HMDA Small Entity Guide

bcfp_hmda_small-entity-compliance-guide-final_2018-10+dzk04192019-MG.pdf

Home Mortgage Disclosure Act (Reg C) 12 CFR 1003

HMDA Small Entity Guide

OMB: 3170-0008

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 3170-0008 can be found here:

Document [pdf]

Download: pdf | pdf

OCTOBER 2018
OMB CONTROL NO. 3170-0008

Home Mortgage
Disclosure (Regulation C)
Small Entity Compliance Guide

Version Log
The Bureau updates this guide on a periodic basis. Below is a version log noting the history of
this document and its updates:
Date

Version

October 2018

3.0

Summary of Changes

Updates to reflect Section 104(a) of the Economic Growth, Regulatory
Relief, and Consumer Protection Act (2018 Act) and the interpretive and
procedural rule issued on August 31, 2018 (2018 HMDA Rule), including:
• General information about Section 104(a) of the 2018 Act and
the 2018 HMDA Rule (Section 1)
• Key changes and effective date of Section 104(a) of the 2018
Act (Sections 2.1, 2.3, and 4.3)
• Institutions eligible to rely upon the partial exemptions created
by Section 104(a) of the 2018 Act (Section 4.3.1)
• Loan-volume thresholds for the partial exemptions (Section
4.3.2)
• Collecting, recording, and reporting data points if a partial
exemption applies (Sections 4.3.3)
• Reporting a non-universal loan identifier if a partial exemption
applies (Section 5.2)
• Reporting other data points affected by the partial exemptions
(Sections 5.4, 5.9, 5.11, 5.12, 5.16, 5.17, and 5.19 through
5.30)
Additional information about which transactions a financial institution
must count when determining if a loan-volume threshold has been met
(Section 4.1.2).
Revisions to the portion of the table describing the loan amount reported
for a counteroffer for an amount different from the amount for which the
applicant applied, if the applicant did not accept or failed to respond.
Also, revisions to the portion of the same table describing the loan
amount reported for an Application that was denied, closed for
incompleteness, or withdrawn (Section 5.8).
Miscellaneous administrative changes in various sections.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

October 2017

2.0

Updates to incorporate the content of the final rule issued on August
24, 2017, including changes and clarification regarding:


Institutional coverage and the uniform loan-volume threshold for
open-end lines of credit (Sections 2.1, 3.2, and 9.1)



Transactional coverage for open-end lines of credit (Sections
2.2, 4.1.2, and 9.1)



Collection and reporting of applicant information (Sections 2.4,
5.1, 9.2.1, and Attachment A)



Effective date of enforcement provisions for larger volume
reporters (Sections 2.8 and 7)



Whether certain installment sales contracts are extensions of



An exclusion from coverage for certain preliminary transactions

credit for purposes of the HMDA Rule (Section 4.1.1.1)
that consolidate new funds into a New York CEMA (Sections
4.1.1.1. and 4.1.2)


What constitutes a loan secured by a multifamily dwelling under
the HMDA Rule (Sections 4.1.1.2)



The exclusion from coverage for temporary financing (Section
4.1.2)



Including certain distributions from retirement and other asset
accounts when reporting income (Section 5.1.2)



Reporting the ULI and use of check digit tool provided by the
Bureau (Section 5.2)



Reporting loan purpose (Section 5.7)



Reporting property address and location when certain
information is unknown or unavailable (Section 5.12)



Reporting census tract using the geocoding tool provided by the
Bureau (Sections 5.12 and 7)



Reporting CLTV when the calculation includes property other
than the Identified Property (Section 5.21)



Reporting credit score when there are multiple scores or
multiple applicants (Section 5.22)



Securitizers and automated underwriting systems (Section 5.23)



Reporting interest rate, rate spread, and certain other data
points when revised or corrected disclosures are provided
(Sections 5.24, 5.26, and 5.28)



Reporting the introductory rate (Section 5.25)



Reporting rate spread, including for applications that are
approved but not accepted (Section 5.26)



Reporting mortgage loan originator identifier for certain
purchased covered loans (Section 5.30)



Reporting action taken if there is a counteroffer (Attachment B)

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Also, makes miscellaneous administrative changes to various sections

December 2015

1.0

Original Document

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Table of contents
Table of contents......................................................................................................... 4
1.

Introduction ........................................................................................................... 8
1.1

Purpose of this guide ................................................................................ 9

1.2

Additional implementation resources .................................................... 10

Key changes and effective dates ...................................................................... 11
2.1

Institutional coverage .............................................................................. 11

2.2 Transactional coverage ........................................................................... 13
2.3 Required data points............................................................................... 14
2.4 Collection and reporting of applicant information ................................ 16
2.5 Annual reporting ..................................................................................... 16
2.6 Quarterly reporting .................................................................................. 17
2.7 Disclosure requirements ......................................................................... 18
2.8 Enforcement provisions for larger-volume reporters ............................ 19
3.

Institutional coverage ......................................................................................... 20
3.1

Institutional coverage during 2017......................................................... 20

3.2 Institutional coverage on or after January 1, 2018 ................................ 23
3.3 Exempt institutions ................................................................................ 28
4.

Transactional coverage ...................................................................................... 29

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

4.1

Covered loans .......................................................................................... 29

4.2 Reportable activity .................................................................................. 40
4.3 Partial exemptions .................................................................................. 46
5.

Reportable data................................................................................................... 54
5.1

Applicant information ............................................................................ 55

5.2 Universal loan identifier (ULI) or non-universal loan identifier ........... 63
5.3 Application date ...................................................................................... 66
5.4 Application channel ................................................................................ 67
5.5 Preapproval request ................................................................................ 68
5.6 Loan type ................................................................................................. 68
5.7

Loan purpose .......................................................................................... 69

5.8 Loan amount ........................................................................................... 72
5.9 Loan term ................................................................................................ 73
5.10 Action taken and date ............................................................................. 74
5.11 Reasons for denial................................................................................... 75
5.12 Property address and property location ................................................. 76
5.13 Construction method .............................................................................. 78
5.14 Occupancy type ....................................................................................... 79
5.15 Lien status ...............................................................................................80
5.16 Manufactured home information ........................................................... 81
5.17 Property value ......................................................................................... 83
5.18 Total units ............................................................................................... 84
5.19 Multifamily affordable units ................................................................... 84
5.20 Debt-to-income ratio .............................................................................. 86
5.21 Combined loan-to-value ......................................................................... 87

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.22 Credit score information ......................................................................... 88
5.23 Automated underwriting system information ....................................... 91
5.24 Interest rate ............................................................................................. 94
5.25 Introductory rate period ......................................................................... 97
5.26 Rate spread ............................................................................................. 98
5.27 Non-amortizing features....................................................................... 103
5.28 Data points for certain loans subject to Regulation Z .......................... 104
5.29 Transaction indicators .......................................................................... 108
5.30 Mortgage loan originator identifier ...................................................... 109
5.31 Type of purchaser ..................................................................................110
6.

Recording and reporting .................................................................................. 113
6.1

Recording ............................................................................................... 113

6.2 Reporting ............................................................................................... 113
6.3 Disclosure of data .................................................................................. 116
7.

Enforcement provisions ................................................................................... 118

Mergers and acquisitions ................................................................................ 120
8.1

Determining coverage ........................................................................... 120

8.2 Reporting responsibility for calendar year of merger or acquisition... 120
8.3 Changes to appropriate Federal agency or TIN ................................... 122
8.4 Determining quarterly reporting coverage........................................... 122
9.

Practical implementation and compliance considerations ........................... 124
9.1

Identifying affected institutions, products, departments, and staff .... 124

9.2 Implementation and compliance management support activities ...... 128
Attachment A.. ......................................................................................................... 131
6

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Attachment B: .......................................................................................................... 132
Action taken chart ......................................................................................... 132
Attachment C: .......................................................................................................... 137
Sample notices ................................................................................................137
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 May 31, 2019. The information collections created by the
Final Rule published October 28, 2015 at 80 FR 66127 will not become effective until either
three years from the date of publication of the rule or 2020 in the case of certain information
collections. 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 the Bureau’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 Bureau of Consumer
Financial Protection (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).

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 Bureau of Consumer Financial Protection
(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. On August 24, 2017, the Bureau issued a final rule (2017 HMDA Rule) further
amending Regulation C to make technical corrections and to clarify and amend certain
requirements adopted by the 2015 HMDA Rule. The 2017 HMDA Rule was published in the
Federal Register on September 13, 2017. On May 24, 2018, the President signed the Economic
Growth, Regulatory Relief, and Consumer Protection Act (2018 Act) into law. Effective May 24,
2018, Section 104(a) of the 2018 Act created partial exemptions from some of HMDA’s
requirements for certain covered institutions. On August 31, 2018, the Bureau issued an
interpretive and procedural rule (2018 HMDA Rule) to implement and clarify Section 104(a) of

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

the 2018 Act. The 2018 HMDA Rule was published in the Federal Register on September 7,
2018.
In this guide, the 2015 HMDA Rule, 2017 HMDA Rule, and 2018 HMDA Rule are collectively
referred to as the HMDA Rule.

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 2018 Act and the HMDA Rule, and to highlight information that financial institutions and
those that work with them might find helpful when implementing the 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, the 2017 HMDA Rule, the
2018 HMDA Rule, or Regulation C. Regulation C, the 2015 HMDA Rule, the 2017 HMDA
Rule, the 2018 HMDA Rule, and the Official Interpretations (also known as the commentary)
are the definitive sources of information regarding their requirements. The 2015 HMDA Rule,
the 2017 HMDA Rule, and the 2018 HMDA Rule are available at
http://www.consumerfinance.gov/regulatory-implementation/hmda/.
The focus of this guide is Regulation C, as amended by the 2018 Act and the 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 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 HMDA Rule and the
requirements of Regulation C as they apply before a specific part of the HMDA Rule goes into
9

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

effect. When making these distinctions, the guide generally refers to the requirements of
Regulation C as they apply before a specific part of the 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 HMDA Rule being discussed goes into
effect, not Regulation C as of any specific date (such as the date the guide is being read).

1.2

Additional implementation resources

Additional resources to help institutions understand and comply with the 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 HMDA Rule after
reviewing these materials may submit the question on the Bureau’s website at
https://reginquiries.consumerfinance.gov/. A person may also 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 HMDA data should be directed
to [email protected].

