Home Mortgage Disclosure Adjustment Act (HMDA) Passes House on Partisan Vote

The federal government is now requiring lenders to give borrowers detailed information about their home mortgages. The "Home Mortgage Disclosure Adjustment Act" was passed by the House on a partisan vote. Among the Republican representatives, Rep. Tom Emmer of Minnesota's Sixth Congressional District voted in favor of the new rule. While he did not vote in favor of the bill, he did vote in support of the legislation. The new law is known as H.R. 4997, and you can find more information about this law by clicking here.

The Home Mortgage Disclosure Adjustment Act is bipartisan legislation introduced by U.S. Sens. Mike Rounds and Heidi Heitkamp of North Dakota. The bill would exempt community banks from the revised Regulation C final rule, which was adopted in November 2017. This bill also changes the exemption threshold for community banks from the HMDA rule. Open-end line-of-credit and closed-end loans that have a balance of under $47 million will no longer have to be disclosed.

The Home Mortgage Disclosure Adjustment Act will exempt small banks and credit unions from the requirement. This law will give small lenders relief and do not impact the availability of mortgage data to the CFPB. While this new legislation may affect lenders who originate more than 500 closed-end mortgages or open-end lines of credit each year, the changes will not affect the goal of the HMDA. While the Home Mortgage Disclosure Act will not impact the data banks must provide to consumers, Bradley and his colleagues have endorsed it.

In addition to providing relief for smaller lenders, the Home Mortgage Disclosure Adjustment Act will also raise the exemption threshold for open-end and closed-end loans. This change is good for consumers and banks. The HMDA will allow more community financial institutions to be exempt from the new reporting requirements. As the CFPB reviews the Home Mortgage Disclosure Act, a new interpretation of the new rules may be required. If you're a small lender, this legislation could help you stay compliant with the regulations.

In addition to the proposed legislation, the government has also amended the regulations that govern lending. The amendment will now make it easier for smaller lenders to avoid the new HMDA requirements. This means that borrowers who are paying for a home mortgage will not have to worry about their loan's affordability. The legislation is now in the Senate and is expected to be passed soon. However, it is not yet final. This law will likely be implemented in phases, so the changes will affect some lenders.

In a recent announcement, the U.S. House passed H.R. 2954, which would raise the exemption threshold for lenders. The bill would make it more difficult for community banks to refuse to report on open-end loans. By extending the exemption for community banks, the Home Mortgage Disclosure Adjustment Act will make it easier for lenders to comply with HMDA. It will also make it easier for smaller banks to comply with the HMDA rule.

You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/Mortgage_loan.