We are no longer a HMDA reporter, due to the loan threshold changes formalized in April. I know I'm a little behind on this (thank you PPP loans), but I'm needing to let staff know about the change. Since we are no longer HMDA reporting, do we need to (CAN WE?) change back to the old GMI form that did not contain all the "extra" fields they added a few years back?

Great question and, fortunately, you aren't really behind at this point - it's a long explanation, but in short, Reg B gives you a transition period to switch from being a HMDA reporter to collecting data under Regulation B.

As far as your question, I want to address two separate things. You asked about using the "old GMI form", but I think it is also important to point out that eventually, you will (most likely) want to transition to the collection requirements under Reg B, which means you will need to change the types of loans you actually collect GMI for, or you will be violating Reg B.

Starting with your question about using the old GMI form, I assume you are asking whether it is okay to no longer collect the "subcategory" information for ethnicity and race - for example, the "Hispanic or Latino" category has four subcategories: Mexican; Puerto Rican; Cuban; and Other Hispanic or Latino. As you are no longer a HMDA reporter subject to Regulation C requirements, you can transition to being a Reg B data collector. Specifically, 1002.13(a)(i) of Reg B says that you must collect ethnicity and race using either A) the aggregate categories, or B) the categories and subcategories required under HMDA rules. In simple terms, You have the choice to continue collecting the subcategory information OR, you can go back to the "old GMI form" if you want. The bottom line is that Reg B gives you the choice.

Now for my second point. As a newly exempt HMDA reporter, you essentially have three options 1) to voluntarily report HMDA going forward, 2) keep collecting DI under HMDA temporarily, or 3) transition to GMI collection under Reg B. For the first two options (and option 2 is a max of five years), you can continue to collect DI for the types of loans covered under Reg C. The trick here is that Reg B has different rules on which loans must collect GMI, meaning that some loans you collected DI for under HMDA would be considered a violation if you collected GMI for them under Reg B. For example, Reg B only requires GMI to be collected only if an application relates to a dwelling that is or will be occupied by the applicant as the principal residence. As you know, HMDA requires the reporting of second homes and (some) investment properties. Under Reg B, you don't collect GMI unless it is to be occupied as a primary residence - and if you do collect the information, it is a violation of Reg B and could be a fair lending issue. So, my point here is that, unless you plan to again be subject to HMDA rules (within 5 years) or plan to voluntarily report (under option 1 above), you will need to transition to Reg B rules which are actually quite different than HMDA rules.

So the bottom line is this: You need to decide if and when you are going to transition to Reg B data collection and then, you can decide if you want to just use the old GMI form (and just collect the categories of information) or if you want to continue using the new DI form (and collect both the categories and subcategories of information).

I hope that answers your question(s) as I know this is a very complex topic (as I spent over an hour in my training video explaining everything related to transitioning from HMDA to Reg B).

This absolutely answered my questions, thank you so much!
We are primarily a commercial bank, so I look forward to transitioning to the Reg B collection requirements, as it will be on significantly fewer loans. Thanks!!

Can someone clarify if the data collection under Regulation B is only consumer purpose loans or would a commercial loan to a natural person being refinanced that is secured by their primary residence be included?

This is from Regulation B:

(a) Information to be requested. (1) A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling, shall request as part of the application the following information regarding the applicant(s):

So the "refinance" is that broad, it does not have to be the refinance of a purchase money loan?

I looked for the definition of 'refinance' within Regulation B; however I couldn't find it. I will tell you that if you refinance a HELOC secured by the borrower's principal dwelling the bank needs to collect the DMI. Worked for a bank that was cited for that many years ago.

From the OSI to 1002.13(a)

6. Refinancings. A refinancing occurs when an existing obligation is satisfied and replaced by a new obligation undertaken by the same borrower. A creditor that receives an application to refinance an existing extension of credit made by that creditor for the purchase of the applicant's dwelling may request the monitoring information again but is not required to do so if it was obtained in the earlier transaction.

Thanks for adding that Dan - totally didn't think to look there.

Sorry, but the HMDA relief is not as great as I expected.

So, the key is the "primary residence" of the "applicant", who is a natural person, is purchased or refinanced by a loan secured by that 1-4 family residence.

Interim construction is not subject, but other "temporary" financing if it passes the first test needs to have information collected.

We are a non-HMDA reporting bank. If the primary borrower is a living trust (property is in the name of the living trust), and the co-borrower is the trustee for the living trust and signing as an individual. The loan is a refinance, and the property is the co-borrowers primary residence. Would we collect monitoring information on the co-borrower since they are a natural person, even though the primary borrower is not a natural person?

I am updating our ECOA monitoring information collection form, do I need to collect age or date of birth (ie. 20 or 10/27/2000)?