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CFPB to Exempt More Credit Unions from HELOC Reporting

Mon, Jul 17, 2017

A victory for the credit union system. Last week, CFPB Director Richard Cordray pledged that the bureau would issue a proposal to raise the home equity line of credit (HELOC) reporting threshold. In a letter sent to several Senators, Cordray cited increasing concerns from credit unions and other community financial institutions about the reporting burden.

The leagues and CUNA has pushed to raise the threshold required under the Home Mortgage Disclosure Act rule from the CFPB.

Per Cordray, the upcoming proposal would exempt institutions that originate fewer than 500 HELOCs in either of the previous two calendar years from reporting. The current threshold is 100.

Cordray said the bureau would issue the proposal within the next two weeks, and it would apply for reporting in 2018 and 2019.

"Temporarily increasing the HELOC threshold in this way will give small institutions additional relief and provide the Consumer Bureau ample opportunity reconsider the HELOC threshold contained in the final rule and decide where it should be beginning in 2020," Cordray wrote.