HOME MORTGAGE DISCLOSURE ACT INTRODUCTION Regulation C is found at - PowerPoint PPT Presentation

HOME MORTGAGE DISCLOSURE ACT

INTRODUCTION ¡ Regulation C is found at 12 CFR 1003 ¡ Requires the collection and reporting of certain home loan data ¡ Requires the collection of applicant and borrower information to assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes ¡ No changes for 2013

DEFINITIONS ¡ Application ¡ Dwelling ¡ Home Improvement Loan ¡ Preapproval Program ¡ Prequalification ¡ Refinancing

EXEMPT STATUS Your credit union is exempt from HMDA reporting for the year unless all of the following apply as of the preceding December 31: ¡ You meet the asset threshold ($42 million for 2013 data collection) ¡ You have a home or branch office in an MA ¡ You originated at least one home purchase loan or refinancing of a home-purchase loan secured by a first lien on a one- to four-family dwelling ¡ You are federally insured or regulated

CHANGE IN EXEMPT STATUS ¡ If a credit union becomes exempt from HMDA reporting requirements, the collection of HMDA data may stop with the next calendar year. ¡ If the credit union loses its exemption, data collection would begin the following year. ¡ If the credit union is part of a merger and the merger results in a covered credit union, data collection must begin January 1 of the following calendar year.

COMPILING LOAN DATA ¡ Qualifying Loan Purpose ¡ Report applications regardless of disposition ¡ Exemptions ¡ Optional HELOC Reporting

REQUIRED DATA ¡ Loan or application ¡ Action taken number ¡ Action taken date ¡ Date the application ¡ Property location was received ¡ Monitoring information ¡ Loan type ¡ Income ¡ Property type ¡ Purchaser ¡ Loan purpose ¡ Rate Spread ¡ Owner-occupancy status ¡ HOEPA Status ¡ Loan amount ¡ Lien Status ¡ Pre-approval information

OPTIONAL DATA ¡ Reasons for denial ¡ Requests for preapproval that are approved, but not accepted ¡ HELOCs

COLLECTING MONITORING DATA ¡ Lenders must ask applicants for this data whether the application is taken in person, by mail, by telephone or via the Internet. ¡ Applicants are not required to provide the information. ¡ Important Concepts: § Telephone Applications § Required Disclosure § Multiple Racial Designations § Collection Via Visual Observation § Collection Not Required § Form of Disclosure

HMDA-LAR UPDATING AND REPORTING ¡ Must be updated within 30 days after the end of each calendar quarter. ¡ Separate registers may be maintained for different branch offices or different loan types; however, they must be submitted to the Federal Reserve Board in a single package. ¡ Report loans/applications during the year in which the action is taken. ¡ Submit the HMDA-LAR to the FRB no later than March 1 of the year following the calendar year the compiled information applies to.

REQUIRED INFORMATION

FFIEC DISCLOSURE STATEMENT ¡ The FFIEC prepares a disclosure statement for each reporting institution. ¡ Credit unions are required to make this statement available to the public at their home offices no later than three business days from the date it is received. ¡ The disclosure statement must also be made available to the public within 10 business days of receipt by either: § Making a copy available in at least one branch office of each additional MA where the credit union has offices, or § Posting a notice in the lobby of each branch office in a given MA and providing the address to which a request for the statement can be mailed. ¡ If the credit union elects to post the address for mailing a request, the disclosure must be mailed or delivered within fifteen days of receipt of a request. ¡ The disclosure statement must be made available for five years after publication.

MODIFIED HMDA-LAR ¡ A credit union must make its HMDA-LAR available to the public. ¡ To protect the privacy of the loan applicants, the HMDA-LAR must be modified by removing the application or loan number, the date the application was received, and the date the action was taken. ¡ The modified LAR must be available by March 31 for requests made on or before March 1, and within 30 days for requests made after March 31. ¡ The modified LAR must be made available for public inspection and copying during the hours the credit union is normally open for business. ¡ Credit unions can: § Make the modified LAR available in either paper or automated form § Include only data the pertains to the metropolitan area in the request § Charge a reasonable fee for any cost incurred in providing or reproducing the data. ¡ The Modified-LAR must be available for inspection for three years after publication.

LOBBY NOTICE ¡ A credit union must place a notice in the lobby of its main office and any branch office located in any MA, indicating the availability of HMDA data. ¡ On request, the credit union must promptly disclose the locations at which disclosure statements and the modified LARs are available. ¡ Model language is available.