Unsecured Home Improvement Loans & HMDA

<a href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=2&slot=1" target="_top"><img src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=2&slot=1&keyword=NULL" border="0"></a>


Site Map Our Sponsors Home

Compliance Gurus
Lending Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus

Print Friendly!

Email This Article!

Click Here!

Unsecured Home Improvement Loans & HMDA
Answer by David Dickinson, BOL Guru
BIO AND CONTACT INFO

Question: If a loan is carried on a credit union's books coded as a signature loan (unsecured), while the purpose listed on the loan application is for home improvements; Would this signature loan have to be reported under the Home Mortgage Disclosure Act?

Answer: No. Only if the stated purpose was home improvement AND the bank books it that way it would be reportable. 12 CFR Supplement I to Part 203--Staff Commentary [Effective until December 31, 2003]
2(f) Home-improvement loan.
1. Definition. A home-improvement loan is a loan that is made for the purpose of home improvement and that is classified by the institution as a home-improvement loan. (Appendix A of this part, Paragraphs IV. and V.A.5. Code 2.)

As a side note, watch that you do not collect monitoring information when the loan is not subject to data collection under Regs. B and C.

First published on BankersOnline.com 3/17/03

Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking

BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us

BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.

<A href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=80&slot=1" target="_top"> <IMG src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=80&slot=1&keyword=NULL" border="0" width="125" height="125" alt="Click Here!"> </A>

<A href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=31&slot=1" target="_blank"> <IMG src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=31&slot=1&keyword=NULL" border="0" width="125" height="125" alt="Click Here!"> </A>

<A href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=4&slot=1" target="_top"> <IMG src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=4&slot=1&keyword=NULL" border="0" width="125" height="125" alt="Click Here!"> </A>

<A href="http://adserve.bankersonline.com/cgi-bin/advertpro/blink.fpl?region=81&slot=1" target="_new"> <IMG src="http://adserve.bankersonline.com/cgi-bin/advertpro/bimg.fpl?region=81&slot=1&keyword=NULL" border="0" width="125" height="125" alt="Click Here!"> </A>