Is monitoring information a requirement for a business loan on a 1-4 family property? We are a HMDA reporting bank.
If an applicant provides government monitoring information that is clearly incorrect, should it be corrected by the loan officer taking the application?
A loan is being made under an individual's name for investment purposes. It is not going to be owner-occupied and is not a primary or secondary residence/principal dwelling; it's a purchase, renovate and re-sell. The rate spread is N/A, correct? Since it is not under a business name are we required to gather the Government Monitoring Information on the individual(s)?
I have a question about HMDA, HELOCs and monitoring information. Reg. B allows collection of MI when you have a personal dwelling-secured loan that is for the purpose of purchase or refinance. This could include HELOCs. If a bank does not report HELOCs on HMDA, are they now required to collect the information on HELOCs that are for the purpose of purchase or refinance for Reg. B compliance? The HELOC application forms do not have a purpose statement. Also, the OSC from 202.13, #5 indicates that the information should be collected only if it is "readily apparent" that the purpose is for the purchase or refinance a dwelling. Does that mean that all of the application forms, including online forms, should be changed to include a purpose statement and the MI section (not to mention retraining staff, etc.)?
If a bank has elected not to report HELOC's under HMDA then you do not have to collect the borrower's race, sex or ethnicity. What if a borrower completes an application and marks this information as it pertains to them, does it matter that you have this information in your loan file even though it is not required?
Regarding HMDA reporting of government monitoring information for a co-applicant received on a separate loan application. Commonly, when unrelated borrowers apply for a mortgage loan, they fill out separate 1003 loan applications. Also commonly, most mortgage lending institutions and their lending systems treat the two applications as a single "loan". HMDA reporting is then done on a "loan" level. In this case, would the second applicant be considered a "co-borrower" and would their government monitoring information be reportable to HMDA under one (the same) "loan"?
We have a loan request to purchase a residence that will be the primary residence for one borrower but there is a co-borrower that will not occupy the home. Do we collect government monitoring information for all borrowers or just the borrower that will occupy it as their primary residence?
This question is regarding Reg B and HMDA, are there any instances when the ethnicity, race, and sex information should be collected for Reg B purposes, but not HMDA purposes (for instance, lines of credit with a primary purpose of purchasing or refinancing a principal dwelling)? Is it okay to collect the government monitoring information in these cases even if the loan is not HMDA applicable?
My question is regarding applications for construction loans. If the customer comes in and picks up a mortgage application, then brings it back to the bank and it happens to be a construction loan, but the customer has now filled in the government information, can we be in violation because the information was collected when it was not required? Even though the customer voluntarily provided the information? I have heard from others that having the information when not required is worse than not getting it at all. We use "Mortgage Applcation Brochures" which we have in our lobbies that our customers can pick up and take home with them to complete. It gives them the instructions, an application, required items checklist, servicing disclosure, and a general release. But what we are finding is they are taking it home and completing it and we don't know that they are applying for a construction loan. What was suggested was to make up a "Construction Application Brochure" with the government section crossed out. What is the penalty of the customer filling out the information voluntarily? And also what is the best solution to our "application brochures"?
For a loan to a hispanic, what code do we use as race?