HMDA Final Rule-PRA Supporting Statement FINAL

BUREAU OF CONSUMER FINANCIAL PROTECTION
PAPERWORK REDUCTION ACT SUBMISSION
INFORMATION COLLECTION REQUEST

SUPPORTING STATEMENT PART A
HOME MORTGAGE DISCLOSURE (REGULATION C) 12 CFR 1003
(OMB CONTROL NUMBER: 3170-0008)

OMB TERMS OF CLEARANCE:
When the Office of Management and Budget (OMB) last approved on January 31, 2014,
the information collection requirements contained in current Regulation C it provided no Terms
of Clearance. When OMB concluded its review of the information collection requirements as
contained in the Notice of Proposed Rulemaking (NPRM) for Regulation C (RIN 3170-AA10),
the Consumer Financial Protection Bureau (Bureau) was instructed to “resubmit the collection at
the final rule stage and provide a summary of comments received on the collection along with a
discussion as to whether the agency incorporated the commenter's suggestion, and if not, why
not.” Accordingly, this information collection request is being submitted in part in association
with amended Regulation C and the comments received in response to the NPRM as well as the
Bureau’s response to those comments, which are addressed in the preamble to the final rule.
ABSTRACT:
The Home Mortgage Disclosure Act (HMDA) requires certain depository institutions and
for-profit nondepository institutions to collect, report, and disclose data about originations and
purchases of mortgage loans, as well as mortgage loan applications that do not result in
originations (for example, applications that are denied or withdrawn). The Bureau’s Regulation
C, 12 CFR part 1003, implements HMDA. The purpose of the information collection is: (i) to
help determine whether financial institutions are serving the housing needs of their communities;
(ii) to assist public officials in distributing public-sector investment so as to attract private
investment to areas where it is needed; and (iii) to assist in identifying possible discriminatory
lending patterns and enforcing antidiscrimination statutes. The information collection will also
assist the CFPB’s examiners, and examiners of other federal supervisory agencies, in
determining that the financial institutions they supervise comply with applicable provisions of
HMDA.
This information collection request (ICR) is being submitted to OMB in association with
amended Regulation C (RIN 3170-AA10) , 80 FR 66127 published October 27,2015 and in
accordance with 5 CFR 1320.11(f) and 1320.11(h). Further, since the information collection
requirements as contained in the current Regulation C are currently scheduled to expire on
January 31, 2016 and the information collection requirements as contained in amended Regulation
C Regulation C will generally not become effective until January 1, 2018, this ICR is also
Page 1 of 19

comtemporaneously being submitted to OMB under 5 CFR 1320.12. The Bureau is requesting
OMB to extend for an additional three years its approval of the information collection
requirements as contained in current Regulation C.
PART A. JUSTIFICATION
1. Circumstances Necessitating the Data Collection
Data reported under the Home Mortgage Disclosure Act (HMDA), 12 U.S.C. 2801-2810,
represent the primary data source for regulators, industry, advocates, researchers, and economists
studying and analyzing trends in the mortgage market for a variety of purposes, including
general market and economic monitoring, as well as assessing housing needs, public investment,
and possible discrimination. Historically, HMDA has been implemented by Regulation C of the
Board, 12 CFR 203, and HMDA data have been collected and reported under OMB control
number 7100-0247. Congress has periodically modified the law, and the Board has routinely
updated Regulation C, in order to ensure that the data continued to fulfill the HMDA’s purposes.
Users of HMDA data, however, have consistently advocated for expansion of HMDA
data to keep pace with the mortgage market’s evolution, particularly during the market’s rapid
growth into nontraditional lending products and its subsequent collapse in 2008. In 2010,
Congress responded to the mortgage crisis in the Dodd-Frank Act by enacting changes to HMDA
as well as directing reforms to the mortgage market and the broader financial system. In addition
to transferring rulemaking authority for HMDA from the Board to the Bureau, section 1094 of
the Dodd-Frank Act directed the Bureau to implement changes requiring the collection and
reporting of several new data points, and authorized the Bureau to require financial institutions to
collect and report such other information as the Bureau may require.
HMDA currently requires financial institutions to report certain information related to
covered loans. Financial institutions are required to report HMDA data annually to the Bureau
or to the appropriate Federal agency. All reportable transactions must be recorded within 30
calendar days after the end of the calendar quarter in which final action is taken on a loan
application register, which must also be disclosed to the public upon request. Financial
institutions must also make their disclosure statements, which are prepared by the FFIEC from
data submitted by the institutions, available to the public upon request.
The CFPB is issuing a final rule to implement amendments to HMDA included in the
Dodd-Frank Act, and to make other changes in the CFPB’s Regulation C. The final rule would
impose new reporting requirements by requiring financial institutions to report additional
information required by the Dodd-Frank Act, as well as certain information determined by the
Bureau to be necessary and proper to effectuate HMDA’s purposes. The final rule also modifies
the scope of the institutional and transactional coverage thresholds. Finally, the final rule
increases the frequency of reporting for certain large-volume financial institutions and changes
the disclosure requirements related to the modified loan/application register and disclosure
statement.
Page 2 of 19

