Reporting and disclosure
Jonathan Foxx is president and managing director of Lenders Compliance Group, Brokers Compliance Group, Servicers Compliance Group and Vendors Compliance Group, national companies devoted to providing regulatory compliance advice and counsel to the mortgage industry. He may be contacted by phone at (516) 442-3456, by e-mail at JFoxx@LendersComplianceGroup.com or visit LendersComplianceGroup.com.
A Message From MAA Chairman Fowler Williams y name is Fowler Williams, and I am president of Crescent Mortgage in Atlanta. I am honored to serve as chairman of the Mortgage Action Alliance (MAA). We are a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA). MAA is dedicated to strengthening the industry’s voice and lobbying power in Washington, D.C. and state capitals across America. Recently, MAA launched a new grassroots advocacy action center designed to help people better engage policymakers and stay informed about key policy and regulatory decisions regarding the real estate finance industry. MBA’s Senior Vice President of Legislative and Political Affairs Bill Killmer said that “The MBA believes this new action center will bolster our ability to engage policymakers and regulators about the issues affecting our industry. With more than 10,000 members, the Mortgage Action Alliance is an invaluable piece of MBA’s advocacy efforts and we intend to continue to grow and activate its membership as we face ongoing challenges.” Specifically, the new grassroots action center will include an easy to use Call to Action platform, legislative tracking capabilities, a key contact survey and other features that easily connect MAA members with their elected offi- 77 cials. The new Advocacy Action Center can be found online at Action.MBA.org. Getting involved with MAA allows industry professionals to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of the MBA to enroll. The larger the group, the louder the voice! If you would like to run an MAA campaign, please contact Peter Shapiro at (202) 557-2933 or e-mail firstname.lastname@example.org to receive an enrollment campaign kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs. Real estate finance industry professionals who wish to join or learn more about MAA can do so at MortgageActionAlliance.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Director of Political Affairs Annie Gawkowski at (202) 557-2816 or e-mail email@example.com.
Fowler Williams is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage. He may be reached by phone at (800) 851-0263 or e-mail firstname.lastname@example.org.
n National Mortgage Professional Magazine n DECEMBER 2015
Footnotes 1—On Oct. 15, 2015, the CFPB released a final rule amending Regulation C, 12 C.F.R Part 1003, the implementing regulation of the Home Mortgage Disclosure Act. Published in the Federal Register on Oct. 28, 2015. 2—On Jan. 1, 2019, additional amendments related to electronic data submission and public disclosures become effective Jan. 1, 2019. Also, institutions will report the data collected under the new requirements by March 1, 2019. On Jan. 1, 2020, quarterly reporting begins for large-volume lenders as of the first quarter of 2020. The first data under the new reporting schedule must be reported by May 30, 2020. 3—Beginning in 2020, institutions with a combined total of 60,000 or more loan originations and applications will be required to report HMDA data on a quarterly basis. For the first three quarters of each year, these large-volume institutions must report the required data within 60 calendar days of the relevant quarter’s end. The first submission (for the first quarter of 2020) will be due on May 30, 2020. Fourth quarter data will be submitted with the annual submission, which will continue to be due by March 1 of the following year. 4—FFIEC examination guidance for depository institutions already mandates this practice. 5—May be revised 6—Metropolitan Statistical Area. 7—The terms “closed-end mortgage loan” and “open-end line of credit” are defined as part of the new transactional coverage criteria, which also become effective on Jan. 1, 2018. Covered open-end lines of credit by definition are secured by a dwelling. 8—Op. cit. 3. 9—Not every data point is collected for every application or origination. 10—12 C.F.R. §§ 1026.19(e)(3)(iv), (e)(4). 11—See ConsumerFinance.gov/HMDA. 12—Home Mortgage Disclosure (Regulation C), Small Entity Compliance Guide, Consumer Financial Protection Bureau, Dec. 2, 2015. 13—Idem, p. 6. 14—See ConsumerFinance.gov/Regulatory-Implementation/HMDA.
MBA’s Mortgage Action Alliance
A new electronic submission portal will be introduced soon by the Bureau. There is a Web site landing page for it on the Bureau’s Web site, although it is not yet functional.11 This portal will be the new way in which the HMDA-LAR will be sent to the Bureau. Guidance on how to complete the current HMDA-LAR will be deleted, effective Jan. 1, 2019. New instructions will be integrated into the electronic submission portal beginning in 2019. In addition, public access disclosure for 2017 and beyond will be available at the Bureau’s Web site. Where institutions are required to maintain their modified HMDA-LAR on their premises, the Bureau will require the filers to send consumers and interested others to the Bureau’s own online database. As to the public database itself, the Bureau has not yet announced what information and data sets will be made public from the amended Regulation C filings. Apparently, the Bureau is contemplating a tiered approach to providing public access, such as access to the general public, the press, researchers, academics, consultants, and so forth. Exactly which data sets will be made available to the public and on what basis will soon be the subject of an elicited response from the public. As I mentioned at the outset, the amended Regulation C may be viewed as a new tool in the maintaining of fair lending initiatives. The Bureau’s enforcement actions make it abundantly clear that HMDA data is and will continue to be intrinsic to fair lending compliance. The use of enforcement orders in reviewing HMDA compliance, along with many new reporting obligations, will amplify regulatory risks for HMDA filers. The obtained data can be expected to form the basis for increased legal and regulatory scrutiny with respect to fair lending requirements. Institutions will also need to be prepared to devote additional and supplementary resources to evaluating potential fair lending matters, particularly where they will be reporting data on a quarterly basis. On Dec. 1, 2015, the Bureau issued a guide, entitled Home Mortgage Disclosure (Regulation C) Small Entity Compliance Guide (Guide).12 According to the Guide, its purpose is to provide “an easy-to-use summary of Regulation C, as amended by the 2015 HMDA Rule, and to highlight information that financial institutions and those that work with them might find helpful when implementing the 2015 HMDA Rule.”13 In addition to the Guide, the Bureau has a Web site devoted to HMDA compliance support.14 Although you may want to read the 797-page Rule itself, at this time the Bureau’s Web site contains useful information and documentation on the Home Mortgage Disclosure Act rule (Federal Register); a HMDA Executive Summary (an overview of changes to the HMDA rule issued Oct. 15, 2015); HMDA Key Dates Timeline (an overview of the effective dates for different elements of the rule); a HMDA Compliance Guide (a guide to the new rule which makes the content “more accessible for industry constituents, especially smaller businesses with limited legal and compliance staff”); a template for Reporting “Not Applicable” (a reference tool on when to report data as not applicable); a Summary of Reportable Data (a reference tool for HMDA data required to be collected, recorded, and reported); and, a HMDA Institutional Coverage Chart (entities covered for 2017 and 2018).