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#2153019 - 11/10/17 04:05 PM
HMDA - in one sentence
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Diamond Poster
Joined: Nov 2004
Posts: 1,005
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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
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Power Poster
Joined: Sep 2010
Posts: 2,670
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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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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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#2153028 - 11/10/17 04:22 PM
Re: HMDA - in one sentence
river girl
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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This ^^^
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#2153029 - 11/10/17 04:25 PM
Re: HMDA - in one sentence
river girl
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Power Poster
Joined: Aug 2001
Posts: 7,364
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A residential lot is technically "residential real estate."....specify "dwelling?"
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The more you sweat in training, the less you bleed in battle.......
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#2153030 - 11/10/17 04:27 PM
Re: HMDA - in one sentence
river girl
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Power Poster
Joined: Aug 2001
Posts: 7,364
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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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The more you sweat in training, the less you bleed in battle.......
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#2153035 - 11/10/17 04:45 PM
Re: HMDA - in one sentence
river girl
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Diamond Poster
Joined: May 2011
Posts: 2,004
Idaho
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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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All opinions are my own, not my employer's
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#2153038 - 11/10/17 04:56 PM
Re: HMDA - in one sentence
river girl
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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Nailed it.
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#2153039 - 11/10/17 04:57 PM
Re: HMDA - in one sentence
TMatt87
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Power Poster
Joined: Sep 2010
Posts: 2,670
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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.
_________________________
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
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Power Poster
Joined: Oct 2009
Posts: 9,232
OK
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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
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Power Poster
Joined: Oct 2009
Posts: 9,232
OK
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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
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Power Poster
Joined: Sep 2010
Posts: 2,670
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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
_________________________
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
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Diamond Poster
Joined: May 2011
Posts: 2,004
Idaho
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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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All opinions are my own, not my employer's
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#2153094 - 11/10/17 07:28 PM
Re: HMDA - in one sentence
river girl
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Power Poster
Joined: Sep 2010
Posts: 2,670
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Yes it is, but it is also a Friday... ;-)
_________________________
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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#2153125 - 11/10/17 08:40 PM
Re: HMDA - in one sentence
Adam Witmer
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Diamond Poster
Joined: Nov 2004
Posts: 1,005
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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
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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yes. ABC is meaningless to HMDA.
_________________________
My opinion only. Not legal advice. 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
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Power Poster
Joined: Oct 2009
Posts: 9,232
OK
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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
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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Stop that! LOL!
_________________________
My opinion only. Not legal advice. 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
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Power Poster
Joined: Oct 2009
Posts: 9,232
OK
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You're too quick for me.
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#2153162 - 11/10/17 11:46 PM
Re: HMDA - in one sentence
river girl
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Diamond Poster
Joined: Nov 2004
Posts: 1,005
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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
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10K Club
Joined: Nov 2000
Posts: 18,765
Central City, NE
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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
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Platinum Poster
Joined: Jul 2015
Posts: 542
Gorham, ME
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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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