Being exempt from HMDA reporting under Reg C does not make you exempt from ECOA under Reg B. Furthermore, ECOA is very specific about when you must collect GMI, and when you may not collect GMI. Blanket collecting on all HELOCs will - as you suspected - result in exceptions to ECOA when you collect in error.
Last edited by mtngrrl; 10/27/23 05:37 PM.
Q1: In our shop, if we have knowledge that the funds will be used for purchase or refi, we will collect the information, even if that knowledge comes after the initial application. We do have a separate form available to collect the information for times when it applies to a product that doesn't normally need it. Even our commercial lenders need it occasionally, because a borrower might use business resources to collateralize a loan for a primary residence.
Q2: If the loan is to finance a new principal dwelling, then we collect the information. (Edited to add: Dan said he wouldn't allow this; in our shop, using a HELOC to finance purchase of a new principal dwelling is rare, but it has happened, and we have to be savvy enough to catch it. We don't offer a bridge product.)
Q3: In our shop, if a customer requests an increase, we increase the line; it's not replaced with a new loan, so we wouldn't treat it as a refi. I can't answer this one for you.
I don't claim to be a guru, but we navigate through the non-HMDA world, so I'm providing you with my perspective.
Edited to add: Dan beat me to it, and with different answers, so there you go. He IS a guru.
Be kind; everyone you meet is fighting a hard battle.
--all opinions are my own--