[Federal Register Volume 84, Number 149 (Friday, August 2, 2019)]
[Proposed Rules]
[Pages 37804-37806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16190]


=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1003

[Docket No. CFPB-2019-0021]
RIN 3170-AA76


Home Mortgage Disclosure (Regulation C); Reopening of Comment 
Period

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Reopening of comment period with request for public comment.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
reopening the comment period for specific aspects of the proposed rule 
published by the Bureau in the Federal Register on May 13, 2019 (May 
2019 Proposal). The May 2019 Proposal proposed amendments to Regulation 
C relating to the coverage thresholds for reporting data on closed-end 
mortgage loans and open-end lines of credit and partial exemptions 
under the Home Mortgage Disclosure Act (HMDA). To facilitate the 
potential revisions of the thresholds that the Bureau proposed to take 
effect on January 1, 2020, the Bureau used a 30-day comment period, 
which ended on June 12, 2019. Later this summer, the national loan 
level dataset for 2018 and the Bureau's annual overview of residential 
mortgage lending based on that data (collectively, the 2018 HMDA Data) 
will be released. Stakeholders have asked to submit comments on the May 
2019 Proposal that reflect the 2018 HMDA Data. To allow for the 
submission of such comments, the Bureau now reopens the comment period 
on certain aspects of the proposal until October 15, 2019.

DATES: The comment period for the proposed rule published May 13, 2019, 
at 84 FR 20972, is reopened with respect to the proposed changes 
relating to the permanent coverage thresholds for closed-end mortgage 
loans and open-end lines of credit in Sec. Sec.  1003.2(g)(1)(v) and 
(g)(2)(ii) and 1003.3(c)(11) and (c)(12) and related commentary. 
Comments must be received by October 15, 2019.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2019-0021 or RIN 3170-AA76, by any of the 
following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include Docket 
No. CFPB-2019-0021 or RIN 3170-AA76 in the subject line of the message.
     Mail: Comment Intake, Bureau of Consumer Financial 
Protection, 1700 G Street NW, Washington, DC 20552.
     Hand Delivery/Courier: Comment Intake, Bureau of Consumer 
Financial Protection, 1700 G Street NW, Washington, DC 20552.
    Instructions: The Bureau encourages the early submission of 
comments. All submissions should include the agency name and docket 
number or Regulatory Information Number (RIN) for this rulemaking. 
Because paper mail in the Washington, DC area and at the Bureau is 
subject to delay, commenters are encouraged to submit comments 
electronically. In general, all comments received will be posted 
without change to http://www.regulations.gov. In addition, comments 
will be available for public inspection and copying at 1700 G Street 
NW, Washington, DC 20552, on official business days between the hours 
of 10:00 a.m. and 5:00 p.m. Eastern Time. You can make an appointment 
to inspect the documents by telephoning 202-435-7275.

[[Page 37805]]

    All comments, including attachments and other supporting materials, 
will become part of the public record and subject to public disclosure. 
Proprietary information or sensitive personal information, such as 
account numbers or Social Security numbers, or names of other 
individuals, should not be included. Comments will not be edited to 
remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Jaydee DiGiovanni or Shaakira Gold-
Ramirez, Counsels; or Amanda Quester or Alexandra Reimelt, Senior 
Counsels, Office of Regulations, at 202-435-7700 or https://reginquiries.consumerfinance.gov/. If you require this document in an 
alternative electronic format, please contact 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On May 2, 2019, the Bureau issued a notice of proposed rulemaking 
at 84 FR 20972 (May 2019 Proposal) relating to Regulation C's coverage 
thresholds and the partial exemptions under HMDA and requested public 
comment.\1\ The May 2019 Proposal was published in the Federal Register 
on May 13, 2019.
---------------------------------------------------------------------------

    \1\ Home Mortgage Disclosure (Regulation C), 84 FR 20972 (May 
13, 2019). On the same date, the Bureau also issued an advance 
notice of proposed rulemaking (ANPR) to solicit comment, data, and 
information from the public relating to the data points that the 
Bureau's October 2015 final rule added to Regulation C or revised to 
require additional information and Regulation C's coverage of 
certain business- or commercial-purpose transactions. Home Mortgage 
Disclosure (Regulation C) Data Points and Coverage, 89 FR 20049 (May 
8, 2019); see also Home Mortgage Disclosure (Regulation C), 80 FR 
66128 (Oct. 28, 2015). The ANPR was published in the Federal 
Register on May 8, 2019.
---------------------------------------------------------------------------

    In the May 2019 Proposal, the Bureau proposed two alternatives to 
amend Regulation C to increase the current 25-loan coverage threshold 
for reporting data about closed-end mortgage loans so that institutions 
originating fewer than either 50 closed-end mortgage loans, or 
alternatively 100 closed-end mortgage loans, in either of the two 
preceding calendar years would not have to report such data. The May 
2019 Proposal proposed an effective date of January 1, 2020 for any 
amendment to the closed-end coverage threshold. The May 2019 Proposal 
would also adjust the coverage threshold for reporting data about open-
end lines of credit by (a) extending to January 1, 2022 the current 
temporary coverage threshold of 500 open-end lines of credit, and (b) 
setting the permanent coverage threshold at 200 open-end lines of 
credit upon the expiration of the proposed extension of the temporary 
coverage threshold. In the May 2019 Proposal, the Bureau also proposed 
to incorporate into Regulation C the interpretations and procedures 
from the interpretive and procedural rule that the Bureau issued on 
August 31, 2018 to implement and clarify section 104(a) of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA),\2\ 
and proposed to make other changes to effectuate section 104(a).
---------------------------------------------------------------------------

