Posted By: Help! Compliance
HMDA - Action Taken Date - YE Originations - 03/10/22 09:46 PM
When I read the last sentence of the originations Action Taken Date commentary (in red below), am I correct in saying the initial disbursement date usage allowance does not apply to those loans originated/closed at YE, but they initially disburse the following year? We must use the closing date in these cases…??? We have always reported the initial disbursement date for all reportable HMDA originations, with the exception of 1x closes whose initial disbursement can be delayed. Meaning, if a loan closed on 12/30/2021, but didn’t disburse until 01/04/2022, we report the Action Taken Date as 01/04/2022…but the commentary makes me think we had to report 12/30/2021.
Either way, we have never been called out on this, but I believe it further motivates me to begin exclusively using the closing/account opened date. Your thoughts?
Comment 4(a)(8)(ii)-5
5. Action taken date - originations. For covered loan originations, including a preapproval request that leads to an origination by the financial institution, an institution generally reports the closing or account opening date. For covered loan originations that an institution acquires from a party that initially received the application, the institution reports either the closing or account opening date, or the date the institution acquired the covered loan from the party that initially received the application. If the disbursement of funds takes place on a date later than the closing or account opening date, the institution may use the date of initial disbursement. For a construction/permanent covered loan, the institution reports either the closing or account opening date, or the date the covered loan converts to the permanent financing. Although an institution need not choose the same approach for its entire HMDA submission, it should be generally consistent (such as by routinely using one approach within a particular division of the institution or for a category of covered loans). Notwithstanding this flexibility regarding the use of the closing or account opening date in connection with reporting the date action was taken, the institution must report the origination as occurring in the year in which the origination goes to closing or the account is opened.
Either way, we have never been called out on this, but I believe it further motivates me to begin exclusively using the closing/account opened date. Your thoughts?
Comment 4(a)(8)(ii)-5
5. Action taken date - originations. For covered loan originations, including a preapproval request that leads to an origination by the financial institution, an institution generally reports the closing or account opening date. For covered loan originations that an institution acquires from a party that initially received the application, the institution reports either the closing or account opening date, or the date the institution acquired the covered loan from the party that initially received the application. If the disbursement of funds takes place on a date later than the closing or account opening date, the institution may use the date of initial disbursement. For a construction/permanent covered loan, the institution reports either the closing or account opening date, or the date the covered loan converts to the permanent financing. Although an institution need not choose the same approach for its entire HMDA submission, it should be generally consistent (such as by routinely using one approach within a particular division of the institution or for a category of covered loans). Notwithstanding this flexibility regarding the use of the closing or account opening date in connection with reporting the date action was taken, the institution must report the origination as occurring in the year in which the origination goes to closing or the account is opened.