HMDA: The Cost of Non-Compliance

They've warned us that they would do it, and now it is happening. The regulatory agencies will impose penalties for HMDA violations. The most recent penalty was imposed by the OCC. AMCORE Banks will pay $6,000 for numerous reporting errors in its two banks. The OCC found error rates of 47% and 70% in the two banks.

The amount of the fine is modest relative to the extent of the violations, making this more of a shot across the bow. But the warning should be clear. It doesn't do to fool with HMDA. Get it right and use the money saved for more compliance resources.

Copyright © 1998 Compliance Action. Originally appeared in Compliance Action, Vol. 3, No. 1, 1/98