HMDA

Question 1

Who is responsible for complying with HMDA

Answer 1

Banks
Credit Unions
Saving Associations

Question 2

What are the covered criteria the bank, saving associations, and credit unions have to meet

Answer 2

On 12/31 assets were in excess of the threshold established by CFPB

Had a branch in a MSA

Originated, refinanced at least one home purchase loan secured by a 1st lien on a 1 to 4 fAmily

Loan is insured by government

Originated in each of the two preceding calendar years 25 covered closed end loans or 100 covered open end lines of credit

Question 3

Excemptions from HMDA are for profit mortgage institutions that

Answer 3

Did not have an office in a MSA

Had assets of $10 million or less

Question 4

Nom banks, savings, and loans, have to meet these criteria to be be required to report HMDA data

Answer 4

Had a branch in a MSA

Received applications or orginated or purchased five or more home purchase, home improvement loans, or refinancing related to property located in the same MSA

Orginated in each of the two preceding calendar years at least 25 covered closed in mortgage or 100 covered open end lines of credit

Question 5

What loans are HMDA reportable

Answer 5

Home purchase loans to purchase a dwelling

Home improvement for improving the real property where the dwelling is located

Refinancing dwelling secured debt obligation to the same borrower

Pre approval of home purchase loans if institution issues a written commitment

Loan assumptions

Question 6

Preapproval written commitments can only contain

Answer 6

Conditions to require identification of a suitable property

Condition that no financial material changed occurred

Limited conditions not related to financial condition or creditworthiness of the applicant

Question 7

HMDA reportable exclusions

Answer 7

Home improvement but not dwelling secured

Agricultural purpose

Business or commercial purpose

Secured by unimproved land

Temporary Financing

Transactions less than $500

Closed end loan where bank originated less than 25 in two years

Open end loans where bank originated less than 100 in two years

Preapproval requests that are open end line of credit, to purchase multi family, for reverse mortgages

Question 8

WhAt is considered an applicant in

Answer 8

Oral or written request for credit made in accordance to the procedures used by the institution

Question 9

What is a dwelling

Answer 9

Structure in US DC or Puerto Rico

Question 10

Financial institutions must collect data for covered loans that it

Answer 10

Purchases

Originated

Received

Question 11

Data regarding request under a preapproval program shall be reported if the request is

Answer 11

Denied

Approved but not accepted

Question 12

Data must include the following for each application

Answer 12

Universal Loan Identifier

Application Date

Type of loan

Purpose of loan

Preapproval?

Construction Method

Occupancy Type

Loan Amount

Action Taken

Property Address

Location of property

Question 13

Non bank mortgage lenders with five or more loans in a MSA must report

Answer 13

Property location for for such metropolitan area

Question 14

Age reporting is not applicable for what type of loans

Answer 14

Purchased or guarantors

Question 15

What income is reported for the borrower

Answer 15

Gross annual income

Question 16

If applicant is an employee of the institution, what do you input for income

Answer 16

NA

Question 17

What is the rate spread

Answer 17

Difference between the APR and the average prime offer rate

Question 18

When is the rate spread required

Answer 18

For applications and preapproval that are approved but not accepted