2. Use of the Information
The purpose of the information collection is: (1) to help determine whether financial
institutions are serving the housing needs of their communities; (2) to assist public officials in
distributing public-section investment so as to attract private investment to areas where it is
needed; and (3) to assist in identifying possible discriminatory lending patterns and enforcing
antidiscrimination statutes. The information collections, which include reporting, recordkeeping,
and disclosure requirements, will assist community groups, academics, public officials in
determining whether financial institutions are serving the housing needs of their communities,
targeting public investment to attract private investment in communities, and identifying possible
discriminatory lending patterns and enforce antidiscrimination statutes. The information
collections will also assist in earlier identification of trends in the mortgage market, including the
cyclical loosening and tightening of credit.
3. Use of Information Technology
The final rule requires financial institutions to submit HMDA data in electronic form.
While paper form submssions are allowed under the current rule, in recent years, very few
financial institutions have submitted their loan/application registers in paper form. The Bureau is
also implementing several operational improvements. For example, the Bureau is considering
consolidating the outlets for assistance, providing guidance support similar to the guidance
provided for the Title XIV and TILA-RESPA Integrated Disclosure rules; and improving points
of contact processes for help inquiries. In addition, the Bureau is improving the geocoding
process, creating a web-based submission tool, developing a data-entry system for small
financial institutions that currently use Data Entry Software, and otherwise streamlining the
submission and editing process to make it more efficient.
4. Efforts to Identify Duplication
Substantially all of the information collected is not otherwise available. No privatelyproduced loan-level mortgage databases with comprehensive national coverage exist that are
easily-accessible by the public. Private data vendors offer a few large databases for sale, but
these are typically collected via either the largest servicers or securitizers, and therefore none
match the near-universal coverage of the HMDA data. Notably, unlike HMDA, almost all of the
commercially-available loan-level databases provided by vendors are for originated loans only
and do not include applications that did not result in an origination.
5. Efforts to Minimize Burdens on Small Entities
The CFPB has solicited feedback through the public comment period and by convening a
Small Business Review Panel regarding burden minimization. The final rule reflects several
changes designed to further this purpose. First, by raising the loan-volume threshold applicable
to closed-end mortgage loans to 25 loans and adopting a threshold of 100 open-end lines of
credit, the Bureau has provided substantial relief to small entities falling below these thresholds.
Second, the Bureau is providing that financial institutions shall make available to the public
Page 3 of 19

notices that clearly convey that the institution’s disclosure statement and modified
loan/application register may be obtained on the Bureau’s website. This approach relieves all
financial institutions, including small entities, of the obligation to provide the disclosure
statement and modified loan/application register to the public directly. Third, the Bureau
adopted revisions to transactional coverage criteria that benefits small entities. As one example
of this benefit, the revisions to the transactional coverage criteria will eliminate reporting of
unsecured home improvement loans. This change reduces reporting burden to small entities to
the extent that these entities offer unsecured home improvement products. Finally, the Bureau is
making operational enhancements and modifications to improve the data submission process, as
described above.
6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
HMDA provides for information to be collected annually. The final rule also requires
financial institution that reported for the preceding calendar year at least 60,000 covered loans
and applications, excluding purchased covered loans, to submit their HMDA data for the first
three quarters of the calendar year on a quarterly basis in addition to submitting their HMDA
data for the entire calendar year on an annual basis. The Bureau is concerned that less frequent
reporting for the highest-volume institutions would impair the ability of the appropriate agencies
to use HMDA data to effectuate the purposes of the statute in a timely manner. Because
quarterly reporting would permit the Bureau to process a significant volume of HMDA data
throughout the year, the Bureau believes that quarterly reporting would allow for the earlier
release to the public of HMDA data products. As an alternative to the adopted approach, the
Bureau considered requiring semiannual reporting rather than quarterly reporting. Under this
approach, large volume reporters would submit their “final” HMDA data for the first and second
quarters of the calendar year within 60 days after the end of the second quarter, and their “final”
HMDA data for the third and fourth quarters by March 1 of the following year. This alternative
approach would not provide data to the agencies that was as timely as the quarterly reporting
approach, however, reducing the utility of the data to the agencies as well as the disclosure
benefit to the public.
7. Circumstances Requiring Special Information Collection
No special circumstances require the collection to be conducted in a manner inconsistent
with the guidelines in 5 CFR 1320.5(d)(2).
Regulation C requires that all reportable transactions be recorded on a loan/application register
within thirty calendar days after the end of the calendar quarter in which final action is taken.
Regulation C further specifies that a financial institution shall retain a copy of its submitted
loan/application register for its records for at least three years. These retention provisions are
required by Congress, which provided in HMDA section 304(c) that information required to be
compiled and made available under HMDA section 304, other than loan application register
information required under section 304(j), must be maintained and made available for a period of
five years. HMDA section 304(j)(6) requires that loan application register information for any
year shall be maintained and made available, upon request, for three years.
Page 4 of 19

8. Consultation Outside the Agency
New Final Rule Regualtion C (RIN 3170-AA10)
In preparing the notice of proposed rulemaking and the final notice, the CFPB conducted
outreach on implementing the Dodd-Frank Act amendments to HMDA and other potential
changes to Regulation C by soliciting comments in Federal Register notices and by meeting with
a variety of stakeholders, including trade associations, financial institutions, community groups,
and other Federal agencies. The Bureau also convened a Small Business Review Panel to obtain
feedback from small financial institutions as well as the general public. To prepare the final rule,
the Bureau considered the comments presented to the Board during its public hearings, feedback
provided to the Bureau during its outreach activities, and public comments provided pursuant to
the notice of proposed rulemaking.
A notice of proposed rulemaking (NPRM) for Regualtion C was published August 29,
2014 provding the public 60 days to comment on the proposed rule. Public comments received in
response to the NPRM, as well as CFPB’s response to those comments are summarized in the
preamble to the final rule.
Renewal of the Information Collection Requirements in Current Regulation C
In accordance with 5 CFR 1320.8(d)(1), the Bureau has published a notice in the Federal
Register allowing the public 60 days to comment on the proposed extension of this currently
approved collection of information. No comments regarding the renewal of the existing rule were
received. Further and in accordance with 5 CFR 1320.5(a)(1)(iv), the Bureau will publish a
notice in the Federal Register allowing the public 30 days to comment on the submission of this
information collection request to OMB.
9. Payments or Gifts to Respondents
Not applicable.
10. Assurances of Confidentiality
Respondents are financial institutions for which CFPB provides no assurances of
confidentiality. Regulation C currently requires this information to be made available to the
public except for three fields that are redacted to protect the identities of the individual
applicants. The final rule does not specify which fields the Bureau will redact or modify to
protect applicant or borrower privacy. The final rule does, however, adopt a framework for
making final disclosure decisions, under which the importance of releasing the data to
accomplish HMDA’s public disclosure purposes is balanced against the potential harm to an
applicant or borrower’s privacy interest that may result from the release of the data without
modification. The Bureau intends to provide a process for the public to provide input on the
application of the balancing test to determine the HMDA data to be publicly disclosed. Data not
Page 5 of 19

