Page 4 of 5 1 2 3 4 5
Thread Options
#1952615 - 08/13/14 05:25 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
David, you have to consider "mobile homes constructed prior to June 15, 1976" by itself. That is the dividing line for the HUD manufactured home standards. 1976 has no bearing on anything other than manufactured homes.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
HMDA

   
HMDA Academy
#1952628 - 08/13/14 05:38 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
And lastly, campers and RVs used as residences would be excluded. The full commentary statement:

"2. Exclusions. Recreational vehicles, including boats, campers, travel trailers, and park model recreational vehicles, are not considered dwellings for purposes of § 1003.2(f), regardless of whether they are used as residences. Houseboats, floating homes, and mobile homes constructed before June 15, 1976, are also excluded, regardless of whether they are used as residences. Also excluded are transitory residences such as hotels, hospitals, and college dormitories, and structures originally designed as dwellings but used exclusively for commercial purposes such as homes converted to daycare facilities or professional offices."
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1952743 - 08/13/14 07:54 PM Re: CFPB Proposed Rule amending Regulation C/HMDA Kathleen O. Blanchard
Sage Offline
Platinum Poster
Joined: Aug 2005
Posts: 914
[i]The proposal also is recommending some additional slicing and dicing of reporting on manufactured homes. Reporting entities would be asked to identify if a manufactured home is treated as real or personal property and whether it is on owned or leased land.[/i]

Would the above additional information have to be reported on all applications- even those that do not close? For those that get denied, or do not close-would you know that information?

Return to Top
#1952797 - 08/13/14 08:47 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Thanks Kathleen. I have not yet read the section by section analysis. I went straight to the reg - from where I quote that houseboats are covered, if built after 1976.

Which makes me wonder about the portions you quote. From the section by section analysis, It sounds like ALL houseboats & campers are excluded, but in the regulation/commentary, it doesn't say it that way. Wonder why?

This is definitely something that should be asked to be clarified in comment letters.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1952804 - 08/13/14 08:52 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Let me throw out one specific example of how this is confusing. I have an aunt that lives full time in what you and I would call an RV. It's a $300,000+ rolling home (bus). She has a garage and pad on a lot in Idaho, but there's no house there any longer. She travels around in this bus (that is nicer than my stick built home).

Would you say this "dwelling" is excluded from HMDA because it's a camper? Or because you call it an RV? It's not recreational. It's her primary residence.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1952830 - 08/13/14 09:17 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Yes, excluded. They discuss bankers telling them those have been reported for HMDA and the CFPB says they don't want them reported. They need to beef up the reg and commentary so that we don't have to carry the analysis around with us.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1952862 - 08/13/14 10:13 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:
They need to beef up the reg and commentary so that we don't have to carry the analysis around with us.

Well said! smile
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1955511 - 08/20/14 09:30 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Here's my analysis of the COVERAGE. I’m only concentrating on the coverage (what’s a covered loan and what’s exempt from reporting at this time) of the proposal. I'm also approaching this for bankers (not brokers) as they are our clients. I will begin to read the data reported next.

Please read my comments and let me know if you disagree or if I'm missing any thing important. Thanks!


Who must report:
Any financial institution that makes 25 closed-end, dwelling secured loans is to report. You don’t count HELOC’s in this test.
No change to the requirement of having an office in a MSA and assets in excess of an annually threshold.

What do you report:
All applications for a “Covered Loan” (Closed-end & Open-end HELOC’s secured by a lien on a dwelling).
• This means home equity loans, not used for home improvement purposes, are reported.
• HELOC’s, as defined in Reg Z are reported. [§1003.2(o) – page 461]
o Includes business lines too (“without regard to whether the credit is for personal . . . purposes, without regard to whether the person to whom credit is extended is a consumer”).
o Therefore, ALL business LOCs secured by a dwelling are reported.
• Unsecured Home Improvement loans that are classified as “home improvement” are no longer reported. The loan must be secured by a lien on a dwelling. (non-dwelling secured loans and classification issues are gone)
• A mobile home without land is still reported.
• Home improvement is not “majority wins”. If any % is for HI, the entire loan amount is reported.
• If a loan is for HI to a mixed used property, report IF the proceeds are used primarily to improve the residential portion. [Commentary to §1003.2(i)#4 – page 517]
• Therefore, if you have a dwelling as collateral, it’s probably being reported. If you don’t have a dwelling as collateral, it is never reported.
• All agricultural purpose loans are exempt [1003.3(c)(9) – page 462]
o What about Ag LOC’s secured by a dwelling. Does the HELOC inclusion “win” or does the “ag purpose exclusion “win”?
o What about those that are refinanced? Does the ag exemption trump the refinance definition?

