HMDA Small Entity Compliance Guide

201512_cfpb_hmda_small-entity-compliance-guide.pdf

Home Mortgage Disclosure Act (Reg C) 12 CFR 1003

HMDA Small Entity Compliance Guide

OMB: 3170-0008

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December 2015
OMB Control No. 3170-0008

Home Mortgage
Disclosure (Regulation C)
Small Entity Compliance Guide

Table of contents
Table of contents......................................................................................................... 1
1. Introduction ........................................................................................................... 5
1.1

Purpose of this guide ................................................................................ 6

1.2

Additional implementation resources ...................................................... 7

2. Key changes and effective dates ........................................................................ 8
2.1

Institutional coverage ............................................................................... 8

2.2 Transactional coverage ............................................................................. 9
2.3 Required data points............................................................................... 10
2.4 Collection and reporting of applicant information ................................. 11
2.5 Annual reporting ..................................................................................... 12
2.6 Quarterly reporting ................................................................................. 13
2.7 Disclosure requirements ......................................................................... 13
2.8 Enforcement provisions for larger-volume reporters ............................ 14
3. Institutional coverage ......................................................................................... 15
3.1

Institutional coverage during 2017..........................................................15

3.2 Institutional coverage on or after January 1, 2018 ................................ 18
3.3 Exempt institutions ................................................................................ 22
4. Transactional coverage ...................................................................................... 23
1

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4.1

Covered loans .......................................................................................... 23

4.2 Reportable activity .................................................................................. 32
5. Reportable data................................................................................................... 38
5.1

Applicant information ............................................................................ 38

5.2 Universal loan identifier (ULI) ............................................................... 45
5.3 Application date ...................................................................................... 47
5.4 Application channel ................................................................................ 48
5.5 Preapproval request ................................................................................ 49
5.6 Loan type ................................................................................................. 49
5.7

Loan purpose .......................................................................................... 49

5.8 Loan amount ........................................................................................... 52
5.9 Loan term ................................................................................................ 54
5.10 Action taken and date ............................................................................. 55
5.11 Reason for denial .................................................................................... 55
5.12 Property address and location ................................................................ 56
5.13 Construction method .............................................................................. 57
5.14 Occupancy type ....................................................................................... 58
5.15 Lien status ............................................................................................... 59
5.16 Manufactured home information ........................................................... 60
5.17 Property value ......................................................................................... 61
5.18 Total units ............................................................................................... 62
5.19 Multifamily affordable units ................................................................... 63
5.20 Debt-to-income ratio .............................................................................. 65
5.21 Combined loan-to-value ......................................................................... 66
5.22 Credit score information......................................................................... 67

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5.23 Automated underwriting system information ....................................... 68
5.24 Interest rate..............................................................................................71
5.25 Introductory rate period ......................................................................... 73
5.26 Rate spread ............................................................................................. 74
5.27 Contractual features................................................................................ 78
5.28 Data points for certain loans subject to Regulation Z ............................ 79
5.29 Transaction indicators ............................................................................ 82
5.30 Mortgage loan originator identifier ........................................................ 83
5.31 Type of purchaser ................................................................................... 84
6. Recording and reporting .................................................................................... 87
6.1

Recording ................................................................................................ 87

6.2 Reporting ................................................................................................ 87
6.3 Disclosure of data ................................................................................... 90
7. Enforcement provisions ..................................................................................... 92
8. Mergers and acquisitions .................................................................................. 93
8.1

Determining coverage ............................................................................. 93

8.2 Reporting responsibility for calendar year of merger or acquisition..... 93
8.3 Changes to appropriate Federal agency or TIN ..................................... 95
8.4 Determining quarterly reporting coverage............................................. 95
9. Practical implementation and compliance considerations ............................. 97
9.1

Identifying affected institutions, products, departments, and staff ...... 97

9.2 Implementation and compliance management support activities ...... 100
Attachment A: .......................................................................................................... 103
Sample data collection form……………………………………………………………….…103

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Attachment B: .......................................................................................................... 104
Action taken chart ......................................................................................... 104
Attachment C: .......................................................................................................... 108
Sample notices ............................................................................................... 108
PAPERWORK REDUCTION ACT

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and,
notwithstanding any other provision of law, a person is not required to respond to a collection of
information unless it displays a valid OMB control number. The OMB control number for this
collection is 3170-0008. It expires on January 31, 2016. The information collections created by
the Final Rule published October 28, 2015 at 80 FR 66127, have been submitted to OMB for
approval, but have not yet been approved by OMB. These information collections will not
become effective until either three years from the date of publication of this rule, or upon
approval from OMB; whichever date is later. The time required to complete this information
collection is estimated to average between 161 hours and 9,000 hours per response depending
on the size of the institution. The obligation to respond to this collection of information is
mandatory per the Home Mortgage Disclosure Act, 12 U.S.C. 2801-2810, as implemented by
CFPB’s Regulation C, 12 CFR part 1003. Comments regarding this collection of information,
including the estimated response time, suggestions for improving the usefulness of the
information, or suggestions for reducing the burden to respond to this collection should be
submitted to the Consumer Financial Protection Bureau (Attention: PRA Office), 1700 G Street
NW, Washington, DC 20552, or by email to [email protected]. The other agencies collecting
information under this regulation maintain OMB control numbers for their collections as
follows: Office of the Comptroller of the Currency (1557–0159), the Federal Deposit Insurance
Corporation (3064–0046), the Federal Reserve System (7100–0247), the Department of
Housing and Urban Development (2502–0529), and the National Credit Union Administration
(3133–0166).

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1. Introduction
The Home Mortgage Disclosure Act (HMDA), which Congress enacted in 1975, requires certain
financial institutions to collect, record, report, and disclose information about their mortgage
lending activity. Regulation C implements HMDA and sets out specific requirements for the
collection, recording, reporting, and disclosure of mortgage lending information. The datarelated requirements in HMDA and Regulation C serve three primary purposes: (1) to help
determine whether financial institutions are serving their communities’ housing needs; (2) to
assist public officials in distributing public investment to attract private investment; and (3) to
assist in identifying potential discriminatory lending patterns and enforcing antidiscrimination
statutes.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
transferred rulemaking authority for HMDA to the Consumer Financial Protection Bureau
(Bureau), effective July 2011. It also amended HMDA to require financial institutions to report
new data points and authorized the Bureau to require financial institutions to collect, record,
and report additional information. On August 29, 2014, the Bureau published proposed
amendments to Regulation C to implement the Dodd-Frank Act changes and to make additional
changes. The Bureau carefully reviewed and considered the comments it received on its
proposed amendments. On October 15, 2015, the Bureau issued a final rule (2015 HMDA Rule)
amending Regulation C. The 2015 HMDA Rule was published in the Federal Register on
October 28, 2015. The 2015 HMDA Rule implements the Dodd-Frank Act amendments and
makes other changes to Regulation C.

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1.1

Purpose of this guide

The purpose of this guide is to provide an easy-to-use summary of Regulation C, as amended by
the 2015 HMDA Rule, and to highlight information that financial institutions and those that
work with them might find helpful when implementing the 2015 HMDA Rule.
This guide meets the requirements of Section 212 of the Small Business Regulatory Enforcement
Fairness Act of 1996, which requires the Bureau to issue a small entity compliance guide to help
small entities comply with new regulations. Larger entities may also find this guide useful.
This guide is not a substitute for the 2015 HMDA Rule or Regulation C. Regulation C,
the 2015 HMDA Rule, and their official interpretations (also known as the commentary) are the
definitive sources of information regarding their requirements. The 2015 HMDA Rule is
available at http://www.consumerfinance.gov/regulatory-implementation/hmda/.
The focus of this guide is Regulation C, as amended by the 2015 HMDA Rule. Except when
specifically needed to explain a provision of amended Regulation C, this guide does not discuss
other Federal or State laws that may apply to mortgage lending.
This guide has examples to illustrate some portions of the 2015 HMDA Rule. The examples do
not include all possible factual situations that could illustrate a particular provision, trigger a
particular obligation, or satisfy a particular requirement. Even though an example may identify
a fictitious financial institution as, for example, “Ficus Bank” or “Ficus Mortgage Company,” the
provision or obligation being illustrated in the example may apply to all financial institutions,
including both depository and nondepository financial institutions.
Sometimes this guide will distinguish between the requirements of the 2015 HMDA Rule and
the requirements of Regulation C as they apply before a specific part of the 2015 HMDA Rule
goes into effect. When making these distinctions, the guide generally refers to the requirements
of Regulation C as they apply before a specific part of the 2015 HMDA Rule goes into effect as
“current Regulation C.” However, it should be understood that this means the requirements of
Regulation C as they are before the specific part of the 2015 HMDA Rule being discussed goes
into effect, not Regulation C as of any specific date (such as the date the guide is being read).

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1.2

Additional implementation resources

Additional resources to help institutions understand and comply with the 2015 HMDA Rule are
available on the Bureau’s website at http://www.consumerfinance.gov/regulatoryimplementation/hmda/.
A person who has a specific regulatory interpretation question about the 2015 HMDA Rule after
reviewing these materials may submit the question in writing to [email protected].
Please specify HMDA in the subject line and provide regulatory cites to indicate the topic of the
question. Any person without access to email may leave his or her question in a voicemail at
202-435-7700. Bureau staff provides only informal responses to regulatory inquiries, and the
responses do not constitute official interpretations or legal advice.
Generally, Bureau staff is not able to respond to specific inquiries the same business day or
within a particular requested timeframe. Actual response times will vary based on the number
of questions Bureau staff is handling and the amount of research needed to respond to a specific
question.
Technical questions about collecting or reporting 2015 and 2016 HMDA data
(reported in 2016 and 2017) should continue to be directed to [email protected]
or 202-452-2016. Technical questions about collecting HMDA data for 2017 and
later years or reporting HMDA data in 2018 and later years should be directed to
[email protected] or 855-438-2372.

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2. Key changes and effective
dates
The 2015 HMDA Rule changes: (1) the types of financial institutions that are subject to
Regulation C; (2) the types of transactions that are subject to Regulation C; (3) the data that
financial institutions are required to collect, record, and report; and (4) the processes for
reporting and disclosing HMDA data.
Most provisions of the 2015 HMDA Rule go into effect on January 1, 2018 and apply to data
collected in 2018 and reported in 2019 or later years. However, an institutional coverage change
for depository institutions is effective January 1, 2017. Certain changes regarding reporting and
changes to the enforcement provisions regarding good faith efforts are effective January 1, 2019.
The new quarterly reporting requirement is effective January 1, 2020.
This section summarizes these key changes and provides the effective date for each key change.
For an illustration of the 2015 HMDA Rule’s effective dates, see the HMDA Key Dates Timeline.
For more detailed information on the 2015 HMDA Rule’s specific requirements, see Sections 3
through 8.

2.1

Institutional coverage

Effective January 1, 2017 through December 31, 2017 for certain changes to depository
institution coverage; effective January 1, 2018 for broader changes to institutional coverage
The 2015 HMDA Rule changes institutional coverage in two phases.
First, the 2015 HMDA Rule narrows the scope of depository institutions subject to Regulation C
in 2017. A bank, savings association, or credit union is not subject to Regulation C in 2017

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unless it meets all of the coverage criteria for depository institutions under current Regulation C,
and it originates at least 25 home purchase loans (including refinancings of home purchase
loans) in both 2015 and 2016. 12 CFR 1003.2 (financial institution)(1).
Second, effective January 1, 2018, the 2015 HMDA Rule adopts a uniform loan-volume
threshold for all financial institutions. Beginning in 2018, a financial institution will be subject
to Regulation C if it originated at least 25 covered closed-end mortgage loans in each of the two
preceding years or at least 100 covered open-end lines of credit in each of the two preceding
calendar years, and it meets other applicable coverage requirements. For depository financial
institution coverage, the 2015 HMDA Rule maintains current Regulation C’s asset-size
threshold, location test, federally related test, and loan activity test. For nondepository financial
institutions, the 2015 HMDA Rule retains the current location test. A nondepository financial
institution is subject to Regulation C, effective January 1, 2018, if it originated at least 25
covered closed-end mortgage loans or at least 100 covered open-end lines of credit in each of the
two preceding calendar and meets the location test. 12 CFR 1003.2(g)(1), (2).
For more information regarding which financial institutions are subject to the 2015 HMDA
Rule, see Section 3 and the HMDA Institutional Coverage Charts.

2.2

Transactional coverage

Effective January 1, 2018 for data collected on or after January 1, 2018 (to be reported in or
after 2019)
The 2015 HMDA Rule modifies the types of transactions that are subject to Regulation C and
generally adopts a dwelling-secured standard for transactional coverage.
Beginning on January 1, 2018, Regulation C generally applies to consumer-purpose, closed-end
loans and open-end lines of credit that are secured by a dwelling. 12 CFR 1003.2(d), (e), and (o).
A home improvement loan is not subject to Regulation C unless it is secured by a dwelling.
Beginning on January 1, 2018, Regulation C applies to business-purpose, closed-end loans and
open-end lines of credit that are dwelling-secured and are home purchase loans, home
improvement loans, or refinancings. 12 CFR 1003.3(c)(10). For business-purpose transactions,

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the 2015 HMDA Rule creates a dwelling-secured standard and maintains current Regulation C’s
purpose test.
The 2015 HMDA Rule retains existing categories of excluded transactions, clarifies some
categories of excluded transactions, and expands the existing exclusion for agricultural-purpose
transactions. 12 CFR 1003.3(c). It also adds new categories of excluded transactions that are
designed to work in tandem with the 2015 HMDA Rule’s other changes.
The 2015 HMDA Rule expands the types of preapproval requests that are reported, but also
excludes requests regarding some types of loans from the scope of reportable preapproval
requests. Under the 2015 HMDA Rule, reporting of preapproval requests that are approved but
not accepted is required instead of optional. However, under the 2015 HMDA Rule, preapproval
requests regarding home purchase loans to be secured by multifamily dwellings, preapproval
requests for open-end lines of credit, and preapproval requests for reverse mortgages are not
reportable.
For more information regarding the transactions that are subject to the 2015 HMDA Rule, see
Section 4.

2.3

Required data points

Effective January 1, 2018 and applicable to data reported in or after 2019
The 2015 HMDA Rule adds the data points specified in the Dodd-Frank Act as well as data
points that the Bureau determined will assist in carrying out HMDA’s purposes. For example,
the 2015 HMDA Rule adds new data points for age, credit score, automated underwriting
information, debt-to-income ratio, unique loan identifier, property value, application channel,
points and fees, borrower-paid origination charges, discount points, lender credits, loan term,
prepayment penalty, and identification of other loan features. 12 CFR 1003.4. The 2015 HMDA
Rule also modifies some existing data points. For an illustration of the data points that the 2015
HMDA Rule adds or modifies, see the Summary of Reportable HMDA Data – Regulatory
Reference Chart.
A financial institution collects, records, and reports the new and modified data points under the
2015 HMDA Rule for applications on which final action is taken on or after January 1, 2018. If a

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financial institution receives an application in 2017 but takes final action on it in 2018, it is
required to collect, record, and report the new and modified data points under the 2015 HMDA
Rule. There is a special transition rule that applies to the collection of an applicant’s ethnicity,
race, and sex. This special transition rule is discussed in Section 5.1.1.
A financial institution collects, records, and reports the new and modified data points, to the
extent that they apply to purchased loans, for purchases of covered loans that occur on or after
January 1, 2018.
For more information regarding the data points that must be reported under the 2015 HMDA
Rule, see Section 5.

2.4

Collection and reporting of applicant
information

Effective January 1, 2018 for data collected in or after 2018 (to be reported in or after 2019)
For data collected in or after 2018, the 2015 HMDA Rule amends the requirements for collection
and reporting of information regarding an applicant’s or borrower’s ethnicity, race, and sex.
First, the 2015 HMDA Rule adds a requirement to report how the institution collected the
information about the applicant’s or borrower’s ethnicity, race, and sex. A financial institution
will report whether or not it collected the information on the basis of visual observation or
surname. 12 CFR 1003.4(a)(10)(i). Financial institutions are required to collect information
about an applicant’s ethnicity, race, and sex on the basis of visual observation or surname when
an applicant chooses not to provide the information for an application taken in person.
Second, financial institutions must permit applicants to self-identify using disaggregated ethnic
and racial subcategories and must report disaggregated information applicants provide.
However, the 2015 HMDA Rule does not require or permit financial institutions to use the
disaggregated subcategories when identifying the applicant’s ethnicity and race based on visual
observation or surname. The 2015 HMDA Rule includes a new sample data collection form in
appendix B that provides the required aggregated categories and disaggregated subcategories
for ethnicity and race. Appendix B to Part 1003.

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For more information regarding the collection and reporting of applicant information under the
2015 HMDA Rule, see Section 5.1.

2.5

Annual reporting

Effective January 1, 2018 for changes requiring electronic submission of 2017 HMDA data in
2018; effective January 1, 2019 for changes requiring electronic submission of HMDA data in
2019 and later years
The 2015 HMDA Rule retains the requirement that a financial institution submit its HMDA data
to its appropriate Federal agency by March 1 following the calendar year for which it collected
the data, but requires electronic submission of the data.
The Bureau is developing a new web-based tool for electronically submitting HMDA data.
Financial institutions are required to submit data electronically using the new web-based tool
beginning in 2018 for data collected in 2017. For more information on the new submission tool,
see http://www.consumerfinance.gov/hmda/.
Appendix A to Part 1003, which includes instructions for completing and submitting the HMDA
loan/application register (LAR), is amended effective January 1, 2018 to include new transition
requirements for data collected in 2017 and reported in 2018. In particular, amended appendix
A requires that a financial institution electronically submit its HMDA data. Procedures for
electronic submission of 2017 HMDA data will be available at
http://www.consumerfinance.gov/hmda/.
Effective January 1, 2019, appendix A is removed from Regulation C. Beginning in 2019,
financial institutions are required to submit the new dataset electronically in accordance with
the 2015 HMDA Rule, using the new web-based submission tool and revised procedures that
will be available at http://www.consumerfinance.gov/hmda/.
For more information regarding annual reporting under the 2015 HMDA Rule, see Section 6.2.1.

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2.6

Quarterly reporting

Effective January 1, 2020 for data collected and reported in or after 2020
The 2015 HMDA Rule imposes a new quarterly reporting requirement for larger-volume
reporters. In addition to their annual data submission, these larger-volume reporters will also
electronically submit their HMDA data for each of the first three quarters of the year on a
quarterly basis beginning in 2020. 12 CFR 1003.5(a)(1)(ii).
For more information regarding quarterly reporting under the 2015 HMDA Rule, see Section
6.2.2.

2.7

Disclosure requirements

Effective January 1, 2018 for data collected on or after January 1, 2017 (to be reported in or
after 2018)
The 2015 HMDA Rule replaces Regulation C’s requirements to provide a disclosure statement
and modified LAR 1 to the public upon request with new requirements to provide notices that the
institution’s disclosure statement and modified LAR are available on the Bureau’s website.
12 CFR 1003.5(b)(2) and (c).

HMDA requires a financial institution to make available to the public, upon request, “loan application register
information” in the form required under Regulation C, and requires the Bureau to determine if deletions from the
information are appropriate to protect applicants’ and borrowers’ privacy interests or to protect financial
institutions from liability under privacy laws. 12 USC 304(j). Prior to being disclosed to the public, LARs must be
modified to remove loan application register information that the Bureau determines should be deleted.

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The Bureau will determine if it should modify data to protect applicant and borrower privacy
before posting the data to the Bureau’s website. 2
The 2015 HMDA Rule also modifies the content of the posting required under Regulation C.
The 2015 HMDA Rule includes sample language that financial institutions can use to provide
notice that the institution’s HMDA data are available on the Bureau’s website and to comply
with the posting requirement. These revised disclosure requirements are effective January 1,
2018 and apply to data collected on or after January 1, 2017 and reported in or after 2018.
For more information regarding the disclosure requirements under the 2015 HMDA Rule, see
Section 6.3.

2.8

Enforcement provisions for largervolume reporters

Effective January 1, 2019
The 2015 HMDA Rule provides that inaccuracies or omissions in quarterly reporting are not
violations of HMDA or Regulation C if the financial institution makes a good-faith effort to
report quarterly data timely, fully, and accurately, and then corrects or completes the data prior
to its annual submission. 12 CFR 1003.6(c)(2).
For more information regarding the enforcement provisions of the 2015 HMDA Rule, see
Section 7.

2 As required under current Regulation C, the Bureau will redact three fields (application or loan number, application
date, and date action taken) from the 2017 HMDA data prior to disclosing the data to the public. For data collected
under the 2015 HMDA Rule, the Bureau will use a balancing test to determine whether and, if so, how data should
be modified prior to disclosure. The Bureau will balance the potential harm to applicant and borrower privacy with
the need to provide information to fulfill HMDA’s disclosure purposes.

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3. Institutional coverage
An institution is required to comply with Regulation C only if it is a “financial institution” as that
term is defined in Regulation C. The 2015 HMDA Rule changes the Regulation C definition of
“financial institution” in two phases. The first phase of institutional coverage changes, which is
effective January 1, 2017, only affects banks, savings associations, and credit unions. The
second phase of institutional coverage changes, which is effective January 1, 2018, affects all
institutions.

3.1

Institutional coverage during 2017

During 2017, a bank, savings association, or credit union uses the revised coverage criteria,
outlined in Section 3.1.1, to determine if it is a financial institution under Regulation C.
12 CFR 1003.2 (financial institution)(1). Although the coverage criteria for an institution other
than a bank, savings association, or credit union does not change in 2017, Section 3.1.2 of this
guide outlines the coverage criteria that an institution other than a bank, credit union, or
savings association uses to determine if it is a financial institution under Regulation C during
2017. 12 CFR 1003.2 (financial institution)(2). An institution may also find the 2017 HMDA
Institutional Coverage Chart helpful when determining whether it is subject to Regulation C in
2017.

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3.1.1

Banks, savings associations, and credit unions

Under the 2015 HMDA Rule, between January 1, 2017 and December 31, 2017, a bank, savings
association, or credit union is subject to Regulation C if it meets ALL 3 of the following:
1. Asset-Size Threshold. On December 31, 2016, the bank, savings association, or credit
union had assets in excess of the asset-size threshold published annually in the Federal
Register and posted on the Bureau’s website. 12 CFR 1003.2 (financial institution)(1)(i);
comment (financial institution)-2.
2. Location Test. On December 31, 2016, the bank, savings association, or credit union had a
home or branch office located in a metropolitan statistical area (MSA).
12 CFR 1003.2(financial institution)(1)(ii).
The U.S. Office of Management and Budget (OMB) defines MSAs. For more information on
MSAs, see https://www.ffiec.gov/census/default.aspx and
https://www.ffiec.gov/geocode/help1.aspx.
3. Loan Activity Test. During 2016, the bank, savings association, or credit union originated
at least one home purchase loan (including a refinancing of a home purchase loan) secured
by a first lien on a one-to-four-family dwelling. 12 CFR 1003.2 (financial institution)(1)(iii).
4. Federally Related Test. The bank, savings association, or credit union:
a. Is federally insured; or
b. Is federally regulated; or
c. Originated a home purchase loan (including a refinancing of a home purchase loan) that
was secured by a first lien on a one-to-four-family dwelling and that also (i) was insured,
guaranteed, or supplemented by a Federal agency OR (ii) was intended for sale to Fannie
Mae or Freddie Mac. 12 CFR 1003.2 (financial institution)(1)(iv).