made publicly available are considered confidential under the Bureau’s confidentiality
regulations, 12 CFR part 1070 et seq., and the Freedom of Information Act. Information that is
not disclosed is protected by from unauthorized disclosure by several data security safeguards,
including privacy and security awareness training for each individual with internal access to the
system, technical access controls, and breach notification processes and plans. More information
regarding the privacy and security of the HMDA dataset can be found in the current Privacy
Impact Assessment published by the Bureau.1
11. Justification for Sensitive Questions
The information collection includes personal information regarding mortgage applicants
or borrowers, such as unique loan identifier, address, race/ethnicity, sex, annual income, and
credit score. As explained throughout the supplementary information contained in the final rule,
this information is necessary to realize the social benefits of HMDA and to fulfil the statutory
purposes: (1) to help determine whether financial institutions are serving the housing needs of
their communities; (2) to assist public officials in distributing public-section investment so as to
attract private investment to areas where it is needed; and (3) to assist in identifying possible
discriminatory lending patterns and enforcing antidiscrimination statutes.
A system of records notice is not applicable because information is not retrieved by direct
identifier.
Privacy impacts are evaluated throughout the final notice and specifically highlighted in
Applicant and Borrower Privacy, part II.B of the supplementary information. The final rule does
not specify which fields the Bureau will redact or modify to protect applicant or borrower
privacy. The final rule does, however, adopt a framework for making final disclosure decisions,
under which the importance of releasing the data to accomplish HMDA’s public disclosure
purposes is balanced against the potential harm to an applicant or borrower’s privacy interest that
may result from the release of the data without modification. The Bureau intends to provide a
process for the public to provide input on the application of the balancing test to determine the
HMDA data to be publicly disclosed

12. Estimated Burden of Information Collection
A. Information Collections under the Current Rule
The following information collections currently required by HMDA will continue to be
effective until the final rule becomes effective. There are three Information Collection types
under the HMDA rule: (1) Reporting Requirements, (2) Recordkeeping Requirements, and (3)
Third Party Disclosure Requirements. Each of these Information Collections is discussed in turn.
1

Cons. Financial Protection Bureau, Privacy Impact Assessment: Republication of the Home Mortgage Disclosure
Act Public Use Dataset on Consumerfinance.gov (2013),
http://files.consumerfinance.gov/f/201312_cfpb_republication-hmda-public-use-dataset_pia.pdf.
Page 6 of 19

Information Collections under the Current Rule for Financial Institutions Reporting to the
CFPB
Reporting:
Given that HMDA is a data collection statute, the Bureau views most tasks that financial
institutions undertake to gather and report data as covered by the Reporting Requirements. Based
on initial outreach efforts, the Bureau identified 18 tasks that financial institutions conduct when
gathering and reporting data under HMDA.2 These outreach efforts also determined that the
time and monetary cost of conducting these 18 tasks differed by financial institutions’ level of
complexity. To capture the relationships between institutions’ complexity and reporting costs for
each of these 18 tasks, the Bureau developed three representative financial institutions reflecting
low-, moderate- and high-complexity. In the following discussion, these are referred to as tier 3,
2, and 1 financial institutions, respectively. For the PRA burden analysis, the Bureau estimated
the time that each of the three representative lenders spend on each of the 18 tasks. The Bureau
then took these institution-level estimates and aggregated up to the market level.
The Reporting Requirement covers 14 of the 18 operational tasks.3 Four of these 14
operational tasks are variable-cost tasks, which vary by the number of applications.4 The Bureau
estimates that tier 3, tier 2, and tier 1 financial institutions spend approximately 19, 99, and 390
hours per year, respectively, on these four tasks. For the ten fixed-cost operational tasks covered
by the Reporting Requirements, the Bureau estimates that tier 3, tier 2, and tier 1 financial
institutions spend approximately 45, 887, and 3,792 hours per year, respectively, on these tasks.
In 2013, 145 financial institutions reported HMDA data to the CFPB. These 145
financial institutions include 84 depository institutions with over $10 billion in assets. Given
their large asset size, these depository institutions are likely comparable to the representative tier
1 institution. Therefore, to calculate burden hours, the Bureau assumes that all 84 financial
institutions are tier 1 institutions. For these tier 1 reporters, the Bureau estimates that the time
burden is 351,000 hours per year. Further, the Bureau estimates that 39 tier 2 and 22 tier 3
institutions report HMDA data to the CFPB. The Bureau estimates that the time burden for these
tier 2 and tier 3 reporters is 39,000 hours and 1,400 hours per year, respectively. The total
2

