Reporting HOEPA Status

If it is in our loan policy that we will not make HOEPA loans, would that justify reporting all of our HMDA loans as NA in the HOEPA Status data field? Or would we report all originations as code 2 - not a high-cost mortgage, and all non-originations and commercial loans as NA?

I don't think you could just choose one code to use for the whole LAR, you would use 2 and 3 depending on if it's a commercial loan, a second home, primary residence, etc.

If only it were that easy because really who does HOEPA loans anyway?

Paragraph 4(a)(13)

1. HOEPA status—not applicable. If the covered loan is not subject to the Home Ownership and Equity Protection Act of 1994, as implemented in Regulation Z, 12 CFR 1026.32, a financial institution complies with § 1003.4(a)(13) by reporting that the requirement is not applicable. If an application did not result in an origination, a financial institution complies with § 1003.4(a)(13) by reporting that the requirement is not applicable.

Loans that have to be tested for HOEPA (consumer purpose and secured by the consumer's primary residence) ARE subject to HOEPA, so as Boaty says, you can't put NA for those. It either is or is not a HOEPA loan, but not NA.

Thank you! I'm working on constructing bank procedure specific HMDA worksheets for our lenders and we're trying to determine which questions we can answer for them to cause less confusion. I guess this won't be one of them.

If you have a transaction that is consumer purpose, but secured by a second home, it does not have to be tested for HOEPA. Would you enter N/A?

I think that is right. The CFPB's Reporting Not Applicable chart says for HOEPA Status you report "NA" for "Covered loans not subject to the Home Ownership and Equity Protection Act (HOEPA) of 1994, as implemented in Regulation Z..."