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

2. Key changes and effective
dates
The 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 HMDA Rule took 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 was effective January 1, 2017. The partial exemptions created by the
2018 Act became effective when the Act was signed into law on May 24, 2018. Certain changes
regarding reporting and changes to the enforcement provisions regarding good faith efforts are
effective January 1, 2019. The new quarterly reporting requirement and changes to the
enforcement provisions for larger-volume reporters are effective January 1, 2020. Additionally,
there are institutional and transactional coverage changes for open-end lines of credit that are
effective January 1, 2020.
This section summarizes these key changes and provides the effective date for each key change.
For more detailed information on the 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;

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

effective January 1, 2020 for a change to the loan-volume threshold for covered open-end lines
of credit
The HMDA Rule changes institutional
coverage in two phases.
First, the 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

The 2018 Act added partial exemptions to
HMDA. As discussed in Section 4.3, certain
financial institutions are eligible for these
partial exemptions from some of the HMDA
Rule’s data collection and reporting
requirements. Among other things, in order

Regulation C in 2017 unless it meets all of

to be eligible for a partial exemption, a

the coverage criteria for depository

financial institution must be either an

institutions under current Regulation C,

insured depository institution as defined in

and it originates at least 25 home purchase

Section 3 of the Federal Deposit Insurance

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
HMDA Rule adopts a uniform loan-volume

Act or an insured credit union as defined in
Section 101 of the Federal Credit Union Act.
As discussed in Section 4.3, an insured
depository institution with a negative
Community Reinvestment Act examination
history is not eligible for a partial exemption.

threshold for all financial institutions.
Beginning in 2018, a financial institution is not subject to Regulation C unless it originated at
least 25 covered closed-end mortgage loans in each of the two preceding calendar years or at
least 500 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
HMDA Rule maintains current Regulation C’s asset-size threshold, location test, federally
related test, and loan activity test. For nondepository financial institutions, the HMDA Rule
retains the 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 500 covered open-end lines of credit in each of the two preceding calendar and meets the
location test. 12 CFR 1003.2(g)(1) and (2).
Effective January 1, 2020, the HMDA Rule reduces the loan-volume threshold for covered openend lines of credit to 100 covered open-end lines of credit in each of the two preceding calendar
years. The other institutional coverage criteria do not change in 2020. Thus, effective January
1, 2020, a depository financial institution or nondepository financial institution is subject to

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Regulation C if it originated at least 25 covered closed-end mortgage loans in each of the
preceding two calendar years or at least 100 covered open-end lines of credit in each of the two
preceding calendar years and meets the other applicable coverage criteria.
For more information regarding which financial institutions are subject to the 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); effective January 1, 2020 and applicable for data collected on or after January 1,
2020 (to be reported in or after 2021) for a change to the exclusion for open-end lines of credit.
The 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,
the HMDA Rule creates a dwelling-secured standard and maintains current Regulation C’s
purpose test.
The 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 HMDA Rule’s other changes. For example, closed-end mortgage loans
are excluded transactions for a financial institution that does not originate 25 or more of them in
each of the two preceding calendar years. Similarly, open-end lines of credit are excluded
transactions for a financial institution that does not originate a certain number of them in each
of the two preceding calendar years. For 2018 and 2019, open-end lines of credit are excluded
transactions for a financial institution that does not originate at least 500 of them in each of the

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

two preceding calendar years. Effective January 1, 2020, open-end lines of credit are excluded
transactions for a financial institution that does not originate at least 100 of them in each of the
two preceding calendar years.1
The HMDA Rule expands the types of

The 2018 Act created two partial exemptions:

preapproval requests that are reported, but

one for closed-end mortgage loans and one

also excludes requests regarding some types

for open-end lines of credit. Transactions

of loans from the scope of reportable
preapproval requests. Under the HMDA
Rule, reporting of preapproval requests that
are approved but not accepted is required
instead of optional. However, under the
HMDA Rule, preapproval requests

that are subject to the HMDA Rule and are
covered by a partial exemption are still
subject to some of the HMDA Rule’s
requirements, and certain data points must
be collected, recorded, and reported for such
transactions. For more information on the
partial exemptions, see Section 4.3.

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 HMDA Rule, see Section
4 and the HMDA Transactional Coverage Chart.

2.3 Required data points
Effective January 1, 2018 and applicable to data reported in or after 2019; partial exemptions
effective May 24, 2018 and applicable for collection, recording, and reporting of data on or
after May 24, 2018.

A financial institution may collect, record, report, and disclose information, as described in §§ 1003.4 and 1003.5,
for a closed-end mortgage loan excluded under § 1002.3(c)(11) or an open-end line of credit excluded under §
1002.3(c)(12) as though it were a covered loan, provided that the financial institution complies with such
requirements for all applications for closed-end mortgage loans or open-end lines of credit that it receives,
originates, and purchases that otherwise would have been covered loans during the calendar year during which final
action is taken on the excluded closed-end mortgage loan or open-end line of credit.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

The 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 HMDA
Rule adds new data points for age, credit score, automated underwriting information, debt-toincome 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(a). The HMDA Rule also
modifies some existing data points.
Effective May 24, 2018, the 2018 Act created partial exemptions that permit certain financial
institutions to exclude 26 data points when collecting, recording, and reporting HMDA data for
certain transactions. If a partial exemption applies to a covered transaction, an insured
depository institution or insured credit union may, but is not required to, collect, record, and
report these 26 data points. However, the insured depository institution or insured credit union
must collect, record, and report the remaining 22 data points as required by the HMDA Rule
and otherwise comply with the HMDA Rule for such covered transactions.
Generally, a financial institution collects, records, and reports the new and modified data points
under the HMDA Rule for applications on which final action is taken on or after January 1,
2018. However, if a partial exemption applies, an insured depository institution or insured
credit union is not required to collect, record, or report many of these data points as discussed in
Section 4.3.3.
There is a special transition rule that applies to the collection of an applicant’s ethnicity, race,
and sex if a financial institution receives an application in 2017 but takes final action on it in
2018. 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 HMDA Rule,
see Section 5. For more information on the data points that must be reported if a partial
exemption applies to a covered transaction, see Section 4.3.3.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 HMDA Rule amends the requirements for collection and
reporting of information regarding an applicant’s or borrower’s ethnicity, race, and sex.
First, the 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
reports 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 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 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.
For more information regarding the collection and reporting of applicant information under the
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 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.
16

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

The Bureau has developed 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 are 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 HMDA Rule, using the new web-based submission tool and revised procedures available at
http://www.consumerfinance.gov/hmda/.
For more information regarding annual reporting under the HMDA Rule, see Section 6.2.1.

2.6 Quarterly reporting
Effective January 1, 2020 for data collected and reported in or after 2020
The 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 HMDA Rule, see Section 6.2.2.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 HMDA Rule replaces Regulation C’s requirements to provide a disclosure statement and
modified LAR2 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).
The Bureau will determine if it should modify data to protect applicant and borrower privacy
before posting the data to the Bureau’s website.3
The HMDA Rule also modifies the content of the posting required under Regulation C.
The 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 HMDA Rule,
see Section 6.3.

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.

3 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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

2.8 Enforcement provisions for largervolume reporters
Effective January 1, 2020
The 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 HMDA Rule, see Section 7.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

3.1.1 Banks, savings associations, and credit unions
Under the 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 ALL4 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
ALL5 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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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, on
or after January 1, 2018.
These coverage tests include loan-volume thresholds for closed-end mortgage loans and for
open-end lines of credit. For open-end lines of credit, the HMDA Rule includes both a
temporary higher threshold for open-end lines of credit that is effective January 1, 2018 and a
lower threshold that takes effect January 1, 2020. These thresholds are discussed in more detail
below.
Although the 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, on or after January 1, 2018.
Throughout the remainder of this guide, an institution that meets the criteria set forth in the
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 HMDA Rule’s
23

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 HMDA Rule.

3.2.1 Depository financial institutions
Under the 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
ALL6 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
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).

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 HMDA Rule.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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 Thresholds. The bank, savings association, or credit union meets or
exceeds either the loan-volume threshold for Closed-End Mortgage Loans or the loanvolume threshold for Open-End Line of Credits in each of the two preceding calendar years.
Effective January 1, 2018, the loan-volume threshold for Closed-End Mortgage Loans is 25
Closed-End Mortgage Loans, and the loan-volume threshold for Open-End Lines of Credit is
500 Open-End Lines of Credit. The 500 Open-End Line of Credit threshold is temporary
and applies in calendar years 2018 and 2019. Effective January 1, 2020, the loan-volume
threshold for Open-End Lines of Credit is 100 Open-End Lines of Credit.


Effective January 1, 2018 and until December 31, 2019, a bank, savings association or
credit union that originated at least 25 Closed-End Mortgage Loans in each of the two
preceding calendar years, or originated at least 500 Open-End Lines of Credit in each of
the two preceding calendar years meets or exceeds the loan-volume threshold.



Effective January 1, 2020, a bank, savings association or credit union that 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 meets or exceeds the loan-volume threshold.

When the bank, savings association, or credit union determines whether it meets these loanvolume thresholds, it does not count transactions excluded by 12 CFR 1003.3(c)(1) through
(10) and (13). 12 CFR 1003.2(g)(1)(v). These Excluded Transactions are discussed below in
Section 4.1.2 in paragraphs 1 through 10 and in paragraph 13. For more information on
Closed-End Mortgage Loans, Open-End Lines of Credit, and Excluded Transactions, see
Section 4.1.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

When determining if it meets the loan-volume thresholds, 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 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 HMDA Rule counts it for purposes of the loanvolume 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 HMDA Rule, see Section 4.2.3.
The HMDA Rule also includes a separate test to ensure that Financial Institutions that meet
only the Closed-End Mortgage Loan threshold are not required to report their Open-End
Lines of Credit, and that Financial Institutions that meet only the 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 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
Institution, a Financial Institution, and subject to Regulation C if it meets BOTH7 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

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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

MSA. 12 CFR 1003.2(c)(2). For more information on Applications and Covered Loans, see
Section 4.
2. Loan-Volume Thresholds. The mortgage-lending institution meets or exceeds either the
Closed-End Mortgage Loan loan-volume threshold or the Open-End Line of Credit loanvolume threshold in each of the two preceding calendar years. Effective January 1, 2018, the
loan-volume threshold for Closed-End Mortgage Loans is 25 Closed-End Mortgage Loans
and the loan-volume threshold for Open-End Lines of Credit is 500 Open-End Lines of
Credit. The 500 Open-End Line of Credit threshold is temporary and applies in calendar
years 2018 and 2019. Effective January 1, 2020, the loan-volume threshold for Open-End
Lines of Credit is 100 Open-End Lines of Credit.