These are transcribing data, resolving reportability questions, transferring data to HMDA Management System
(HMS), geocoding, standard annual edit and internal checks, researching questions, resolving question responses,
checking post-submission edits, filing post-submission documents, creating public loan application register,
distributing public loan application register, distributing disclosure report, using vendor HMS software, training,
internal audits, external audits, exam preparation, and exam assistance.
3
These are resolving reportability questions, transferring data to HMDA Management System (HMS), geocoding,
standard annual edit and internal checks, researching questions, resolving question responses, checking postsubmission edits, filing post-submission documents, using vendor HMS software, training, internal audits, external
audits, exam preparation, and exam assistance. As discussed below, transcribing data falls under the record keeping
requirement, and creating the public LAR, distributing the public LAR, and creating the notice for obtaining the
disclosure statement all fall under the Third Party Disclosure Requirement.
4
The four variable cost tasks are transferring data to HMS, resolving reportability questions, geocoding, and
researching questions.
Page 7 of 19

estimated time burden of the Reporting Requirements Information Collection is 391,000 hours
per year.
Total Burden, Reporting Requirements-Financial Institutions Reporting to the CFPB
Number of
Total Burden per
Total
Respondents
Respondent
Burden
(Rounded to
Thousands)
4,182
hours
351,000 hours
Tier One
84
986 hours
39,000 hours
Tier Two
39
65 hours
1,000 hours
Tier Three
22
Total Estimated Burden for CFPB Respondents
391,000 hours

Recordkeeping:
The Recordkeeping Requirement covers the requirements that financial institutions
maintain HMDA data for three years and disclosure statements for five years, maintain loan
application register information for three years, and update information regarding reportable
transactions quarterly. To maintain data, disclosure statements, and loan application register
information, the primary time burden is the time needed to copy this information to electronic
data storage devices, such as a hard drive or disk. Given the prevalence and low cost of modern
computer technology, the Bureau believes that this time burden is negligible. The Bureau regards
the task of transcribing data as the key operational task that is directly related to recordkeeping.
The Bureau calculates the burden hours for the Recordkeeping Requirement based on the
estimated cost of transcribing the data. The Bureau estimates that tier 3, tier 2, and tier 1
financial institutions would spend approximately 8, 83, and 3,489 hours per year transcribing
data, respectively. The total estimated time burden of the Recordkeeping Requirements
Information Collection is 296,000 hours per year.
Total Burden, Recordkeeping Requirements-Financial Institutions Reporting to the
CFPB
Number of
Respondents

Tier One
84
Tier Two
39
Tier Three
22
Total Estimated Burden for CFPB Respondents

Total Burden
per
Respondent
3,489 hours
83 hours
8 hours

Total
Burden

293,000 hours
3,000 hours
180 hours
296,000 hours

Third Party Disclosure:

Page 8 of 19

The Third Party Disclosure Requirement covers the requirements that financial
institutions create a public loan application register, distribute the public loan application register
upon request, and provide a notice that the disclosure statement can be obtained from the FFIEC
website. These requirements correspond to three operational tasks: creating the public loan
application register, distributing the public loan application register, and creating the notice for
obtaining the disclosure statement. The Bureau estimates that tier 3, tier 2, and tier 1 financial
institutions would spend approximately 4, 11, and 26 hours per year, respectively, on these
operational tasks. The total estimated time burden of the Third Party Disclosure Requirements
Information Collection is 2,700 hours per year.
Total Burden, Third Party Disclosure Requirements-Financial Institutions Reporting to
the CFPB
Number of
Respondents

Tier One
84
Tier Two
39
Tier Three
22
Total Estimated Burden for CFPB Respondents

Total Burden
per
Respondent
26 hours
11 hours
4 hours

Total
Burden

2,200 hours
400 hours
100 hours
2,700 hours

Total Burden:
Combining the three Information Collections, the Bureau estimates that the total
reporting, ongoing recordkeeping, and third party disclosure requirement costs allocated to the
CFPB under Regulation C are 391,000, 296,000, and 2,700 hours per year, respectively, for a
total estimate of 690,000 burden hours per year.
Total Burden under Current Rule, all Information Collections – Financial Institutions
Reporting to the CFPB
Number of
Total Burden
Total
Respondents
per
Burden
Respondent
(rounded to the
thousands)
Tier One
84
Tier Two
39
Tier Three
22
Total Estimated Burden for CFPB Respondents

7,697 hours
1,079 hours
77 hours

646,000 hours
42,000 hours
2,000 hours
690,000 hours

The Bureau estimates that the total burden hours for all regulated financial institutions
required to report HMDA data is approximately 6,043,000 hours per year.
Page 9 of 19

Total Burden under Current Rule, all Information Collections- All Regulated Entities
Lower Bound Estimate
Number of Total
Respondents Burden per
respondent

Total
Burden
(Rounded to
Thousands)

Upper Bound Estimate
Number of Total
Respondents Burden per
respondent

Total
Burden (Rounded
to Thousands)

Tier One

288

7,697 hours

2,216,000
hours

216

7,697 hours

1,662,000 hours

Tier Two

2,015

1,079 hours

2,174,000 hours

5,110

1,079 hours

5,514,000 hours

Tier
Three

4,894

77 hours

376,000 hours

1,871

77 hours

144,000 hours

Total Estimated Burden for all Respondents (Rounded to 100 Thousands): 6,043,000 hours5

