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#153516 - 01/26/04 06:59 PM New HMDA Notice
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
I was reading David's "The Gurus Speak about HMDA & HOEPA" this morning and ran across a fact that I hadn't heard anything about before...the HMDA Disclosure Act Notice has changed! Am I the last one to see this? Why did they go and do that? Ugh! Now I am scrambling around to get all my signs down and reorder new ones. Our old signs were custom made and we paid a good penny for them, now I don't know whether to request the fancy ones or the "it's just going to change next year, so don't spend much money on them signs"

Good article anyway David! Thanks.

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Lending Compliance
#153517 - 01/26/04 08:06 PM Re: New HMDA Notice
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
OK, I'll bite. I read the article, but don't see what has changed. Can you please elaborate? Thanks

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#153518 - 01/26/04 08:32 PM Re: New HMDA Notice
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,951
Bloomington, IN
The new notice has the reference to Ethnicity in it.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#153519 - 01/26/04 08:47 PM Re: New HMDA Notice
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
This was our Old Notice:

"Our annaul Home Mortgage Disclosure Act statement is available for inspection. This statement shows the geographic distribution of our residential mortgage and home improvement loans. For information on how you may inspect the statement, inquire at this office."

The New Model language reads:

"The HMDA data about our residential mortgage lending are abailable fore review. The data show geographica distribution of loans and applications; ethnicity, race, sex, and income of applicants and borrowers; and information about loan approvals and denials. Inquire at this office regarding the locations where HMDA data may be inspected."

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#153520 - 01/26/04 08:54 PM Re: New HMDA Notice
Kahola Offline
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Kahola
Joined: May 2001
Posts: 712
Scottsdale, AZ. 85255
I thought that we didn't need to post the new HMDA Disclosure Statement Poster until next year, 2005, because ethnicity will not be on the 2003 HMDA Statement. The 2004 HMDA Statement will include ethnicity but wont' be available until 2005.

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#153521 - 01/26/04 09:02 PM Re: New HMDA Notice
starfish Offline
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starfish
Joined: Jun 2003
Posts: 416
Seattle
I contacted our primary regulator (FRB) and they advised that we update the lobby notice effective January 1, 2004. You may want to check with your regulator.

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#153522 - 01/27/04 03:10 AM Re: New HMDA Notice
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,542
On the Net
I answered some emails today on this same topic, citing two BOL threads on posting the new signage.

Technically the requirement exists now, to post the new text. Since it isn't truly applicable yet, I'd recommend a slight adjustment to the text that should satisfy both a critical customer as well as a regulator. (Though I don't really believe any regulators would balk at the use of older text yet.)

This is simple to produce yourself, although your regulator may have these available. The OSC to Reg. C at (5)(e) says an institution may use any text that meets the requirements of the regulation. Some of the federal financial regulatory agencies and HUD provide HMDA posters that an institution can use to inform the public of the availability of its HMDA data, or the institution may create its own posters. If an institution prints its own, the following language is suggested but is not required:

"Home Mortgage Disclosure Act Notice

The HMDA data about our residential mortgage lending are available for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, and income of applicants and borrowers; and information about loan approvals and denials. Inquire at this office regarding the locations where HMDA data may be inspected."

This was discussed on threads here , and here here.

I recommend adding the text to the end as well,

"To receive a copy of these data, send a written request to:

Your favorite bank's name
P.O. Box 1
Anytown US 12345
Attn: Best darn Compliance Officer this side of the river"

This is to identify where you may have the records if you do not have a complete report at all locations. Also, you could also adjust this to read, "...and information about loan approvals and denials for the year in which that data was gathered." Adding this will explain to someone who inquires this year and until mid-2005, why you do not have all this data. It was not collected for the year they are reviewing. And you would still conform with the law.

