GMI Collection on a Fixed Rate Home Equity Loan

Question:

A customer applies for a fixed rate home equity loan which will be the first and only lien on the property. Do I need to collect government monitoring information?

Answer:

It depends on the purpose of the loan and whether your bank is subject to HMDA. If you are a HMDA bank and the purpose of the loan is for home improvement, then GMI needs to be collected. If the answer is no to either of these, the GMI should not be collected.

First published on BankersOnline.com 6/18/07