We are not a HMDA reportable bank. So Reg. B states only GMI is to be collected for purchase or refi of a PRIMARY dwelling. We sell loans to secondary market.

For loans that are not for a PRIMARY dwelling, GMI is not collected ie: vacation home/second home An investor is refusing to buy an investment property vacation home loan stating that GMI was not collected and they are REQUIRED to report that information regardless of it being primary or secondary home.

So we are in a bad situation. We will get written up for collecting the information as a violation to Reg. B, but we cannot sell the loan because they state they are REQUIRED to collect and report it when they purchase the loan.

What do we do?

Are they making the credit decision?

No, our underwriter makes the decision. Then they are purchasing the loan after it has closed on our books. Seems to me they would code it as N/A for purchased loan.

If the loan is not purchased, it just stays on our our books as a portfolio loan. It is closed with the intent to sell, but all ours in decision making. As of 2022 our bank will be HMDA reportable and we will be reporting these as originations on our LAR and Purchaser as 6 for a commercial bank

You say that you are going to be a HMDA reporter next year? Why, because of exceeding the loan volume threshold for the second year?

Yes.

Then you can collect this year and solve your issue.

1002.5(a)(iv) A creditor that exceeded an applicable loan volume threshold in the first year of the two-year threshold period provided in 12 CFR 1003.2(g), 1003.3(c)(11), or 1003.3(c)(12) may, in the second year, collect information regarding the ethnicity, race, and sex of an applicant for a loan that would otherwise be a covered loan under 12 CFR 1003.2(e) if the loan were not excluded by 12 CFR 1003.3(c)(11) or (12);

Thank you so much! You guys are the best!