■ ■ ■ The amount of loan or loan applied for (§1003.4(a)( 7)):
This includes the key change to report the exact amount and
no longer round to the nearest $1,000. And a key carry-over
for counteroffers not accepted, FIs must report the amount
originally requested, and not the amount of the counteroffer.
Systems need to be able to capture and retain the originally
requested amount, which would be mapped to the HMDA
reporting platform if the action code is “denied” (a counteroffer not accepted should be reported as such, and a Notice of
Adverse Action should be provided in all such cases), per the
definition of “Adverse Action” in Regulation B.
■ ■ ■ Action taken and Action Taken Date (§1003.4(a)( 8)): This requires FIs to report rescinded loans as “approved-not-accepted,”
and applicant non-acceptance of a loan offer due to underwriting or creditworthiness conditions should be deemed “denied.”
An institution that provides a Notice of Adverse Action on the
basis of incompleteness, and a Notice of Incompleteness, may
report these as either Closed for Incompleteness or Denied,
but they must be consistent.
■ ■ ■ Property address (§1003.4(a)( 9)): ( 1) Report postal address
but no longer use MSA; ( 2) report only one address of multiple
properties securing a loan; and, ( 3) do not use mailing addresses.
■ ■ ■ Borrower information (§1003.4(a)( 10)): Special rules exist for:
• Reporting aggregated versus disaggregated date where institution completes information by visual observation and/
• Limits on the number of designations;
• Report verified gross income if relied on or collected when not
relied on. (Fair lending consideration: Is each LOB grossing
up non-taxed income?);
• Oral and written notification requirements;
• Optional reporting of this information on purchased loans
(there is no option if underwritten prior to closing but purchased after closing, since these are to be reported as originations, not purchased loans); and,
• Do not report guarantors’ ethnicity, race or sex (see Appendix
B for the highly-detailed requirements).
■ ■ ■ Type of entity purchasing loan (§1003.4(a)( 11)): See instructions on optional reporting instructions when doing quarterly
■ ■ ■ Rate spread (§1003.4(a)( 12)): Report rate spread for all loans,
no longer just for where the spread exceeds certain thresholds.
■ ■ ■ Lien status (§1003.4(a)(14)): Institutions must now report
lien status on purchased loans in addition to originated loans.
■ ■ ■ Credit score (§1003.4(a)( 15)): Enter scores relied on. Enter
“not applicable” on closed for incompleteness or withdrawn
applications if prior to a decision being made. If a credit
decision was made, the Action Taken code should not be
Incomplete or Withdrawn. Include codes for name and version of credit scoring model used. Purchased loans excluded
■ ■ ■ Denial reasons (§1003.4(a)( 16)): Reporting denial reasons
is now mandatory;
■ ■ ■ Total loan costs (§1003.4(a)( 17)): See Final Rules and interpretations for costs to be excluded. This states “for any covered loan that is subject to the (Regulation Z) Ability to Pay
section of the Bureau’s 2013 ATR Final Rule and for which a
Closing Disclosure is required under…TILA/ RESPA… (i.e.,
open-end lines, all commercial loans, and purchased covered
■ ■ ■ Term in months of prepayment penalty (§1003.4(a)( 22)):
Must include applications not originated. Business/commercial
loans and multifamily loans are excluded.
■ ■ ■ Monthly debt-to-income ratio (§1003.4(a)( 23)): Purchased
covered loans are excluded as long as the FI does not re-underwrite the loans (report re-underwritten purchased loans
■ ■ ■ Combined loan-to-value ratio (§1003.4(a)( 24)): Include purchased covered loans as long as your FI does not re-underwrite
the loans and calculate the CLTV.
■ ■ ■ Property value OR Purchase price (§1003.4(a)( 28)): “
Whichever the financial institution relies upon.” (Each FI LOB decision center should be consistent in its approach.) Report “Not
applicable” when no credit decision was made.
■ ■ ■ Manufactured home (MH) secured property type (§1003.4(a)
( 29)): Report if the MH is secured by land or not land, “
instead of whether the MH is legally classified as real or personal
■ ■ ■ Total units (§1003.4(a)( 31)): Report the total number of units
for condominium and cooperative properties.
■ ■ ■ Mortgage loan originator (§1003.4(a)( 34)): NMLS ID requirement applies to applications, originations, and purchased loans.
■ ■ ■ Automated underwriting system (AUS) (§1003.4(a)( 35)):
Purchased loans do not require disclosure of the name and
result of the AUS.
These considerations and concerns
are extremely valid, thus it is imperative
that institutions make strategic decisions
as soon as possible.