HMDA- Home Mortgage Disclosure Act Flashcards
The primary goal of HMDA (12 U.S.C. §2801 et seq.) is to identify urban areas where the ______________ of home financing at reasonable terms is limited
availability
HMDA has 3 specific purposes:
1) Determine if depository institutions are meeting the housing _________of their communities, particularly in urban neighborhoods.
2) Identify _______________ lending practices and patterns to ensure compliance with fair lending laws.
3) Determine the distribution of public-sector investments where needed.
needs
discriminatory
HMDA requires both depository and non-depository institutions to collect data at the time they receive loan applications and _______ the data to the supervising federal agency.
Submit
Institutions Covered by HMDA
- Focus on mortgage credit distribution in metropolitan statistical areas (MSAs) with a population of at least \_\_\_\_\_\_\_\_\_\_\_\_. - Applies to depository institutions and non-depository lenders with home or branch offices in an metropolitan statistical areas -MSA. - Depository institutions subject to HMDA when they meet certain criteria including asset-size threshold, loan origination criteria, and conducting business as federally-insured/regulated institution. - Non-depository institutions subject to HMDA when meeting uniform loan-volume threshold. - New standards may require compliance from non-depository mortgage lenders previously exempt from HMDA reporting requirements.
50,000
HMDA defines a dwelling as a residential structure located in the U.S., District of Columbia, or Puerto Rico, including individual _______________________ units, cooperative units, or___________/___________ homes.
condominium units
mobile/manufactured
Exclusions from Reporting Requirements
Reporting requirements do not apply to:
- Loans secured by \_\_\_\_\_\_\_\_\_\_\_\_/\_\_\_\_\_\_\_\_\_\_\_\_\_ land unless loan proceeds will be used within two years to construct a dwelling.
- Temporary financing, construction loans, or bridge loans.
- Loans under $\_\_\_.
- Loans secured by property used for agricultural purposes.
- Loans secured by property used primarily for business or commercial purposes unless it's a purchase loan, home improvement loan, or refinance.
unimproved or vacant
$500
Partially-Exempt Transactions
Insured depository institutions or credit unions that originated fewer than 500 closed-end mortgages or open-end lines of credit in each of the two preceding calendar years are partially exempt from HMDA reporting
Institutions reporting at least ________________ originated covered loans and applications combined in the previous year must report data quarterly.
60,000
- HMDA requires covered institutions to collect extensive data about each mortgage loan application and origination, unless subject to a partial exemption.
- Information reported includes:
- Date of application receipt with a loan number.
- Loan type, purpose, and amount applied for.
- Outcome of the application (denial or origination).
- Property location and owner/occupant status.
- Applicant’s ethnicity, race, sex, and income.
- Type of entity purchasing originated or purchased loans.
- Difference between loan’s APR and average prime offer rate.
- Identification of loans subject to HOEPA.
- Indication of whether the loan is secured by a first or subordinate lien.
Quarterly data must be reported within 60 days after the end of each _________, except for the___________ quarter, which is included in the annual submission.
quarter
fourth
Loan originators cannot directly ask applicants about demographic data. T/F?
True
- Applicants must be given the opportunity to provide this information voluntarily.
- Originators explain that the data collection is for monitoring compliance with fair lending laws and applicants are not required to provide the information
T/F?
True
If an applicant chooses not to provide personal data, the originator must note this on the form and attempt to __________- ethnicity, race, and sex based on visual observation and surname
identify
What is the primary goal of the Home Mortgage Disclosure Act (HMDA)?
- a) Lowering interest rates
- b) Identifying urban areas where the availability of home financing at reasonable terms is limited
- c) Providing free housing counseling
- d) Increasing homeownership rates
b) Identifying urban areas where the availability of home financing at reasonable terms is limited
The primary goal of HMDA is to identify areas where home financing is not readily available on reasonable terms.
Which act expanded data collection under HMDA to monitor equitable distribution of mortgage credit?
The Dodd-Frank Act of 2010 expanded data collection under HMDA.
Which regulation implements HMDA?
- a) Regulation Z
- b) Regulation X
- c) Regulation B
- d) Regulation C
Regulation C (12 C.F.R. §1003 et seq.) implements HMDA.
What population size defines a metropolitan statistical area (MSA) for HMDA purposes?
- a) 10,000
- b) 25,000
- c) 50,000
- d) 100,000
- c) 50,000
Which of the following is a criterion for depository institutions to be subject to HMDA?
- a) Net worth of at least $1 billion
- b) Origination of at least 100 loans per year
- c) Asset-size threshold set by the CFPB
- d) Membership in the Federal Reserve System
c) Asset-size threshold set by the CFPB
Depository institutions are subject to HMDA when they meet certain criteria, including an asset-size threshold set by the CFPB.
Which of the following data points is NOT required under HMDA reporting?
- a) Loan amount
- b) Applicant’s age
- c) Applicant’s income
- d) Property location
age
What is the threshold for partial exemption from HMDA reporting for depository institutions?
- a) Originated fewer than 100 closed-end mortgages
- b) Originated fewer than 500 closed-end mortgages or open-end lines of credit
- c) Originated fewer than 1,000 closed-end mortgages
- d) Originated fewer than 2,000 closed-end mortgages or open-end lines of credit
- b) Originated fewer than 500 closed-end mortgages or open-end lines of credit
- Explanation: Depository institutions that originated fewer than 500 closed-end mortgages or open-end lines of credit in each of the two preceding calendar years are partially exempt from HMDA reporting.
When must large institutions submit their quarterly HMDA data?
- a) Within 30 days after the end of each quarter
- b) Within 45 days after the end of each quarter
- c) Within 60 days after the end of each quarter
- d) Within 90 days after the end of each quarter
c) Within 60 days after the end of each quarter
Institutions reporting at least 60,000 originated covered loans and applications combined in the previous year must report data quarterly within 60 days after the end of each quarter.
- HMDA requires institutions to report data on loan applications, denials, approvals, and purchases.
- True
- False
True
HMDA requires reporting on loan applications, denials, approvals, and purchases to monitor lending practices.
Temporary financing, such as construction loans, must be reported under HMDA.
- True
- False
False
Temporary financing, such as construction loans, is excluded from HMDA reporting requirements.
Demographic data collection under HMDA helps identify discriminatory lending practices.
- True
- False
True
Collecting demographic data helps regulators identify unfair lending practices based on personal characteristics.
Which institutions are required to comply with HMDA reporting requirements?
Both depository and non-depository institutions that have home or branch offices in metropolitan statistical areas (MSAs) and
meet specific criteria such as asset-size threshold and loan origination volume are required to comply with HMDA reporting requirements.
What are the three specific purposes of HMDA?
- Determine if depository institutions are meeting the housing needs of their communities, particularly in urban neighborhoods.
- Identify discriminatory lending practices and patterns to ensure compliance with fair lending laws.
- Determine the distribution of public-sector investments where needed
