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#339143 - 03/28/05 03:20 PM HMDA-again
Anonymous
Unregistered

Hi-

Another question on HMDA. I identified some loans that weren't reported on the LAR before submission. They (loan people) are in the process of correcting and re-sending.
Is it considered a violation of law because the loans were not reported on the LAR withing 30 days of the "Action Taken" date?

Any info is appreciated.

Jenny

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Lending Compliance
#339144 - 03/28/05 04:05 PM Re: HMDA-again
JSD Offline
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USA
Jenny, It is to be on your LAR within thirty days of the calendar quarter that the action was taken. So if a loan had an action taken any time in the first 3 months of this year - it would need to be on the LAR by at least thirty days after March ended.

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#339145 - 03/28/05 04:15 PM Re: HMDA-again
J2C Offline
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Big Brother knows and that's a...
Thanks for the clairification. Looks like I have a violation to report.
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#339146 - 03/28/05 04:33 PM Re: HMDA-again
Dan Persfull Offline
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Posts: 47,528
Bloomington, IN
If you are FDIC regulated, it must be on your LAR within 30 days from the final action taken date.
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#339147 - 03/28/05 05:07 PM Re: HMDA-again
Truffle Royale Offline

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  • 1) So how do you define "on your LAR"?
    I can produce a LAR off my loan software at any time. Every quarter I download the LAR to the HMDA software. My examiners seemed to think this was ok.
  • 2) And what(if any) violation would/should be reported and how? Missing a loan on the LAR would not be a reportable violation, would it? If it were a precedural error that resulted in a number of loans being missed I could understand it. But if an odd loan or two were missed due to simple human error, is that a violation?

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#339148 - 03/28/05 05:22 PM Re: HMDA-again
swiggles Offline
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swiggles
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Quote:

If you are FDIC regulated, it must be on your LAR within 30 days from the final action taken date.




My bank is regulated by the FDIC. Call me ignorant, but where can I find your comment in writing? I, too, thought it was 30 days after the calendar quarter. I don't have a problem, because our data is downloaded from our mainframe system into our HMDA software monthly, but I'd still be interested in knowing where this comes from.
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#339149 - 03/28/05 05:26 PM Re: HMDA-again
TomS Offline
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Joined: Jan 2004
Posts: 317
USA
A number of years ago the FDIC required a loan to be added to the LAR within 30 days of the action taken date. I don't have the exact date, but the FDIC subsequently changed that requirement to coincide with the other regulators, i.e., the LAR must be updated within 30 days of each calendar quarter. Look to Part 338.8 of the FDIC's rules and regs, which requires banks to "maintain, update and report such LAR in accordance with Regulation C."
Last edited by Lee S; 03/28/05 05:29 PM.
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#339150 - 03/28/05 05:50 PM Re: HMDA-again
Dan Persfull Offline
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Dan Persfull
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Posts: 47,528
Bloomington, IN
I apologize - apparently this requirement was repealed in in the Federal Register / Vol. 62, No. 129 / Monday, July 7, 1997 / Rules and Regulations.

That was about the time I was "let go" in a downsizing with a previous bank and I was out of compliance until March 2000.

This is just a change I missed, again I apologize. (Although it will make my mortgage people happier - that is if I decide to tell them. )
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#339151 - 03/28/05 07:02 PM Re: HMDA-again
swiggles Offline
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Quote:

........it will make my mortgage people happier - that is if I decide to tell them.




Ha, you're saying......If it ain't broke, as is, don't fix it? I agree. Fixing something that ain't broke, by giving too much information, can sometimes break it.
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#339152 - 03/28/05 07:18 PM Re: HMDA-again
Anonymous
Unregistered

Quote:

  • 1) So how do you define "on your LAR"?
    I can produce a LAR off my loan software at any time. Every quarter I download the LAR to the HMDA software. My examiners seemed to think this was ok.
  • 2) And what(if any) violation would/should be reported and how? Missing a loan on the LAR would not be a reportable violation, would it? If it were a precedural error that resulted in a number of loans being missed I could understand it. But if an odd loan or two were missed due to simple human error, is that a violation?





First I should start out by saying..I am the auditor, and I am doing the HMDA audit. Our loans have to be input to our LAR software. Somehow, 11 were missed when we only originated 12 (Home Improvements)I am pretty sure I am safe saying it is a violation when only 1 made it to the LAR. Does that qualify as a violation? In the audit world of reporting I think it does. It wasn't human error- there are procedures, which they have. They just didn't do it- probably because we don't have very many HI loans....