Dwelling [§1003.2(f)]:
Any place where someone dwells (vacation, rental, multifamily).
Dwelling does not include:
• Recreational vehicles, boats, campers, travel trailers and park model recreational vehicles. [Commentary to §1003.2(f)#2 (page 513)]
• Transitory residences (hotels, hospitals, dorms)

Mixed used property [Commentary to §1003.2(f)#3 – page 513] = determine the primary use. You can use any reasonable standard and apply it on a case-by-case basis.

Refinancing: [§1003.2(p)]
The definition of “refinancing” is cleaned up a little.
• I’d like to see clarification of when 2 loans are needed to replace 1 loan. Is either a refinancing?
• There’s clarification of “same borrower” in the commentary: Only 1 borrower must be the same on both the old and new loan. [Commentary to §1003.2(p)#3 – page 520]
(I don't this is a change but a clarification and can be used under the current HMDA rules before this proposal is finalized and in place)

What do you not report [1003.3(c)]:
Unimproved land;
Temporary financing
Loans < $500
Loans used primarily for agricultural purposes (but what about a refinancing of these?)

Preapproval & Prequalification [§1003.2(b)(2)]:
I don’t see any differences in the new definitions from the old.
There’s clarification that a bank can do preapprovals on an ad hoc basis and not have a preapproval program. In other words, an occasional preapproval does not get reported [Commentary to §1003.2(b)#3 on page 512]. What’s occasional?
(I don't this is a change but a clarification and can be used under the current HMDA rules before this proposal is finalized and in place)
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1955519 - 08/20/14 09:51 PM Re: CFPB Proposed Rule amending Regulation C/HMDA David Dickinson
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
David, you can see my thoughts on several of the issues

here.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1955548 - 08/21/14 11:22 AM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
complymuch, crcm Offline
Member
Joined: Apr 2013
Posts: 79
FL
I did not see anything in the proposed rules/commentary as to what data fields would be required or answered NA for denied, withdrawn and cancelled applications.

Return to Top
#1955552 - 08/21/14 12:05 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
The proposed changes to Action Taken are merely to the commentary. Additionally, denial reasons would be required.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1956629 - 08/25/14 04:45 PM Re: CFPB Proposed Rule amending Regulation C/HMDA Kathleen O. Blanchard
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,341
From the ABA Staff Commentary out Friday comes this:
Quote:
To help alleviate burden, filers would no longer have to provide copies of their HMDA-LAR but would be able to refer requesters to the Federal Financial Institutions Examination Council (FFIEC) website to obtain copies of disclosure statements.
I've gotten two requests in the last ten years. Pardon me, CFPB, but you can keep your bone. This is not going to touch the additional burden you're lining up for me. mad

Return to Top
#1956643 - 08/25/14 05:02 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Everyone has been asking for this for years. If they ignored the requests, they would get complaints.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1956646 - 08/25/14 05:06 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,341
It's the 'to alleviate burden' bit that annoys me, Kathleen. Just say it's no longer a requirement instead of making it sound like you're doing such a favor for us all.

:sigh: rant over

Return to Top
#1956647 - 08/25/14 05:06 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
You have to read each statement separately. It alleviates the burden of that particular requirement.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1962163 - 09/16/14 02:39 PM Re: CFPB Proposed Rule amending Regulation C/HMDA Kathleen O. Blanchard
SnuffytheSeal Offline
Gold Star
Joined: Oct 2009
Posts: 270
State of Confusion
Okay... so if I have a manufactured home, built prior to June 1976 (no HUD plate), I do not have a covered loan? Even though it's dwelling secured.

