Reporting Small Dollar Withdrawn App

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Question:

I have an application which was withdrawn. The purpose is for earnest money on the purchase of a house. The amoount is $500.00. I am not sure if this is reportable on the HMDA LAR.

Answer:

A HMDA home purchase loan must be for the purpose of purchasing a dwelling and must be secured by a dwelling. It looks like you have the purpose. Was the proposed loan to have been secured by a dwelling? If not, then the application is not reported. If the answer is yes, then you report the transaction. A $500 dollar loan is rounded to the nearest $1,000 and the trailing zeros are dropped. Therefore, the amount is reported as 1.

First published on BankersOnline.com 2/2/04