A GUIDE TO HMDA Reporting - FFIEC Home Page

1 EDITION EFFECTIVE JANUARY 1, 2010. (For HMDA Submissions due March 1, 2011). 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 t 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 01/15/2010. 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 06/02/2010. Example of Application Denied 0 1 2 3 4 5 6 7 8 9 - 9 8 7 6 5 4 3 2 1 0 03/15/2010. A GUIDE TO. HMDA. Reporting Getting It Right! Edition effective January 1, 2010. (for HMDA submissions due March 1, 2011 or later). This edition of the GUIDE is the comprehensive edition for use with 2010.

2 Calendar year data (due March 1, 2011). Appendices include the Federal Reserve Board's Regulation C (Home Mortgage Disclosure); the Instructions for Completion of the HMDA Loan/Application Register (LAR); the staff commentary to the regulation; 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; and the HMDA poster. June 2010. 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.

3 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. Officer's Certification and Contact Information 22. Checklist for Person Completing the LAR 23. Checklist for the Certifying Officer 24. Editing the Data 25. Transmitting the Data 25. Resubmitting the Data 25. Disclosing the Data Disclosure of a Modified LAR 27. Disclosure Statements Prepared by the FFIEC 27. Aggregate Tables Prepared by the FFIEC 27.

4 Glossary 28. 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 Staff 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 Supervisory 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 data will be disclosed to the public by the institution and the FFIEC . the Home Mortgage Disclosure Act as implemented by Regulation C. The GUIDE The FFIEC produces a public disclosure was written to address the needs of finan statement for every covered institution cial institution managers and employees and for every metropolitan statistical area responsible for HMDA compliance.

5 (MSA) and metropolitan division (MD). The disclosures and other HMDA data are The GUIDE was developed by the member available from the FFIEC , by accessing agencies of the Federal Financial Institu the FFIEC Internet site, tions Examination Council ( FFIEC ) the hmda, by sending an e-mail to hmda . Office of the Comptroller of the Currency or by calling the Board's (OCC), the Federal Deposit Insurance Cor HMDA Assistance Line, (202) 452-2016. poration (FDIC), the Office of Thrift Supervi . sion (OTS), the Board of Governors of This GUIDE is a general statement of the the Federal Reserve System (Board), and requirements of HMDA and Regulation the National Credit Union Administration C, not a verbatim restatement of the law. (NCUA) and the Department of Housing To comply fully with HMDA, you must be and Urban Development (HUD).

6 Familiar with Regulation C (reproduced in This new edition of the GUIDE re ects the Appendix C to this GUIDE ), including its substantial amendments to Regulation C Appendices A and B (reproduced in that took effect on January 1, 2004. Other Appendices A and B to this GUIDE ), changes to the GUIDE , such as breaking it the Staff Commentary to Regulation into more chapters and adding references C (reproduced in Appendix D to this to the regulation and staff commentary, GUIDE ), and are intended to make it more useful as a training and compliance GUIDE . The informal guidance the Board may Questions and Answers section has issue from time to time on the web site been omitted from the GUIDE , but will be of the FFIEC (for example, in the form available on the web site of the FFIEC of Questions and Answers). ( ). The GUIDE merely supplements, and does The Introduction reviews HMDA's pur not substitute for, those sources.

7 For fur . poses and data collection, Reporting , and ther information about compliance, con . disclosure requirements. It also summa tact your federal supervisory agency (see rizes management's responsibilities. The Appendix G to this GUIDE ). remaining parts of the GUIDE describe in more detail: The FFIEC welcomes suggestions for changes or additions that might make this what information a covered institution GUIDE more helpful. Write to FFIEC , 3501. must collect, Fairfax Drive, Room B-7081a, how the information should be reported Arlington, VA 22226. Or send e-mail to on the HMDA loan/application register, and iv Introduction Purposes of HMDA. The Home Mortgage Disclosure Act, Who Must Report. There are three categories of loans that enacted by Congress in 1975 and made must be reported: home purchase, home permanent in 1988, requires depository improvement, and refinancing.

8 Each has and nondepository lenders to collect a specific definition, which may vary from and publicly disclose information about your institution's use of the term. You will housing-related loans and applications for find the definitions in the chapter Data such loans, including several applicant/ Reporting in General. There you will borrower characteristics. HMDA is also find a list of types of transactions implemented by the Federal Reserve that are not reportable under HMDA. Board's Regulation C (12 CFR Part 203). and a staff commentary (12 CFR Part 203, Every loan application, origination, and Supp. I). purchase that falls into one or more of the three categories must be reported. With The housing-loan data that lenders must some exceptions, for each transaction disclose under HMDA: the lender reports data about: show whether financial institutions are the loan, such as its type and amount.

9 Serving the housing credit needs of the property, such as its location and their neighborhoods and communities; type;. assist in directing government officials the disposition of the application, such and private investors to areas that may as whether it was denied or need investment; and resulted in an origination; and help identify possible discriminatory the applicant (namely, ethnicity, race, lending patterns and assist regulatory sex, and income). agencies in enforcing compliance with antidiscrimination statutes. That information must be recorded on a form known as the HMDA loan/appli . HMDA does not prohibit any activity, nor is cation register (variously known as the it intended to encourage unsound lending HMDA-LAR, the LAR, or the register). practices or the allocation of credit. A summary of the instructions for com.

10 Pleting the LAR appears in the chapter Data Collection, Reporting , Completing the LAR Step by Step. and Disclosure in a Nutshell As implemented by Regulation C, HMDA Additional information essential to requires covered depository and non- Reporting property location appears in the depository institutions to collect and pub chapter Sources of Geographic licly disclose information about applica Information (Geocoding Tools). tions for, originations of, and purchases of home purchase loans, home improvement loans, and refinancings. Whether an insti . tution is covered depends generally on its asset size, its location, and whether it is in the business of residential mortgage lend . ing. The regulation's coverage criteria are illustrated in diagrams in the next chapter, 1. Introduction An institution must transmit its LAR to Appropriate record entries are made the processing agency indicated by on the LAR within thirty calendar days its supervisory agency, ordinarily in after the end of the calendar quarter electronic form, and preferably by using in which final action occurs (such as the Submission via Web option or Inter origination or purchase of a loan, or net e-mail as an encrypted file (HRID_ denial or withdrawal of an application).)