Oh my.......
_________________________
Waiter, there's too much pepper in my paprikash

Return to Top
#1964637 - 09/25/14 03:52 PM Re: CFPB Proposed Rule amending Regulation C/HMDA Kathleen O. Blanchard
SouthoftheBorder Offline
Gold Star
Joined: Feb 2002
Posts: 335
The South
Quote:
Unsecured Home Improvement loans that are classified as “home improvement” are no longer reported. The loan must be secured by a lien on a dwelling. (non-dwelling secured loans and classification issues are gone)

I am particularly HAPPY about this. Last year HMDA Help and FDIC indicated if the loan purpose was stated on the application as home imrovement this 'classified' the loan on the books even though unsecured. Many in these forums indicated they did not report these types of loans and several others indicated they did report unsecured HIL's even though not classified as such. grin

Return to Top
#1964815 - 09/25/14 07:50 PM Re: CFPB Proposed Rule amending Regulation C/HMDA SouthoftheBorder
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,379
Florida
Originally Posted By: SouthoftheBorder
[quote]Unsecured Home Improvement loans that are classified as “home improvement” are no longer reported. The loan must be secured by a lien on a dwelling. (non-dwelling secured loans and classification issues are gone)

Great for fair lending. In a comparative file review (where policy was no bankruptcies within 3 years) regulators matched $10,000 home improvement loans:

denied was to a protected class who was renting (therefore unsecured) and
approved was to a control group applicant who pledged $20,000 in CD's (CD exception to bankruptcy was in policy)

We were required to explain the differences why both HIP loans had different outcome.
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.

Return to Top
#1964836 - 09/25/14 08:25 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
raitchjay Offline
Power Poster
Joined: Oct 2009
Posts: 8,701
OK

"Last year HMDA Help and FDIC indicated if the loan purpose was stated on the application as home imrovement this 'classified' the loan on the books even though unsecured..."



I'd love to know how home improvement being stated on the application equates to the bank 'classifying' the loan as HI on its books.
Last edited by raitchjay; 09/25/14 08:28 PM.
_________________________
I'm fixin' to fix that.

Return to Top
#1964842 - 09/25/14 08:36 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
It doesn't. HMDA Help and FDIC are wrong. The loan must be classified on the bank's SYSTEM. This is clear in the commentary. Loan officer and/or applicant comments make no difference for this issue.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1967104 - 10/06/14 02:02 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,593
Cape Cod
The question above about what to use if a primary MLO hasn't been identified for the loan being reported isn't answered by the provision allowing for "NA" if the MLO doesn't have an NMLS ID.

And just an observation: In some higher volume lending organizations, it may be the underwriter that has the most influence over the fate of the application, not the MLO.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1967266 - 10/06/14 07:44 PM Re: CFPB Proposed Rule amending Regulation C/HMDA Kathleen O. Blanchard
INOH Offline
Gold Star
Joined: Jul 2012
Posts: 344
Northeast
So, just to make sure I understand...

we are not in a MSA but do make more than the 25 loan threshold. Would be have to start reporting?
_________________________
Just trying to swim in the compliance world.

Return to Top
#1967389 - 10/06/14 11:01 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
TMatt87 Offline
Diamond Poster
TMatt87
Joined: May 2011
Posts: 1,923
Idaho
The MSA test is still included in the coverage test, so no you would not have to start reporting.
_________________________
All opinions are my own, not my employer's

Return to Top
#1968600 - 10/09/14 08:33 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
purllow182 Offline
Member
purllow182
Joined: Apr 2014
Posts: 69
Where is everyone's comment letters??? There's less than 30 posted - with 2 weeks left?!

Return to Top
#1968640 - 10/09/14 09:46 PM Re: CFPB Proposed Rule amending Regulation C/HMDA GTS333
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I'm drafting mine.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
Page 4 of 5 1 2 3 4 5

Moderator:  SMQ, CRCM