B. Information Collections under the New Final Rule
The Bureau has issued a final rule on October 15, 2015 containing new and revised
information collections under HMDA. The final rule is effective January 1, 2018, with certain
exceptions. First, financial institutions will begin reporting to the Bureau in 2018. Second, the
minimum loan-volume thresholds become effective January 1, 2017, removing an estimated
1,400 depository institutions that are currently covered from the rule’s information collection
requirements. Finally, quarterly reporting is effective January 1, 2020.
This final rule has three Information Collections under the PRA: (1) Reporting Requirements, (2)
Recordkeeping Requirements, and (3) Third Party Disclosure Requirements. Each of these
Information Collections is discussed in turn.
Information Collections under the New Final Rule for Financial Institutions Reporting to
the CFPB
Reporting:
Financial institutions are required annually to report HMDA data to the Bureau or to the
appropriate Federal agency. Under the Bureau’s methodology, the Reporting Requirement
covers 14 of the 18 operational tasks.6 Four of these 14 operational tasks are variable-cost tasks,
5

The Bureau estimates that, for all HMDA reporters, the burden hours will be approximately 4,766,000 to
7,319,000 hours per year. 6,043,000 is approximately the mid-point of this estimated range.
6
These are resolving reportability questions, transferring data to HMDA Management System (HMS), geocoding,
standard annual edit and internal checks, researching questions, resolving question responses, checking postsubmission edits, filing post-submission documents, using vendor HMS software, training, internal audits, external
audits, exam preparation, and exam assistance. As discussed below, transcribing data falls under the record keeping
Page 10 of 19

which vary by the number of applications.7 With all of the final changes and operational
modernization, the Bureau estimates that tier 3, tier 2, and tier 1 financial institutions will spend
approximately 36, 107, and 466 hours per year, respectively, on these four tasks. The estimated
hours spent on these four variable cost tasks will be the same for annual and quarterly reporters,
because the final adoption of quarterly reporting does not affect any of the variable cost tasks.
For the ten fixed-cost operational tasks covered by the Reporting Requirements, the Bureau
estimates that tier 3, tier 2, and tier 1 financial institutions that are required to report annually
will spend approximately 71, 1,125, and 5,503 hours per year, respectively, on these tasks.
Combining these results yields estimates of 107, 1,232, and 5,969 hours per year for tier 3, 2, and
1 annually-reporting financial institutions, respectively. Financial institutions with 60,000
covered loans and applications, combined, excluding purchased covered loans, that will be
required to report quarterly are most likely tier 1 institutions. For these institutions, the Bureau
estimates 934 burden hours in addition to the burden hours associated with annual reporting.
The estimated burden hours for quarterly-reporting financial institutions is approximately 6,903
hours per year.
In 2013, 145 financial institutions reported HMDA data to the CFPB. These 145 financial
institutions are depository institutions with over $10 billion in assets and affiliates of these
institutions.8 Using LAR counts as a proxy to assign these 145 financial institutions into tiers
yields 84 tier 1 insitutions, 39 tier 2 institutions and 22 tier 3 institutions. Eighteen of these 145
institutions reported over 60,000 records, and would therefore be required to report data
quarterly. The Bureau estimates that the time burden for annual and quarterly reporters under the
Reporting Requirements Information Collection would be approximately 672,000 and 188,000
hours per year, respectively, for a total estimated burden hours of 860,000 per year.
Total Burden, Reporting Requirements-Financial Institutions Reporting to the CFPB
Number of
Respondents

Tier One: Annual Reporter
Tier One: Quarterly Reporter
Tier Two
Tier Three
Total

66
18
39
22
145

Total Burden
per
Respondent *
9,014 hours
10,424 hours
1,861 hours
161 hours
NA

Total
Burden
(Rounded to
Thousands)
595,000 hours
188,000 hours
73,000 hours
4,000 hours
860,000 hours

* The Bureau estimates that approximately 145 financial institutions will be required to report HMDA data
for closed-end mortgage loans to the CFPB after implementation of the final rule. This is reflected in the
column conveying the number of respondents (145 = 66+18+39+22). The Bureau estimates that 74 of these
financial institutions will also be required to report data for open-end lines of credit. The Bureau estimates
requirement, and creating the public LAR, distributing the public LAR, and creating the notice for obtaining the
disclosure statement all fall under the Third Party Disclosure Requirement.
7
The four variable cost tasks are transferring data to HMS, resolving reportability questions, geocoding, and
researching questions.
8
Note even though CFPB had supervisory authority over all non-depository institutions on all consumer financial
protection related matter, most nondepository institutions report HMDA data to HUD.
Page 11 of 19

that 11 of these financial institutions will be tier 3, 20 tier 2, 9 tier 1 financial institutions that report quarterly
and 34 tier 1 financial institutions that report annually. The estimates of total burden in the table include
reporting of closed-end mortgage loans for all respondents indicated in the number of respondents column,
plus reporting of open-end lines of credit for the subset of respondents that will also be required to report
open-end lines of credit. The total burden per respondent in the table is total burden divided by number of
respondents, and therefore does not reflect the specific burden hours for either respondents that report only
closed-end mortgage loans or that report both closed-end mortgage loans and open-end lines of credit.

Recordkeeping:
The Recordkeeping Requirement covers the requirements that financial institutions
maintain a copy of both the submitted annual loan/application register and a notice of its
availability for three years, maintain the notice of availability of their disclosure statements for
five years, and update information regarding reportable transactions quarterly. To maintain data,
the primary time burden is the time needed to copy this information to electronic data storage
devices, such as a hard drive or disk. Given the prevalence and low cost of modern computer
technology, the Bureau believes that this time burden is negligible. The Bureau regards the task
of transcribing data as the key operational task that is directly related to recordkeeping. This task
is not affected by whether the financial institution is required to report annually or quarterly,
since transcribing data for reportable transactions under HMDA is not affected by reporting
frequency. The calculation of the burden hours for record keeping requirements is based on the
estimated cost of transcribing the data. The Bureau estimates that tier 3, tier 2, and tier 1
financial institutions will spend approximately 27, 83, and 4,130 hours per year transcribing data,
respectively. The Bureau estimates that the time burden for annual and quarterly reporters under
the Recordkeeping Requirements Information Collection would be approximately 418,000 and
112,000 hours per year, respectively, for a total estimated burden hours of 530,000 per year.
Total Burden, Recordkeeping Requirements-Financial Institutions Reporting to the CFPB
Number of
Respondents

