This year will be our fist year with 100 originations, if we make 100 in 2022, will I need to start collecting in 2023 and report In 2024?

Thank you,

Yes, you will become a "depository financial institution" once you have two prior years over 100 closed-end mortgage loans. So 100 in 2021 and 100 in 2022 will require you to collect in 2023 and report (for 2023) in 2024.

This HMDA Institution flow chart may help: https://files.consumerfinance.gov/f/documents/cfpb_2022-hmda-insitutional-coverage_03-2021.pdf

And if you know you are going to go over the threshold again in 2022 and if you want to teach your people how to collect the information properly before January 1, 2023, you are free to start collecting the demographic information anytime starting in 2022. Regulation B will allow it.


1002.5(a)(4)(iv) A creditor that exceeded an applicable loan volume threshold in the first year of the two-year threshold period provided in 12 CFR 1003.2(g), 1003.3(c)(11), or 1003.3(c)(12) may, in the second year, collect information regarding the ethnicity, race, and sex of an applicant for a loan that would otherwise be a covered loan under 12 CFR 1003.2(e) if the loan were not excluded by 12 CFR 1003.3(c)(11) or (12);

Thank you and enjoy the weekend!

Good morning,

I have another quesitons for the threshold amount I count the originations and purchase loans?

Thanks,

LC, the flowchart Adam referenced shows:

Did the institution originate at least:
§ 100 closed-end mortgage loans in each of the two preceding calendar years; or
§ 200 open-end lines of credit in each of the two preceding calendar years?

A purchase is not an origination. (Origination action code = 1) Purchase is Action Code 6

Thank you, that part I got. Let's say I have in 2021 105 originations and in 2020 I had 70 originationa and 40 purchase loans, that would equal to 110 for the second year for the threshold amount, correct? 2020- 105 and 2021 -110. This would mean that if in 2022 we make 100 we report in 2023.

Just clarifying that loans purchased are also in the math.

Thanks,

2021 105 originations
2020 70 originations

A purchased loan is not an origination for yourselves. It's an origination of the lender who made the underwriting decision and funded the loan that you bought. Some regulators do not even consider purchased loans in their redlining analysis.

Correct, but you have to consider them for you threshold calculation to determine if you report HMDA that year or not.

You count ORIGINATIONS
A purchase is NOT an origination, it is a purchase - different HMDA category. NO, you do not count it.
(Sorry, thought the above was very clear.)

If you go back to the regulation itself, at § 1003.2(g)(1)(v), you find:

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

(A) In each of the two preceding calendar years, originated at least 100 closed-end mortgage loans that are not excluded from this part pursuant to § 1003.3(c)(1) through (10) or (c)(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

"
Editor's Note:
Effective January 1, 2022, paragraph (g)(1)(v)(B) is amended to read: "

(B) In each of the two preceding calendar years, originated at least 200 open-end lines of credit that are not excluded from this part pursuant to § 1003.3(c)(1) through (10); and


"Originate" and "purchase" mean two different things. If the Bureau wanted you to include purchases in that count toward the threshold, they would have explicitly said "originated and/or purchased."