I. INTRODUCTION
The Home Mortgage Disclosure Act (HMDA) was passed by Congress in 1975, but not until February 5, 1988, was the law was made permanent and its coverage expanded. HMDA, as amended by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA): expanded coverage to include mortgage lenders besides those affiliated with banks or holding companies; required banks to report data regarding loan applications in addition to data regarding loans originated or purchased; and required most covered banks to report the race, sex and income of loan applicants and borrowers. In 1991, Congress authorized the Federal Reserve Board to develop a new exemption standard for non-depository institutions and to expand independent mortgage lender coverage.
The purpose of the HMDA and its implementing Regulation C is to provide public disclosure of how your bank is helping to serve the credit needs of the community and to aid public officials and private investors by indicating where community investments are needed. HMDA neither prohibits activities nor mandates credit allocation, and is not intended to otherwise affect the safety and soundness of banking.
II. WHO MUST REPORT?
All nonexempt banks, thrifts, and credit unions and their “majority-owned” subsidiaries, nonmajority-owned thrift service corporations, mortgage banking subsidiaries of banks and savings and loan holding companies, other mortgage lending institutions and nondepositary mortgage lenders must comply with the HMDA. A bank is subject to the HMDA and Regulation C if:
1. The bank has assets above the “asset threshold” established by the Federal Reserve Board+;
and
2. The bank has a home or branch office in a designated Metropolitan Statistical Area (MSA).
If a bank, savings association or credit union meets the asset size and location tests, but makes no first-lien mortgage loans on 1-to-4 family dwellings in a calendar year, the bank does not have to complete a Loan/Application Register (LAR). A for-profit mortgage lender (other than a bank, savings association, or credit union) need not complete a LAR (even if it meets the asset size and location tests), if the home purchase loans originated by it in the preceding year amounted to less than 10% of its total loan volume, measured in dollars. A nondepositary lender is also exempted from completing a LAR if it originated less than 10% of all its loan origination home purchase loans (including refinancings of home purchase loans) in the preceding calendar year.
A. Definitions
1. “Financial Institution”
a. A bank, savings association, or credit union that:
(1) on the preceding December 31, had assets greater than the asset threshold established by the Federal Reserve Board;
(2) on the preceding December 31, had a home or branch office in an MSA;
(3) in the preceding calendar year originated at least one home purchase loan (other than temporary financing such as a construction loan), or refinancing of a home purchase loan, secured by a first lien on a one-to-four family dwelling (See "exempt institutions" under "C" below, for origination rules that become effective in 2017); and
(4) meets one or more or the following three criteria:
(a) the institution is federally insured or regulated;
(b) the loan is insured, guaranteed or supplemented by any federal agency; or
(c) the institution intended to sell the loan to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
NOTE: For purposes of this article, use of the term “bank” includes all financial institutions as defined in Regulation C.
b. A for-profit mortgage lending institution (other than a bank, savings association, or credit union) whose home purchase loan originations (including refinancings of home purchase loans):
(1) equaled or exceeded 10% of its loan volume, measured in dollars, in the preceding calendar year; or equaled at least $25 million; and
(2) on the preceding December 31, had total assets of more than $10 million (counting the assets of any parent corporation); or
(3) in the preceding calendar year, originated at least 100 home purchase or refinancing loans.
2. “Dwelling”
A residential structure (whether or not attached to real property), including an individual condominium unit, cooperative unit, or mobile or manufactured home. (Note: “Dwelling” is not limited to the principal or other residence of the applicant or borrower, and may include vacation or second homes and rental properties.)
3. “Application”
An oral or written request for a home-purchase, a home- improvement loan or a refinancing made in accordance with procedures established by a bank for the type of credit requested. A preapproval requestfor a home purchase loan is considered an application if the request is initiated under a preapproval program in which a binding written commitment is issued by a lender to provide mortgage credit to a borrower for a specific dollar amount and for a specific time. The preapproval may only be subject to a limited set of conditions, including: identification of suitable property; verification of no material change in borrower’s financial condition or creditworthiness prior to closing; and other conditions unrelated to the applicant’s financial condition or creditworthiness. Such programs differ from prequalification programs in which the underwriting is less vigorous and there is no binding new commitment. Prequalification requests continue to be excluded from Regulation C.
4. “Branch Office”
a. any office of a bank, savings association or credit union that is approved as a branch by a federal or state supervisory agency, but excludes free standing electronic terminals such as ATMs;
b. any office of a for-profit mortgage-lending institution (other than a bank, savings association or credit union) that takes applications from the public for home-purchase or home-improvement loans or for refinancings. A for-profit mortgage lending institution is also deemed to have a branch office in an MA if, in the proceeding calendar year, it received applications for, originated, or purchased five or more home-purchase or home-improvement loans or refinancings on property located in that MA.
5. “Home-Equity Line of Credit” (HELOC)
An open-end credit plan secured by a dwelling as defined in Regulation Z.
6. “Home Improvement Loan”
Covered by Regulation C, the term means:
a. a loan that is secured by a lien on the dwelling that for the purpose, in whole or in part, of repairing, rehabilitating, remodeling or improving a dwelling or the real property on which it is located; and
b. a non-dwelling secured loan that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling or improving a dwelling or the real property on which it is located and that is “classified” by the bank as a home-improvement loan (i.e., recorded on the books or otherwise identified or coded as a home improvement loan). In these cases, the lender has the option of deciding whether to classify the loan as a home improvement loan, regardless of whether all, some or none of the proceeds are used for home improvement purposes.
NOTE: Refinancings of unsecured home improvement loans are no longer reportable under HMDA.
7. “Home Purchase Loan”
Covered by Regulation C, the term means any loan secured by and made for the purpose of purchasing a dwelling.
8. “Manufactured Home”
A residential structure defined under HUD regulations (24 C.F.R. § 3280.2) establishing manufactured home construction and safety standards. HUD defines “manufactured home as:
a structure, transportable in one or more sections, which in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or when erected on site, is three hundred twenty or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.
