Under HMDA and Regulation C, a transaction is reportable only
if it is an Application for, an origination of, or a purchase of a Covered Loan
. … If the transaction involves a Covered Loan, it is reported only if the institution meets the applicable loan-volume thresholds.
What is considered HMDA reportable?
HMDA requires lenders to
report the ethnicity, race, gender, and gross income of mortgage applicants and borrowers
. Lenders must also report information regarding the pricing of the loan and whether the loan is subject to the Home Ownership and Equity Protection Act, 15 U.S.C. 1639.
What is the purpose of HMDA reporting?
HMDA reporting allows
regulators to analyze information on mortgage loans and mortgage lending trends in a number of
categories, such as the number of pre-approvals made, the number of mortgages granted, loan amounts, and the purposes of individual loans.
What makes a commercial loan HMDA reportable?
Under Regulation C if a closed-end mortgage loan or an open-end line of credit is
for commercial/business purpose and is secured by a dwelling and is for a home purchase
, refinance (dwelling secured loan replacing dwelling secured loan) or home improvement then it is HMDA reportable.
How many fields are HMDA reportable?
Table 1 lists all
110 HMDA
data fields and their corresponding HMDA data points.
What types of loans are not HMDA reportable?
Business purpose loans
are only reported if the purpose is to purchase, refinance or improve a dwelling. This loan would not be HMDA reportable.
What is excluded from HMDA reporting?
Generally, a loan or line of credit must be secured by a Dwelling to be a Covered Loan. The 2015 HMDA Rule also lists Closed-End Mortgage Loans and
Open-End Lines of Credit secured only by vacant or unimproved land
as Excluded Transactions.
Who is exempt from HMDA?
In order for a partial exemption to apply, an eligible financial institution must meet a loan-volume threshold. The threshold is whether the institution originated
fewer than 500 of closed-end loans and open-end lines of credit
, counted separately, during each of the two preceding calendar years.
Which kind of loans are covered by HMDA?
Thus, a financial institution must collect, record, and report data for dwelling-secured, business-purpose loans and lines of credit that are
home improvement loans, home purchase loans
, or refinancings if no other exclusion applies.
What are the three purposes of HMDA?
The data- related requirements in HMDA and Regulation C serve three primary purposes:
(1) to help determine whether financial institutions are serving their communities’ housing needs; (2) to assist public officials in distributing public investment to attract private investment
; and (3) to assist in identifying …
Are HMDA loans denied reportable?
All HMDA Reporters Will Have To Report Reasons for Denial
If the HMDA reportable loan was denied,
an institution must report the principal reasons for denial
. … For loans that were not denied, this data point should be reported as being not applicable.
Is a prequalification HMDA reportable?
Similarly, if the financial institution calls its product a preapproval but does not conduct a full credit underwriting and attaches both credit and collateral conditions, the product is a prequalification product and
is not reportable for HMDA
.
Are investment properties HMDA reportable?
Under HMDA,
all consumer purpose dwelling secured loans are reportable
, absent defined exceptions. BUT, a business purpose dwelling secured loan is sometimes not reportable; this depends on the actual use of the funds. … This is reportable, and the proceeds of the loan are used for an “other” purpose.
Is HMDA training required?
A financial institution’s HMDA data is one of the primary tools used by examiners to determine compliance with Fair Lending laws. … It is imperative that financial institutions invest
adequate resources
(training, personnel, systems, etc.) to ensure compliance with these requirements.
What is the map rule?
The Mortgage Acts and Practices – Advertising Rules (MAP Rules) are
designed to prohibit misrepresentations in a commercial communication regarding mortgage products.
What is a universal loan identifier?
The Universal Loan Identifier (ULI) is
a unique number of 23 to 45 characters that begin with your Legal Identity Identifier
. … Financial institutions can go to the Global LEI Foundation website, to obtain an LEI.