There is no size requirement for this disclosure so you can easily print, frame and post this yourself.
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My opinions are not necessarily my employers.
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#153523 - 01/27/04 05:04 PM Re: New HMDA Notice
SMQ, CRCM Offline
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SMQ, CRCM
Joined: Apr 2001
Posts: 4,828
Between the lines
Quote:

Attn: Best darn Compliance Officer this side of the river


I bet I really could revise our posters and NO ONE would notice. Thanks Andy.
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#153524 - 01/27/04 06:12 PM Re: New HMDA Notice
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
Just out of curiosity, has anyone EVER had a request to see their CRA file or HMDA LAR? I haven't.

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#153525 - 01/27/04 09:55 PM Re: New HMDA Notice
Rocky P Offline
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Joined: Jun 2003
Posts: 7,439
Florida
Quote:

has anyone EVER had a request to see their CRA file or HMDA LAR?



I had asked our local competition for the CRA Public Disclosure in the early days, and on more than one occation (after the local branch contacted their head office across country) was told the Public Disclosure was confidential information and they couldn't release it.
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#153526 - 01/27/04 10:02 PM Re: New HMDA Notice
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
LOL Jax! Thanks for the laugh!

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#153527 - 01/27/04 10:05 PM Re: New HMDA Notice
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,951
Bloomington, IN
Quote:

Just out of curiosity, has anyone EVER had a request to see their CRA file or HMDA LAR? I haven't.





I do every 18 to 24 months at exam time.

I have had one person, at a previous employer, ask to see our HMDA LAR. I asked her if she wanted to examine it while in the bank or if she wanted a copy sent to her. She then asked what kind of information was on the report and what it used for. I explained to her what it was and how large it was, she said "Oh forget it, I just saw the sign and wondered what it was."
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#153528 - 01/27/04 10:28 PM Re: New HMDA Notice
Sinatra Fan Offline
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Sinatra Fan
Joined: Jul 2002
Posts: 5,568
New Jersey
Quote:

Just out of curiosity, has anyone EVER had a request to see their CRA file or HMDA LAR? I haven't.




The only such request we have ever received has been from an examiner or auditor in the course of an examination or audit.
_________________________
Management is doing things right; leadership is doing the right things. Peter Drucker

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#153529 - 01/27/04 10:31 PM Re: New HMDA Notice
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
Hmmm....starting to see a trend here. Maybe we should take an informal poll and email it to D.C. via MaryBeth! Oh the dreams of change!

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#153530 - 01/28/04 03:41 PM Re: New HMDA Notice
LoisLane Offline
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LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
We've had requests for our CRA file. A number of these were from college students using the material to write reports.
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#153531 - 01/28/04 05:49 PM Re: New HMDA Notice
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
I guess my point is, it appears that none of us have ever had to provide these on behalf of legitimate customer inquiries. Lets face it, I don't think customers know or probably care about this information.

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#153532 - 01/28/04 06:03 PM Re: New HMDA Notice
Suwannee Offline
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Suwannee
Joined: Jun 2002
Posts: 641
Florida
Mac, I had someone request a copy of our LAR and disclosure. It took me over two hours (and two+ reams of paper) to copy it for the customer. I was sooooooo annoyed, because I knew that the customer only asked for a copy because s/he knew s/he could. Not knowing how large the report was and how time consuming copying the report would be, my bank rep told the customer there would be no charge.
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#153533 - 02/03/04 03:04 PM Re: New HMDA Notice
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
I sent a question to the HMDA help to clarify this for us so we are not caught off guard on what disclosure should be posted (we have a compliance exam coming up!), this was there response.

The FFIEC is not printing General Notice Posters for 2004. The suggested language for the 2004 General Notice Poster is available at the following link for your review: http://www.ffiec.gov/hmda/poster.htm
We recommend that you revise the language when the applicable data is available for distribution. (2004 data will be available for distribution mid year 2005).

