U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D.C. 20410-8000 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER TI-404 AUG 1 1990 MEMORANDUM FOR: ALL TITLE I LENDING INSTITUTIONS Attn: Installment Loan Department SUBJECT: Home Mortgage Disclosure Act Reporting Requirements The Home Mortgage Disclosure Act of 1975 (HMDA) was enacted to provide the public with loan data that may be used to (a) determine whether lending institutions are serving the housing credit needs of their communities, (b) assist government agencies and private investors in making investment decisions, and (c) help in identifying possible discriminatory lending practices. HMDA was amended in 1989 to expand its coverage to include more lenders, and to require that all covered institutions make annual disclosure on loans originated or purchased and on loan applications received, even if the loans were not made. The applicable regulations on home mortgage disclosure are the Federal Reserve System's Regulation C, a copy of which is attached. Lenders Subject to Regulation C Regulation C applies to both home purchase loans, which includes loans for the purchase of manufactured homes, and home improvement loans, whether or not the loan is secured by a mortgage or deed of trust. Title I lenders are required by Regulation C to collect and report data on these types of loans if they meet the following criteria: o Have assets of more than $10 million (including assets of their parent organizations); o Have a home or branch office located in a Metropolitan Statistical Area (MSA), or have received applications for, originated or purchased five or more loans on properties located in an MSA during the previous calendar year; and o Are not otherwise exempt from the Federal Reserve System's regulations. Title I lenders meeting the Regulation C criteria are required to collect data annually, beginning with calendar year 1990. This data is to be reported by not later than the first day of March of the following year, beginning March 1, 1991. The data is to be reported on the Loan/Application Register prescribed by Regulation C, and must be sent to the Federal supervisory agency specified in Appendix A to Regulation C. For purposes of HMDA reporting, HUD is the Federal supervisory agency for all financial institutions which meet the criteria of Regulation C but are not regulated by other Federal agencies (e.g., mortgage bankers). 2. ALL TITLE I LENDERS MEETING THE REGULATION C CRITERIA ARE REQUIRED TO REPORT TO THE APPROPRIATE FEDERAL SUPERVISORY AGENCY ON ALL HOME PURCHASE AND HOME IMPROVEMENT LOANS ORIGINATED OR PURCHASED -- WHETHER FHA, VA, FARMERS HOME ADMINISTRATION, OR CONVENTIONAL -- AND ON ALL APPLICATIONS FOR SUCH LOANS, EVEN IF THE LOANS WERE NOT MADE. Lenders will receive a HMDA disclosure statement prepared by the Federal Financial Institutions Examination Council, which must be made available to the public within 30 calendar days of its receipt. The disclosure statement must remain available to the public for five years. Lenders Not Subject to Regulation C Title I lenders that are not otherwise required to comply with HMDA must report data on all FHA-insured loans originated or purchased, as well as data on all applications for such loans, to the Secretary of HUD. This data is to be reported to HUD in the same format as is prescribed for lenders reporting to the Federal supervisory agencies under Regulation C. ALL TITLE I LENDERS MUST REPORT TO HUD ON ALL ORIGINATIONS AND PURCHASES OF FHA-INSURED LOANS AND ON ALL APPLICATIONS FOR SUCH LOANS, EVEN IF YOU HAVE ALSO INCLUDED THIS DATA IN A REPORT TO YOUR FEDERAL SUPERVISORY AGENCY. Loan/Application Registers for all FHA-insured loans and loan applications are to be prepared on an annual basis beginning with calendar year 1990, and must be submitted to HUD by not later than March 1 of the following year, beginning March 1, 1991. Completed forms are to be sent to the following address: Assistant Secretary for Housing - FHA Commissioner HMDA Reporting, Room 9233 Department of Housing and Urban Development 451 Seventh Street, S.W. Washington, D.C. 20410 General Reporting Requirements The preferred method of reporting is a computer tape facsimile of the Loan/Application Register, although non-automated reports are acceptable. Automation instructions for machine-readable input are given in Appendix A to this letter. There will be an edit process for detecting errors in both automated and non-automated reports. Lenders will be expected to correct mistakes detected through the edit process. A copy of the edit routine is included for lenders who wish to pre-edit the data before submission. In completing the Loan/Application Register, lenders must indicate the proper Respondent I.D. and Agency Code in the boxes labeled Control Number. See Appendix B for reporting instructions. If the instructions specify an FHA-approved mortgagee number, Title I lenders are to use their five-digit contract number, add four zeros, then add the check digit. 3. For Further Information Lenders may obtain further assistance from "A Guide to HMDA Reporting: Getting It Right!," issued by the FFIEC in June 1990. This publication can be obtained by contacting your Federal supervisory agency or by writing to: Dr. William F. Shaw, Director Information Systems Division, Room 9241 Department of Housing and Urban Development 451 Seventh Street, S.W. Washington, D.C. 20410 Any questions concerning this letter or HMDA reporting requirements may also be directed to Dr. Shaw at the address given above or by calling the Information Systems Division on (202) 708-2190. Sincerely yours, C. Austin Fitts Assistant Secretary for Housing- Federal Housing Commissioner Attachments