If a lender does not know at application whether a loan is for a manufactured home and cannot make that determination by reasonable means, then the lender may report the property type as a one-to-four family dwelling.
9. “Metropolitan Statistical Area”
A metropolitan area defined by the U.S. Office of Management and Budget.
10. “Refinancing”
Anew obligation that satisfies and replaces an existing obligation by the same borrower in which, for coverage purposes, the existing obligation is a home purchase loan (as determined by the lender, e.g., by reference to available documents or as stated by the applicant) and both the existing loan and the new loan are secured by first liens on dwellings, and for reporting purposes, both the existing obligation and new obligation are secured by liens on dwellings.
In an FFIEC “FAQ,” the question of whether satisfaction of a lien is relevant to determining a reportable refinancing was asked. FFIEC’s position is that satisfaction of a lien (or mortgage or trust deed obligation) is neither necessary nor sufficient to create a reportable refinancing. The credit obligation must be satisfied and replaced. It is irrelevant whether a lien is satisfied and replaced.
B. Nebraska MSAs
The metropolitan areas relevant to Nebraska depository institutions are comprised of the following countiesunder classifications released, and OMB revisions updated in February 2013: Lincoln, NE Metropolitan Statistical Area – Lancaster and Seward Counties in Nebraska; Grand Island, NE Metropolitan Statistical Area – Hall, Hamilton, Howard and Merrick Counties in Nebraska; Omaha-Council Bluffs, NE-IA Metropolitan Statistical Area – Harrison, Mills and Pottawattamie Counties in Iowa and Cass, Douglas, Sarpy, Saunders and Washington Counties in Nebraska; and Sioux City, IA-NE-SD Metropolitan Statistical Area – Plymouth and Woodbury Counties in Iowa, Dakota and Dixon Counties in Nebraska and Union County in South Dakota.
C. Exempt Institutions
A bank is exempt from Regulation C requirements for a given calendar year if on the preceding December 31:
1. The bank had neither a home office nor a branch office in an MSA; or
2. The bank has assets at or below the asset threshold established by the Federal Reserve Board.
Effective in 2017, a depository institution will not be subject to Regulation C unless it meets the asset-size, location, federally related, and loan activity tests under current Regulation C and it originates at least 25 home purchase loans, including refinancing’s of home purchase loans, in both 2015 and 2016. In addition, effective January 1, 2018, a uniform loan-volume threshold for all depository institutions will subject a depository institution to Regulation C if it originated at least 25 covered closed-end mortgage loans in each of the two proceeding calendar years or at least 100 covered open-end lines of credit in each of the two preceding years, in addition to meeting current Regulation C’s asset-size, location, federally related, and loan activity tests.
The CFPB adopted a temporary increase in the threshold for reporting home equity lines of credit (HELOCs). The threshold was temporarily increased to 500 HELOCs in each of the two preceding calendar years (through 2018 and 2019). In order to be required to report open-end covered loans data, a lender would need to meet the threshold in both 2016 and 2017 for purposes of 2018 reporting. In 2020, the Consumer Financial Protection Bureau (CFPB) published a final rule amending Regulation C’s thresholds for reporting data about closed–end mortgage loans and open–end lines of credit under the Home Mortgage Disclosure Act (HMDA).
1. Reporting Thresholds For Closed-End Mortgage Loans The final increases the threshold for banks and non–banks from the current rule's 25 closed–end mortgage loan originations to 100 such originations in each of the two preceding calendar years, effective July 1, 2020. 2. Reporting Thresholds For Open–End Lines of Credit The final rule sets the permanent threshold for banks and non–banks at 200 open–end lines of credit in each of the two preceding calendar years, effective, January 1, 2022.
Under the final rule, lenders that originated fewer than 100 closed–end mortgage loans in either 2018 or 2019 need not collect and report data on closed–end mortgage loans after July 1, 2020. For open-end lines of credit, the 500 line threshold applies until January 2022. Commencing January 1, 2022, lenders that originated fewer than 200 open–end lines of credit in either 2020 or 2021 need not collect and report data on open–end lines of credit under HMDA.
SPECIAL NOTE: In November of 2022, a federal judge vacated Consumer Finance Protection Bureau (CFPB) regulations that expanded the number of small-volume lenders deemed to be exempt from Home Mortgage Disclosure Act (HMDA) reporting requirements.
The court decision invalidated the closed-end loan exemption expansions referenced in item C.1. immediately above, but did not impact the threshold of 200 open-end lines of credit originated in each of the prior two years referenced in item C.2. immediately above. The court vacated and remanded the closed-end mortgage loan reporting threshold to the CFPB for further action. The CFPB is expected to issue instructions regarding how to comply with the HMDA requirements to institutions affected by the ruling in the near future.
It is recommended that banks expecting to exceed the closed-end threshold of 25 closed-end mortgage loans in each of the two preceding calendar years (as established in 2015) begin to make HMDA reporting preparations, as it likely that reporting obligations will resume for the 2023 calendar year.
A for-profit mortgage lending institution (other than a bank, savings association, or credit union) is exempt if the institution had neither a home or branch office in an MSA on the preceding December 31 or the total assets of the institution combined with those of any parent corporation were $10 million or less and the institution originated fewer than 100 home purchase loans (including refinancings in the preceding calendar year). A bank losing an exemption based on asset size or location must comply with Regulation C beginning with the calendar year following the year in which it lost its exemption. The United States District Court for the District of Columbia recently issued an order vacating the 2020 Home Mortgage Disclosure Act (HMDA) Final Rule as to the loan volume reporting threshold for closed-end mortgage loans. The decision means that the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA Final Rule, rather than the 100-loan threshold set by the 2020 HMDA Final Rule. The 2020 Rule, which amended Regulation C, permanently increased the reporting threshold from the origination of at least 25 closed-end mortgage loans in each of the two preceding calendar years to 100 and permanently increased the threshold for collecting and reporting data about open-end lines of credit from the origination of 100 lines of credit in each of the two preceding calendar years to 200.
