1. HMDA 2018: What You Need to Know

2. FAQ: What The Heck Happened Last Year?
October 2015 – Final Rule setting up changes for 2017 – 2020
August 2017: Final Reg C rule
Temporary increase to Open-End Loan reporting
Updates reporting exclusions
Clarifies Multifamily and Automated Underwriting System definitions
September 2017: Final Reg B rule
Sets URLA removal date from Appendix B of Reg B January 1, 2022 – does not replace it
Allows Reg B GMI collectors to collect either aggregated or disaggregated information
Clarifies that non-HMDA Reg B reporters don’t have to modify their collection
Allows HMDA reporters and former HMDA reporters (within the past 5 years to collect GMI when not otherwise required

3. Effective Dates Definition of Financial Institution: January 1, 2017
Uniform Loan-Volume Threshold: January 1, 2018
Transactional Requirements: January 1, 2018
Data Points Requirements: January 1, 2018
Disclosure Statement: January 1, 2018
Collection of Applicant Information: January 1, 2018
CFPB Web-based Submission Tool: January 1, 2018
CFPB Check Digit Tool: January 1, 2018
Modified LAR: January 1, 2018
Elimination of Appendix A and Revised Procedures: January 1, 2019
Quarterly Reporting: January 1, 2020
Temporary Threshold Ends: January 1, 2020
URLA Removed from Reg B: January 1, 2022

4. FAQ: When do we need our poster/LEI/other requirements?
Lots of questions about whether posters need to be updated by January 1st or after March 1st and whether an LEI is needed by January 1
While it would make sense from a practical standpoint for the effective dates to revolve around the next HMDA submission year – they don’t.

5. 2018 HMDA Reporting Changes

6. 2018 Uniform Loan Threshold
Beginning on January 1, 2018, the uniform loan volume threshold test for all institutions will be effective.
In EACH of the last two years, the lender originated 25 covered closed-end mortgage loans OR at least 500 covered open-end lines of credit
It’s important to note that this is different than the original proposal which set the threshold at 25 closed-end loans and did not discuss open-end lines of credit.

7. 2018 Tests
Asset-size Threshold: On the preceding December 31, the bank had assets in excess of the asset-size threshold published in the Federal Register and Posted on the CFPB’s website
Location Test: On the previous December 31, the bank had a home or branch office located in an MSA or MD. The CFPB clarifies that an ATM or other free-standing electronic terminal would not fall under the definition of “branch” for the location test
Loan Activity Test: The bank originated one or more home purchase or refinance of a Home Purchase Loan secured by a first lien on a 1-to-4 family dwelling
Federally Related Test: The bank is either federally insured or federally regulated or originated a first-lien secured by a one-to-four family that was insured, guaranteed or supplemented by a federal agency or was intended for sale to FNMA or FHLMC
Loan Volume Threshold: In each of the past two years, the bank originated at least 25 Closed-End Mortgages or originated at least 500 Open-End Lines of Credit

8. FAQ: Wait…it’s 500 open-end loans?
August 2017: HMDA Final Rule
Temporarily increases threshold reporting on open-end loans from 100 to open end loans in each of the past two years
In 2020, the threshold will return to 100 open-end loans
For example, if you always do 250 open-end loan, on January 1, 2020, you will start reporting your open end loans since in each of the past two years (2018 and 2019) you originated more than 100 open-end loans. However, for your 2018 and 2019 LARs, you don’t need to report.

9. Loans Required to Be Reported
Covered loans are generally loans secured by a dwelling
No more unsecured home improvement loan reporting
Institutions that originated at least 500 covered open-end lines of credit in each of the last two years will be required to report on open-end lines of credit
Lenders who have originated more than 25 closed-end mortgages will be required to report on closed-end
The only reporters who will be required to report on both open and closed- end loans are those that originated more than 25 closed-end covered loans AND 500 open-end lines of credit

10. FAQ: Is it EITHER of the past two years or EACH of the past two years?
Excluded if in either of the past two years, the loan volume threshold wasn’t met
Included if in each of the past two years, the loan volume threshold was met
Plain English: You have to have met the loan volume threshold test for each type of loan for two consecutive years to have to report.