Effective January 1, 2018 and until December 31, 2019, a mortgage-lending institution
that originated at least 25 Closed-End Mortgage Loans in each of the two preceding
calendar years, or originated at least 500 Open-End Lines of Credit in each of the two
preceding calendar years meets or exceeds the loan-volume threshold.



Effective January 1, 2020, a mortgage-lending institution that 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 meets or
exceeds the loan-volume threshold.

When an institution determines whether it meets the loan-volume thresholds, it does not
count transactions excluded by 12 CFR 1003.3(c)(1) through (10) and
(13). 12 CFR 1003.2(g)(2)(ii). These Excluded Transactions are discussed below in Section
4.1.2 in paragraphs 1 through 10 and paragraph 13. 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 thresholds, 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 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 HMDA Rule counts it for purposes of the loan-volume threshold.
Comment 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
HMDA Rule, see Section 4.2.3. The HMDA Rule also includes a separate test to ensure that
Financial Institutions that meet only the Closed-End Mortgage Loan threshold are not
required to report their Open-End Lines of Credit, and that Financial Institutions that meet
27

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

only the 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 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).

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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 the HMDA Rule requires it to collect,
record, and report information related to the transaction. A Financial Institution can use
Section 4.3 to help it determine if a transaction that involves a Covered Loan is partially exempt
from some of the HMDA Rule’s requirements for collecting, recording, and reporting
information.

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
29

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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 information related to
the transaction. See Sections 4.2 and 4.3.

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).
30

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Financial Institutions may rely on Regulation Z, 12 CFR 1026.2(a)(20),8 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 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 HMDA Rule unless it involves an extension of credit. Depending on the
facts and circumstances, some transactions completed pursuant to installment sales contracts,
such as some land contracts, may not be Closed-End Mortgage Loans because no credit is
extended. 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 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 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. It is
important to note that the HMDA Rule defines the phrase “extension of credit” differently than
Regulation B, 12 CFR part 1002.9 Comment 2(d)-2 and 2(o)-2.

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

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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

The 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 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 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 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 HMDA Rule provides that a transaction 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, (New York CEMA) is an extension of credit under the HMDA Rule.
However, the HMDA Rule also provides that certain transactions providing new funds that are
consolidated into a New York CEMA are excluded from the HMDA reporting requirements.
Comment 2(d)-2.ii. See Section 4.1.2 for additional information on the exclusion for certain
transactions consolidated into a New York CEMA.

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;
2. Second homes and vacation homes;
3. Investment properties;

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

4. Residential structures attached to real property;
5. Detached residential structures;
6. Individual condominium and cooperative units;
7. Manufactured Homes10 or other factory-built homes; and
8. Multifamily residential structures or communities, such as apartment buildings,
condominium complexes, cooperative
buildings or housing complexes, and
A loan is not secured by a Multifamily
Manufactured Home communities.
Dwelling for purposes of the HMDA Rule
12 CFR 1003.2(f); comments 2(f)-1
merely because it is secured by five or more
and -2.
individual units. In order for a loan to be
A Dwelling is not limited to a structure
that has four or fewer units and includes a
Multifamily Dwelling, which is a Dwelling
that contains five or more individual
dwelling units. A Multifamily Dwelling

secured by a Multifamily Dwelling, the
Dwelling must contain five or more
individual units. See comment 2(n)-3 for
examples of when a loan is and is not secured
by a Multifamily Dwelling.

includes a Manufactured Home
community.

Examples: A landlord obtains a closed-end mortgage loan from a Financial Institution
and uses the proceeds to improve five separate Dwellings, each with one individual unit,
located in different parts of a town. The loan is secured by the five separate Dwellings,
but is not secured by a Multifamily Dwelling.

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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

An investor obtains a closed-end mortgage loan from a Financial Institution and uses the
proceeds to purchase ten individual condominium units in a 100-unit condominium
complex. The loan is secured by the ten individual units, but not by the entire
condominium complex. The loan is secured by the ten separate Dwellings, but is not
secured by a Multifamily Dwelling.

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:
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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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 are 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
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 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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 separate
permanent financing extended to the same borrower at a later time. The separate
permanent financing may be extended by any lender (i.e., by either the lender that extended
the temporary financing or another lender). A construction-only loan or line of credit is
considered temporary financing and excluded under the HMDA Rule if the loan or line of
credit is extended to a person exclusively to construct a Dwelling for sale.
Comment 3(c)(3)-2.

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 from either Ficus Bank or another lender. 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” separate permanent
financing.
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” separate 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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 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.
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 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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 HMDA
Rule. Comment 3(c)(10)-2. For more information and examples of business-purpose 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 either 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 either of the two
preceding calendar years. However, the Financial Institution may still be required to collect
and report information regarding Open-End Lines of Credit, depending on the number of
Open-End Lines of Credit it originates in the preceding two 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.
A Financial Institution may report applications for, originations of, and purchases of ClosedEnd Mortgage Loans that are excluded transactions under 12 CFR 1003.3(c)(11). However a
Financial Institution that chooses to report such excluded applications, originations, and
purchases must report all such applications it received for Closed-End Mortgage Loans, all
Closed-End Mortgage Loans it originates, and all Closed-End Mortgage Loans it purchases
that would otherwise be Covered Loans for a given calendar year. 12 CFR 1003.3(c)(11).
Effective January 1, 2018, Regulation B permits a Financial Institution to collect information
regarding the ethnicity, race, and sex of an applicant for a Closed-End Mortgage Loan that is
an excluded transaction under 12 CFR
1003.3(c)(11), if the Financial Institution
When an institution determines whether it
submits HMDA data concerning such
meets the loan-volume thresholds, it does
Closed-End Mortgage Loans and
not count transactions excluded by
applications or if it submitted such
12 CFR 1003.3(c)(1) through (10) and
HMDA data for any of the preceding five
(13). 12 CFR 1003.2(g)(2)(ii). These
calendar years. See the final rule issued
Excluded Transactions are discussed in this
on September 20, 2017.
Section 4.1.2 in paragraphs 1 through 10 and
12. An Open-End Line of Credit if the
number of Open-End Lines of Credit that
the Financial Institution originated in
either of the two preceding calendar years
does not meet or exceed the applicable
threshold. 12 CFR 1003.3(c)(12);
comment 3(c)(12)-1. Effective January 1,
38

paragraph 13. When determining if it meets
the loan-volume thresholds, a Financial
Institution only counts Closed-End Mortgage
Loans or Open-End Lines of Credit, as
applicable, that it originated.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

2018 until December 31, 2019, the applicable threshold is 500 Open-End Lines of Credit.
During this time period, a Financial Institution is not required to collect, record, or report
Open-End Lines of Credit if it originated fewer than 500 of them in either of the two
preceding calendar years. Effective January 1, 2020, the applicable threshold will be 100
Open-End Lines of Credit. Effective January 1, 2020, 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 either of the two preceding calendar years. Comment 3(c)(12)-1. 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.
A Financial Institution may report applications for, originations of, or purchases of OpenEnd Lines of Credit that are excluded transactions under 12 CFR 1003.3(c)(12). However, a
Financial Institution that chooses to report such excluded applications, originations, or
purchases must report all applications for Open-End Lines of Credit that it receives, all
Open-End Lines of Credit it originates, and all Open-End Lines of Credit it purchases that
would otherwise be Covered Loans for a given calendar year. 12 CFR 1003.3(c)(12);
comment 3(c)(12)-2. Effective January 1, 2018, Regulation B permits a Financial Institution
to collect information regarding the ethnicity, race, and sex of an applicant for an Open-End
Line of Credit that is an excluded transaction under 12 CFR 1003.3(c)(12), if it submits
HMDA data concerning such Open-End Lines of Credits and applications or if it submitted
such HMDA data for any of the preceding five calendar years. See the final rule issued on
September 20 2017.
13. A transaction that provided (or, in the case of an application, proposed to provide) new funds
to the borrower in advance of being consolidated in a New York CEMA classified as a
supplemental mortgage under New York Tax Law section 255. However, the transaction is
excluded only if final action on the consolidation was taken in the same calendar year as the
final action on the new funds transaction. 12 CFR 1003.3(13). Additionally, the transaction
is excluded only if, at the time that it originated the transaction providing the new funds, the
Financial Institution intended to consolidate the loan into a New York CEMA. This
exclusion does not apply to similar preliminary transactions that are consolidated pursuant
to laws other than New York Tax Law section 255. Such preliminary transactions under
other laws must be reported if they are Covered Loans and are not subject to another
exclusion. Comment 3(c)(13)-1.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

New funds provided in advance of being consolidated into a New York CEMA classified as a
supplemental mortgage under New York Tax Law section 255 are reported only insofar as
they form part of the total amount of the reported New York CEMA. They are not reported
as a separate amount. If a New York CEMA that consolidates an excluded preliminary
transaction is carried out in a transaction involving an assumption, the Financial Institution
reports the New York CEMA and does not report the preliminary transaction separately.
Comment 3(c)(13)-1.

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.
There are also partial exemptions that reduce the amount of information that certain Financial
Institutions are required to report for a transaction involving a Covered Loan (i.e., an
Application for, an origination of, or a purchase of a Covered Loan). These partial exemptions
are discussed in Section 4.3.

4.2.1 Applications
For purposes of the 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).

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

This definition of Application is similar to the Regulation B definition, except that
prequalification requests11 are not Applications under the HMDA Rule. Interpretations that
appear in the official commentary to Regulation B are generally applicable to the definition of
Application under the HMDA Rule, except for those interpretations that include a
prequalification request within the definition of Application. Comment 2(b)-1.
Under the 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 is a
prequalification request (which is not an Application) or a preapproval request (which might be
an Application) is based on the 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 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;12 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 HMDA Rule is a program in which the Financial
Institution:

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 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.

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).

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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 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 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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Examples (cont’d): 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.

