We have never reported LOC (line of credit - revolving, and straight line) loans, even with the collateral being a residential dwelling. Most of them are 12M terms, or less. Is this correct?

Reporting is optional to the bank.

This came about as the early lines of credit were processed and maintained on software designed for credit cards (initial amount, draws and repayments, billed on outstanding balance, etc.). Since the software, unlike mortgage software, did not have the abilities to capture a lot of the HMDA information, the ABA put up a good fight (I believe the late 1980's) to have them as optional reporting. It has stuck.

Open-end lines are optional reporting, as Rocky states.
However, be careful that you don't use this term incorrectly. If you have a closed-end, multiple advance loan, it is NOT a LOC. I'm not sure what you mean by "straight line". Maybe you want to reply and define. The term "12M" doesn't make it temporary.

Thank you so much for the clarification.

Ours are set up where we loan up to a certain amount and they come in and draw out what they need as they need it but they can't go over the set loan amount.

That's still not clear. All loans should have a cap. Open end means they can draw/pay/draw pay etc, just like a credit card.

A closed-end means that they have a limit...and can only draw up to that limit and not pay down and be able to draw it back up again. Typically things like construction/rehab loans are done this way.

Closed-end is not optional...you will then have to know whether it's temporary or simply short-term.

They do have a cap....the amount we loan up to. So I'm thinking ours would be closed ended then. I do not know much at all about the lending side, just the basics...and when I took over doing our HMDA, I was trained that we don't report our loans that are revolving lines of credit that are less than a 12M term.
So I'm trying to figure out if I've been doing things incorrect or not.

Thanks.

You either do or you don't report RLOC's. There is no 'term' involved in making that decision.

I'm pretty sure you are dealing with a closed end line of credit (look at your note, it should tell you what you have)

Simply saying you never report a closed-end line based on a term limit is false. You have to go a step further and determine whether it is temporary or simply short term in nature.