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Congressman Tom Emmer

Representing the 6th District of Minnesota

Emmer Introduces Home Mortgage Disclosure Adjustment Act

April 20, 2016
Press Release

Washington, D.C. – Today, Congressman Tom Emmer (MN-06) introduced the Home Mortgage Disclosure Adjustment Act which will help American families by providing regulatory relief for roughly 3,400 small banks and credit unions.

Since the Dodd-Frank Wall Street Reform Act was enacted, numerous mandates have been forced on community financial institutions despite the fact they had nothing to do with causing the 2008 crisis. One of the latest harmful mandates is the Consumer Financial Protection Bureau’s (CFPB) revised Regulation C final rule. This rule amends the Home Mortgage Disclosure Act (HMDA) by requiring small banks and credit unions to collect 48 unique data points on loan applications and then share that information with the federal government. 

“This burden - which is twice as much as what is already required under HMDA - requires small community banks and credit unions to allocate more of their limited resources to deal with Washington’s red tape, rather than providing loans to families and businesses in Minnesota,” said Emmer. “These unnecessary regulatory hurdles will make consumer credit - like mortgages, car and small business loans - more expensive thus harming those with modest means the most.” 

The Home Mortgage Disclosure Adjustment Act exempts small banks and credit unions from Regulation C if they meet the following criteria:

  • Lenders that have originated 100 or fewer closed-end mortgages (typical mortgage for purchase of a home) in each of the two preceding calendar years will be exempt from reporting on such loans.
  • Lenders that have originated 200 or fewer open-end lines of credit (such as a typical home equity loan) in each of the two preceding calendar years will be exempt from reporting on such loans.

This legislation will provide relief for small lenders without material impacting the mortgage data available to the CFPB or the goals of HMDA. Additionally, the Home Mortgage Disclosure Adjustment Act has garnered the support of: Independent Community Bankers of America, American Bankers Association, National Association of Federal Credit Unions and Credit Union National Association.

Congressman Tom Emmer represents Minnesota’s Sixth Congressional District and is a member of the Financial Services Committee.

The Home Mortgage Disclosure Adjustment Act is H.R. 4997. Click here to read the full text.

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