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#150009 - 01/14/04 08:08 PM HMDA Negative Income
Suzie Offline
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Suzie
Joined: Apr 2002
Posts: 662
Far North
We have a couple of loan applications & the income used for the credit decision was in the negative. What do you enter on the LAR? We get an error message when using a negative number on the LAR. NA does not decribe the situation as you did take income into considertion. Is this a 9999?
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Lending Compliance
#150010 - 01/14/04 08:14 PM Re: HMDA Negative Income
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If the income was negative, did income really play a factor (considered) in the loan decision? I have only had this situation a couple of times and reported the income as NA.

When the credit decision was made, the income was discounted (not used). Splitting hairs maybe, but I think it would work.
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#150011 - 01/14/04 08:37 PM Re: HMDA Negative Income
Suzie Offline
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Suzie
Joined: Apr 2002
Posts: 662
Far North
The negative income was a primary factor in our final decision. I have contacted the HMDA Help Line & will post the response given.
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#150012 - 01/14/04 08:42 PM Re: HMDA Negative Income
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Quote:

The negative income was a primary factor in our final decision. I have contacted the HMDA Help Line & will post the response given.




If this is a decline, I would enter $1.
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#150013 - 01/16/04 02:20 AM Re: HMDA Negative Income
HRH Dawnie Offline
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HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
I'd use $13M as income
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#150014 - 01/16/04 07:41 PM Re: HMDA Negative Income
Patsy Cline Offline
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Patsy Cline
Joined: Sep 2002
Posts: 1,117
On the road...
Quote:

The negative income was a primary factor in our final decision. I have contacted the HMDA Help Line & will post the response given.




I too had this same situation a couple of years ago. The HMDA helpline replied the input should be "NA".
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#150015 - 01/16/04 08:09 PM Re: HMDA Negative Income
HRH Dawnie Offline
Power Poster
HRH Dawnie
Joined: Aug 2002
Posts: 7,353
Anchorage Alaska
Not if there really was income and the lender just didn't fill out the paperwork correctly Suzie's out today so she can't respond and agree with this. (I think she'd agree, or she'd bap me with a book like she normally does)
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Dawn Coursey VP/CRA Queen

CRA Rating is in...Oh who cares...I'm home with the baby.

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