Our bank does not require applications on commercial loans. Since this loan is HMDA reportable should there have been an application to record GMI? GMI is recorded on the HMDA boarding sheet. I'm asking since i have no way of comparing info on the HMDA boarding sheet to anything. Thank you
Most likely the recording of the GMI on the boarding sheet is not compliant because I'll bet you the proverbial dollar to a hole in a donut that the commercial loan officer did not provide or read the required disclosure to the applicant.
The following is from page 2 of the GIR. It is management's responsibility to have procedures in place for all business lines to comply with HMDA.
If your institution is required to comply with HMDA, management must ensure that:
Procedures are in place for collecting and maintaining accurate data regarding each loan application, loan origination, and loan purchaseâ€” for home purchase loans, home-improvement loans, and refinancings.
And from page C-7 of the GIR:
(b) Bona fide errors.
(1) An error in compiling or recording loan data is not a violation of the act or this part if the error was unintentional and occurred despite the maintenance of procedures reasonably adapted to avoid such errors.
If management has not put in place and maintained procedures for the commercial loan business line to collect and report HMDA data then any "inadvertent" failure to collect the data will not be a bona fide error because management did not implement and maintain procedures to collect and report the data.