Topic: Home Mortgage Disclosure Act of 1975 (HMDA)
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For HMDA reporting purposes, do we need to consider the Illinois High Risk Home Loan Act when reporting whether a loan is a HOEPA loan?
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No, you do not need to consider the Illinois High Risk Home Loan Act’s requirements when reporting for HMDA purposes. The HMDA reporting instructions require you to report whether a loan is subject to the federal Home Ownership and Equity Protection Act of 1994, without reference to state law.
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After we rejected a loan application, the applicant came to us with additional cash flow information. Should we treat this additional information as a new application, and how should we report this in our HMDA register?
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Your bank has the flexibility to determine whether it will categorize the applicant’s furnishing of additional cash flow information as a new application or as a continuation of a prior application. Both the Home Mortgage Disclosure Act (HMDA) regulations and the adverse action notice regulations under the Equal Credit Opportunity Act (ECOA) define an “application”…
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We are making an unsecured loan to purchase a primary residence. Would this be subject to RESPA, Regulation Z, or the HPML requirements?
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We believe that an unsecured loan would be exempt from the higher-priced loan requirements, the RESPA rules, and the HMDA requirements (which are contained in Section X of Fannie Mae’s Uniform Residential Loan Application form). All three regulations apply only to loans that are secured by certain types of properties, as explained below, and therefore…
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Are bridge loans that the borrower does not intend to convert into permanent financing subject to RESPA or HMDA?
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Both the RESPA and HMDA regulations exempt “temporary financing” (“such as bridge or construction loans” or “such as a construction loan,” respectively). 24 CFR 3500.5(b)(3) (RESPA); 12 CFR 1003.4(d)(3) (HMDA). But, if a short-term loan is not designed to “bridge” a borrower to a longer-term, permanent loan, it is not considered temporary financing. As explained…
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Should we use the word “gender” or “sex” in the Home Mortgage Disclosure Act notice/sign? We say “gender,” but the FFIEC suggests “sex”.
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Regulation C does not require use of the model HMDA disclosure and allows you to use “any text that meets the requirements of the regulation.” Comment 1, Official Staff Commentary, 12 CFR 1003.5(e). If you do want to follow the model form, note that the 2002 amendment to Regulation C replaced the word “gender” with…
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Is it acceptable to collect government monitoring information (GMI) for construction loans if the intent is the make the loan permanent?
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Whether you can collect government monitoring information (GMI) depends on whether the loan is considered a “home purchase loan,” “home improvement loan,” or a “refinancing.” Regulation B prohibits banks from collecting information about race, color, religion, national origin, or sex unless they are required to collect information required by regulations such as Regulation C (the…
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We have a borrower who wants to refinance a loan for a residential building located a couple of doors down from where he lives, which he uses exclusively for his business. Is this a HMDA reportable loan?
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The Federal Reserve’s rules on home mortgage disclosures — also adopted by HUD and by all of the bank regulatory agencies — requires a financial institution to “collect data regarding applications for, and originations and purchases of, home purchase and home improvement loans (including refinancings of both) for each calendar year.” The rule goes on…