When determining whether it meets these criteria for 2017, a bank, savings association, or credit union relies on the
definitions in the version of Regulation C effective in 2017. For example, a bank, saving association, or credit union
uses the definition of “branch office” and “home purchase loan” in the version of Regulation C effective in 2017.

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5. Loan-Volume Threshold. In each of the two preceding calendar years, the bank, savings
association, or credit union originated at least 25 home purchase loans (including
refinancings of home purchase loans). Coverage depends on the number of home purchase
loans (including refinancings of home purchase loans) that the bank, savings association, or
credit union originated. To determine whether activities with respect to a particular loan
constitute an origination, see the official commentary effective in 2017, including comments
1(c)-2 through -6 and 4(a)-1.iii and -1.iv.

3.1.2

For-profit mortgage-lending institutions

Between January 1, 2017 and December 31, 2017, a for-profit mortgage-lending institution
(other than a bank, savings association, or credit union) is subject to Regulation C if it meets
ALL 4 of the following:
1. Location Test. On December 31, 2016, the mortgage-lending institution had a home or
branch office located in an MSA. 12 CFR 1003.2 (financial institution)(2)(ii).
The U.S. Office of Management and Budget (OMB) defines MSAs. For more information on
MSAs, see https://www.ffiec.gov/census/default.aspx and
https://www.ffiec.gov/geocode/help1.aspx.
For purposes of this location test, a branch office of a for-profit mortgage-lending institution
is: (a) any one of the institution’s offices (b) that takes applications from the public for home
purchase loans, home improvement loans, or refinancings. A mortgage-lending institution
is also deemed to have a branch office in an MSA if, in the preceding calendar year, it
received applications for, originated, or purchased five or more home purchase loans, home
improvement loans, or refinancings related to property located in that MSA. 12 CFR 1003.2
(branch office)(2).
2. Loan Volume or Amount Test. During 2016, the mortgage-lending institution either:
a. Originated home purchase loans (including refinancings of home purchase loans) that
equaled at least 10 percent of its loan-origination volume (measured in dollars); or

When determining whether it meets these criteria for 2017, a for-profit mortgage-lending institution relies on the
definitions in the version of Regulation C effective in 2017. For example, a for-profit mortgage-lending institution
uses the definition of “branch office” and “home purchase loan” in the version of Regulation C effective in 2017.

CONSUMER FINANCIAL PROTECTION BUREAU

b. Originated home purchase loans (including refinancings of home purchase loans) that
equaled at least $25 million. 12 CFR 1003.2(financial institution)(2)(i).
3. Loan-Volume or Asset-Size Threshold. Either:
a. On December 31, 2016, the mortgage-lending institution and its parent corporation (if
any) had assets in excess of $10 million; or
b. In 2016, the mortgage-lending institution originated at least 100 home purchase loans
(including refinancings of home purchase loans). 12 CFR 1003.2(financial
institution)(2)(iii).

3.2

Institutional coverage on or after
January 1, 2018

Beginning on January 1, 2018, the 2015 HMDA Rule further revises the definition of “financial
institution” and adds definitions for “depository financial institution” and “nondepository
financial institution.” 12 CFR 1003.2(g). As of that date, a financial institution subject to
Regulation C is either a depository financial institution or nondepository financial institution.
An institution uses these two new definitions, which are outlined below, as coverage tests to
determine whether it is a financial institution that is required to comply with Regulation C,
effective January 1, 2018. Although the 2015 HMDA Rule is the definitive source regarding the
institutional coverage criteria, an institution may also find the 2018 HMDA Institutional
Coverage Chart helpful when it is determining whether it is subject to Regulation C, effective
January 1, 2018.
Throughout the remainder of this guide, an institution that meets the criteria set forth in the
2015 HMDA Rule’s definition of depository financial institution is referred to as a Depository
Financial Institution, and an institution that meets the criteria set forth in the 2015 HMDA
Rule’s definition of nondepository financial institution is referred to as a Nondepository
Financial Institution. The capitalized term Financial Institution refers to an institution that is
either a Depository Financial Institution or a Nondepository Financial Institution and that is an
institution that is subject to the 2015 HMDA Rule, effective January 1, 2018.

CONSUMER FINANCIAL PROTECTION BUREAU

3.2.1

Depository financial institutions

Under the 2015 HMDA Rule, effective January 1, 2018, a bank, savings association, or credit
union is a Depository Financial Institution, a Financial Institution, and subject to Regulation C
if it meets ALL 5 of the following:
1. Asset-Size Threshold. On the preceding December 31, the bank, savings association, or
credit union had assets in excess of the asset-size threshold published annually in the
Federal Register and posted on the Bureau’s website. The phrase “preceding December 31”
refers to the December 31 immediately preceding the current calendar year. For example, in
2018, the preceding December 31 is December 31, 2017. 12 CFR 1003.2(g)(1)(i).
2. Location Test. On the preceding December 31, the bank, savings association, or credit
union had a home or Branch Office located in an MSA. 12 CFR 1003.2(g)(1)(ii).
For purposes of this location test, a Branch Office for a bank, savings association, or credit
union is an office: (a) of the bank, savings association, or credit union (b) that is considered
a branch by the institution’s Federal or State supervisory agency. For purposes of the 2015
HMDA Rule, an automated teller machine or other free-standing electronic terminal is not a
Branch Office regardless of whether the supervisory agency would consider it a branch.
12 CFR 1003.2(c)(1). A Branch Office of a credit union is any office where member accounts
are established or loans are made, whether or not an agency has approved the office as a
branch. Comment 2(c)(1)-1.
3. Loan Activity Test. During the preceding calendar year, the bank, savings association, or
credit union originated at least one Home Purchase Loan or Refinancing of a Home
Purchase Loan secured by a first lien on a one-to four-unit Dwelling.
12 CFR 1003.2(g)(1)(iii).
For more information on whether a loan is secured by a Dwelling, is a Home Purchase Loan,
or is a Refinancing of a Home Purchase Loan, see Sections 4.1.1.2 and 5.7.
4. Federally Related Test. The bank, savings association, or credit union:
a. Is federally insured; or

When determining whether it meets these criteria on or after January 1, 2018, a bank, savings association, or credit
union relies on the definitions in the 2015 HMDA Rule.

CONSUMER FINANCIAL PROTECTION BUREAU

b. Is federally regulated; or
c. Originated at least one Home Purchase Loan or Refinancing of a Home Purchase Loan
that was secured by a first lien on a one- to-four-unit Dwelling and also (i) was insured,
guaranteed or supplemented by a Federal agency OR (ii) was intended for sale to Fannie
Mae or Freddie Mac. 12 CFR 1003.2(g)(1)(iv).
5. Loan-Volume Threshold. The bank, savings association, or credit union originated at
least 25 Closed-End Mortgage Loans in each of the two preceding calendar years, or
originated at least 100 Open-End Lines of Credit in each of the two preceding calendar years.
When the bank, savings association, or credit union determines whether it meets this loanvolume threshold, it does not count transactions excluded by 12 CFR 1003.3(c)(1) through
(10). 12 CFR 1003.2(g)(1)(v). These Excluded Transactions are discussed below in Section
4.1.2 in paragraphs 1 through 10. For more information on Closed-End Mortgage Loans,
Open-End Lines of Credit, and Excluded Transactions, see Section 4.1.
When determining if it meets the loan-volume threshold, a bank, savings association, or
credit union only counts Closed-End Mortgage Loans and Open-End Lines of Credit that it
originated. Only one institution is deemed to have originated a specific Closed-End
Mortgage Loan or Open-End Line of Credit under the 2015 HMDA Rule, even if two or more
institutions are involved in the origination process. Only the institution that is deemed to
have originated the transaction under the 2015 HMDA Rule counts it for purposes of the
origination threshold. Comments 2(g)-5; see also comments 4(a)-2 through -4. For more
information on how to determine whether an institution is deemed to have originated a
transaction under the 2015 HMDA Rule, see Section 4.2.3.
The 2015 HMDA Rule also includes a separate test to ensure that Financial Institutions that
meet only the 25 Closed-End Mortgage Loan threshold are not required to report their
Open-End Lines of Credit, and that Financial Institutions that meet only the 100 Open-End
Line of Credit threshold are not required to report their Closed-End Mortgage
Loans. 12 CFR 1003.3(c)(11) and (12). For more information, see Section 4.1.2.

3.2.2

Nondepository financial institutions

Under the 2015 HMDA Rule, effective January 1, 2018, a for-profit mortgage-lending institution
(other than a bank, savings association, or credit union) is a Nondepository Financial

CONSUMER FINANCIAL PROTECTION BUREAU

Institution, a Financial Institution, and subject to Regulation C if it meets BOTH 6 of the
following:
1. Location Test. The mortgage-lending institution had a home or Branch Office in an MSA
on the preceding December 31. The phrase “preceding December 31” refers to the December
31 immediately preceding the current calendar year. For example, in 2018, the preceding
December 31 is December 31, 2017. 12 CFR 1003.2(g)(2)(i).
For purposes of this location test, a Branch Office of a for-profit mortgage-lending
institution is: (a) any one of the institution’s offices (b) at which the institution takes from
the public Applications for Covered Loans. A mortgage-lending institution is also deemed to
have a Branch Office in an MSA if, in the preceding calendar year, it received Applications
for, originated, or purchased five or more Covered Loans related to property located in that
MSA. 12 CFR 1003.2(c)(2). For more information on Applications and Covered Loans, see
Section 4.
2. Loan-Volume Threshold. The mortgage-lending institution originated at least 25
Closed-End Mortgage Loans in each of the two preceding calendar years, or originated at
least 100 Open-End Lines of Credit in each of the two preceding calendar years. When an
institution determines whether it meets the loan-volume threshold, it does not count
transactions excluded by 12 CFR 1003.3(c)(1) through (10). 12 CFR 1003.2(g)(2)(ii). These
Excluded Transactions are discussed below in Section 4.1.2 in paragraphs 1 through 10. For
more information on Closed-End Mortgage Loans, Open-End Lines of Credit, and Excluded
Transactions, see Section 4.1.
When determining if it meets the loan-volume threshold, a mortgage-lending institution
only counts Closed-End Mortgage Loans and Open-End Lines of Credit that it originated.
Only one institution is deemed to have originated a specific Closed-End Mortgage Loan or
Open-End Line of Credit under the 2015 HMDA Rule, even if two or more institutions are
involved in the origination process. Only the institution that is deemed to have originated
the transaction under the 2015 HMDA Rule counts it for purposes of the origination
threshold. Comment 2(g)-5. See also comments 4(a)-2 through -4. For more information

When determining whether it meets these criteria on or after January 1, 2018, a mortgage-lending institution relies
on the definitions in the 2015 HMDA Rule.

CONSUMER FINANCIAL PROTECTION BUREAU

on how to determine whether an institution is deemed to have originated a transaction
under the 2015 HMDA Rule, see Section 4.2.3.
The 2015 HMDA Rule also includes a separate test to ensure that Financial Institutions that
meet only the 25 Closed-End Mortgage Loan threshold are not required to report their
Open-End Lines of Credit, and that Financial Institutions that meet only the 100 Open-End
Line of Credit threshold are not required to report their Closed-End Mortgage
Loans. 12 CFR 1003.3(c)(11) and (12). For more information, see Section 4.1.2.

3.3

Exempt institutions

Regulation C provides that financial institutions may apply for an exemption from coverage, and
the 2015 HMDA Rule does not change this provision. Specifically, the Bureau may exempt a
State-chartered or State-licensed Financial Institution if the Bureau determines that the
Financial Institution is subject to a State disclosure law that contains requirements substantially
similar to those imposed by Regulation C and adequate enforcement provisions. Any Statelicensed or State-chartered Financial Institution or association of such institutions may apply to
the Bureau for an exemption. An exempt institution shall submit the data required by State law
to its State supervisory agency. 12 CFR 1003.3(a). A Financial Institution that loses its
exemption must comply with Regulation C beginning with the calendar year following the year
for which it last reported data under the State disclosure law. 12 CFR 1003.3(b).

CONSUMER FINANCIAL PROTECTION BUREAU

4. Transactional coverage
A Financial Institution is required to collect, record, and report information only for
transactions that are subject to Regulation C. Effective January 1, 2018, the 2015 HMDA Rule
changes the types of transactions that are subject to Regulation C. This guide uses the
capitalized term Covered Loan to refer to a loan or line of credit that is subject to Regulation C,
effective January 1, 2018. As of that date, a Financial Institution is required to collect, record,
and report information only for a transaction that involves a Covered Loan, such as the
origination or purchase of a Covered Loan.
A Financial Institution can use Section 4.1 of this guide, below, for assistance in determining
whether a transaction involves a Covered Loan. After a Financial Institution has determined
that a transaction involves a Covered Loan, it can use Section 4.2 for assistance in determining
whether it must report information related to the transaction.

4.1

Covered loans

A Covered Loan can be either a Closed-End Mortgage Loan or an Open-End Line of Credit (see
Section 4.1.1), but an Excluded Transaction cannot be a Covered Loan (see Section 4.1.2).
12 CFR 1003.2(e).
To determine if a transaction is subject to amended Regulation C, effective January 1, 2018, a
Financial Institution should first determine whether the loan or line of credit involved in the
transaction is either a Closed-End Mortgage Loan or an Open-End Line of Credit. See Section
4.1.1. If the loan or line of credit is neither a Closed-End Mortgage Loan nor an Open-End Line
of Credit, the transaction does not involve a Covered Loan, and the Financial Institution is not
required to report the transaction. If the loan or line of credit is either a Closed-End Mortgage
Loan or an Open-End Line of Credit, the Financial Institution must determine if the Closed-End
Mortgage Loan or Open-End Line of Credit is an Excluded Transaction. See Section 4.1.2. If the
23

CONSUMER FINANCIAL PROTECTION BUREAU

Closed-End Mortgage Loan or an Open-End Line of Credit is an Excluded Transaction, it is not a
Covered Loan, and the Financial Institution is not required to report the transaction. If the loan
or line of credit is a Closed-End Mortgage Loan or an Open-End Line of Credit and is not an
Excluded Transaction, the Financial Institution may be required to report the transaction. See
Section 4.2.

4.1.1

Closed-end mortgage loans and open-end lines of
credit

A Closed-End Mortgage Loan is:
1. An extension of credit;
2. Secured by a lien on a Dwelling; and
3. Not an Open-End Line of Credit. 12 CFR 1003.2(d).
An Open-End Line of Credit is:
1. An extension of credit;
2. Secured by a lien on a Dwelling; and
3. An open-end credit plan for which:
a. The lender reasonably contemplates repeated transactions;
b. The lender may impose a finance charge from time-to-time on an outstanding unpaid
balance; and
c. The amount of credit that may be extended to the borrower during the term of the
plan (up to any limit set by the lender) is generally made available to the extent that
any outstanding balance is repaid. 12 CFR 1003.2(o); 12 CFR 1026.2(a)(20).

CONSUMER FINANCIAL PROTECTION BUREAU

Financial Institutions may rely on Regulation Z, 12 CFR 1026.2(a)(20), 7 and its official
commentary when determining whether a transaction is extended under a plan for which the
lender reasonably contemplates repeated transactions, the lender may impose a finance charge
from time-to-time on an outstanding unpaid balance, and the amount of credit that may be
extended to the borrower during the term of the plan is generally made available to the extent
that any outstanding balance is repaid.
A business-purpose transaction that is exempt from Regulation Z but is otherwise open-end
credit under Regulation Z, 12 CFR 1026.2(a)(20), would be an Open-End Line of Credit under
the 2015 HMDA Rule if it is an extension of credit secured by a lien on a Dwelling and is not an
Excluded Transaction. Comment 2(o)-1.

4.1.1.1

Extension of credit

A closed-end loan or open-end line of credit is not a Closed-End Mortgage Loan or an Open-End
Line of Credit under the 2015 HMDA Rule unless it involves an extension of credit. Some
transactions completed pursuant to installment sales contracts, such as some land contracts, are
not Closed-End Mortgage Loans because no credit is extended. For example, if a land contract
provides that, upon default, the contract terminates, all previous payments will be treated as
rent, and the borrower is under no obligation to make further payments, the transaction is not a
Closed-End Mortgage Loan. Comment 2(d)-2. Individual draws on an Open-End Line of Credit
are not separate extensions of credit. Comment 2(o)-2.
Under the 2015 HMDA Rule, an “extension of credit” generally requires a new debt obligation.
Comment 2(d)-2. Thus, for example, a loan modification where the existing debt obligation is
not satisfied and replaced is not generally a Covered Loan (i.e., Closed-End Mortgage Loan or
Open-End Line of Credit) under the 2015 HMDA Rule. Except as described below, if a
transaction modifies, renews, extends, or amends the terms of an existing debt obligation, but
the existing debt obligation is not satisfied and replaced, the transaction is not a Covered Loan.

Regulation Z, 12 CFR part 1026, implements the Truth in Lending Act.

CONSUMER FINANCIAL PROTECTION BUREAU

It is important to note that the 2015 HMDA Rule defines the phrase “extension of credit”
differently than Regulation B, 12 CFR part 1002. 8 Comment 2(d)-2 and 2(o)-2.
The 2015 HMDA Rule provides two narrow exceptions to the requirement that an “extension of
credit” involve a new debt obligation. The exceptions are designed to capture transactions that
the Bureau believes are substantially similar to new debt obligations and should be treated as
such.
First, the 2015 HMDA Rule maintains Regulation C’s coverage of loan assumptions, even if no
new debt obligation is created. A loan assumption is a transaction in which a Financial
Institution enters into a written agreement accepting a new borrower in place of an existing
borrower as the obligor on an existing debt obligation. The 2015 HMDA Rule clarifies that,
under Regulation C, assumptions include successor-in-interest transactions in which an
individual succeeds the prior owner as the property owner and then assumes the existing debt
secured by the property. Assumptions are extensions of credit under the 2015 HMDA Rule even
if the new borrower merely assumes the existing debt obligation and no new debt obligation is
created. Comment 2(d)-2.i.
Second, the 2015 HMDA Rule provides that transactions completed pursuant to a New York
State consolidation, extension, and modification agreement and classified as a supplemental
mortgage under New York Tax Law Section 255, such that the borrower owes reduced or no
mortgage recording taxes, is an extension of credit under the 2015 HMDA Rule. Comment 2(d)2.ii.

4.1.1.2

Secured by a lien on a dwelling

A loan is not a Closed-End Mortgage Loan and a line of credit is not an Open-End Line of Credit
unless it is secured by a lien on a Dwelling. A Dwelling is a residential structure. There is no
requirement that the structure be attached to real property or that it be the applicant’s or
borrower’s residence. Examples of Dwellings include:
1. Principal residences;

Regulation B, 12 CFR part 1002, implements the Equal Credit Opportunity Act.

CONSUMER FINANCIAL PROTECTION BUREAU

2. Second homes and vacation homes;
3. Investment properties;
4. Residential structures attached to real property;
5. Detached residential structures;
6. Individual condominium and cooperative units;
7. Manufactured Homes 9 or other factory-built homes; and
8. Multifamily residential structures or communities, such as apartment buildings,
condominium complexes, cooperative buildings or complexes, and Manufactured Home
communities. 12 CFR 1003.2(f); comments 2(f)-1 and -2.
A Dwelling is not limited to a structure that has four or fewer units and includes a Multifamily
Dwelling, which is a Dwelling that includes five or more individual dwelling units. A
Multifamily Dwelling includes a Manufactured Home community.
A loan related to a Manufactured Home community is secured by a Dwelling even if it is not
secured by any individual Manufactured Homes, but is secured only by the land that constitutes
the Manufactured Home community. However, a loan related to a multifamily residential
structure or community other than a Manufactured Home community is not secured by a
Dwelling unless it is secured by one or more individual dwelling units. For example, a loan that
is secured only by the common areas of a condominium complex or only by an assignment of
rents from an apartment building is not secured by a Dwelling. Comment 2(f)-2.
The following are not Dwellings:

A Manufactured Home is a residential structure that satisfies the definition of “manufactured home” in the U.S.
Department of Housing and Urban Development’s (HUD’s) regulations, 24 CFR 3280.2, for establishing
manufactured home construction and safety standards. 12 CFR 1003.2(l). A modular home or factory-built home
that does not meet HUD’s regulations is not a Manufactured Home under the 2015 HMDA Rule. A Manufactured
Home will generally bear a HUD Certification Label and data plate noting compliance with the Federal standards.
Comment 2(l)-2.

CONSUMER FINANCIAL PROTECTION BUREAU

1. Recreational vehicles, such as boats, campers, travel trailers, or park model recreational
vehicles;
2. Houseboats, floating homes, or mobile homes constructed before June 15, 1976;
3. Transitory residences, such as hotels, hospitals, college dormitories, or recreational
vehicle parks; and
4. Structures originally designed as a Dwelling but used exclusively for commercial
purposes, such as a home converted to a daycare facility or professional office. Comment
2(f)-3.
A property that is used for both residential and commercial purposes, such as a building that has
apartment and retail units, is a Dwelling if the property’s primary use is residential. Comment
2(f)-4.
A property used for both long-term housing and to provide assisted living or supportive housing
services is a Dwelling. However, transitory residences used to provide such services are not
Dwellings. Properties used to provide medical care, such as skilled nursing, rehabilitation, or
long-term medical care, are not Dwellings. If a property is used for long-term housing, to
provide related services (such as assisted living) and to provide medical care, the property is a
Dwelling if its primary use is residential. Comment 2(f)-5.
A Financial Institution may use any reasonable standard to determine a property’s primary use,
such as square footage, income generated, or number of beds or units allocated for each use. It
may select the standard on a case-by-case basis. Comments 2(f)-4 and -5.

4.1.2

Excluded transactions

Regulation C does not apply to transactions that are specifically excluded from coverage.
12 CFR 1003.3(c). Therefore, an Excluded Transaction is not a Covered Loan. The 2015 HMDA
Rule retains and clarifies existing categories of transactions that are excluded from coverage. It
also expands the existing exclusion for agricultural loans, and adds new categories of
transactions that excluded from coverage. Effective January 1, 2018, the following are Excluded
Transactions:
1. A Closed-End Mortgage Loan or an Open-End Line of Credit that a Financial Institution
originates or purchases in a fiduciary capacity, such as a Closed-End Mortgage Loan or an

CONSUMER FINANCIAL PROTECTION BUREAU

Open-End Line of Credit that a Financial Institution originates or purchases as a trustee.
12 CFR 1003.3(c)(1); comment 3(c)(1).
2. A Closed-End Mortgage Loan or an Open-End Line of Credit secured by a lien on
unimproved land. 12 CFR 1003.3(c)(2). Generally, a loan or line of credit must be secured
by a Dwelling to be a Covered Loan. The 2015 HMDA Rule also lists Closed-End Mortgage
Loans and Open-End Lines of Credit secured only by vacant or unimproved land as
Excluded Transactions. However, a loan or line of credit secured by a lien on unimproved
land is deemed to be secured by a Dwelling (and not might not be excluded) if the Financial
Institution knows, based on information that it receives from the applicant or borrower at
the time the Application is received or the credit decision is made, that the proceeds of that
loan or credit line will be used within two years after closing or account opening to construct
a Dwelling on, or to purchase a Dwelling to be placed on, the land. Comment 3(c)(2)-1.
3. A Closed-End Mortgage Loan or an Open-End Line of Credit that is temporary financing. A
transaction is excluded as temporary financing if it is designed to be replaced by permanent
financing at a later time. A loan or line of credit is not temporary financing merely because
its term is short. 12 CFR 1003.3(c)(3); comment 3(c)(3)-1.

