That section IMO addresses how the transaction is reported by the FI and reiterates the FI that makes the credit decision reports the transaction. It even specifies that FI B purchased the loan from FI A. If FI B purchased the loan then how did they originate it?

If you are saying if we close loans in our bank's name and sell it we're not the originating lender then I can't agree with that and I don't think a court of law would see it that way either if the borrower brought a claim against us as the lender since the loan documents are going to have our name on them.

I think you are saying if the loan is not one that would be reported by the FI on their LAR then it does not count as an origination. Before I excluded such a loan originated in the bank's name I would want the blessing of my regulator.

Dan,

I have to side with David on this one. To determine origination thresholds you would only use originations that would have landed on your own LAR.

Comments 4(a)-2 through -4 discuss whether activities with respect to a particular closed-end mortgage loan or open-end line of credit constitute an origination for purposes of § 1003.2(g).

I will then humbly stand corrected.

Thanks David and Randy for clarifying this requirement.

This is exactly why discussing things here is such a benefit to all of us. I have been "humbly corrected" many times.

I need help with the counting game and how it works please. We are close and I will have to monitor to check our continued exemption.
In 2018, we had 86 originations. 2019 - 85 originations. So I understand we will be exempt as of 7/1/20.
So for data collection beginning 2021, I will look at originations for 2020 and 2019. And only one of those years have to be below 100 to continue the exemption, right?
And I will continue that pattern...in 2022, I will look back to 2021 & 2020, and only one year has to be less than 100 to be exempt?

Sorry if this sounds stupid. With only a 15 loan cushion, I feel like we could be non-exempt at any time.

Based on what you've shared, yes, you will be exempt on 7/1/20. And, since your 2019 originations were at 85, you'll also be exempt in 2021 (2020 data won't matter because you were below 100 in 2019). 2022 will be dependent on TBD 2020 and 2021 data. If you are under 100 originations in either, you'll continue to be exempt and you 'll continue that game going forward, look back 2 years, if under 100 in either you're out, 100 or more in each, you're in. I also agree with your take, since you only have a small cushion, you'll want to continue to track your originations.

Good afternoon! We are also newly excluded. Would some of you other NE institutions be willing share communications that you sent out to your bank staff?