2015 Rule – Between January 1, 2017, and December 31, 2017, what criteria should a bank, savings association, or credit union measure to determine whether it is subject to Regulation C?

Compliance > Regulation C - HMDA > CFPB
Q:  Between January 1, 2017, and December 31, 2017, what criteria should a bank, savings association, or credit union measure to determine whether it is subject to Regulation C?
 
A:    Under the 2015 HMDA Rule, between January 1, 2017 and December 31, 2017, a bank, savings association, or credit union is subject to Regulation C if it meets ALL3 of the following:
 
1.   Asset-Size Threshold. On December 31, 2016, the bank, savings association, or credit union had assets in excess of the asset-size threshold published annually in the Federal Register and posted on the Bureau’s website. 12 CFR 1003.2 (financial institution)(1)(i); comment (financial institution)-2.
 
2.   Location Test. On December 31, 2016, the bank, savings association, or credit union had a home or branch office located in a metropolitan statistical area (MSA). 12 CFR 1003.2(financial institution)(1)(ii).
 
The U.S. Office of Management and Budget (OMB) defines MSAs. For more information on MSAs, see https://www.ffiec.gov/census/default.aspx and https://www.ffiec.gov/geocode/help1.aspx.
 
3.   Loan Activity Test. During 2016, the bank, savings association, or credit union originated at least one home purchase loan (including a refinancing of a home purchase loan) secured by a first lien on a one-to-four-family dwelling. 12 CFR 1003.2 (financial institution)(1)(iii).
 
4.   Federally Related Test. The bank, savings association, or credit union:
a. Is federally insured; or
b. Is federally regulated; or
c. Originated a home purchase loan (including a refinancing of a home purchase loan) that was secured by a first lien on a one-to-four-family dwelling and that also (i) was insured, guaranteed, or supplemented by a Federal agency OR (ii) was intended for sale to Fannie Mae or Freddie Mac. 12 CFR 1003.2 (financial institution)(1)(iv).
 
5.   Loan-Volume Threshold. In each of the two preceding calendar years, the bank, savings association, or credit union originated at least 25 home purchase loans (including refinancings of home purchase loans). Coverage depends on the number of home purchase loans (including refinancings of home purchase loans) that the bank, savings association, or credit union originated. To determine whether activities with respect to a particular loan constitute an origination, see the official commentary effective in 2017, including comments 1(c)-2 through -6 and 4(a)-1.iii and -1.iv.
 
 
3  When determining whether it meets these criteria for 2017, a bank, savings association, or credit union relies on the definitions in the version of Regulation C effective in 2017. For example, a bank, saving association, or credit union uses the definition of “branch office” and “home purchase loan” in the version of Regulation C effective in 2017.  
 
 
ADDITIONAL INFORMATION:
This information was obtained from the CFPB’s Home Mortgage Disclosure (Regulation C) Small Entity Compliance Guide, which may be accessed here: http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/hmda-implementation/
 

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