“Should Mortgage Originators Continue Submitting HMDA Data Despite CFPB Shutdown?”

With the Consumer Financial Protection Bureau (CFPB) effectively shut down, should mortgage originators still submit their Home Mortgage Disclosure Act (HMDA) data to the government?

Yes.

Here’s why:

1. Legal Requirements Remain Unchanged: Even though the CFPB’s operations are in question, HMDA itself remains in effect. The statute and its implementing regulations remain valid federal law. The current situation at the CFPB doesn’t alter the fundamental legal obligation to collect and report lending data, regardless of the agency’s operational status.

2. HMDA Submission Infrastructure Continues to Function: For now, the HMDA filing portal remains operational and continues to accept submissions. The technical infrastructure for reporting hasn’t been affected by the CFPB’s current situation and there has been no official suspension of reporting requirements. This means lenders can fulfill their reporting obligations through the established channels.

3. State-Level Enforcement Remains Possible: Even if the CFPB’s enforcement capabilities are limited, state Attorneys General and state financial services regulators retain the authority to enforce HMDA requirements. They can bring actions against lenders that fail to file. For lenders other than national banks, state regulators could impose penalties.

What Happens After You Submit?

While the obligation to submit HMDA data is clear, the use of that data by the government is less certain. Historically, the CFPB has published aggregate data by mid-June each year. With bureau staff reportedly instructed to stand down from various supervision and enforcement activities, this timeline may shift. Before the CFPB’s creation, the Federal Reserve was responsible for HMDA data collection and reporting. Given current discussions about consolidating federal financial regulators, we might see a return to this arrangement.

While uncertainty surrounds the CFPB’s operational status, the prudent approach for mortgage originators is to maintain compliance with HMDA reporting requirements. The legal obligation remains in force, the submission infrastructure is operational, and state-level enforcement capabilities are unaffected.

Better to be safe than sorry!