HMDA

Question 1

What does HMDA mean?

Answer 1

Home Mortgage Disclosure Act

Question 2

Purpose of HMDA?

Answer 2

Requires certain lenders

• based on asset size
• location
• housing-related lending activity

to report data regarding its mortgage lending activity

Question 3

HMDA’s regulation?

Answer 3

Regulation C

Question 3

Information required by HMDA?

Answer 3

The following information must be reported for each covered transaction:

• Loan number
• Date of application
• Type and purpose of loan
• Owner occupancy status
• Loan amount
• Type of action taken
• Location, by MSA (metropolitan statistical area), state, county, and census tract
• Race, ethnicity, and sex of applicant(s) and gross annual income
• Type of entity purchasing the loan, if sold on the secondary market within a year of consummation

Dwellings subject to HMDA reporting requirements include:

• Vacation or second homes.
• Rental properties
• Individual condominiums or cooperative units
• Manufactured homes and mobile homes

Question 4

Lenders subject to HMDA

Answer 4

Depository institutions with a home or branch office in an MSA when they

• Meet an annually-adjusted asset-size threshold established by the CFPB:
  
  • For 2024, banks, credit unions, and other depository institutions with assets of $56 million or less as of December 31, 2023 are exempt.
• Originate **at least one **home purchase loan or the refinance of a home purchase loan in the preceding calendar year
• Conduct business as a federally-insured or
  -regulated institution (e.g., FDIC bank, Federal Reserve bank)
  -or-
  make federally-insured or -guaranteed loans (e.g., FHA loans, VA loans)
  -or-
  originate loans intended for sale to Fannie Mae or Freddie Mac
• Meet a loan-volume threshold
  
  • The origination of at least 25 closed-end mortgage loans in **either of the two preceding **calendar years, or
  • The origination of at least 200 open-end lines of credit in either of the two preceding calendar years

Non-depository institutions with a home or branch office in an MSA when they
* Meet a loan-volume threshold
* The origination of at least 25 closed-end mortgage loans in either of the two preceding calendar years, or
* The origination of at least 200 open-end lines of credit in either of the two preceding calendar years