Commercial loan HMDA reportable no application

Our bank does not require applications on commercial loans. Since this loan is HMDA reportable should there have been an application to record GMI? GMI is recorded on the HMDA boarding sheet. I'm asking since i have no way of comparing info on the HMDA boarding sheet to anything. Thank you

We have a separate form that includes the HMDA Disclosure and the GMI questions, a place to describe the application and a place for the applicants to sign and date....also a place for the lender to indicate the type of interview and then sign the signature line. The form basically looks just like the bottom of the 1003.

The HMDA Getting It Right Guide has a sample GMI form that you can use.

I think i'm looking at the same thing you are describing swiggles. This is my first HMDA commercial loan and being new to auditing i somehow thought there should be a formal application requesting credit and GMI filled out on that application.

Learned something new today. Thank you.

There is never a requirement for a written application, other than Reg B's requirement for a written application in connection with the purchase or refinance of a principal dwelling. Here in Texas, state law requires a written application for a homestead home equity loan. So you might check your state law also. We typically don't get an application for business purpose ("commercial") loans even it subject to HMDA.

swiggles is right, but even when a written application is required, the regulation doesn't require the borrower to complete it. The application is a lender responsibility.

Model application forms are provided in Appendix B to the regulation, although use of a printed form of any kind is not required. A creditor will satisfy the requirement by writing down the information that it normally considers in making a credit decision. The creditor may complete the application on behalf of an applicant and need not require the applicant to sign the application. [Commentary to §1002.4(c) #1]

Most likely the recording of the GMI on the boarding sheet is not compliant because I'll bet you the proverbial dollar to a hole in a donut that the commercial loan officer did not provide or read the required disclosure to the applicant.

The following is from page 2 of the GIR. It is management's responsibility to have procedures in place for all business lines to comply with HMDA.

Management's Responsibilities
If your institution is required to comply with HMDA, management must ensure that:
Procedures are in place for collecting and maintaining accurate data regarding each loan application, loan origination, and loan purchase— for home purchase loans, home-improvement loans, and refinancings.

And from page C-7 of the GIR:

(b) Bona fide errors.
(1) An error in compiling or recording loan data is not a violation of the act or this part if the error was unintentional and occurred despite the maintenance of procedures reasonably adapted to avoid such errors.

If management has not put in place and maintained procedures for the commercial loan business line to collect and report HMDA data then any "inadvertent" failure to collect the data will not be a bona fide error because management did not implement and maintain procedures to collect and report the data.

As David pointed out, definition of written application doesn't mean that the applicant wrote it........means the lender reduced the information provided by the applicant to writing.