Home Mortgage Disclosure Act FAQs

No. To be eligible for a partial exemption, a financial institution must be either an insured depository institution as defined in Section 3 of the Federal Deposit Insurance Act or an insured credit union as defined in Section 101 of the Federal Credit Union Act. See 12 CFR § 1003.3(d)(1).

For general information on the partial exemptions, see section 4.3 of the HMDA Small Entity Compliance Guide , and Regulation C, 12 CFR § 1003.3(d).

No. Section 1003.3(d)(2) of Regulation C states that a financial institution that originated fewer than 500 closed-end mortgages that are not excluded by 12 CFR § 1003.3(c)(1) through (10) or (13) in each of the two preceding calendar years can claim the partial exemption for closed-end mortgage loans. Thus, the financial institution cannot take advantage of the partial exemption if it originated 500 or more such closed-end mortgage loans in the previous calendar year. Note that, in addition to originating fewer than 500 closed-end mortgage loan in each of the two preceding calendar years, the financial institution must meet additional requirements that are not discussed in this FAQ to be eligible for the partial exemption. See 12 CFR § 1003.3(d) for the additional requirements.

For general information on the partial exemptions, see section 4.3 of the HMDA Small Entity Compliance Guide , and Regulation C, 12 CFR § 1003.3(d).

No. Section 1003.3(d)(3) of Regulation C states that a financial institution that originated fewer than 500 open-end lines of credit that are not excluded by 12 CFR § 1003.3(c)(1) through (10) in each of the two preceding calendar years can claim the partial exemption for open-end lines of credit. Thus, the financial institution cannot take advantage of the partial exemption if the financial institution originated 500 or more such open-end lines of credit in the previous calendar year. Note that, in addition to originating fewer than 500 open-end lines of credit in each of the two preceding calendar years, the financial institution must meet additional requirements that are not discussed in this FAQ to be eligible for the partial exemption. See 12 CFR § 1003.3(d) for the additional requirements.

For general information on the partial exemptions, see section 4.3 of the HMDA Small Entity Compliance Guide and Regulation C, 12 CFR § 1003.3(d).

The partial exemption for closed-end mortgage loans and the partial exemption for open-end lines of credit operate independently of one another. Thus, in a given calendar year, an eligible financial institution may be able to rely on one partial exemption but not the other. See 12 CFR § 1003.3(d)(2) and (3). The table below contains partial exemption examples that assume that the originations indicated in the table are not excluded by 12 CFR § 1003.3(c)(1) through (10) or (13), and that the financial institution meets the other eligibility requirements of 12 CFR § 1003.3(d):

Note that prior to January 1, 2022, a financial institution originating fewer than 500 open-end lines of credit in either of the two preceding calendar years is not required to collect, record, or report HMDA data for open-end lines of credit. See 12 CFR §§ 1003.2(g), 1003.3(c)(12).

Beginning on January 1, 2022, a financial institution originating 200 or more open-end lines of credit must collect, record, and report HMDA data for open-end lines of credit.

For general information on the partial exemptions, see section 4.3 of the HMDA Small Entity Compliance Guide and Regulation C, 12 CFR § 1003.3(d).

Section 1003.3(d)(2) and (3) of Regulation C requires that the financial institution look at the amount of loans it originated in each of the two preceding calendar years. Neither 12 CFR § 1003.3(d)(2) nor (3) requires the financial institution to consider or anticipate the number of loans it will originate for the following calendar year. See HMDA Partial Exemption FAQ #4 for partial exemption examples. Note that, in addition to originating fewer than 500 open-end lines of credit in each of the two preceding calendar years, the financial institution must meet additional requirements that are not discussed in this FAQ to be eligible for the partial exemption. See 12 CFR § 1003.3(d) for the additional requirements.

For general information on the partial exemptions, see section 4.3 of the HMDA Small Entity Compliance Guide and Regulation C, 12 CFR § 1003.3(d).

Appendix C to Regulation C, 12 CFR part 1003 describes how to generate a check digit and validate a ULI. The procedures require a two-character check digit used to validate the ULI, which is calculated using certain standards established by the International Organization for Standardization (www.iso.org ).

