If we receive a real estate package from a company who has done all the processing work, disclosures, etc., and the only thing really left for us to do is close the loan, do we use the date of application received for HMDA purposes as the date we receive the file at our bank or the date the other company receives the application from the customer?

Ok, like I'm confused just re-reading my question...

Unless part of 'closing the loan' is making the underwriting decision, you're not reporting this to HMDA at all. Whoever makes the underwriting decision reports to HMDA.

We do underwrite, approve and then close the loan.

That doesn't make sense. You said all you had left to do was close the loan. Who gets the application and makes the credit decision? If it is you then you report, using the date of the initial application. If it is the other company, then they report.

KC, I disagree based solely on what the Feds and my FI have worked out to do here.

If you're not acting as a front line bank, you have to adapt in order to meet all the deadlines (3 day for disclosure and 30 day for underwriting.)

We use the date the application is received in house as the application date. You must make sure you have a consistant written procedure for identifying your receipt date. For us, we date stamp every application as it comes in. All the clocks start ticking then.

KC is dead on tho, as far as the underwriting goes. If you're making the decision, you report for HMDA for every application you receive whether you close it or not.

Here is a section from Reg C commentary that may help if you consider this loan a brokered loan that you made the credit decision on. I think you actually have a choice of options, but you must remain consistent with your choice and it should be written in your HMDA procedures. Also you should be able to easily identify the date you have opted to use, such as a date stamp when application received...

Paragraph 4(a)(1) Application number and application date.

2. Application date—application forwarded by a broker. For an application forwarded by a broker, an institution reports the date the application was received by the broker, the date the application was received by the institution, or the date shown
on the application. 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 loans).

KC - I'm sorry I didn't speak plain and specific...it is totally my fault. We do receive these applications from a broker. We do underwrite the loan and make the credit decision, close the loan and retain it in house.

PJL - thank you for that I've read so much of that commentary that I guess it had not actually computed what it was saying. But now that you've posted it as such...makes perfect sense. We have been doing exactly like Truffle Royale has been doing, but some questions have been raised about it, so wanted to be certain we were correct.

Thanks so much everybody!

kaytee, thanks for the clarification. Sounds like you do have it down.