We are purchasing a pool of mortgage secured loans which will be placed on our HMDA LAR as Action = Purchased. Does anyone have experience on whether or not Purchased Loans are subject to Fair Lending..The ECOA Official Staff Commentary states:

Section 1002.1—Authority, Scope, and Purpose
1(a) Authority and scope.
1. Scope. ...If a transaction provides for the deferral of the payment of a debt, it is credit covered by Regulation B ...Further, the definition of creditor is not restricted to the party or person to whom the obligation is initially payable, as is the case under Regulation Z…

We did not have any involvement in the original underwriting of these loans from a decision or pricing aspect but we will perform due dilligence prior to purchase.

Thanks for the help!

If they are found to be predatory or have other fair lending issues, it can affect your CRA rating, aside from any other fair lending risks.

Just ask the banks that have suffered fair lending settlements through their dealer papers purchases. Anything is possible these days.