11. Loans Required to Be Reported
Business-Purpose loans but NOT Agricultural loans even if secured by a dwelling
Excluded Transactions:
- Loans that the lender originates or purchases in a fiduciary capacity, servicing right-only purchases and pool purchases
- Loans secured by raw land (unless the lender knows the proceeds of the loan will be used to build a dwelling within 2 years);
- Temporary financing
-loan under $500
-participating interest purchase
- (2017) New York CEMA – related transactions
-Ag loan
Temporary Financing - financing that is meant to be replaced by permanent financing. It is important to note that a loan merely having a short term does not make a loan temporary and therefore, exempt from HMDA

12. Loans Required to Be Reported
Covered transactions have to be secured by a dwelling but there’s no requirement that it be a primary residence or a one-to-four family dwelling
RVs, boats, campers or travel trailers are not considered dwellings. Nor are floating homes/houseboats or mobile home built prior to 1976
Structures that would otherwise be considered dwellings but, are used exclusively for commercial purposes, will not be considered dwellings
Dwellings that have both assisted-living services but also provide long-term housing are considered dwellings

13. Loans Required to Be Reported
Approved but unaccepted preapproval requests, which are currently optionally reported, will be required data
Approved but unaccepted requests, denied preapproval requests and approved requests that lead to originations will be reported on preapproval applications
A “preapproval program” is one where a written commitment is issued based on a comprehensive analysis of the applicant’s creditworthiness in the same manner as a regular purchase application. The written commitment can only be subject to limited conditions including: finding a suitable property; no material changes in the applicant’s financial situation and limited conditions that are tied to normal purchase applications (i.e., receipt of a title binder or clear termite inspection).

14. FAQ: When is a Preapproval Request a “HMDA Application”?
Related to a home purchase loan
Only for a 1-to-4 family
Only closed-end loans
Reviewed as indicated under the definition of preapproval program

15. Important Definitions
Closed-End Mortgage Loans: Loans that are extensions of credit, secured by a lien on a dwelling, and not an open-end line of credit
Open-End Line of Credit: An extension of credit secured by a lien on a dwelling and is an open-end credit plan for which the lender reasonably contemplates repeated transactions. The lender may impose a finance charge from time to time on an outstanding unpaid balance and the amount of credit that may be extended to the borrower during the term of the plan is generally made available to the extent that any outstanding amount is repaid

16. Important Definitions, Cont’d.
Extensions of Credit: Extensions of credit will generally be limited to new debt as the CFPB has clarified that modifications, renewals and extensions will not be considered “extensions of credit” unless they satisfy and replace the note
Refinancings: A closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower. Note that there is no longer a separate definition for coverage
(2017) Multi Family Dwelling: 5+ units in one location

17. FAQ: Is this a multifamily dwelling?
5+ separate dwellings that secure the loan which are not in the same location? Not a multifamily dwelling
5+ units in a multi-family dwelling but not secured by the entire multifamily structure? Not a multifamily dwelling
5+ unit building, the whole structure secures the loan? Multifamily dwelling
Manufacture home community with five or more manufactures homes? Multifamily dwelling

18. Data Points: General
New and modified data points can be broken down into four basic groups: 1) Information about applicants and the transaction; 2) Information about the property securing the loan; 3) Information about the features and term of the loan; and 4) Unique Identifiers
New and updated data points will be reported for loans taken after January 1,

19. Data Points: Information About the Applicant and the Transaction
Age:
- Age must be reported in whole years
- For multiple applicants, the lender reports the age of the primary applicant and the first co- applicant
- If the applicant is not a natural person, the lender would mark this field as “not applicable”
Credit Score:
- Reported when the lender relied on a credit score in making the credit decision
-It’s not necessary the credit score make or break the credit decision – if it’s relied on at all, it should be reported
- If the lender obtains more than one credit score, they will report one of the credit scores. If only one was relied on, the lender will report that score. If more than one was relied on, they will choose a score
- For multiple borrowers, the lender will report on the primary applicant and the first co-applicant

20. Data Points: Information About the Applicant and the Transaction
Credit Score
- Report as “not applicable” if:
-The loan is purchased
-The lender did not rely on a credit score
-The application was closed for incompleteness
-The application was withdrawn prior to a credit decision being made
-The applicant and co-applicant are not natural persons

21. Data Points: Information About the Applicant and the Transaction
Debt-to-Income Ratio
- Report an applicant’s debt-to-income ratio if it relied on the DTI when making the credit decision
-A lender will not have to report the DTI (and therefore, will report this data point as “not applicable”) if:
-It made a credit decision without considering DTI
-The application was closed for incompleteness
-The application was withdrawn before a credit decision was made
-The applicant and co-applicant are not natural persons
-The property is a multifamily dwelling
-The loan is a purchased loan

22. Data Points: Information About the Applicant and the Transaction
Combined Loan-to-Value
- Report the combined loan-to-value if the lender relied on such a ratio when making the credit decision
-Data point will be reported as “not applicable” if:
- The lender did not rely on a CLTV ratio when making the credit decision
-The application was closed for incompleteness
-The application was withdrawn prior to a credit decision being made
-The loan was purchased

