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#1667933 - 02/21/12 08:52 PM
HMDA Purchaser Code
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Posts: 178
Midwest
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Hello, We have a loan that is guaranteed by the SBA (7a), and in addition we sold a 75% participation to a broker-dealer investment firm. Would we report as Purchase code 5 - Private Securitization? Your thoughts are appreciated From the HMDA FAQ, which is another language to me and I don't quite understand: Type of Purchaser - Private securitization. When should code 5 for "private securitization" be used?
Answer: Code '5' is to be used for securitizations by purchasers other than by one of the government-sponsored enterprises identified in codes '1' through '4'. If an institution selling a loan knows or reasonably believes that the loan will be securitized by the institution purchasing the loan, then the seller should use code '5' for "private securitization" regardless of the type or affiliation of the purchasing institution. Reasonable belief or knowledge could, for example, be based on the purchase agreement or other related documents, the institution's previous transactions with the purchaser, or the purchaser's role as a securitizer (such as an investment bank). If an institution selling a loan does not know whether the purchaser will securitize the loan, and, the seller knows that the purchaser frequently holds or disposes of loans by means other than securitization, then the seller should use one of codes '6' through '9', depending on the nature of the purchaser.
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#1668975 - 02/23/12 05:55 PM
Re: HMDA Purchaser Code
ProfitDefender
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100 Club
Joined: Dec 2010
Posts: 178
Midwest
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-anyone have any thoughts on this?
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#1668991 - 02/23/12 06:09 PM
Re: HMDA Purchaser Code
Kathleen O. Blanchard
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Joined: Dec 2010
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Midwest
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Thanks KB, much appreciated!
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#1670453 - 02/28/12 02:49 PM
Re: HMDA Purchaser Code
Kathleen O. Blanchard
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Joined: Oct 2009
Posts: 9,105
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How does this tool work exactly? I put in the information for my investor and get "domestic entity--other"; the definition of "domestic entity--other" is given as "Domestic institutions that engage in banking activities usually in connection with the business of banking in the United States"......so does that correspond to a "6"?
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#1670464 - 02/28/12 03:00 PM
Re: HMDA Purchaser Code
ProfitDefender
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Thanks Kathleen. I'm still highly confused by that site, so i may ask this again when i have a new investor .
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#1670467 - 02/28/12 03:03 PM
Re: HMDA Purchaser Code
ProfitDefender
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Thank you as always.
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#1787445 - 02/19/13 11:40 PM
Re: HMDA Purchaser Code
ProfitDefender
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I chose to respond to this particular thread because it's already been explained about the NIC website and how to determine the purchaser code using it. However, I'm curious how you go about searches for entities that show no results. We've had them as 9's, but I'd really like to get some feedback.
Thank you in advance for your time!
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#1787462 - 02/20/13 12:25 AM
Re: HMDA Purchaser Code
ProfitDefender
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How about Franklin American Mortgage Company?
Also, I searched for Affiliated Mortgage Company and it's there, but want to make sure I understand correctly. The search showed Domestic Entity Other. I did the heirarchy by parent and I read that to mean Benchmark Bank is the parent. So, purchaser code would be 6?
Last edited by Mrs. Rizzo; 02/20/13 12:33 AM.
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#1788054 - 02/21/13 06:19 PM
Re: HMDA Purchaser Code
ProfitDefender
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How do you determine about FAMC being a 7? How they are licensed?
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#1788093 - 02/21/13 07:03 PM
Re: HMDA Purchaser Code
ProfitDefender
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I placed FAMC as a 7 because the definition for 7 is: Code 7—Life insurance company, credit union, mortgage bank, or finance company The separate mortgage lending companies that are subs of banks or in bank holding companies are state licensed are reported as 7s. Franklin American is state licensed and is a mortgage "bank". From their website: "Founded in 1993, Franklin American Mortgage Company (FAMC), a privately-held mortgage banking firm located in Franklin, Tennessee, is a full-service professional mortgage banker licensed to provide residential mortgages across the nation. FAMC, which offers a host of diverse, flexible mortgage packages for customers with a variety of backgrounds and needs, is committed to helping families and individuals achieve the dream of home ownership through its three divisions: retail, wholesale and correspondent. " License Info: https://www.franklinamerican.com/ext/general?npage=disclaimerBased upon all of that I code that type of non-depository banking company as 7 (domestic entity other) [which is what the bank or bank holding company subs are listed as in the NIC] and have never been cited as being wrong by any of the regulatory agencies. Some of the non-depository mortgage companies that are part of bank holding companies state to code them as 7s in their purchaser guides.
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#1788109 - 02/21/13 07:16 PM
Re: HMDA Purchaser Code
ProfitDefender
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I agree with you. Needed to validate my thoughts.
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#1788242 - 02/22/13 12:20 AM
Re: HMDA Purchaser Code
ProfitDefender
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Joined: Jan 2013
Posts: 11
Arizona
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Thank you this helped me as well.
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