4.3 Partial exemptions
The 2018 Act created partial exemptions from
some of the HMDA Rule’s requirements. Only

Because the partial exemptions were not

certain Financial Institutions are eligible for

effective at the beginning of 2018, it is

these partial exemptions, and only certain

possible that a Financial Institution may

Covered Loans and Applications are covered

have collected and recorded information that

under each of the two partial exemptions. If a

it will not be required to report with its 2018

Covered Loan or Application is covered by a

HMDA data. If a Financial Institution that is

partial exemption, the Financial Institution is
not required to collect, record, and report
specific data points. The partial exemptions
were effective May 24, 2018, and apply to the
collection, recording, and reporting of HMDA
data on or after that date.
As discussed in Section 4.3.1, only a Financial
Institution that is an insured credit union or an
insured depository institution is eligible for the

eligible for a partial exemption collected and
recorded data points that it is not required to
report due to a partial exemption, the
institution may choose to report all, some, or
none of those data points for a Covered Loan
or Application covered by a partial
exemption. If the institution opts to
voluntarily report a data point for a
transaction covered by a partial exemption, it
must report all data fields that are part of
that data point.

partial exemptions. Additionally, as discussed
in Section 4.3.1., an insured depository institution must not have a negative examination history
under the Community Reinvestment Act (CRA) to be eligible for the partial exemptions.
As discussed in Section 4.3.2, each of the partial exemptions applies only to certain Covered
Loans and Applications and only if an applicable loan-volume threshold is met. An insured
46

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

depository institution or insured credit union must meet the applicable loan-volume threshold
for Closed-End Mortgage Loans in order for a partial exemption to apply to its Closed-End
Mortgage Loan transactions, and the applicable loan-volume threshold for Open-End Lines of
Credit in order for a partial exemption to apply to its Open-End Line of Credit transactions.
The 2018 Act created partial exemptions, not complete exclusions. Therefore, if a Covered Loan
or Application is covered by a partial exemption, the Financial Institution is required to collect,
record, and report 22 data points, but is exempt from collecting, recording, and reporting 26
data points for that transaction. Additionally, the Financial Institution may voluntarily report
any or all of these 26 data points for a Covered Loan or Application covered by a partial
exemption. Section 4.3.3 discusses the scope of the partial exemptions and includes tables that
list the data points that are and are not required to be collected, recorded, and reported if a
partial exemption applies to a Covered Loan or Application.

4.3.1 Eligible Financial Institutions
In order to be eligible for a partial exemption, a Financial Institution must be an:
1. “Insured credit union” as defined in Section 101 of the Federal Credit Union Act, 12
U.S.C. 1752; or
2. “Insured depository institution” as defined in Section 3 of the Federal Deposit Insurance
Act, 12 U.S.C. 1813.
Additionally, a Financial Institution that satisfies the definition of “insured depository
institution” must not have a negative CRA examination history in order to be eligible for a
partial exemption. More specifically, an insured depository institution must not have received
either of the following:
1. A rating of “need to improve record of meeting community credit needs” during each of
its two most recent examinations under Section 807(b)(2) of the CRA; or
2. A rating of “substantial noncompliance in meeting community credit needs” on its most
recent examination under Section 807(b)(2) of the CRA.
The CRA ratings used to determine if an insured depository institution is eligible for a partial
exemption are the institution’s two most recent ratings as of December 31 of the preceding year.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

A Financial Institution that does not satisfy either the definition of an “insured credit union” or
an “insured depository institution” may not rely on either of the partial exemptions, even if it
satisfies the loan-volume thresholds discussed in Section 4.3.2. Similarly, an insured depository
institution that does not satisfy the criteria regarding CRA examination history cannot rely on
either of the partial exemptions.

4.3.2 Loan-volume thresholds
In order for a partial exemption to apply to an Application or Covered Loan (including a
purchased Covered Loan), an eligible Financial Institution (i.e., an insured depository
institution that does not have a negative
CRA examination history or an insured

When a Financial Institution determines

credit union) must also meet the applicable

whether it meets the loan-volume thresholds,

loan-volume threshold.

it does not count transactions excluded by

A partial exemption applies to an eligible

12 CFR 1003.3(c)(1) through (10) and
(13). 12 CFR 1003.2(g)(2)(ii). These

Financial Institution’s Applications for,

Excluded Transactions are discussed in

originations of, and purchases of Closed-

Section 4.1.2 in paragraphs 1 through 10 and

End Mortgage Loans if the institution

paragraph 13. When determining if it meets

originated fewer than 500 Closed-End

either of the loan-volume thresholds, a

Mortgage Loans in each of the two
preceding calendar years.

Financial Institution only counts Closed-End
Mortgage Loans or Open-End Lines of
Credit, as applicable, that it originated.

A partial exemption applies to an eligible
Financial Institution’s Applications for,
originations of, and purchases of Open-End Lines of Credit if the institution originated fewer
than 500 Open-End Lines of Credit in each of the two preceding calendar years. However,
during 2018 and 2019, a Financial Institution is not required to collect or report any
information for Open-End Lines of Credit if the institution originated fewer than 500 Open-End
Lines of Credit during either of the two preceding calendar years. This is because, during 2018
and 2019, Open-End Lines of Credit are Excluded Transactions for a Financial Institution that
originated fewer than 500 of them during either of the two preceding calendar years. See the
discussion regarding Excluded Transactions in Section 4.1.2.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

The partial exemption for Closed-End Mortgage Loans and the partial exemption for Open-End
Lines of Credit operate independently of one another. Thus, in a given calendar year, an eligible
Financial Institution may be able to rely on one partial exemption but not the other.

Example: Ficus Bank is an insured depository institution as defined in Section 3 of the
Federal Deposit Insurance Act, and it received satisfactory ratings in its two most recent
CRA examinations as of December 31, 2017. In 2016, Ficus Bank originated 400 ClosedEnd Mortgage Loans and 510 Open-End Lines of Credit. In 2017, Ficus Bank originated
490 Closed-End Mortgage Loans and 515 Open-End Lines of Credit. In 2018, a partial
exemption applies to Ficus Bank’s Closed-End Mortgage Loan transactions, but a partial
exemption does not apply to Ficus Bank’s Open-End Line of Credit transactions.
Additionally, because Ficus Bank originated at least 500 Open-End Lines of Credit in
both 2016 and 2017, Ficus Bank cannot exclude Open-End Lines of Credit from its
reportable transactions in 2018 (i.e., they are not Excluded Transactions as discussed in
Section 4.1.2).

4.3.3 Collecting, recording, and reporting for transactions
covered by a partial exemption
If a partial exemption applies to a Covered Loan or Application (as discussed above), the HMDA
Rule does not require the Financial Institution to collect, record, and report some of the data
points that the HMDA Rule would otherwise require the institution to collect, record, and report
for that transaction. More specifically, if a partial exemption applies to a Covered Loan or
Application, a Financial Institution is not required under the HMDA Rule to collect, record, or
report the 26 data points listed in the table immediately below.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Data Points Eligible Financial Institutions Need Not Collect or Report under the HMDA
Rule For Transactions Covered by a Partial Exemption
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Universal Loan Identifier (ULI) (1003.4(a)(1)(i))13
Application Channel (1003.4(a)(33))
Loan Term (1003.4(a)(25))
Reasons for Denial (1003.4(a)(16))14
Property Address (1003.4(a)(9)(i))
Manufactured Home Secured Property Type (1003.4(a)(29))
Manufactured Home Land Property Interest (1003.4(a)(30))
Property Value (1003.4(a)(28))
Multifamily Affordable Units (1003.4(a)(32))
Debt-to-Income Ratio (1003.4(a)(23))
Combined Loan-to-Value Ratio (1003.4(a)(24))
Credit Score (1003.4(a)(15))
Automated Underwriting System (1003.4(a)(35))
Interest Rate (1003.4(a)(21))
Introductory Rate Period (1003.4(a)(26))
Rate Spread (1003.4(a)(12))
Non-Amortizing Features (1003.4(a)(27))
Total Loan Costs or Total Points and Fees (1003.4(a)(17))
Origination Charges (1003.4(a)(18))
Discount Points (1003.4(a)(19))
Lender Credits (1003.4(a)(20))
Prepayment Penalty Term (1003.4(a)(22))
Reverse Mortgage Flag (1003.4(a)(36))
Open-End Line of Credit Flag (1003.4(a)(37))
Business or Commercial Purpose Flag (1003.4(a)(38))
Mortgage Loan Originator Identifier (1003.4(a)(34))

If the Financial Institution chooses not to report a ULI for a Covered Loan or Application covered by a partial
exemption, it must report a non-universal loan identifier as discussed in Section 5.2.

Certain Financial Institutions supervised by the OCC and the FDIC are required by those agencies to report reasons
for denial on their HMDA loan/application registers, even if a partial exemption applies. 12 CFR 27.3(a)(1)(i), 128.6,
390.147.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

A Financial Institution may opt to collect,
record, and report one or more of these

Property address is one of the data points

26 data points for a Covered Loan or

that a Financial Institution is not required to

Application that is covered by a partial
exemption.
Seven of these 26 data points (i.e.,
property address, credit score, reasons
for denial, total loan costs or total points
and fees, non-amortizing features,
application channel, and automated
underwriting system) have multiple data
fields. If a Financial Institution opts to

report if a partial exemption applies to a
transaction. However, the state data point is
not affected by the 2018 Act or 2018 HMDA
Rule, and an institution may not report
exempt for state. If a partial exemption
applies to a Covered Loan or Application, an
institution may report state for the
transaction without reporting the other data
fields that make up the property address
data point (i.e., street address, city, and zip
code).

report a data point with multiple fields, it
must report all of the data fields that make up that data point.

Example: Ficus Bank originates a Covered Loan. A partial exemption applies to the
Covered Loan, but Ficus Bank opts to report that the Covered Loan does not have a
balloon payment. Balloon payment is one of the data fields for the non-amortizing
features data point. The other data fields that make up the non-amortizing features data
point are interest-only payments, negative amortization, and other non-amortizing
features. Because Ficus Bank chose to report the balloon payment data field, Ficus Bank
must also report whether the Covered Loan has interest-only payments, negative
amortization, and other non-amortizing features.

If a Financial Institution opts not to report a Universal Loan Identifier (ULI) for a Covered Loan
or Application that is covered by a partial exemption, the institution must provide a nonuniversal loan identifier as discussed in Section 5.2.
If a Financial Institution opts not to report one of the 26 data points other than the ULI, the
Financial Institution generally reports that the Covered Loan or Application is exempt from that
data point. However, if a data point is not applicable to the particular transaction and the
transaction is exempt from that data point, the Financial Institution may choose to report either
that the data point is not applicable or that the transaction is exempt from the data point.
51

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Example: Ficus Bank originates a Covered Loan. The sole applicant for the Covered
Loan is not a natural person. Because the applicant is not a natural person, Ficus Bank
would report the debt-to-income ratio data point as not applicable, unless a partial
exemption applies to the Covered Loan. If a partial exemption applies to the Covered
Loan, Ficus Bank could report either “not applicable” or “exempt” for the debt-to-income
ratio data point.