23. Data Points: Information About the Applicant and the Transaction
Reasons for Denial (if loan is denied)
-Reportable reasons will be capped at four
-For loans that are not denied, the lender will report this data point as “not applicable”
-Reasons listed should track with the reasons given on an adverse action form pursuant to Regulation B
-Report reasons for denying preapproval requests
Application Channel
-Whether the application was submitted directly to the lender or it was received through a broker or correspondent
-If an application is withdrawn, denied or closed for incompleteness, the lender will report that this is not applicable if no such determination had been made at the time of the final action on the application
- Will not apply to purchased loans

24. Data Points: Information About the Applicant and the Transaction
Automated Underwriting System Results - If a lender uses an AUS, per the definition, they will be required to report the name of the system and the result generated by the system
Automated Underwriting System (AUS) is a tool:
-Developed by securitizer, Federal government insurer or Federal government guarantor
-That provides a result regarding an applicant’s credit risk and whether the loan is eligible to be originated, purchased, insured or guaranteed by that securitizer, Federal government insurer or Federal guarantor
-Who is a securitizer?: If a person has ever securitized, they are a securitizer- Examples in 2017 final rule
Not relevant to the reporting requirement that the lender intends to sell or hold the loan its portfolio
If multiple results are obtained, the lender will report the one closest to the time of the credit decision. If a lender receives multiple results at the same time, it will report up to five of those results
Financial institutions will not report on the AUS if they did not use one, if the applicant and co-applicant are not natural persons or for purchased loans

25. Data Points: Information About the Property
Construction method
- Site-built or a manufactured home
- Multi-family dwellings will be reported as site-built unless the multi- family property is a manufactured home community
Manufactured Loan Information
-Whether the dwelling and the land secures the loan or just the manufactured home
-Whether the applicant will own the land, indirectly own the land as a member of a resident-owned community, have a paid leasehold or have an unpaid leasehold

26. Data Points: Information About the Property
Lien Priority
- Purchased loans, as well as, originated properties
- Based on the “best available information”
The Number of Individual Dwelling Units in the Property
-Number based on the number of units securing the loan and not the number of occupied units
Property Value
-Reported based on whatever property value the lender relied on to make its credit decision
-If no property value was relied on, the data point will be reported as “not applicable”

27. Data Points: Information about the Features of the Loan
Loan Term
-report the number in whole months
-purchased loan, the lender will report based on the time from origination, not purchase
-open-end line of credit, a financial institution will report the months until the account termination and include both the draw and repayment periods
-reverse mortgage or open-end line of credit that does not have a definite term, the lender will report this data point as not applicable
Interest Rate
Introductory Rate Period: months between closing and the first date the interest rate can change. For an application that did not originate, the lender will report the proposed introductory rate period
Non-amortizing Features: balloon payments; interest-only payments; negative amortization; or contractual terms that would allow for payments other than fully amortizing payments

28. Data Points: Information about the Features of the Loan
Type of Loan
- purchase, refinance or home improvement
Cash-out refinancing
- A covered refinancing and the lender considers the product a cash-out refinancing because the borrower receives proceeds at closing or account opening
-If the lender does not distinguish between a cash-out refinancing and regular refinancing, they would report all refinancings as plain refinancings
Other
-Covered loan for a purpose other than a purchase, home improvement, refinancing or cash-out refinancing
-For example, covered refinancing for educational expenses

29. Data Points: Information about the Features of the Loan
Reporting Priority – CFPB HMDA Small Entity Compliance Guide, pg. 59

30. Loans Subject to Regulation Z
Total loan costs
Points and Fees
The information will be reported as it is disclosed on the Closing Disclosure on Line D
Revised Closing Disclosure is given, the lender will report based on the final revised Closing Disclosure
For loans that are not subject to Regulation Z Closing Disclosure requirements, the lender will report the total points and fees
Requirement will not extend to purchased loans

31. Loans Subject to Regulation Z: TRID Loans
Borrower-paid origination items
Total discount points
Lender credits
Only Applicable for loans subject to TRID
On all other loans, this will be reported as not applicable
The final Closing Disclosure information will be used to report this data point

32. Data Points: Unique Identifiers
Universal Loan Identifier
- ULI will end up being the financial institution’s LEI (Legal Entity Identifier), followed by up to 23 letters or numbers and ending with a two- character check digit
- number cannot contain any of the borrower’s identifying information
-ULI must be unique to the loan and cannot be reused for other loans at the financial institution
-ensure there is no duplication of ULIs among different branches
- lender purchases a loan, they will have to use the ULI that the previous financial institution applied to that loan
Property Address

