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#2153019 - 11/10/17 04:05 PM HMDA - in one sentence
river girl Offline
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Trying to create training material. KayBee's HMDA material is great. This statement simplifies and is a good opener as long as the final rule makes the statement still true.

All applications, regardless of purpose, would be HMDA reportable if the application is for a loan to be secured by residential real estate.

This is why cash out equity loans and other purposes are now included in the new rule.

Am I correct?

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#2153023 - 11/10/17 04:13 PM Re: HMDA - in one sentence river girl
Adam Witmer Offline
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Originally Posted By river girl
All applications, regardless of purpose, would be HMDA reportable if the application is for a loan to be secured by residential real estate.


I think that works for consumer purpose loans, but business purpose loans still have to have a purpose of a purchase, refinance, or home improvement loan.

Maybe you could change the statement to say "All consumer applications..."
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All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2153028 - 11/10/17 04:22 PM Re: HMDA - in one sentence river girl
RR Joker Offline
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This ^^^
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#2153029 - 11/10/17 04:25 PM Re: HMDA - in one sentence river girl
swiggles Offline
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A residential lot is technically "residential real estate."....specify "dwelling?"
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#2153030 - 11/10/17 04:27 PM Re: HMDA - in one sentence river girl
swiggles Offline
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AND, at least here in my shop, some "commercial" lenders label investment/rental property as "commercial real estate." So they think they are excluded from having to think about HMDA.
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#2153033 - 11/10/17 04:30 PM Re: HMDA - in one sentence river girl
hmdagal Offline
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PreQuals are not reportable, as are some PreApproval requests.

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#2153035 - 11/10/17 04:45 PM Re: HMDA - in one sentence river girl
TMatt87 Offline
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Idaho
And don't forget about the temporary financing exemption for construction and bridge loans. There are no "blanket statements" when it comes to HMDA.
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#2153038 - 11/10/17 04:56 PM Re: HMDA - in one sentence river girl
RR Joker Offline
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Nailed it.
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#2153039 - 11/10/17 04:57 PM Re: HMDA - in one sentence TMatt87
Adam Witmer Offline
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Originally Posted By TMatt87
There are no "blanket statements" when it comes to HMDA.


Challenge accepted. What about this:

All dwelling secured 1) consumer purpose applications and 2) business purpose applications for the purpose of a purchase, refinance, and home improvement loan would be HMDA reportable unless they are excluded by definition.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2153043 - 11/10/17 04:59 PM Re: HMDA - in one sentence river girl
raitchjay Offline
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OK
Accurate, but without more information, potentially dangerous....at least in my shop.
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#2153044 - 11/10/17 05:01 PM Re: HMDA - in one sentence river girl
raitchjay Offline
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OK
Then you throw in mixed-use, and the caveat that your people must understand that a mixed-use property whose primary use is commercial is not a "dwelling" for HMDA purposes......
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#2153046 - 11/10/17 05:06 PM Re: HMDA - in one sentence raitchjay
Adam Witmer Offline
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Originally Posted By raitchjay
Accurate, but without more information, potentially dangerous....at least in my shop.


It's dangerous in any shop. I've found that it can take hours to accurately explain what is or what is not HMDA reportable
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2153067 - 11/10/17 06:20 PM Re: HMDA - in one sentence Adam Witmer
TMatt87 Offline
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Originally Posted By Adam Witmer, CRCM
Originally Posted By TMatt87
There are no "blanket statements" when it comes to HMDA.


Challenge accepted. What about this:

All dwelling secured 1) consumer purpose applications and 2) business purpose applications for the purpose of a purchase, refinance, and home improvement loan would be HMDA reportable unless they are excluded by definition.


That's a blanket statement with a lot of caveats...
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#2153094 - 11/10/17 07:28 PM Re: HMDA - in one sentence river girl
Adam Witmer Offline
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Yes it is, but it is also a Friday... ;-)
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2153107 - 11/10/17 08:10 PM Re: HMDA - in one sentence river girl
RR Joker Offline
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And you probably did not stay in a Holiday Inn Express last night, either! smirk
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#2153125 - 11/10/17 08:40 PM Re: HMDA - in one sentence Adam Witmer
river girl Offline
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thanks everyone this helps. For some reason I keep forgetting the business purpose still needs to follow the purchase, refi, HI part of the rule.

How does taking a dwelling as abundance of caution for business purpose count? Does it need to meet the dwelling definition test and the purpose test, as listed above?

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#2153129 - 11/10/17 08:43 PM Re: HMDA - in one sentence river girl
RR Joker Offline
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RR Joker
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The Swamp
yes. ABC is meaningless to HMDA.
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Say you'll haunt me - Stone Sour

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#2153130 - 11/10/17 08:43 PM Re: HMDA - in one sentence river girl
raitchjay Offline
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OK
Yes.......there are no exceptions for abundance of caution when it comes to HMDA.
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#2153139 - 11/10/17 08:47 PM Re: HMDA - in one sentence river girl
RR Joker Offline
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The Swamp
Stop that! LOL!
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Say you'll haunt me - Stone Sour

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#2153140 - 11/10/17 08:49 PM Re: HMDA - in one sentence river girl
raitchjay Offline
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OK
You're too quick for me.
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#2153162 - 11/10/17 11:46 PM Re: HMDA - in one sentence river girl
river girl Offline
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clarify when you say AOC is meaningless.

Business purpose has to be for purchase, HI or refi still so if we aren't doing any of those actions with the dwelling taken as AOC, does HMDA apply?

Busines purpose $500,000 taking inventory or stocks, etc as primary collateral and then a lien on the home they own (personal or investment) free and clear. There is no refi if home is free and clear so would this be HMDA?

And then if they didn't own home free and clear and we took a second lien position, HMDA no?

And then if they didn't own home free and clear but we REFI the 1st lien, HMDA yes?

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#2153163 - 11/11/17 12:30 AM Re: HMDA - in one sentence river girl
David Dickinson Offline
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David Dickinson
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Central City, NE
Busines purpose $500,000 taking inventory or stocks, etc as primary collateral and then a lien on the home they own (personal or investment) free and clear. There is no refi if home is free and clear so would this be HMDA?
No. This is exempt assuming the equity is not use dot purchase, refinance or improve a dwelling. However, if this loan is refinanced, it is reported.

And then if they didn't own home free and clear and we took a second lien position, HMDA no?
This is also not reported. If this loan is refinanced, it is reported.

And then if they didn't own home free and clear but we REFI the 1st lien, HMDA yes?
Yes. Anytime you refinance a home loan, it is reported. Majority purpose/funds never wins when it comes to HMDA.
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#2154382 - 11/21/17 04:22 PM Re: HMDA - in one sentence river girl
Tracey, CRCM Offline
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Joined: Jul 2015
Posts: 542
Gorham, ME
Anyone have any commercial HMDA training material they are willing to share? Easy to follow and not complicated for the commercial lenders (who seem to make everything more complicated than it has to be).
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Tracey

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#2154410 - 11/21/17 05:52 PM Re: HMDA - in one sentence RR Joker
MyKidsMom Offline
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TEXAS
That part of HMDA hasn't changed.

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#2154421 - 11/21/17 06:25 PM Re: HMDA - in one sentence river girl
RR Joker Offline
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The Swamp
But yes it has! errrr....unless you mean commercial lenders and their innate ability to complicate things smirk
Last edited by RR Joker; 11/21/17 06:26 PM.
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