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#2263729 - 12/16/21 07:06 PM CRA action dates on backdated loans at year end
RegTalk Offline
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I do believe this has been asked before but I cant find the thread.

We have a loan that closed on Jan 2021- however, the loan was backdated to November 2020 (its true renewal date). So the Note date does read Nov 2020 even though it was closed in Jan 2021. Its currently listed on the LAR with an action date of Jan 2021, I was advised (by my bank) to go with the 2021 date, but I don't feel that's correct. Should this file be removed from the 2021 LAR?
Thank you!

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#2263794 - 12/20/21 04:29 PM Re: CRA action dates on backdated loans at year end RegTalk
rlcarey Online
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IMHO - The loan was renewed in January 2021 regardless of when that renewal was effective dated.
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#2263923 - 12/22/21 03:13 PM Re: CRA action dates on backdated loans at year end RegTalk
RegTalk Offline
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Thanks @ rlcarey. My next concern would be how do you battle the finding when you use the note to back up your date-- Could I show the actual booking date to back it up?

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#2263927 - 12/22/21 03:33 PM Re: CRA action dates on backdated loans at year end RegTalk
rlcarey Online
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Does your borrower not date the actual date of their signature on the legal documents? I am sure that you also have plenty of other approval documentation, records of when the document were prepared, etc. to prove when the transaction happened.
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#2263936 - 12/22/21 05:32 PM Re: CRA action dates on backdated loans at year end RegTalk
Andy_Z Offline
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I would also go with the 2021 date as that was consummation (defining it as the signing and date of obligation). Expanding on this, any TRID disclosures (assuming its consumer) made in January 2021 at closing were not dated Nov 2020, I assume. They were not delivered months before.

If you were to use the 2020 year you would have to file an amended 2020 LAR. Enough of those and the agencies could see the need to re-do the tables and analysis for an extended period of time beyond the LAR filing date. I don't see that as reasonable.
Last edited by Andy_Z; 12/22/21 05:38 PM.
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#2263939 - 12/22/21 05:38 PM Re: CRA action dates on backdated loans at year end RegTalk
rlcarey Online
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Well maybe I misread this and was concentrating on the title of this thread, which is CRA action date and not HMDA. A modification or renewal, unless it was done as a true refinance, it would not even be reported under HMDA. If this is a consumer loan and a refinance, you cannot backdate a consumer loan that is disclosable under TRID.

I assumed this was a CRA question.
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#2263940 - 12/22/21 05:41 PM Re: CRA action dates on backdated loans at year end RegTalk
Andy_Z Offline
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My error. I read the question, went onto another task and came back and had HMDA on the brain. Same thought though, if it's on a LAR you'd follow the consummation date, not the back-dated date.
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#2264009 - 12/24/21 12:16 AM Re: CRA action dates on backdated loans at year end RegTalk
Len S Offline
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The wording here is confusing. I assume you are speaking of small business loans. If you are speaking of a "renewal" there would be no new note. A renewal is simply an extension of the maturity date of an existing note. If you are refinancing then a new note would be issued and the old note paid off in full. Why was the note backdated?
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#2264119 - 12/30/21 04:42 AM Re: CRA action dates on backdated loans at year end RegTalk
Len S Offline
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BTW the date a CRA activity is considered as qualified is when a legally binding commitment is made to lend or invest.
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#2264335 - 01/05/22 08:21 PM Re: CRA action dates on backdated loans at year end RegTalk
Niesey Offline
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I have the same issue. I have modifications that have the date of the modification as well as an effective date. Sometimes, there can be up to six months between these dates and as we near year end and submission, there's a risk that there are loans not reported on either LAR. For example, the modification is dated 2/12/2021 with an effective date of 10/1/2020 and we don't receive it back from the customer to key into our system until 3/15/2021. I'd like to get a better understanding of the correct date to use as well as what the risk of under-reporting is and if there is any additional guidance on what requires resubmission.

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#2264377 - 01/06/22 05:07 PM Re: CRA action dates on backdated loans at year end RegTalk
rlcarey Online
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I would be more concerned with how all of these loans are impacting your past-due reports and loan loss allowances. This is all just sloppy business on the heads of the loan officers. I suggest you visit with management and the board and crack down on these late renewals and fix the problem rather than concentrating on the symptoms.
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#2264769 - 01/14/22 03:54 PM Re: CRA action dates on backdated loans at year end rlcarey
RegTalk Offline
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I agree & I have brought this up several time but it doesn't change. I still have to determine what date to use and if its on the LAR or not. In the CRA reporting guide, I don't see anything about action dates or consummation dates. Can someone point this out to me if I have overlooked it?

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#2264775 - 01/14/22 05:17 PM Re: CRA action dates on backdated loans at year end RegTalk
rlcarey Online
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You are correct that there is no guidance. Choose one way or the other and then stay consistent or call your regulator and ask them - of course that might open the can of worms, which might not be a bad idea if your management is lazy.
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#2264787 - 01/14/22 06:52 PM Re: CRA action dates on backdated loans at year end RegTalk
RegTalk Offline
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Thank you rlcarey!

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