2020 HMDA Final Rule Partially Vacated: Closed-End Loan Reporting Threshold Lowered

In 2020 the Consumer Financial Protection Bureau (CFPB) issued a final Home Mortgage Disclosure Act (HMDA) rule amending Regulation C to raise institutional and transactional coverage thresholds for closed-end mortgage loans and open-end lines of credit. The final rule raised the threshold to report closed-end mortgage loans from 25 to 100 originated loans in the previous two years.

On Sept. 23, 2022, the United States District Court for the District of Columbia issued a decision invalidating the change for closed-end mortgage loan reporting finding the CFPB’s justification for the increased loan-volume reporting threshold to be “arbitrary and capricious.” The decision left the increased threshold for open-end lines of credit unchanged. On December 6, the CFPB released a blog post announcing the change to its closed-end loan reporting threshold back to its 2015 level.