Podcast
Questions and Answers
When an applicant chooses not to provide their race or ethnicity, what is the lender required to do?
When an applicant chooses not to provide their race or ethnicity, what is the lender required to do?
- Report the race or ethnicity as 'Unknown'.
- Report the race or ethnicity based on the applicant's surname.
- Contact the applicant to request their race and ethnicity again.
- Report the race or ethnicity based on observation. (correct)
- Correct the information based on the applicant's appearance.
Which of the following is NOT considered essential information to be included in a Loan Application Register (LAR)?
Which of the following is NOT considered essential information to be included in a Loan Application Register (LAR)?
- MLO NMLS number.
- Applicant's age and gender. (correct)
- Property information, including loan terms and HOEPA status.
- Loan disposition information, including withdrawal or denial reasons.
- Underwriting information, such as credit scores and loan-to-value ratios.
In what scenario is it acceptable for a lender to indicate that the applicant did not provide race or ethnicity information?
In what scenario is it acceptable for a lender to indicate that the applicant did not provide race or ethnicity information?
- When the applicant's race and ethnicity is missing from a mail, internet, or telephone application. (correct)
- When the applicant's race and ethnicity appear to be inaccurate based on their name.
- When the applicant refused to provide their race and ethnicity.
- When the applicant requested their information be kept confidential.
- When the applicant failed to provide information about their race or ethnicity.
What is the purpose of coding within the LAR to describe how race and ethnicity information was collected?
What is the purpose of coding within the LAR to describe how race and ethnicity information was collected?
Which of the following is NOT a typical component of underwriting information included in a LAR?
Which of the following is NOT a typical component of underwriting information included in a LAR?
What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)?
What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)?
Which government agency is currently responsible for overseeing the implementation of HMDA?
Which government agency is currently responsible for overseeing the implementation of HMDA?
What type of information does HMDA require mortgage lenders to collect and report?
What type of information does HMDA require mortgage lenders to collect and report?
How often are mortgage lenders required to submit HMDA reports?
How often are mortgage lenders required to submit HMDA reports?
Which of the following is NOT considered a dwelling under the definition of HMDA?
Which of the following is NOT considered a dwelling under the definition of HMDA?
What is the purpose of the HMDA LAR (Loan Application Register)?
What is the purpose of the HMDA LAR (Loan Application Register)?
What is a potential use of the HMDA data collected by lenders?
What is a potential use of the HMDA data collected by lenders?
Which of the following demographic information is NOT collected by mortgage lenders as part of HMDA reporting?
Which of the following demographic information is NOT collected by mortgage lenders as part of HMDA reporting?
Flashcards
Home Mortgage Disclosure Act (HMDA)
Home Mortgage Disclosure Act (HMDA)
A law enacted in 1975 requiring lenders to collect and disclose mortgage loan data.
Regulation C
Regulation C
The regulation that implements HMDA and was transferred to the CFPB in 2011.
Lender Reporting Requirements
Lender Reporting Requirements
Lenders must report data about loans, including loan applications and originations annually.
Dwelling Definition under HMDA
Dwelling Definition under HMDA
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Excluded Properties under HMDA
Excluded Properties under HMDA
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HMDA Loan Application Register (LAR)
HMDA Loan Application Register (LAR)
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Data Elements Collected
Data Elements Collected
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Purpose of HMDA Data
Purpose of HMDA Data
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Race and Ethnicity Reporting
Race and Ethnicity Reporting
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LAR Coding
LAR Coding
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HOEPA Requirements
HOEPA Requirements
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Underwriting Information
Underwriting Information
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Loan Disposition Information
Loan Disposition Information
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Study Notes
Home Mortgage Disclosure Act (HMDA)
- HMDA, part of 12 CFR Part 1003 (Regulation C), was enacted in 1975.
- Regulation C's rule-writing authority transferred to the CFPB in 2011.
- HMDA is a disclosure law requiring lenders to collect, report, and disclose data on loans.
- HMDA does not restrict or mandate specific lending activities or establish quotas.
- Data is used by government agencies to allocate resources, address market failures, and monitor potential discrimination.
- HMDA data collection is public.
- Reports are annual and filed with the CFPB by March 1st of the following year.
HMDA Reporting Requirements
- Reports cover loans secured by dwellings (defined differently than other federal laws).
- "Dwelling" includes any residential structure (attached or not), vacation homes, rental properties, condos/co-ops, and manufactured/mobile homes.
- Excluded are recreational vehicles and transitory residences.
Loan Application Register (LAR) Data
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Data is gathered at the application stage, including pre-approvals.
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LAR logs application data for lenders.
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Collected information includes applicant details (ethnicity, race, sex, age, gross income) as provided by the applicant.(Lender should not alter the data).
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Applicants can decline to provide race & ethnicity, but the lender must report based on observation if the applicant makes such a choice.
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Data collection method codes (e.g., visual observation, applicant-provided surname) should be reported.
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"Information not provided" option for mail, internet, or telephone applications.
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Loan pricing, terms, and HOEPA status.
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Property details (if not a pre-approval).
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Underwriting data (credit scores, LTV ratios, AUS use).
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MLO NMLS number.
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Loan disposition (withdrawn, denied, and reason for denial if applicable).
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Loan sale info(type of buyer in secondary market).
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