How are other's collecting the GMI on Commercial loans? Our commercial applications do not have the GMI portion like a 1003 does, so how are other bank's collecting this information on a commercial application? We have very few commercial properties that are subject to HMDA, but curious how other's do this for their commercial applications?

We use a stand-alone supplemental GMI form.

Thanks Raitchjay. Just needing a little clarification. When an application comes in for a commercial property, at what point do you give this supplemental form? That is the hard part for us, as a lot of times it is not clear if it is HMDA reportable at that point until after the fact when it is reviewed and determined that it will in fact be HMDA reportable, so at what point and how do you give that supplemental form?

First, we also recommend a "short collection form" for the situations you describe. It's basically a piece of paper with the GMI collection only (and the disclaimer, of course).

It is supposed to be collected "at application". Your comments point out something many banks struggle with. It also illustrates the need for training on what is an application. LO's need to be trained over and over on "applications" and GMI collection.

We also use a short form. The key is training for the lenders. The only thing commercial lenders need to know about HMDA is 1) to recognize a HMDA-reportable loan, 2) when GMI is required, and 3) how to complete the GMI form properly. It is essential that they know it must be done at application time, however they define that. Remind them that, if the customer backs out or the credit is turned down, the GMI is still needed and is pretty difficult to get, at that point.

I can't wait for the new HMDA rule!

We do what David suggested.

And what "disclaimer" is required? Are you meaning the information that is on the 1003

"The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the particular type of loan applied for.)
BORROWER I do not wish to furnish this information"

Also, what happens if we do not give this supplemental form to the borrowers and instead the loan officer completes it every time for the borrowers?

Yes, that is the disclaimer.

You are required to give the applicants the opportunity to complete the government monitoring information. If the borrower's do not wish to provide the information, and the application process was in person, the loan officer then will fill out the GMI based on visual observation or surname. It is a violation of HMDA to not give the applicants the opportunity to complete the GMI. See Appendix B to HMDA for more info.

Thanks everyone.

What if your borrower is an entity? Do you collect GMI on the principals or do you put N/A? Where can I find information on this in the rule, HMDA Guide to Getting it Right or elsewhere?

Thanks in advance.

7. You must report that the requirement to report the applicant's or co-applicant's ethnicity, race, and sex is not applicable when the applicant or co-applicant is not a natural person (for example, a corporation, partnership, or trust). For example, for a transaction involving a trust, you must report that the requirement to report the applicant's ethnicity, race, and sex is not applicable if the trust is the applicant. On the other hand, if the applicant is a natural person, and is the beneficiary of a trust, you must report the applicant's ethnicity, race, and sex.

That's from Appendix B.