Examples
Ficus Bank extends a bridge or swing loan to finance a borrower’s down payment for a home
purchase. The borrower will pay off the bridge or swing loan with funds from the sale of his
or her existing home and obtain permanent financing from Ficus Bank at that time. The
bridge or swing loan is excluded as temporary financing.

Ficus Bank extends a construction loan to a borrower to finance construction of the
borrower’s Dwelling. The borrower will obtain a new extension of credit for permanent
financing of the Dwelling. Ficus Bank renews the construction loan several times before the
borrower obtains a new extension of credit from another lender for permanent financing.
The construction loan is excluded as temporary financing.

Ficus Bank extends a construction loan to a borrower to finance construction of the
borrower’s Dwelling. The construction loan will automatically convert to permanent
financing after the construction phase is complete. The construction loan is not temporary
financing because it is not designed to be “replaced by” permanent financing.

CONSUMER FINANCIAL PROTECTION BUREAU

Ficus Bank extends a nine-month loan to an investor, who uses the loan proceeds to
purchase a home, renovate it, and sell it before the loan term expires. The loan is not
temporary financing because it is not designed to be “replaced by” permanent financing.

4. The purchase of an interest in a pool of Closed-End Mortgage Loans or Open-End Lines of
Credit, such as mortgage-participation certificates, mortgage-backed securities, or real estate
mortgage investment conduits. 12 CFR 1003.3(c)(4); comment 3(c)(4)-1.
5. The purchase solely of the right to service Closed-End Mortgage Loans or Open-End Lines of
Credit. 12 CFR 1003.3(c)(5).
6. The purchase of a Closed-End Mortgage Loan or an Open-End Line of Credit as part of a
merger or acquisition or as part of the acquisition of all of a Branch Office’s assets and
liabilities. 12 CFR 1003.3(c)(6); comment 3(c)(6)-1. For more information on mergers and
acquisitions under the 2015 HMDA Rule, see Section 8.
7. A Closed-End Mortgage Loan or an Open-End Line of Credit, or an Application for a ClosedEnd Mortgage Loan or Open-End Line of Credit, for which the total dollar amount is less
than $500. 12 CFR 1003.3(c)(7).
8. The purchase of a partial interest in a Closed-End Mortgage Loan or an Open-End Line of
Credit. 12 CFR 1003.3(c)(8); comment 3(c)(8)-1.
9. A Closed-End Mortgage Loan or an Open-End Line of Credit if the proceeds are used
primarily for agricultural purposes or if the Closed-End Mortgage Loan or Open-End Line of
Credit is secured by a Dwelling that is located on real property that is used primarily for
agricultural purposes. 12 CFR 1003.3(c)(9); comment 3(c)(9)-1. The 2015 HMDA Rule
directs Financial Institutions to Regulation Z’s official commentary for guidance on what is
an agricultural purpose. Regulation Z’s official commentary states that agricultural
purposes include planting, propagating, nurturing, harvesting, catching, storing, exhibiting,
marketing, transporting, processing, or manufacturing food, beverages, flowers, trees,
livestock, poultry, bees, wildlife, fish or shellfish by a natural person engaged in farming,
fishing, or growing crops, flowers, trees, livestock, poultry, bees or wildlife. See comment
3(a)-8 in the official interpretations of Regulation Z, 12 CFR part 1026. A Financial
Institution may use any reasonable standard to determine the primary use of the property,
and may select the standard to apply on a case-by-case basis. Comment 3(c)(9)-1.

CONSUMER FINANCIAL PROTECTION BUREAU

10. A Closed-End Mortgage Loan or an Open-End Line of Credit that is or will be made
primarily for business or commercial purposes, unless it is a Home Improvement Loan, a
Home Purchase Loan, or a Refinancing. 12 CFR 1003.3(c)(10). Not all transactions that are
primarily for a business purpose are Excluded Transactions. Thus, a Financial Institution
must collect, record, and report data for Dwelling-secured, business-purpose loans and lines
of credit that are Home Improvement Loans, Home Purchase Loans, or Refinancings if no
other exclusion applies. For more information on determining whether a loan or line of
credit is a Home Purchase Loan, Home Improvement Loan, or Refinancing, see Section 5.7.
The 2015 HMDA Rule provides that, if a Closed-End Mortgage Loan or an Open-End Line of
Credit is deemed to be primarily for a business, commercial, or organizational purposes
under Regulation Z, 12 CFR 1026.3(a) and its official commentary, then the loan or line of
credit also is deemed to be primarily for a business or commercial purpose under the 2015
HMDA Rule. Comment 3(c)(10)-2. For more information and examples of businesspurpose or commercial-purpose transactions that are Covered Loans, see comment 3(c)(10)3 and -4.
11. A Closed-End Mortgage Loan if the Financial Institution originated fewer than 25 ClosedEnd Mortgage Loans in each of the two preceding calendar years. 12 CFR 1003.3(c)(11);
comment 3(c)(11)-1. A Financial Institution is not required to collect, record, or report
Closed-End Mortgage Loans if it originated fewer than 25 of them in each of the two
preceding calendar years. However, the Financial Institution will still be required to collect
and report information regarding Open-End Lines of Credit if it originated at least 100 of
them in each of the two preceding calendar years. For more information on how to
determine if a Financial Institution “originated” a particular loan when multiple entities are
involved in the transaction, see Section 4.2.3.
12. An Open-End Line of Credit if the Financial Institution originated fewer than 100 Open-End
Lines of Credit in each of the two preceding calendar years. 12 CFR 1003.3(c)(12); comment
3(c)(12)-1. A Financial Institution is not required to collect, record, or report Open-End
Lines of Credit if it originated fewer than 100 of them in each of the two preceding calendar
years. However, the Financial Institution will still be required to collect and report
information regarding Closed-End Mortgage Loans if it originated at least 25 of them in each
of the two preceding calendar years. For more information on how to determine if a
Financial Institution “originated” a particular line of credit when multiple entities are
involved in the transaction, see Section 4.2.3.

CONSUMER FINANCIAL PROTECTION BUREAU

4.2

Reportable activity

Once a Financial Institution has determined whether a transaction involves a Covered Loan, it
must determine whether it has engaged in activity that obligates it to report information about
the transaction. Generally, a Financial Institution is required to report information for actions
taken on Applications (as that term is defined below) for Covered Loans, originations of Covered
Loans, and purchases of Covered Loans. If a Financial Institution receives an Application and
that Application results in the Financial Institution originating a Covered Loan, the Financial
Institution reports the origination of the Covered Loan, and does not separately report the
Application. For more information on when to report information regarding Applications and
Covered Loans, see Sections 4.2.1 and 4.2.2. There are special rules that apply if multiple
entities are involved in the transaction. These special rules are discussed in Section 4.2.3.

4.2.1

Applications

For purposes of the 2015 HMDA Rule, an Application is: (a) an oral or written request (b) for a
Covered Loan (c) that is made in accordance with procedures the Financial Institution uses for
the type of credit requested. 12 CFR 1003.2(b)(1).
This definition of Application is similar to the Regulation B definition, except that
prequalification requests 10 are not Applications under the 2015 HMDA Rule. Interpretations
that appear in the official commentary to Regulation B are generally applicable to the definition
of Application under the 2015 HMDA Rule, except for those interpretations that include a
prequalification request within the definition of Application. Comment 2(b)-1.
Under the 2015 HMDA Rule, a request for a preapproval may be treated differently than a
request for a prequalification for certain types of loans. The determination of whether a request

Generally, a prequalification request is a request (other than a preapproval request) by a prospective loan applicant
for a preliminary determination of whether the prospective loan applicant would likely qualify for credit under the
Financial Institution’s standards, or for a determination of the amount of credit for which the prospective applicant
would likely qualify. The 2015 HMDA Rule does not require a Financial Institution to report prequalification
requests, even though these requests may constitute “applications” under Regulation B. Comment 2(b)-2.

CONSUMER FINANCIAL PROTECTION BUREAU

is a prequalification request (which is not an Application) or a preapproval request (which might
be an Application) is based on the 2015 HMDA Rule, not on the labels that an institution uses or
interpretations of other regulations, such as Regulation B.
A preapproval request is an Application under the 2015 HMDA Rule if the request is:
1. For a Home Purchase Loan;
2. Not secured by a Multifamily Dwelling;
3. Not for an Open-end Line Credit or for a Reverse Mortgage; 11 and
4. Reviewed under a Preapproval Program (see definition of Preapproval Program
immediately below). 12 CFR 1003.2(b)(2).
A Preapproval Program for purposes of the 2015 HMDA Rule is a program in which the
Financial Institution:
1. Conducts a comprehensive analysis of the applicant’s creditworthiness (including income
verification), resources, and other matters typically reviewed as part of the Financial
Institution’s normal credit evaluation program; and then
2. Issues a written commitment that: (a) is for a Home Purchase Loan; (b) is valid for a
designated period of time and up to a specified amount, and (c) is subject only to
specifically permitted conditions. 12 CFR 1003.2(b)(2).
The written commitment issued as part of the Preapproval Program can be subject to only the
following types of conditions:
1. Conditions that require the identification of a suitable property;
2. Conditions that require that no material change occur regarding the applicant’s financial
condition or creditworthiness prior to closing; and

A Reverse Mortgage is a Closed-End Mortgage Loan or an Open-End Line of Credit that is a reverse mortgage
transaction as defined in Regulation Z, but without regard to whether the loan or line is secured by a principal
dwelling. 12 CFR 1003.2(q).

CONSUMER FINANCIAL PROTECTION BUREAU

3. Limited conditions that (a) are not related to the applicant’s financial condition or
creditworthiness and (b) the Financial Institution ordinarily attaches to a traditional
home mortgage application. Examples of conditions ordinarily attached to a traditional
home mortgage application include requiring an acceptable title insurance binder or a
certificate indicating clear termite inspection and, if the applicant plans to use the
proceeds from the sale of the applicant’s present home to purchase a new home, a
settlement statement showing adequate proceeds from the sale of the present home.
12 CFR 1003.2(b)(2); comment 2(b)-3.
A program that a Financial Institution describes as a “preapproval program” but that does not
satisfy the 2015 HMDA Rule definition is not a Preapproval Program for purposes of the HMDA
Rule. Comment 2(b)-3.
If a Financial Institution does not regularly use procedures to consider requests but instead
considers requests on an ad hoc basis, the Financial Institution is not required to treat the ad
hoc requests as having been reviewed under a Preapproval Program. However, a Financial
Institution should be generally consistent in following uniform procedures for considering such
ad hoc requests. Comment 2(b)-3.
Under the 2015 HMDA Rule, a Financial Institution must collect, record, and report data
regarding an Application it receives if: (1) the Application did not result in the Financial
Institution originating a Covered Loan; and (2) the Financial Institution took action on the
Application or the applicant withdrew the Application while the Financial Institution was
reviewing it. For example, a Financial Institution reports information regarding an Application
that it denied, that it approved but the applicant did not accept, or that it closed for
incompleteness. 12 CFR 1003.4(a) and 1003.5(a); comment 4(a)-1. If the Application results in
the Financial Institution originating a Covered Loan, the Financial Institution reports the
Covered Loan, not the Application itself. For more information on reporting Applications when
multiple entities are involved, see Section 4.2.3.
Although requests under Preapproval Programs are Applications, a Financial Institution reports
data regarding a request under a Preapproval Program only if the preapproval request is denied
or approved but not accepted. A Financial Institution will also report a request under a
Preapproval Program that results in the Financial Institution originating a Home Purchase
Loan, but it will be reported as an originated Covered Loan. Comment 4(a)-1.ii.

CONSUMER FINANCIAL PROTECTION BUREAU

A Financial Institution reports the data for an Application, including a reportable preapproval
request, on the LAR for the calendar year during which it takes action even if the Financial
Institution received the Application in a previous calendar year. Comment 4(a)-1.iv.

4.2.2

Originations and purchases of covered loans

A Financial Institution must collect, record, and report information regarding originations and
purchases of Covered Loans. For more information on when a Financial Institution reports the
origination or purchase of a Covered Loan when multiple entities are involved, see Section 4.2.3.
A purchase includes a repurchase of a Covered Loan, regardless of whether the Financial
Institution chose to repurchase the Covered Loan or was required to repurchase it because of a
contractual obligation, and regardless of whether the repurchase occurred within the same
calendar year that the Covered Loan was originated or in a different calendar year. Comment
4(a)-5.
A purchase does not include a temporary transfer of a Covered Loan to an interim funder or
warehouse creditor as part of an interim funding agreement under which the Financial
Institution that originated the Covered Loan is obligated to repurchase it for sale to a
subsequent investor. Such funding agreements are often referred to as “repurchase agreements”
and are sometimes used as the functional equivalents of warehouse lines of credit. Comment
4(a)-5.

4.2.3

Transactions involving multiple entities

Only one Financial Institution reports the origination of a Covered Loan. If more than one
institution is involved in the origination of a Covered Loan, the institution that makes the credit
decision approving the Application before loan closing or account opening is responsible for
reporting the origination of the Covered Loan. It is not relevant whether the loan closed in the
reporting Financial Institution’s name. If more than one institution approved an Application
prior to loan closing or account opening and one of those institutions purchased the Covered
Loan after closing or account opening, the institution that purchased the Covered Loan after
closing or account opening is responsible for reporting the origination of the Covered Loan.
Comment 4(a)-2.

CONSUMER FINANCIAL PROTECTION BUREAU

If a Financial Institution reports a Covered Loan as an origination, it reports all of the
information required to be reported for the origination of a Covered Loan, even if the Covered
Loan was not initially payable to the Financial Institution that is reporting the Covered Loan as
an origination. Comment 4(a)-2. When reporting a Covered Loan as an origination, a Financial
Institution cannot rely on exceptions or exclusions that apply to purchased Covered Loans, but
that do not apply to originations of Covered Loans.
If a Financial Institution and other parties review the same Application and the Financial
Institution is not responsible for reporting the origination of the resulting Covered Loan, the
Financial Institution reports the actions that the Financial Institution took on the Application.
For example, the Financial Institution is still required to report the Application if the Financial
Institution denied the Application or if the Financial Institution approved the Application but
the applicant did not accept the loan. The Financial Institution is also required to report the
Application if the Financial Institution was reviewing the Application when it was withdrawn or
the file was closed for incompleteness. Comment 4(a)-2.ii.
If a Financial Institution makes a credit decision on a Covered Loan or Application through the
actions of an agent, the Financial Institution reports the Application or Covered Loan. State law
determines whether one party is the agent of another party. Comment 4(a)-4.
The following examples illustrate when a Financial Institution reports certain transactions
related to Covered Loans involving multiple entities.

Examples
Ficus Bank receives an Application for a Covered Loan from an applicant and forwards that
Application to Pine Bank, which reviews and approves the Application prior to closing. The loan
closes in Ficus Bank’s name. Pine Bank purchases the loan from Ficus Bank after closing. Pine
Bank is not acting as Ficus Bank’s agent when it reviews and approves the Application. Because
Pine Bank made the credit decision prior to closing, Pine Bank reports the transaction as an
originated Covered Loan, not as a purchased Covered Loan. Ficus Bank does not report the
transaction.

Ficus Mortgage Company receives an Application for a Covered Loan from an applicant and
forwards that Application to Pine Bank, which reviews and denies the Application before the

CONSUMER FINANCIAL PROTECTION BUREAU

loan would have closed. Pine Bank is not acting as Ficus Mortgage Company’s agent when it
reviews and denies the Application. Because Pine Bank makes the credit decision, Pine Bank
reports the Application as denied. Ficus Mortgage Company does not report the Application. If,
under the same facts, the Application is withdrawn before Pine Bank makes a credit decision,
Pine Bank reports the Application as withdrawn, and Ficus Mortgage Company does not report
the Application.

Ficus Bank receives an Application for a Covered Loan from an applicant and approves the
Application. Ficus Bank closes the loan in its name. Ficus Bank is not acting as Pine Bank’s
agent when it approves the Application or closes the loan. Pine Bank does not review the
Application before closing. Pine Bank purchases the Covered Loan from Ficus Bank. Ficus
Bank reports the loan as an originated Covered Loan. Pine Bank reports the loan as a purchased
Covered Loan.

Pine Bank reviews an Application and makes a credit decision to approve a Covered Loan using
the underwriting criteria provided by Ficus Mortgage Company. Pine Bank is not acting as Ficus
Mortgage Company’s agent, and no one acting on behalf of Ficus Mortgage Company reviews
the Application or makes a credit decision prior to closing. Pine Bank reports the Application
or, if the Application results in a Covered Loan, it reports the loan as an originated Covered
Loan. If the Application results in a Covered Loan and Ficus Mortgage Company purchases it
after closing, Ficus Mortgage Company reports the loan as a purchased Covered Loan.

Ficus Bank receives an Application for a Covered Loan and forwards it to Aspen Bank and Pine
Bank. Ficus Bank makes a credit decision, acting as Elm Bank’s agent, and approves the
Application. Pine Bank makes a credit decision and denies the Application. Aspen Bank makes
a credit decision approving the Application. The applicant does not accept the loan from Elm
Bank. The applicant accepts the loan from Aspen Bank and credit is extended. Aspen Bank
reports the loan as an originated Covered Loan. Pine Bank reports the Application as denied.
Elm Bank reports the Application as approved but not accepted. Ficus Bank does not report the
Application.

CONSUMER FINANCIAL PROTECTION BUREAU

5. Reportable data
The 2015 HMDA Rule changes the data that must be collected, recorded, and reported for
Covered Loans and Applications. Effective January 1, 2018, it modifies some existing data
points and adds new data points. 12 CFR 1003.4.
A Financial Institution collects, records, and reports the new and modified data points under the
2015 HMDA Rule for Applications and Covered Loans on which final action is taken on or after
January 1, 2018. If a Financial Institution receives an Application in 2017 but takes final action
on it in 2018, it is required to collect, record, and report the new and modified data points under
the 2015 HMDA Rule. A Financial Institution collects, records, and reports the new and
modified data points, to the extent that they apply to purchased loans, for purchases of Covered
Loans that occur on or after January 1, 2018.
This section describes the 2015 HMDA Rule’s reportable data points and provides guidance on
how to report them. Additional instructions for reporting data will be available at
http://www.consumerfinance.gov/hmda/.

5.1

Applicant information

A Financial Institution must report information about ethnicity, race, and sex for applicants who
are natural persons. Appendix B to Regulation C provides instructions on how to collect
ethnicity, race, and sex information. The 2015 HMDA Rule modifies the requirements for
collecting and reporting an applicant’s ethnicity, race, and sex and requires that the applicant’s
age be collected and reported. Financial Institutions will continue to collect and report income.

CONSUMER FINANCIAL PROTECTION BUREAU

The 2015 HMDA Rule amends the instructions in appendix B and provides a new sample data
collection form.

5.1.1

Collection

The instructions in appendix B to the 2015 HMDA Rule require a Financial Institution:
1. To ask an applicant for ethnicity, race, and sex information regardless of whether the
Application is taken in person, by mail, by telephone, or on the internet. A Financial
Institution cannot require the applicant to provide this information.
When a Financial Institution requests ethnicity and race information from an applicant
under the 2015 HMDA Rule, it must offer the applicant the option of selecting more than
one ethnicity and race and must permit the applicant to self-identify using both aggregate
categories and disaggregated subcategories. For example, when a Financial Institution
requests the applicant’s ethnicity, the aggregate Hispanic or Latino category must be broken
down into disaggregated subcategories so that the applicant may choose to self-identify as
Mexican, Puerto Rican, Cuban, or Other Hispanic or Latino. In some cases, the applicant
must also be permitted to provide additional information. For example, if the applicant
selects Other Hispanic or Latino, the applicant must be permitted to provide an ethnicity
subcategory that is not provided on the collection form. Similarly, when a Financial
Institution requests the applicant’s race, the aggregate Asian category, for example, must be
broken down into disaggregated subcategories so that the applicant may choose to selfidentify as Asian Indian, Chinese, Filipino, Japanese, Korean, Vietnamese, or Other Asian.
If the applicant selects Other Asian, the applicant must be permitted to provide a particular
Asian race subcategory that is not provided on the collection form. Appendix B to Part 1003.
For an illustration of the information that a Financial Institution must ask about an
applicant’s ethnicity, race, and sex, see the sample data collection form in Attachment A.
2. To inform the applicant that: (a) Federal law requires the information be collected in order
to protect consumers and to monitor compliance with Federal statutes that prohibit
discrimination against applicants; and (b) if the information is not provided where the
Application is taken in person, the Financial Institution is required to note the information
on the basis of visual observation or surname.
3. To collect the applicant’s ethnicity, race, and sex based on visual observation or surname if
the applicant chooses not to provide the information for an Application that is taken in
person. Appendix B to Part 1003.

CONSUMER FINANCIAL PROTECTION BUREAU

For an Application taken in person, there are special requirements if the applicant declines
to provide the information regarding ethnicity, race, and sex. The Financial Institution must
note that the applicant did not provide the information and then collect the applicant’s
ethnicity, race, and sex on the basis of visual observation or surname. When a Financial
Institution collects an applicant’s ethnicity, race, and sex on the basis of visual observation
or surname, the Financial Institution must select from the following aggregate categories:
ethnicity (Hispanic or Latino; not Hispanic or Latino); race (American Indian or Alaska
Native; Asian; Black or African American; Native Hawaiian or Other Pacific Islander;
White); sex (male; female). The Financial Institution does not use the disaggregated
categories. Only an applicant may self-identify as being of a particular ethnic or racial
subcategory.
If a Financial Institution accepts an Application through electronic media with a video
component, it must treat the Application as taken in person. However, if a Financial
Institution accepts an Application through electronic media without a video component, it
must treat the Application as accepted by mail. Appendix B to Part 1003.
If the applicant (1) begins an Application by mail, internet, or telephone, (2) does not
provide the requested information, (3) does not select “I do not wish to provide this
information,” and (4) meets with the Financial Institution in person to complete the
Application, the Financial Institution must request the applicant’s ethnicity, race, and sex
when the Financial Institution meets with the applicant in person. If the applicant does not
provide the requested information during the in-person meeting, the Financial Institution
must collect the information on the basis of visual observation or surname. If the meeting
occurs after the Application process is complete (e.g., at loan closing or account opening),
the Financial Institution is not required to obtain the applicant’s ethnicity, race, and sex.
Appendix B to Part 1003.
A Financial Institution may collect the required information regarding the ethnicity, race, and
sex of an applicant on an Application form, or on a separate form that refers to the Application
(sometimes called a collection form). For Applications taken by telephone, a Financial
Institution must state the information in the collection form orally. Appendix B to Part 1003.
Because the 2015 HMDA Rule changes the information that must be included on an Application
form or other collection form, Financial Institutions must revise their forms. A Financial
Institution must use the revised collection or Application form for Applications received on or
after January 1, 2018. For Applications received prior to January 1, 2018, the Financial
Institution does not use the revised collection form, but collects applicant information using a
collection form that complies with the Regulation C requirements in effect prior to January 1,

CONSUMER FINANCIAL PROTECTION BUREAU

2018. The 2015 HMDA Rule provides a transition provision that allows a Financial Institution
to report the applicant’s ethnicity, race, and sex required under the Regulation C requirements
in effect at the time that the Financial Institution collects the information, not when the
Financial Institution takes final action on the Application. Comment 4(a)(10)(i)-2.

