The CFPB published a blog post yesterday, December 6, 2022, regarding the change to the closed-end threshold, which is going back (apparently has gone back) to 25 from 100 closed-end HMDA reportable loans in each of the prior 2 calendar years. In the blog post, the Bureau says the change back to a closed-end threshold… Continue reading Reduced HMDA Closed-end Threshold Now in Effect
HMDA Closed-end Threshold Overturned in Federal Court
The federal district court for the District of Columbia recently, as a result of a lawsuit by a number of community groups with an interest in fair lending and redlining, invalidated the increase in the HMDA closed-end reporting threshold from 25 to 100. The court ruling did not address the open-end threshold of 200, which was… Continue reading HMDA Closed-end Threshold Overturned in Federal Court
Repurchased Loans and HMDA Reporting
HMDA reporters must report repurchased loans as a separate transaction on the HMDA LAR. This reporting is required whether the loan is repurchased in the year of origination or in a subsequent year. The citation for repurchased loan reporting is §1003.4(a)-5. Why Are Loans Repurchased? A common reason for repurchase is default by the borrower.… Continue reading Repurchased Loans and HMDA Reporting
Resubmitting HMDA Data
Resubmitting HMDA data is very simple, once the errors have been corrected. Refiling is done using the exact same procedure as the original submission. Simply sign in, upload your corrected file, review the edits and correct any identified errors, and complete the final submission. The entire file must be submitted again. You receive a confirmation… Continue reading Resubmitting HMDA Data
Looking at Signatures – Who is the Borrower?
Who is the borrower for HMDA reporting? Look at who signed the note and how they signed. Did the individual sign only on behalf of an entity? When a natural person signs a note only as trustee, only the trust is liable for the loan. The natural person will normally guarantee the loan. You would… Continue reading Looking at Signatures – Who is the Borrower?
Income Reporting for HMDA
1003.4(a)(10)(iii) Round to nearest thousand – Examples: • 500 and up round up and report as 1;• 36,500 to 36,999 – round up and report as 37;• 36,000 to 36,499 – round down and report as 36;• 500 to 999 total income, round up and report as 1;• 1 to 499 total income, round down… Continue reading Income Reporting for HMDA
Application Date and HMDA
Despite some information floating around in the Compliance world, there is no separate application date just for HMDA. An application begins under Regulation B and that application date is THE application date. The application date does not change when the TRID LE is triggered or when an application becomes HMDA reportable. Application Process is a… Continue reading Application Date and HMDA
Assumptions and HMDA
Key Points Regarding Loan Assumptions Assumptions are extensions of credit for HMDA. HMDA requires reporting for extensions of credit and applications for extensions of credit. (1003.2(d)). A request for an assumption of an existing loan or line is an application for credit. Assumptions – The financial institution enters into a written agreement accepting a new… Continue reading Assumptions and HMDA
Temporary Financing & HMDA
One of the most frequent HMDA topics I am asked about is temporary financing. It is actually not that complicated and a little study will help you to remember the rules. You can read all about temporary financing in the HMDA regulation, 1003.3(c)(3). There is also a discussion in the preamble to the regulation issued… Continue reading Temporary Financing & HMDA
Modifications and HMDA
HMDA pointer on a frequently asked topic! Modifications (other than NY State CEMAs) are never reported for HMDA (but see below about a planned modification of a temporary loan such as construction to permanent financing.) Modifications are also often called Change in Term Agreements. The reason modifications are not HMDA reportable is because they are… Continue reading Modifications and HMDA