33. FAQ: How on earth do I do the check-digit?
“The two-character check digit is used to validate the ULI. It is calculated using certain standards published by the International Organization for Standardization ( The Bureau will provide a check digit tool on its website before January 1, For more information on the two-character check digit, including the methodology for generating a check digit, see appendix C to the HMDA Rule. “
Is the check digit tool ready? Yes! tools/check-digit/

34. FAQ: Can we just figure it out?
“Generating A Check Digit
Step 1: Starting with the leftmost character in the string that consists of the combination of the Legal Entity Identifier (LEI) pursuant to § 1003.4(a)(1)(i)(A) and the additional characters identifying the covered loan or application pursuant to § 1003.4(a)(1)(i)(B), replace each alphabetic character with numbers in accordance with Table I below to obtain all numeric values in the string.” Appendix C 2015 Rule

35. FAQ: Check Digit

36. Data Points: Unique Identifiers
Loan Originator Identifier
-NMLS number for the mortgage loan originator who originated the loan if the MLO has such a number (regardless of whether or not an NMLS ID was needed for that particular transaction)
-If there is more than one MLO for the transaction, the lender reports the MLO who had primary responsibility as of the date of the action taken
Legal Entity Identifier
- Identifier issued to the lender through the Global LEI Foundation or LEI Regulatory Oversight Committee

37. FAQ: How do I get an LEI? Also, do I have to?
Pick a provider and follow their process: lei/how-to-get-an-lei-find-lei-issuing-organizations
Does it have to be an American company? no
I think we already have one. Where can I look into that?
The GLEIF has a search function:
FAQ: No requirement for non-HMDA reporters

38. Collection and Reporting of Information Regarding an Applicant’s Ethnicity, Race and Sex
Required to report how lender collected the information on ethnicity, race and sex
-Report whether a determination was based on visual observation or surname when the applicant opts out
Lender does not report on non-natural persons
If there are multiple applicants, the lender will report on the primary applicant and the first co-applicant
Provide aggregated and disaggregated ethnic and racial subcategories
Subcategories cannot be used when making a determination on visual observation or surname
Lender also must report partial information if that is all that is provided by the applicant
If electronic applications include any video components, the application, for the purposes of collecting GMI, must be treated as though the application were taken in person

39. Collection and Reporting of Information Regarding an Applicant’s Ethnicity, Race and Sex
If a meeting takes place after the application process is complete, for example at the loan closing, the lender is not required to update or provide new GMI based on visual observation
The collection form (or collection information on the application) must be updated to include the 2015 HMDA changes on applications received on or after January 1, The requirement is based on the collection of the applications and not when final action is taken
CFPB has a sample data collection form: fpb_hmda_ethnicity-and-race-collection_v2.pdf

40. FAQ: What on earth is going on with the URLA?
September 2016 – CFPB says you can collect disaggregated information beginning Jan 1, FNMA has already updated the URLA – expectation – you can use new URLA!
Transition rule for 2017 and 2018
August 2017 – sample data collection form
September 2018 – URLA won’t be replaced in Reg B until 2022.
GSEs: You can use URLA starting 7/2019. You have to use the new URLA in
Except for the GSEs, there’s no explicit prohibition against using the updated URLA but if you make FNMA/FHLMC loans you’d be using two different applications
Current Application + CFPB data collection form

41. Reg B Final Rule 12 cfr 1002.5 (a)(4)
(i) A creditor that is a financial institution under Regulation C, 12 CFR (g), may collect information regarding the ethnicity, race, and sex of an applicant for a closed-end mortgage loan that is an excluded transaction …[because of the closed-end threshold amount]…, if it submits HMDA data concerning such closed-end mortgage loans and applications or if it submitted HMDA data concerning closed-end mortgage loans for any of the preceding five calendar years;
If you do report closed-end mortgages or have in the last five years you can collect

42. (ii) A creditor that is a financial institution under Regulation C, 12 CFR (g), may collect information regarding the ethnicity, race, and sex of an applicant for an open-end line of credit that is an excluded transaction…[because of the open-end threshold amount]… if it submits HMDA data concerning such open-end lines of credit and applications or if it submitted HMDA data concerning open-end lines of credit for any of the preceding five calendar years;
If you do report or have reported in the last five years on open-end loans, you can collect the GMI