The Consumer Financial Protection Bureau (CFPB) in recognition that financial institutions affected by this change may need time to implement or adjust policies, procedures, systems, and operations to come into compliance with their reporting obligations, does not view action regarding these institutions’ HMDA data as a priority. As a result, the CFPB does not intend to initiate enforcement actions or cite HMDA violations for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020 for institutions subject to the CFPB’s enforcement or supervisory jurisdiction that meet Regulation C’s other coverage requirements and originated at least 25 closed-end mortgage loans in each of the two preceding calendar years but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years.
The Federal Deposit Insurance Corporation (FDIC) has followed the lead of the CFPB and announced that it does not intend to initiate enforcement actions or site HMDA violations for failures to report closed-end mortgage loan data for 2022, 2021, or 2020 by FDIC-supervised institutions that (1) are subject to Regulation C's other coverage requirements, and (2) originated at least 25 closed-end mortgage loans in each of the two preceding calendar years, but fewer than 100 closed-end mortgage loans in either or both of the two preceding calendar years.
The FDIC indicates that FDIC-supervised institutions may elect to report data voluntarily for those years, but the FDIC does not expect those institutions to collect and report data retroactively for closed-end mortgage loans covered by the Court’s order vacating the CFPB 2020 HMDA Final Rule. Accordingly, institutions affected by the Court’s order and that meet the reporting thresholds of 25 closed-end mortgage loans in each of the two preceding calendar years as of 2023, should start collecting data in 2023 and reporting data in 2024.
D. Scope of Covered Preapproval Requests
Until January 1, 2018, the collection, recording, and reporting of preapproval requests that are approved but not accepted is optional under Regulation C. Beginning January 1, 2018, covered institutions will be required to collect, record, and report information for approved but not accepted preapproval requests for home purchase loans. However, preapproval requests for open-end lines of credit, reverse mortgages, and home purchase loans to be secured by multifamily dwellings will not be covered transactions under the final rule, effective January 1, 2018.
E. HMDA Reporting - Partial Exemptions
The final rule also incorporates into Regulation C the “partial exemptions” under the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), including the following: (i) clarifying that insured depository institutions covered by a partial exemptions may, at their option, report exempt data fields as long as they report all data fields that the data point comprises; (ii) clarifying that only loans and lines of credit that are otherwise reportable under Regulation C count towards the thresholds for the partial exemptions; (iii) clarifying which of the data points in Regulation C are covered by the partial exemptions; (iv) designating a non-universal loan identifier for certain partially exempt transactions; and (v) clarifying the exception to the partial exemptions for insured depository instructions with less than satisfactory Community Reinvestment Act (CRA) examination history.
1. Data Points – Collection and Reporting
The 2018 HMDA Final Rule specifies the data points that do not need to be collected and reported if a transaction qualifies for a partial exemption, as well as those data points that must be collected and reported even if a transaction qualifies for a partial exemption. There are a total of 48 data points currently required by Regulation C. Under S. 2155,26 of the 48 data points do not need to be collected and reported if the transaction qualifies for a partial exemption. The final rule clarifies that, for purposes of the partial exemptions, “closed-end mortgage loan” and “open-end line of credit” mean only those loans or lines of credit that would otherwise be reportable under HMDA.
The final rule specifically delineates which data points are covered by the partial exemption which may be found at https://files.consumerfinance.gov/fMocuments/bcfp_hmda_interpretive-procedural-rule_2018-08_executive-summarv.pdf (pages 6-8).
2. CRA Exception
Notwithstanding the new partial exemptions, an insured depository institution does not qualify for the exemption if it has received a rating of “needs to improve” record of meeting community credit needs during each of its two most recent examinations or a rating of “substantial noncompliance” in meeting community credit needs on its most recent examination.
The final rule also clarifies that, for purposes of determining whether the CRA exception applies to an insured depository that would otherwise qualify for a partial exemption, the CRA examination assessment must be made as of December 31 of the proceeding calendar year. For example, an insured depository institution that received a rating of “substantial non-compliance” on its most recent CRA examination, which occurred on or before December 31, 2019, would not be eligible for the partial exemptions in 2020. Likewise, an insured depository institution that received a rating of “needs to improve record of meeting community credit needs” on each of its two most recent CRA examinations that occurred on or before December 31, 2019, would not be eligible for the partial exemptions in 2020.
3. Non-Universal Identifier
The final rule provides that, if a transaction qualifies for a partial exemption and the insured depository institution opts not to report a universal loan identifier, the institution must report a non-universal loan identifier for the loan or application that complies with requirements specified in the final rule so that each loan and application reported for HMDA purposes is identifiable. A non-universal loan identifier does not need to be unique within the industry, but it still must be unique within the insured depository institution and meet other requirements specified in the 2018 final rule. It does not need to include a Legal Entity Identifier or a check digit.
4. Voluntary Reporting
An insured depository institution has the option to voluntarily report exempt data points for transactions that qualify for a partial exemption. An insured depository institution that opts to voluntarily report an exempt data point must report all data fields that the specific data point comprises.
5. Transition Issues
The final rule applies to data collected or reported under HMDA on or after May 24, 2018. An insured depository institution that is eligible for a partial exemption for a transaction does not need to collect exempt data points on or after May 24, 2018. In addition, such institutions are not required to report certain data that may have been collected on or before May 24, 2018. For example, if an insured depository institution is eligible for a partial exemption for its closed-end mortgage loans and the institution collected data for its closed-end mortgage loans prior to May 24, 2018, the institution is not required to report in 2019 any data covered by the partial exemption for its closed-end mortgage loans.
