Using hmdahelp as a resource

This may seem like an odd question, but what are your thoughts about hmdahelp as a resource for HMDA questions? (I'm thinking we print their response and hang onto it for our next exam!) Unlike every ppt slideshow I've ever gotten from the FRB, is hmdahelp considered an opinion of the federal reserve?

Speaking totally off the record here, but my dealings with HMDA Help haven't inspired a lot of confidence. One example: i can think of at least 10 (probably more) people on here whose opinion on a HMDA issue i would value more than HMDA Help's. It goes without saying....this is strictly my opinion.

raitchjay and I share the same opinion.
I'll even go further and warn you that a printed response is not going to protect you.
I've gotten emailed responses from one examiner that the next examiner said were wrong.
You need to find your support in the Reg or the GIR, not an opinion from HMDAhelp or anyone else.
That's just my opinion based on my experiences.

I respect both of your opinions, so thanks for having one on this topic. I'm not a fan of the response our CO got from hmda help, but I'm a "reg reader." I like to go to the original text for an answer. Obviously, the CO isn't sold either as she came to her auditor for a second opinion.

I'll third the "caution" on trusting responses from HMDAHelp. I've seen a couple that were way off base.

Maybe you want to tell us what opinion HMDA Help is giving you specifically?

I've already searched BOL and found several opinions that are not in agreement with hmda help. But for the sake of full disclosure.....

We have several larger construction/perm loans on our books. With rates on the secondary market as low as they have been, some permanent phasers have optioned to refi. We generally end up with two simultaneous loans.....one for $417,000 (that we sell) and another for the remainder of the construction/perm balance (that we portfolio.) Hmdahelp says neither is reportable. No refi has occurred. Their opinion is that neither loan has fully satisfied and replaced the original loan. My CO asked if I would have cited in an audit. I sure would have.

Well, i would disagree with their interpretation (sounds like you do too). Two dwelling-secured loans that together extinguish a dwelling-secured loans ARE reportable IMO. By that reasoning, it sounds like HMDA Help would say neither loan in a piggyback purchase would be reportable either, since neither loan by itself purchased a home.

This opinion started floating around a few months ago and it came out of the Dallas FDIC Region. My FDIC Chicago Region contact does not agree with that opinion nor do I.

Now with that said my advice would be to speak with your regulator and get their take on the issue.

For the sake of argument even if you agreed one of the loans did not replace or satisfied the existing loan once the balance was reduced by that loan's proceeds the second loan would satisfy and replace the remaining balance and obligation therefore meeting the definition of a refinancing, so again I don't agree with the HMDAHelp or the Dallas opinion.

Exactly! If the first paid down, then the second would fully satisfy. But I still think they are both refis, and obviously there is consensus here on BOL. (One of those prior thread opinions was yours by the way, Dan!)

Now I'm printing this for my CO. Not much time left for submission. (Insert YIKES here.)

Just to throw another comment out there...We received an opinion from HMDA help in the past that told us to report a loan in a certain way. We followed their direction and when FDIC examiners questioned it during an exam, we showed them the response from HMDA help. They had me resubmit the question and I received the same response. FDIC instructed me not to follow the response from HMDA help going forward but did not cite me for following the guidance up until that point.

That's good to know! CO ran it by our regulator and they are standing by the hmdahelp answer. Guess I'm checking the box and moving onto my next mission. Thanks for all of the help here. Hopefully you will see our bank on the "who has submitted" thread real soon.

Keep a copy of every scrap of paper on these.
The sure bet is you'll be made to explain it in an exam.
Good luck!

They'll be here next month, TR! Will keep y'all posted.

Coming to visit here next month too.
Are you as excited about it as I am???.............NOT!