Home Mortgage Disclosure Act (HMDA) and Multifamily Lending
The CFPB should amend HMDA regulations (Regulation C) to exempt business-to-business loans secured by multifamily property.
UPDATE: U.S. District Court for the District of Columbia Ruling on HMDA Reporting
In October 2022, the U.S. District Court for the District of Columbia ruled that the U.S. Home Mortgage Disclosure Act (HMDA) reporting threshold should be decreased from 100 closed-end loans to 25 closed-end loans.
As a result of this ruling, only institutions originating fewer than 25 closed-end mortgage loans in each of the two preceding calendar years are exempt from HMDA reporting. Effective immediately, institutions that were previously exempt from reporting with loan volume in a range of 25 loans to 99 loans in each of the preceding two calendar years are now subject to HMDA reporting. Banks, credit unions, and savings institutions with less than $50,000,000 in total assets remain exempt from HMDA regardless of loan origination volume.
The CFPB, in a blog posted in December 2022, stated that it does not plan to “initiate enforcement actions
or cite HMDA violations for failures to report closed-end mortgage data collected in 2022, 2021, and 2020” for covered institutions that originated at least 25 closed-end loans, but less than 100 closed-end loans in each of the previous
two calendar years.
Read a detailed MBA summary of the court ruling. MBA will keep members informed on all relevant updates. For more information, please contact Megan Booth at (202) 557-2740.
Recent MBA Activity Related to HMDA and Multifamily Lending
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MBA Summary: U.S. District Court for the District of Columbia National Community Reinvestment Coalition, et al. vs. CFPB
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MBA Coalition Letter to CFPB on HMDA ANPR on Coverage of Business-to-Business Multifamily Loans
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MBA Coalition Letter to CFPB on HMDA NPRM Supplemental Comment on Effective Date
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MBA Coalition Letter on HMDA to the Consumer Financial Protection Bureau
Related MBA Events
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Commercial Real Estate Basics: Introduction to Commercial/Multifamily Real Estate: January 2025: On Demand
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Managing Rising Insurance Risks in Commercial Lending
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Commercial/Multifamily: Fundamentals of Commercial Insurance Issues and Problems
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Navigating and Ensuring Accurate Reporting with the MBA Commercial and Multifamily Inspection Form
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CREF Career Conversations: Insights from Industry Leaders
