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The Home Mortgage Disclosure Act makes essential information accessible for professionals in the financial industry to help us all make better decisions based on data analysis. Be sure to check out the Bureau’s last update for the most recent changes before submitting your LARs.

Here’s what you need to know about the HMDA, new rules, and tips for preparing your 2018 HMDA submission—the deadline is on March 1st.

The New 2018 HMDA Rule

On May 24, 2018, the President signed off on the addition of partial exemptions for insured depository institutions and credit unions from HMDA requirements.

According to the Bureau of Consumer Financial Protection, this rule clarifies that:

  • These institutions can report exempt data fields as long as they report all data fields accurately within any exempt data point for which they report data.
  • Only HMDA reportable loans and lines of credit can be allocated towards the partial exemptions thresholds.
  • Only certain Regulation C data points are covered by the partial exemptions.
  • If an institution chooses not to report a universal loan identifier, a non-universal loan identifier for partially exempt transactions will be designated.
  • The negative Community Reinvestment Act examination history may be excluded from the partial exemptions.

2018 HMDA Submission Tips

Are you working on the 2018 HMDA submission right now? Don’t worry, we’ve got you covered! Here are a few last-minute edit checks you may want to keep an eye on:

  • Pay attention to how you submit your HMDA data loan/application register. Each data field within each row needs to be separated with a pipe character (“|”).
  • Telephone numbers must follow the format “999-999-9999”.
  • The quality edits implemented by HMDA will check whether entries in the individual data fields or combinations of data fields conform to expected values.
  • Make sure “NA” is capitalized. You cannot use “na”.
  • Don’t report the income using commas. You need to round it to the nearest thousand. For example, an income of 99,500 should be reported as 100.
  • Upload your HMDA LAR submission into LP before submitting it to FFIEC. This is a good way to make sure there are no invalid codes.

At ComplianceTech, we pride ourselves on making data easy to access and to analyze so that you can make better decisions for your clients and organization. For more information on our software solutions, contact us through our website or call us at (202) 842-3800.