Purchaser Type Clarification

Posted By: referwithcaution

Purchaser Type Clarification - 07/15/22 04:10 PM

We have recently began underwriting loans sold on the secondary market, specifically to Wells Fargo Funding, a Division Of Wells Fargo Bank; Franklin American Mortgage Company, a Division of Citizens Bank; and First Community Mortgage.

This has led to a bit of confusion on my part for Purchaser Type and this is one of those data points that I have difficulty in finding information on. From what I understand, these loans should be coded as Mortgage Company – 71 even though they are a “Division” of a Bank.

I am still new to this position, so any insight on the differences in Types of Purchaser codes would be beneficial.
Posted By: Truffle Royale

Re: Purchaser Type Clarification - 07/19/22 04:56 PM

this post may be old but it's what I've been doing all along.
Posted By: referwithcaution

Re: Purchaser Type Clarification - 09/16/22 08:25 PM

I am, unfortunately, still having some issues here. I cannot find any appropriate "code" that I can report for the entities in which we sell loans to. I have used the sites given in the other post, but it gives somewhat basic information.

I understand that alot of HMDA is grey area, but can't there be a list of HMDA codes for purchasers of mortgages that can be referenced? Does anyone know of one somewhere?

I apologize if the answer is somewhere and I have overlooked it. This is an item of concern that I have been looking to resolve for some time.
Posted By: rlcarey

Re: Purchaser Type Clarification - 09/16/22 11:14 PM

Well, you can come down to brass tact and just tell us who you are talking about and people can weigh on how they report them and why. I am not sure there are any secrets about who buys loans in the secondary market.
Posted By: referwithcaution

Re: Purchaser Type Clarification - 09/19/22 08:42 PM

Wells Fargo
Franklin American Mortgage Company
First Community Mortgage

In the past, these three have been given a code of (9), Any information is very much welcomed.
Posted By: InFairness, CRCM

Re: Purchaser Type Clarification - 09/20/22 12:43 PM

I would report Franklin American Mortgage as code 6, because they do not appear to be a separate legal entity, but a DBA of Citizens Bank, based on National Information Center.
Posted By: referwithcaution

Re: Purchaser Type Clarification - 09/21/22 06:38 PM

I have used the center for researching these three entities, but was hoping that there was something more definite out there in regards to specific entities and codes. It appears that Regulators may be requiring us to objectively classify them ourselves.
Posted By: hmdagal

Re: Purchaser Type Clarification - 09/21/22 08:20 PM

There are so many potential purchasers of loans that it would be next to impossible to maintain a list of all of them and the corresponding codes.
Posted By: Cielo

Re: Purchaser Type Clarification - 09/22/22 10:02 PM

Another resource you can use is the correspondent lender/seller guides the investor(s) provide to your financial institution. Not all, but some of the guides will provide that the investor should be coded as "X" purchaser for HMDA. It's not bullet proof, but it can be a useful tool for reasoning your reporting decision.