    \2\ Partial Exemptions from the Requirements of the Home 
Mortgage Disclosure Act Under the Economic Growth, Regulatory 
Relief, and Consumer Protection Act (Regulation C), 83 FR 45325 
(Sept. 7, 2018).
---------------------------------------------------------------------------

    To facilitate the potential revisions of the thresholds that the 
Bureau proposed to take effect on January 1, 2020, the Bureau used a 
30-day comment period for the May 2019 Proposal, which ended on June 
12, 2019.\3\ The Bureau received over 300 comments. Among the comments 
received were a number of letters expressing concern that the 2018 HMDA 
Data would not be available until after the close of the comment period 
for the May 2019 Proposal. These commenters noted that the 2018 HMDA 
Data includes data points that were reported for the first time under 
the Bureau's October 2015 HMDA final rule and stated that access to the 
2018 HMDA Data would enable the public to comment more precisely on the 
data that would be lost if the proposed changes were finalized. For 
example, a group of 18 consumer advocacy and other non-profit 
organizations asked the Bureau to reissue the May 2019 Proposal and 
allow for a new 90-day comment period after the release of the 2018 
HMDA Data.\4\ A State attorney general expressed concern that the May 
2019 Proposal asked the public to provide comment on the efficacy of 
data it has yet to see. An industry commenter stated that analysis of 
the 2018 HMDA Data was necessary so as to gain an accurate 
understanding of how changes to the coverage thresholds would affect 
regulators and current HMDA reporters.
---------------------------------------------------------------------------

    \3\ A separate comment period related to the Paperwork Reduction 
Act closed on July 12, 2019.
    \4\ In addition to asking that the NPRM be reissued with a 90-
day comment period, the comment from 18 non-profit organizations 
further requested that the Bureau reissue the ANPR to allow for 
comment informed by the 2018 HMDA Data. A group of three industry 
trade associations separately asked that the Bureau extend the ANPR 
comment period from 60 to 90 days so that, among other things, they 
would have sufficient time to survey their members about the 
questions presented in the ANPR. On June 27, the Bureau extended the 
ANPR comment period to October 15, 2019. 84 FR 31746 (July 3, 2019). 
In doing so, the Bureau explained that it expects the 2018 HMDA Data 
to be released in late summer and that the extension of the ANPR 
comment period to October 15, 2019 would allow interested parties 
adequate time to consider the 2018 HMDA Data before submitting their 
comments on the ANPR.
---------------------------------------------------------------------------

II. Discussion and Request for Comment

    The Bureau has balanced the potential benefits from allowing 
interested parties additional time to consider the 2018 HMDA Data in 
commenting on the May 2019 Proposal with the Bureau's desire to 
finalize certain aspects of the May 2019 Proposal expeditiously. The 
Bureau expects the 2018 HMDA Data to be released in late summer. In 
light of these factors, the Bureau has decided that reopening certain 
aspects of the May 2019 Proposal for a limited period of time to 
comment is appropriate, as discussed below.\5\ The Bureau does not, 
however, believe it is necessary or appropriate to reissue the May 2019 
Proposal with a new 90-day comment period as the letter from 18 non-
profit organizations requested. Instead, the Bureau will reopen the 
comment period on certain aspects of the NPRM until October 15, 2019, 
so comments can reflect the 2018 HMDA Data without interposing 
substantial delay in the adoption of any new permanent thresholds.
---------------------------------------------------------------------------

    \5\ The Bureau has not received requests for additional time 
with regard to the separate comment period relating to the Paperwork 
Reduction Act, which closed on July 12, 2019, and is not reopening 
that aspect of the May 2019 Proposal for comment.
---------------------------------------------------------------------------

A. Provisions the Bureau Is Reopening for Comment

    The Bureau believes that it would be useful to have public comment 
on the 2018 HMDA Data in considering where to set the permanent 
coverage thresholds for closed-end mortgage loans and open-end lines of 
credit. For example, the new data may shed light on the number of 
institutions and percentage of market activity covered at different 
potential coverage thresholds and the value of the data that would not 
be reported if the thresholds were increased. The Bureau is therefore 
reopening the comment period and requesting comment on the Bureau's 
proposed changes to the permanent coverage thresholds for closed-end 
mortgage loans and open-end lines of credit. The relevant aspects are: 
(1) The proposed amendments to the permanent closed-end coverage 
threshold in Sec. Sec.  1003.2(g)(1)(v)(A) and (g)(2)(ii)(A) and 
1003.3(c)(11), and comments 2(g)-1, 2(g)-5, 3(c)(11)-1, and 3(c)(11)-2, 
that the Bureau proposed would take effect on January 1, 2020, and (2) 
the proposed amendments to the permanent open-end coverage threshold in 
Sec. Sec.  1003.2(g)(1)(v)(B) and (g)(2)(ii)(B) and 1003.3(c)(12) and 
2(g)-3 and 2(g)-5 and