III. COMPILATION OF LOAN DATA - LOAN/APPLICATION REGISTER (LAR)
Regulation C provides for a “register form” of reporting. Lenders must record data regarding applications for (whether granted, denied or withdrawn) and originations and purchases of, home-purchase loans, home-improvement loans and refinancings for each calendar year, requests under a preapproval program when preapproval requests are denied or result in the origination of home purchase loans and also report the lien status for applications and loan originations, i.e., disclose whether a loan is a first or second lien secured by a dwelling or unsecured. Lien status need not be reported on purchase loans.
For HMDA data collected on or after January 1, 2018, covered institutions will collect, record, and report additional information about originations of, purchases of, and applications for covered loans. The final rule adds new data points for applicant or borrower age, credit score, automated underwriting system information, unique loan identifier, property value, application channel, points and fees, borrower-paid origination charges, discount points, lender credits, loan term, prepayment penalty, non-amortizing loan features, interest rate, and loan originator identifier as well as other data points. The final rule also modifies several existing data points. For more information on the new and modified data points, see the HMDA Summary of Reportable Data chart (http://files.consumerfinance.gov/f/201510_cfpb_hmda-summary-of-reportable-data.pdf).
Transactions must be recorded on the LAR within 30 calendar days after the end of each calendar quarter in which final action is taken. For states nonmember banks, the FDIC requires LAR recording within 30 days after a loan application is finally denied, withdrawn or goes to closing. The data must be completed and recorded in a registered format (See, Appendix A which contains the LAR and instructions for its completion) and includes the following items:
A. Application or Loan Information
1. Application or Loan Number
The bank must provide an identifying loan number (of the bank’s choosing, not to exceed 25 alpha-numeric characters) for future retrieval of a loan or application file.
2. Date Application Received by Month, Day and Year
If the bank usually records the date shown on the application form, that date may be used. For purchased loans, “NA” is acceptable. For paper submissions, use numerals in the form MM/DD/CCYY (e.g., 1/15/2003) and for electronic form submissions, the format is CCYYMMDD.
3. Type of Loan or Application
Allows for codes indicating the type of loan or application as follows:
Code 1--Conventional (any loan other than FHA, VA, FSA, or RHS loans) Code 2--FHA-insured (Federal Housing Administration) Code 3--VA-guaranteed (Veterans Administration) Code 4--FSA/RHS-guaranteed (Farm Service Agency or Rural Housing Service)
4. Property Type
Allows for codes indicating the type of property as follows:
Code 1--One-to four-family dwelling (other than manufactured housing) Code 2--Manufactured housing Code 3--Multifamily dwelling
NOTE: Code 1 is used for loans on individual condominium or cooperative units and if the lender cannot determine (despite reasonable efforts to find out) whether the loan or application relates to a manufactured home, the lender should use Code 1.
5. Purpose of Loan or Application
Allows for codes indicating the purpose of the loan or application as follows:
Code 1--Home purchase Code 2--Home improvement Code 3--Refinancing
A refinancing is not reported if, under the loan agreement, the lender was unconditionally obligated to refinance the obligation, or the lender was obligated to refinance the obligation subject to conditions within the borrower’s control.
6. Owner Occupancy
Allows for codes indicating whether the property to which the loan or loan application relates is to be owner-occupied as a principal as follows:
Code 1--Owner-occupied as a principal dwelling Code 2--Not owner-occupied as a principal dwelling Code 3--Not applicable
NOTE: Code 1 is used for purchased loans, unless the loan documents or application indicate that the property will not be owner-occupied as a principal residence. Code 2 is used for second homes or vacation homes and rental properties. Code 3 is used if the property to which the loan relates is a multifamily dwelling; not located in a metropolitan area; or located in a metropolitan area in which the bank has neither a home nor a branch office. As an alternative, the bank may report the actual occupancy status, using Code 1 or 2 as applicable.
7. Loan Amount
The dollar amount granted or requested, in thousands, rounding to the nearest thousand. Do not report loans of less than $500. For a home purchase loan the bank originated, report the principal amount of the loan. For a home purchase loan that the bank purchased, report the unpaid principal balance of the loan at the time of purchase. For a home improvement loan, report the entire amount of the loan – including unpaid finance charges if that is how such loans are recorded on the bank’s books – even if only a part of the proceeds is intended for home improvement. If the bank opts to report home-equity lines of credit, report only the portion of the line intended for home improvement or home purchase. For refinancings, the bank reports the total amount of the refinancing, including both the amount outstanding on the original loan and any amount of ‘new money.” For a loan application that was denied or withdrawn, report the amount applied for.
8. Request for Preapproval
Allows for codes indicating whether the application is a request for a preapproval as follows:
Code 1--Preapproval requested Code 2--Preapproval not requested Code 3--Not applicable
NOTE: Code 3 is used for applications or loans for home improvement or refinancing, and for purchased loans.
B. Action Taken
1. Type of Action
Allows for codes indicating the type of action taken on the application or loan as follows:
Code 1--Loan originated Code 2--Application approved but not accepted Code 3--Application denied Code 4--Application withdrawn Code 5--File closed for incompleteness Code 6--Loan purchased by your institution Code 7--Preapproval request denied Code 8--Preapproval request approved but not accepted (optional reporting)
NOTE: Code 1 is used for a loan that is originated, including one resulting from a request for preapproval. For a counteroffer made by the bank, Code 1 is used if the applicant accepts and Code 3 is used if the applicant turns down the counteroffer or does not respond. Code 2 is selected when the application is approved but the applicant (or the loan broker or correspondent) fails to respond to the bank’s notification of approval or its commitment letter within the specified time. This code is not used for a preapproval request. Code 4 is used only when the application is expressly withdrawn by the applicant before a credit decision is made. It is not used if a request for preapproval is withdrawn; preapproval requests that are withdrawn are not reported under HMDA. Code 5 is utilized if the bank sent a written notice of incompleteness under § 202.9(c)(2) of Regulation B (Equal Credit Opportunity) and the applicant did not respond to the bank’s request for additional information within the period of time specified in its notice. The code is not used for requests for preapproval that are incomplete; such preapproval requests are not reported under HMDA.