Tier One: Annual Reporter
Tier One: Quarterly Reporter
Tier Two
Tier Three
Total

66
18
39
22
145

Total Burden
per
Respondent*
6,237 hours
6,237 hours
125 hours
40 hours
NA

Total
Burden
(Rounded to
Thousands)
412,000 hours
112,000 hours
5,000 hours
1,000 hours
530,000 hours

* The Bureau estimates that approximately 145 financial institutions will be required to report HMDA data
for closed-end mortgage loans to the CFPB after implementation of the final rule. This is reflected in the
column conveying the number of respondents (145 = 66+18+39+22). The Bureau estimates that 74 of these
financial institutions will also be required to report data for open-end lines of credit. The Bureau estimates
that 11 of these financial institutions will be tier 3, 20 tier 2, 9 tier 1 financial institutions that report quarterly
and 34 tier 1 financial institutions that report annually. The estimates of total burden in the table include
reporting of closed-end mortgage loans for all respondents indicated in the number of respondents column,
plus reporting of open-end lines of credit for the subset of respondents that will also be required to report
open-end lines of credit. The total burden per respondent in the table is total burden divided by number of
Page 12 of 19

respondents, and therefore does not reflect the specific burden hours for either respondents that report only
closed-end mortgage loans or that report both closed-end mortgage loans and open-end lines of credit.

Third Party Disclosure:
The Third Party Disclosure Requirement covers the requirements that financial
institutions make available a notice informing the public that the institution’s modified
loan/application register and disclosure statement may be obtained on the Bureau’s website. .
These requirements correspond to three operational tasks: creating the modified loan/application
register, distributing the modified loan/application register, and creating the notice for obtaining
the disclosure statements. The Bureau estimates that tier 3, tier 2, and tier 1 financial institutions
would spend approximately 0, 0, and 5 hours per year, respectively, on these operational tasks.
The estimated time burden would be the same for quarterly reporters and annual reporters. The
Bureau estimates that the time burden for annual and quarterly reporters under the Third Party
Disclosure Requirements Information Collection would be approximately 360 and 100 hours per
year, respectively, for a total estimated burden hours of 460 hours per year.

Total Burden, Third Party Disclosure Requirements-Financial Institutions Reporting to
the CFPB
Number of
Respondents

Tier One: Annual Reporter
Tier One: Quarterly Reporter
Tier Two
Tier Three
Total

66
18
39
22
145

Total Burden
per
Respondent*
5 hours
5 hours
0 hours
0 hours
NA

Total
Burden
(Rounded to Tens)
360 hours
100 hours
0 hours
0 hours
460 hours

* The Bureau estimates that approximately 145 financial institutions will be required to report HMDA data
for closed-end mortgage loans to the CFPB after implementation of the final rule. This is reflected in the
column conveying the number of respondents (145 = 66+18+39+22). The Bureau estimates that 74 of these
financial institutions will also be required to report data for open-end lines of credit. The Bureau estimates
that 11 of these financial institutions will be tier 3, 20 tier 2, 9 tier 1 financial institutions that report quarterly
and 34 tier 1 financial institutions that report annually. The estimates of total burden in the table include
reporting of closed-end mortgage loans for all respondents indicated in the number of respondents column,
plus reporting of open-end lines of credit for the subset of respondents that will also be required to report
open-end lines of credit. The total burden per respondent in the table is total burden divided by number of
respondents, and therefore does not reflect the specific burden hours for either respondents that report only
closed-end mortgage loans or that report both closed-end mortgage loans and open-end lines of credit.

Total Burden:
Combining the three Information Collections, the Bureau estimates that the total burden
of the reporting, ongoing recordkeeping, and third party disclosure requrirements under the final
rule for annual and quarterly CFPB reporters will be 1,089,000 and 300,000 hours per year,
Page 13 of 19

respectively, for a total estimate of 1,389,000 burden hours per year. This represents an increase
of approximately 699,000 burden hours per year for HMDA reporters that report to the CFPB.
Total Burden under New Final Rule, all Information Collections – Financial Institutions
Reporting to the CFPB
Information
Collection
Requirement
Tier one
Annual
Reporters
Recordkeeping
requirements
Tier one
Annual
Reporters
Reporting
requirements
Tier one
Annual
Reporters
Disclosure
requirements
Tier one
Quarterly
Reporters
Recordkeeping
requirements
Tier one
Quarterly
Reporters
Reporting
requirements
Tier one
Quarterly
Reporters
Disclosure
requirements
Tier Two
Recordkeeping
requirements
Tier two
reporting
requirements
Tier two
Disclosure
requirements
Tier Three
Recordkeeping
requirements
Tier Three

