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.
What are the penalties for HMDA violations?
In addition to the $200,000 civil money penalty, the bank is required to develop and implement an effective compliance-management system to prevent future violations, the CFPB said.
What HMDA means?
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 the purpose of the HMDA Act?
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 qualifies as 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 does HMDA reportable mean?
Home Mortgage Disclosure Act (HMDA)1 Background. The Home Mortgage Disclosure Act requires certain financial institutions to collect, report, and disclose information about their mortgage lending activity. HMDA was originally enacted by the Congress in 1975 and is implemented by Regulation C (12 CFR Part 1003).
What is the name of the rules that implement HMDA?
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).
Which of the following is a primary purpose of HMDA?
What is excluded from HMDA reporting?
Generally, a loan or line of credit must be secured by a Dwelling to be a Covered Loan. The 2015 HMDA Rule also lists Closed-End Mortgage Loans and Open-End Lines of Credit secured only by vacant or unimproved land as Excluded Transactions.
What are HMDA reportable loans?
Several types of loans are HMDA-reportable. HMDA requires that any loan secured by real estate made for the purpose of purchasing a home is reportable on an annual basis to the Federal Financial Institutions Examination Council (FFIEC), which is the federal reporting agency of the Federal Reserve Board.
Are withdrawn loans HMDA reportable?
Under the new HMDA regulation, withdrawn is reported when the application is expressly withdrawn by the applicant before a credit decision was made. An application is also reported as withdrawn if the financial institution provides conditional approval that specifies underwriting conditions which must be met and…
Are commercial loans HMDA reportable?
For refinances, not all loans are going to be considered reportable for HMDA purposes. If the financial institution was legally obligated to refinance the loan in question then it would not be considered to be reportable. Then there are loans that are primarily for commercial purposes.
Are land loans HMDA reportable?
If the land is determined to be primarily agricultural use, the loan will not be reportable for HMDA regardless of the purpose of the loan. If the applicants/borrowers request financing to build a new dwelling on land primarily used for agricultural purposes, the loan will not be HMDA reportable.
