On the LAR I'm getting an error that states:

"Lien Status = 2 and Loan Amount exceeds $250,000"

This loan is a second position loan but I don't have any idea why I would be getting this error. Can anyone shed some light?

Thank you in advance!

My thought would be that, at least in my area of the world, it would be rare for someone to have enough equity in their home to be able to get a 2nd lien loan for over $250,000. My guess is that's the line of the "quality edit'...(it's not showing up as an actual error is it?). Obviously, for those with more expensive homes, it's not impossible, but again, i'd say it's rare-ish, depending on where you live.

We get that Q error quite frequently. We have lots of high value homes and a second lien for $250,000 isn't that unusual.

It does actually pop up as an actual error, the code is Q037.

NMB is there something you do to correct it?

Q=quality edit. It isn't an error...it's a "please verify the accuracy of this" type statement. Just document that it's accurate and you're good.

Perfect!! Thank you both!

"Validity" edits are errors.

Agree just like it pops up a Q error for a manufactured over $150k - just make sure its correct and go with it.

If you refer to the codes in this, it will tell you what you are expected to do:

https://www.ffiec.gov/hmda/pdf/edit2016.pdf

On the HMDA Edits, if they are Q027 or Q036 and we have verified them, do we write next to the error that they are ok and fax that sheet back in? I'm confused on which sheets to actually fax or email back to them. We are new to HMDA this year.

I sent my cover letter with the ALL DATE IS ACCURATE, NO CORRECTIONS REQUIRED line marked X.
That section goes on to read: DO NOT return the entire edit report....
I also sent the Edit Report page that showed total loans transmitted and circled the Q edits and wrote No Corrections Required;
the Macro Quality Edit Report with explanations and the Confirmation Sheet signed as required.