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.

Which loan transaction is subject to HMDA?

Under HMDA and Regulation C, a transaction is reportable only if it is an Application for, an origination of, or a purchase of a Covered Loan. These materials illustrate one approach to help determine whether a transaction involves a Covered Loan.

Which transactions would not be reported under HMDA?

If the loan or line of credit is neither a closed-end mortgage loan nor an open-end line of credit, the transaction does not involve a covered loan, and the financial institution is not required to report information related to the transaction.

What transactions must you report the rate spread?





Under the 2015 HMDA Final Rule, rate spread is reported only on originated loans, applications that were approved but not accepted and preapproval requests that were approved but not accepted. If Action Taken equals 3, 4, 5, 6, or 7, report Rate Spread as NA.

For which of the following transactions would the loan purpose be reported as other?

The “other” category is to be used for consumer purpose transactions that are secured by a dwelling that have a purpose other than home, purchase, home-improvement, refinancing or Cash-Out refinancing.

What is included in HMDA data?

HMDA data include some potentially relevant determinants of price, such as lien status, but exclude many other potential determinants, such as borrower credit history, borrower debt-to-income ratio, and the ratio of the loan amount to the value of the property securing the loan (loan-to-value ratio).

What 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.

What are the three most common errors in HMDA reporting?





Common HMDA Errors to Check Before Filing

  • 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  • Reporting Withdrawn rather than Approved Not Accepted.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 HMDA rate spread?

The rate spread calculator generates the spread between the Annual Percentage Rate (APR) and a survey-based estimate of APRs currently offered on prime mortgage loans of a comparable type utilizing the “Average Prime Offer Rates” fixed or adjustable table, action taken, amortization type, lock-in date, APR, fixed term

What are the categories of loans that must be reported under HMDA quizlet?

Applications for a home purchase loan, a home improvement loan, a refinancing, a cash-out refinancing are reportable Applications for a consumer purpose other than home purchase, home improvement or refinancing is also reportable.

What type of transactions are subject to Regulation C requirements?

Beginning on January 1, 2018, Regulation C applies to business-purpose, closed-end loans and open-end lines of credit that are dwelling-secured and are home purchase loans, home improvement loans, or refinancings. 12 CFR 1003.3(c)(10).



What is considered a purchase of a covered loan?

A financial institution reports that the covered loan was purchased if the covered loan was purchased by the financial institution after closing or account opening and the financial institution did not make a credit decision on the application prior to closing or account opening, or if the financial institution did