TABLE OF CONTENTS... 1 CHAPTER 1 INTRODUCTION... 3 1.1 GOALS AND OBJECTIVES... 3 1.2 REQUIRED REVIEW... 3 1.3 APPLICABILITY... 3 CHAPTER 2 ACCOUNTABILITY AND MONITORING... 4 2.1 INTERNAL CONTROLS... 4 2.2 BOARD/SENIOR MANAGEMENT OVERSIGHT... 5 2.3 HMDA COMPLIANCE OFFICER DUTIES... 6 CHAPTER 3 STAFF AND TRAINING... 7 3.1 ONGOING TRAINING... 7 3.2 NEW HIRE TRAINING... 8 CHAPTER 4 HOME MORTGAGE DISCLOSURE ACT AND REGULATION C... 9 4.1 DEFINITIONS... 10 4.2 EXEMPTIONS... 12 4.2.1 Asset Size Exemption... 12 4.2.2 Special Exemption... 12 4.2.3 Partial Exemption... 13 4.3 OVERSIGHT, EXAMINATION, AND PENALTIES... 14 4.4 RELATION TO FAIR LENDING... 15 4.5 NECESSITY TO REASSESS... 16 CHAPTER 5 HMDA LIFECYCLE/PROCESS... 17 5.1 COVERAGE ASSESSMENT... 17 5.1.1 Institutional Coverage... 17 5.1.2 Transactional Coverage... 19 5.1.3 Transactions Involving Multiple Entities... 22 5.1.4 Mergers and Acquisitions... 22 5.2 DATA COLLECTION... 22 5.2.1 Application Type... 23 5.2.2 Employee Loans... 24 5.2.3 Rate Spread... 24 5.2.4 Geocoding... 24 5.2.5 Quarterly Updates... 25 any party outside of. 1
5.3 DATA QUALITY CONTROL... 25 5.4 PREPARING FOR SUBMISSION... 26 5.5 SUBMISSION OF THE LAR... 27 5.6 POST SUBMISSION, RESUBMISSION, AND DISCLOSURE REQUIREMENTS... 27 5.6.1 FFIEC Statement and Notice of Availability... 27 5.6.2 Modified LAR... 28 5.6.3 Resubmission Guidelines... 28 5.6.4 Retention... 29 CHAPTER 6 APPENDIX... 30 6.1 SAMPLE SIZE, THRESHOLDS, AND RESUBMISSION REQUIREMENTS... 30 6.2 URLA REVISION DEMOGRAPHIC INFORMATION... 30 6.3 LOAN VOLUME THRESHOLDS... 32 6.4 IMPLEMENTATION TASKS... 33 any party outside of. 2
Introduction Goals and Objectives Chapter 1 Introduction is committed to the highest standards of federal consumer compliance and requires all management, employees, and third party vendors to follow these policies and adhere to these standards. 1.1 Goals and Objectives The standards set out in this policy represent minimum requirements based on applicable legal and regulatory guidance and apply throughout s operations. These requirements are intended to prevent, its employees, and third party vendors from violating federal regulations related to mortgage banking and consumer compliance with respect to fair housing and fair lending laws, regulations, and practices. 1.2 Required Review requires this policy be reviewed no less than annually. The review will include the compliance of this policy with current law, regulation or directive, the procedural implementation of this policy within the then current scope of [ Client] s business lines and operations, internal or external audit results received during the previous year, and then current industry trends or regulatory guidance. 1.3 Applicability The purpose of this policy is to implement consumer protection mechanisms as required by the United States statutes and related federal regulations administered by the Consumer Financial Protection Bureau (CFPB) and other prudential regulators as identified by the CFPB including the Board of Governors of the Federal Reserve System (FRS), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC). Wherever state or local regulations overlap and are stricter than the requirements set out in this policy, the more conservative approach will be applied. If any applicable laws or prudential regulator requirements conflict with this policy, must consult with the appropriate legal counsel to resolve the conflict and to set forth [ Client] s policies and procedures for compliance. any party outside of. 3
Home Mortgage Disclosure Act and Regulation C New Hire Training Chapter 4 Home Mortgage Disclosure Act and Regulation C Regulation C implements the Home Mortgage Disclosure Act, which is intended to provide the public with loan data that can be used to help determine whether financial institutions are serving the housing needs of their communities; to assist public officials in distributing public sector investment to attract private investment to areas where it is needed; and to assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes. Neither the act nor the regulation is intended to encourage unsound lending practices or require the allocation of credit by. In the years since HMDA was originally enacted, it has shifted from being a statute aimed at monitoring and preventing overt discrimination (such as redlining) to one widely used by the regulators as a fair lending assessment tool. HMDA data is typically submitted annually to the appropriate federal regulator using a Loan Application Register (LAR) format, and institutions like must make their LAR data available to the public upon request via the CFPB website for three years. Quarterly submission may be required beginning in 2020. Regulation C includes detailed, specific requirements on the collection, recording, reporting, record retention, and disclosure of HMDA data by institutions like [ Client]. Violations of HMDA can result in substantial compliance, reputational and financial risk, as they subject to potential administrative sanctions, including the correction and resubmission of the data and/or imposition of civil money penalties. In cases involving a pattern or practice of discouraging or denying applications in violation of ECOA, the CFPB is required to report the matter to the U.S. Department of Justice for further action. Each HMDA reporting entity should have a rigorous, documented data collection process and a data quality control program that can withstand scrutiny by 's prudential regulator and the CFPB. any party outside of. 9
HMDA Lifecycle/Process Coverage Assessment Chapter 5 HMDA Lifecycle/Process The HMDA process can be summarized in six steps: 1. Coverage Assessment 2. Data Collection 3. Data Quality Control 4. Preparing for Submission 5. Submission of the LAR 6. Post Submission, Resubmission, and Disclosures 2019. Each step is covered separately in this chapter. 5.1 Coverage Assessment In an attempt to lessen the regulatory burden for smaller organizations, regulators developed institutional and transactional coverage tests. These tests assist in determining whether an organization is covered by HMDA and therefore, required to comply with Regulation C. To be subject to HMDA, must meet the requirements specified in both coverage tests. 5.1.1 Institutional Coverage must use the following tests to determine whether it is subject to HMDA reporting requirements. Tests differentiate between banks, savings associations, credit unions, and other for profit mortgage lending institutions. The following chart details requirements for depository or non depository lenders as of January 1, 2018, effective through December 31, any party outside of. 17