2. SECUREN 2017 FALL CONFERENCE
Shannon Price
Kudulis, Reisinger & Price, LLC

3. HMDA/REGULATION C Agenda Institutional coverage Transactional coverage
Reportable data
Filing
HMDA suggestions

4. INSTITUTIONAL COVERAGE
Asset threshold as of 12/31/2017 (currently $44 million)
Has office in a Metropolitan Statistical Area (MSA)
Made at least 1 purchase money 1st mortgage loan or a refi of a 1st mortgage loan secured by a 1-4 family dwelling in previous year
Federally insured or regulated
Made at least 25 closed-end mortgage loans in 2016 & 2017
Made at least 500 HELOC loans in 2016 & 2017

5. TRANSACTIONAL COVERAGE
All Dwelling-secured loans:
Closed-end mortgages
HELOC’s
Reverse Mortgages
A “dwelling” is a residential structure, whether or not attached to real property

6. What is a dwelling? Single-family structure Principal residence
Second home
Vacation home
Investment property

7. what is a dwelling? Multi-family structures Apartment building
Mobile home park
Condo building

8. WHAT IS NOT A DWELLING? Rv/camper/boat/travel trailer Houseboats
Mobile homes constructed before 6/15/1976
Hotels
RV parks
Hospitals

9. EXCLUDED TRANSACTIONS
Loans secured by lien on unimproved land
Temporary financing (e.g. construction loans)
Loans less than $500
Loans for agricultural purposes
Loans for business/commercial purposes UNLESS loan is for home purchase, home improvement, or refinancing

10. Your business is our business
Kudulis, Reisinger, and Price, LLC

11. DATA POINTS Total of 48 data points
9 from the current rule are unchanged
14 modified data points from the current rule
25 new data points

12. NEW DATA POINTS Borrower and Underwriting Information Age
Credit score and scoring model
Debt-to-Income Ratio
Loan-to-Value Ratio
Application Channel (whether application submitted directly to you and initially payable to you)
Automated Underwriting System – name and result

13. NEW DATA POINTS Property Information Property value Property address
Total Units
Mobile Home Secured Property Type (mobile home + land vs. mobile home only)
Mobile Home Land Property Interest (does the borrower own the land on which the mobile home is located)
Multi-Family Affordable Units (only applies to multifamily dwellings)

14. NEW DATA POINTS Loan Product Features Total Loan Costs
Origination Charges
Discount Points
Lender Credits
Interest Rate
Prepayment Penalty Term
Loan Term (months)
Introductory Rate Period (months)
Non-Amortizing Features (balloon, interest only, negative amortization)
Reverse Mortgage
Open-End Line of Credit
Business or Commercial Purpose
NMLS ID of loan originator

15. MODIFIED/EXISTING DATA POINTS
Borrower and Underwriting Information
Ethnicity, Race & Sex (additional sub-populations)
Gross Annual Income
Application Date
Action Taken and Date Action Taken
Reason for Denial

16. MODIFIED/EXISTING DATA POINTS
Property Information
Property Location (state, county & census tract)
Construction Method (site-built or manufactured home)
Occupancy Type (principal, secondary, investment)
Lien Status

17. MODIFIED/EXISTING DATA POINTS
Loan Product Features
Loan Purpose (purchase, refi, cash-out refi, home improvement, other)
Loan Type (whether conventional or FHA, VA, or USDA)
Loan Amount (exact, not rounded to nearest $1,000)
Preapproval
Rate Spread above APOR
HOEPA Status
Type of Purchaser

18. MODIFIED/EXISTING DATA POINTS
Identifiers
Legal Entity Identifier (LEI) - # issued to the FI by a utility endorsed by the Global LEI Foundation or LEI Regulatory Oversight Committee
Universal Loan Identifier (ULI) - # for each loan or application that is unique.

19. FILING HMDA DATA
Data collected in 2018 and reported in 2019 will be filed with the CFPB
Submit data via web interface
Submit by March 1, 2019
File format verification tool
HMDA Platform Release Notes

20. DISCLOSURE STATEMENT
HOME MORTGAGE DISCLOSURE ACT STATEMENT The HMDA data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age, and income of applicants and borrowers; and information about loan approvals and denials. These data are available online at the Consumer Financial Protection Bureau’s website ( HMDA data for many other financial institutions are also available at this website.

21. Your business is our business
Kudulis, Reisinger, and Price, LLC

22. OTHER ISSUES
Pre-Qualifications vs. Pre-Approvals Pre-Qualification: request for a preliminary determination whether the applicant would likely qualify for credit or for a determination on the amount of credit for which the applicant will likely qualify. Pre-Approval: written commitment resulting from a comprehensive review of the creditworthiness of the applicant, including such verification of income, resources, and other matters as is typically done as part of a normal credit evaluation.

23. OTHER ISSUES
A financial institution reports the data for the calendar year during which the application was acted upon, even if the institution received the application in a previous calendar year.
Quarterly reporting is required for institutions that reported a combined total of 60,000 applications and covered loans in the preceding calendar year.

