What is a mortgage compliance report?
The Home Mortgage Disclosure Act (HMDA) requires mortgage companies to report to their regulators data that shows whether or not they provide credit in the geographic area where they locate their offices. The data also lets government officials target investment dollars to areas that need growth investments.
What are the 3 purposes of HMDA?
The data- related requirements in HMDA and Regulation C serve three primary purposes: (1) to help determine whether financial institutions are serving their communities’ housing needs; (2) to assist public officials in distributing public investment to attract private investment; and (3) to assist in identifying …
What is the purpose of HMDA reporting?
HMDA reporting allows regulators to analyze information on mortgage loans and mortgage lending trends in a number of categories, such as the number of pre-approvals made, the number of mortgages granted, loan amounts, and the purposes of individual loans.
What data is reported to HMDA?
HMDA requires lenders to report the ethnicity, race, gender, and gross income of mortgage applicants and borrowers. Lenders must also report information regarding the pricing of the loan and whether the loan is subject to the Home Ownership and Equity Protection Act, 15 U.S.C. 1639.
Why is mortgage compliance important?
Compliance protects the buyer. Next, compliance protects the lender. There are federal and state level mortgage compliance rules to minimize a financial institution’s risk. Lastly, compliance regulations are in place to track and improve the loan process.
Who uses Reg C reports?
Regulation C is the regulation that implements the Home Mortgage Disclosure Act of 1975. Regulation C requires many financial institutions to annually disclose loan data about the communities to which they provided residential mortgages.
What types of loans are covered under HMDA?
Thus, a financial institution must collect, record, and report data for dwelling-secured, business-purpose loans and lines of credit that are home improvement loans, home purchase loans, or refinancings if no other exclusion applies.
What types of loans are HMDA reportable?
Generally speaking, unless a transaction is expressly excluded under 12 C.F.R. §1003.3(c), an institution subject to HMDA must report all consumer closed‑end mortgage loans and open-end lines of credit secured by a dwelling.
What loans are covered under HMDA?
What is not reported under HMDA?
If the loan or line of credit is neither a closed-end mortgage loan nor an open-end line of credit, the transaction does not involve a covered loan, and the financial institution is not required to report information related to the transaction.
Who regulates mortgage servicing?
The Federal Trade Commission (FTC) regulates unfair and deceptive practices affecting consumers. Mortgage companies that make deceptive statements, omit important facts, or take misleading actions — such as charging fees for services that are not provided — would fall under the FTC’s oversight authority.
What is Reg C in mortgages?
HMDA is designed to provide home mortgage data to the public to help determine if financial institutions are serving the housing needs of their communities, to help public officials distribute public investments, and to identify possible lending discrimination.
What does regulation C mean?
What Is Regulation C? Regulation C is the regulation that implements the Home Mortgage Disclosure Act of 1975. Regulation C requires many financial institutions to annually disclose loan data about the communities to which they provided residential mortgages.
What are the three most common errors in HMDA reporting?
Common HMDA Errors to Check Before Filing
- Reporting Cash-out Refinancing rather than Refinancing for the Loan Purpose.
- Reporting Withdrawn rather than Approved Not Accepted.
- Reporting the wrong score (or not reporting one at all for loans approved but not accepted)
What loans are not covered by HMDA?
A Closed-End Mortgage Loan or an Open-End Line of Credit that is or will be made primarily for business or commercial purposes, unless it is a Home Improvement Loan, a Home Purchase Loan, or a Refinancing.
Which transactions must be reported under HMDA?
Under HMDA and Regulation C, a transaction is reportable only if it is an Application for, an origination of, or a purchase of a Covered Loan. These materials illustrate one approach to help determine whether a transaction involves a Covered Loan.
What loans are reportable to HMDA?
Who is the largest mortgage servicer?
Among firms with retained or purchased servicing of US mortgaged income-producing properties, Wells Fargo ($595 billion), PNC/Midland ($404 billion), and KeyBank ($303 billion) are the biggest primary and master servicers for CMBS, CDO or other ABS loans.
What are the 8 underwriting standards that should be reviewed during loan analysis?
At a minimum, creditors generally must consider eight underwriting factors: (1) current or reasonably expected income or assets; (2) current employment status; (3) the monthly payment on the covered transaction; (4) the monthly payment on any simultaneous loan; (5) the monthly payment for mortgage-related obligations; …
What is Reg B in mortgages?
Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant’s ability or willingness to repay the credit requested and could be used to discriminate against the applicant.
What is regulation p?
Regulation P governs the treatment of nonpublic personal information about consumers by the financial institutions for which the Board has primary supervisory authority.
What is regulation Z in mortgage?
Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.
What is regulation B in mortgage?
What makes a loan HMDA reportable?