Are withdrawn loans reported for HMDA?
Are withdrawn loans reported for HMDA?
A preapproval request that is withdrawn is not reportable under HMDA.
What does it mean if a loan application is withdrawn?
This means the applicant needs to tell the lender they wish to withdraw their application. Sometimes a lender will consider an application withdrawn because the applicant has not responded to contact attempts.
What is the action taken date for a withdrawn loan?
For withdrawals, an application is reported as such when the it was expressly withdrawn by the borrower before a credit decision has been made. The date that the borrower contacted the lender to withdraw the application is reported as the Action Taken Date.
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 is the action taken Date for HMDA?
Action Taken Date For an application that was expressly withdrawn by the applicant, either the date shown on the applicant’s letter or the date you received the letter or notice is reported. For loans that an institution purchased, the date of purchase is entered.
What is approved not accepted?
A transaction is “approved but not accepted” if an institution has all of the necessary documentation and information needed to make a credit decision and, based on that information, the application is approved but the transaction is ultimately not originated.
What is the purpose of 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.
Which kind 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 a “granted” HMDA loan amount?
Again, “granted” is not defined in Regulation C and, therefore, this leaves much question on how to report the HMDA loan amount when there was a counteroffer for an application that was ultimately withdrawn, closed for incompleteness, or denied.
What does HMDA mean by approved not accepted?
HMDA says if the applicant issues are fully satisfied, then you have approved them [read the Commentary to §1003.4 (a) (8) (i) #3]. If they then back out or you can’t make the loan due to property issues, we record it as “Approved, Not Accepted” (ANA).
When did the CFPB issue the HMDA rule?
In October 2015, the CFPB issued the 2015 HMDA Rule implementing the Dodd-Frank Act amendments to Regulation C.3 The 2015 HMDA Rule modified the types of institutions and transactions subject to Regulation C, the types of data that institutions are required to collect, and the processes for reporting and disclosing the required data.4
What is the new HMDA rule for open end lines?
On October 10, 2019, the Bureau issued the 2019 HMDA Rule to extend the temporary threshold for reporting data about open end lines of credit and implement and further clarify the partial exemptions created by the 2018 Act.7 683 FR 45325 (Sept. 7, 2018). 784 FR 57946 (Oct. 29, 2019). 2020 EDITION A GUIDE TO HMDA REPORTING: GETTING IT RIGHT! | IV
