On December 21, 2017, the FDIC issued a statement, FIL 63-2017, addressing bankers concerns over regulatory enforcement liability in connection with banks’ compliance with the Home Mortgage Disclosure Act (“HMDA”) and its amended Regulation C, which new requirements are scheduled to come in effect for the majority of financial institutions on January 1, 2018.
Recognizing the significant system and operational challenges required to adjust to the new CFPB’s amendments to Regulation C, the FDIC in the statement clarified its HMDA examination approach of banks’ collection, reporting and disclosure of 2018 HMDA data.
Specifically, the FDIC statement clarified the following:
- For HMDA data collected in 2018 and reported in 2019, the FDIC does not intend to require data resubmission unless data errors are material.
- The FDIC does not intend to assess penalties with respect to errors in data collected in 2018 and reported in 2019.
- Any examinations of 2018 HMDA data will be diagnostic to help banks identify compliance weaknesses and will credit good faith compliance efforts.
- For data collected in 2017, banks will submit their reports in 2018 in accordance with the current Regulation C using the CFPB’s HMDA Platform.
According to the statement the FDIC expects that the collection and submission of the 2018 HMDA data will provide banks an opportunity to identify any gaps in their implementation of amended Regulation C and make improvements in their HMDA compliance management systems for future years.
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