Pub. 7 2017-2018 Issue 5

8 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S HMDA and Company— Highlights for the Upcoming Year FEATURE ARTICLE BY SARAH SAUCEDA ASSOCIATE GENERAL COUNSEL COMPLIANCE ALLIANCE Again, the effective date for these changes is January 1, 2018. Be sure to remember that, although the HMDA 2018 is upon us, you will still need to submit data collected in 2017 under the current rule with the slight change of submitting the 2017 data to the CFPB instead of the Federal Reserve Board. H ighlights for 2018 include: (1) Home Mortgage Disclosure Act (HMDA) changes; (2) amendments to the Equal Credit Opportunity Act (ECOA); (3) an increased Truth-in-Lending (TIL) threshold; (4) Community Reinvestment Act (CRA) amendments; and (5) “sunset” provisions. The time has come for the long-awaited changes affecting HMDA to hit the banking world with a bang. HMDA – version 2018 – includes changes relating to institutional and transactional coverage and data collection, recording, reporting, and disclosure. As for institutional coverage, HMDA 2018 adopts a uniform loan-volume threshold for all institutions. This means that starting January 1, 2018, an institution will be subject to HMDA if it originated 25 or more covered closed-end mortgage loans in each of the preceding calendar years, or if it originated 100 or more covered open-end lines of credit in each of the past two years. Of course, the institutions making these loans also need to meet other applicable coverage requirements to be subject to HMDA. As for the amendments to transactional coverage, HMDA 2018 modifies the types of transactions that are covered. Basically, the new version of HMDA adopts a dwell- ing-secured standard. As of January 1, 2018, covered loans will include both closed-end mortgage loans and open-end lines of credit secured by a dwelling. Another major change to this portion of HMDA concerns busi- ness-purpose loans. Starting January 1, 2018, dwelling-secured, business-purpose loans and lines of credit will constitute covered loans if they are home purchase loans, home improvement loans, or refinancings. 2017 was quite a ride but buckle up—2018 is starting up at a fast pace.