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#546605 - 05/11/06 06:49 PM HMDA Audit
cam450 Offline
Junior Member
Joined: Mar 2006
Posts: 34
Does anyone have any HMDA audit procedures they would mind sharing with me or maybe someone can tell me where to find some? We are a community bank with total assets of about $350 million. Thanks.

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Audit
#546606 - 05/12/06 12:32 PM Re: HMDA Audit
Reed Offline
Diamond Poster
Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Are you looking for a data accuracy audit or do you want to use the data to look for fair lending issues.

I don't have anything in particular, but if you let me know what you are looking for, I can give you some ideas.

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#546607 - 05/12/06 02:36 PM Re: HMDA Audit
cam450 Offline
Junior Member
Joined: Mar 2006
Posts: 34
Data accuracy. Thanks for the help.

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#546608 - 05/12/06 03:11 PM Re: HMDA Audit
Reed Offline
Diamond Poster
Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Ok, I'll start a list and maybe others can add on. FYI, specific HMDA questions are answered quicker in the lending forum.

First, you need HMDA Getting it Right if you don't already have it. You might want to start by just reading through that.

This is where you can validate rate spreads and property location information. (click on geocoding/mapping and rate spread)

Make sure that the Government Monitoring Information disclosure was given and that what the customer chose is what made it onto the LAR (they can choose to only give some information, or more than one race)

The most errors that I come across have to do with the purpose of the loan. Make sure for refinances that none of the loan proceeds are for home improvement (or to purchase a dwelling) and that the loan actually paid off a dwelling secured loan.

Ok, there is a start

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#546609 - 05/12/06 05:17 PM Re: HMDA Audit
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
I use an Excel Pivot Table to compare information. It gives you the ability to compare any single HMDA line item against another. (Ex: Ethnicity is marked 5/no co-applicant but the Sex is marked 1/male.) The table will even tell you which specific loan # this error occurs on.

My FRB examiner taught me how to run these. It is the method he uses to proof my LAR when I submit it to him. It is my understanding that at least the Chicago FRB uses Pivot tables.

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