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#2267490 - 03/10/22 09:46 PM HMDA - Action Taken Date - YE Originations
Help! Compliance Offline
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Joined: Oct 2012
Posts: 143
San Antonio, TX
When I read the last sentence of the originations Action Taken Date commentary (in red below), am I correct in saying the initial disbursement date usage allowance does not apply to those loans originated/closed at YE, but they initially disburse the following year? We must use the closing date in these cases…??? We have always reported the initial disbursement date for all reportable HMDA originations, with the exception of 1x closes whose initial disbursement can be delayed. Meaning, if a loan closed on 12/30/2021, but didn’t disburse until 01/04/2022, we report the Action Taken Date as 01/04/2022…but the commentary makes me think we had to report 12/30/2021.

Either way, we have never been called out on this, but I believe it further motivates me to begin exclusively using the closing/account opened date. Your thoughts?

Comment 4(a)(8)(ii)-5

5. Action taken date - originations. For covered loan originations, including a preapproval request that leads to an origination by the financial institution, an institution generally reports the closing or account opening date. For covered loan originations that an institution acquires from a party that initially received the application, the institution reports either the closing or account opening date, or the date the institution acquired the covered loan from the party that initially received the application. If the disbursement of funds takes place on a date later than the closing or account opening date, the institution may use the date of initial disbursement. For a construction/permanent covered loan, the institution reports either the closing or account opening date, or the date the covered loan converts to the permanent financing. Although an institution need not choose the same approach for its entire HMDA submission, it should be generally consistent (such as by routinely using one approach within a particular division of the institution or for a category of covered loans). Notwithstanding this flexibility regarding the use of the closing or account opening date in connection with reporting the date action was taken, the institution must report the origination as occurring in the year in which the origination goes to closing or the account is opened.
Last edited by pp1865; 03/10/22 09:47 PM.
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#2267491 - 03/10/22 09:50 PM Re: HMDA - Action Taken Date - YE Originations Help! Compliance
raitchjay Online
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Joined: Oct 2009
Posts: 9,086
OK
Yes, you must report loans in the year they orginate. This is one reason that i have always used the loan date for the action taken date. It's really just simpler, IMHO.
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#2267515 - 03/11/22 03:59 PM Re: HMDA - Action Taken Date - YE Originations Help! Compliance
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,658
I agree with raitchjay. It's just easier to ignore the disbursement option and consistently just use the origination date. Otherwise, year end becomes a mess.
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All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2267549 - 03/11/22 07:47 PM Re: HMDA - Action Taken Date - YE Originations Help! Compliance
Truffle Royale Offline

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Joined: Jul 2003
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Closing date/note date is just the easiest thing to use. No one has to worry about is this a construction loan or whatever. Makes it easier on everyone that is charged with entering data to just use the same date for every loan. KISS works!

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