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#339153 - 03/28/05 07:36 PM Re: HMDA-again
Dan Persfull Offline
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Dan Persfull
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Posts: 47,528
Bloomington, IN
Were these loans unsecured, and if they were, were they classified as HI loans? Unsecured, or non-dwelling secured loans must be both for HI purposes AND classified as HI loans to be reportable.

Otherwise, IMO, you do have a reporting violation.
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#339154 - 03/28/05 11:06 PM Re: HMDA-again
CRAatBOK Offline

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Joined: Mar 2004
Posts: 6,172
Further South than I wanna be.
Question on the 30 days after quarter end. Say we do a loan March 28th and it misses the down load for some reason (someone forgot to put the code in) and by the time we find it and get it on the LAR, it is May 2nd. I have a violation? If that same loan was dated in January and got put on in the same time period, there would be no violation? Seems like that is a little unfair (ok, I know it is a regulation and not meant to be fair or make sense, just commenting).

Also, is putting it on the LAR all that is required? Do you have to have all the info correct to make it a non violation? Just think of all those loans you are still messing with in February to get on the year-end report. My oh My the violations.
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#339155 - 03/29/05 12:12 AM Re: HMDA-again
Andy_Z Offline
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This is nothing new and "C" is pretty clear on this.

12 CFR ยง203.4 All reportable transactions shall be recorded, within thirty calendar days after the end of the calendar quarter in which final action is taken (such as origination or purchase of a loan, or denial or withdrawal of an application), on a register in the format prescribed in Appendix A of this part. The data recorded shall include the following items:

(1) An identifying number for the loan or loan application, and the date the application was received.

(2) The type of loan or application.

(3) The purpose of the loan or application.

(4) Whether the application is a request for preapproval and whether it resulted in a denial or in an origination.

(5) The property type to which the loan or application relates.

(6) The owner-occupancy status of the property to which the loan or application relates.

(7) The amount of the loan or the amount applied for.

(8) The type of action taken, and the date.

(9) The location of the property to which the loan or application relates, by MSA or by Metropolitan Division, by state, by county, and by census tract, if the institution has a home or branch office in that MSA or Metropolitan Division.

(10) The ethnicity, race, and sex of the applicant or borrower, and the gross annual income relied on in processing the application.

(11) The type of entity purchasing a loan that the institution originates or purchases and then sells within the same calendar year (this information need not be included in quarterly updates).

(12) For originated loans subject to Regulation Z, 12 CFR part 226, the difference between the loan's annual percentage rate (APR) and the yield on Treasury securities having comparable periods of maturity, if that difference is equal to or greater than 3 percentage points for loans secured by a first lien on a dwelling, or equal to or greater than 5 percentage points for loans secured by a subordinate lien on a dwelling. The lender shall use the yield on Treasury securities as of the 15th day of the preceding month if the rate is set between the 1st and the 14th day of the month and as of the 15th day of the current month if the rate is set on or after the 15th day, as prescribed in appendix A to this part.

(13) Whether the loan is subject to the Home Ownership and Equity Protection Act of 1994.

(14) The lien status of the loan or application (first lien, subordinate lien, or not secured by a lien on a dwelling).
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#339156 - 03/29/05 02:54 PM Re: HMDA-again
Truffle Royale Offline

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Regarding the violation part of this - can someone explain this to me or point me to a site that discusses this? Are financial institutions suppossed to police themselves and report violations? We scrub and correct and scrub again but sometimes a single human error will show up. Is this a violation? Am I wrong in thinking that only examiners can cite violations? Or are we just using the term "in violation" to explain the seriousness of not following the rules.

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#339157 - 03/29/05 03:24 PM Re: HMDA-again
hmdagal Offline
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I thought it was from an audit point of view. If that is the case, it would show as a violation on the audit report.

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#339158 - 03/29/05 08:10 PM Re: HMDA-again
Anonymous
Unregistered

Quote:

I thought it was from an audit point of view. If that is the case, it would show as a violation on the audit report.




You are correct, it is from the audit point of view. A violation of law is considered a major finding at our institution. Does that make sense?

These are loans that were booked in the beginning of 2004, and not reported. They were not detected until I did the audit.

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