HMDA INPUT AND REQUIREMENTS. Updated: 3/16/2017, S. Noble

Transcription

1 HMDA INPUT AND REQUIREMENTS Updated: 3/16/2017, S. Noble 1

2 What is HMDA?? The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board s Regulation C. The rule-writing authority was transferred to the Consumer Financial Protection Bureau (CFPB) in Regulation C requires lending institutions to report borrowers public loan data including: loan disposition, income, census tract, ethnicity, race and sex. The information is gathered from the 1003 and the HMDA data screen

3 Government Monitoring Information Ethnicity, race and sex must be completed. If the borrower isn t willing to give the information, the LO must make their best guess on ethnicity and race based on last name.

4 HMDA screens The loan s disposition will determine what information must be entered. Purchase loans must always reflect whether a pre-approval was requested while that is NA for Refinance loans All loans are not HOEPA loans For any loan that isn t closed, the rate spread must be blank The Geocode information must be entered for every file.

5 HMDA login information To input the login and password for the HMDA edit check, follow the steps below Go into any loan Click on Services Choose HMDA Management Choose Wolters Kluwer Financial Services HMDA Wiz as provider and click submit Scroll down and click on Login Settings Login: RESHOMEFUNDING Password: You need to enter this information whenever you are using a different computer (logging in from home for the first time).

6 Withdrawn loans Withdrawn loans are loans that were not underwritten and were withdrawn by the borrower. Type of Purchaser must be Loan was not originated or not sold Rate spread should be blank or NA No denial reasons are to be completed Click on the Geocode button to have the property information completed Click on Edit Check. If you get a congratulations message, the information is correct. Any V errors must be corrected

7 Approved but not accepted Approved but not accepted are loans that were approved by underwriting but the borrower couldn t meet the conditions Type of Purchaser must be Loan was not originated or not sold Rate spread should be blank or NA No denial reasons are to be completed Click on the Geocode button to have the property information completed Click on Edit Check. If you get a congratulations message, the information is correct. Any V errors must be corrected

8 Denied Denied loans require more information and the HMDA screen and statement of denial should be completed by underwriting. Type of Purchaser must be Loan was not originated or not sold Rate spread should be blank or NA Denial reasons are to be selected Click on the Geocode button to have the property information completed Click on Edit Check. If you get a congratulations message, the information is correct. Any V errors must be corrected

9 Geocode errors If the system can t find the geocode information, go to the following web site: Enter the subject s address If the address cant be located (new construction, rural etc), click on the Get Map of Zip Code Area and it will give you the MSA, State code, County Code and census tract

10 Completing the Statement of Denial Click on forms Select Statement of Denial Complete the Date Denied, Denied By and Mailed on Fields. The Dates should match

11 Completing Statement of Denial 1. Click on the drop down and select Present Address and then hit copy 2. Repeat for all borrowers (even borrower s on separate 1003 s)

12 Completing Statement of Denial 3. Complete the description of account, transaction or request credit a. Should be Purchase mortgage Application, refinance mortgage application, etc 4. Complete the Description of Action Taken a. Application Denied, Withdrawn by borrower, Approved but not accepted by borrower.

13 Completing Statement of Denial 5. Select the boxes that best describe the situation. a. If withdrawn or Approved but not accepted by borrower, use the free-form conditions at the bottom

14 Completing Statement of Denial 6. If the denial is due to credit or DTI issues, you must check the box above and choose the credit reporting agency we used to run the credit report. If the denial is due to some other reason (borrower is ineligible due to CAIVR hit), use the Additional Statement box above to describe the situation.

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