What disclosure statements does HMDA require?

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.

What is the purpose of HMDA reporting?

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 does HMDA stand for in mortgage?

Home Mortgage Disclosure Act
The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB).

What is a HMDA LAR?

LAR – Loan Application Register (also known as the HMDA-LAR, the LAR, or the Register) The term LAR refers to the loan application register format that has been prescribed for reporting HMDA data. Computer-generated reports must conform to the format of the LAR.

What are the three 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 types of loans are covered by HMDA?

Thus, a financial institution must collect, record, and report data for dwelling-secured, business-purpose loans and lines of credit that are home improvement loans, home purchase loans, or refinancings if no other exclusion applies.

What transactions are not HMDA reportable?

If the loan was to purchase a commercial dwelling, it must be secured by a dwelling to be HMDA reportable. If the purchase money loan was secured by a commercial office building (not a dwelling) or a CD, it is not reportable even though the purpose was to purchase an apartment building or a rental property.

What was the home mortgage disclosure act ( HMDA )?

The Home Mortgage Disclosure Act (HMDA) is a federal act approved in 1975 that requires mortgage lenders to keep records of certain key pieces of information regarding their lending practices which they must submit to regulatory authorities. It was implemented by the Federal Reserve through Regulation C.

What can the HMDA data and reports be used for?

The HMDA data and reports are the most comprehensive publicly available information on mortgage market activity. The data and reports can be used along with the Census demographic information for data analysis purposes.

Where can I find HMDA loan application data?

The HMDA data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age and income of applicants and borrowers; and information about loan approvals and denials.

How many mortgage loans are required to be reported to HMDA?

HMDA Reporting. Under HMDA and Regulation C certain mortgage lenders are required to maintain records of specified mortgage lending information for reporting purposes. In 2017, 6,762 lenders were required to report HMDA statistics with 16.3 million loan records reported.

What disclosure statements does HMDA require?

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.

What is the Ffiec HMDA Disclosure Statement?

The HMDA reports provide information regarding home mortgage lending activity, and the PMIC reports provide mortgage insurance activity data from private mortgage insurance companies. The reports can be used along with the FFIEC census data for data analysis purposes.

What is the purpose of the HMDA?

The Home Mortgage Disclosure Act (HMDA) is a law passed in 1975 that mandates mortgage lenders maintain certain records. The goal is to create greater transparency and to protect borrowers in the residential mortgage market.

What is considered HMDA reportable?

A consumer purpose, dwelling secured loan is HMDA reportable regardless of purpose. A business purpose, dwelling secured loan is only HMDA reportable if the purpose of the loan is to purchase a dwelling, refinance a dwelling or improve a dwelling or the real property on which the dwelling is located.

What is excluded from HMDA reporting?

A Closed-End Mortgage Loan or an Open-End Line of Credit that is or will be made primarily for business or commercial purposes, unless it is a Home Improvement Loan, a Home Purchase Loan, or a Refinancing. 12 CFR 1003.3(c)(10). Not all transactions that are primarily for a business purpose are Excluded Transactions.

Who is exempt from HMDA reporting?

In order for a partial exemption to apply, an eligible financial institution must meet a loan-volume threshold. The threshold is whether the institution originated fewer than 500 of closed-end loans and open-end lines of credit, counted separately, during each of the two preceding calendar years.

What kind of loans are covered by HMDA?

If a threshold is met, the institution reports all Applications for Covered Loans that it receives, Covered Loans that it originates, and Covered Loans that it purchases for that type of transaction (either Closed-End Mortgage Loan or Open-End Line of Credit, or both, if both thresholds are met).

What are the three 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 loans are excluded from HMDA reporting?

What types of loans are covered by HMDA?

Thus, a financial institution must collect, record, and report data for dwelling-secured, business-purpose loans and lines of credit that are home improvement loans, home purchase loans, or refinancings if no other exclusion applies.

What is the home mortgage disclosure act ( HMDA )?

About HMDA The Home Mortgage Disclosure Act (HMDA) requires many financial institutions to maintain, report, and publicly disclose loan-level information about mortgages.

What can the HMDA data and reports be used for?

The HMDA data and reports are the most comprehensive publicly available information on mortgage market activity. The data and reports can be used along with the Census demographic information for data analysis purposes.

Where do I find the sample notice for HMDA?

A Financial Institution may, but is not required to, use the sample notice in Attachment C to satisfy this requirement. In any case, the notice must clearly convey that the Financial Institution’s HMDA data are available on the Bureau’s website at www.consumerfinance.gov/hmda.

What was the home mortgage disclosure act of 1975?

Updated Jun 25, 2019. The Home Mortgage Disclosure Act (HMDA) is a federal act approved in 1975 that requires mortgage lenders to keep records of certain key pieces of information regarding their lending practices which they must submit to regulatory authorities.