2. Date of Action
For paper submissions, use numerals in the form MM/DD/CCYY (e.g., 1/15/2003) and for electronic form submissions, the format is CCYYMMDD. For loans originated, the settlement or closing date is reported, whereas, for loans purchased, the bank’s date of purchase is reported. In the case of applications and preapprovals denied, applications and preapprovals approved but not accepted by the applicant, and files closed for incompleteness, the date that the action was taken by the bank or the date the notice was sent to the applicant is reported. For applications withdrawn, the date the bank received the applicant’s express withdrawal, or the date shown on the notification from the applicant, in the case of a written withdrawal is used. For preapprovals that lead to a loan origination, the date of the origination is reported.
C. Property Location
1. Metropolitan Statistical Area (MSA)
For each loan or loan application, report the MSA number. MSA boundaries are defined by OMB and the bank must use the boundaries that in effect on January 1 of the calendar year for it is reporting. A listing of MSAs is available from the bank’s primary federal regulator or the FFIEC.
2. State and County
The Federal Information Processing Standard (FIPS) two-digit numerical code for the state and the three-digit numerical code for the county is used (these codes are available from the bank’s primary federal regulator or the FFIEC).
3. Census Tract
The census tract where the property is located is reported. If the property is located in a county with a population of 30,000 or less in the 2000 census, the bank should report “NA” (even if the population has increased above 30,000 since 2000) or enter the census tract number, notwithstanding paragraph 6 (See, below).
4. Census Tract Number
The census tract number may be found by consulting the U.S. Census Bureau’s Census Tract/Street Index for 2000; for addresses not listed in the index, consult the Census Bureau’s census tract outline maps. The bank should use maps from the Census Bureau’s 2000 CPH-3 series, or equivalent 2000 census data from the Census Bureau (such as the Census TIGER/Line file) or from a private publisher.
5. Property Located Outside an MSA
For loans on property located outside the MSAs in which a bank has a home or branch office, or for property located outside of any MSA, the bank may opt to either (1) report the MSA, state and county codes and the census tract number; and if the property is not located in any MSA, it may report “NA” in the MSA reporting column or (2) report “NA” wither or not the codes or numbers exist for a property location, unless paragraph 6 (See, below) applies.
6. Data Reporting for Banks and Savings Associations Required to Report Data on Small Business, Small Farm, and Community Development Lending Under the CRA Regulations
If the bank is required to report data under the regulations that implement the CRA, it must enter the property location on the bank’s HMDA/LAR even if the property is outside MSAs in which it has a home or branch office, or is not located in any MSA.
7. Requests for Preapproval
If an application is a request for preapproval that is denied or that is approved but not accepted by the applicant, the bank may report “NA”.
D. Applicant Information – Ethnicity, Race, Sex, and Income
Regulation C, Appendix B has instructions for the collection of data on ethnicity, race and sex, and also has a sample form for data collection.
1. Applicability
This information is reported for loans that the bank originates and for applications that do not result in an origination. The bank does not have to collect or report such information for loans purchased and may use the Codes for “not applicable.” If the borrower or applicant is not a natural person (e.g., corporation or partnership), the Codes for “not applicable” are used.
2. Mail, Internet, or Telephone Applications
Any loan applications mailed to applicants or made available to applicants via the Internet must contain a collection form similar to that shown in Appendix B regarding ethnicity, race, and sex. For applications taken entirely by telephone, the bank may, but is not required to, request the data on ethnicity, race and sex. If the applicant does not provide these data in an application taken by mail, Internet, or telephone, the bank should report the code for “information not provided by applicant in mail, Internet, or telephone application” as detailed in paragraphs I.D.3., 4., and 5 below (See, Appendix B for complete information on the collection of data in mail, Internet or telephone applications).
3. Ethnicity of Borrower or Applicant
The following codes indicate the ethnicity of the applicant or borrower and of any co-applicant or co-borrower:
Code 1--Hispanic or Latino Code 2--Not Hispanic or Latino Code 3--Information not provided by applicant in mail, Internet or telephone application Code 4--Not applicable Code 5--No co-applicant
4. Race of Borrower or Applicant
The following codes indicate the race of an applicant or borrower and of any co-applicant or co-borrower.
Code 1--American Indian or Alaska Native Code 2--Asian Code 3--Black or African American Code 4--Native Hawaiian or Other Pacific Islander Code 5--White Code 6--Information not provided by applicant in mail, Internet or telephone application Code 7--Not applicable Code 8--No co-applicant
If an applicant picks more than one racial designation, report all Codes that correspond to the applicant’s selections. Code 5 (for ethnicity) and Code 7 (for race) for “not applicable” are used only when an applicant or co-applicant is not a natural person or when an applicant or co-applicant information is not available because the loan has been purchased by the bank. For more than one co-applicant, report required information only for the first co-applicant listed on the application form. If there are no co-applicants or co-borrowers, use Code 5 (for ethnicity) and Code 8 (for race) for “no co-applicant.”
5. Sex of Borrower or Applicant
The following codes indicate the race of an applicant or borrower and of any co-applicant or co-borrower:
Code 1--Male Code 2--Female Code 3--Information not provided by applicant in mail, Internet, or telephone application Code 4--Not applicable Code 5--No co-applicant or co-borrower Code 4 (“not applicable”) is only used when an applicant or co-applicant is not a natural person or when an applicant or co-applicant information is not available because the loan has been purchased by the bank. When there is more than one co-applicant, report the required information only for the first co-applicant listed on the application form and if there are no co-applicants or co-borrowers, use Code 5 for “no co-applicant.”