24. OTHER ISSUES
Only one FI reports each originated covered loan as an origination. If more than one FI was involved in the origination of a covered loan, the FI that made the credit decision approving the application before closing reports the loan as an origination.
In the case of a loan application that does not result in an origination, a FI reports the action it took on that application if it made a credit decision on the application or was reviewing the application when the application was withdrawn or closed for incompleteness.

25. EXAMPLES
FI “A” received an application and forwarded it to FI “B”, who reviewed the application and approved the loan. The loan closed in FI “A”’s name, then FI “B” purchased the loan from FI “A.”
FI “B” reports the loan as an origination & not a purchase.
FI “A” does not report the loan at all
FI “A” received an application and forwarded it to FI “B,” but FI “B” denied the application.
FI “A” does not report the application.
FI “B” reports the loan as a denial.

26. EXAMPLES
FI “A” received an application, approved it and closed the loan in its name. FI “B” did not review the application, but after closing it then purchased the loan from FI “A.”
FI “A” reports the loan as an origination.
FI “B” reports the loan as a purchase.
FI “A” reviewed an application and approved it, using underwriting criteria provided by a 3rd party. The 3rd party didn’t review the application or make the credit decision.
FI “B” reports the loan as a purchase if it purchases the loan and does not report at all if it chooses not to accept the loan.

27. REVISED LOAN APPLICATION

28. URLA COMING JULY 1, 2019

29. ADDITIONAL RESOURCES

30. Additional resources

31. Regulatory compliance
Retain records for 5 years from date account is closed
Regulatory compliance
When we know your strengths and weaknesses, and understand your risks and challenges, we can play a strong, supporting role in helping you solidify and secure operations and move your business forward.
Kudulis, Reisinger, and Price LLC

32. What should we discuss further?
Shannon Price

33. SUCCESSORS IN INTEREST
The Rule, effective April 19, 2018, requires servicers to maintain policies & procedures reasonably designed to ensure they can:
Promptly facilitate communication with successors in interest regarding property securing a mortgage loan when they receive notice of death of a borrower or any transfer of the property;
Promptly determine what documents are required to confirm the successor’s identity, and provide the person with a description of the documents required;
Promptly notify the successor, upon receipt of the documents, that they have confirmed their status as a successor or have determined that additional documents are required.

34. SUCCESSORS IN INTEREST
A successor in interest is someone who has acquired an ownership interest in one of the following situations:
On the death of a joint tenant
On the death of a relative
When the spouse or children of the borrower become an owner
Resulting from a divorce or legal separation
Through an inter-vivos trust in which the borrower is and remains a beneficiary and retains occupancy rights
A person does NOT have to assume liability for the loan in order to be confirmed as a successor.

35. SUCCESSORS IN INTEREST
The Servicer is NOT required to conduct a search for potential successors in interest if it has not received actual notice of their existence.
When a Servicer receives a written request from a person that:
Indicates they may be a successor in interest;
Includes the name of the borrower from whom the person received an ownership interest; and
Provides information that enables the servicer to identify the mortgage loan account
The Servicer must:
Within 5 days, provide a written acknowledgement of receipt
Within 30 days, provide a written description of the documents required to confirm the person’s identity and ownership interest

36. SUCCESSORS IN INTEREST
OPTIONAL NOTICE IN RESPONSE:
You have confirmed the successor’s identity & ownership interest in the property;
The successor is not legally liable for the debt (unless he/she assumes it), but the lender retains its security interest and can foreclose;
The successor may be entitled to receive notices & communications
To receive such notices, the succession must provide an executed acknowledgement form;
Whether or not the acknowledgement form is submitted, the successor is entitled to submit a notice of error, request for information or request for payoff.

37. SUCCESSORS IN INTEREST
TILA / REG. Z
Confirmed successors are considered consumers re:
Prompt payment processing
Periodic statements
Mortgage transfer disclosures
Interest rate adjustment notices
Escrow cancellation notices
RESPA / REG. X
Confirmed successors are considered consumers re:
Error and information requests
Early intervention and continuity of contact
Loss mitigation
Escrow and force-placed insurance provisions
Mortgage servicing transfers

38. DELINQUENCY
Servicers may not make the 1st notice or filing required under applicable law for any judicial or non-judicial foreclosure process unless:
The mortgage loan is more than 120 days delinquent;
The foreclosure is based on a borrower’s violation of a due on sale clause; or
The servicer is joining the foreclosure of a superior or subordinate lienholder.
Delinquency – begins on the date a periodic payment sufficient to cover principal, interest, and (if applicable) escrow becomes due and unpaid and continues until such time as no periodic payment is due and unpaid.

39. DELINQUENCY
“ROLLING” DELINQUENCIES Payments due on the 1st. Borrower fails to make January 1st payment. On January 31, Borrower is 30 days delinquent. On February 3rd, Borrower makes a periodic payment. On February 4th, Borrower is 3 days delinquent.

40. DELINQUENCY
Borrower fails to make payments due on January 1st, February 1st and March 1st. On April 1st, Borrower is 90 days delinquent. On April 29, Borrower makes a full periodic payment. On April 30, Borrower is 88 days delinquent.