If a Covered Loan or Application is covered by a partial exemption, a Financial Institution must
collect, record, and report 22 data points for the Covered Loan or Application. These 22 data
points are set forth in the following table.
Data Points That Must be Collected and Reported under the HMDA Rule for Covered
Loans and Applications Covered by a Partial Exemption
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Ethnicity (1003.4(a)(10)(i))
Race (1003.4(a)(10)(i))
Sex (1003.4(a)(10)(i))
Age (1003.4(a)(10)(ii))
Income (1003.4(a)(10)(iii))
Legal Entity Identifier (LEI) (1003.5(a)(3))
Application Date (1003.4(a)(1)(ii)
Preapproval (1003.4(a)(4))
Loan Type (1003.4(a)(2))
Loan Purpose (1003.4(a)(3))
Loan Amount (1003.4(a)(7))
Action Taken (1003.4(a)(8)(i))
Action Taken Date (1003.4(a)(8)(ii))
State (1003.4(a)(9)(ii)(A))
County (1003.4(a)(9)(ii)(B))
Census Tract (1003.4(a)(9)(ii)(C))
Construction Method (1003.4(a)(5))
Occupancy Type (1003.4(a)(6)
Lien Status (1003.4(a)(14))
Number of Units (1003.4(a)(31))
HOEPA Status (1003.4(a)(13))
Type of Purchaser (1003.4(a)(11))

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Because the partial exemptions do not affect these 22 data points, Financial Institutions must
continue to collect and report these 22 data points for Covered Loans and Applications in the
manner specified in the 2015 HMDA Rule, as amended and clarified by the 2017 HMDA Rule.
As discussed above, during 2018 and 2019, a Financial Institution is not required to collect or
report any information for Open-End Lines of Credit if the institution originated fewer than 500
of them during either of the two preceding calendar years. See the discussion regarding
Excluded Transactions in Section 4.1.2.
For more information on reporting data points if a Covered Loan or Application is covered by a
partial exemption, see Section 5 of this guide and the Filing Instructions Guide that incorporates
the 2018 HMDA Rule available at http://www.consumerfinance.gov/data-research/hmda/forfilers.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5. Reportable data
The 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. Effective May 24, 2018, a Financial Institution is not
required to collect, record, or report some of the data points under the HMDA Rule for Covered
Loans and Applications covered by a partial exemption. The partial exemptions, including the
data points that need not be collected, recorded, or reported for a Covered Loan or Application
covered by a partial exemption, are discussed in Section 4.3.
Unless a partial exemption applies, a Financial Institution collects, records, and reports the new
and modified data points under the 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 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.
If a partial exemption applies to a Covered Loan or Application, the Financial Institution is not
required to collect, record, or report 26 data points for that transaction as described in Section
4.3.3. It must collect, record, and report the remaining 22 data points as required under the
HMDA Rule and as discussed in Section 4.3.3.
This section describes the HMDA Rule’s reportable data points and provides guidance on how to
report them. For more information on reporting Covered Loans and Applications covered by a
partial exemption, see Section 4.3.3. Additional instructions for reporting data points are
available in the Filing Instructions Guides at http://www.consumerfinance.gov/dataresearch/hmda/for-filers.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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.
The 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 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 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 aggregate categories
and disaggregated subcategories. When a Financial Institution requests the applicant’s
ethnicity and race, the aggregate categories must be broken down into disaggregated
subcategories. For example, the aggregate category of Hispanic or Latino must be broken
down into the subcategories of Mexican, Puerto Rican, Cuban, or Other Hispanic or Latino.
Similarly, the Asian and Native Hawaiian or Other Pacific Islander categories also must be
broken down into their respective disaggregated subcategories.
An applicant must be permitted to select one or more race or ethnicity subcategories even if
the applicant has not selected a race or ethnicity aggregate category. For example, an
applicant could select Mexican even if the applicant has not selected Hispanic or Latino.
The applicant must also be permitted to provide certain additional information. For
example, an applicant must be permitted to provide a particular Hispanic or Latino ethnicity
that is not provided on the collection form. An applicant must be permitted to provide this
information even if the applicant has not selected the Other Hispanic or Latino category.
Similarly, the applicant must be permitted to provide a particular Asian race or a particular
Pacific Islander race that is not provided on the collection form. An applicant must be
55

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

permitted to provide this information even if the applicant has not selected the Other Asian
or Other Pacific Islander category. An applicant must also be permitted to provide a
particular American Indian or Alaska Native enrolled or principal tribe even if the applicant
has not selected the American Indian or Alaska Native race category. 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.
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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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 a revised collection or Application form that includes the disaggregated categories for
Applications received on or after January 1, 2018.
On September 26, 2016, the Bureau issued an Approval Notice that permits (but does not
require) Financial Institutions to use a revised collection or Application form that includes the
disaggregated categories for Applications received during 2017. For Applications received
between January 1, 2017 and December 31, 2017, a Financial Institution may use a revised
collection or Application form that permits applicants to self-identify using disaggregated ethnic
and race categories as instructed in the HMDA Rule. Alternatively, for Applications received
before January 1, 2018, a Financial Institution may collect applicant information using a
collection form that complies with the Regulation C requirements in effect prior to January 1,
2018.
The HMDA Rule provides a transition provision that allows a Financial Institution to report the
applicant’s ethnicity, race, and sex 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Example: Ficus Bank receives an Application on December 30, 2017. Ficus Bank
chooses not to collect the applicant’s ethnicity and race using the disaggregated categories,
and on December 30, 2017, it collects the applicant’s ethnicity, race, and sex in accordance
with the instructions in effect on that day. 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 HMDA
Rule.

For more information on collecting the applicant’s ethnicity, race, and sex, see appendix B to the
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, which are described below.
For ethnicity, a Financial Institution must report every aggregate ethnicity category that the
applicant selected. If the applicant also selected one or more ethnicity subcategories, the
Financial Institution must report each ethnicity subcategory that the applicant selected, up
to a combined total of five aggregate ethnicity categories and ethnicity subcategories.
Appendix B to Part 1003.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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).

An applicant may select the Other Hispanic or Latino ethnicity subcategory, an applicant
may provide a particular Hispanic or Latino ethnicity not listed in the standard
subcategories, or an applicant may do both. If an applicant provides only a particular
ethnicity not listed in the standard subcategories, a Financial Institution is permitted, but
not required, to report both the selection of Other Hispanic or Latino in addition to the
particular ethnicity that the applicant provided. If an applicant selects Other Hispanic or
Latino and provides a particular ethnicity, the Financial Institution reports both Other
Hispanic or Latino and the particular ethnicity the applicant provided, (subject to the five
ethnicity maximum described above). For purposes of the maximum of five reportable
ethnicity categories and subcategories, the Other Hispanic or Latino subcategory and any
additional information provided by the applicant together constitute only one selection.
Appendix B to Part 1003.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

An applicant may select the Other Asian race subcategory or Other Pacific Islander race
subcategory, an applicant may provide a particular race not listed in the standard
subcategories, or an applicant may do both. If an applicant provides only a particular race
not listed in the standard subcategories, a Financial Institution is permitted, but not
required, to report both the selection of Other Asian or Other Pacific Islander, as applicable,
in addition to the particular race that the applicant provided. If an applicant selects Other
Asian or Other Pacific Islander and provides a particular race, the Financial Institution
reports both 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 Asian race or
Other Pacific Islander race subcategory and additional information provided by the
applicant together constitute only one selection. Appendix B to Part 1003.

Examples: An applicant selects the category of Hispanic or Latino and provides
Dominican as an ethnicity not listed in the standard subcategories. The applicant does
not select the Other Hispanic or Latino subcategory or any other ethnicity categories or
subcategories. The Financial Institution reports the Hispanic or Latino category and
Dominican. It may also report the Other Hispanic or Latino subcategory, but is not
required to do so.
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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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. Appendix B to Part 1003.
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
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 HMDA Rule.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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
62

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 underwriting calculations of the potential annuitization or depletion of an
applicant’s remaining assets, even if the Financial Institution relied on them when making
the credit decision. Actual distributions from retirement accounts or other assets that are
relied on by the Financial Institution as income are reported as income. 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) or nonuniversal loan identifier
Unless a partial exemption applies, a Financial Institution must report a ULI for a Covered Loan
or Application. The ULI:

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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),15 followed by up
to 23 additional letters and/or numbers that the Financial Institution assigns, and end
with a two-character check digit.16 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 that a ULI is unique within a Financial Institution, the 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).

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. Regardless of whether a Financial Institution’s transactions are covered by
a partial exemption, effective January 1, 2019, the institution must include an LEI with its submission as described
in 12 CFR 1003.5(a)(3). See Section 6.2 for more information.

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). A check digit tool is available on the Bureau’s
website. For more information on the two-character check digit, including the methodology for generating a check
digit, see appendix C to the HMDA Rule.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 previously reported ULI 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.
For a purchased Covered Loan, a Financial Institution uses the ULI that was assigned to the
Covered Loan by the Financial Institution that previously reported the Covered Loan. 12 CFR
1003.4(a)(1)(i)(D). 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, unless a
partial exemption applies with respect to the purchase of the Covered Loan.
If a partial exemption applies to a Covered

If a Financial Institution that is not eligible

Loan or Application, a Financial Institution

for a partial exemption purchases a Covered

may either report a ULI for the transaction,

Loan for which an insured depository

as discussed above, or report a non-

institution or insured credit union has

universal loan identifier for the transaction,

assigned a non-universal loan identifier, the

as discussed below.

purchasing Financial Institution does not

A non-universal loan identifier:

Instead, the purchasing Financial Institution

report that non-universal loan identifier.
assigns its own ULI.

