If we have a HMDA reportable loan, which application was taken in December 2017, but it is being denied January 2018, will it be reported under 2017 HMDA rules or the new 2018 rules?

2018 [your action date rules reporting year]

thank you.

So, we report under the new rules? But, what about the GMInformation? The application process has passed. We just report the info collected in 2017?

Correct. There is a transition rule for the GMI.

2. Transition rule for applicant data collected prior to January 1, 2018. If a financial institution receives an application prior to January 1, 2018, but final action is taken on or after January 1, 2018, the financial institution complies with § 1003.4(a)(10)(i) and (b) if it collects the information in accordance with the requirements in effect at the time the information was collected. For example, if a financial institution receives an application on November 15, 2017, collects the applicant's ethnicity, race, and sex in accordance with the instructions in effect on that date, and takes final action on the application on January 5, 2018, the financial institution has complied with the requirements of § 1003.4(a)(10)(i) and (b), even though those instructions changed after the information was collected but before the date of final action. However, if, in this example, the financial institution collected the applicant's ethnicity, race, and sex on or after January 1, 2018, § 1003.4(a)(10)(i) and (b) requires the financial institution to collect the information in accordance with the amended instructions.

OK. What about applications that we take in 2017 that are not HMDA, but close in 2018..and under the new rule ARE HMDA. What then??

You report it.
The action taken date is the determining factor here, not the fact that the application was taken in 2017.

I think maybe they are asking about HE loans where you may not have collected GMI at all, but the action date doesn't happen until 2018. I'm not entirely sure of the best/correct answer for that one.

From a previous thread, i think the consensus on those HE types that you took an application on in 2017 but don't close until 2018.....attempt to gather the GMI in 2018.

That is also how we are handling these situations.

In the case of a denial, where we don't have an active application - I interpret the CFPB's guidance to say that we report Race, Ethnicity and Sex as Code 3 or 6 for Information Not Received via mail, internet....etc, because it was not required to be collected at the time

The CFPB's regulatory reference chart (version 1.1 published 12/7/17) clearly states that the collection method is Code 3 for all 3 fields.

Hi,

So, if you have a HELOC application taken in 2017, and as a result did not have GMI information collected, but an action taken occurs on this application in 2018, you must attempt to collect the data and report?

I'm gathering that it should be collected since I don't see guidance in the regulation to say otherwise. You are left to assume that since action taken occurs in 2018, you follow 2018 rules- meaning that HELOC's are no longer optional reporting and as a result, some type of selection must be reported on the LAR.

Is there anyone else who can shed light on this?

Thanks.

HELOC's are no longer optional reporting - only if you are making more than 500 a year are they reportable.

Thank you.

Right, so given this for a higher volume FI, would you agree that IF you have a HELOC application that was taken in calendar year 2017, but crossed over into 2018 and had action taken, that the GMI information must be collected/reported?

Scenario:

HELOC in 2017, no GMI collected as it is not required.
Same HELOC in 2018, now required to be reported however GMI missing due to app taken in 2017 and GMI not provided.
Action taken in 2018. Collect and report? Or leave information blank?

Speaking with an examiner at the ABA Foundational course, their take was that you should attempt to collect in 2018 since HELOC's are now covered- but the person did seem a little unsure to be honest.

I think that the regulation does not provide guidance on this scenario, so we are seeing varying interpretation on this item. The blurb on Transition and GMI only states that if you collect in 2017 that it is ok to report as such in 2018. Basically, you do not have to collect the disaggregate info, etc. as someone said earlier. But, it doesn't specify how to handle non-collection in 2017 for optionally reported products that now are covered in 2018.

If it closed in 2018, you must have GMI or DI. It depends on when you collected it. If you collect it in 2017, you can go with either GMI or DI. If you collect it in 2018, you must have DI (not GMI).

The CFPB put out a "transition rule" about this. You can find it here:
https://s3.amazonaws.com/files.consumerf...-Collection.pdf

I just don't think that's the point. The transition rule does not cover loans that weren't covered by HMDA or Reg B in 2017 but are in 2018. If you did not collect it because it did not apply, I don't see how you can be required to get it and report what did not exist. If you can get it, great...if not, don't report it. There's no real way you can apply a MUST to something that wasn't even addressed.

I agree Joker, but the CFPB has stated that if an application has action taken in 2018, you must have ALL data - including GMI or DI (depending on when it was collected). IOW, it's not okay to say "this was exempt in 2017 when we took the application".

I also think it's not going to cause heartburn since they have pretty much said they won't hold us to perfection right off the bat. I would mark it not provided and move on. But that's me...everyone has to make their own choices and what they are willing to fight over. I'd fight.

ETA: and it wasn't just potentially exempt from reporting for HMDA, it was exempt from a Reg B standpoint. We all know it's more criticized to collect when you shouldn't from a B standpoint...so I would have not collected it if I thought it was probable that it would close in 2017 and I'm not going to break my neck trying to gather it just because it ran over year end.

There was no requirement to collect DI in 2017. So if I don't have it on an application taken in 2017 and it closes in 2018, I can't be required to "divine" it. The GMI rule for 2017 is done at application. It would be a violation of Reg B to now go back and change things. I'm with RR Joker.
The problem is Laserpro won't allow me to report in two formats.
This kind of stuff makes me want to quit and go back to fishing. Really.

Since we do not have to report HELOC since we do not meet the threshold, do we have to collect the GMI?

Only under Reg. B:

Official Interpretation

13(a) Information to be requested.

5. Transactions not covered. The information-collection requirements of this section apply to applications for credit primarily for the purchase or refinancing of a dwelling that is or will become the applicant's principal residence. Therefore, applications for credit secured by the applicant's principal residence but made primarily for a purpose other than the purchase or refinancing of the principal residence (such as loans for home improvement and debt consolidation) are not subject to the information-collection requirements. An application for an open-end home equity line of credit is not subject to this section unless it is readily apparent to the creditor when the application is taken that the primary purpose of the line is for the purchase or refinancing of a principal dwelling.

If you do not report HELOCs you would collect the DI only if it meets the collection requirements under Reg. B.