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 type of data does HMDA collect?
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.
Which transactions must HMDA data be collected and reported?
Generally speaking, unless a transaction is expressly excluded under 12 C.F.R. §1003.3(c), an institution subject to HMDA must report all consumer closed‐end mortgage loans and open-end lines of credit secured by a dwelling .
What is included in HMDA monitoring information?
HMDA requires that a creditor collect information on all applications for home purchase loans, home improvement loans, and refinancings . The information that HMDA collects regarding an applicant differs slightly from Reg. B. HMDA requires the collection of the applicant’s ethnicity, race, and sex.
What does HMDA Hoepa reporting requirements apply to?
What is HOEPA? Lenders are required to report whether a loan is subject to the provisions of the Home Ownership and Equity Protection Act .
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 transactions must be reported under HMDA?
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 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.
What is 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.
What is Reg Z in lending?
Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators . The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.
What information does the government monitoring information section ask for?
The creditor shall inform the applicant(s) that the information regarding ethnicity, race, sex, marital status, and age is being requested by the Federal Government for the purpose of monitoring compliance with Federal statutes that prohibit creditors from discriminating against applicants on those bases.
When should government monitoring information be collected?
Regulation B requires that the lender obtain the government monitoring information from all applicants for a loan to purchase or refinance a principal dwelling (other than temporary financings).
What are the three most common errors in HMDA reporting?
- Reporting Cash-out Refinancing rather than Refinancing for the Loan Purpose. ...
- Reporting Withdrawn rather than Approved Not Accepted. ...
- Reporting the wrong score (or not reporting one at all for loans approved but not accepted)
What are the 3 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 ...
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.