6. Income
Report the gross annual income (rounded to the nearest thousand dollars) that the bank relied on in making the credit decision. For multifamily dwelling loans or when no income information is asked for or relied on in the credit decision, report “NA.” If an applicant or co-applicant is not a natural person or an applicant or co-applicant information is unavailable because the loan has been purchased by the bank, also report “NA.”
E. Type of Purchaser
Report the applicable code to indicate whether a loan that the bank originated or purchased was then sold to a secondary market entity within the same calendar year:
Code 0--Loan was not originated or was not sold in calendar year covered by register Code 1--Fannie Mae Code 2--Ginnie Mae Code 3--Freddie Mac Code 4--Farmer Mac Code 5--Private securitization Code 6--Commercial bank, savings bank or savings association Code 7--Life insurance company, credit union, mortgage bank, or finance company Code 8--Affiliate institution Code 9--Other type of purchaser Code 0 is used for applications that were denied, withdrawn or approved but not accepted by the applicant and for files closed for incompleteness. Code 0 is also used if the bank originated or purchased a loan and did not sell it during that same calendar year. If the bank sells the loan in a succeeding year, it need not report the sale. Code 2 is used if the bank conditionally assigns a loan to Ginnie Mae in connection with a mortgage-backed security transaction. Code 8 is used for loans sold to an institution affiliated with the bank, such as its subsidiary or a subsidiary of its parent corporation.
F. Reasons for Denial
The bank may report the reason for denial and may indicate up to three reasons, using the following codes. There is no code to be reported if the “action taken” on an application is not a denial, e.g., application was withdrawn or file was closed for incompleteness.
Code 1--Debt-to-income ratio Code 2--Employment history Code 3--Credit history Code 4--Collateral Code 5--Insufficient cash (downpayment, closing costs) Code 6--Unverifiable information Code 7--Credit application incomplete Code 8--Mortgage insurance denied Code 9--Other
If the bank uses the model form for adverse action found in Appendix to Regulation B (Form C-1 in Appendix C, Sample Notification Form), the above-listed codes should be used as follows:
Code 1--Income insufficient for amount of credit requested, and Excessive obligations in relation to income. Code 2--Temporary or irregular employment, and Length of employment. Code 3--Insufficient number of credit references provided; Unacceptable type of credit references provided; No credit file; Limited credit experience; Poor credit performance with us; Delinquent past or present credit obligations with others; Garnishment, attachment, foreclosure, repossession, collection action, or judgment; and Bankruptcy. Code 4--Value or type of collateral not sufficient. Code 6--Unable to verify credit references; Unable to verify employment; Unable to verify income; and Unable to verify residence. Code 7--Credit application incomplete. Code 9--Length of residence; Temporary residence; and Other reasons specified on notice.
G. Pricing-Related Data
1. Rate Spread
For a home-purchase loan, a refinancing, or a dwelling-secured home improvement loan that the bank originated, report the spread between the annual percentage rate (APR) and the average prime offer rate for a comparable transaction if the spread is equal to or greater than 1.5 percentage points for first-lien loans or 3.5 percentage points for subordinate lien loans. To determine whether the rate spread meets this threshold, use the average prime offer rate in effect for the type of transaction as of the date the interest rate was set, and use the APR for the loan, as calculated and disclosed to the consumer under Section 226.6 or 226.18, as applicable, of Regulation Z. Current and historic average prime offer rates are set forth in the tables published on the FFIEC’s web site (http://www.ffiec.gov/ratespread/newcalc.aspx ) entitled “Average Prime Offer Rates – Fixed” and “Average Prime Offer Rates – Adjustable.” Use the most recently available average prime offer rate. “Most recently available” means the average prime offer rates set forth in the applicable table with the most recent effective date as of the date the interest rate was set. Do not use an average prime offer rate before its effective date.
2. Date the Interest Rate Was Set
The relevant date to use to determine the average prime offer rate for a comparable transaction is the date on which the loan’s interest rate was set by the bank for the final time before closing. If an interest rate is set pursuant to a “lock-in” agreement between the bank and the borrower, then the date on which the agreement fixes the interest rate is the date the rate was set. If a date is re-set after a lock-in agreement is executed (for example, because the borrower exercises a float-down option or the agreement expires), then the relevant date is the date the rate is re-set for the final time before closing. If no lock-in agreement is executed, then the relevant date is the date on which the institution sets the rate for the final time before closing.
IV. COLLECTION OF DATA ON RACE OR NATIONAL ORIGIN, SEX AND INCOME
A bank must also collect data about the race or national origin and sex of the applicant or borrower (See, Appendix B). If the applicant or borrower chooses not to provide the information, the lender shall note the data on the basis of visual observation or surname, to the extent possible. The requirement for reporting data on race or national origin, sex and income does not apply to loans purchased by a bank. In addition, banks with assets of $30 million or less are not required to report this information at all.
The revised U.S. Office of Management and Budget standards are used for reporting ethnicity, race, sex and income. The standards prescribe five racial designations: American Indian or Alaskan Native; Asian; Black or African American; Native Hawaiian or Other Pacific Islander; and White. The “Other” option is eliminated. Respondents must be offered the option of selecting one or more designations. Hispanic status is to be reported under national origin and not under race.
Questions regarding the ethnicity, race and sex of an applicant may be listed on the bank’s loan application form or on a separate form that refers to the application. The lender must ask the applicant for such information (but cannot require an applicant to provide it) whether the application is taken in person, by mail, on the telephone or on the Internet.
On or after January 1, 2003, a bank is required to ask all mortgage loan applicants who apply over the telephone for race, ethnic and gender information; thus telephone applications are subject to the same requirements as those taken by mail or over the Internet. Applicants may decline to provide the information and the HMDA log has an option to reflect that possibility. A bank must ask telephone applicants for monitoring information under Appendix A, paragraph V.D.2, and Appendix B, paragraph I.B.4, using the race or national origin categories in Appendix A, paragraph V.D.3 and in the sample data collection form in Appendix B. For applications taken by telephone, the information in the collection form must be stated orally by the bank, except for that information which pertains uniquely to applications taken in writing.
