There are a number of good things that will cut down on interpretative issues. The volume of new reporting required, however, will take up the time gained and then some.

If this goes through as proposed, it will be time to get the process nailed down to eliminate manual work and sloppy errors.

Yay for axing the unsecured HI's, that drops about 25 loans off my LAR, but adding in HELOCs will give me at least another 3-400. Fair trade off. And the one-page reporting form the lenders can barely complete now will become 3 pages?

At what point do we just scan and send in the whole loan file on every mortgage we do?

ETA: Trade association newsletter in my inbox with subject line "HMDA rule changes could increase reporting burden" made me laugh heartilly. "Could".

Definitely worth commenting with some statistics on the effect. The thinking seems to be that taking out uncertainty will make it easier. The collection of the data is not simple in many banks and definitely will add a great deal of work.

Perfectly stated, Kathleen. I know for a fact our numbers will go UP by reporting every loan secured by a dwelling.

I think the volume would go up by extraordinary numbers.

They defined some types of purchasers! Yay!

5. Type of purchaser—mortgage bank. For purposes of § 1003.4(a)(11), a mortgage bank, often referred to as a mortgage company, means an institution that purchases covered loans
and typically originates such loans. A mortgage bank might be an affiliate or a subsidiary of a bank holding company or thrift holding company, or it might be an independent mortgage
company. In either case, a financial institution reports the purchasing entity type as a mortgage bank, unless the mortgage bank is an affiliate of the seller institution, in which case the seller institution should report the loan as purchased by an affiliate institution.

And they used my explanation of modular vs manufactured homes that I gave at last year's Triage. I feel so special (not that they got it from me, but that I was thinking properly!)

Is the agricultural exemption reference to RESPA's 25 acre exemption also going away?

From what I see, it looks like the exemption for purchase of land primary used for agriculture that contains a dwelling remains for HMDA.

The RESPA exemption for loans secured by > 25 acres will go away.

Thanks...i wasn't seeing any reference to it either, and in retrospect, with it going away from RESPA (as you say), it makes sense.

I searched on agricultural and read all references. In the last part, the actual proposed reg, it is in the list of exemptions.

The 25 acre exemption is still there? I'm looking at the proposed rule now, but haven't gotten to that part.

The 25 acre exemption for RESPA is going away; however, the proposed rules for HMDA still include an exemption for “A loan used primarily for agricultural purposes.”

Page 462 in the Reg (proposed) and page 522 of proposed commentary.

Commentary:

Paragraph 3(c)(9).

1. Farm loan. A financial institution does not report a loan to purchase property used primarily for agricultural purposes, even if the property includes a dwelling. A financial institution may use any reasonable standard to determine the primary use of the property, such as by reference to the exemption from Regulation X, 12 CFR 1024.5(b)(1), for a loan on property of 25 acres or more. An institution may select the standard to apply on a case-by-case basis.

Aha.....thanks Kathleen. Since the 25 acre exemption is going away for RESPA (next year, right?), i wonder if they will amend that part of the commentary to HMDA then also?

This is what they are proposing. Why do you think they would do a separate amendment for that one clause?

I don't see that the two have to be linked.

It would seem odd for me to the reference to RESPA's 25 acre exemption to remain after that part of RESPA is removed.

I think that is just an editing mistake to be cleaned up when pointed out....different teams on different regs. Assuming the intent is to leave the exemption, they can substitute another example, which is all it is.

I think i see what you're saying.....so that possibly in the future, that section (of HMDA) would still reference a 25 acre exemption, just without any specific reference to RESPA?

I am surprised at the number of new proposed fields - 37. All along I thought it would be about 12-14 new ones.

We are considered a larger institute so we are very concerned about changing the annual submission to quarterly reporting. Within 60 calendar days of the end of end of each calendar quarter, we would submit a LAR - yikees!

Yes, assuming they mean to leave the exemption, which is how it appears, they would just need a different example. Those loans are not exempt from HMDA because of RESPA. They are exempt because the primary purpose is to purchase farm land.

I posted this in the HMDA forum as well. These are the proposed fields. There is a lot of explanatory data that is key to when and what to report.

§ 1003.4 Compilation of reportable data.
(1) A universal loan identifier
(2) Insured Under National Housing Act
(3) Loan Type
(4) Preapproval
(5) Construction Method
(6) Principal Residence
(7) Amount
(8) There is no 8
(9) Location including address and geocoding
(10) Ethnicity Rate Sex and Age and Gross Annual Income
(11) Purchaser Type
(12) Rate Spread
(13) HOEPA
(14) Lien Priority
(15) Credit Score
(16) Denial Reasons
(17) Points and Fees
(18) Itemized Amounts Paid At or Before Closing
(19) Points to Reduce Rate
(20) Interest Rate if no points
(21) Interest Rate
(22) Prepayment Penalty Term in Months
(23) Debt to Income Ratio
(24) Loan to Value
(25) Term in Months to Maturity
(26) Months to First Interest Rate Change
(27) Negative Terms (Balloon, Interest Only, Negative Amortization)
(28) Property Value
(29) Manufactured Home – Real or Personal Property
(30) Manufactured Home – Land Owned or Leased
(31) Number of Dwelling Units
(32) Number of Affordable Housing Units if Multifamily
(33) Channel
(34) MLO NMLSR ID
(35) AUS System Name
(36) Reverse Mortgage Identifier
(37) Open End Line of Credit/HELOC identifier
(38) ATR and QM Identifier
(39) Amount of draw at account opening for HELOC and open end Reverse Mortgage

I saw that the ICBA is proposing an exemption for community banks that close less than 100 loans each year. That would be some relief for us little guys.

We are a community bank, but our LAR is usually 300 entries. No relief for us...