1. Is assigned by a Financial Institution
to a Covered Loan or Application that is covered by a partial exemption.
2. Is composed of up to 22 characters (i.e., letters, numerals, or a combination of letters and
numerals). A non-universal loan identifier may, but is not required to, include a check
digit. However, the non-universal loan identifier cannot be more than 22 characters,
including any check digit.
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.
4. Must be unique within the Financial Institution.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

To ensure that a non-universal loan identifier is unique within a Financial Institution, the
Financial Institution must:
1. Ensure that its branches do not use the same non-universal loan identifier to refer to
multiple Covered Loans or Applications.
2. Assign only one non-universal loan identifier to any particular Covered Loan or
Application. Each non-universal loan identifier must correspond to a single Application
and ensuing Covered Loan, if any.
3. Assign a new non-universal loan identifier to a Refinancing or Application for
Refinancing (i.e., not use the non-universal loan identifier or ULI from the loan that is
being refinanced).
A Financial Institution may not use a previously reported non-universal loan identifier if it
reinstates or reconsiders an Application that was reported in a prior calendar year.

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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 non-universal
loan identifier (as applicable) or as a new transaction with a new ULI or non-universal loan
identifier (as applicable). If the Financial Institution treats the request for reinstatement or
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
A Financial Institution reports the application channel in the manner described below unless a
partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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).

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 Department of Veterans Affairs;
3. Guaranteed by the Rural Housing Service or the Farm Service Agency; or

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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, under
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.
Home Purchase Loans do not include loans
12 CFR 1003.2(j). A Home Purchase Loan
that are excluded transactions under the
includes: (a) a Closed-End Mortgage
HMDA Rule, such as loans that are
Loan or Open-End Line of Credit secured
temporary financing under 12 CFR
by one Dwelling and used to purchase
1003.3(c)(3). See Section 4.1.2 for more
another Dwelling; (b) a combined
information on excluded transactions.
construction-to-permanent loan that is
secured by a Dwelling; (c) a separate
permanent loan that replaces a construction-only loan or line of credit to the same borrower
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 Multifamily Dwelling used for
residential and commercial purposes 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 Multifamily 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 Dwellingsecured 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
70

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
originated on or after January 1, 2018. For purchased Covered Loans originated prior to
January 1, 2018, a Financial Institution reports “Not Applicable.” See also comments 4(a)(3)-3
and -6.

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,
71

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.

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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 initially 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.

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

Amount 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 in the manner described below unless a partial
exemption applies. If a partial exemption applies, see Section 4.3.3.
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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.

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. 12 CFR 1003.4(a)(8)(i); comments 4(a)(8)(i)-1 through -14.
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 12 CFR 1003.4(a)(8)(ii) and its
commentary for information on reporting the date of the action taken.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.11 Reasons for denial
A Financial Institution reports the reasons for denial in the manner described below unless a
partial exemption applies. If a partial exemption applies, see Section 4.3.3.17
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
specific and accurately describe the principal reason or reasons the Financial Institution denied
the Application. Comment 4(a)(16)-1.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 property location
Unless a partial exemption applies, a
Financial Institution reports the property
address of the property securing the
Covered Loan or, for an Application,
proposed to secure the Covered Loan.
12 CFR 1003.4(a)(9)(i). For Applications
that did not result in an origination, the
property address corresponds to the
location of the property proposed to secure

Property address is one of the 26 data points
that a Financial Institution is not required to
report if a partial exemption applies to a
transaction. However, the property location
data points (i.e., state, county, and census
tract) are among the 22 data points that are
not affected by the 2018 Act or 2018 HMDA
Rule.

the loan as identified by the applicant. For
Covered Loans, the property address corresponds to the property identified in the legal
obligation. Comment 4(a)(9)(i)-1. If a partial exemption applies to a Covered Loan or
Application, see Section 4.3.3 for information on reporting the property address.
Additionally, regardless of whether a partial
exemption applies, a Financial Institution

For transactions for which state, county, or

reports the property location (i.e., the state,

census tract is not required, a Financial

county, and census tract) for the property

Institution may report that the data point is

securing the Covered Loan or, for an

not applicable, or it may voluntarily report

Application, proposed to secure the Covered

the state, county, or census tract information.

Loan if: (1) the property is located in an MSA

Comment 4(a)(9)(ii)-1.

or metropolitan division (MD)18 in which the

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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Financial Institution has a home or Branch
Office; or (2) 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 CRA.
If a Financial Institution is required to
report property location, it must include the
census tract only if the property is located

Incorrect entries reporting the census tract
are not violations of HMDA or Regulation C
if the Financial Institution obtained the
census tract number from the geocoding tool
made available through the Bureau’s website,
provided the Financial Institution entered an
accurate property address into the tool and
the tool returned a census tract number. For
more information, see Section 7.

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 property location, as applicable, of the property that secures or would have secured
the Covered Loan. A Financial Institution does not report the property address or property
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 property location, as
applicable, 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

If the site for a Manufactured Home has not been identified, a Financial Institution may report
that the data points for the property address and 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 may report that the data point for the property address is not applicable.
For example, the Financial Institution may report that the data point is not applicable if the
property did not have an address at closing or if the applicant did not provide the property
address before the Application was denied, withdrawn, or closed for incompleteness. Comment
4(a)(9)(i)-3.
Similarly, when reporting an Application, a Financial Institution may report that the data points
for property location (i.e., state, county, and census tracts) are not applicable if the information
was not known before the Application was denied, withdrawn, or closed for incompleteness.
Comments 4(a)(9)(ii)(A)-1, (B)-2, and (C)-2.

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
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 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.
78

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
A Financial Institution reports manufactured home information in the manner described below
unless a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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:

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.17 Property value
A Financial Institution reports the property value in the manner described below unless a partial
exemption applies. If a partial exemption applies, see Section 4.3.3.
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
Covered Loan. 12 CFR 1003.4(a)(28). A Financial Institution reports that the data point is not
applicable for an Application that was withdrawn before a credit decision was made or was
closed for incompleteness, 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 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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
A Financial Institution reports information about multifamily affordable units in the manner
described below unless a partial exemption applies. If a partial exemption applies, see Section
4.3.3.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
programs.19 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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.20 Debt-to-income ratio
A Financial Institution reports debt-to-income (DTI) ratio in the manner described below unless
a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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 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);
86

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

4. If the applicant and co-applicant, if applicable, are not natural persons;
5. For a Covered Loan that is secured, or an Application that is proposed to be secured, by a
Multifamily Dwelling; or
6. For a purchased Covered Loan. Comments 4(a)(23)-3 through -7.

5.21 Combined loan-to-value
A Financial Institution reports combined loan-to-value (CLTV) in the manner described below
unless a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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). A Financial Institution reports the CLTV ratio relied on in
making the credit decision, regardless of which property or properties it used in the CLTV ratio
calculation. The property used in the CLTV ratio does not need to be the Identified Property and
may include more than one property and non-real property. Comment 4(a)(24)-6.
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Examples: 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.
Ficus Bank originates a Covered Loan for the purchase of a Multifamily Dwelling. The
Covered Loan is secured by the Multifamily Dwelling and certain securities. Ficus Bank
uses both the value of the Multifamily Dwelling and the value of the securities when
calculating the CLTV ratio that it relies on when making the credit decision. Ficus Bank
reports the CLTV ratio it relies on when making the credit decision.

The 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:
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
A Financial Institution reports credit score information in the manner described below unless a
partial exemption applies. If a partial exemption applies, see Section 4.3.3.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 relied on and the information about the scoring model it used. When a
Financial Institution used more than one credit scoring model and combined the scores into a
composite score and then relied on the composite score, the Financial Institution reports the
composite score and reports that more than one scoring model was used. When a Financial
Institution obtained two or more credit scores for the applicant or borrower and relied on
multiple credit scores in making the credit decision (e.g., by relying on a scoring grid that
considers each of the scores obtained or created for the applicant or borrower without
combining the scores into a composite score), the Financial Institution reports 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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Institution reports the name and version of the credit-scoring model for the score reported.
Comment 4(a)(15)-2.
If a transaction involved two or more applicants or borrowers for whom the Financial Institution
obtained or created a single credit score and if the Financial Institution relied on that single
credit score when making the credit decision, the Financial Institution reports that credit score
for the applicant and reports that the data point is not applicable for the co-applicant.
Alternatively, at its discretion, the Financial Institution may report that credit score for the first
co-applicant and report that the data point is not applicable for the 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 co-applicant. Comment 4(a)(15)-3.

Examples: Two individuals apply for a Covered Loan. Ficus Bank obtains two credit
scores for the applicant and two credit scores for the co-applicant. Ficus Bank relies on
the highest of the four credit scores it obtained. Ficus Bank reports the highest credit
score and information about the credit scoring model used. Ficus Bank may report the
score and information for the applicant and report “not applicable” for the co-applicant
or, at its discretion, Ficus Bank can report the score and information for the co-applicant
and report “not applicable” for the applicant.
Two individuals apply for a Covered Loan. Ficus Bank obtains three credit scores for the
applicant and three credit scores for the co-applicant. Ficus Bank relies on the middle
credit score for the applicant and the middle score for the co-applicant. Ficus Bank
reports the middle score and related scoring model information for the applicant and the
middle score and related scoring model information for the co-applicant.

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);

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
A Financial Institution reports automated underwriting system (AUS) information in the
manner described below unless a partial exemption applies. If a partial exemption applies, see
Section 4.3.3.
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
this information only if the Financial Institution used an AUS to evaluate the Application.
Comment 4(a)(35)-4.
For purposes of the HMDA Rule, an Automated Underwriting System or AUS is an electronic
tool:
1. Developed by a securitizer, Federal government insurer, or Federal government
guarantor of Closed-End Mortgage Loans or Open-End Lines of Credit. For this purpose,
a person is a securitizer, Federal government insurer, or Federal government guarantor
of Closed-End Mortgage Loan or Open-End Lines of Credit if that person has ever
securitized, provided Federal government insurance for, or provided a Federal
government guarantee for a Closed-End Mortgage Loan or Open-End Line of Credit at
any point in time. The person does not need to be actively securitizing, insuring, or
guaranteeing Closed-End Mortgage Loans or Open-End Lines of Credit at the time that
the Financial Institution uses the AUS to evaluate an Application.
12 CFR 1003.4(a)(35)(ii); comment 4(a)(35)-2. If a Financial Institution knows or
reasonably believes that the system it is using to evaluate an Application is an electronic
tool developed by a securitizer, Federal government insurer, or Federal government
guarantor of Closed-End Mortgages or Open-End Lines of Credit, then this prong of the
definition of AUS is satisfied, and the Financial Institution must report the name of the
91

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

system and the result generated by
that system if the second prong of
the definition, below, is satisfied. If
a Financial Institution does not
know or reasonably does not believe
that the system was developed by a
securitizer, Federal government
insurer, or Federal government
guarantor of Closed-End Mortgages
or Open-End Lines of Credit, then
the Financial Institution reports that
the data point is not applicable,
provided that the Financial
Institution maintains procedures
reasonably adapted to determine
whether the electronic tool it is
using meets the definition of an
AUS. Comment 4(a)(35)-7.

