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#2185023 - 07/11/18 08:19 PM Re: HMDA bill passes House Truffle Royale
David Dickinson Offline
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David Dickinson
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Central City, NE
Joker is right. Read this again (what I said in my last post):
a. Subject to HMDA
If you originate at least 25 closed-end loans, but not 500 open-end lines of credit, you only report closed-end loans. [Commentary to §1003.3(c)(12) #1] If you originate at least 500 open-end lines of credit, but not 25 closed-end loans, you only report open-end lines of credit. If you originated > 25 loans and > 500 lines, you report both loans and lines. [Commentary to §1003.3(c)(11) #1]

I'll try to say it another way:
You ARE subject to HMDA, IF you originate at least 25 closed-end covered loans. You ARE subject to HMDA if you originate at least 500 covered lines. Both of these require 2 years of meeting this threshold.
You are NOT subject to HMDA, IF you only originated only 0-24 closed-end loans in either of the last 2 years AND only originate 0-499 lines of credit.

All they did was raise the 25 threshold to 500 and excluded some of the data. IOW, you are still subject to HMDA if you originated 25-499 covered loans, but you will be a "small filer."

I have a grid/table that accompanies this narration and helps explains it, but I can't post a table.
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#2185028 - 07/11/18 08:53 PM Re: HMDA bill passes House Truffle Royale
Cat Lover Offline
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Thank you.

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#2185037 - 07/11/18 10:06 PM Re: HMDA bill passes House Truffle Royale
SMQ, CRCM Offline
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Between the lines
I am still back to my original concern, when I am counting loans originated; do I count all of them, even if they are not HMDA reportable to determine my status as small filer?
(BTW, I like your "small filer" terminology.)

For example, I have 475 closed end mortgage loans that will be HMDA reportable,
and for convenience, I have 50 LOCs, so no issue here,
but I also have 50 closed end mortgage loans that would not be reportable for HMDA purposes, (business purpose, not HMDA)
this totals 525 closed end mortgage loans (50 are not HMDA).
Am I a small filer or no?

Thanks,
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#2185052 - 07/12/18 08:30 AM Re: HMDA bill passes House Truffle Royale
rlcarey Offline
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Galveston, TX
Well, hopefully they will clarify, but I am not sure why you would count anything other than "covered loans".
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#2185073 - 07/12/18 12:38 PM Re: HMDA bill passes House RR Joker
RR Becca Offline
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out of the frying pan...
Originally Posted By RR Joker
Now, if that is accurate...considering the reportable TYPES have changed...do we have to additionally account for loans that 'would have been' reportable under today's reporting waterfalls?

If you look at preceding years...then I would think it would be what was actually on the LAR the prior two years...but I'd hate to stake my life on that at the moment. At the same time, that would be the most reliable concrete record of originations. smirk


This is where I'm getting hung up. Our last two years' LARs have just over 400 entries each. BUT, if you look at the expanded coverage for consumer loans under the new rules, we're either going to be right at or over 500 for this year. So will we qualify as a 'small filer' or not? (Love that term, David!)
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#2185074 - 07/12/18 12:51 PM Re: HMDA bill passes House Truffle Royale
Dan Persfull Offline
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Bloomington, IN
I agree with Randy's logic but the regulation does not refer to covered loans. It refers to closed-end mortgage loans and open-end lines of credit. Each of those terms are defined in 1003.2 and then in 1003.3 the exemption from reporting those loans are outlined.