Example
Ficus Bank receives an Application on December 30, 2017. On the same day, it collects the
applicant’s ethnicity, race, and sex in accordance with the instructions in effect on December 30,
2017. Ficus Bank approves the Application on January 5, 2018, records the resulting Covered
Loan on its LAR for 2018, and reports the resulting Covered Loan by March 1, 2019. Ficus Bank
has complied with Regulation C, even though the instructions for the collection of ethnicity,
race, and sex changed after the information was collected but before the date of final
action. However, if Ficus Bank collects the applicant’s ethnicity, race, and sex on January 2,
2018, Ficus Bank must collect the information in accordance with the amended instructions
under the 2015 HMDA Rule.

For more information on collecting the applicant’s ethnicity, race, and sex, see appendix B to the
2015 HMDA Rule.

5.1.2

Reporting

A Financial Institution reports the following information about an applicant:
1. Ethnicity, race, and sex. A Financial Institution must report the applicant’s ethnicity,
race, and sex. It must also report whether or not it collected this information on the basis of
visual observation or surname. 12 CFR 1003.4(a)(10)(i).
If an applicant provided the requested information, a Financial Institution must report the
ethnicity, race, and sex information that the applicant provided. If an applicant selected
more than one ethnicity or race, a Financial Institution must report each designation the
applicant selected, subject to the limits in appendix B described below.
For ethnicity, a Financial Institution must report each aggregate ethnicity category and each
ethnicity subcategory the applicant selected. If an applicant selected the Other Hispanic or

CONSUMER FINANCIAL PROTECTION BUREAU

Latino ethnicity subcategory, a Financial Institution must report that selection as well as the
particular other Hispanic or Latino ethnicity if the applicant provided it.
For race, a Financial Institution must report every aggregate race category the applicant
selected. If the applicant also selected one or more race subcategories, a Financial
Institution must report each race subcategory the applicant selected, up to a combined total
of five aggregate race categories and race subcategories. Appendix B to Part 1003.

Examples
An applicant selects all five aggregate race categories (i.e., American Indian or Alaska Native,
Asian, Black or African American, Native Hawaiian or Other Pacific Islander, and White)
and also selects the Chinese race subcategory. Because a Financial Institution must report
all of the aggregate race categories that an applicant selects and can only report a combined
total of up to five aggregate race categories and race subcategories, Ficus Bank reports only
the five aggregate race categories. It does not report the Chinese race subcategory.

An applicant selects the White, Asian, and Native Hawaiian or Other Pacific Islander
aggregate race categories, and the Korean, Vietnamese, and Samoan race subcategories. The
Financial Institution must report the White, Asian, and Native Hawaiian or Other Pacific
Islander aggregate race categories. The Financial Institution also reports two of the three
race subcategories. The Financial Institution chooses which two race subcategories to report
(i.e., Korean and Vietnamese, Korean and Samoan, or Vietnamese and Samoan).

If an applicant selected the Other Asian race subcategory or the Other Pacific Islander race
subcategory, the applicant may have also provided a particular Other Asian or Other Pacific
Islander race not listed in the standard subcategories. In either such case, a Financial
Institution must report both the selection of Other Asian or Other Pacific Islander, as
applicable, and the additional information the applicant provided, subject to the maximum
of five. For purposes of the maximum of five reportable race categories and race
subcategories, the Other race subcategory and additional information together constitute
only one selection. Appendix B to Part 1003.

CONSUMER FINANCIAL PROTECTION BUREAU

Example
An applicant selects the White, Asian, and Native Hawaiian or Other Pacific Islander
aggregate race categories, as well as the Korean, Vietnamese, Samoan, and Other Asian race
subcategories and writes in “Thai” in the space provided on the Application form. The
Financial Institution reports two (at its option) of the four race subcategories selected by the
applicant (i.e., Korean, Vietnamese, Other Asian-Thai, Samoan) in addition to the three
aggregate race categories selected by the applicant.

If an applicant selected “I do not wish to provide this information” on a collection or
Application form taken by mail or on the internet or stated that he or she did not wish to
provide the information for an Application that is taken by telephone, the Financial
Institution reports that the information was not provided in a mail, internet, or telephone
application.
If an applicant provided some but not all of the requested information, a Financial
Institution reports the information provided by the applicant, whether partial or complete.
If an applicant provided complete or partial information but also selected that he or she did
not wish to provide the information for an Application that is taken by mail, internet, or
telephone, a Financial Institution reports the ethnicity, race, and sex information that the
applicant provided. Appendix B to Part 1003.
If there are multiple applicants (i.e., an applicant and one or more co-applicants), the
Financial Institution reports the ethnicity, race, and sex information for the applicant and
the first co-applicant listed on the collection or Application form. If an applicant did not
provide the information for an absent co-applicant, the Financial Institution reports that the
information was not provided by applicant in mail, internet, or telephone Application for the
absent co-applicant. If there is only one applicant, a Financial Institution reports that there
is no co-applicant.
If a Covered Loan or Application includes a guarantor, a Financial Institution does not
report the guarantor’s ethnicity, race, and sex. Appendix B to Part 1003.
A Financial Institution may, but is not required to, report an applicant’s ethnicity, race, and
sex for purchased Covered Loans. If a Financial Institution chooses not to report the
applicant’s ethnicity, race, and sex for a purchased Covered Loan, the Financial Institution
reports that the data points are not applicable. Appendix B to Part 1003.
If an applicant is not a natural person (e.g., a corporation, partnership, or trust), a Financial
Institution reports that the requirement to report ethnicity, race, and sex information is not
43

CONSUMER FINANCIAL PROTECTION BUREAU

applicable. However, if an applicant is a natural person and a beneficiary of a trust (for
example, the natural person might be relying on income from or collateral owned by a trust),
the Financial Institution reports the applicant’s ethnicity, race, and sex information.
Appendix B to Part 1003.
For more information on reporting an applicant’s ethnicity, race, and sex, see appendix B to
the 2015 HMDA Rule.
2. Age. A Financial Institution reports the applicant’s age (as of the Application date) as the
number of whole years derived from the date of birth shown on the Application form.
12 CFR 1003.4(a)(10)(ii); comment 4(a)(10)(ii)-1.

Example
An applicant provides a date of birth of 01/15/1970 on the Application form that Ficus Bank
receives on 01/14/2018. Ficus Bank reports 47 as the applicant’s age.

If there are multiple applicants, the Financial Institution reports the age for the applicant
and the first co-applicant listed on the Application form. If a Covered Loan or Application
includes a guarantor, a Financial Institution does not report the guarantor’s age. Comments
4(a)(10)(ii)-2 and -5.
A Financial Institution may, but is not required to, report the age of an applicant for
purchased Covered Loans. If a Financial Institution chooses not to report the applicant’s age
for a purchased Covered Loan, the Financial Institution reports that the data point is not
applicable. 12 CFR 1003.4(b)(2); comment 4(a)(10)(ii)-3.
If an applicant is not a natural person (e.g., a corporation, partnership, or trust), a financial
institution reports that the data point is not applicable. Comment 4(a)(10)(ii)-4. However,
if an applicant is a natural person and a beneficiary of a trust (for example, the natural
person might be relying on income from or collateral owned by a trust), the Financial
Institution reports the applicant’s age.
3. Income. If a Financial Institution considers income in making its credit decision, it reports
the gross annual income that it relied on in making the credit decision.
12 CFR 1003.4(a)(10)(iii). For Applications that are withdrawn or closed for incompleteness
before the Financial Institution makes a credit decision that would have taken income into
consideration, the Financial Institution reports the income information relied on in

CONSUMER FINANCIAL PROTECTION BUREAU

processing the Application at the time that the Application was withdrawn or the file was
closed for incompleteness. 12 CFR 1003.4(a)(10)(iii); comment 4(a)(10)(iii)-5.
If a Financial Institution relies on only a portion of an applicant’s income in its
determination, it reports only the portion of income relied on. Comment 4(a)(10)(iii)-1. If a
Financial Institution relies on the income of a co-applicant or cosigner to evaluate
creditworthiness, the Financial Institution includes the co-applicant’s or cosigner’s income
to the extent relied upon. Comments (a)(10)(iii)-1 and -2. A Financial Institution, however,
does not include the income of a guarantor who is only secondarily liable. Comment
4(a)(10)(iii)-1. Reportable income does not include funds or amounts in addition to income,
such as funds derived from annuitization or depletion of an applicant’s assets, even if the
Financial Institution relied on them when making the credit decision. Comment
4(a)(10)(iii)-4.
A Financial Institution may, but is not required to, report an applicant’s income for
purchased Covered Loans. A Financial Institution reports that the data point is not
applicable if it chooses not to report the applicant’s income. Comment 4(a)(10)(iii)-9.
A Financial Institution reports that the income data point is not applicable:
a. For a Covered Loan to or an Application from a Financial Institution’s own employee,
even though the Financial Institution relied on the employee’s income in making its
credit decision;
b. For a Covered Loan that is secured by or an Application that was proposed to be secured
by a Multifamily Dwelling;
c. If the applicant or co-applicant, if applicable, is not a natural person (e.g., a corporation,
partnership, or trust); or
d. If the Financial Institution did not consider or would not have considered income in
making the credit decision. 12 CFR 1003.4(a)(10)(iii); comments 4(a)(10)(iii)-3, -6, -7,
and -8.

5.2

Universal loan identifier (ULI)

A Financial Institution must report a universal loan identifier (ULI) for a Covered Loan or
Application. The ULI:

CONSUMER FINANCIAL PROTECTION BUREAU

1. Is a number that a Financial Institution assigns to the Covered Loan or Application.
12 CFR 1003.4(a)(1)(i).
2. Must begin with the Financial Institution’s Legal Entity Identifier (LEI), 12 followed by up to
23 additional letters and/or numbers that the Financial Institution assigns, and end with a
two-character check digit. 13 12 CFR 1003.4(a)(1)(i)(A)-(C). Essentially, the ULI is the
Financial Institution’s LEI plus a loan or application number plus the two-character check
digit (in that order).
3. Cannot include information that could be used to identify the applicant or borrower directly,
such as the applicant’s or borrower’s name, date of birth, Social Security number, official
government-issued driver’s license or identification number, alien registration number,
government passport number, or employer or taxpayer identification number. Comment
4(a)(1)(i)-2.
4. Must be unique within the Financial Institution and must be used for only one Covered Loan
or Application. Comment 4(a)(1)(i)-1.
To ensure compliance, a Financial Institution must:
1. Ensure that its branches do not use the same ULI to refer to multiple Covered Loans or
Applications.
2. Assign a new ULI to a Refinancing or Application for Refinancing (i.e., not use the ULI from
the loan that is being refinanced).
3. For a purchased Covered Loan, use the ULI that was assigned to the Covered Loan by a
Financial Institution that previously reported the Covered Loan. 12 CFR 1003.4(a)(1)(i)(D).

The LEI is a unique, 20-digit alphanumeric identifier issued by a utility endorsed by the LEI Regulatory Oversight
Committee or endorsed or otherwise governed by the Global LEI Foundation or a successor organization. A
Financial Institution can go to the Global LEI Foundation website, https://www.gleif.org/services/louservices/issue-new-lei, to obtain an LEI.

The two-character check digit is used to validate the ULI. It is calculated using certain standards published by the
International Organization for Standardization (www.iso.org). For more information on the two-character check
digit, including the methodology for generating a check digit, see appendix C to the 2015 HMDA Rule.

CONSUMER FINANCIAL PROTECTION BUREAU

If the Financial Institution that originated the Covered Loan did not assign a ULI, the
Financial Institution that purchases the Covered Loan must assign a ULI.
A Financial Institution may use a previously reported ULI if an applicant asks the Financial
Institution: (a) to reinstate a counteroffer that the applicant did not accept earlier in the same
calendar year; or (b) to reconsider an Application that was denied, withdrawn, or closed for
incompleteness earlier during the same calendar year. However, a Financial Institution must
not use a ULI previously reported if it reinstates or reconsiders an Application that was reported
in a prior calendar year. 12 CFR 1003.4(a)(1)(i)(E); comment 4(a)(1)(i)-4.

5.3

Application date

Except for a purchased Covered Loan, a Financial Institution reports the Application date,
which is reported as either the date that the Application was received or the date on the
Application form. 12 CFR 1003.4(a)(1)(ii). Although a Financial Institution need not choose the
same approach for reporting Application date for its entire HMDA submission, it should be
generally consistent, such as by routinely using one approach within a particular division of the
Financial Institution or for a category of loans. Comment 4(a)(1)(ii)-1.
If a Financial Institution chooses to report the date shown on the Application form and the
Financial Institution retains multiple versions of the form, the Financial Institution reports the
date shown on the first form it received that constitutes an Application under the 2015 HMDA
Rule. Comment 4(a)(1)(ii)-1.
For an Application that was not submitted directly to the Financial Institution, the Financial
Institution may report the date the Application was received by the party that initially received
the Application, the date the Application was received by the Financial Institution, or the date
shown on the Application form. Comment 4(a)(1)(ii)-2.
If, within the same calendar year, an applicant asks a Financial Institution to reinstate a
counteroffer that the applicant previously did not accept (or asks the Financial Institution to
reconsider an Application that was denied, withdrawn, or closed for incompleteness), the
reportable Application date depends on whether the Financial Institution reports the request as
the continuation of the earlier transaction using the earlier transaction’s ULI or as a new
transaction with a new ULI. If the Financial Institution treats the request for reinstatement or

CONSUMER FINANCIAL PROTECTION BUREAU

reconsideration as a new transaction, it reports the date of the request as the Application date.
If the Financial Institution does not treat the request for reinstatement or reconsideration as a
new transaction, it reports the original Application date. Comment 4(a)(1)(ii)-3.
For a purchased Covered Loan, a Financial Institution reports that this data point is not
applicable. 12 CFR 1003.4(a)(1)(ii).

5.4

Application channel

Except for purchased Covered Loans, a Financial Institution reports both of the following:
1. Whether or not the applicant or borrower submitted the Application directly to
the Financial Institution. 12 CFR 1003.4(a)(33)(i). For example, the Application was
submitted directly to the Financial Institution if the mortgage loan originator identified in
the data point required by 12 CFR 1003.4(a)(34) and discussed in Section 5.30 was the
reporting Financial Institution’s employee when the originator performed the origination
activities for the Covered Loan or Application. The Application was also submitted directly
to the Financial Institution if the Financial Institution directed the applicant to a third-party
agent (e.g., a credit union service organization) that performed loan origination activities on
behalf of the reporting Financial Institution and the third-party agent did not assist the
applicant with applying for Covered Loans with other institutions. Comment 4(a)(33)(i)-1.
If an applicant contacted and completed an Application with a broker or correspondent that
forwarded the Application to the Financial Institution for approval, the Application was not
submitted directly to the Financial Institution. Comment 4(a)(33)(i)-1.iii.
2. Whether or not the obligation arising from the Covered Loan or Application
was or would have been initially payable to the Financial Institution.
12 CFR 1003.4(a)(33)(ii). An obligation was initially payable to the Financial Institution if
the obligation was initially payable on the face of the note or contract to the Financial
Institution that is reporting the Covered Loan or Application. Comment 4(a)(33)(ii)-1. For
an Application that is withdrawn, denied, or closed for incompleteness, a Financial
Institution reports that the requirement is not applicable if the Financial Institution had not
determined, at the time it took final action on the Application, whether the loan would be
initially payable to the Financial Institution. Comment 4(a)(33)(ii)-2.
For purchased Covered Loans, a Financial Institution reports that this data point is not
applicable. 12 CFR 1003.4(a)(33).

CONSUMER FINANCIAL PROTECTION BUREAU

5.5

Preapproval request

A Financial Institution reports whether or not the Application or Covered Loan involved a
preapproval request for a Home Purchase Loan under a Preapproval Program.
12 CFR 1003.4(a)(4). For all of the following, a Financial Institution reports that the
Application or Covered Loan did not involve a preapproval request: a purchased Covered Loan;
an Open-End Line of Credit or Application for an Open-End Line of Credit; a Reverse Mortgage
or an Application for a Reverse Mortgage; an Application for a Covered Loan that is denied; an
Application that is closed for incompleteness or withdrawn; an Application or Covered Loan for
any purpose other than Home Purchase Loan; and for a Covered Loan secured by a Multifamily
Dwelling. Comment 4(a)(4)-2.

5.6

Loan type

A Financial Institution reports whether the Covered Loan is or the Application was for a Covered
Loan that would have been:
1. Insured by the Federal Housing Administration;
2. Guaranteed by the Veterans Administration;
3. Guaranteed by the Rural Housing Service or the Farm Service Agency; or
4. Not insured or guaranteed by any of these Federal agencies (i.e., conventional).
12 CFR 1003.4(a)(2).

5.7

Loan purpose

A Financial Institution records and reports the Covered Loan’s or Application’s purpose,
12 CFR 1003.4(a)(3), using one of the following:
1. Home Purchase Loan. A Home Purchase Loan is a Closed-End Mortgage Loan or OpenEnd Line of Credit that is for the purpose, in whole or part, of purchasing a Dwelling.
12 CFR 1003.2(j). A Home Purchase Loan includes: (a) a Closed-End Mortgage Loan or
Open-End Line of Credit secured by one Dwelling and used to purchase another Dwelling;

CONSUMER FINANCIAL PROTECTION BUREAU

(b) a combined construction-to-permanent loan that is secured by a Dwelling; (c) a
permanent loan that replaces a construction loan if the permanent loan is secured by a
Dwelling; and (d) a Dwelling-secured subordinate mortgage loan that finances some or all of
the home purchaser’s down payment. Comments 2(j)-1, -3, and -4.
An assumption is a Home Purchase Loan when: (a) the assumption is a Closed-End
Mortgage or Open-End Line of Credit; (b) the Financial Institution enters into a written
agreement accepting a new borrower as the obligor on an existing obligation; and (c) the
purpose is to finance the new borrower’s purchase of the Dwelling securing the existing
obligation. An assumption is not a Home Purchase Loan if the new borrower assumes the
existing borrower’s obligation after acquiring title to the Dwelling securing the existing
obligation because the purpose is not to finance the new borrower’s purchase of the
Dwelling. The assumption would be reported using a loan purpose other than Home
Purchase Loan. Comment 2(j)-5.

Example
Borrower A obtains title to Owner A’s Dwelling after assuming Owner A’s existing debt
obligation. Borrower A’s transaction is a Home Purchase Loan. In contrast, Borrower B
obtains title to Owner B’s Dwelling in Year 1 and in Year 2 assumes Owner B’s existing debt
obligation. Borrower B’s transaction is not a Home Purchase Loan.

2. Home Improvement Loan. A Home Improvement Loan is a Closed-End Mortgage Loan
or Open-End Line of Credit that is for the purpose, in whole or part, of repairing,
rehabilitating, remodeling, or improving a Dwelling or the real property on which the
Dwelling is located. 12 CFR 1003.2(i). For example, a Home Improvement Loan includes:
(a) a Covered Loan if any of the proceeds are used for repair, rehabilitation, remodeling, or
improvement of the Dwelling or the real property on which the Dwelling securing the
Covered Loan is located, even if the remainder is used for totally unrelated purposes, such as
college tuition; (b) a Covered Loan used to install a swimming pool, construct a garage, or
improve landscaping on the real property on which the Dwelling securing the Covered Loan
is located; and (c) a Covered Loan used to improve a mixed-use Dwelling if the proceeds are
used either to improve the entire property (e.g., to replace a heating system that services the
entire structure) or primarily to improve the residential portion of the Dwelling. Comments
2(i)-1, -2, and -4.
3. Refinancing. A Refinancing is a Closed-End Mortgage Loan or Open-End Line of Credit in
which a new Dwelling-secured debt obligation satisfies and replaces an existing Dwelling-

CONSUMER FINANCIAL PROTECTION BUREAU

secured debt obligation by the same borrower. 12 CFR 1003.2(p). Generally, whether the
new debt obligation satisfies and replaces an existing obligation is determined by reference
to the parties’ contract and applicable law. In order for a Covered Loan to be a Refinancing,
both the new and existing transactions must be secured by a Dwelling. Only one borrower
need be the same on the new and existing transactions. Comments 2(p)-1, -3, and -4.
4. Cash-out Refinancing. A Financial Institution reports a Covered Loan or an Application
as a cash-out Refinancing if it is a Refinancing and the Financial Institution considered it to
be a cash-out Refinancing when processing the Application or setting the terms under its or
an investor’s guidelines. For example, if a Financial Institution considers a loan product to
be a cash-out Refinancing under an investor’s guidelines because of the amount of cash
received by the borrower at closing or account opening, it reports the transaction as a cashout Refinancing. If a Financial Institution does not distinguish between a cash-out
Refinancing and a Refinancing under its own guidelines, sets the terms of all Refinancings
without regard to the amount of cash received by the borrower at loan closing or account
opening, and does not offer loan products under investor guidelines, it reports all
Refinancings as Refinancings, not cash-out Refinancings. Comment 4(a)(3)-2.
5. Other. If a Covered Loan is not, or an Application is not for, a Home Purchase Loan, a
Home Improvement Loan, a Refinancing, or a cash-out Refinancing, a Financial Institution
reports the purpose as “other.” For example, if a Covered Loan is for the purpose of paying
educational expenses, the Financial Institution reports the purpose as “other.” A Financial
Institution also uses “other” if the Covered Loan is or the Application is for a Refinancing
but, under the terms of the existing credit agreement, the Financial Institution was
unconditionally obligated to refinance the obligation subject to conditions within the
borrower’s control. Comment 4(a)(3)-4.
The following chart illustrates the reportable purpose for multiple-purpose Covered Loans. See
also comment 4(a)(3)-3.

CONSUMER FINANCIAL PROTECTION BUREAU

Multiple Purposes

Reportable Purpose

Home Purchase Loan and Home Improvement
Loan

Home Purchase Loan

Home Purchase Loan and Refinancing

Home Purchase Loan

Home Purchase Loan and cash-out Refinancing

Home Purchase Loan

Home Purchase Loan and other

Home Purchase Loan

Home Improvement Loan and Refinancing

Refinancing

Home Improvement Loan and cash-out
Refinancing

Cash-out Refinancing

Refinancing and other

Refinancing

Cash-out Refinancing and other

Cash-out Refinancing

Home Improvement Loan and other

Home Improvement Loan

A Financial Institution may rely on an applicant’s oral or written statement regarding the
proposed use of the loan proceeds. For example, a Financial Institution could use a check box or
a purpose line on an Application form. If an applicant provides no statement as to the proposed
use of the proceeds, and the Covered Loan is not a Home Purchase Loan, cash-out Refinancing,
or Refinancing, a Financial Institution reports the Covered Loan as for an “other” purpose.
Comment 4(a)(3)-1.

5.8

Loan amount

A Financial Institution must report the loan amount for the Covered Loan or Application.
12 CFR 1003.4(a)(7). The first chart below provides information on determining the loan
amount that is reported for Covered Loans. The second chart below provides information on
determining the reportable loan amount for transactions that involve multiple purposes,
counteroffers, and Applications that do not result in the Financial Institution originating a
Covered Loan.

CONSUMER FINANCIAL PROTECTION BUREAU

If the Covered Loan is a:

The reportable loan amount is the:

Closed-End Mortgage Loan other than a
purchased Closed-End Mortgage Loan,
assumption, or a Reverse Mortgage

Amount to be repaid as disclosed on the legal
obligation. 12 CFR 1003.4(a)(7)(i); comment
4(a)(7)-5.
Unpaid principal balance at the time of purchase
or assumption. 12 CFR 1003.4(a)(7)(i);
comment 4(a)(7)-5.

