NY AG Opposes CFPB Proposed Amendments to HMDA Reporting Requirements

New York Attorney General Letitia James opposed CFPB proposals to increase reporting thresholds and/or reduce transparency under the Home Mortgage Disclosure Act.

As previously covered, the CFPB proposed raising the reporting data threshold for closed-end mortgage loans and open-end lines of credit under the Home Mortgage Disclosure Act ("HMDA") rules. The proposal is designed to provide relief to smaller lenders and clarify certain exemptions pursuant to the Economic Growth Regulatory Relief, and Consumer Protection Act. In addition, the CFPB proposed a rule concerning certain data reporting points under the HMDA to reduce costs.

In comment letters responding to the proposed rules, Ms. James opposed the proposal concerning the reporting data threshold because it would (i) hinder the ability of law enforcement at all levels to guarantee fair mortgage lending and (ii) violate the Administrative Procedure Act. According to Ms. James, the proposal would allow lending institutions to conceal "essential" data from the public and subject communities who historically have been discriminated against to unfair mortgage lending practices.

In the second comment letter, Ms. James criticized the proposal to reduce transparency under HMDA provisions concerning both (i) reporting requirements and (ii) commercial and multifamily lending. She stated that the HMDA reporting requirements help law enforcement prevent discriminatory mortgage lending practices. Additionally, she said that transparency concerning commercial and multifamily lending helps provide affordable housing that is relied upon by "millions of Americans."