Collecting GM Under Reg B on Temporary Loans

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Question:

In compiling my 2005 HMDA data, I have a lender who collected government monitoring information on temporary loans (construction or bridge). These are not HMDA reportable, but can he still collect the GM under Reg B, or will this be a violation?

Answer:

Look at comment #6 in OSC for Section 202.13(b). It states: "Inadvertent notation. If a creditor inadvertently obtains the monitoring information in a dwelling-related transaction not covered by Section 202.13, the creditor may process and retain the application without violating the regulation."

First published on BankersOnline.com 4/03/06