Purchased Closed-End Mortgage Loan or
assumption of a Closed-End Mortgage Loan
Open-End Line of Credit (including a purchased
Open-End Line of Credit and assumption of an
Open-End Line of Credit) other than a Reverse
Mortgage

Reverse Mortgage

Refinancing

Amount of credit available to borrower under the
terms of plan. 12 CFR 1003.4(a)(7)(ii); comment
4(a)(7)-6.
Initial principal limit (as determined pursuant to
section 255 of the National Housing Act and
implementing regulations and mortgagee letters
issued by HUD). 12 CFR 1003.4(a)(7)(iii);
comment 4(a)(7)-9.
Loan amount for new debt obligation based on
the type of Covered Loan (see above). Comment
4(a)(7)-7.

If the transaction involves:

Report the:

A counteroffer that is accepted for an amount that
is different from the amount for which the
applicant applied

Loan amount granted for the Covered Loan.
Comment 4(a)(7)-1.

A counteroffer for an amount different from the
amount for which the applicant applied, and the
applicant did not accept or failed to respond

Amount for which applicant applied. Comment
4(a)(7)-1.

An approved but not accepted Application
(including an approved but not accepted
preapproval request)

Approved loan amount. Comment 4(a)(7)-2.

CONSUMER FINANCIAL PROTECTION BUREAU

Application (including a preapproval request) that
was denied, closed for incompleteness, or
withdrawn

Amount initially requested. Comment 4(a)(7)-3.

Loan proceeds that will be used for more than
one purpose

Entire loan amount for the Covered Loan, even if
only a portion of the proceeds is intended for the
reported purpose. Comment 4(a)(7)-4.

5.9

Loan term

A Financial Institution reports the loan term as the scheduled number of months after which the
legal obligation will mature or terminate or would have matured or terminated.
12 CFR 1003.4(a)(25). If a Covered Loan or Application includes a schedule with repayment
periods measured in a unit of time other than months, the Financial Institution reports the loan
term in months using an equivalent number of whole months without regard for any remainder.
Comment 4(a)(25)-2.
For a fully amortizing Covered Loan, the number of months after which the legal obligation
matures is the number of months in the amortization schedule, ending with the final payment.
Covered Loans that do not fully amortize during the maturity term, such as Covered Loans with
a balloon payment, are reported using the maturity term rather than the amortization term.
Comment 4(a)(25)-1.
For a purchased Covered Loan, a Financial Institution reports the number of months after
which the legal obligation matures as measured from the Covered Loan’s origination. Comment
4(a)(25)-3.
For an Open-End Line of Credit with a definite term, a Financial Institution reports the number
of months from account opening until the account termination date, including both the draw
and repayment period (if any). Comment 4(a)(25)-4.
For a Covered Loan or Application without a definite term, such as a Reverse Mortgage, a
Financial Institution reports that the data point is not applicable. Comment 4(a)(25)-5.

CONSUMER FINANCIAL PROTECTION BUREAU

5.10 Action taken and date
A Financial Institution reports its action taken and the date of its action. 12 CFR 1003.4(a)(8).
The action taken is reported as one of the following: (1) loan originated; (2) application
approved but not accepted; (3) application denied; (4) application withdrawn; (5) file closed for
incompleteness; (6) loan purchased; (7) preapproval request denied; or (8) preapproval request
approved but not accepted. Comment 4(a)(8)(i).
The Action Taken chart in Attachment B provides additional information on how to determine
the reportable action taken and date of action taken. See also Comment 4(a)(8)(i) and
4(a)(8)(ii).

5.11 Reason for denial
For an Application that it denied, a Financial Institution must report the principal reasons (up
to four) that it denied the Application. 12 CFR 1003.4(a)(16); comment 4(a)(16)-1. For all other
transactions, a Financial Institution reports that the data point is not applicable. Comment
4(a)(16)-4.
If a Financial Institution provided the reason or reasons it denied the Application using the
model form contained in appendix C to Regulation B (Form C–1, Sample Notice of Action Taken
and Statement of Reasons) or a similar form, the Financial Institution reports the reason or
reasons specified on that form, including reporting the “Other” reason or reasons that were
specified on the form, if applicable. If a Financial Institution provided a disclosure of the
applicant’s right to a statement of specific reasons using the model form contained in appendix
C to Regulation B (Form C–5, Sample Disclosure of Right to Request Specific Reasons for Credit
Denial) or a similar form, or provided the denial reasons orally under Regulation B, the
Financial Institution reports the principal reasons it denied the Application. Comment 4(a)(16)3.
The Financial Institution reports only the principal reason or reasons it denied the Application,
even if there are fewer than four reasons. For example, if a Financial Institution denied the
Application because of the applicant’s credit history and debt-to-income ratio, the Financial
Institution only reports these two principal reasons. The reason or reasons reported must be

CONSUMER FINANCIAL PROTECTION BUREAU

specific and accurately describe the principal reason or reasons the Financial Institution denied
the Application. Comment 4(a)(16)-1.
If a Financial Institution denied a preapproval request under a Preapproval Program, the
Financial Institution must report the principal reason or reasons (up to four) that it denied the
preapproval request. Comment 4(a)(16)-2.

5.12 Property address and location
A Financial Institution reports the following information about the location of the property
securing the Covered Loan or, for an Application, proposed to secure the Covered Loan:
1. Property address. 12 CFR 1003.4(a)(9)(i). For Applications that did not result in an
origination, the address corresponds to the location of the property proposed to secure
the loan as identified by the applicant. For Covered Loans, the address corresponds to
the property identified in the legal obligation. Comment 4(a)(9)(i)-1.
2. Location of the property by state, county, and census tract. The Financial
Institution is required to report the location by state, county, and census tract only if the
property is located in an MSA or metropolitan division (MD) 14 in which the Financial
Institution has a home or Branch Office or if the Financial Institution is a bank or savings
association required to report data on small business, small farm, and community
development lending under the Community Reinvestment Act. A Financial Institution
must include the census tract if the property is located in a county with a population of
more than 30,000 according to the most recent decennial census.
12 CFR 1003.4(a)(9)(ii). See also 12 CFR 1003.4(e).
If a Covered Loan is related to more than one property, but only one property secures or, for an
Application, would have secured the Covered Loan, a Financial Institution reports the property
address and location of the property that secures or would have secured the Covered Loan. A

Metropolitan divisions (MDs) are metropolitan divisions of MSAs as defined by the OMB. 12 CFR 1003.2(m)(2).
For more information on MDs and MSAs, see https://www.ffiec.gov/census/default.aspx and
https://www.ffiec.gov/geocode/help1.aspx.

CONSUMER FINANCIAL PROTECTION BUREAU

Financial Institution does not report the property address or location for any properties that do
not secure or would not have secured the Covered Loan. Comment 4(a)(9)-1.
If more than one property secures the Covered Loan or, in the case of an Application, would
have secured the Covered Loan, a Financial Institution reports the Covered Loan or Application
in a single entry on its LAR and provides the property address and location for only one
property. The Financial Institution can choose the property for which it reports this
information, but it must choose a property that secures the Covered Loan (or, in the case of an
Application, would have secured the Covered Loan) and that includes a Dwelling. If a single
Multifamily Dwelling has more than one postal address, a Financial Institution reports one of
the postal addresses. Comments 4(a)(9)-2 and -3.
If other data points require the Financial Institution to report specific information about
property securing or involved with a Covered Loan or Application, the Financial Institution
reports the information that relates to the property for which it has provided the address and
location for these data points. Comment 4(a)(9)-2. For purposes of this guide, the property for
which the Financial Institution has provided the address and location for these data points is
called the Identified Property.
If the site for a Manufactured Home has not been identified, a Financial Institution may report
that the data points for the property location are not applicable. Comment 4(a)(9)-5. If the
property address of the property securing the Covered Loan is unknown, a Financial Institution
reports that the data point for the property address is not applicable. Comment 4(a)(9)(i)-3.

5.13 Construction method
A Financial Institution reports the construction method for the Identified Property, using one of
the following:
1. Site-built; or
2. Manufactured Home. 12 CFR 1003.4(a)(5).
A residential structure that satisfies the definition of “manufactured home” under HUD’s
regulations, 24 CFR 3280.2, is reported as a Manufactured Home. 12 CFR 1003.2(l). A

CONSUMER FINANCIAL PROTECTION BUREAU

Manufactured Home will generally bear a HUD Certification Label and data plate noting
compliance with the Federal standards. Comment 2(l)-2.
Modular homes and factory-built homes that do not meet the definition of “manufactured
home” in HUD’s regulations are not Manufactured Homes under the 2015 HMDA Rule and are
reported as site-built, regardless of whether they are on-frame or off-frame modular homes.
Modular homes comply with local or other recognized buildings codes rather than standards
established by the National Manufactured Housing Construction and Safety Standards Act, 42
U.S.C. 5401 et seq. Modular homes are not required to have HUD Certification Labels under 24
CFR 3280.11 or data plates under 24 CFR 3280.5, but may have a certification from a State
licensing agency that documents compliance with State or other applicable building codes.
Dwellings built using prefabricated components assembled at the Dwelling’s permanent site
should also be reported as site-built. Comment 4(a)(5)-1.
For a Multifamily Dwelling, the Financial Institution should report the construction method as
site-built unless the Multifamily Dwelling is a Manufactured Home community, in which case
the Financial Institution should report the construction method as Manufactured Home.
Comment 4(a)(5)-2.

5.14 Occupancy type
A Financial Institution reports the occupancy type for the Identified Property, using one of the
following:
1. Principal residence. An applicant or borrower can have only one principal residence at a
time. However, if an applicant or borrower buys or builds a new Dwelling that will become
the applicant’s or borrower’s principal residence within a year or upon the completion of
construction, the new Dwelling is considered the principal residence for this data point.
Comment 4(a)(6)-2. For purchased Covered Loans, a Financial Institution may report the
occupancy type as “principal residence” unless the loan documents or Application indicate
that the property will not be occupied as a principal residence. Comment 4(a)(6)-5.
2. Second residence. A property is a second residence if the property is or will be occupied
by the applicant or borrower for a portion of the year and is not the applicant’s or borrower’s
principal residence. For example, if a person purchases a property, occupies the property for
a portion of the year, and rents the property for the remainder of the year, the property is a

CONSUMER FINANCIAL PROTECTION BUREAU

second residence. Similarly, if a person occupies a property near his or her place of
employment on weekdays, but the person returns to his or her principal residence on
weekends, the property near the person’s place of employment is a second residence.
Comment 4(a)(6)-3.
3. Investment property. A property is an investment property if the applicant or borrower
does not occupy the property. For example, if a person purchases a property, does not
occupy the property, and generates income by renting the property, the property is an
investment property. Similarly, if a person purchases a property, does not occupy the
property, and does not generate income by renting the property, but intends to generate
income by selling the property, the property is an investment property. Comment 4(a)(6)-4.
If a corporation purchases a property that is a Dwelling and uses it for the long-term
residence of its employees, the property is an investment property, even if the corporation
considers the property as owned for business purposes rather than investment purposes,
does not generate income by renting the property, and does not intend to generate income
by selling the property. If the property is for transitory use by employees, the property
would not be considered a Dwelling. Comment 4(a)(6)-4.

5.15 Lien status
A Financial Institution reports the lien status of the lien on the Identified Property as either a
first lien or a subordinate lien. 12 CFR 1003.4(a)(14).
The 2015 HMDA Rule requires a Financial Institution to report the lien status for Covered
Loans it purchased. For purchased Covered Loans, lien status is determined by reference to the
best information readily available to the Financial Institution at the time of purchase.
For Applications and originations of Covered Loans, lien status is determined by reference to the
best information readily available to the Financial Institution at the time final action is taken
and to the Financial Institution’s own procedures. When reporting lien status, Financial
Institutions may rely on title searches they routinely obtain, but the 2015 HMDA Rule does not
require Financial Institutions to obtain title searches solely to comply with Regulation C.
Financial Institutions may rely on other information that is readily available to them at the time
final action is taken and that they reasonably believe is accurate, such as the applicant’s
statement on the Application form or the applicant’s credit report. Comment 4(a)(14)-1.

CONSUMER FINANCIAL PROTECTION BUREAU

Examples
An applicant applies for a Covered Loan from Ficus Bank and indicates on the Application form
that there is a mortgage on the Dwelling that will secure the applicant’s Covered Loan. Ficus
Bank obtains the applicant’s credit report, and it shows that the applicant has a mortgage loan.
The existing mortgage will not be paid off as part of the transaction. Ficus Bank may assume
that the transaction involves a subordinate lien for purposes of HMDA reporting.

An applicant applies for a loan from Ficus Bank to refinance the applicant’s existing home
mortgage loan. The existing loan is and the new loan will be secured by the applicant’s principal
residence. The applicant also has an Open-End Line of Credit for $20,000 secured by the
principal residence. Ficus Bank’s practice in such a case is to ensure that it will have first-lien
position through a subordination agreement with the holder of the lien securing the Open-End
Line of Credit. Ficus Bank may assume that the transaction involves a first lien for purposes of
HMDA reporting.

5.16 Manufactured home information
If a Dwelling on the Identified Property is a Manufactured Home and not a Multifamily Dwelling
(i.e., it has four or fewer individual dwelling units), the Financial Institution must report both:
1. Secured Property Type. Whether the Covered Loan is or the Application would have
been secured by: (a) both a Manufactured Home and land; or (b) a Manufactured Home and
not land. 12 CFR 1003.4(a)(29). A Financial Institution reports that a Covered Loan is or
would have been secured only by a Manufactured Home and not land if the Covered Loan is
not secured by the land, even if the Manufactured Home is considered real property under
applicable State law. Comment 4(a)(29)-1.
2. Land Property Interest. Information about the applicant’s or borrower’s property
interest in the land on which the Manufactured Home is or would have been located,
reported as one of the following:
a. Direct ownership. An applicant or borrower has a direct ownership interest in the land
on which the Dwelling is or is to be located when it has more than a possessory real

CONSUMER FINANCIAL PROTECTION BUREAU

property ownership interest in the land, such as fee simple ownership. Comment
4(a)(30)-5.
b. Indirect ownership. Indirect land ownership can occur when the applicant or borrower
is or will be a member of a resident-owned community structured as a housing
cooperative in which the occupants own an entity that holds the land underlying the
Manufactured Home community. In such communities, the applicant or borrower may
still have a lease and pay rent for the lot on which his or her Manufactured Home is or
will be located, but the property interest type for such an arrangement should be
reported as indirect ownership if the applicant is or will be a member of the cooperative
that owns the Manufactured Home community’s underlying land. If an applicant resides
or will reside in such a community but is not a member, the property interest type should
be reported as a paid leasehold. Comment 4(a)(30)-1.
c. Paid Leasehold. For example, a paid leasehold occurs when a borrower locates the
Manufactured Home on a lot in which the borrower does not have an ownership interest,
the borrower has a written lease for the lot, and the lease specifies rent payments.
Comment 4(a)(30)-2.
d. Unpaid Leasehold. For example, an unpaid leasehold occurs when the borrower locates
the Manufactured Home on land owned by a family member, does not have a written
lease, and does not have an agreement regarding rent payments. Comment 4(a)(30)-2.
If the Dwelling securing the Covered Loan (or that would have secured the resulting Covered
Loan in the case of an Application) is not a Manufactured Home, the Financial Institution
reports that these data points are not applicable. Comments 4(a)(29)-4 and 4(a)(30)-6. A
Manufactured Home community that is a Multifamily Dwelling is not considered a
Manufactured Home for purposes of reporting these data points. Comment 4(a)(29)-2 and
4(a)(30)-4.

5.17 Property value
For a Covered Loan, a Financial Institution reports the value of the property securing the
Covered Loan. For an Application that did not result in a Covered Loan (other than an
Application that was withdrawn before a credit decision was made or that was closed for
incompleteness), a Financial Institution reports the value of the property proposed to secure the
61

CONSUMER FINANCIAL PROTECTION BUREAU

Covered Loan. 12 CFR 1003.4(a)(28). If an Application was withdrawn before a credit decision
was made or was closed for incompleteness, the Financial Institution reports that the data point
is not applicable, even if the Financial Institution obtained a property value. Comment
4(a)(28)-3.
A Financial Institution reports the property value it relied on in making its credit decision.
12 CFR 1003.4(a)(28). If the Financial Institution relied on an appraisal or other valuation of a
property when calculating the loan-to-value ratio, it reports the value stated in the appraisal or
other valuation on which it relied. If the Financial Institution relied on the purchase price of a
property when calculating the loan-to-value ratio, it reports the purchase price as the property
value. Comment 4(a)(28)-1.

Example
Ficus Bank obtains an appraisal that values a parcel of property at $100,000, an automated
valuation model report that values the property at $110,000, and a broker price opinion that
values the property at $105,000. When approving the Application, Ficus Bank relies on the
appraisal. It reports the property value as $100,000.

The 2015 HMDA Rule does not require a Financial Institution to obtain a property valuation or
to rely on a property value in making a credit decision. A Financial Institution reports that this
data point is not applicable if it does not rely on property value when making the credit decision.
Comment 4(a)(28)-4.

5.18 Total units
For a Covered Loan, a Financial Institution reports the number of individual Dwelling units
related to the property securing the Covered Loan. For an Application, it reports the number of
individual Dwelling units related to the property proposed to secure the Covered Loan.
12 CFR 1003.4(a)(31).
For an Application or Covered Loan secured by a Manufactured Home community, the Financial
Institution should include the total number of Manufactured Home sites that secure the loan
and are available for occupancy, regardless of whether the sites are occupied or have
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Manufactured Homes attached. For a loan secured by a single Manufactured Home that is or
will be located in a Manufactured Home community, the Financial Institution should report one
individual Dwelling unit. Comment 4(a)(31)-2.
For a Covered Loan secured by a condominium or cooperative complex, the Financial
Institution reports the total number of individual Dwelling units securing the Covered Loan or
proposed to secure the Covered Loan in the case of an Application. Comment 4(a)(31)-3.
A Financial Institution may include recreational vehicle pads, manager apartments, rental
apartments, site-built homes, or other rentable space that are ancillary to the operation of the
secured property if it considers such units under its underwriting guidelines or investor
guidelines, or if it tracks the number of such units for its own internal purposes. Comment
4(a)(31)-2.
A Financial Institution may rely on the best information readily available to it at the time action
is taken and on the Financial Institution’s own procedures. Information readily available could
include, for example, information provided by an applicant that the Financial Institution
reasonably believes, information contained in a property valuation or inspection, or information
obtained from public records. Comment 4(a)(31)-4.

5.19 Multifamily affordable units
If the property securing a Covered Loan or proposed to secure an Application includes a
Multifamily Dwelling, the Financial Institution must provide the number of individual Dwelling
units that are income-restricted pursuant to Federal, State, or local affordable housing

CONSUMER FINANCIAL PROTECTION BUREAU

programs. 15 12 CFR 1003.4(a)(32). For a Covered Loan that is not secured by a Multifamily
Dwelling and for an Application that would not have been secured by a Multifamily Dwelling,
the Financial Institution reports that this data point is not applicable. Comment 4(a)(32)-6.
Affordable housing income-restricted units are individual Dwelling units that have restrictions
based on the occupants’ income level pursuant to restrictive covenants encumbering the
property. The restrictive covenants may be evidenced by a use agreement, regulatory
agreement, land use restrictions, or a similar agreement. Rent control or rent stabilization laws,
the acceptance of Housing Choice Vouchers, and other similar forms of portable housing
assistance that are tied to an occupant and not an individual dwelling unit are not affordable
housing income-restricted Dwelling units for purposes of reporting. Comment 4(a)(32)-1.
A Financial Institution may rely on the best information readily available to it at the time final
action is taken and on the Financial Institution’s own procedures when reporting. Information
readily available could include, for example, information provided by an applicant that the
Financial Institution reasonably believes, information contained in a property valuation or
inspection, or information obtained from public records. Comment 4(a)(32)-5.

Examples of Federal programs and funding sources that may result in reportable units include but are not limited
to: (1) affordable housing programs pursuant to Section 8 of the United States Housing Act of 1937; (2) public
housing; (3) the HOME Investment Partnerships program; (4) the Community Development Block Grant program;
(5) multifamily tax subsidy project funding through tax-exempt bonds or tax credits; (6) Federal Home Loan Bank
affordable housing program funding; (7) Rural Housing Service multifamily housing loans and grants; and (8)
project-based vouchers under 24 CFR part 983. Comment 4(a)(32)-2.
Examples of State and local sources that may result in reportable units include but are not limited to: (1) State or
local administration of Federal funds or programs; (2) State or local funding programs for affordable housing or
rental assistance, including programs operated by independent public authorities; (3) inclusionary zoning laws; and
(4) tax abatement or tax increment financing contingent on affordable housing requirements. Comment 4(a)(32)-3.

CONSUMER FINANCIAL PROTECTION BUREAU

5.20 Debt-to-income ratio
Except for purchased Covered Loans, if the Financial Institution relied on the applicant’s or
borrower’s DTI ratio when making its credit decision, the Financial Institution reports the DTI
ratio on which it relied in making the credit decision. 12 CFR 1003.4(a)(23). The DTI ratio is
the ratio of the applicant’s or borrower’s total monthly debt to total monthly income.

Example
Ficus Bank calculates the applicant’s DTI ratio twice−once according to its own requirements
and once according to an investor’s requirements. Ficus Bank relies on the DTI ratio calculated
according to the investor’s requirements when it makes the credit decision. Ficus Bank reports
the DTI ratio calculated in accordance with the investor’s requirements. Comment 4(a)(23)-1.

A Financial Institution relied on the applicant’s or borrower’s DTI ratio in making the credit
decision if the DTI ratio was a factor in the credit decision, even if it was not a dispositive factor.
For example, if the DTI ratio was one of multiple factors in a Financial Institution’s credit
decision, the Financial Institution relied on the DTI ratio, even if the Financial Institution
denied the Application because one or more underwriting requirements other than the DTI ratio
were not satisfied. Comment 4(a)(23)- 2.
The 2015 HMDA Rule does not require a Financial Institution to calculate a DTI ratio and does
not require a Financial Institution to rely on an applicant’s or borrower’s DTI ratio in making a
credit decision. Comment 4(a)(23)-4.
A Financial Institution reports that this data point is not applicable:
1. If it made a credit decision without relying on a DTI ratio;
2. If the Application file was closed for incompleteness (even if a DTI ratio was calculated);
3. For an Application that was withdrawn before a credit decision was made (even if a DTI
ratio was calculated);
4. If the applicant and co-applicant, if applicable, are not natural persons;

CONSUMER FINANCIAL PROTECTION BUREAU

5. For a Covered Loan that is secured, or an Application that is proposed to be secured, by a
Multifamily Dwelling;
6. For a purchased Covered Loan. Comments 4(a)(23)-3 through -7.

5.21 Combined loan-to-value
Except for a purchased Covered Loan, if the Financial Institution relied on a CLTV ratio when
making its credit decision, the Financial Institution reports the CLTV ratio on which it relied.
The CLTV ratio is the ratio of the total amount of debt secured by the property securing the
Covered Loan (or, for an Application, proposed to secure a Covered Loan) to the value of that
property. 12 CFR 1003.4(a)(24).

Example
Ficus Bank reviews an Application that will be secured by two parcels of real property. It
calculates the CLTV ratio using its own requirements. It also calculates the CLTV ratio using an
investor’s requirements. When making its credit decision, Ficus Bank relies on the CLTV ratio
calculated according to the investor’s requirements. Ficus Bank reports the CLTV ratio
calculated according to the investor’s requirements.