This kind of reminds me under the pre 2018 rules the confusion between what was a covered institution vs. what loans had to be reported if you were a covered institution. frown
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#2185173 - 07/12/18 06:25 PM Re: HMDA bill passes House Truffle Royale
David Dickinson Offline
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David Dickinson
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Central City, NE
Dan: I understand your point about the regulation not referring to covered loans, but 1003.2 does point to 1003.3 (the exemptions). To make this simple, here's the CFPB's flowchart for 2018 coverage. The last decision point on the left side (about 25 loans and 100 lines) has a footnote (#2). Footnote #2 tells you to look at the exemptions in 1003.3.

https://files.consumerfinance.gov/f/201510_cfpb_2018-hmda-institutional-coverage.pdf
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#2185187 - 07/12/18 07:00 PM Re: HMDA bill passes House Truffle Royale
Dan Persfull Offline
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Bloomington, IN
Thanks David. I haven't seen that particular chart.
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#2185188 - 07/12/18 07:01 PM Re: HMDA bill passes House Truffle Royale
RR Joker Offline
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It says that here as well, but I think the bigger question is does that mean for prior years [we are in transition for a couple years] do you have to additionally add those loans that were not on your LAR because during those years, they were not 'covered' loans. On the surface, literally, it would appear that you would have to account for those over and above your stated LAR. Just don't included non-originated 'covered' loans.

(v) Meets at least one of the following criteria:

(A) In each of the two preceding calendar years, originated at least 25 closed-end mortgage loans that are not excluded from this part pursuant to § 1003.3(c)(1) through (10) or (13); or

(B) In each of the two preceding calendar years, originated at least 500 open-end lines of credit that are not excluded from this part pursuant to § 1003.3(c)(1) through (10); and

So, if you take that into consideration, it would be loan originated that were also reportable.
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#2185190 - 07/12/18 07:09 PM Re: HMDA bill passes House Truffle Royale
Indy Banker Offline
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And I'm still back to my original question regarding the temporary - TOTAL - exemption from collecting data on LOC's until 2020 if you are under the 500 threshold.... Has that been superseded by the small filer provisions in the 2155 Bill? We are well under the 500 LOC threshold, so I'm going on the assumption that we are totally exempt from collecting until 2020, at which time we would start collecting data under the small filer provisions in 2155. I've seen comments and opinions to confirm that would be correct, but nothing official from any of the regulators....

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#2185199 - 07/12/18 07:43 PM Re: HMDA bill passes House Truffle Royale
David Dickinson Offline
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David Dickinson
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Central City, NE
Yo are correct. You are totally exempt from collecting on lines of credit until 2020. The 100 to 500 line of credit threshold was temporary (2 years) and put into place by the CFPB in Sept 2017. Technically, the CFPB could put the threshold back to 100 in 2020. If they did, the new Regulatory Relief law (2155) would require there to be a "small filer" provision for institutions that originate between 100-499 lines of credit.
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#2185200 - 07/12/18 07:43 PM Re: HMDA bill passes House Truffle Royale
David Dickinson Offline
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David Dickinson
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Central City, NE
But let's not worry about that for now. There could be a lot of changes between now and 2020.
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#2185204 - 07/12/18 08:11 PM Re: HMDA bill passes House Truffle Royale
Indy Banker Offline
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Indeed! Thanks David

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#2185216 - 07/12/18 08:58 PM Re: HMDA bill passes House Truffle Royale
SMQ, CRCM Offline
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Between the lines
To recap ----
To determine if bank is a small filer - count only covered loans reported on the LAR.
To determine if bank will report open-end LOCs, exempt until 1-1-2020 when threshold reverts back to 100 LOCs and you would start collecting data on applications taken on 1-1-2020 and report in 2021 under small filer if total LOCs is less than 500.

Whew, good work guys!!!!
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#2185232 - 07/12/18 10:30 PM Re: HMDA bill passes House Truffle Royale
David Dickinson Offline
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David Dickinson
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Central City, NE
SMQ - I agree, but let me caution you:
"count only covered loans reported on the LAR". The problem with this statement is the rules in 2016 and 2017 were different than they are now. Therefore, you can't look at the last 2 LARs to determine the 25/500 thresholds. You could build a SMART report and look at originated loans to determine which threshold you meet.
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#2187608 - 08/01/18 05:27 PM Re: HMDA bill passes House Truffle Royale
Indy Banker Offline
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Just when I thought I had this down, here comes the "stupid question of the day"...

If we originate over 500 covered closed-end loans, we report Closed End loans under the original 2018 rules;
If we originate less than 500 covered LOC's, (temporarily exempt from all reporting until 2021), we report LOC's under the "Small Filer" rules.