No. of
Respondents

Type of IC

Frequency

Annual
Responses

Average
Response
Time*

66

Recordkeeping,

1

66

6,237

411,660

$33

$13,584,766

66

Reporting

1

66

9,014

594,954

$33

$19,633,468

66

3rd Party
disclosure

1

66

5

360

$33

$11,894

18

Recordkeeping,

4

72

1,559

112,271

$33

$3,704,936

18

Reporting

4

72

2,606

187,664

$33

$6,192,896

18

3rd Party
disclosure

4

72

1

98

$33

$3,244

39

Recordkeeping,

1

39

125

4,865

$33

$160,559

39

Reporting

1

39

1,861

72,572

$33

$2,394,869

39

3rd Party
disclosure

1

39

0

0

$33

$0

22

Recordkeeping,

1

22

40

884

$33

$29,180

22

Reporting

1

22

161

3,552

$33

$117,209

Annual
Burden
Hours

Hourly
Rate

Total
Burden
Hours

Page 14 of 19

reporting
requirements
22
3rd Party
1
22
0
0
$33
$0
Tier Three
disclosure
Disclosure
requirements
NA
Totals
145
NA
199
NA
1,388,880
NA
$45,833,040
* The Bureau estimates that approximately 145 financial institutions will be required to report HMDA data for closed-end
mortgage loans to the CFPB after implementation of the final rule. This is reflected in the column conveying the number of
respondents (145 = 66+18+39+22). The Bureau estimates that 74 of these financial institutions will also be required to
report data for open-end lines of credit. The Bureau estimates that 11 of these financial institutions will be tier 3, 20 tier 2, 9
tier 1 financial institutions that report quarterly and 34 tier 1 financial institutions that report annually. The estimates of
annual burden hours in the table include reporting of closed-end mortgage loans for all respondents indicated in the number
of respondents column, plus reporting of open-end lines of credit for the subset of respondents that will also be required to
report open-end lines of credit. The average response time in the table is annual burden hours divided by annual responses,
and therefore does not reflect the specific burden hours for either respondents that report only closed-end mortgage loans or
that report both closed-end mortgage loans and open-end lines of credit.

The Bureau estimates that, including the final changes, the burden will be approximately
8,300,000 hours per year for all HMDA reporters.9 This represents an increase of approximately
2,257,000 hours per year over the current burden for all HMDA reporters of 6,043,000 hours.
These estimates reflect the Bureau’s operational modernization efforts.
To estimate the burden hours for all HMDA reporters, the Bureau follows the mapping
approach used for the discussion of the potential benefits, costs, and impacts of the final rule,
described in Section VII of the final notice information. Specifically, the Bureau allocates
financial institutions across tiers using the two distributions described in the benefit-cost
discussion to provide upper and lower bounds for its estimates.10 After assigning each of the
7,197 HMDA reporters11 to a tier using the two distributions, the Bureau then makes two
adjustments. First, it adjusts the number of financial institutions to account for the estimated
1,400 depository institutions that will no longer be required to report, as well as the 450
nondepository institutions that will have to begin reporting. Given the small volume of
transactions processed by these financial institutions, the Bureau assumes all financial
institutions described under the first adjustment are most closely comparable to a representative
tier 3 institution. Therefore, it reduces the number of tier 3 financial institutions by 950.
Second, in the 2013 HMDA data, 29 financial institutions submitted a HMDA loan application
register with 60,000 or more records, and would therefore be required to report quarterly. Given
the high volume of transactions reported by these financial institutions, they are likely to be tier 1
financial institutions. The Bureau therefore separately itemizes the burden hour estimates for tier
1 financial institutions that would be required to report quarterly. Using both the distribution
assumptions and the institution-level hour estimates described above, the Bureau estimates that
the time burden for all institutions to gather and report data under HMDA will be approximately
9

The Bureau estimates that, for all HMDA reporters, the burden hours will be approximately 6,851,000 to 9,789,000
hours per year. 8,300,000 is approximately the mid-point of this estimated range.
10
The first distribution assumes the following composition among financial institutions: 68% tier 3, 28% tier 2, and
4% tier 1. The second distribution assumes the following composition among financial institutions: 26% tier 3, 71%
tier 2, and 3% tier 1.
11
The estimate of 7,197 HMDA reporters is derived from the 2013 HMDA data.
Page 15 of 19

6,851,000 to 9,789,000 hours per year. The mid-point of this range is approximately 8,300,000.

Total Burden, all Information Collections- All Regulated Entities
Number of
Respondents

Tier One
Annual
Reporter
Tier One
Quarterly
Reporter
Tier Two
Tier Three
Total

259

Lower Bound Estimate
Total Burden Total
per
Burden
respondent*
(Rounded to
Thousands)
10,448 hours 2,706,000 hours

Number of
Respondents

Upper Bound Estimate
Total Burden
Total
per
Burden (Rounded
respondent*
to Thousands)

187

10,583 hours

1,980,000 hours

29

11,036 hours

320,000 hours

29

11,036 hours

320,000 hours

2,015
3,943
6,250

1,619 hours
143 hours
NA

3,262,000 hours
563,000 hours
6,851,000

5,111
921
6,250

1,434 hours
173 hours
NA

7,330,000 hours
159,000 hours
9,789,000

Total Estimated Burden for all Respondents (Rounded to 100 Thousands): 8,300,000
hours12
* The Bureau estimates that approximately 6,250 financial institutions will be required to report HMDA data for
closed-end mortgage loans to the CFPB after implementation of the final rule. This is reflected in the column
conveying the number of respondents, where the total is rounded to the nearest 10. The Bureau estimates that 748 of
these financial institutions will also be required to report data for open-end lines of credit. These 748 financial
institutions consist of 273 tier 3 financial institutions, 466 tier 2 financial institutions and 9 tier 1 financial
institutions. The estimates of total burden in the table include reporting of closed-end mortgage loans for all
respondents indicated in the number of respondents column, plus reporting of open-end lines of credit for the subset
of respondents that will also be required to report open-end lines of credit. The total burden per respondent in the
table is total burden divided by number of respondents, and therefore does not reflect the specific burden hours for
either respondents that report only closed-end mortgage loans or that report both closed-end mortgage loans and
open-end lines of credit.

