A GUIDE TO HMDA Reporting - ffiec.gov

1 EDITION EFFECTIVE JANUARY 1, 2013. (For HMDA Submissions due March 1, 2014). A GUIDE TO. HMDA. Reporting Getting It Right! Federal Financial Institutions Examination Council LOAN/APPLICATION REGISTER Page of Name of Reporting Institution City, State, ZIP. All columns (except Reasons for Denial) must be completed for each entry. See the instru Application or Loan Information Date Application Application or Received Loan Number (mm/dd/ccyy). Example of Loan Originated Following Preapproval L B - 6 8 7 4 3 9 01/15/2012. Example of Preapproval Request Denied 5 6 7 8 9 0 4 3 2 1 1 2 3 4 0 9 8 7 6 5 06/01/2012. Example of Application Denied 5 6 7 8 9 0 4 3 2 1 1 2 3 4 0 9 8 7 6 5 03/20/2012. A GUIDE TO. HMDA. Reporting Getting It Right! Edition effective January 1, 2013 (for HMDA submissions due March 1, 2014 or later). This edition of the GUIDE is the comprehensive edition for use with 2013. calendar year data (due March 1, 2014). Appendices include the Consumer Financial Protection Bureau's Regulation C ( home mortgage Disclosure); the Instructions for Completion of the HMDA Loan/Application Register (LAR); the commentary to Regulation C; the home mortgage Disclosure Act; state and county codes, together with metropolitan statistical area (MSA) and metropolitan division (MD) numbers; contact information for the federal supervisory agencies.

2 And the HMDA poster. April 2013. Contents Foreword iv Introduction Purposes of HMDA 1. Data Collection, Reporting , and Disclosure in a Nutshell 1. Management's Responsibilities 2. Who Must Report Coverage Criteria 3. Definition of a Branch Office 5. Mergers and Acquisitions 5. Exemptions Based on State Law 6. Brokered or Correspondent Loans: Who Reports? 6. Data Reporting in General The Loan/Application Register (LAR) 7. Transactions to be Reported 8. Information to be Reported about Each Transaction 8. Transactions Not to be Reported 9. Completing the LAR Step by Step Caveat 10. Application or Loan Information 10. Action Taken 12. Property Location 13. Applicant Information 15. Sale of the Loan 16. Reasons for Denial 16. Loan Price and Lien Status 16. Sources of Geographic Information (Geocoding Tools) 18. Census Tract Street Address Lookup Resources 18. Census Tract Map Resources 18. ii Submitting the LAR. Review and Contact Information 21. Checklist for Person Completing the LAR 22.

3 Checklist for the Reviewing Officer 23. Editing the Data 24. Transmitting the Data 24. Resubmitting the Data 24. Disclosing the Data Disclosure of a Modified LAR 26. Disclosure Statements Prepared by the ffiec 26. Aggregate Tables Prepared by the ffiec 26. Glossary 27. Appendices A Form and Instructions for Completion of HMDA Loan/Application Register A-1. B Form and Instructions for Data Collection on Ethnicity, Race, and Sex B-1. C Regulation C C-1. D Commentary to Regulation C D-1. E The home mortgage Disclosure Act E-1. F State and County Codes and MSA/MD Numbers F-1. G Federal HMDA Reporting Agencies G-1. H HMDA Poster H-1. iii Foreword A GUIDE to HMDA Reporting : Getting It Right! will assist you in complying with how the information should be reported on the HMDA loan/application the home mortgage Disclosure Act as register, and implemented by The Consumer Finan how the data will be disclosed to the cial Protection Bureau's Regulation C, 12 public by the institution and the ffiec .

4 Part 1003 (Regulation C). The GUIDE was written to address the needs of finan The ffiec produces a public disclosure cial institution managers and employees statement for every covered institution responsible for HMDA compliance. and for every metropolitan statistical area (MSA) and metropolitan division (MD). The The GUIDE was developed by the member disclosures and other HMDA data are agencies of the Federal Financial Institu available from the ffiec , by accessing tions Examination Council ( ffiec ) the the ffiec Internet site, Consumer Financial Protection Bureau hmda, or by sending an e-mail to (CFPB), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), the Board This GUIDE is a general statement of the of Governors of the Federal Reserve Sys requirements of HMDA and Regulation tem (Board), and the National Credit Union C, not a verbatim restatement of the law. Administration (NCUA) and the Depart To comply fully with HMDA, you must be ment of Housing and Urban Development familiar with (HUD).