The Bureau created a check digit tool that can be used to generate a check digit.  The check digit tool can be found at https://www.consumerfinance.gov/hmda/for-filers.

For general information on the ULI, see section 5.2 of the HMDA Small Entity Compliance Guide and Regulation C, 12 CFR § 1003.4(a)(1)(i).

Updated Mar. 19, 2018

No. Regulation C, 12 CFR §§ 1003.4(a) and 1003.5(a), require a financial institution merely to collect, record, and report a ULI for applications for covered loans that it receives, covered loans that it originates, and covered loans that it purchases for each calendar year.  Regulation C does not require the inclusion of the ULI on loan documents themselves.

For general information on the ULI, see section 5.2 of the HMDA Small Entity Compliance Guide and 12 CFR § 1003.4(a)(1)(i).

Updated Mar. 15, 2018

The Global LEI Foundation website provides a list of LEI issuing organizations at https://www.gleif.org/services/lou-services/issue-new-lei.  A financial institution may obtain an LEI, for HMDA reporting purposes, from any one of the issuing organizations listed on the web site.

For general information on the LEI, see section 5.2 of the HMDA Small Entity Compliance Guide , and Regulation C, 12 CFR §§ 1003.4(a)(1)(i)(A), effective January 1, 2018, and 1003.5(a)(3)(vii), effective January 1, 2019.

Updated Mar. 15, 2018

No. For applications taken by telephone, Instruction 1 of Appendix B to Regulation C, 12 CFR Part 1003 requires a person collecting the race or ethnicity information to orally state the information in the collection form unless the information pertains uniquely to applications taken in writing, for example, the italicized language in the sample data collection form. Instruction 9 of Appendix B to Part 1003 sets forth the aggregate and disaggregate subcategories reflected on the sample data collection form.  In this scenario, the financial institution should orally state to the applicant all race and ethnicity categories provided in Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.

For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.

Updated Mar. 15, 2018

No. Pursuant to Instruction 8 of Appendix B to Regulation C, 12 CFR Part 1003, a financial institution reports the ethnicity and race of the applicant as provided by the applicant. Therefore, a financial institution should not correct the race or ethnicity as reported by the applicant, even if the applicant has entered clearly incorrect or inappropriate information.

For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.

Updated Mar. 15, 2018

No. Instruction 8 of Appendix B to Regulation C, 12 CFR Part 1003 states that a financial institution “must report the ethnicity, race, and sex of an applicant as provided by the applicant.” Therefore, a financial institution should not correct the race or ethnicity as reported by the applicant, even to correct spelling or other errors.

For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.

Updated Mar. 15, 2018

Instruction 8 of Appendix B to Regulation C, 12 CFR Part 1003 states that a financial institution “must report the ethnicity, race, and sex of an applicant as provided by the applicant.” The rule does not address illegibility. Issues associated with illegible applicant information may be addressed by a financial institution’s compliance management system.

For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.

Updated Mar. 15, 2018

In these situations, the financial institution should report the code(s) for the race or ethnicity information, as applicable, provided by the applicant and should not report the code for “Information not provided by the applicant in a mail, internet, or telephone application” (Code 3 for Ethnicity or Code 6 for Race).

Instruction 13 of Appendix B to Regulation C, 12 CFR Part 1003 provides that “if an applicant provides partial or complete information on ethnicity, race, and sex and also checks the ‘I do not wish to provide this information’ box on an application that is taken by mail or on the internet, or makes that selection when applying by telephone, you must report the information on race, ethnicity, and sex that was provided by the applicant.”  Thus, when an applicant’s race or ethnicity information is provided by mail, internet, or telephone, the financial institution reports only the race or ethnicity information, as applicable, provided by the applicant, and the financial institution should not report the code for “Information not provided by the applicant in a mail, internet, or telephone application.”

If, however, the applicant checks only the “I do not wish to provide this information” box and does not provide other race or ethnicity information on an application that is taken by mail or on the internet, or makes that selection when applying by telephone, then Instruction 11 of Appendix B to Part 1003 provides that the financial institution must report the code for “information not provided by applicant in mail, internet, or telephone application.”

