What is the threshold for HMDA reporting?
On November 12, the CFPB reminded institutions that effective January 1, 2022, pursuant to a final rule issued by the CFPB in April 2020, the threshold for reporting Home Mortgage Disclosure Act (HMDA) data about open-end lines of credit will change to 200 from the prior threshold of 500.
Table of Contents
What is required by 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.
What loans are 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.
Does HMDA supports ECOA and FHA?
How do government agencies use HMDA data? Government agencies use HMDA data to assist in evaluating lender compliance with anti-discrimination laws and other consumer protection laws. The anti-discrimination laws include the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA).
Are apartment buildings HMDA reportable?
For HMDA reporting, a multifamily dwelling is a residential structure that houses five or more families. Even though condominium buildings can house five or more families, if each unit is individually owned, then the dwellings should be reported as one-to-four family dwellings, not multifamily property.
Are construction loans covered by HMDA?
A construction-only loan or line of credit is considered temporary financing and excluded from collection and reporting requirements under comment 3(c)(3)-2 if the loan or line of credit is extended to a person exclusively to construct a dwelling for sale.
Is an apartment building HMDA reportable?
Is a 6 unit apartment building HMDA reportable?
Does HMDA apply to multifamily property?
The Home Mortgage Disclosure Act (HMDA) defines a multifamily property as a residential structure that houses five or more families. Conversely, a structure is classified as a one-to-four family property if it houses fewer than five families it also includes individual condominiums or cooperative units.
Which loans are not covered under HMDA?
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.
What is not permitted under Reg Z?
Regulation Z does not apply, except for the rules of issuance of and unauthorized use liability for credit cards. (Exempt credit includes loans with a business or agricultural purpose, and certain student loans.
Is a rental property HMDA reportable?
You’d want to document the primary use of the property using whatever method makes sense for the property, such as square footage, rental income, etc. If the primary use is for a business purpose and not as a dwelling, it would not be HMDA reportable.
Is HMDA required on investment property?
Section 1003.4(a)(6) requires a financial institution to identify a property as an investment property if the borrower or applicant does not or will not occupy the property, even if the borrower or applicant does not consider the property as owned for investment purposes.
What is prohibited under B?
Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant’s ability or willingness to repay the credit requested and could be used to discriminate against the applicant.
What does Reg Z require?
Created to protect consumers from predatory lending practices, Regulation Z, also known as the Truth in Lending Act, requires that lenders disclose borrowing costs upfront and in clear terminology so consumers can make informed decisions.