So if you receive application in 2016 - make loan in 2016 BUT it is not funded until 2017 due to rescission....is it reportable when loan is signed by customer or when loan is funded and customer's can no longer rescind? Thanks in advance for your help - I can't believe we have never had this happen in my 20 years as Compliance Officer.

HMDA allows you to report it either way. However, the new HMDA rules (beginning in 2018) don't. If you go with the rescission date, you cause examiners/auditors to have to dig to prove when the loan was funded vs. simply looking at the note date.

I know you weren't asking about 2018, but here's the new rule:
Report the …date of the action taken by the financial institution. [§1003.4(a)(8)(ii)] If the disbursement of funds takes place on a date later than the closing or account opening date, the institution may use the date of initial disbursement. [Commentary to §1003.4(a)(8)(ii) #5]

BUT:
Notwithstanding this flexibility regarding the use of the closing or account opening date in connection with reporting the date action was taken, the institution must report the origination as occurring in the year in which the origination goes to closing or the account is opened. [Commentary to §1003.4(a)(8)(ii) #5]

I always recommend going with the note date.

Without going to the new rules I'm confused whether David is mingling the new and old rules with the "BUT" statement or if that statement is part of the new rules also.

Under the current rules you have to report the closing date in this situation. If your funding crosses into a different year after closing you lose your option for reporting the funding date.

From page D-9 of the GIR.

6 Action taken date— originations.

. . . . . . Notwithstanding this flexibility regarding the use of the closing date in connection with reporting the date action was taken, the year in which an origination goes to closing is the year in which the institution must report the origination.

I am confused Dan. Thanks for clarifying that.

My point was the new rules allow you to report the closing date OR the funding date. However, when it crosses into a different year, you don't have that option. I was thinking this was new in 2018. You're right that it isn't new.

Thus, this is not a change. You must report the loan in the year it closed.