For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.

Updated Mar. 15, 2018

Whether or not a financial institution reports the ethnicity, race, and sex of a co-signer depends on whether the co-signer is a guarantor or a co-applicant.  For a guarantor, Instruction 4 to Appendix B to Regulation C, 12 CFR part 1003 states that if a loan or application includes a guarantor, a financial institution does not report the guarantor’s ethnicity, race, and sex.  Therefore, if the co-signer is a guarantor according to the terms of the legal obligation as interpreted under applicable law, a financial institution does not report the co-signer’s ethnicity, race, and sex.  For a co-applicant, Instruction 5 to Appendix B requires that a financial institution report the co-applicant’s ethnicity, race, and sex.

Updated Nov. 14, 2018

Regulation C, 12 CFR § 1003.4(a)(10)(i), requires that a financial institution collect the ethnicity, race, and sex of a natural person applicant or borrower, and collect whether this information was collected on the basis of visual observation or surname.  Where a natural person applicant does not provide ethnicity, race, or sex information for a mail, internet, or telephone application, and a financial institution does not have an opportunity to collect this information during an in person meeting during the application process, the financial institution may report either that the information was not collected on the basis of visual observation or surname (code 2) or that the requirement to report this data field is not applicable (code 3).

For consistency of data across all HMDA reporting financial institutions, the Bureau suggests, but does not require, that financial institutions use code 2.

Appendix B to Part 1003 provides instructions and a sample form for data collection on ethnicity, race, and sex.

Updated March 6, 2020

Yes, section 1003.4(a)(19) provides that for covered loans subject to the disclosure requirements in Regulation Z, 12 CFR 1026.19(f), a financial institution reports the points paid to the creditor to reduce the interest rate, expressed in dollars, as described in Regulation Z, 12 CFR 1026.37(f)(1)(i), and disclosed pursuant to Regulation Z, 12 CFR 1026.38(f)(1).  For covered loans subject to this requirement, a financial institution reports the total discount points paid to the creditor to reduce the interest rate regardless of which party paid the points.  This total is the sum of all amounts disclosed on Line A.01 of the Closing Cost Details page of the Closing Disclosure.

For example, if both the borrower and seller paid discount points to the creditor to reduce the interest rate on a covered loan, a financial institution reports on its HMDA Loan/Application Register the sum of the amounts paid by the borrower and seller, as disclosed on Line A.01 of the Closing Cost Details page of the Closing Disclosure.

For general information about HMDA reporting of discount points, see section 5.28.3 of the HMDA Small Entity Compliance Guide .

Updated August 28, 2019

Yes. Credit underwriting data such as credit score, debt-to-income ratio (DTI), and combined loan-to-value ratio (CLTV) must be reported if they were a factor relied on in making a credit decision—even if the data was not the dispositive factor. For purposes of Regulation C, it does not matter whether the application is approved or denied; if certain data was relied on in making a credit decision, such data must be reported.

For example, if the credit score was relied on in making a credit decision, the credit score must be reported. If the financial institution denied the application because the application did not satisfy one or more underwriting requirements other than the credit score, the financial institution is still required to report the credit score relied on. Comment 4(a)(15)-1. The same analysis applies to the reporting of CLTV and DTI. Comment 4(a)(24)-2 and 4(a)(23)-2.

For general information on the collection and reporting of HMDA data, see section 5 of the HMDA Small Entity Compliance Guide .

Updated Jul. 28, 2020

Yes. When a credit decision is made, sections 1003.4(a)(10)(iii) and 1003.4(a)(28) require reporting of the data “relied on in making the credit decision.” Hence, if these data are relied on in making a credit decision, such data must be reported. There is no requirement in Regulation C for either of these data points to be the dispositive factor in order to be reported.

Specifically, comment 4(a)(10)(iii)-1 explains that when a financial institution evaluates income as part of a credit decision, it must report the gross annual income relied on in making the credit decision. For example, if an institution relies on the verified gross income of an applicant to make a credit decision, the institution is required to report the verified gross income. The comment does not state that verified gross annual income must be dispositive in the credit decision. Comment 4(a)(10)(iii)-1. Comment 4(a)(28)-1 provides a similar narrative for property value.