In other words, we can be a "Small Filer" for LOC's, but a normal filer for Closed End - correct? I saw some comments other places that suggested you are either considered a Small Filer for BOTH or NEITHER, but not one or the other....

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#2187625 - 08/01/18 06:37 PM Re: HMDA bill passes House Truffle Royale
Dan Persfull Offline
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Bloomington, IN
In other words, we can be a "Small Filer" for LOC's, but a normal filer for Closed End - correct?

Correct.

I saw some comments other places that suggested you are either considered a Small Filer for BOTH or NEITHER, but not one or the other...

I haven't seen that opinion expressed on BOL.
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#2187631 - 08/01/18 06:48 PM Re: HMDA bill passes House Truffle Royale
Adam Witmer Offline
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I agree with Dan that there are separate tests for open-end and closed-end. All the law appears to do, IMHO, is adjust the existing conditions for reporters - which are two separate tests.

I too have not seen that opinion expressed on BOL or anywhere else for that matter.
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#2187667 - 08/01/18 08:13 PM Re: HMDA bill passes House Truffle Royale
Indy Banker Offline
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No not on BOL either. I do have a publication from another compliance source that made it sound like the small filer designation was mutually exclusive, but I think it was just worded improperly. Thanks for confirming my understanding.

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#2187681 - 08/01/18 09:29 PM Re: HMDA bill passes House David Dickinson
ccman Offline
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David, to be clear, if we originated less than 500 closed-end mortgage loans (that are dwelling secured), we would be a "small filer".
Is that correct?

My take on S. 2155 is to exempt certain HMDA reportable loan data and relieve small filers from the burdensome reporting. S. 2155's limitation on originated closed end mortgage loans would not include just any closed end mortgage loan, otherwise, what would be the point of including originated loans that were not HMDA reportable to begin with.

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#2188034 - 08/03/18 08:43 PM Re: HMDA bill passes House Truffle Royale
David Dickinson Offline
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David Dickinson
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Central City, NE
ccman: You use the same 2018 coverage and exemption rules that are in place but only count originated loans. If between 25-499, you are still subject to HMDA, but a "small filer".
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#2188081 - 08/06/18 01:50 PM Re: HMDA bill passes House David Dickinson
ccman Offline
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Got it. Thank you.

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#2188455 - 08/08/18 07:00 PM Re: HMDA bill passes House Truffle Royale
dkcook Offline
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As much as I can tell we are still a HMDA reporter as a small filer - the future will no doubt continue to change and I have read until my head hurts. It seems as if the only data changing from 2017 data is possibly the age and maybe the rate spread. But if there is more, no worries we will figure it out, but for now I will continue to collect 2018 data until further clarification.

I will then insert a code or hopefully my software will be able to recognize us as a small filer and automatically populate codes where needed. We are no where close to 500 for the LOC's so I am not worrying about that now - as someone stated a lot can happen between now and then.

I will continue to operate as a small filer until something changes (we buy more branches). and that is very possible.

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#2193166 - 09/19/18 10:46 PM Re: HMDA bill passes House Truffle Royale
TaraTLR Offline
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I just found this in the Partial Exemptions from the Requirements of the HMDA under the EGRRCPA.

The rule clarifies that insured depository institutions and insured credit unions covered by
a partial exemption have the option of reporting exempt data fields as long as they report all data
fields within any exempt data point for which they report data; clarifies that only loans and lines
of credit that are otherwise HMDA reportable count toward the thresholds for the partial
exemptions;

Hope that helps to answer the question on which loans you count towards the threshold.

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#2193931 - 09/26/18 10:37 PM Re: HMDA bill passes House Truffle Royale
GTS333 Offline
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Important Question - Is the new partial exemption only an exemption us from having to report the full HMDA data set to the Bureau every year, or does it also mean we don't need to COLLECT those additional data points from the borrowers as well? I assumed it covered both data collection and reporting (otherwise what's the real value to us), but I can't find support for that view anywhere.
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