HMDA and TILA adjustments are effective January 1, 2021.

You can access the HMDA Final Rule here.

You can access the TILA Final Rule here.

For real estate lending compliance related questions, be sure to reach out to CCI.

Sincerely,

Sarah Smith, CRCM, CAFP