OCC Bulletin 2023-5 | February 1, 2023

Home Mortgage Disclosure Act: Loan Origination Threshold Changes

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) is issuing this bulletin to inform banks¹ and OCC examining personnel that the loan origination threshold for reporting Home Mortgage Disclosure Act (HMDA) data on closed-end mortgage loans has changed. Due to a recent court decision, the threshold for reporting is now 25 closed-end mortgage loans originated in each of the two preceding calendar years.

Note for Community Banks

This bulletin applies to community banks that are subject to HMDA data collection and reporting requirements.

Highlights

Banks that originated at least 25 closed-end mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years (referred to collectively as affected banks) may need to make adjustments to policies and procedures to comply with reporting obligations. These changes may require time to implement.
The OCC does not intend to assess penalties for failures to report closed-end mortgage loan data on reportable transactions conducted in 2022, 2021, or 2020 for affected banks that meet Regulation C’s other coverage requirements.
Examinations conducted in affected banks regarding HMDA reportable transactions from 2022, 2021, or 2020 will be diagnostic to help banks identify compliance weaknesses.
Collection and submission of 2023 HMDA data will provide affected banks with an opportunity to identify gaps in and make improvements to their HMDA compliance management systems.

Background

On September 23, 2022, the U.S. District Court for the District of Columbia issued an order² vacating the 2020 HMDA Final Rule as to the loan volume reporting threshold for closed-end mortgage loans. As a result, the loan origination threshold for reporting HMDA data on closed-end mortgage loans reverted to the threshold established by the 2015 HMDA Final Rule. Banks that originate at least 25 closed-end mortgage loans in each of the two preceding calendar years (25-loan threshold) are subject to HMDA data collection and reporting requirements. This is a change to the 100-loan threshold set by the 2020 HMDA Final Rule.

Further Information

For information on the OCC’s HMDA examination policies, please contact Vonda Eanes, Director for Community Reinvestment Act and Fair Lending Policy, Compliance Risk Policy Division, at (202) 649-5470.

The Consumer Financial Protection Bureau is responsible for implementing the HMDA. For more information on the threshold changes, please refer to the link below or contact the Consumer Financial Protection Bureau by visiting https://www.consumerfinance.gov/about-us/contact-us/.

Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy