No, we do not believe that these transactions are reportable under the Home Mortgage Disclosure Act (HMDA) and Regulation C, because they are not “extensions of credit.”
The HMDA and Regulation C require your bank to report closed-end and open-end extensions of credit. The official interpretations in Regulation C clarify that a modification, renewal, extension, or amendment that does not satisfy and replace an existing loan is not reportable because it is not an extension of credit.
For resources related to our guidance, please see:
-
Regulation C, 12 CFR 1003.4(a) (“A financial institution shall collect data regarding . . . covered loans that it originates . . . .”)
-
Regulation C, 12 CFR 1003.2(e) (“Covered loan means a closed-end mortgage loan or an open-end line of credit that is not an excluded transaction under §1003.3(c).”)
-
Regulation C, 12 CFR 1003.2(d) (“Closed-end mortgage loan means an extension of credit that is secured by a lien on a dwelling and that is not an open-end line of credit under paragraph (o) of this section.”)
-
Official Interpretations, Regulation C, Paragraph 2(d), Comment 2 (“ . . . In general, extension of credit under § 1003.2(d) refers to the granting of credit only pursuant to a new debt obligation. Thus, except as described in comments 2(d)-2.i and .ii, if a transaction modifies, renews, extends, or amends the terms of an existing debt obligation, but the existing debt obligation is not satisfied and replaced, the transaction is not a closed-end mortgage loan under § 1003.2(d) because there has been no new extension of credit. . . .”)
-
Official Interpretations, Regulation C, Paragraph 2(o), Comment 2 (“Extension of credit has the same meaning under § 1003.2(o) as under § 1003.2(d) and comment 2(d)-2. Thus, for example, a renewal of an open-end line of credit is not an extension of credit under § 1003.2(o) and is not covered by Regulation C unless the existing debt obligation is satisfied and replaced. . . .”)