ABA Banking Journal - September/October 2017 - 54

>>> REAL ESTATE LENDING

Ready, Set, Report!
A big-ticket checklist for compliance with impending HMDA requirements
BY BARBARA BOCCIA, CRCM

D

o you remember the
Supermarket Sweep game
show, where the contestants
would anxiously stand ready
with their empty shopping
carts, waiting to hear "Go!"? In a timed
race, that word would trigger their
excited run around the store, frantically
filling their cart with as many big-ticket
items as possible, while manic music
added to the frenzy. The contestant who
maximized the value of goods thrown
into one cart won. Preparing for the new
Home Mortgage Disclosure Act changes
coming in 2017, 2018 and beyond
has been a lot like that-just without
the music.
Since the new HMDA rule was finalized
by the Consumer Financial Protection
Bureau in 2015, banks have had much
to discuss, plan, negotiate and fret
over. Despite guidance from the bureau
and countless seminars and articles,
questions remain about the changes to
coverage, submission, data collection,
reporting and notices.
Indeed, as of the date this article was
written, we are checking daily for any
signs of the new CFPB HMDA portal
and geocoding tool, release of the new
Uniform Residential Loan Application
and resolution of the CFPB's recent
proposed amendments to Regulations B
and C, which should include clarification
of the complicated issues around
collecting and reporting demographic
data. We are also awaiting information
on how the CFPB will redact data
to protect the privacy of applicants
and borrowers.

54

ABA BANKING JOURNAL | SEPTEMBER/OCTOBER 2017

Regardless of some degree of
uncertainty as the year 2018 is fast
approaching, we still need to review
what we have in our compliance
"shopping cart" and consider what other
big-ticket compliance items we can toss
in to our HMDA implementation plan
to maximize our readiness. Here's a list
of the top issues in HMDA readiness to
help you navigate the aisles, and handy
references that may be available to grab
off the shelf quickly.

Is your institution in or out?
By now, you should have made a
determination as to whether you are a
"covered" institution for purposes of
reporting data in 2017, and separately
for 2018, and analyzed threshold
considerations. If you are still undecided,
the CFPB has HMDA institutional
coverage flowcharts available on
its website to help you resolve any
uncertainties.

What lines of business
must report?
You likely have been working with
your key stakeholders across all lines
of businesses to analyze transactions
and threshold considerations to know
which lines will have HMDA-reportable
"covered loans."
Generally, for consumer loans, both
closed-end and open-end lines of
credit that are "dwelling-secured" are
now reportable. There are also a lot of
changes for business-purpose loans,
which are generally reportable if they are
closed-end or open-end lines of credit
that are "dwelling-secured" and have

a home purchase, home improvement
or refinancing purpose. Your institution
may rely on the oral or written statement
of an applicant regarding the proposed
use of covered loan proceeds.
The CFPB's 2018 HMDA transactional
coverage chart is a handy guide if you
still need help to determine whether a
transaction is reportable, and it will help
you navigate through the common buzz
words that relate to this area, including
dwelling, covered loans, HELOC, cashout refinance, preapproval request,
construction loan, agricultural loan,
temporary financing, fiduciary capacity
and unimproved land.

New posted notice requirements
Hopefully, your HMDA readiness plan
did not overlook the new requirements
about posting and notices for the public.
The 2015 rule modifies the content of
the notices, and refers consumers to
the CFPB website to obtain your HMDA
data as of Jan. 1, 2018. The issue here
relates to the fact that this information
may be misleading, since that data will
not be available on the CFPB's website
on Jan. 1.
Informally, the CFPB indicates that it will
post a notice on its website explaining
that the data will not be available until
"a later date." That may not be an
acceptable response to a disgruntled
consumer or consumer advocacy
group. If you haven't looked into this yet,
consider how your institution will handle
these inquiries. Also be sure to update
your staff training so they are prepared
to answer questions from the public.



Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2017

CHAIRMAN’S VIEW
UPFRONT
PICTURE THIS
LEGAL BRIEFS
POWER UP PROFILE
THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
MAKING FRIENDS WITH FINTECH
LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
LET’S TALK PAYMENTS
IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
THE CECL RIPPLE EFFECT
FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
FINDING THE PERFECT NICHE
THREE ELEMENTS OF BANK LEADERSHIP
REAL ESTATE LENDING
ABA COMPLIANCE CENTER INBOX
WEALTH MANAGEMENT
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
FROM THE VAULT
ABA Banking Journal - September/October 2017 - Intro
ABA Banking Journal - September/October 2017 - bellyband1
ABA Banking Journal - September/October 2017 - bellyband2
ABA Banking Journal - September/October 2017 - cover1
ABA Banking Journal - September/October 2017 - cover2
ABA Banking Journal - September/October 2017 - 3
ABA Banking Journal - September/October 2017 - 4
ABA Banking Journal - September/October 2017 - 5
ABA Banking Journal - September/October 2017 - 6
ABA Banking Journal - September/October 2017 - 7
ABA Banking Journal - September/October 2017 - CHAIRMAN’S VIEW
ABA Banking Journal - September/October 2017 - 9
ABA Banking Journal - September/October 2017 - 10
ABA Banking Journal - September/October 2017 - UPFRONT
ABA Banking Journal - September/October 2017 - 12
ABA Banking Journal - September/October 2017 - 13
ABA Banking Journal - September/October 2017 - 14
ABA Banking Journal - September/October 2017 - 15
ABA Banking Journal - September/October 2017 - PICTURE THIS
ABA Banking Journal - September/October 2017 - 17
ABA Banking Journal - September/October 2017 - LEGAL BRIEFS
ABA Banking Journal - September/October 2017 - 19
ABA Banking Journal - September/October 2017 - POWER UP PROFILE
ABA Banking Journal - September/October 2017 - 21
ABA Banking Journal - September/October 2017 - THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
ABA Banking Journal - September/October 2017 - 23
ABA Banking Journal - September/October 2017 - 24
ABA Banking Journal - September/October 2017 - 25
ABA Banking Journal - September/October 2017 - 26
ABA Banking Journal - September/October 2017 - 27
ABA Banking Journal - September/October 2017 - PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
ABA Banking Journal - September/October 2017 - 29
ABA Banking Journal - September/October 2017 - 30
ABA Banking Journal - September/October 2017 - 31
ABA Banking Journal - September/October 2017 - MAKING FRIENDS WITH FINTECH
ABA Banking Journal - September/October 2017 - 33
ABA Banking Journal - September/October 2017 - LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
ABA Banking Journal - September/October 2017 - 35
ABA Banking Journal - September/October 2017 - LET’S TALK PAYMENTS
ABA Banking Journal - September/October 2017 - 37
ABA Banking Journal - September/October 2017 - 38
ABA Banking Journal - September/October 2017 - IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
ABA Banking Journal - September/October 2017 - THE CECL RIPPLE EFFECT
ABA Banking Journal - September/October 2017 - 41
ABA Banking Journal - September/October 2017 - 42
ABA Banking Journal - September/October 2017 - FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
ABA Banking Journal - September/October 2017 - 44
ABA Banking Journal - September/October 2017 - 45
ABA Banking Journal - September/October 2017 - 46
ABA Banking Journal - September/October 2017 - FINDING THE PERFECT NICHE
ABA Banking Journal - September/October 2017 - 48
ABA Banking Journal - September/October 2017 - 49
ABA Banking Journal - September/October 2017 - 50
ABA Banking Journal - September/October 2017 - THREE ELEMENTS OF BANK LEADERSHIP
ABA Banking Journal - September/October 2017 - 52
ABA Banking Journal - September/October 2017 - 53
ABA Banking Journal - September/October 2017 - REAL ESTATE LENDING
ABA Banking Journal - September/October 2017 - 55
ABA Banking Journal - September/October 2017 - 56
ABA Banking Journal - September/October 2017 - 57
ABA Banking Journal - September/October 2017 - 58
ABA Banking Journal - September/October 2017 - 59
ABA Banking Journal - September/October 2017 - ABA COMPLIANCE CENTER INBOX
ABA Banking Journal - September/October 2017 - 61
ABA Banking Journal - September/October 2017 - WEALTH MANAGEMENT
ABA Banking Journal - September/October 2017 - FROM THE STATES
ABA Banking Journal - September/October 2017 - CORPORATE SOCIAL RESPONSIBILITY
ABA Banking Journal - September/October 2017 - INDEX OF ADVERTISERS
ABA Banking Journal - September/October 2017 - FROM THE VAULT
ABA Banking Journal - September/October 2017 - cover3
ABA Banking Journal - September/October 2017 - cover4
ABA Banking Journal - September/October 2017 - outsert1
ABA Banking Journal - September/October 2017 - outsert2
ABA Banking Journal - September/October 2017 - outsert3
ABA Banking Journal - September/October 2017 - outsert4
ABA Banking Journal - September/October 2017 - outsert5
ABA Banking Journal - September/October 2017 - outsert6
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