Associated Labor Costs:
To estimate the associated labor costs, the Bureau uses the burden hours described above,
along with a wage rate of $33 per hour, which is the national average wage for compliance
officers based on the most recent National Compensation Survey from the Bureau of Labor
Statistics (BLS). Based on these figures, the Bureau estimates that the ongoing record keeping
and reporting costs allocated to the CFPB under Regulation C is approximately $45,800,000.
For all HMDA reporters, the estimated costs are $273,900,000.13
13. Estimated Total Annual Non-Labor Cost to CFPB Respondents or Recordkeepers
12

The Bureau estimates that, for all HMDA reporters, the burden hours will be approximately 6,851,000 to
9,789,000 hours per year. 8,300,000 is approximately the mid-point of this estimated range.
13
The Bureau estimates that the labor costs will be approximately $226,100,000 to $323,000,000. $273,900,000 is
the mid-point of this estimated range.
Page 16 of 19

New Final Rule Estimated Total Annual Cost Burden to All CFPB Respondents or
Recordkeepers
Description of Costs (O&M)

Per Unit Costs

Quantity

Number of
Reporters

Costs

$13,000
$8,000
$0
$200
NA

1
1
1
1
NA

84
39
22
145
NA

$1,092,000
$312,000
$0
$29,000
$1,433,000

HMS software
Tier 1 Institution
Tier 2 Institution
Tier 3 Institution
LEI
Total

New Final Rule Estimated Total Annual Cost Burden to All Respondents or Recordkeepers
Description of Costs
(O&M)
HMS software
Tier 1 Institution
Tier 2 Institution
Tier 3 Institution
LEI
Total

Per Unit
Costs

Quantity

$13,000
$8,000
$0
$200
NA

1
1
1
1
NA

Lower Bound Estimate
Number of
Costs
Reporters
288
2,015
3,943
6,250
NA

$3,744,000
$16,120,000
$0
$1,250,000
$21,114,000

Upper Bound Estimate
Number of
Costs
Reporters
216
5,111
921
6,250
NA

$2,808,000
$40,888,000
$0
$1,250,000
$44,946,000

The non-labor-specific costs specific to complying with the Reporting, Recordkeeping,
and Third Party Disclosure Requirements include the annual fee for HMS software, and the
annual fee for the LEI. The Bureau estimates that this annual fee for HMS software is
approximately $0 for tier 3 institutions, $8,000 for tier 2 institutions and $13,000 for tier 1
institutions. The estimated annual fee for the LEI is approximately $200. Therefore, the total
estimated cost is $1,433,000 for CFPB-regulated entities and $33,030,000 for all regulated
entities.14
14. Estimated Cost to the Federal Government
The estimated one-time cost to the Federal Government to develop software for data
submission, edit checks, communication with reporters and geocoding is $13.5 million.
15. Program Changes or Adjustments for CFPB Reporters
Renewal of Existing Rule

Total Annual Burden
14

Total
Respondents
145

Annual
Responses
145

Burden Hours
690,000

Cost Burden
(O & M)
$0

The Bureau estimates that the annual non-labor costs will be approximately $21,114,000 to $44,946,000.
$33,030,000 is the mid-point of this estimated range.
Page 17 of 19

Requested
Current OMB
Inventory
Difference (+/-)
Program Change
Discretionary
New Statute
Violation
Adjustment

180

25,453

154,000

$0

-35
0
0
0
0
-35

-25,254
0
0
0
0
-25,308

+536,000
0
0
0
0
+536,000

$0
$0
$0
$0
$0
$0

The “adjustment” portion of the differences between current burden and estimates of
projected burden hours and costs are a result of different approaches used to construct these
estimates. Unlike for previous PRA HMDA submissions, estimates of projected burden and
costs are generated from a highly granular analysis of record-keeping, reporting, and disclosure
requirements, which broke down the process financial institutions use to gather and report
HMDA data into 18 specific tasks. The costs and burden hours of each of these tasks varied by
the complexity of the financial institution, as captured by three representative institutions: a highcomplexity institution, a moderately complexity institution, and a low-complexity institution.
The CFPB has also aggregated, for the purposes of these estimates, the reporting, recordkeeping,
and disclosure requirements for this rule into a single annual response for annual reporters, and 4
responses per year for quarterly reporters resulting in the reduction of responses under this rule.
New Final Rule

Total Annual Burden
Requested
Current OMB
Inventory15
Difference (+/-)
Program Change
Discretionary
New Statute
Violation
Adjustment

Total
Respondents
145

Annual
Responses
199

Burden Hours
1,388,880

Cost Burden
(O & M)
$1,433,000

145

199

690,000

0

0
0
0
0
0
0

0
0
0
0
0
0

+699,000
+699,000
+699,000
0
0
0

+$1,433,000
$29,000
$29,000
$0
$0
$1,404000

The changes in burden from the existing rule to the new rule are a result of changing
regulations and Statutes. The additional cost burden comes from the necessity to purchase new
software or update the software already used by covered institutions to comply with HMDA
reporting requirements that the new requirements will cause.
15

In this case, “current” means the burden as of the renewal of this collection, i.e. this chart captures the changes
from the chart above when the new rule is implemented
Page 18 of 19

16. Plans for Tabulation, Statistical Analysis, and Publication
The information is collected for use by the CFPB’s examination program and for
disclosure to the public after deletion of certain sensitive data elements.
17. Display of Expiration Date
The OMB number will be displayed in the PRA section of the notice of final rulemaking
and published in the Federal Register. Further, the OMB control number and expiration date will
be displayed on the Federal government’s electronic PRA docket at www.reginfo.gov.
18. Exceptions to the Certification Requirement
The Bureau certifies that this collection of information is consistent with the requirements
of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8(b)(3) and is not seeking an
exemption to these certification requirements.

Page 19 of 19