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#1309034 - 12/18/09 02:27 PM HMDA Help!!
Anonymous
Unregistered

We recently found out our correspondent bank is reporting loans we sell to them as purchased loans. It had been our understanding they were reporting them as originated loans so we were not reporting them. This has been going on for several years. I know going forward we will be reporting them as originated and sold during the year. My question is what do we do about past years. Do we need to go back and refile? We've been examined several times over the past years and never had a HMDA issue in regards to what we were reporting. Help!!

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#1309320 - 12/18/09 05:06 PM Re: HMDA Help!! Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,239
Galveston, TX
You need to report the loan on your HMDA LAR according to the rules. If they are reporting them wrong, then that is there problem. Who is making the credit decisions?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1309605 - 12/18/09 08:58 PM Re: HMDA Help!! rlcarey
Anonymous
Unregistered

We run DU on the applications we receive and submit all of the information to our correspondent for review. It had been our understanding they were underwriting the loans, but now they have told us they are reviewing the documentation to determine whether or not they will purchase the loan. Generally, if they were not willing to purchase the loan we would deny the loan.

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#1309687 - 12/18/09 09:53 PM Re: HMDA Help!! Anonymous
RolTyde Offline
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Joined: Nov 2008
Posts: 78
Anywhere but here
Do you fund the loan with your money and then they buy it? We are a correspondent lender as well and don't report our closed loans since our investors do. We fund our own loans but the investors make the approval prior to closing. We only report withdrawn loans.

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#1309948 - 12/21/09 02:17 PM Re: HMDA Help!! RolTyde
Anonymous
Unregistered

We fund with our money. We had been under the assumption our investors were reporting the closed loans as originated, but just found out they are reporting them as purchased. We've been told the approval they are making is whether or not to purchase the loan not whether or not we should approve the loan.

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#1309965 - 12/21/09 02:33 PM Re: HMDA Help!! Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,239
Galveston, TX
You and your investors need to study page D-1 in the HMDA:Getting it Right guide. It doesn't really matter in whose name the loan closes or who originally funds the loan. It all comes down to the credit decision.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1310432 - 12/21/09 07:10 PM Re: HMDA Help!! rlcarey
Anonymous
Unregistered

That's where our problem comes from. Our investor says they are not making a credit decision, but to me they are because they're reviewing the loan docs prior to closing and saying "yes" they will buy it or "no" they will not. I understand that whoever makes the credit decision reports the loan. I'm just not understanding how they can say they are not making a credit decision.

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#1310774 - 12/21/09 09:31 PM Re: HMDA Help!! Anonymous
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,762
Bloomington, IN

If the investor is reviewing the documents prior to closing and giving a yay or nay on whether they will purchase the loan then they are making a loan decision. I agree they should be reporting the loan as an origination.
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The opinions expressed are mine and they are not to be taken as legal advice.

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