Reps. Tom Emmer (R-MN) and Randy Hultgren (R-IL) introduced this week the Home Mortgage Reporting Relief Act, which seeks to aid small businesses and community banks.
Emmer and Hultgren said the bill gives financial institutions more time to comply with new data collection and reporting requirements required by the Consumer Financial Protection Bureau (CFPB).
The legislators said the effort provides a one-year safe harbor for financial institutions from having to comply with the data collection and reporting requirements and restricts the CFPB’s ability to make any of the new data collected and reported publicly available.
“I consistently hear from community banks and credit unions throughout the Sixth District that the CFPB’s new rules will make it harder for them to do what they do best: help Minnesota families achieve the American dream,” Emmer said. “While we work to blunt the impact of these burdensome regulations, this bill will provide Main Street banks additional time to comply with the new rule so that they can focus on getting Americans into new homes in a timely manner rather than figuring out how to navigate through more red tape.”
Under the Home Mortgage Disclosure Act (HMDA), the CFPB’s revised final rule would go into effect Jan. 1, 2018, requiring banks and credit unions to collect 48 additional unique data fields on any mortgage loan they originate and report this data to the CFPB.
“The new Home Mortgage Disclosure Act requirements again demonstrate that the CFPB does not understand our community banks and credit unions,” Hultgren said. “This bill will give community banks and credit unions some breathing room so they can refocus on meeting the financial needs of families and small businesses in Illinois.”