In order to know or reasonably believe that a
system is not developed by a securitizer,
Federal government insurer, or Federal
government guarantor of Closed-End
Mortgage Loans or Open-End Lines of
Credit, a Financial Institution must maintain
procedures reasonably adapted to make such
a determination. Reasonably adapted
procedures include attempting to determine
with reasonable frequency, such as annually,
whether the developer of the electronic tool is
a securitizer, Federal government insurer, or
Federal government guarantor of Closed-End
Mortgage Loans or Open-End Lines of
Credit. For example, in the course of
renewing an annual sales agreement the
developer could represent to the Financial
Institution that the developer is not such a
securitizer, Federal government insurer, or

2. That provides a result regarding
Federal government guarantor of Closed-End
both (a) the applicant’s credit risk;
Mortgage Loans or Open-End Lines of
and (b) whether the Covered Loan is
Credit. Comment 4(a)(35)-7.
eligible to be originated, purchased,
insured, or guaranteed by the
securitizer, Federal government insurer, or Federal government guarantor that
developed the electronic tool. 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. In that case,
the Financial Institution reports that the data point is not applicable.
12 CFR 1003.4(a)(35)(ii); 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
92

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.
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,

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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 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 in the manner described below unless a partial
exemption applies. If a partial exemption applies, see Section 4.3.3.
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 this data
point is not applicable. Comment 4(a)(21)-2.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

The following table describes which rate a Financial Institution reports depending on the type of
transaction. For purposes of this table, the date a revised Loan Estimate or corrected Closing
Disclosure is provided to the applicant or borrower is the date disclosed as the “Date Issued” on
that revised or corrected disclosure.
For an:

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

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. If a revised Loan Estimate (but no
Closing Disclosure) was provided to the applicant
prior to the end of the reporting period in which
final action was taken or if a corrected Closing
Disclosure was provided to the applicant prior to
the end of the reporting period in which final
action was taken, the Financial Institution reports
the rate stated in the revised or corrected
disclosure, as applicable.
Otherwise, rate at the time Financial Institution
approved the Application. Comments 4(a)(21)-1
and -2.

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

Rate applicable when Financial Institution
approved the Application. Comment 4(a)(21)-2.

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

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. If a revised Loan Estimate (but no
Closing Disclosure) was provided to the applicant
prior to the end of the reporting period in which
final action was taken or if a corrected Closing
Disclosure was provided to the applicant prior to
the end of the reporting period in which final
action was taken, the Financial Institution reports
the rate stated in the revised or corrected
disclosure, as applicable. Comments 4(a)(21)-1
and -2.
Otherwise, if rate was known when Financial
Institution approved the Application, the rate
applicable when Financial Institution approved the

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

For an:

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

Report:
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.

Application denied, withdrawn, or closed for
incompleteness

Not applicable. Comment 4(a)(21)-2.

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

Interest rate applicable at loan closing or account
opening. Comment 4(a)(21)-1.

Variable-rate Covered Loan subject to Regulation
Z’s Loan Estimate and Closing Disclosure
requirements

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

Interest rate set forth in Closing Disclosure. If a
corrected Closing Disclosure was provided to the
borrower prior to the end of the reporting period in
which final action was taken, the Financial
Institution reports the rate stated in the corrected
disclosure. Comment 4(a)(21)-1.
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.25 Introductory rate period
A Financial Institution reports the introductory rate period in the manner described below
unless a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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 a Covered Loan that includes an introductory interest rate period
measured in a unit of time other than months, the Financial Institution reports the introductory
period using an equivalent number of whole months without regard for any remainder. For
example, if an Open-End Line of Credit contains an introductory interest rate for 50 days after
the date of account opening, after which the interest rate may adjust, the Financial Institution
reports the number of months as “1”. A Financial Institution reports “1” for any introductory
interest rate period that is less than one whole month. Comment 4(a)(26)-5.
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. If the period until the first date the interest rate could have
changed under the proposed terms is measured in a unit of time other than months, the
Financial Institution reports the introductory period using an equivalent number of whole
months without regard for any remainder. A Financial Institution reports “1” if the introductory
interest rate period could have been less than one whole month under the proposed terms.
Comment 4(a)(26)-5.
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.

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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
A Financial Institution reports the rate spread in the manner described below unless a partial
exemption applies. If a partial exemption
applies, see Section 4.3.3.
For Covered Loans that are subject to
Regulation Z and for Applications that are
approved but not accepted, and that are
subject to Regulation Z (other than

Where an application or a preapproval
request is an Application under Regulation C,
but for which no disclosures are required
under Regulation Z, the Financial Institution
reports that the data is not applicable.

assumptions, purchased Covered Loans, and
Reverse Mortgages), 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.
The APOR is an APR that is derived from average interest rates and other loan pricing terms
offered to borrowers by a set of creditors for mortgage loans that have low-risk pricing
98

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

characteristics. 12 CFR 1003.4(a)(12)(ii). The Bureau publishes tables of current and historical
APORs by transaction type on the FFIEC’s website at http://www.ffiec.gov/hmda and on the
Bureau’s website at http://www.consumerfinance.gov. The methodology used to arrive at these
APORs is also published on these websites. A Financial Institution may either use the APORs
published on these websites or determine APORs itself by employing the methodology published
on these websites. A Financial Institution that determines APORs itself, however, is responsible
for correctly determining them in accordance with the published methodology. Comments
4(a)(12)-1 and -2.
To determine the reportable rate spread, a Financial Institution can follow these steps:
1. Determine the Covered Loan’s or approved but not accepted Application’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 1026.6 for an Open-End Line of Credit). If multiple APRs are
calculated and disclosed pursuant to 12 CFR 1026.6, a Financial Institution relies on the
APR in effect at the time of account opening. If an Open-End Line of Credit has a variablerate feature and a fixed-rate feature during the draw period, a Financial Institution relies on
the APR in effect at the time of account opening for the variable-rate feature. This rate for
the variable-rate feature would be a discounted initial rate if one is offered under the
variable-rate feature. Comment 4(a)(12)-3.
If the Financial Institution provides a corrected Truth in Lending disclosure, a corrected
Closing Disclosure, or a corrected open-end account opening disclosure under Regulation Z,
the Financial Institution relies on the APR disclosed on the corrected disclosure, provided
that the corrected disclosure was provided to the borrower prior to the end of the reporting
period in which final action is taken. For this purpose, the date the corrected disclosure is
provided is the date the disclosure is mailed or delivered to the borrower in person.
Comment 4(a)(12)-9.
For an Application (including a preapproval request) that was approved but not accepted, a
Financial Institution might have only provided early Regulation Z disclosures, such as a
Loan Estimate for a Closed-End Mortgage Loan or disclosures at the time of application
under 12 CFR 1026.40 for an Open-End Line of Credit. In such cases where no subsequent
disclosures are provided, a Financial Institution may rely on the APR as calculated and
disclosed in the Loan Estimate or disclosures at the time of the application under 12 CFR
1026.40, as applicable. Comment 4(a)(12)-8.
99

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 or approved but not accepted Application. To do so, the Financial Institution uses
the Covered Loan’s or Application’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 and Applications, 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 and Applications, 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 variablerate transaction with a five-year, 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 the 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, the
Financial Institution uses the shorter loan term. The Financial Institution rounds a term
shorter than six months to one year, including a term for a variable-rate Covered Loan
with no initial, fixed-rate period. Comment 4(a)(12)-4.iii.

100

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 is longer than the transaction’s term to maturity (or for an
approved but not accepted Application would have been 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 interest rate for the final time before final action is
taken. 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
final action is taken

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
final action is taken

101

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 final action is taken

Example: Borrower locks a rate of 2.5 percent on June 1 for a 30-year, variable-rate loan
with a 5-year, fixed-rate introductory period. On June 15, the borrower decides to switch
to a 30-year, 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 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.
c. Determine the Most Recently Available APOR as of Rate Set Date
A Financial Institution must compare the APR determined in Step 1 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
102

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 Non-amortizing features
A Financial Institution reports non-amortizing features in the manner described below unless a
partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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 HMDA Rule defines the terms balloon payment, interestonly 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 business-purpose transaction as having a balloon payment.

103

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.28 Data points for certain loans subject to
Regulation Z
5.28.1 Total loan costs or total points and fees
A Financial Institution reports the total loan costs or total points and fees in the manner
described below unless a partial exemption applies. If a partial exemption applies, see Section
4.3.3.
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
104

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

Institutions also report that this data point is not applicable for purchased Covered Loans.
Comment 4(a)(17)(ii)-1.
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 corrected Closing Disclosure, the
Financial Institution reports the amount disclosed in the corrected Closing Disclosure if the
corrected Closing Disclosure was provided to the borrower prior to the end of the reporting
period in which loan closing occurred. For this purpose, the date the corrected Closing
Disclosure was provided to the borrower is the date disclosed as the “Date Issued” on the
corrected Closing Disclosure. 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
A Financial Institution reports the total borrower-paid origination charges in the manner
described below unless a partial exemption applies. If a partial exemption applies, see Section
4.3.3.
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.
105

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 corrected Closing Disclosure pursuant to Regulation Z prior to the end of the
reporting period in which the loan closing occurred, the Financial Institution reports the
amount disclosed in the corrected Closing Disclosure. For this purpose, the date the corrected
Closing Disclosure was provided to the borrower is the date disclosed as the “Date Issued” on
the corrected Closing Disclosure. Comment 4(a)(18)-3.

5.28.3 Total discount points
A Financial Institution reports the total discount points in the manner described below unless a
partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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 corrected Closing
Disclosure pursuant to Regulation Z prior to the end of the reporting period in which the loan
closing occurred, the Financial Institution reports the amount disclosed in the corrected Closing
Disclosure. For this purpose, the date the corrected Closing Disclosure was provided to the
borrower is the date disclosed as the “Date Issued” on the corrected Closing Disclosure.
Comment 4(a)(19)-3.

106

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.28.4 Lender credits
A Financial Institution reports lender credits in the manner described below unless a partial
exemption applies. If a partial exemption applies, see Section 4.3.3.
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 corrected
Closing Disclosure pursuant to Regulation Z prior to the end of the reporting period in which the
loan closing occurred, the Financial Institution reports the amount disclosed in the corrected
Closing Disclosure. For this purpose, the date the corrected Closing Disclosure was provided to
the borrower is the date disclosed as the “Date Issued” on the corrected Closing Disclosure.
Comment 4(a)(20)-3.

