HMDA filing compliance involving an acquired branch

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Question:

We are currently in the process of acquiring a branch of another financial institution. I am by no means a guru in HMDA but certainly not in acquisitions and this is the first time we've done this in a long time (before my time). I am under the impression aftery some reading of the HMDA Getting It Right Guide, that we have to report the loans we obtain through the purchase. This is okay, but I have others saying that we only have to report the ones they originated in 2024, which I don't think is accurate, but I could be wrong. Additionally, the other institution's staff members aren't being very forth coming with information and have advised that we will get the information for the files we are getting, however, we will have to go through it to gather the HMDA required data, as they will not provide us with a LAR. I'm also trying to decipher the guide and if we qualify to not report certain fields, like Loan Costs, Origination Fees and Discount Points.

Answer:

It is unfortunate that you are not getting cooperation from the institution from which you are acquiring the branch, but you actually do not need a lot of help here.

Under section 1003.3(c)(6) of Regulation C, the loans you are getting as part of the acquisition of the branch are reported by the institution that originated them. Your bank -- the acquiring bank -- does not report them at all. Check out section 1003.3(c) and the applicable official interpretations at https://www.bankersonline.com/regulations/12-1003-003#c.

What you will report are any loans for which the applications originated with the branch being acquired and were still in the "pipeline" on the date of the acquisition of the branch. Your bank will report on any of those loans made by your bank (and applications that are withdrawn or denied) after your acquisition date for the branch.

The institution from which the branch is being purchased is required to include on its LAR filing all loans originated through that branch prior to the transfer of the branch to your bank, as well as any applications denied, withdrawn, etc., prior to the transfer date.