06/21/2004
I read "The Masses Are Still Confused on Refinancings" posted 6/7/2004 concerning when a renewal is a refinance. Our bank is located in Louisiana (yeah, the state that does everything different). We use collateral mortgages that are reusable. There are four documents involved is securing a loan with a collateral mortgage: the promissory note, the collateral mortgage, the collateral mortgage note, and the pledge agreement tying the collateral mortgage and mortgage note to the promissory note. I understand that if the "note" is replaced, the loan is reportable under HMDA. My question: Which "note"? - the promissory note or the mortgage note? If at the maturity date stated on the promissory note, we replace the promissory note (and the pledge agreement) but use the existing collateral mortgage and collateral mortgage note, is it a refinancing and therefore HMDA-reportable?
05/17/2004
I work at a state bank, regulated by the FDIC. Do we have to report reasons for denial or is it still an option for 2004?
05/17/2004
Is a loan made for an assisted-living residence HMDA-reportable? Also, if more than 4 individuals live in the home, would it be multifamily?
05/17/2004
HMDA requires an officer of a financial institution to certify the accuracy of the data. The regulation is silent on which officer should certify the accuracy. I believe this responsibility should reside with the Compliance Officer, not Internal Audit. Do you know of any announcements, etc., regarding this, or are you aware of what the "norm" is at other financial institutions?
04/26/2004
04/19/2004
Our bank became subject to HMDA in 2003. When does the Home Mortgage Act Notice need to be displayed in the bank?
04/19/2004
I'm in the process of completing an audit of the Fair Housing Act for a national bank. The OCC requires that "each bank shall attempt to obtain all of the information below." It then goes on to require a considerable amount of information in excess of the traditional government monitoring information (race, ethnicity, sex, marital status, and age). Is all of this information required to be on the application? Will the information (such as amount requested, interest rate requested, # of months to maturity, and proposed monthly payment) being in the loan file on some other document suffice? Also, does the fact that the application is partially completed suffice for compliance with the regulation for "attempting to obtain" the information?
04/19/2004
The program we have for loan documentation can assume that the rate will adjust up over time or adjust down over time. If we select the adjust-down assumption, the APR disclosed is lower than the actual note rate. This doesn't seem correct although I've seen other companies do it. Would this be a proper disclosure?
04/05/2004
Should we be reporting a HMDA code "3" in the owner occupancy category when the property location is not in an MSA, or can we report a "1 - owner occupied" or "2 - not owner occupied"?
03/15/2004
If a home improvement loan is secured by an automobile or a C.D., is a rate spread calculation required?