An applicant must be informed that the federal government requests such information to monitor compliance with federal statutes that prohibit lenders from discriminating against applicants on these bases and that if the information is not provided where the application is taken in person, the loan officer is required to note the data on the basis of visual observation or surname. The lender must offer the applicant the option of selecting one or more racial designations. If an applicant chooses not to provide the information for an application taken in person, this fact should be noted on the form and an applicant’s ethnicity, race and sex are to be noted on the basis of visual observation and surname, to the extent possible. If an applicant chooses not to answer these questions or fails to provide the information on an application taken by mail, telephone or on the Internet, the data need not be provided. In such case, the loan officer should indicate that the application was received by mail, telephone or Internet, if it is not otherwise evident on the face of the application.
For data collected in or after 2018, the final rule amends the requirements for collection and reporting of information regarding an applicant’s or borrower’s ethnicity, race, and sex.
First, the final rule adds a requirement to report how the institution collected the information about the applicant’s or borrower’s ethnicity, race, and sex. A covered institution will report whether or not it collected the information on the basis of visual observation or surname. Both the final rule and current Regulation C require a covered institution to collect information about an applicant’s ethnicity, race, and sex on the basis of visual observation or surname when an applicant chooses not to provide the information for an application taken in person.
Second, for applicant or borrower information collected on or after January 1, 2018, covered institutions must permit applicants to self-identify their ethnicity and race using disaggregated ethnic and racial subcategories. Covered institutions will report disaggregated information applicants provide. However, the final rule will not require or permit covered institutions to use the disaggregated subcategories when identifying the applicant’s ethnicity and race based on visual observation or surname.
The final rule includes a new sample data collection form in Appendix B that provides the required aggregated categories and disaggregated subcategories for ethnicity and race.
V. DISCLOSURE AND REPORTING REQUIREMENTS
A. “Mortgage Loan Disclosure Statement” – Public Disclosure
A bank is required to make its Mortgage Loan Disclosure Statement available to the public at its home office no later than 3 calendar days after the bank receives it from its supervisory agency. Additionally, a bank must either make its disclosure available to the public (for a period of 5 years) within 10 business days of receiving it in at least one branch office in each additional MSA where the bank has an office (the disclosure statement need only contain data relating to the MSA where the branch is located) or post the address for sending written requests for the disclosure statement in the lobby of each branch office in an MSA where the bank has offices and mail or deliver a copy of the disclosure statement, within 15 calendar days of receiving a written request office (the disclosure statement need only contain data relating to the MSA where the branch is located). A “business day” is any calendar day other than Saturday, Sunday, or a legal public holiday. A general notice regarding the availability of its disclosure statement must be posted by the bank in the lobby of the home office and in each branch office located in an MSA. Upon request, a bank must promptly provide the location of the bank’s offices where the statement is available. A bank may change a reasonable fee for costs incurred in providing or reproducing a statement. The data must be available for inspection and copying during normal business hours that the bank is open to the public.
B. “Loan Application Register” – Public Disclosure
By March 1 following the end of the calendar year for which the loan data are compiled, a bank must send its complete LAR to its primary regulator (See, Regulation C, Appendix A). A copy of the LAR must be retained by the bank for not less than three years
A bank must submit data to its primary regulator in an automated, machine-readable format that conforms to FR HMDA-LAR. Procedures and technical specifications for automated data submission may be obtained from the primary regulator; some regulatory agencies have software available. A reporting bank with less than 25 or fewer line entries may submit data in paper form in which case the bank must send two copies of its complete LAR to the federal supervisory agency (See, Regulation C, Appendix A).
The Bureau is developing a new web-based submission tool for reporting HMDA data. Covered institutions will report data using the new web-based submission tool beginning in 2018.
Appendix A, which provides instructions for completing and submitting the HMDA loan/application register (LAR), is amended effective January 1, 2018 to include new transition requirements for data collected in 2017 and reported in 2018. In particular, amended appendix A requires that a covered institution electronically submit its LAR. In 2018, covered institutions will report 2017 data required under current Regulation C, but will use the new electronic submission tool and will submit data in accordance with amended Appendix A and procedures that will be available at http://www.consumerfinance.gov/hmda.
Effective January 1, 2019, Appendix A is removed from Regulation C. Beginning in 2019, covered institutions will report the new dataset required by the final rule, using the new electronic submission tool and revised procedures that will be available at http://www.consumerfinance.gov/hmda.
Beginning in 2018, covered institutions will no longer be required to provide a disclosure statement or a modified LAR to the public upon request. Instead, in response to a request, a covered institution will provide a notice that its disclosure statement and modified LAR are available on the CFPB’s website. The final rule includes sample language that covered institutions can use for these purposes. These revised disclosure requirements will apply to data collected on or after January 1, 2017 and reported in or after 2018.
For data collected in or after 2018 and reported in or after 2019, the CFPB will use a balancing test to determine whether and, if so, how HMDA data should be modified prior to its disclosure in order to protect applicant and borrower privacy while also fulfilling HMDA’s disclosure purposes. At a later date, the CFPB will provide a process for the public to provide input regarding the application of this balancing test to determine the HMDA data to be publicly disclosed.
VI. DATA REPORTING UNDER CRA FOR LARGE INSTITUTIONS
As required by regulations implementing the Community Reinvestment Act (CRA), banks having total assets of $250 million or more (or are subsidiaries of a holding company with total assets of $1 billion or more) as of December 31 for each of the immediately preceding two years, must also collect the location of property located outside the MSAs in which the bank has a home or branch office, or outside any MSAs.
