HMDA Reg C Flashcards
Which financial institutions are required to report for HMDA?
-on the preceding December 31, had assets in excess of the asset threshold established annually by the CFPB
-on the preceding December 31, had a home or branch office in an MSA
-in the preceding calendar year, originated at least one home purchase loan or refinancing of a home purchase loan secured by a first lien on a one to four unit dwelling
-meets one or more of the following
—-institution is federally insured or regulated
—-any loan was insured,guaranteed or supplemented by a federal agency or was intended for sale to Freddie Mac or Fannie Mae
-meets at least one of the following
—-in each of 2 preceding calendar years originated at least 25% closed end mortgage loans that are not excluded
—-in each of 2 preceding calendar years originated at least 500 open end lines of credit that are not excluded
What is the purpose of HMDA?
- to help determine whether financial institutions are serving the housing needs of their communities
- to assist public officials in distributing public sector investment so as to attract private investment to areas where it it needed
- to assist in identifying possible discriminatory lending patterns and enforcing anti discrimination statues
What are covered loans?
Loans for which financial institution receives applications, originates or purchases that are secured by a dwelling.
True or False
Financial institutions must address all edits prior to submitting their HMDA data collected.
True
True or False
An authorized representative of the institution with knowledge of the data submitted shall certify to the accuracy and completeness of the data submitted.
True
True or False
A for profit mortgage lending institution has to meet same requirements as banks/credit unions in order to be required to submit for HMDA
False
Only need to have a home or branch office in a MSA and
In each of the preceding calendar years either originate at least 25 closed end mortgage loans or originate at least 500 open end lines of credit
What are 3 characteristics of open end lines of credit?
- repeated transactions
- finance charge on outstanding balances
- line will replenish itself (revolves, ex:credit limits)
What is definition of dwelling per HMDA?
It means a residential structure, whether or not attached to real property. The term includes but is not limited to a detached home, an individual condominium or cooperative unit, a manufactured home or other factory built home or a multi family residential structure or community.
What are the dwelling exclusions?
Recreational vehicles including boats, campers, travel trailers and park model recreational vehicles are NOT considered dwellings regardless of whether they are used as residences.
Houseboats, floating homes, and mobile homes constructed before June 15, 1976 are excluded.
Excluded are transitory residences such as hotels, hospitals, college dormitories and recreational vehicle parks and structures originally designed as dwellings but used exclusively for commercial purposes.
True or False
Mixed use properties are always exempt from HMDA reporting.
False
A property used for both residential and commercial purposes such as a building containing apartment units and retail space is a dwelling if the property’s primary use is residential.
How can an institution determine the primary use of a mixed use property?
An institution may use any reasonable standard to determine the primary use of the property such as by square footage or by the income generated. An institution may select the standard to apply on a case by case basis.
What is the definition of a home improvement loan?
A home improvement loan means a closed end mortgage loan or an open end line of credit that is for the purpose in whole or part of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is located.
What is the definition of home purchase loan?
Home purchase loan means a closed end mortgage loan or an open end line of credit that is for the purpose in whole or on part of purchasing a dwelling.
What is the definition of refinancing?
Refinancing means a closed end mortgage loan or an open end line of credit in which a new dwelling secured debt obligation satisfies and replaces an existing dwelling secured debt obligation by the same borrower.
True or False
Modifications are HMDA reportable.
False