In response to a September 2022 ruling vacating a portion of the CFPB’s 2020 Home Mortgage Disclosure Act (HMDA) final rule that amended the reporting threshold for closed-end mortgage loans, the NCUA informed credit unions Thursday that it intends to take a “flexible supervisory and enforcement approach” to the final rule.

In the letter to credit unions, the agency stated that it will take an approach similar to that taken by the CFPB, which stated that that financial institutions affected by this change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with their reporting obligations.

The decision by the U.S. District Court for the District of Columbia means that the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA final rule, rather than the 100-loan threshold set by the 2020 HMDA final rule.