As a Compliance Specialist - I review all of our mortgage loan for HMDA - I constantly run into the scenario where our MO takes an application from a borrower (not sure how they are taking it) but- indicated that the application is taken Face to Face and sign/date it. Then the borrower signs application and dates it for a different date from when the MO dated the application - In my view - the date of application is the date the when MO received all six pieces. - I just want to be consistent.

What date should I be taking for the Date of Application for HMDA - the date of the MO (Face to Face) or the date when the borrower signed the application.-3 days later from the Mortgage originator date?

The reason - I'm not sure how the application is really taken by the borrower - is due to the fact that the credit report is being run at least a week - sometimes two weeks before the application is complete. There is proper signage from the borrower to obtain the credit report - I just want to know when the actual application started.

It is going to be a policy decision, but I would say that your date can't be any later then when the LO signed and dated the application. The date the customer later signs the application is irrelevant. As far as pulling credit a week or two in advance, that smacks of prescreening and it going to be a problem come a fair lending examination. What do you mean "proper signage from the borrower". How and more importantly why is this happening?

As far as the Credit report - I have brought this up many times to our loan originators of the importance of this - as that this is an issue for Fair Lending. What I mean about proper signage from the borrower is that the borrower is signing a borrowers blanket authorizing us to pull the credit report. (we are trying to work on this one - this is an on going issue).

So, just so I'm clear - (because HMDA is so clear - clear as mud) - I'm going to take the date of the LO signed - over the date of the borrower and when they had signed. -

I bring finding up all the time - one quarter will go well - LO seem to understand that the information needs to be consistent and then other quarters where everyone forget what the HMDA rules are... its a wonder that I'm sane... Ha!

I do not find this very often, but in the case where the credit report pre-dates the application, and since the bank cannot access credit without permissible purpose (which is the submission of an application by the applicant to the bank), I report the date of application as the date the credit report was obtained....under the assumption that the initial application "must have" been taken verbally and later reduced to writing on an application form.

I DO always ask the lender and sometimes he/she will reply that an old credit report was used. I have issues with that as well....another topic entirely.....but in that case, I look for an application/loan/file dated just prior to the date of the credit report.

You are probably going to get a lot of differing opinions on this, but like others have said, what you consider the application date is something your company needs to decide. I then suggest putting it in you published HMDA policy and being consistent on it. A few notes:

You mention the 6 pieces related to a TRID application. Many companies successfully use the TRID application date as the HMDA application date, but the two are not really the same. A HMDA application is defined as "an oral or written request for a covered loan that is made in accordance with procedures used by a financial institution for the type of credit requested." Most people say that the "in accordance with the procedures used by a financial institution..." just relates to the application methods you accept (mail, internet, FTF, etc.) and is not a free license to put qualifiers on having an application. So you do not necessarily need the 6 pieces to have a HMDA application and it is probably possible to have a TRID application without a HMDA application.

I also don't really agree that the credit pull date is always the HMDA application date (though it usually is and is probably the safest thing to use). If a borrower calls and just wants to discuss rates or types of loans, then I don't necessarily think it is a HMDA application. Having an application is one permissible purpose for pulling credit (though application is not really defined in that purpose), but others are if you have written permission or if you you have a "legitimate business need for it in connection with a business transaction that is initiated by the consumer". In either of those cases, it is possible they haven't made an "oral or written request for a covered loan". Also, "application" and "business transaction" are not really defined in FCRA that I know of, which complicates linking the FCRA application to a HMDA (or any other rule) application.

The HMDA rule allows you to "report the date it received the application, as defined under § 1003.2(b), or the date shown on the application form." It would have been nice if they had specified which "date" they are referring to on the form, but I think you have a pretty good argument if you always use the earliest signature date on the form for the application date.

It might not hurt to email a question to the CFPB on it. There is a 98% chance you will get no response or a canned response, but if someone later doesn't like your procedure you can at least say you tried to get some official guidance but were ignored.