5.28.5 Prepayment penalty term
A Financial Institution reports the prepayment penalty term in the manner described below
unless a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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
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.

107

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 reports the transaction indicators in the manner described below unless
a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
A Financial Institution separately reports whether or not a Covered Loan is or an Application is
for:
1. A Reverse Mortgage.20 12 CFR 1003.4(a)(36);
2. An Open-End Line of Credit.21 12 CFR 1003.4(a)(37); and
3. A loan made primarily for a business or commercial purpose.22 12 CFR 1003.4(a)(38).

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.

108

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

5.30 Mortgage loan originator identifier
A Financial Institution reports the mortgage loan originator identifier in the manner described
below unless a partial exemption applies. If a partial exemption applies, see Section 4.3.3.
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 CFR 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.
Some mortgage loan originators may have obtained an NMLSR ID even if they are not required
to obtain one for the particular transaction. Generally, 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. However, there are special
rules for certain purchased Covered Loans. If a Financial Institution purchases a Covered Loan
that is subject to 12 CFR 1026.36(g) and that was originated prior to January 10, 2014, the
Financial Institution may report that the data point is not applicable or may report the NMLSR
ID. If a Financial Institution purchases a Covered Loan that is not subject to 12 CFR 1026.36(g)

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 HMDA Rule.

109

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

and that was originated prior to January 1, 2018, the Financial Institution may report that the
data point is not applicable or may report the NMLSR ID.
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
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,

110

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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:

111

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
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.

112

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

6. Recording and reporting
6.1 Recording
The 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;
2. The calendar year and, effective January 1, 2020, if applicable, the calendar quarter to
which the data relate (see Section 6.2.2 for information on quarterly reporting);
113

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.

114

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

6.2.1 Annual reporting
The 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 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 HMDA Rule or on the electronic submission of
data, please see http://www.consumerfinance.gov/hmda.

6.2.2 Quarterly reporting
The 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).

115

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

6.3 Disclosure of data
6.3.1 Disclosure statement
Effective January 1, 2018, the HMDA Rule changes Regulation C’s disclosure statement
requirements. The changes apply to data collected in 2017 and later years. Under the 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 .
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 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 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
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
http://www.consumerfinance.gov/hmda. 12 CFR 1003.5(c).

116

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

A Financial Institution may, but is not required to, use the sample notice in Attachment C to
satisfy the 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, a Financial 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 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
http://www.consumerfinance.gov/hmda. Comment 5(e).

6.3.4 Aggregated data
The FFIEC will use the annual data submitted pursuant to the 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).

117

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

7. Enforcement provisions
A violation of Regulation C, both before and after the effective date of the 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). Additionally, a census tract error is not a violation of HMDA or
Regulation C if the Financial Institution obtained the census tract number from a geocoding tool
on the Bureau’s website. However, a Financial Institution’s failure to provide the correct census
tract number because the geocoding tool did not provide any census tract number for the
property address is not excused as a bona fide error. Similarly, the failure to enter the correct
census tract number because the Financial Institution entered an incorrect property address
into the geocoding tool is not excused as a bona fide error. Comment 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 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 HMDA Rule,
118

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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).

119

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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.

120

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.

121

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

8.3 Changes to appropriate Federal agency
or TIN
Under the 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 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 calendar

122

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.

123

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

9. Practical implementation
and compliance
considerations
This section of the guide sets forth some general compliance and practical implementation
considerations related to the 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 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 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 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.

124

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

First, an institution should assess whether or not it will be a Financial Institution subject to the
HMDA Rule. This assessment can be done by reviewing the HMDA Rule’s effective dates and
criteria for institutional coverage. It is important to note that the coverage criteria for
depository institutions changed in 2017, and the coverage criteria for all institutions changed
effective January 1, 2018. Additionally, the loan-volume threshold criterion for Open-End Lines
of Credit changes from 500 to 100 Open-End Lines of Credit effective January 1, 2020. A bank,
savings association, or credit union should review both the 2017 and 2018 changes as well as the
loan-volume threshold for Open-End Lines of Credit that is effective January 1, 2020. A
nondepository institution will need to review only the 2018 changes and the change to the loanvolume threshold for Open-End Lines of Credit. Financial Institutions that are not insured
depository institutions or insured credit unions are not eligible for either of the partial
exemptions. For more information on which institutions are subject to the 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 HMDA Rule. However, the
HMDA Institutional Coverage Charts and this guide are not substitutes for the HMDA Rule. For
more information on the partial exemptions, see Section 4.3.
Second, a Financial Institution must assess which of its products and services involve Covered
Loans and reportable activity under the 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 HMDA Rule may not require a Financial Institution to report
Open-End Lines of Credit. Initially, a Financial Institution is not required to collect or report
information about Open-End Lines of Credit if it originated fewer than 500 Open-End Lines of
Credit in either of the preceding two calendar years. Effective January 1, 2020, a Financial
Institution is not required to collect or report information about Open-End Lines of Credit if it
originated fewer than 100 Open-End Lines of Credit in either 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

125

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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. Additionally, effective May 24, 2018,
the HMDA Rule does not require certain insured depository institutions and insured credit
unions to collect, record, or report certain data points if a partial exemption applies to a
transaction. For more information on the partial exemptions, see Section 4.3.
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 HMDA Rule.

9.1.1 Identifying changes to business processes, policies,
and systems
The requirements of the 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 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 has created 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.

126

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
reporting requirements in the HMDA Rule reinforce the need to assess current integrations
between the Financial Institution’s technology platforms and those of its third-party 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.

127

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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 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 HMDA Rule.
The 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
notices in Attachment C. For more information on disclosure requirements, see Section 6.3 of
this guide.
The 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 HMDA Rule.
When implementing its compliance plan, a Financial Institution should note that many of the
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 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 HMDA Rule provides a transition provision for the collection of ethnicity, race, and sex
information. For Applications received on or after January 1, 2018, a Financial Institution
128

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

collects the ethnicity, race, and sex information required under the HMDA Rule. See the sample
collection form attached as Attachment A. For Applications received between January 1, 2017
and December 31, 2017, a Financial Institution may use, at its option, the revised collection form
with disaggregated ethnic and race categories and subcategories as instructed in the HMDA
Rule. Alternatively, for applications received before January 1, 2018, a Financial Institution may
collect applicant information using a collection form that applies with the Regulation C
requirements in effect prior to 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.

9.2.3 Staffing and training
To ensure that it can meet its obligations under the 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

129

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

function is to evaluate or process Applications. For example, loan officers may obtain
information from applicants and input that information into the reporting system.

130

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

SAMPLE DATA COLLECTION FORM
DEMOGRAPHIC INFORMATION OF APPLICANT AND CO-APPLICANT

$77$&+0(17$

The purpose of collecting this information is to help ensure that
all applicants are treated fairly and that the housing needs of
communities and neighborhoods are being fulfilled. For
residential mortgage lending, Federal law requires that we ask
applicants for their demographic information (ethnicity, race, and
sex) in order to monitor our compliance with equal credit
opportunity, fair housing, and home mortgage disclosure laws.
You are not required to provide this information, but are
encouraged to do so. You may select one or more
designations for “Ethnicity” and one or more designations for
“Race.”

The law provides that we may not discriminate on the basis of
this information, or on whether you choose to provide it.
However, if you choose not to provide the information and you
have made this application in person, Federal regulations require
us to note your ethnicity, race, and sex on the basis of visual
observation or surname. If you do not wish to provide some or all
of this information, please check below.

Applicant:

Co-Applicant:

Ethnicity: – Check one or more
Hispanic or Latino
Mexican
Puerto Rican
Cuban
Other Hispanic or Latino – Print origin, for example,
Argentinean, Colombian, Dominican, Nicaraguan,
Salvadoran, Spaniard, and so on:

Not Hispanic or Latino

I do not wish to provide this information

Race: – Check one or more
American Indian or Alaska Native – Print name of enrolled
or principal tribe:

Asian
Asian Indian
Chinese
Filipino
Japanese
Korean
Vietnamese
Other Asian – Print race, for example, Hmong, Laotian,
Thai, Pakistani, Cambodian, and so on:

Black or African American
Native Hawaiian or Other Pacific Islander
Native Hawaiian
Guamanian or Chamorro
Samoan
Other Pacific Islander – Print race, for example, Fijian,
Tongan, and so on:

White

I do not wish to provide this information

Sex:
Female
Male

I do not wish to provide this information

To Be Completed by Financial Institution (for an application taken in person):
Was the ethnicity of the applicant collected on the
basis of visual observation or surname?
Yes
No

Was the ethnicity of the co-applicant collected on the
basis of visual observation or surname?
Yes
No

Was the race of the applicant collected on the basis
of visual observation or surname?
Yes
No

Was the race of the co-applicant collected on the basis
of visual observation or surname?
Yes
No

Was the sex of the applicant collected on the basis
of visual observation or surname?
Yes
No

Was the sex of the co-applicant collected on the basis
of visual observation or surname?
Yes
No

+20( 0257*$*( ',6&/2685(5(*8/$7,21&9(56,21

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

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.

132

Reportable Date

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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
customary commitment or closing conditions,23 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
conditions24 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.

23 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.
24 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.

133

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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 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.
Financial Institution made a counteroffer to lend on
different terms than applicant’s initial request, and
applicant did not accept the counteroffer, declined to
proceed, or failed to respond. Comments 4(a)(8)(i)-9
and 4(a)(8)(ii)-2.

Financial Institution made counteroffer to lend on
terms different than applicant’s initial request,
applicant agreed to proceed with terms of
counteroffer, then Financial Institution conditionally
approves application subject to underwriting or
creditworthiness conditions, and applicant expressly
withdraws before satisfying all underwriting and
creditworthiness conditions and before the Financial
Institution denies the Application or closes the file for
incompleteness. Comment 4(a)(8)(i)-9.

134

Application
denied

Date Application is denied
or date notice sent to
applicant

Application
denied (based
on the original
terms requested
by applicant)

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)

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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.

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.

135

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

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

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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

136

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

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).

137

HOME MORTGAGE DISCLOSURE (REGULATION C) VERSION 3.0

File Type	application/pdf
File Modified	0000-00-00
File Created	0000-00-00