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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.

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The Home Mortgage Disclosure Act (HMDA) requires mortgage lenders to collect and report information on specific data points pertaining to their lending practices. As applied by the CFPB, HMDA reporting rules apply to multifamily, as well as single-family, mortgage loans.

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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

Related Resource

CFPB HMDA compliance resources page

 

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