[[Page 37806]]

3(c)(12)-1 and 3(c)(12)-2 that the Bureau proposed would take effect 
January 1, 2022.
    Due to the reopening of the comment period on the permanent closed-
end coverage threshold, the Bureau will not be able to finalize any 
change to the closed-end coverage threshold in time to take effect on 
the Bureau's originally proposed effective date of January 1, 2020. The 
Bureau therefore requests additional comment on the appropriate 
effective date for any change to the closed-end coverage threshold, 
should the Bureau decide to finalize a change. Specifically, the Bureau 
requests comment on the costs and benefits of a mid-year effective date 
during 2020 (e.g., May 2020) versus a January 1, 2021 effective 
date.\6\ With respect to the alternative of a mid-year effective date 
during 2020, the Bureau also requests comment on the costs and benefits 
of specific days of the week or times of the month, quarter, or year 
for a new closed-end coverage threshold to take effect and whether 
there are any other considerations that the Bureau should address in a 
final rule if it were to adopt a mid-year effective date. Regarding the 
effective date for a permanent open-end coverage threshold, reopening 
the comment period will still allow the Bureau to issue a final rule to 
adjust the permanent open-end coverage threshold effective January 1, 
2022, as the Bureau proposed in the May 2019 Proposal, should the 
Bureau choose to do so.
---------------------------------------------------------------------------

    \6\ If the Bureau adopted a mid-year effective date during 2020, 
affected institutions would be required to collect closed-end 
mortgage loan data for only part of 2020, and the Bureau could make 
reporting of such data optional in early 2021.
---------------------------------------------------------------------------

    As discussed below, the Bureau has already received comment on the 
proposed two-year extension of the temporary coverage threshold for 
open-end lines of credit and the proposed amendments to incorporate the 
EGRRCPA's partial exemptions into Regulation C. The Bureau is not 
soliciting comment during the reopened comment period on these issues, 
and any further such comments will be considered outside of the scope 
of this request for public comment. The Bureau encourages commenters to 
limit their submissions accordingly to (1) the Bureau's proposed 
changes to the permanent coverage threshold for closed-end mortgage 
loans, (2) the Bureau's proposed changes to the permanent coverage 
threshold for open-end lines of credit, and (3) the appropriate 
effective date for any change to the closed-end coverage threshold. The 
reopened comment period will close on October 15, 2019, which will 
allow interested parties adequate time to consider the 2018 HMDA Data 
after its release in late summer. Comments on the proposed rule that 
were previously submitted during the initial comment period, which 
ended on June 12, 2019, remain part of the rulemaking docket and 
therefore do not need to be resubmitted for the Bureau to consider 
them.

B. Provisions the Bureau Is Not Reopening for Comment

    The Bureau has decided not to reopen the comment period with 
respect to the May 2019 Proposal's proposed two-year extension of the 
temporary open-end threshold. As discussed in the May 2019 Proposal, 
the proposed extension would provide the Bureau with additional time to 
assess how a requirement to report open-end lines of credit would 
affect institutions whose origination volume falls just above the 
proposed threshold of 200 open-end lines of credit.\7\ The proposed 
extension would also provide any newly covered institutions with 
sufficient time to revise and update policies and procedures, implement 
any necessary systems changes, and train staff before the proposed 
threshold of 200 lines of credit would take effect in 2022. The Bureau 
does not believe that additional comment on the 2018 HMDA Data is 
necessary for the Bureau to determine whether to finalize the proposed 
two-year extension of the open-end threshold. The Bureau expects to 
issue a final rule in the fall of 2019 indicating whether it will 
extend the temporary open-end coverage threshold so that, if finalized, 
the extension can take effect as proposed on January 1, 2020. 
Therefore, the Bureau is not reopening that portion of the proposal for 
further comment relating to the 2018 HMDA Data.
---------------------------------------------------------------------------

    \7\ 84 FR 20972, 20982 (May 13, 2019).
---------------------------------------------------------------------------

    The Bureau also does not believe that additional comment on the 
2018 HMDA Data is necessary for its consideration of the provisions in 
the May 2019 Proposal that would incorporate the EGRRCPA partial 
exemptions into Regulation C and further implement EGRRCPA section 
104(a). The Bureau is proposing to implement the new statutory partial 
exemptions that Congress established in EGRRCPA section 104(a), and the 
Bureau does not believe that comment on the 2018 HMDA Data would assist 
it in determining how to implement the new statutory partial 
exemptions. To provide further clarity on the new partial exemptions as 
quickly as possible, the Bureau anticipates that it will address the 
proposed amendments relating to the partial exemptions in a final rule 
issued in the fall of 2019.

    Dated: July 23, 2019.
Kathleen L. Kraninger,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2019-16190 Filed 8-1-19; 8:45 am]
BILLING CODE 4810-AM-P