When must you report the rate spread?
Table of Contents
When must you report the rate spread?
Institutions must report the rate spread between the annual percentage rate (APR) and the average prime offer rate for a comparable transaction as of the date the interest rate is set, if the spread is equal to or greater than 1.5 percentage points for first-lien loans, or equal to or greater than 3.5 percentage points …
What is a universal loan identifier?
The Universal Loan Identifier (ULI) being the reference assigned by the reporting institution to an individual loan originated or purchased on which they report HMDA data.
Who assigns the Universal loan identifier?
The LEI is a unique, 20-digit alphanumeric identifier issued by a utility and endorsed by the LEI Regulatory Oversight Committee or endorsed or otherwise governed by the Global LEI Foundation or a successor organization. Financial institutions can go to the Global LEI Foundation website, to obtain an LEI.
What is a covered loan?
A covered loan includes a consumer loan secured by real property where the loan exceeds a specified annual percentage rate or a certain percentage of points and fees, as specified.
What is a refinance for HMDA?
Refinancing. Refinancing is any dwelling-secured loan that replaces and satisfies another dwelling-secured loan to the same borrower.
What are the three purposes of HMDA?
The data- related requirements in HMDA and Regulation C serve three primary purposes: (1) to help determine whether financial institutions are serving their communities’ housing needs; (2) to assist public officials in distributing public investment to attract private investment; and (3) to assist in identifying …
What loans are subject to HMDA?
The HMDA Rule modifies the types of transactions that are subject to Regulation C and generally adopts a dwelling-secured standard for transactional coverage. Beginning on January 1, 2018, Regulation C generally applies to consumer-purpose, closed-end loans and open-end lines of credit that are secured by a dwelling.
What do government agencies use HMDA data for?
These data help show whether lenders are serving the housing needs of their communities; they give public officials information that helps them make decisions and policies; and they shed light on lending patterns that could be discriminatory. The public data are modified to protect applicant and borrower privacy.
What are examples of covered loans?
Covered Loan definition
- FHA Loan.
- Covered Mortgage Loan.
- Aged Loan.
- Streamlined Mortgage Loan.
- VA Loan.
- Fraud Loan.
- MOM Loan.
- MERS Eligible Mortgage Loan.
What is the purpose of HMDA loan data?
These data help show whether lenders are serving the housing needs of their communities; they give public officials information that helps them make decisions and policies; and they shed light on lending patterns that could be discriminatory.
What is HMDA and why is it important?
The Home Mortgage Disclosure Act (HMDA) is a federal law that requires lenders to share their mortgage data so it’s possible to better determine and dismantle credit discrimination practices.
What’s the purpose of HMDA?
The Home Mortgage Disclosure Act (HMDA) is a law passed in 1975 that mandates mortgage lenders maintain certain records. The goal is to create greater transparency and to protect borrowers in the residential mortgage market.
What does a purchase of a covered loan include?
As of January 1, 2018, a “covered loan” under Regulation C includes either a closed-end mortgage loan or an open-end line of credit that is not an excluded transaction.
What are the two uses of HMDA data?
2 The data-related requirements in HMDA and Regulation C serve three primary purposes: (1) to help determine whether financial institutions are serving their communities’ housing needs; (2) to assist public officials in distributing public investment to attract private investment; and (3) to assist in identify ing …
What makes a loan HMDA reportable?
Under HMDA and Regulation C, a transaction is reportable only if it is an Application for, an origination of, or a purchase of a Covered Loan. These materials illustrate one approach to help determine whether a transaction involves a Covered Loan.