43. (iii) A creditor that submitted HMDA data for any of the preceding five calendar years but is not currently a financial institution under Regulation C, 12 CFR (g), may collect information regarding the ethnicity, race, and sex of an applicant for a loan that would otherwise be a covered loan under Regulation C, 12 CFR (e), if not excluded by… the threshold amounts for both open and closed-end loans.
If you were a HMDA reporter in the last five years but you aren’t today, you can collect GMI on open and closed loans

44. (iv) A creditor that exceeded an applicable loan volume threshold in the first year of the two-year threshold period provided in Regulation C, 12 CFR (g), (c)(11), or (c)(12), may, in the second year, collect information regarding the ethnicity, race, and sex of an applicant for a loan that would otherwise be a covered loan under Regulation C, 12 CFR (e), if the loan were not excluded by Regulation C, 12 CFR (c)(11) or (12);
You can collect if you met the threshold for open or closed end loans in the past year.

45. (v) A creditor that is a financial institution under Regulation C, 12 CFR (g), or that submitted HMDA data for any of the preceding five calendar years but is not currently a financial institution under Regulation C, 12 CFR (g), may collect information regarding the ethnicity, race, and sex of an applicant for a loan that would otherwise be a covered loan under Regulation C, 12 CFR (e), if the loan were not excluded by Regulation C, 12 CFR (c)(10).
(c)(10) excludes business purpose loans that are dwelling secured but not for a purpose of home improvement, home purchase or refinancing
So, collection on dwelling secured business purpose loans that aren’t HMDA covered because of the purpose

46. (vi) A creditor that is collecting information regarding the ethnicity, race, and sex of an applicant or first co-applicant may collect information regarding the ethnicity, race, and sex of a second or additional co-applicant for a covered loan under Regulation C, 12 CFR (e), or for a second or additional co- applicant for a loan described in paragraphs (a)(4)(i) through (v) of this section.
You can also collect on the co-applicants if you fall under one of these allowances.

47. Data Submission & Reporting
Recording: Reporters must record data about a covered loan or application on their LAR within 30 days after the end of the calendar quarter in which the financial institution takes final action of the application
Submission: The CFPB is developing a new online submission tool for reporting which will be launched in This will amend Appendix A and those amendments and procedures will be available starting in 2018 to support the transition. In 2019, Appendix A will be deleted in 2019 and replaced with CFPB instructions.
Quarterly Reporting: Beginning on May 20, 2020, lenders who report a total of 60,000 applications and originations in the preceding year will be required to report on a quarterly basis
-Purchased loans will not be included in this calculation
-Inaccuracies or omissions in the quarterly reporting will not be considered HMDA violations if the institution makes a good-faith effort to correct the information prior to the annual report submission

48. FAQ: Where is the CFPB’s Submission Tool?
Update! Beta test is ready – you can find that here:
Where is the geocoding tool?
The LAR formatting tool is ready
So are the filing instruction guides and loan scenarios aid

49. Data Submission & Reporting
Notice of where to find the disclosure statement and modified LAR on the CFPB’s website will be required
Disclosure requirement will apply to data collected after January 1, 2017 and reported from 2018, onward
Lender will also be required, upon request from a customer or member of the public, to provide a written notice regarding the availability of its modified LAR on the CFBP’s website
The notice must be made available for three years
The institution will also need to post in its home office and each branch located in an MSA or MD, a general notice about the availability of its HMDA data on the CFPB’s website

50. Action Plan
Identify a timeline for implementation of updated HMDA provisions and consider any additional data collection requirements that must be added pursuant to the final rule
Assess whether the institution will or will not be required to report based on the changes in reporting thresholds and when that evaluation will be done for each year
Assess whether products that were not previously reported will need to be reported
Identify affected departments and prepare a training program to update affected staff on the the timeline for all changes
Update Policies and Procedures in anticipation for effective dates of changes
Identify and work with platform providers and other affected third-party vendors in order to prepare for additional data points that will be required reporting
Read the CFPB Small Entity Compliance Guide and the Final Rule
Contact Compliance Alliance with any questions

51. Important Links
Final Rule: /home-mortgage-disclosure-regulation-c
2017 HMDA Rule: final-rule_home-mortgage-disclosure_regulation-c.pdf
Reg B Rule: compliance/rulemaking/final-rules/amendments-equal-credit-opportunity-act- regulation-b-ethnicity-and-race-information-collection/
CFPB HMDA Page: compliance/guidance/implementation-guidance/hmda-implementation/
-Page includes: Executive Summary; Timeline; Compliance Guide; Not Applicable reporting; Institution Coverage Charts for

52. Questions?
Thank you for your participation! We hope you found value in the presentation. If you have any additional questions, contact Compliance Alliance at or