Home Mortgage Disclosure Act Compliance
The Home Mortgage Disclosure Act (HMDA) requires that all loan applications involving dwelling-secured property be reported on a Loan Application Register (LAR). There are many fields that must be reported on the LAR for each loan application. The reporting deadline is March 1 of each year, for loan applications for which action was taken in the previous calendar year. The LAR is subject to regulatory review, with a sample of LAR entries review, and a low tolerance for errors. Too many errors will result in an expanded review, and possible required correction and re-filing of the LAR.
Home Mortgage Disclosure Act Expanded Reporting
Beginning in 2018, the number of reporting fields for each LAR entry more than doubled. Most of the additional fields have to do with credit terms, and, for originated loans, fees and charges imposed by the lender. The intent of the added reporting is for examiners to scrutinize lending and credit terms so as to ensure that all borrowers have access to loans on a fair and non-discriminatory basis.
These added fields make HMDA reporting a much more labor-intensive process and an area that demands detailed scrutiny. Failure to correctly report loan application information can result in costly correction and re-filing, and, if persistent, Civil Money Penalties.
Why Engage Us for HMDA Compliance
We have considerable experience in "scrubbing" HMDA LARs so as to ensure regulatory scrutiny and compliance. Our scrubbed LARs have passed regulatory review and have enabled institutions to avoid costly re-filing and CMPs.
Reach Out to Us Today
Let us help you with HMDA compliance. Reach out today for a free consultation !