A Financial Institution relied on the CLTV ratio when making the credit decision if the CLTV
ratio was a factor in the credit decision, even if it was not a dispositive factor. For example, if
the CLTV ratio was one of multiple factors in a Financial Institution’s credit decision, the
Financial Institution relied on the CLTV ratio, even if the Financial Institution denied the
Application because one or more underwriting requirements other than the CLTV ratio were not
satisfied. Comments 4(a)(24)-1 and -2.
The 2015 HMDA Rule does not require a Financial Institution to calculate the CLTV ratio and
does not require a Financial Institution to rely on a CLTV ratio in making a credit decision.
Comment 4(a)(24)-4.
A Financial Institution reports that this data point is not applicable:

CONSUMER FINANCIAL PROTECTION BUREAU

1. If it did not rely on a CLTV when making the credit decision;
2. If the Application file was closed for incompleteness (even if a CLTV ratio was
calculated);
3. For an Application that was withdrawn before a credit decision was made (even if a CLTV
ratio was calculated); or
4. For a purchased Covered Loan. Comments 4(a)(23)-3 through -5.

5.22 Credit score information
Except for purchased Covered Loans, a Financial Institution reports the credit score or scores it
relied on in making the credit decision and the name and version of the scoring model used to
generate each reported credit score. 12 CFR 1003.4(a)(15)(i).
The term “credit score” has the same meaning as set forth in the Fair Credit Reporting Act, 15
USC 1681g(f)(2)(A). 12 CFR 1003.4(a)(15)(ii). A “credit score” is a numerical value or a
categorization derived from a statistical tool or modeling system used by a person who makes or
arranges a loan to predict the likelihood of certain credit behaviors, including default. A “credit
score” does not include: (1) any mortgage score or rating of an automated underwriting system
that considers one or more factors in addition to credit information, including loan-to-value
ratio, the amount of down payment, or the consumer’s financial assets; or (2) any other
elements of the underwriting process or underwriting decision. 15 USC 1681g(f)(2)(A).
A Financial Institution relied on a credit score in making the credit decision if the credit score
was a factor in the credit decision, even if it was not a dispositive factor. For example, if a credit
score was one of multiple factors in a Financial Institution’s credit decision, the Financial
Institution relied on the credit score even if the Financial Institution denied the Application
because one or more underwriting requirements other than the credit score were not satisfied.
Comment 4(a)(15)-1.
When a Financial Institution obtained or created two or more credit scores for a single applicant
or borrower but relied on only one score in making the credit decision (e.g., by relying on the
lowest, highest, most recent, or average of all of the scores), the Financial Institution reports the
credit score it actually used. When a Financial Institution relied on multiple scores for the
applicant or borrower (e.g., by relying on a scoring grid that considers each of the scores
67

CONSUMER FINANCIAL PROTECTION BUREAU

obtained or created for the applicant or borrower without combining the scores into a composite
score), the Financial Institution must report one of the credit scores that it relied on in making
the credit decision. In choosing which credit score to report, a Financial Institution need not
use the same approach for its entire HMDA data submission, but it should be generally
consistent (e.g., by routinely using one approach within a particular division of the Financial
Institution or for a category of Covered Loans). The Financial Institution reports the name and
version of the credit-scoring model for the score reported. Comment 4(a)(15)-2.
If a transaction involved more than one applicant and the Financial Institution relied on a single
credit score in making the credit decision, the Financial Institution reports that credit score for
either the applicant or the first co-applicant. If a transaction involved more than one applicant
and a Financial Institution relied on separate credit scores for each applicant, it reports the
credit score it relied on for the applicant and the credit score it relied on for the first coapplicant. Comment 4(a)(15)-3.
A Financial Institution reports that the credit score data point is not applicable:
1. For purchased Covered Loans;
2. If the Financial Institution did not rely on a credit score;
3. If the Application file was closed for incompleteness (even if a credit score was obtained
or created);
4. If an Application was withdrawn before a credit decision was made (even if a credit score
was obtained or created); or
5. If the applicant and co-applicant, if applicable, are not natural persons. Comments
4(a)(15)-4 through -7.

5.23 Automated underwriting system
information
Except for purchased Covered Loans, a Financial Institution reports the name of the Automated
Underwriting System (AUS), as defined below, that it used to evaluate the Application and the
AUS result generated by that AUS. 12 CFR 1003.4(a)(35)(i). A Financial Institution must report

CONSUMER FINANCIAL PROTECTION BUREAU

this information only if the Financial Institution used an AUS to evaluate the Application.
Comment 4(a)(35)-4.
For purposes of the 2015 HMDA Rule, an Automated Underwriting System or AUS is an
electronic tool:
1. Developed by a securitizer, Federal government insurer, or Federal government
guarantor;
2. That provides a result regarding both (a) the applicant’s credit risk; and (b) whether the
loan is eligible to be originated, purchased, insured, or guaranteed by that securitizer,
Federal government insurer, or Federal government guarantor.
12 CFR 1003.4(a)(35)(ii).
In order for a system to be an AUS, the system must provide a result regarding both the credit
risk of the applicant and the eligibility of the loan to be originated, purchased, insured, or
guaranteed by the securitizer, Federal government insurer, or Federal government guarantor
that developed the system being used to evaluate the Application. For example, if a system is an
electronic tool that provides a determination of the loan’s eligibility to be purchased, but the
system does not also provide an assessment of the applicant’s creditworthiness—such as an
evaluation of the applicant’s income, debt, and credit history—the system is not an AUS.
Comment 4(a)(35)-2.
If a Financial Institution has developed its own proprietary system that it uses to evaluate an
Application and the Financial Institution is also a securitizer, the system may be an AUS if it also
meets the other elements of the AUS definition. On the other hand, if a Financial Institution has
developed its own proprietary system that it uses to evaluate an Application but the Financial
Institution is not a securitizer, the system is not an AUS. Comment 4(a)(35)-2.
A Financial Institution that used an AUS to evaluate an Application must report the name of the
AUS it used to evaluate the Application and the result generated by that system regardless of
whether the Financial Institution intends to sell or hold the Covered Loan in its portfolio. For
example, if a Financial Institution used an AUS developed by a securitizer to evaluate an
Application but ultimately did not sell the Covered Loan and instead holds the Covered Loan in
its portfolio, the Financial Institution reports the name of the AUS that the Financial Institution
used to evaluate the Application and the result generated by that system. Comments 4(a)(35)-1.i
and ii.

CONSUMER FINANCIAL PROTECTION BUREAU

If a Financial Institution used more than one AUS to evaluate an Application or if a Financial
Institution used one AUS to evaluate an Application but it generated multiple results, the
Financial Institution must determine which AUS or AUSs and which result or results to
report. To do so, the Financial Institution can use the following steps in the exact order they are
presented below.
1. The Financial Institution must determine whether an AUS that it used to evaluate the
Application matches the loan type it reported for the Application or Covered Loan. For more
information on reporting loan type, see Section 5.6.
2. If the Financial Institution used an AUS that matches loan type (such as Total Scorecard for
an FHA loan), it must determine whether it obtained only one result from that AUS. If the
Financial Institution obtained only one result from the AUS that matches loan type, the
Financial Institution reports the AUS that matches loan type and the result that it obtained
from that AUS.
3. If the Financial Institution did not use an AUS that matches loan type or if it obtained more
than one result from the AUS that matches loan type, the Financial Institution must
determine whether an AUS that it used to evaluate the Application matches the purchaser,
insurer, or guarantor (if any) for the Covered Loan.
4. If the Financial Institution used an AUS that matches the purchaser, insurer, or guarantor
(such as Desktop Underwriter for a Covered Loan that Fannie Mae purchased), it must
determine whether it obtained only one result from that AUS. If the Financial Institution
obtained only one result from the AUS that matches the purchaser, insurer, or guarantor,
the Financial Institution reports the AUS that matches and the result that it obtained from
that AUS.
5. If the Financial Institution did not use an AUS that matches the purchaser, insurer, or
guarantor or it obtained multiple results from an AUS that matches the purchaser, insurer,
or guarantor or loan type, the Financial Institution reports the result it obtained closest in
time to the credit decision and the AUS that generated that result, unless the Financial
Institution obtained multiple results closest in time to the credit decision. For example, a
Financial Institution obtains multiple results closest in time to the credit decision if it
obtains two results at noon on the day immediately before it makes the credit decision and
does not obtain any results at a later time.
6. If the Financial Institution simultaneously obtains multiple results closest in time to the
credit decision, the Financial Institution reports each of the multiple AUS results that it
obtained and the AUSs that generated each of those results up to a total of five results and
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CONSUMER FINANCIAL PROTECTION BUREAU

five AUSs. The Financial Institution will never report more than five results or five AUSs. If
the Financial Institution used more than five AUSs or it obtained more than five results, the
Financial Institution chooses five AUSs and five results to report. Comment 4(a)(35)-3.
The 2015 HMDA Rule does not require a Financial Institution to use an AUS when evaluating an
Application. Comment 4(a)(35)-4. A Financial Institution reports that the AUS data point is
not applicable:
1. If it does not use an AUS to evaluate the Application;
2. When the applicant and co-applicant, if applicable, are not natural persons; or
3. For purchased Covered Loans. Comments 4(a)(35)-4 through -6.

5.24 Interest rate
A Financial Institution reports the interest rate applicable to a Covered Loan or to an
Application that is approved but not accepted. 12 CFR 1003.4(a)(21). For Applications that are
denied, withdrawn or closed for incompleteness, a Financial Institution reports that no interest
rate was applicable. Comment 4(a)(21)-2.
For an:

Application approved but not accepted for fixed
rate Covered Loan subject to Regulation Z’s Loan
Estimate and Closing Disclosure requirements

Application approved but not accepted for a fixed
rate Covered Loan not subject to Regulation Z’s
Loan Estimate and Closing Disclosure
requirements

CONSUMER FINANCIAL PROTECTION BUREAU

For an:

Application approved but not accepted for a
variable-rate Covered Loan subject to Regulation
Z’s Loan Estimate and Closing Disclosure
requirements

Application approved but not accepted for a
variable-rate Covered Loan not subject to
Regulation Z’s Loan Estimate and Closing
Disclosure requirements

Application denied, withdrawn, or closed for
incompleteness
Fixed-rate Covered Loan subject to Regulation
Z’s Loan Estimate and Closing Disclosure
requirements
Fixed-rate Covered Loan not subject to
Regulation Z’s Loan Estimate and Closing
Disclosure requirements
Variable-rate Covered Loan subject to Regulation
Z’s Loan Estimate and Closing Disclosure
requirements

CONSUMER FINANCIAL PROTECTION BUREAU

Report:
Rate stated in Loan Estimate (if no Closing
Disclosure provided) or in Closing Disclosure (if
provided), assuming it accurately reflects the rate
when Financial Institution approved the
Application. Comment 4(a)(21)-2.
Otherwise, if rate was known when Financial
Institution approved the Application, the rate
applicable when Financial Institution approved the
Application. Comment 4(a)(21)-2.
Otherwise, if rate was unknown when Financial
Institution approved the Application, the fullyindexed rate based on the index applicable when
the Financial Institution approved the Application.
Comment 4(a)(21)-3.
If rate was known when Financial Institution
approved the Application, the rate applicable
when Financial Institution approved the
Application. Comment 4(a)(21)-2.
If rate was unknown when Financial Institution
approved the Application, the fully-indexed rate
based on the index applicable when the Financial
Institution approved the Application. Comment
4(a)(21)-3.
Not applicable. Comment 4(a)(21)-2.
Interest rate set forth in Closing Disclosure.
Comment 4(a)(21)-1.
Interest rate applicable at loan closing or account
opening. Comment 4(a)(21)-1.
Interest rate set forth in Closing Disclosure.
Comment 4(a)(21)-1.

For an:

Variable-rate Covered Loan not subject to
Regulation Z’s Loan Estimate and Closing
Disclosure requirements

Report:
If rate was known when Financial Institution
closed loan or opened account, rate applicable at
loan closing or account opening. Comment
4(a)(21)-1.
If rate was unknown when Financial Institution
closed loan or opened account, the fully-indexed
rate based on the index applicable to the Covered
Loan at loan closing or account opening.
Comment 4(a)(21)-3.

5.25 Introductory rate period
For a Covered Loan, a Financial Institution reports the introductory rate period as the number
of months from loan closing or account opening until the first date the interest rate may change.
12 CFR 1003.4(a)(26). For example, if an Open-End Line of Credit contains an introductory or
“teaser” interest rate for two months after the date of account opening and the interest rate may
adjust after that two month period, the Financial Institution reports the number of months as
“2.” Comment 4(a)(26)-1.
For an Application, a Financial Institution reports the number of months from loan closing or
account opening until the first date the interest rate could have changed under the proposed
terms. Comment 4(a)(26)-1.
A Financial Institution reports the number of months based on when the first interest rate
adjustment may occur, even if an interest rate adjustment is not required to occur at that time
and even if the rates that will apply, or the periods for which they will apply, are not known at
loan closing or account opening. For example, if a Closed-End Mortgage Loan has a 30-year
term and is an adjustable-rate product with an introductory interest rate for the first 60 months,
after which the interest rate is permitted but not required to vary, the Financial Institution
reports the number of months as “60.” Comment 4(a)(26)-1.
A Financial Institution is not required to report introductory interest rate periods based on
preferred rates unless the terms of the legal obligation provide that the preferred rate will expire
at a certain defined date. Preferred rates include loan terms that provide that the initial
underlying rate is fixed but that it may increase or decrease upon the occurrence of some future

CONSUMER FINANCIAL PROTECTION BUREAU

event, such as an employee leaving the employ of the Financial Institution, the borrower closing
an existing deposit account with the Financial Institution, or the borrower revoking an election
to make automated payments. Comment 4(a)(26)-2.
A Financial Institution reports that this data point is not applicable for a fixed rate Covered
Loan or an Application for a fixed rate Covered Loan. Comment 4(a)(26)-3.

5.26 Rate spread
For Covered Loans subject to Regulation Z, other than purchased Covered Loans, Reverse
Mortgages, and assumptions, a Financial Institution reports the difference between the Covered
Loan’s annual percentage rate (APR) and a comparable transaction’s average prime offer rate
(APOR) as of the date the Covered Loan’s interest rate was set. 12 CFR 1003.4(a)(12)(i).
If the Covered Loan is an assumption, Reverse Mortgage, a purchased Covered Loan, or is not
subject to Regulation Z, the Financial Institution reports that the data point is not applicable. If
an Application does not result in the Financial Institution originating a Covered Loan for a
reason other than that the Application was approved but not accepted by the applicant, the
Financial Institution reports that the data point is not applicable. Comment 4(a)(12)-7. In the
case of an Application (including a preapproval request) that the Financial Institution approved
but that the applicant did not accept, a Financial Institution must report the difference between
the APR of the Covered Loan that would have resulted had the applicant accepted it and a
comparable transaction’s APOR as of the date the interest rate was set. Comment 4(a)(12)-8.
The APOR is an APR that is derived from average interest rates, points, and other loan pricing
terms currently offered to consumers by a representative sample of creditors for mortgage loans
that have low-risk pricing characteristics. 12 CFR 1003.4(a)(12)(ii). APORs for a broad range of
transactions are published on the FFIEC’s website at http://www.ffiec.gov/hmda. The APORs,
which are updated at least weekly, are in tables titled “Average Prime Offer Rates-Fixed” and
“Average Prime Offer Rates-Adjustable.” The methodology used to arrive at these APORs is
also published on the FFIEC’s website. A Financial Institution may either use the APORs
published on the FFIEC’s website or determine APORs itself by employing the methodology
published on the FFIEC’s website. A Financial Institution that determines APORs itself,
however, is responsible for correctly determining them in accordance with the published
methodology. Comment 4(a)(12)-2.

CONSUMER FINANCIAL PROTECTION BUREAU

To determine the reportable rate spread, a Financial Institution can follow these steps:
1. Determine the Covered Loan’s APR
A Financial Institution may rely on the APR disclosed for the Covered Loan, if it is calculated
and disclosed pursuant to Regulation Z (12 CFR 1026.18 or 1026.38 for a Closed-End
Mortgage Loan or 12 CFR 1026.40 for an Open-End Line of Credit). Comment 4(a)(12)-3.
2. Determine the APOR
a. Determine the Comparable Transaction
The rate spread is calculated using the APOR for a comparable transaction. Therefore, a
Financial Institution must determine what transaction is comparable to the Covered
Loan. To do so, the Financial Institution uses the Covered Loan’s amortization type (i.e.,
fixed-rate or variable-rate) and loan term. For Open-End Lines of Credit, a Financial
Institution must identify the most closely comparable closed-end transaction. Comment
4(a)(12)-4.
For fixed-rate Covered Loans, the term for identifying the comparable transaction is the
transaction’s maturity (i.e., the period until the last payment will be due under the
Closed-End Mortgage Loan contract or Open-End Line of Credit agreement). If an
Open-End Line of Credit has a fixed rate but no definite plan length, a Financial
Institution can use a 30-year fixed-rate loan as the most closely comparable closed-end
transaction. Financial Institutions may refer to the “Average Prime Offer Rates-Fixed”
table on the FFIEC website when identifying a comparable fixed-rate transaction.
Comment 4(a)(12)-4.i.
For variable-rate Covered Loans, the term for identifying the comparable transaction is
the initial, fixed-rate period (i.e., the period until the first scheduled rate adjustment).
For example, five years is the relevant term for a variable-rate transaction with a fiveyear, fixed-rate introductory period that is amortized over thirty years. If an Open-End
Line of Credit has a variable rate and an optional, fixed-rate feature, a Financial
Institution uses the rate table for variable-rate transactions. Comment 4(a)(12)-4.ii.
When a Covered Loan’s term to maturity (or, for a variable-rate transaction, the initial
fixed-rate period) is not in whole years, the Financial Institution uses the number of
whole years closest to the actual loan term (or the initial fixed-rate period). If the actual
loan term (or the initial fixed-rate period) is exactly halfway between two whole years,

CONSUMER FINANCIAL PROTECTION BUREAU

the Financial Institution uses the shorter loan term. The Financial Institution rounds to
one year any Covered Loan with a term shorter than six months, including a variablerate Covered Loan with no initial, fixed-rate period. Comment 4(a)(12)-4.iii.

Term to Maturity or Initial Fixed-Rate Period

Term for Comparable Transaction

10 years, 3 months

10 years

10 years, 9 months

11 years

10 years, 6 months

10 years

10 years, 6 months, 18 days

11 years

3 months

1 year

If the amortization period of a Covered Loan is longer than the transaction’s term to
maturity, a Financial Institution must use the term to maturity to determine the
applicable APOR. Comment 4(a)(12)-4.iv.
b. Determine the Rate Set Date
The date used to determine the APOR for a comparable transaction is the date on which
the Financial Institution set the Covered Loan’s interest rate for the final time before
loan closing or account opening. Comment 4(a)(12)-5.

If the:

The date used for APOR is the:

Rate was set pursuant to a lock agreement

Date that the agreement fixed the interest rate

Lock agreement was extended, but the rate was
not re-set

Date the Financial Institution exercised its
discretion in setting the rate for final time before
loan closing or account opening

Rate was re-set after the lock agreement was
executed, and there was no program change

Date that the Financial Institution exercised its
discretion in setting the rate for final time before
loan closing or account opening

CONSUMER FINANCIAL PROTECTION BUREAU

Rate was re-set after the lock agreement was
executed, and there was a program change

Date of the program change, unless the Financial
Institution changed the promised rate to the rate
that would have been available to the borrower
under the new program on the date of the original
rate-lock, and the Financial Institution consistently
follows that practice or the original lock
agreement required that the new program’s rate
as of the original rate-lock would be available. In
that case, the date of the original rate-lock.

Applicant or borrower did not execute a lock
agreement

Date on which the Financial Institution set the rate
for final time before loan closing or account
opening

Example
Borrower locks a rate of 2.5 percent on June 1 for a 30-year, variable-rate loan with a 5year, fixed-rate introductory period. On June 15, the borrower decides to switch to a 30year, fixed-rate loan, and the rate available to the borrower for that product on June 15 is
4.0 percent. On June 1, the 30-year, fixed-rate loan would have been available to the
borrower at a rate of 3.5 percent. Ficus Bank offers the borrower the 3.5 percent rate
(i.e., the rate that would have been available to the borrower for the fixed-rate product
on June 1, the date of the original rate-lock) because the original agreement so provided
or because Ficus Bank consistently follows that practice for borrowers who change loan
programs. Ficus Bank should use June 1 as the rate-set date. If the original agreement
does not require Ficus Bank to offer 3.5 percent or if Ficus Bank does not consistently
follow the practice for borrower who change loan programs, Ficus Bank should use June
15 as the rate-set date.

If a Financial Institution received an Application from a broker and is responsible for
reporting the approved but not accepted Application or resulting Covered Loan, (e.g.,
because the Financial Institution originated the loan), the rate-set date is the last date
the Financial Institution set the rate with the broker, not the date the broker set the
borrower’s rate. Comment 4(a)(12)-5.

CONSUMER FINANCIAL PROTECTION BUREAU

c. Determine the Most Recently Available APOR as of Rate Set Date
A Financial Institution must compare the Covered Loan’s APR to the most recently
available APOR that was in effect for the comparable transaction as of the rate-set date.
The most recently available rate means the APOR set forth in the applicable table with
the most recent effective date as of the date the interest rate was set. A Financial
Institution cannot use an APOR before its effective date. Comment 4(a)(12)-6.
3. Determine the Rate Spread
A Financial Institution compares the APOR determined in step 2c, above, to the APR
determined in step 1 above. Comment 4(a)(12)-6.

5.27 Contractual features
A Financial Institution reports whether the contractual terms include or would have included:
(1) a balloon payment; (2) interest-only payments; (3) negative amortization; or (4) contractual
terms, other than those listed above, that would allow for payments other than fully amortizing
payments. 12 CFR 1003.4(a)(27). The 2015 HMDA Rule defines the terms balloon payment,
interest-only payments, negative amortization, and fully amortizing payments by reference to
Regulation Z, but without regard to whether the Covered Loan is subject to Regulation Z.
Comment 4(a)(27). See 12 CFR 1026.18(s)(5)(i) for the definition of balloon payment, 12 CFR
1026.18(s)(7)(iv) for the definition of interest-only payments, and 12 CFR 1026.18(s)(7)(v) for
information on when a contractual term would include negative amortization.

Example
Ficus Bank originates a business-purpose transaction that is exempt from Regulation Z. The
borrower, a corporation, uses the loan proceeds to finance the purchase of a Multifamily
Dwelling. The loan is secured by a mortgage on the Multifamily Dwelling. The loan includes a
balloon payment, as defined by Regulation Z, 12 CFR 1026.18(s)(5)(i), at the end of the loan
term. Even though the borrower is not a natural person, the loan is for a business purpose, and
a Multifamily Dwelling is not a “dwelling” under Regulation Z, Ficus Bank reports the businesspurpose transaction as having a balloon payment.

