Ha....that's the $10,000 question, the answer for which depends upon who you ask. Reg B requires that you gather GMI for a loan that is primarily for the purchase or refinance of a dwelling occupied or to be occupied by the applicant as a principal residence. However, we do not report HELOCs and we do not gather GMI. We were formally cited for gathering GMI on construction loans (for principal residences)because these are not reportable under HMDA....though the loan technically IS for the purchase of a dwelling occupied or to be occupied as a principal residence under Reg B. So we quit gathering for ANY loan for which there is optional reporting (and we have opted out) or for any other loan that is exempted from HMDA reporting (such as construction or bridge loans). Next exam, we'll probably be cited for that. We had been gathering GMI on construction loans since the beginning of time....never a mumbling word from an examiner....then all of a sudden, a formal citation.
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The more you sweat in training, the less you bleed in battle.......