Our bank is not HMDA reportable. I thought that we would only need to collect government monitoring information on loans based on the requirements of Reg. B. But internal review has stated that we should be collecting monitoring information for loans that would fall under HMDA even though we do not report. Is this correct?

NO, NO, NO. If you're not subject to HMDA, do not collect GMI under HMDA. To do so would be a MAJOR violation of Reg B. Reg B actually prohibits you from requesting GMI [§202.5(b)]. The only exception is §202.13 and HMDA (if your bank is subject to it). However, if you go outside of these exceptions, you are in violation of §202.5(b).

Did I say "NO, NO, NO"?

I've tried to search for this answer, but can someone tell me if I have the GMI rules correct or if this is overly simplified?

1. We are a HMDA reporter.
2. We collect GMI for any dwelling related loan applications.
3. We do NOT collect GMI for any non-dwelling related loan applications.

Am I missing some major complications of Reg B?

#2. HELOCs are optional for HMDA reporting (line of credit). If you don't report HELOCs, then you should not collect GMI even though this is a dwelling related loan.

You also would not collect GMI for a cash out equity loan where the proceeds were not being used for a home purchase, home improvement or refinancing.

So to answer your question, yes you have oversimplified.

Back to Sarah Ann - Be mindful of "piggy back" HELOCs. You should be collecting GMI on these loans if you are not a HMDA reporter.

Thanks to everyone, I'm learning my GMI rules, finally. Can someone help me with this one:

Two individuals apply to purchase a multifamily, NOO property, we collect GMI. Before closing, they decide to hold property in an LLC, so the borrower is now the LLC, and the individuals are guarantors.

Am I correct, that while we are not supposed to collect GMI for guarantors, in this case, this would be an acceptable reason why we have the GMI info on the original application?

Document the file to show why you collected the GMI and you should be fine.

Collecting GMI when you are not supposed to is a violation but generally an isolated incident wouldn't be cited. What would be cited is a pattern or practice of collecting the data when it isn't required. Lois tip to document why and move on is a good one.