Are pre approvals HMDA reportable?
A preapproval request that is withdrawn is not reportable under HMDA.
What is Mortgage regulation C?
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 type of transactions are subject to regulation C requirements?
Beginning on January 1, 2018, Regulation C applies to business-purpose, closed-end loans and open-end lines of credit that are dwelling-secured and are home purchase loans, home improvement loans, or refinancings.
Are lines of credit HMDA reportable?
Beginning on January 1, 2022, a financial institution originating 200 or more open-end lines of credit must collect, record, and report HMDA data for open-end lines of credit.
What is approved not accepted?
A transaction is “approved but not accepted” if an institution has all of the necessary documentation and information needed to make a credit decision and, based on that information, the application is approved but the transaction is ultimately not originated.
What is the condition for recording a loan pre approval on the Lar?
Financial institutions must record data on their HMDA-LAR within 30 calendar days of the end of the calendar quarter in which final action was taken.
What does Reg C apply to?
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 are the possible consequences of non compliance with Regulation C?
An institution’s home office must make its disclosure statement and its HMDA-LAR available to the public. This information must be retained for at least three years for examination purposes. States that a violation of the regulation is subject to civil money penalties.
Which regulations are covered by the Fair Lending procedures?
Two different federal laws deal with discrimination in lending: the Fair Housing Act (FHAct) and the Equal Credit Opportunity Act (ECOA). These fair lending laws prohibit lenders from discriminating in credit transactions on the basis of race, color, national origin, religion, sex, and other specified grounds.
What loans are excluded from HMDA reporting?
Generally, a loan or line of credit must be secured by a Dwelling to be a Covered Loan. The 2015 HMDA Rule also lists Closed-End Mortgage Loans and Open-End Lines of Credit secured only by vacant or unimproved land as Excluded Transactions.