VII. QUARTERLY REPORTING REQUIREMENTS
Beginning in 2020, the final rule requires quarterly reporting for covered institutions that reported a combined total of at least 60,000 applications and covered loans in the preceding calendar year. When determining whether it is required to report on a quarterly basis, an institution will not count covered loans that it purchased in the preceding calendar year. In addition to their annual data submission, these larger-volume reporters will submit HMDA data for the first three quarters of the year on a quarterly basis. The first quarterly submission will be due by May 30, 2020.
APPENDIX A TO PART 203
Form and Instructions for Completion of HMDA Loan/Application Register - http://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol2/CFR-2012-title12-vol2-part203-appA
APPENDIX B TO PART 203
Form and Instructions for Data Collection on Ethnicity, Race and Sex – http://www.gpo.gov/fdsys/granule/CFR-2012-title12-vol2/CFR-2012-title12-vol2-part203-appB
VIII. HMDA FILE SPECIFICATIONS
Resources for HMDA filers regarding the file specifications for 2017 and 2018 may be found on the CFPB’s website at www.consumerfinance.gov/hmda/for-filers.
NOTE: The file format is being changed from a fixed field file to a delimited file format.
IX. REFERENCE CHART
The Consumer Financial Protection Bureau (CFPB) has issued a new chart, the Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart, which combines the Summary of Reportable Data Chart, the filing instructions from the 2018 filing instructions guide, and the reporting “not applicable” chart into a single reference tool. The new chart may be accessed at https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/hmda-implementation/.
X. UNIFORM RESIDENTIAL LOAN APPLICATION
The Consumer Financial Protection Bureau (CFPB) has issued a notice clarifying that use of the new Uniform Residential Loan Application (URLA) is compliant with Regulation B. The notice confirms that the 2016 URLA complies with Regulation B requirements on requests for information, notwithstanding that the regulation has not been updated to reflect this fact. The new URLA is not required to be used, but if it is used generally without modification, it is deemed to be in compliance with Regulation B.
XI. HMDA IMPLEMENTATION PERIOD FOR EXPANDED INFORMATION ABOUT ETHNICITY AND RACE
The Consumer Financial Protection Bureau (CFPB) has issued a notice clarifying that banks will not be in violation of Regulation B for allowing applicants to self-identify using the disaggregated ethnic and racial categories in 2017 before it is required by the home mortgage disclosure act (HMDA) in 2018.
The notice allows institutions to collect the newly- expanded “disaggregated” ethnicity and race categories effective January 2017 (a year before the new HMDA rules actually require its use), without violating Regulation B. The CFPB believes that the early allowance may provide creditors time to begin to implement the regulatory changes and improve their compliance processes before the new requirement becomes effective.
The disaggregated categories are those that further break down the aggregate categories of ethnicities and races. Beginning in 2018, banks are required to permit applicants to self-identify using both the aggregate and disaggregated subcategories.
Reporting of this information will vary depending on when final action is taken. For 2017 applications on which final action is also taken in 2017, only the current aggregated information will be reported even if applicants have chosen to self-identify using the disaggregated categories as well. For such applications, if an applicant selects multiple disaggregated ethnicity or race categories that correspond to a single aggregate ethnicity or race category, the financial institution shall submit the applicable code for that aggregate ethnicity or race category. If an applicant selects multiple disaggregated race categories that correspond to multiple aggregate race categories, the financial institution shall submit the applicable code for each of those aggregate race categories. If an applicant selects an “other” race or ethnicity category, with or without providing a written response, the financial institution shall submit the applicable code for that aggregate race or ethnicity category. If an applicant selects multiple aggregate ethnicity categories by either selecting both Hispanic or Latino and Not Hispanic or Latino or selecting Not Hispanic or Latino and selecting the “other” ethnicity category, with or without providing a written response, the financial institution may submit either the applicable code for Hispanic or Latino or the applicable code for Not Hispanic or Latino.
If final action is taken on 2017 applications on or after January 1, 2018, the bank may choose to report the disaggregated information, but is not required to. For 2018 applications, collecting and reporting the disaggregated information will be required.
XII. UNIFORM RESIDENTIAL LOAN APPLICATION
The Consumer Financial Protection Bureau (CFPB) has published a notice concerning the update of the redesigned Uniform Residential Loan Application (URLA) to include an applicant language preference question.
The CFPB administers the Equal Credit Opportunity Act (ECOA), implementing Regulation, Regulation B. The ECOA provides, in part, that no provision of ECOA imposing liability shall apply to any act done or omitted in good faith in conformity with any official rule, regulation or interpretation thereof by the CFPB. The CFPB notice constitutes such an interpretation or approval, and therefore Section 706(e) protects a creditor from civil liability under ECOA for any act done or omitted in good faith in conformity with this notice.
The CFPB has determined that the final redesigned URLA with respect to requests for information about national origin is in compliance with applicable provisions of Regulation B (Section 1002.5(b) through (d)). As a result, a creditor’s use of the final redesigned URLA without any modification that would violate the applicable provisions of Regulation B would be in compliance with the regulation. The CFPB has also determined that because the substance and form of Section 7 of the final redesigned URLA is substantially similar to the form the CFPB provides as a model form in Regulation C, the final redesigned URLA may be used in complying with Regulation B (Section 1002.13). However, a creditor’s use of the final redesigned URLA is not required under Regulation B. The final redesigned URLA may be found at: https://www.gpo.gov/fdsys/pkg/FR-2017-11-24/pdf/2017-25434.pdf.
+ The asset threshold usually changes annually. For data collection in 2026 the asset threshold is $59 million as of January 7, 2026. As a result, Depository Institutions with assets of $59 million or less as of January 7, 2026, are exempt from collecting data in 2026 An institution’s exemption from collecting data in 2026 does not affect its responsibility to report the data it was required to collect in 2025. The Federal Reserve Board adjusts the threshold based on the year-to-year change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers, for each 12-month period ending in November, with rounding to the nearest million.