2018 HMDA FAQ: CRA Public File and Branch Disclosures

1/22/2018 - By Sarah Oliver, CRCM

Questions regarding the impact of the new HMDA regulation have been top of mind for our clients. Specifically, many of you have asked how the regulation affects CRA public file and branch disclosures.

"If the financial institution reported 2016 data, but not 2017 data, should we still use the new, model branch notices or no notice at all? What about keeping copies of HMDA disclosure statements in our CRA Public File?"

Answers

The Consumer Financial Protection Bureau (Bureau) has institutional data available on its website beginning with 2007 data, however it does not offer copies of previous years’ disclosure statements as prepared by the FFIEC. As applicable, keep copies of the previous two calendar year disclosure statements in your CRA Public File for data reported in or before 2017. The Bureau's HMDA Small Entity Compliance Guide states “the revised disclosure requirements are effective January 1, 2018 and apply to data collected on or after January 1, 2017 and reported in or after 2018.” Since it isn’t clear what becomes of the previously required branch HMDA notices, it is our opinion that you should use the new model notices for information reported in prior years until the time runs out (i.e. either three or five years from the last year that data was collected and reported, depending on which notice you are asking about). We have summarized the new notice requirements below:

New Notice Requirements

Effective 1/1/18: no later than 3 business days after receiving notice of availability from the FFIEC, you should make available in each branch located within an MSA/MD:

Written notice that clearly conveys that the institution's disclosure statement may be obtained on the Bureau's Web site. Sample notice @ 12 CFR 1003.5(b)(2); comment 5(b)-3. Must be available for a period of 5 years.
Written notice that clearly conveys that the institution's LAR, as modified by the Bureau to protect applicant and borrower privacy, may be obtained on the Bureau's Web site. Sample notice @ 12 CFR 1003.5(c); comment 5(c)-2. Must be available for a period of 3 years.

PLEASE NOTE: You may use the same notice to satisfy the requirements of both bullet points above.

Effective 1/1/18: you must post a general notice about the availability of its HMDA data in each branch located within an MSA/MD:

Information contained in the sample notice @ 12 CFR 1003.5(e); comment 5(e)-1.

From the regulation and small entity guide:

Sample notice that can be provided to members of the public upon request to satisfy § 1003.5(b)(2) and (c). The following language is suggested, but is not required.

Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age and income of applicants and borrowers; and information about loan approvals and denials. These data are available online at the Consumer Financial Protection Bureau’s Web site (www.consumerfinance.gov/hmda). HMDA data for many other financial institutions are also available at this Web site.

Sample posted notice that can be used to satisfy § 1003.5(e) and inform the public of availability of HMDA data. The following language is suggested, but is not required.

Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age and income of applicants and borrowers; and information about loan approvals and denials. HMDA data for many other financial institutions are also available online. For more information, visit the Consumer Financial Protection Bureau’s Web site (www.consumerfinance.gov/hmda).

Preparing for the 2018 HMDA changes can seem overwhelming. If you have any questions or concerns about these or other issues, email me or any member of our Financial Institutions Consulting Team.

About the Author | Sarah Oliver, CRCM

Sarah is a consultant in the Financial Institutions Advisory Group of Saltmarsh, Cleaveland & Gund. Her primary areas of expertise include providing compliance reviews, assisting with special research matters and consulting on deposit and lending related regulations as well as social media approaches for financial institutions.

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