5 Regulation C (reproduced in Appendix C to this GUIDE ), including its This edition of the GUIDE re ects several Appendices A and B (reproduced in changes resulting from the Dodd-Frank Appendices A and B to this GUIDE ), Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). The the Commentary to Regulation C. Dodd-Frank Act transferred rulemaking (reproduced in Appendix D to this authority under HMDA from the Board to GUIDE ), and the CFPB. In addition, the Dodd-Frank informal guidance the CFPB may Act granted the CFPB supervisory and issue from time to time on the web site enforcement authority for entities under of the ffiec . its jurisdiction. The Act also abolished the Of ce of Thrift Supervision. In December The GUIDE merely supplements, and does 2011, the CFPB restated the Board's not substitute for, those sources. For fur . implementing regulation, Regulation C, ther information about compliance, con . to 12 1003 (76 Fed. Reg. 78465 tact your federal HMDA Reporting agency (December 19, 2011)).

6 The GUIDE has (see Appendix G to this GUIDE ). been updated to re ect these changes. The ffiec welcomes suggestions for The Introduction reviews HMDA's pur changes or additions that might make this poses and data collection, Reporting , and GUIDE more helpful. Write to disclosure requirements. It also summa ffiec , 3501 Fairfax Drive, rizes management's responsibilities. The Room B-7081a, remaining parts of the GUIDE describe in Arlington, VA 22226. more detail: Or send e-mail to what information a covered institution must collect, iv Introduction Purposes of HMDA. The home mortgage Disclosure Act Who Must Report. There are three categories of loans that of 1975, as amended, requires many must be reported: home purchase, home depository and nondepository lenders to improvement, and refinancing. Each has collect and publicly disclose information a specific definition, which may vary from about housing-related loans and your institution's use of the term. You will applications for such loans, including find the definitions in the chapter Data several applicant/borrower characteristics.

7 Reporting in General. There you will HMDA is implemented by the Consumer also find a list of types of transactions Financial Protection Bureau's Regulation that are not reportable under HMDA. C (12 Part 1003), which includes commentary (12 Part 1003 Supp. I). Every loan application, origination, and purchase that falls into one or more of the The housing-loan data that lenders must three categories must be reported. With disclose under HMDA: some exceptions, for each transaction show whether financial institutions the lender reports data about: are serving the housing needs of their the loan, such as its type and amount;. communities; the property, such as its location and assist public officials in distributing type;. public-sector investment so as to the disposition of the application, such attract private investment to areas as whether it was denied or where it is needed; and resulted in an origination; and assist in identifying possible discrimina the applicant (namely, ethnicity, race, tory leanding patterns and enforcing sex, and income).

8 Antidiscrimination statutes. That information must be recorded on HMDA does not prohibit any lending a form known as the HMDA loan/appli . activity, nor is it intended to encourage cation register (variously known as the unsound lending practices or the alloca HMDA-LAR, the LAR, or the register). tion of credit. A summary of the instructions for com . pleting the LAR appears in the chapter Data Collection, Reporting , Completing the LAR Step by Step. and Disclosure in a Nutshell As implemented by the Bureau's Regula Additional information essential to tion C, HMDA requires covered depository Reporting property location appears in the and nondepository institutions to collect chapter Sources of Geographic and publicly disclose information about Information (Geocoding Tools). applications for, originations of, and pur . chases of home purchase loans, home improvement loans, and refinancings. Whether an institution is covered depends generally on its asset size, its location, and whether it is in the business of residential mortgage lending.

9 The regulation's cover . age criteria are illustrated in diagrams in the next chapter. 1. Introduction An institution must transmit its LAR to Appropriate record entries are made the data processor ( ffiec ), ordinarily in on the LAR within thirty calendar days electronic form, and preferably by using after the end of the calendar quarter the Submission via Web option or Inter in which final action occurs (such as net e-mail with an encrypted file (HRID_ origination or purchase of a loan, or ) attachment. Instruc denial or withdrawal of an application). tions concerning transmittal can be found For loans sold, the type of purchaser in Submitting the LAR. Every Reporting may be added later. institution must also disclose its LAR to the An officer of the institution monitors public after deleting information that might the collection of the loan/application compromise consumer privacy. See Dis data during the course of the year for closing the Data. compliance with the Reporting instruc.

10 Tions and reviews the accuracy of the The ffiec , on behalf of the agencies, cre data submitted to ffiec , as the insti . ates a series of tables from each institu tution's data processor, at year-end. tion's data. Every institution must make its The loan/application data are submit . tables available to the public. In addition, ted annually on time (by March 1 fol . the ffiec will prepare and release tables lowing the calendar year of the data), that aggregate all Reporting institutions'. and the institution responds promptly data by metropolitan statistical area or to any questions that may arise during metropolitan division. Those disclosures processing of the data submitted. are discussed in more detail in Disclosing the Data. Administrative sanctions. Given the importance of accurate and timely sub . Management's mission of HMDA data, a violation of Responsibilities the Reporting requirements may subject If your institution is required to comply with the Reporting institution to administrative HMDA, management must ensure that: sanctions, including the imposition of civil Procedures are in place for collecting money penalties, where applicable.