I've gone ahead and provided the language below. The following shows the language found in the link above:

HOME MORTGAGE DISCLOSURE ACT NOTICE (for 2004)
The HMDA data about our residential mortgage lending are available for review. The data show geographic distribution of loans and applications; race, gender, and income of applicants and borrowers; and information about loan approvals and denials. Inquire at this office regarding the locations where HMDA data may be inspected.

HOME MORTGAGE DISCLOSURE ACT NOTICE (for 2005)
The HMDA data about our residential mortgage lending are available for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, and income of applicants and borrowers; and information about loan approvals and denials. Inquire at this office regarding the locations where HMDA data may be inspected.

**Dont forget: Additional language for institutions making the disclosure statement available on request. An institution that posts a notice informing the public of the address to which a request should be sent could include the following sentence, for example, in its general notice: "To receive a copy of these data send a written request to [address]."

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#153534 - 02/04/04 01:25 PM Re: New HMDA Notice
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
Quote:

I sent a question to the HMDA help to clarify this for us so we are not caught off guard on what disclosure should be posted (we have a compliance exam coming up!), this was there response.

The FFIEC is not printing General Notice Posters for 2004. The suggested language for the 2004 General Notice Poster is available at the following link for your review: http://www.ffiec.gov/hmda/poster.htm
We recommend that you revise the language when the applicable data is available for distribution. (2004 data will be available for distribution mid year 2005).





I sent the same question to HMDA Help and was told that I should make the new notice available 01/01/2004.

I'd call it "HMDA HELPLESS".

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#153535 - 02/04/04 02:45 PM Re: New HMDA Notice
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
But it makes sense because the 2003 data collected did not have ethnicity so how can we disclose that it is available for review? Anyway, I am going to update ours this week with their recommended language (for 2004) and call it a day.

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#153536 - 02/05/04 08:33 AM Re: New HMDA Notice
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Logistically, what a nightmare to be changing the HMDA poster two years in row in all of your branches. If you only have a couple of branches, that's one thing.

But if you have a bunch, it's like herding cats everytime you need to change a disclosure sign! I think for the "transition" time" (2004 through 3/30/2005), you should be okay regardless if you post the "old" HMDA sign or the new one. Talk about a ticket trap at exam time!

Do they think we can simply snap a finger and the new sign will jump into the wall frame?

Oh where is Samantha Stevens when you need her?
_________________________
CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'

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#153537 - 02/05/04 12:47 PM Re: New HMDA Notice
JMB Offline
Member
JMB
Joined: Mar 2002
Posts: 59
Michigan
I once had a request from an attorney's office for our disclosure (of course that was before information was readily available on the internet). Without prompting, the woman assured me that it was for research and did not involve any potential action against my employer - and nothing ever did happen.

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#153538 - 02/05/04 02:38 PM Re: New HMDA Notice
Anonymous
Unregistered

We started collecting HMDA data on Jan 1, 2004. If someone does come in and request to see the data do we have to compile what we have accumulated up to that date or do we inform them that all disclosure material will be available in January 2005?

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#153539 - 02/05/04 02:53 PM Re: New HMDA Notice
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
Quote:

We started collecting HMDA data on Jan 1, 2004. If someone does come in and request to see the data do we have to compile what we have accumulated up to that date or do we inform them that all disclosure material will be available in January 2005?




No, your HMDA LAR modified reports are an aggregate of information obtained throughout the previous year. You will not have any information to report or make available until 2005.

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#153540 - 02/05/04 04:16 PM Re: New HMDA Notice
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,542
On the Net
I can't see changing the sign twice and for that reason recommend the minor text modification as to what is available and when.

In my 21 years in the bank I NEVER had a request. The CRA was another matter. One church group asked to see it but had no idea what they were looking at. And once every few years a college student would ask about it for research.

Making HMDA data available is an outdated and near manual mode that is rendered useless by the Net. The groups that do want this data go to a consolidated source. And that is fine. If this notice were no longer required and was in fact removed, your customers and staff would see how the paneling faded when the sign was removed. Guess you could hang the presidents picture in its place.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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