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HMDA Reporting for Loans Secured by Multiple Properties

We have received numerous questions about how to report multiple properties on the HMDA LAR for 2018. Quite frankly, it can be very confusing because some fields are reported on the property securing the loan and other fields are reported on the transaction.

The commentary for §1003.4(a)(9) – 2 states the following:

MULTIPLE PROPERTIES WITH MORE THAN ONE PROPERTY TAKEN AS SECURITY

If more than one property is taken or, in the case of an application, proposed to be taken as security for a single covered loan, a financial institution reports the covered loan or application in a single entry on its loan/application register and provides the information required by § 1003.4(a)(9) for one of the properties taken as security that contains a dwelling. A financial institution does not report information about the other properties taken as security. If an institution is required to report specific information about the property identified in § 1003.4(a)(9), the institution reports the information that relates to the property identified in § 1003.4(a)(9).

For example, Financial Institution X originated a covered loan that is secured by both property A and property B, each of which contains a dwelling. Financial Institution X reports the loan as one entry on its loan/application register, reporting the information required by § 1003.4(a)(9) for either property A or property B. If Financial Institution X elects to report the information required by § 1003.4(a)(9) about property A, Financial Institution X also reports the information required by § 1003.4(a)(5), (6), (14), (29), and (30) related to property A. For aspects of the entries that do not refer to the property identified in § 1003.4(a)(9) (i.e., § 1003.4(a)(1) through (4), (7), (8), (10) through (13), (15) through (28), (31) through (38)), Financial Institution X reports the information applicable to the covered loan or application and not information that relates only to the property identified in § 1003.4(a)(9).

So, what does this mean? Let’s break it down and look at each aspect of this commentary.

§1003.4(a)(9) refers to the location of the property securing the covered loan. In the case of multiple properties, the Financial Institution must decide which property to report on the HMDA LAR as one‐line entry. Remember: the property being reported must be a dwelling.

§1003.4(a)(9) includes the property address, and codes for the State, County and Census tract. These data reported for these fields will be based the property selected.

The end of the commentary states the information required by §1003.4(a)(5), §1003.4(a)(6), §1003.4(a)(14), §1003.4(a)(29), and §1003.4(a)(30) also is only reported for the property reported under §1003.4(a)(9). Six reported fields will be based on the property the Financial Institution has selected to report: and 35 fields based on the commentary in §1003.4(a)(1) through (4), (7), (8), (10) through (13), (15) through (28), and (31) through (38) will be reported based on the entire collateral pool or the transaction as a whole

Attached is an easy‐to‐use chart to help you determine which fields should be reported based on the property and which fields should be reported based on the entire transaction.

Field TypeReported Based on  the Property  Reported on the LARReported Based  on the Entire  Transaction
Legal Entity Identifier (LEI)X
Universal Loan Identifier (ULI)X
Application DateX
Loan Type (conventional, FHA, VA, USDA)X
Loan  Purpose  (purchase,  home  improvement,  refinance,  cash‐out  refinance, other) X
PreapprovalX
Construction  Method  (site‐built  or  manufactured home)X
Occupancy  Type  (principal  residence,  second residence, investment property)X
Loan AmountX
Action TakenX
Action Taken DateX
Property InformationX
Applicant  Information  (ethnicity,  race,  sex, age, and income) X
Type of Purchaser X
Rate SpreadX
HOEPA StatusX
Lien StatusX
Credit Score X
Credit Scoring ModelX
Reason for DenialX
Total Loan Costs or Total Points and FeesX
Origination ChargesX
Discount Points paidX
Lender CreditsX
Interest RateX
Prepayment Penalty TermX
Debt‐to‐Income RatioX
Combined Loan‐to‐Value RatioX
Loan Term (months to maturity)X
Introductory  Rate  Period  (number  of  months to the first scheduled rate change  for a variable rate loan)X
Balloon Payment, Interest Only Payment,  Negative  Amortization,  Other  NonAmortizing Features X
Property ValueX
Manufactured  Home  Security  Property  Type (home and land or home and not  land) X
Manufactured  Home  Land  Property  Interest  (direct  ownership,  indirect  ownership,  paid  leasehold,  unpaid  leasehold) X
Total UnitsX
Multifamily Affordable UnitsX
Submission  of  Application  (directly  to  institution, not directly to institution) X
Initially Payable to Your InstitutionX
Mortgage  Loan  Originator  NMLS  IdentifierX
Automated Underwriting SystemX
Reverse MortgageX
Open‐End Line of CreditX
Business or Commercial PurposeX

Do you know how your 2018 HMDA LAR looks so far?

Let TCA’s HMDA Champion Team do a check up to make sure you are complying with the new HMDA guidelines. Contact TCA’s HMDA Champion Team at [email protected] or 800‐934‐REGS.

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