CONSUMER FINANCIAL PROTECTION BUREAU

5.28 Data points for certain loans subject to
Regulation Z
5.28.1 Total loan costs or total points and fees
For Covered Loans subject to the Ability-to-Repay provisions of Regulation Z, 12 CFR 1026.43, a
Financial Institution reports the following:
1. The amount of total loan costs as disclosed, pursuant to Regulation Z, on Line D
of the Closing Cost Details page of the Closing Disclosure. The Financial Institution
reports the total loan costs if a Closing Disclosure was provided for the Covered Loan.
12 CFR 1003.4(a)(17)(i).
Financial Institutions report that this data point is not applicable for transactions that are
not subject to the Ability-to-Repay provisions of Regulation Z, such as Open-End Lines of
Credit, Reverse Mortgages, and Covered Loans made primarily for business or commercial
purposes. Comment 4(a)(17)(i)-1. For transactions subject to the Ability-to-Repay
provisions of Regulation Z for which a Closing Disclosure was not provided, Financial
Institutions report that this data point is not applicable. 12 CFR 1003.4(a)(17). Financial
Institutions also report that this data point is not applicable for purchased Covered Loans for
which Applications were received by the selling entity prior to October 3, 2015. Comment
4(a)(17)(i)-2.
2. The total points and fees charged in connection with the Covered Loan,
calculated pursuant to Regulation Z. The Financial Institution reports the total points
and fees if the Covered Loan is not subject to Regulation Z’s Closing Disclosure requirements
and is not a purchased Covered Loan. 12 CFR 1003.4(a)(17)(ii).
Financial Institutions report that this data point is not applicable for transactions that are
not subject to the Ability-to-Repay provisions of Regulation Z, such as Open-End Lines of
Credit, Reverse Mortgages, and Covered Loans made primarily for business or commercial
purposes. Comment 4(a)(17)(ii)-1. For transactions subject to the Ability-to-Repay
provisions of Regulation Z for which a Closing Disclosure was provided, Financial
Institutions report that this data point is not applicable. 12 CFR 1003.4(a)(17). Financial
Institutions also report that this data point is not applicable for purchased Covered Loans.
Comment 4(a)(17)(ii)-1.

CONSUMER FINANCIAL PROTECTION BUREAU

For Covered Loans subject to the total loan cost reporting requirement, if the amount of total
loan costs changes because a Financial Institution provides a revised Closing Disclosure, the
Financial Institution reports the revised amount if the revised Closing Disclosure was provided
to the borrower during the same reporting period in which loan closing occurred. Comment
4(a)(17)(i)-3.
For Covered Loans subject to the total points and fees reporting requirement, if a Financial
Institution determines that the transaction’s total points and fees exceeded the applicable limit
and cures the overage pursuant to Regulation Z during the same reporting period in which
closing occurred, the Financial Institution reports the revised amount of total points and fees.
Comment 4(a)(17)(ii)-2.

Example
Ficus Bank is required to submit HMDA data quarterly. It closes a Covered Loan on January 2,
2020, and cures an overage pursuant to Regulation Z on January 9, 2020. Ficus Bank reports
the revised amount of total points and fees in both its quarterly LAR submitted for first quarter
data by May 30, 2020 and its annual LAR submitted in 2021 for 2020 data.

5.28.2 Total borrower-paid origination charges
For Covered Loans subject to the Closing Disclosure requirements of Regulation Z, 12 CFR
1026.19(f), the Financial Institution reports the total of all itemized origination charges that are
designated borrower-paid at or before closing. 12 CFR 1003.4(a)(18). This total is disclosed on
Line A of the Closing Cost Details page of the Closing Disclosure. For all other transactions, the
Financial Institution reports that the data point is not applicable. A Financial Institution
reports that the data point does not apply for purchased Covered Loans for which Applications
were received by the seller prior to the effective date of the Closing Disclosure requirements of
Regulation Z. Comments 4(a)(18)-1 and -2.
If the total amount of borrower-paid origination charges changes because a Financial Institution
provides a revised Closing Disclosure pursuant to Regulation Z during the same reporting
period in which the loan closing occurred, the Financial Institution reports the revised amount.
Comment 4(a)(18)-3.

CONSUMER FINANCIAL PROTECTION BUREAU

5.28.3 Total discount points
For Covered Loans subject to the Closing Disclosure requirements of Regulation Z, 12 CFR
1026.19(f), a Financial Institution reports the points paid to the creditor to reduce the interest
rate. 12 CFR 1003.4(a)(19). This total is disclosed on Line A.01 of the Closing Cost Details page
of the Closing Disclosure. For all other transactions, a Financial Institution reports that the data
point is not applicable. A Financial Institution reports that the data point does not apply for
purchased Covered Loans for which an Application was received by the seller prior to the
effective date of the Closing Disclosure requirements of Regulation Z. Comments 4(a)(19)-1 and
-2.
If the total discount points change because a Financial Institution provides a revised Closing
Disclosure pursuant to Regulation Z during the same reporting period in which the loan closing
occurred, the Financial Institution reports the revised amount. Comment 4(a)(19)-3.

5.28.4 Lender credits
For Covered Loans subject to the Closing Disclosure requirements of Regulation Z, 12 CFR
1026.19(f), the Financial Institution reports the amount of lender credits.
12 CFR 1003.4(a)(20). This total is disclosed in the second row under Line J on the Closing Cost
Details page of the Closing Disclosure. For all other transactions, the Financial Institution
reports that the data point is not applicable. A Financial Institution reports that the data point
does not apply for purchased Covered Loans for which an Application was received by the seller
prior to the effective date of the Closing Disclosure requirements of Regulation Z. Comments
4(a)(20)-1 and -2.
If the amount of the lender credits changes because a Financial Institution provides a revised
Closing Disclosure pursuant to Regulation Z during the same reporting period in which the loan
closing occurred, the Financial Institution reports the revised amount. Comment 4(a)(20)-3.

5.28.5 Prepayment penalty term
For Covered Loans and Applications subject to Regulation Z, other than Reverse Mortgages or
purchased Covered Loans, a Financial Institution reports the term of any prepayment penalty.
The term is reported in months. 12 CFR 1003.4(a)(22). A Financial Institution may rely on the
definitions and official commentary to Regulation Z, 12 CFR 1026.32(b)(6)(i) or (ii), in

CONSUMER FINANCIAL PROTECTION BUREAU

determining whether a Covered Loan includes a prepayment penalty. For Covered Loans that
are not subject to Regulation Z, Reverse Mortgages, purchased Covered Loans, and Covered
Loans or Applications that have no prepayment penalty, the Financial Institution reports that
this data point is not applicable.

5.28.6 HOEPA status
For a Covered Loan that is subject to the Home Ownership and Equity Protection Act of 1994
(HOEPA), as implemented in Regulation Z, 12 CFR 1026.32, the Financial Institution reports
whether or not the Covered Loan is a high-cost mortgage under Regulation Z.
12 CFR 1003.4(a)(13). Generally, a Financial Institution will report whether or not a consumer
credit transaction subject to Regulation Z and secured by a principal dwelling (as that term is
interpreted under Regulation Z) is a high-cost mortgage. See 12 CFR 1026.32(a) and its official
commentary to determine whether a Covered Loan is subject to HOEPA and whether or not it is
a high-cost mortgage under Regulation Z. For an Application or a Covered Loan that is not
subject to HOEPA, the Financial Institution reports that this data point is not applicable.
Comment 4(a)(13).

5.29 Transaction indicators
A Financial Institution separately reports whether or not a Covered Loan is or an Application is
for:
1. A Reverse Mortgage. 16 12 CFR 1003.4(a)(36);
2. An Open-End Line of Credit. 17 12 CFR 1003.4(a)(37); and

A Reverse Mortgage is a Closed-End Mortgage Loan or Open-End Line of Credit that is a reverse mortgage
transaction as defined in Regulation Z, but without regard to whether the loan or line is secured by a principal
dwelling. 12 CFR 1003.2(q).

For more information on whether a Covered Loan is or an Application is for an Open-End Line of Credit, see
Section 4.1.1.

CONSUMER FINANCIAL PROTECTION BUREAU

3. A loan made primarily for a business or commercial purpose. 18 12 CFR 1003.4(a)(38).

5.30 Mortgage loan originator identifier
A Financial Institution reports the Nationwide Mortgage Licensing System and Registry
identifier (NMLSR ID) for the mortgage loan originator, as defined in Regulation G, 12 CFR Part
1007, or Regulation H, 12 Part 1008, as applicable. 12 CFR 1003.4(a)(34). The NMLSR ID is a
unique number or other identifier generally assigned to an individual registered or licensed
through NMLSR to provide loan originating services. For more information, see the Secure and
Fair Enforcement for Mortgage Licensing Act of 2008, title V of the Housing and Economic
Recovery Act of 2008, 12 U.S.C. 5101 et seq., and Regulation G or Regulation H, as applicable.
Comment 4(a)(34)-1.
An NMLSR ID for the mortgage loan originator is not required to be reported if the mortgage
loan originator is not required to obtain and has not been assigned an NMLSR ID. In those
cases, the Financial Institution reports that this data point is not applicable. For example,
certain individual mortgage loan originators may not be required to obtain an NMLSR ID for the
particular transaction being reported, such as a commercial loan, and may not have an NMLSR
ID. However, some mortgage loan originators may have obtained an NMLSR ID even if they are
not required to obtain one for the particular transaction. If a mortgage loan originator has been
assigned an NMLSR ID, a Financial Institution reports the mortgage loan originator’s NMLSR
ID regardless of whether the mortgage loan originator is required to obtain an NMLSR ID for
the particular transaction being reported. Comment 4(a)(34)-2.
If more than one individual associated with a Covered Loan or Application meets the definition
of “mortgage loan originator,” as defined in Regulation G or Regulation H, a Financial
Institution reports the NMLSR ID of the individual mortgage loan originator with primary
responsibility for the transaction as of the date of action taken. A Financial Institution that
establishes and follows a reasonable, written policy for determining which individual mortgage

If a Covered Loan or Application is deemed to be primarily for a business or commercial purpose under Regulation
Z, 12 CFR 1026.3(a) and its official commentary, it is also deemed to be for a business or commercial purpose under
the 2015 HMDA Rule.

CONSUMER FINANCIAL PROTECTION BUREAU

loan originator has primary responsibility for the reported transaction as of the date of action
taken complies with this reporting requirement. Comment 4(a)(34)-3.

5.31 Type of purchaser
A Financial Institution reports the type of purchaser for a Covered Loan if the Financial
Institution: (a) originated the Covered Loan it is reporting and sold it within the same calendar
year; or (b) purchased the Covered Loan it is reporting and then sold it within the same calendar
year. 12 CFR 1003.4(a)(11). When reporting the type of purchaser, a Financial Institution
reports the type of entity that purchased the Covered Loan from the Financial Institution, using
one of the following:
1. Fannie Mae.
2. Ginnie Mae.
3. Freddie Mac.
4. Farmer Mac.
5. Private securitizer, which is an entity (other than one of the government-sponsored
enterprises listed in 1 through 4 immediately above) that the Financial Institution knows or
reasonably believes will securitize the Covered Loan. Knowledge or reasonable belief could,
for example, be based on the purchase agreement or other related documents, the Financial
Institution’s previous transactions with the purchaser, or the purchaser’s role as a securitizer
(such as an investment bank). If the Financial Institution selling the Covered Loan does not
know or reasonably believe that the purchaser will securitize the loan, and the seller knows
that the purchaser frequently holds or disposes of loans by means other than securitization,
then the Financial Institution reports the Covered Loan as purchased by, as appropriate, one
of the other types of purchasers. Comment 4(a)(11)-4.
If the purchaser meets the criteria to be a private securitizer and fits within one of the other
reportable categories in 6 through 10 below (including affiliate institution), the Financial
Institution reports that the purchaser is a private securitizer. Comment 4(a)(11)-4.
6. Affiliate institution, which means a company that controls, is controlled by, or is under
common control with the Financial Institution. The term has the meaning set forth in the
Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq. If a purchaser meets the criteria

CONSUMER FINANCIAL PROTECTION BUREAU

to be an affiliate institution and also fits within one of the other reportable types of
purchaser in 7 through 10 below (but not private securitizer above), the Financial Institution
reports that the purchaser is an affiliate institution. Comment 4(a)(11)-3.
7. Commercial bank, savings bank, or savings association.
8. Credit union, mortgage company, or finance company. A mortgage company is a
nondepository institution that purchases Covered Loans and, typically, originates Covered
Loans. Comment 4(a)(11)-5.
9. Life insurance company.
10. Other, which is a purchaser that is not any of the above. A Financial Institution would
report the purchaser type of “other” if the purchaser was a bank holding company or thrift
holding company that is not a private securitizer and is not an affiliate of the Financial
Institution. Comment 4(a)(11)-7.
If a Financial Institution sells some interest or interests in a Covered Loan but retains a majority
interest in that Covered Loan, the Financial Institution does not report the sale or type of
purchaser (i.e., it reports that this data point is not applicable). Comment 4(a)(11)-1.
If a Financial Institution sells all or a majority interest in the Covered Loan to more than one
entity, the Financial Institution reports the type of purchaser based on the entity purchasing the
greatest interest in the Covered Loan. Comment 4(a)(11)-1.
Covered Loans “swapped” for mortgage-backed securities are to be treated as sales, and the
purchaser is the entity receiving the Covered Loans that are swapped. Comment 4(a)(11)-2.
A Financial Institution reports that this data point is not applicable:
1. If a Financial Institution sells some interest or interests in a Covered Loan but retains a
majority interest in the loan;
2. For an Application that is denied, withdrawn, closed for incompleteness, or approved but
not accepted; or
3. For a Covered Loan that the Financial Institution does not sell during the same calendar
year that it originated or purchased the Covered Loan. Comments 4(a)(11)-1 and -10.
A Financial Institution records that the requirement to report type of purchaser is not applicable
if the Financial Institution originated or purchased a Covered Loan and did not sell it during the

CONSUMER FINANCIAL PROTECTION BUREAU

calendar quarter for which the Financial Institution is recording the data. If the Financial
Institution sells the Covered Loan in a subsequent quarter of the same calendar year, the
Financial Institution records the type of purchaser on its LAR for the quarter in which the
Covered Loan was sold. If a Financial Institution sells the Covered Loan in a succeeding year,
the Financial Institution should not record or report the sale. Comment 4(a)(11)-9.

CONSUMER FINANCIAL PROTECTION BUREAU

6. Recording and reporting
6.1

Recording

The 2015 HMDA Rule requires a Financial Institution to record the data about a Covered Loan
or Application on a LAR within 30 calendar days after the end of the calendar quarter in which
the Financial Institution takes final action on the Application or Covered Loan.
12 CFR 1003.4(f). A Financial Institution is not required to record all of its HMDA data for a
quarter on a single LAR. Rather, a Financial Institution may record data on a single LAR or may
record data on one or more LARs for different branches or different loan types (such as Home
Purchase Loans or Home Improvement Loans, or loans on Multifamily Dwellings). Comment
4(f)-1.
Other State or Federal regulations may require a Financial Institution to record its data on a
LAR more frequently. Comment 4(f)-2.
Financial Institutions may maintain their quarterly records in electronic or any other format,
provided they can make the information available to their regulatory agencies in a timely
manner upon request. Comment 4(f)-3.

6.2

Reporting

In addition to the required data discussed in Section 5, above, effective January 1, 2019, a
Financial Institution must include the following when it submits its HMDA data:
1. Its name;

CONSUMER FINANCIAL PROTECTION BUREAU

2. The calendar year and, if applicable, the calendar quarter to which the data relate (see
Section 6.2.2 for information on quarterly reporting);
3. The name and contact information for a person who can be contacted with questions
about the submission;
4. The Financial Institution’s appropriate Federal agency;
5. The total number of entries in the submission;
6. The Financial Institution’s Federal Taxpayer Identification Number (TIN); and
7. The Financial Institution’s LEI. 12 CFR 1003.5(a)(3).
If the appropriate Federal agency for a Financial Institution changes, the Financial Institution
must identify its new appropriate Federal agency in its annual submission for the year of the
change. Comment 5(a)-2. For example, if a Financial Institution’s appropriate Federal agency
changes in February 2018, it must identify its new appropriate Federal agency beginning with its
annual submission of 2018 data by March 1, 2019. For a Financial Institution required to
comply with quarterly reporting requirements (see Section 6.2.2), the Financial Institution also
must identify its new appropriate Federal agency in its quarterly submission beginning with its
submission for the quarter of the change, unless the change occurs during the fourth quarter.
For example, if the appropriate Federal agency for a Financial Institution changes during
February 2020, the Financial Institution must identify its new appropriate Federal agency
beginning with its quarterly submission for the first quarter of 2020. Comment 5(a)-2.
If a Financial Institution obtains a new TIN, it must provide the new TIN in its subsequent data
submissions. For example, if two Financial Institutions that previously reported HMDA data
merge and the surviving Financial Institution retained its LEI but obtained a new TIN, the
surviving Financial Institution reports the new TIN beginning with its next HMDA data
submission. Comment 5(a)-5.
A Financial Institution that is a subsidiary of a bank or savings association must complete its
own LAR and submit it, directly or through its parent, to the appropriate Federal agency for the
subsidiary’s parent. 12 CFR 1003.5(a)(2). A Financial Institution is a subsidiary of a bank or
savings association (for purposes of reporting HMDA data to the same agency as the parent) if
the bank or savings association holds or controls an ownership interest in the Financial
Institution that is greater than 50 percent. Comment 5(a)-6.

CONSUMER FINANCIAL PROTECTION BUREAU

6.2.1

Annual reporting

The 2015 HMDA Rule maintains the annual reporting requirement, but requires Financial
Institutions to submit data electronically in accordance with the procedures published by the
Bureau and posted at http://www.consumerfinance.gov/hmda. 12 CFR 1003.5(a)(5).
Under the 2015 HMDA Rule, a Financial Institution must submit its annual LAR in electronic
format to its appropriate Federal agency by March 1 of the year following the calendar year for
which data are collected. Appendix A to Part 1003 (through December 31, 2018);
12 CFR 1003.5(a)(1)(i) (after December 31, 2018). An individual who is an authorized
representative of the Financial Institution and who has knowledge regarding the submitted data
must certify its accuracy and completeness. Appendix A to Part 1003 (through December 31,
2018); 12 CFR 1003.5(a)(1)(i) (after December 31, 2018).
A Financial Institution must retain a copy of its submitted annual LAR for at least three years.
12 CFR 1003.5(a)(1)(i). Financial Institutions may retain their annual LARs in either paper or
electronic form. Comment 5(a)-4.
For more information on reporting under the 2015 HMDA Rule or on the electronic submission
of data, please see http://www.consumerfinance.gov/hmda.

6.2.2

Quarterly reporting

The 2015 HMDA Rule requires some Financial Institutions to report data on a quarterly basis as
well as on an annual basis. The quarterly reporting requirement is effective January 1, 2020. It
applies to a Financial Institution that reported at least 60,000 originated Covered Loans and
Applications (combined) for the preceding calendar year. The Financial Institution does not
count purchased Covered Loans when determining whether the quarterly reporting requirement
applies. If quarterly reporting is required, the Financial Institution must report all data
required to be recorded for the calendar quarter within 60 calendar days after the end of the
calendar quarter. The quarterly reporting requirement does not apply, however, to the fourth
quarter of the year. A Financial Institution subject to the quarterly reporting requirement
reports its fourth quarter data as part of its annual submission. In its annual submission, a
quarterly reporter will resubmit the data previously submitted for the first three calendar
quarters of the year, including any corrections to the data, as well as its fourth quarter data.
12 CFR 1003.5(a)(ii).

CONSUMER FINANCIAL PROTECTION BUREAU

6.3

Disclosure of data

6.3.1

Disclosure statement

Effective January 1, 2018, the 2015 HMDA Rule changes Regulation C’s disclosure statement
requirements. The changes apply to data collected in 2017 and later years. Under the 2015
HMDA Rule, the FFIEC shall provide a notice to the Financial Institution that the Financial
Institution’s disclosure statement (based on data submitted for the prior calendar year) is
available. 12 CFR 1003.5(b)(1). No later than three business days (any calendar day other than
a Saturday, Sunday, or legal public holiday) after receiving notice from the FFIEC, the Financial
Institution must make available to the public, upon request, a written notice that clearly conveys
that the Financial Institution’s disclosure statement may be obtained on the Bureau’s website at
www.consumerfinance.gov/hmda. 12 CFR 1003.5(b)(2); comment 5(b)-1. A Financial
Institution may, but is not required to, use the sample notice in Attachment C to satisfy the 2015
HMDA Rule’s disclosure statement requirement. The notice may be made available in paper or
electronic form. Comment 5(b)-2.
A Financial Institution must make the notice available to the public for a period of five years.
12 CFR 1003.5(d)(1).
At its discretion, a Financial Institution may also provide its disclosure statement and impose a
reasonable fee for costs incurred reproducing or providing the statement. 12 CFR 1003.5(d)(2).
Even if it provides the disclosure statement, a Financial Institution must comply with the notice
requirement.

6.3.2

Modified LAR

Effective January 1, 2018, the 2015 HMDA Rule changes a Financial Institution’s obligations
with respect to disclosing its modified LAR. The new requirements apply to data collected in
2017 and later years.
Beginning in 2018, upon request from a member of the public, a Financial Institution must
provide a written notice regarding the availability of its modified LAR. The written notice must

CONSUMER FINANCIAL PROTECTION BUREAU

clearly convey that the Financial Institution’s LAR, as modified by the Bureau to protect
borrower and applicant privacy, may be obtained on the Bureau’s website at
www.consumerfinance.gov/hmda. 12 CFR 1003.5(c).
A Financial Institution may, but is not required to, use the sample notice in Attachment C to
satisfy the 2015 HMDA Rule’s modified LAR requirement. Comment 5(c)-2. A Financial
Institution may, but is not required to, use the same notice for purposes of this disclosure
requirement and the disclosure statement requirement discussed in Section 6.3.1. The notice
may be made available in paper or electronic form. Comment 5(c)-1.
The notice must be made available in the calendar year following the calendar year for which the
Financial Institution collected data. The notice must be made available for three years.
12 CFR 1003.5(d)(1). For example, in calendar year 2021, an institution must make available a
notice that its modified LAR is available on the Bureau’s website if it was required to collect data
in 2018, 2019, or 2020.
At its discretion, a Financial Institution may also provide its LAR, as modified by the Bureau,
and impose a reasonable fee for any costs incurred to reproduce or provide the data.
12 CFR 1003.5(d)(2). Even if it decides to provide the modified LAR, a Financial Institution
must comply with the notice requirement.

6.3.3

Posted notices

The 2015 HMDA Rule modifies Regulation C’s posting requirement. Beginning January 1, 2018,
a Financial Institution must post, in the lobby of its home office and each Branch Office
physically located in an MSA or MD, a general notice about the availability of its HMDA data on
the Bureau’s website. 12 CFR 1003.5(e). A Financial Institution may, but is not required to, use
the sample notice in Attachment C to satisfy this requirement. In any case, the notice must
clearly convey that the Financial Institution’s HMDA data are available on the Bureau’s website
at www.consumerfinance.gov/hmda. Comment 5(e).

6.3.4

Aggregated data

The FFIEC will use the annual data submitted pursuant to the 2015 HMDA Rule to make
available aggregated data for each MSA and MD, showing lending patterns by property location,
age of housing stock, and income level, sex, ethnicity, and race. 12 CFR 1003.5(f).

