The House on Thursday passed legislation that would exempt many credit unions from certain reporting requirements under the Home Mortgage Disclosure Act.
Voting 243-184, the House passed H.R. 2954, which would increase the threshold that triggers HMDA disclosures to 1,000 closed-end and 2,000 open-end mortgages.
The current standard is current threshold is 25.
Credit union trade groups supported the legislation.
In pushing the bill, Republicans emphasized that the legislation would ease the regulatory burdens that financial institutions face.
“Community banks and credit unions are weighed down with the same compliance burdens as larger institutions, without the advantages of massive compliance departments,” said Rep. Scott Tipton (R-Colo.).
House Financial Services Chairman Jeb Hensarling (R-Texas) blamed the CFPB for increasing the burden and said the agency went beyond what Dodd-Frank mandated.
“But like many things the CFPB is involved in, the rule went far, far beyond what was originally intended by Congress, and effects have far-reaching and negative consequences on community financial institutions and home buyers,” he said.
However, Financial Services ranking member Maxine Waters (D-Calif.) said the data being collected is crucial.
“HMDA data provide information on mortgage lending patterns and trends that allow regulators, lenders, researchers, and the public to better understand and address redlining concerns by identifying possible discriminatory lending patterns, and monitoring compliance with and enforcement of statutes, like the Community Reinvestment Act; and Federal antidiscrimination laws, like the Equal Credit Opportunity Act and the Fair Housing Act,” she said.
Credit union trade groups applauded passage of the legislation.
“HMDA’s expanded reporting requirements have caused credit unions to incur substantial costs to comply, and we appreciate Congress’ work to decrease these compliance costs,” said NAFCU President/CEO B. Dan Berger.
CUNA President/CEO Jim Nussle agreed.
“Revised HMDA reporting requirements add to compliance costs for credit unions, and legislation like this would make it easier for credit unions to remain in the mortgage market which will ultimately benefit American consumers,” he said.