CONSUMER FINANCIAL PROTECTION BUREAU

7. Enforcement provisions
A violation of Regulation C, both before and after the effective date of the 2015 HMDA Rule, is
subject to administrative sanctions, including civil money penalties. Compliance can be
enforced by the Federal Reserve Board, Federal Deposit Insurance Corporation, the Office of the
Comptroller of Currency, the National Credit Union Administration, HUD, or the Bureau.
An error in compiling or recording data for a Covered Loan or Application is not a violation of
HMDA or Regulation C if the error was unintentional and occurred despite maintenance of
procedures reasonably adapted to avoid such errors. 12 CFR 1003.6(b)(1). However, a Financial
Institution that obtains the property-location information for Applications and Covered Loans
from third parties is responsible for ensuring that the information reported is correct. An
incorrect entry for a census tract number is deemed a bona fide error and is not a violation if the
Financial Institution maintains procedures reasonably adapted to avoid such an error.
12 CFR 1003.6(b)(2).
If a Financial Institution makes a good-faith effort to record all data fully and accurately within
30 calendar days after the end of the calendar quarter as required under the 2015 HMDA Rule,
but some data are inaccurate or incomplete, the inaccuracy or omission is not a violation of
HMDA or Regulation C if the Financial Institution corrects or completes the data prior to
submitting its annual LAR. 12 CFR 1003.6(c)(1).
If a Financial Institution that is required to submit quarterly data makes a good-faith effort to
report all data fully and accurately within 60 calendar days as required under the 2015 HMDA
Rule, but some data are inaccurate or incomplete, the inaccuracy or omission is not a violation
of HMDA or Regulation C if the Financial Institution corrects or completes the data prior to
submitting its annual LAR. 12 CFR 1003.6(c)(2).

CONSUMER FINANCIAL PROTECTION BUREAU

8. Mergers and acquisitions
8.1

Determining coverage

After a merger or acquisition, the surviving or newly formed institution is subject to Regulation
C, effective January 1, 2018, if it satisfies the coverage criteria for either a Depository Financial
Institution or a Nondepository Financial Institution. See Section 3 for more information on
institutional coverage. When determining whether the institution is covered, the surviving or
newly formed institution must consider the combined assets, locations, and lending activities of
the surviving or newly formed entity and the merged or acquired entities or acquired branches.
Comment 2(g)-3.

8.2

Reporting responsibility for calendar
year of merger or acquisition

The following discusses the applicability of the 2015 HMDA Rule during the calendar year of a
merger or acquisition:
1. If two institutions that are not subject to Regulation C merge, but the newly formed or
surviving institution is subject to Regulation C, no data collection is required for the
calendar year of the merger.
2. When a branch office of an institution that is not subject to Regulation C is acquired by
another institution that is not subject to Regulation C, and the acquisition results in the
acquiring institution becoming subject to Regulation C, no data collection is required for the
calendar year of the acquisition.

CONSUMER FINANCIAL PROTECTION BUREAU

3. If an institution that is subject to Regulation C and an institution that is not subject to
Regulation C merge, and the surviving or newly formed institution is subject to Regulation
C, for the calendar year of the merger, data collection is required for Covered Loans and
Applications handled in the offices of the institution that was previously subject to
Regulation C. For the calendar year of the merger, data collection is optional for Covered
Loans and Applications handled in offices of the institution that was not previously subject
to Regulation C.
4. When an institution that is subject to Regulation C acquires a branch office of an institution
that is not subject to Regulation C, data collection is optional for Covered Loans and
Applications handled by the acquired branch office for the calendar year of the acquisition.
5. If an institution that is subject to Regulation C and an institution that is not subject to
Regulation C merge and the surviving or newly formed institution is not subject to
Regulation C, data collection is required for Covered Loans and Applications handled prior
to the merger in the previously covered institution’s offices. After the merger date, data
collection is optional for Covered Loans and Applications handled in the offices of the
institution that was previously covered.
6. When an institution that is not subject to Regulation C acquires a Branch Office of an
institution that is subject to Regulation C but that acquisition does not result in the
acquiring institution becoming subject to Regulation C, data collection is required for
transactions of the acquired Branch Office that take place prior to the acquisition. Data
collection by the acquired Branch Office is optional for transactions taking place in the
remainder of the calendar year of the acquisition.
7. If two or more institutions that are subject to Regulation C merge and the surviving or newly
formed institution is also subject to Regulation C, data collection is required for the entire
calendar year of the merger. The surviving or newly formed Financial Institution files either
a consolidated submission or separate submissions for that calendar year.
8. When one institution subject to Regulation C acquires a Branch Office of another covered
institution, data collection is required for the entire calendar year of the merger. Data for
the acquired Branch Office may be submitted by either Financial Institution. Comment
2(g)-4.

CONSUMER FINANCIAL PROTECTION BUREAU

8.3

Changes to appropriate Federal agency
or TIN

Under the 2015 HMDA Rule, if the appropriate Federal agency for a Financial Institution
changes, the Financial Institution must identify its new appropriate Federal agency in its annual
submission for the year of the change. For example, if a Financial Institution’s appropriate
Federal agency changes in February 2019, it must identify its new appropriate Federal agency
beginning with the annual submission of its 2019 data by March 1, 2020. For a Financial
Institution required to comply with quarterly reporting requirements, the Financial Institution
also must identify its new appropriate Federal agency in its quarterly submissions, beginning
with its submission for the quarter of the change, unless the change occurs during the fourth
quarter. Comment 5(a)-2. For example, if the appropriate Federal agency for a Financial
Institution changes during February 2020, the Financial Institution must identify its new
appropriate Federal agency beginning with its quarterly submission for the first quarter of 2020.
If a Financial Institution obtains a new TIN, it should provide the new number in its subsequent
data submission. For example, if two Financial Institutions that previously reported HMDA
data merge and the surviving Financial Institution retained its LEI but obtained a new TIN, then
the surviving Financial Institution should report the new TIN with its next HMDA data
submission. Comment 5(a)-5.

8.4

Determining quarterly reporting
coverage

In the calendar year of a merger, the 2015 HMDA Rule requires a surviving or newly formed
Financial Institution to report quarterly, beginning with the first quarterly submission due date
after the date of the merger, if when added together the surviving or newly formed Financial
Institution and all Financial Institutions that merged reported at least 60,000 originated
Covered Loans and Applications for the preceding calendar year. Similarly, in the calendar year
of an acquisition, the surviving Financial Institution is required to report quarterly, beginning
with the first quarterly submission due date after the date of the acquisition, if when added
together the surviving Financial Institution and the acquired Financial Institution(s) or Branch
Office(s) reported at least 60,000 originated Covered Loans and Applications for the preceding

CONSUMER FINANCIAL PROTECTION BUREAU

calendar year. If a Financial Institution acquires one or more Branch Offices of another
Financial Institution but does not acquire the Financial Institution, it is required to count only
the originated Covered Loans and Applications for the Branch Offices(s) that it acquired.
Comment 5(a)-1.ii.
In the calendar year following a merger or acquisition, the surviving or newly formed Financial
Institution is required to comply with the quarterly reporting requirements if a combined total
of at least 60,000 originated Covered Loans and Applications is reported for the preceding
calendar year by or for the surviving or newly formed Financial Institution and each Financial
Institution or Branch Office that merged or was acquired. Comment 5(a)-1.iii.

CONSUMER FINANCIAL PROTECTION BUREAU

9. Practical implementation and
compliance considerations
This section of the guide sets forth some general compliance and practical implementation
considerations related to the 2015 HMDA Rule. However, it is not a compliance plan and does
not include every compliance or implementation issue that an institution may need to consider.
Each institution will need to determine its obligations under the 2015 HMDA Rule and the best
way for the institution to comply with them. Depending on the institution, compliance could
involve preparing or changing policies, procedures, and processes. It could also result in
changes to the institution’s operations and its relationships with third parties, such as vendors.
It could involve additional staffing and training.
Institutions should consult with their legal counsel and compliance officers to understand their
obligations under the 2015 HMDA Rule and to prepare and implement compliance plans.

9.1

Identifying affected institutions,
products, departments, and staff

When planning, institutions should first determine if they are likely to be subject to the 2015
HMDA Rule and, if so, identify their affected products, departments, and staff. The effects on
these products, departments, and staff may vary greatly depending on the institution’s size,
organizational structure, and the complexity of its operations and systems.
First, an institution should assess whether or not it will be a Financial Institution subject to the
2015 HMDA Rule. This assessment can be done by reviewing the 2015 HMDA Rule’s effective
dates and criteria for institutional coverage. It is important to note that the coverage criteria for

CONSUMER FINANCIAL PROTECTION BUREAU

depository institutions change in 2017, and the coverage criteria for all institutions change
effective January 1, 2018. A bank, savings association, or credit union should review both the
2017 and 2018 changes. A nondepository institution will need to review only the 2018 changes.
For more information on which institutions are subject to the 2015 HMDA Rule, see Section 3 of
this guide. An institution can also use the HMDA Institutional Coverage Charts to help it
determine if it is subject to Regulation C, as amended by the 2015 HMDA Rule. However, the
HMDA Institutional Coverage Charts and this guide are not substitutes for the 2015 HMDA
Rule.
Second, a Financial Institution must assess which of its products and services involve Covered
Loans and reportable activity under the 2015 HMDA Rule. For more information on which
transactions relate to Covered Loans and reportable activity, see Section 4 of this guide.
It is important to note that the 2015 HMDA Rule may not require a Financial Institution to
report Open-End Lines of Credit. A Financial Institution is not required to report Open-End
Lines of Credit if it originated fewer than 100 Open-End Lines of Credit in each of the preceding
two calendar years. For more information on Open-End Lines of Credit, Covered Loans, and
Excluded Transactions, see Section 4.1 of this guide.
After determining which of its products and services involve transactions that must be reported,
a Financial Institution can begin to assess which of its departments, systems, and staff will be
affected.
Third, the Financial Institution should determine what information it must report and how it
will collect this information. The information that a Financial Institution must report might
vary depending on the type of transaction being reported. For example, a Financial Institution
may not be required to collect and report the same information for a purchased Covered Loan as
for an originated Covered Loan. It might not be required to report the same information for a
business-purpose loan as for a consumer-purpose loan. For more information on the reportable
data points, see Section 5 of this guide and the HMDA Rule: Reporting Not Applicable chart.
After determining what information must be collected and reported for reportable transactions,
a Financial Institution can refine its assessment regarding which of its systems, departments,
and staff will be affected by the 2015 HMDA Rule.

CONSUMER FINANCIAL PROTECTION BUREAU

9.1.1

Identifying changes to business processes, policies,
and systems

The requirements of the 2015 HMDA Rule may affect a number of a Financial Institution’s
business systems, processes, and policies. A review should be conducted of existing business
processes, policies, and systems that the Financial Institution, its agents, and other business
partners use. Identifying impacts early will allow the Financial Institution to understand what
changes will be needed to support ongoing compliance.
When reviewing its existing processes, policies, and systems, a Financial Institution should
consider the 2015 HMDA Rule’s requirement to submit data electronically beginning in 2018.
Beginning in 2018, Financial Institutions will not be able to use paper-based submissions for
HMDA data. The Bureau is creating a web-based tool for submission of HMDA data. Financial
Institutions should become familiar with the new web-based submission tool and be able to use
it to submit data beginning in 2018. For more information on the web-based submission tool,
see http://www.consumerfinance.gov/hmda/.
Financial Institutions may need to revise or develop processes and policies to comply with the
changes to transactional coverage. For example, a Financial Institution may need to develop
new processes and policies to comply with the reporting requirements for Open-End Lines of
Credit.

9.1.2

Identifying impacts to key service providers or
business partners

Financial Institutions should review their arrangements and agreements with third parties
engaged for services related to mortgage or other support activities. Close coordination and
discussion of implementation plans with these vendors and business partners is critical to
ensure that the services for which they are engaged will continue to support the Financial
Institution’s business needs and comply with all regulatory and legal obligations.
Third-party relationships may need to be reviewed and adjusted to satisfy requirements for
collecting, recording, or reporting required HMDA data, updating compliance and quality
control systems and processes, and ensuring record management requirements are in place. If
the Financial Institution seeks the assistance of vendors or business partners, it is responsible
for understanding the extent of the assistance that they provide. Also, the data collection and

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reporting requirements in the 2015 HMDA Rule reinforce the need to assess current
integrations between the Financial Institution’s technology platforms and those of its thirdparty providers to determine what updates are necessary.
Software providers, other vendors, and business partners may offer compliance solutions that
can assist with any necessary changes. Identifying these key partners will depend on the
Financial Institution’s business model. For example, Financial Institutions may find it helpful
to coordinate and discuss potential implementation issues with their correspondents, secondary
market partners, and technology vendors. In some cases, institutions may need to negotiate
revised or new contracts with these parties, or seek a different set of services.
The Bureau expects supervised banks and nonbanks to have an effective process for managing
the risks of service provider relationships. For more information, see CFPB Bulletin 2012-03 at
http://files.consumerfinance.gov/f/201204_cfpb_bulletin_service-providers.pdf.

9.2

Implementation and compliance
management support activities

9.2.1

Implementation and compliance management

Financial Institutions should develop implementation plans and follow change management
procedures to implement the requirements of the 2015 HMDA Rule based on an assessment of
impacts. The plans should be developed in consultation with, or reviewed by, key stakeholders
such as legal, compliance, and information technology departments. Implementation plans
should be proactively and clearly communicated to the Board of Directors and senior
management.
Policies, procedures, and process maps may need to be updated to reflect the changes made to
business processes in response to the requirements of the 2015 HMDA Rule. In addition,
Financial Institutions’ compliance management systems and other risk management supporting
activities may need to be adjusted to reflect the requirements of the 2015 HMDA Rule.
The 2015 HMDA Rule changes the way that HMDA data will be disclosed. These changes will
require Financial Institutions to provide new notices and post revised notices. They may also
affect policies and procedures. A Financial Institution may, but is not required to, use the model
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notices in Attachment C. For more information on disclosure requirements, see Section 6.3 of
this guide.
The 2015 HMDA Rule’s changes regarding the collection and reporting of an applicant’s
ethnicity, race, and sex will require that Financial Institutions revise their collection forms or
Application forms. For more information on collecting ethnicity, race, and sex information see
Section 5.1 of this guide and appendix B to the 2015 HMDA Rule.
When implementing its compliance plan, a Financial Institution should note that many of the
2015 HMDA Rule’s effective dates are applicable based on when a Financial Institution takes
final action, not when it received an Application. For example, a Financial Institution collects
the revised data points under the 2015 HMDA Rule for Applications on which final action is
taken on or after January 1, 2018. Therefore, a Financial Institution may need a way to collect
the information related to the revised data points for some Applications received in 2017.
However, the 2015 HMDA Rule provides a transition provision for the collection of ethnicity,
race, and sex information. A Financial Institution collects the ethnicity, race, and sex
information required under current Regulation C for Applications received before January 1,
2018 and under the 2015 HMDA Rule for Applications received on or after January 1, 2018.

9.2.2

HMDA responsibilities

A Financial Institution’s management should ensure that procedures and systems exist to collect
and maintain accurate data for each Covered Loan and Application that the Financial Institution
is responsible for reporting. The individual(s) assigned responsibility for preparing and
maintaining the data should understand the regulatory requirements and be provided the
resources and tools needed to produce complete and accurate data. Appropriate record entries
for a Covered Loan or Application must be made on a LAR within 30 calendar days after the end
of the calendar quarter in which the final action occurs (such as origination or purchase of a
Covered Loan, or denial or withdrawal of an Application). The data must be submitted on time,
and the institution should respond promptly to any questions that may arise during the
processing of data submitted. An authorized representative of the Financial Institution with
knowledge of the data submitted must certify the accuracy and completeness of the annual data
submitted.

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9.2.3

Staffing and training

To ensure that it can meet its obligations under the 2015 HMDA Rule, a Financial Institution
should evaluate current staffing levels and relevancy and adequacy of training provided to
employees. These employees likely include operations and lending-related staff such as loan
officers, processors, compliance, and quality-control staff, as well as others who approve,
process, or monitor mortgage loans. Training may also be required for other individuals that
the Financial Institution, its agents, or its business partners employ.
Execution of tasks related to the preparation of reports or records are likely performed by
compliance personnel of Financial Institutions. For some Financial Institutions, however, the
data intake and transcribing stage could involve loan officers or processors whose primary
function is to evaluate or process Applications. For example, loan officers may obtain
information from applicants and input that information into the reporting system.

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ATTACHMENT A:

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ATTACHMENT B:

Action taken chart
Scenarios

Financial Institution made a credit decision approving
an Application, including a preapproval request, before
loan closing or account opening and that credit
decision resulted in a Covered Loan being originated.
Comments 4(a)(8)(i)-1.

Reportable
Action Taken

Reportable Date

Loan originated

Generally, loan closing or
account opening date. If
applicable, can be: later
date of initial funds
disbursement; date
Financial Institution
acquired Covered Loan
from the party that initially
received the Application; or,
for a construction-topermanent loan, date
Covered Loan converts to
permanent financing

Loan purchased

Date of purchase

Financial Institution made counteroffer and applicant
accepted resulting in a Covered Loan being
originated. Comments 4(a)(8)(i)-9 and 4(a)(8)(ii)-5.

Financial Institution purchased a Covered Loan after
closing or account opening, and Financial Institution
did not make a credit decision on the Application prior
to closing or account opening. Comments 4(a)(8)(i)-2
and 4(a)(8)(ii)-6.
Financial Institution made a credit decision on an
Application prior to closing or account opening, but
repurchased the Covered Loan from another entity to
which the Financial Institution had sold it. Comments
4(a)(8)(i)-2 and 4(a)(8)(ii)-6.

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Financial Institution made a credit decision approving
an Application before loan closing or account opening,
all conditions were satisfied, Financial Institution
agreed to extend credit, but a Covered Loan was not
originated. Comments 4(a)(8)(i)-3, 4(a)(8)(i)-13, and
4(a)(8)(ii)-4.
Financial Institution made a credit decision approving
an Application subject to conditions that are solely
19
customary commitment or closing conditions, and
the conditions were not all met. Comments 4(a)(8)(i)13 and 4(a)(8)(ii)-4.
Financial Institution made a credit decision approving
an Application, subject solely to outstanding conditions
that are customary commitment or closing conditions,
but applicant failed to respond or a Covered Loan was
not originated. Comments 4(a)(8)(i)-3 and 4(a)(8)(ii)4.

Application
approved but
not accepted

Any reasonable date, such
as approval date, deadline
for accepting offer, or date
file was closed

Financial Institution made a credit decision approving
an Application, all underwriting and creditworthiness
20
conditions were met, outstanding conditions were
solely customary commitment or closing conditions,
and applicant expressly withdrew before a Covered
Loan was originated. Comments 4(a)(8)(i)-13 and
4(a)(8)(ii)-4.
Covered Loan was originated, but Borrower rescinded
after closing and before Financial Institution was
required to submit its LAR containing information for
the Covered Loan. Comments 4(a)(8)(i)-10 and
4(a)(8)(ii)-4.

19 Customary commitment or closing conditions include: a clear-title requirement, an acceptable property survey, acceptable title insurance binder,
clear termite inspection, a subordination agreement from another lienholder, and, where the applicant plans to use the proceeds from the sale of one
home to purchase another, a settlement statement showing adequate proceeds from the sale. Comment 4(a)(8)(i)-13.ii.
20 Underwriting or creditworthiness conditions include: conditions that constitute a counter-offer, (such as a demand for a higher down-payment),
satisfactory debt-to-income or loan-to-value ratios, a determination of need for private mortgage insurance, a satisfactory appraisal requirement, or
verification or confirmation, in whatever form the Financial Institution requires, that the applicant meets underwriting conditions concerning
applicant creditworthiness, including documentation or verification of income or assets. Comment 4(a)(8)(i)-13.iii.

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Financial Institution denied an Application before
applicant withdrew it and before file was closed for
incompleteness. Comments 4(a)(8)(i)-4 and
4(a)(8)(ii)-2.
Financial Institution made a counteroffer, and
applicant did not accept the counteroffer or failed to
respond. Comments 4(a)(8)(i)-9 and 4(a)(8)(ii)-2.

Application
denied

Date Application is denied
or date notice sent to
applicant

Application
withdrawn

Date the express
withdrawal was received or
date shown on the
notification form (if written
withdrawal)

File closed for
incompleteness
Note: A
preapproval
request that is
closed for
incompleteness
is not reportable
under HMDA

Date file was closed or date
notice sent to applicant

Financial Institution provided conditional approval
specifying underwriting or creditworthiness conditions
that were not all met. Comments 4(a)(8)(i)-13 and
4(a)(8)(ii)-2.

Application expressly withdrawn by applicant before
Financial Institution made a credit decision denying or
approving the Application and before file was closed
for incompleteness. Comments 4(a)(8)(i)-5 and
4(a)(8)(ii)-3.
Financial Institution provided conditional approval
specifying underwriting or creditworthiness conditions,
and the Application was expressly withdrawn by the
applicant before the applicant satisfied all specified
underwriting or creditworthiness conditions and before
the Financial Institution denied the loan or closed the
file for incompleteness. Comments 4(a)(8)(i)-5 and
4(a)(8)(ii)-3.
Financial Institution approved an Application, subject
to underwriting or creditworthiness conditions, sent
notice of incompleteness under Regulation B, but the
applicant failed to respond within the specified time.
Comments 4(a)(8)(i)-13 and 4(a)(8)(ii)-2.
Applicant had not satisfied all underwriting or
creditworthiness conditions, Financial Institution sent
written notice of incompleteness under Regulation B,
and the applicant did not respond to the request for
additional information within the period of time
specified in the notice. Comments 4(a)(8)(i)-6 and
4(a)(8)(ii)-2.

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Either file closed
for
incompleteness
or application
denied
Note: A
preapproval
request that is
closed for
incompleteness
is not reportable
under HMDA

Date file was closed,
Application was denied (as
applicable), or notice sent
to applicant

Application was a request for a preapproval under a
Preapproval Program, the Financial Institution
approved the preapproval request, but the Application
did not result in the Financial Institution originating a
Covered Loan. Comments 4(a)(8)(i)-8 and 4(a)(8)(ii)4.

Preapproval
request
approved but
not accepted

Any reasonable date, such
as approval date, deadline
for accepting offer, or date
file was closed

Application was request for a preapproval under
Preapproval Program, and the Financial Institution
made a credit decision denying the preapproval
request. Comments 4(a)(8)(i)-7 and 4(a)(8)(ii)-2.

Preapproval
request denied

Date preapproval request
was denied or date notice
sent to applicant

Applicant had not satisfied all underwriting or
creditworthiness conditions, Financial Institution sent
written notice of incompleteness under Regulation B,
the applicant did not respond, then the Financial
Institution provided notice of adverse action on basis
of incompleteness under Regulation B. Comments
4(a)(8)(i)-6 and 4(a)(8)(ii)-2.

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ATTACHMENT C:

Sample notices
Below is a sample notice that can be provided to members of the public upon
request to satisfy § 1003.5(b)(2) and (c). The following language is suggested, but
is not required.
Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review. The
data show geographic distribution of loans and applications; ethnicity, race, sex, age and income
of applicants and borrowers; and information about loan approvals and denials. These data are
available online at the Consumer Financial Protection Bureau’s Web site
(www.consumerfinance.gov/hmda). HMDA data for many other financial institutions are also
available at this Web site.

Below is a sample posted notice that can be used to satisfy § 1003.5(e) and inform
the public of availability of HMDA data. The following language is suggested, but is
not required.
Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review. The
data show geographic distribution of loans and applications; ethnicity, race, sex, age and income
of applicants and borrowers; and information about loan approvals and denials. HMDA data for
many other financial institutions are also available online. For more information, visit the
Consumer Financial Protection Bureau’s Web site (www.consumerfinance.gov/hmda).

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File Type	application/pdf
Author	Elizabeth Bond
File Modified	2015-12-01
File Created	2015-12-01