Income and property value apply the relied-on standard in a similar way to credit score, DTI, and CLTV and should therefore be reported if relied on in making a credit decision. See comments 1003.4(a)(10)(iii)-1, 4(a)(15)-1, 4(a)(23)-2, 4(a)(24)-1 and 4(a)(28)-1.

For general information on the collection and reporting of HMDA data, see section 5 of the HMDA Small Entity Compliance Guide .

Updated Jul. 28, 2020

No. In the scenario described, part of the loan will be used for purchasing a dwelling in addition to constructing a dwelling for sale.  Therefore, the transaction described above is not excluded from HMDA and should be reported as a home purchase loan.  A construction-only loan or line of credit is considered temporary financing and excluded from collection and reporting requirements under comment 3(c)(3)-2 if the loan or line of credit is extended to a person exclusively to construct a dwelling for sale. Comment 3(c)(3)-2 to Regulation C, 12 CFR § 1003.3(c)(3).  

Updated Nov. 14, 2018

In regard to the first loan, the fact that the house was not sold after construction, and permanent financing was unexpectedly obtained, does not render the construction-only loan reportable.  However, the financial institution must report the second loan as a home purchase loan because it is permanent financing that replaces a construction-only loan under comment 2(j)-3. 

Updated Nov. 14, 2018

No.  Because the original construction loan was later modified into permanent financing, without a new extension of credit occurring, the modification is not reportable, under comment 2(d)-2.  Further, the original construction loan was designed to be replaced by separate permanent financing, and so it remains excluded from reporting under 12 CFR § 1003.3(c)(3).

Updated Nov. 14, 2018

Regulation C, 12 CFR § 1003.4(a)(25), requires that a financial institution report the scheduled number of months after which the legal obligation will mature or terminate or would have matured or terminated.  

For combined construction/permanent loans based on a single legal obligation, a financial institution reports the full loan term of the legal obligation.  12 CFR § 1003.4(a)(25).  For example, if the legal obligation for such a combined construction/permanent loan includes a one-year construction phase and a 30 year permanent phase, the reportable loan term would be 31 years (372 months).  Note that the financial institution reports the scheduled number of months after which the legal obligation will mature or terminate (or would have matured or terminated) without regard to whether the construction and permanent phases of such a combined construction/permanent loan are disclosed separately pursuant to Regulation Z, 12 CFR § 1026.17(c)(6)(ii).

For construction and permanent loans where the construction loan is a separate transaction, the financial institution reports only the loan term of the permanent loan. Because the separate construction loan is designed to be replaced by permanent financing, it is excluded as temporary financing under § 1003.3(c)(3). 

For general information about the loan term data point, see section 5.9 of the HMDA Small Entity Compliance Guide . 

Updated 4/24/2019

Regulation C,  12 CFR § 1003.4(a)(27), requires that a financial institution report whether the contractual terms of the loan include or would have included certain non-amortizing features.  

For combined construction/permanent loans based on a single legal obligation, a financial institution reports whether the contractual terms of the construction phase, the permanent phase, or both include or would have included contractual features that allow payments other than fully amortizing payments (as defined in Regulation Z, 12 CFR § 1026.43(b)(2)).  The financial institution reports this information without regard to whether the construction and permanent phases of such a combined transaction are disclosed separately pursuant to Regulation Z, 12 CFR § 1026.17(c)(6)(ii).  

For example, assume a financial institution originates a combined construction/permanent loan based on a single legal obligation and the construction phase has interest-only payments (as defined in Regulation Z, 12 CFR § 1026.18(s)(7)(iv)).  Also assume the financial institution discloses the construction and permanent phases of the loan separately pursuant to Regulation Z, 12 CFR § 1026.17(c)(6)(ii).  In this situation, the financial institution reports that the loan includes interest-only payments.  This is because there are interest-only payments in at least one phase of the construction/permanent loan.  It does not matter that the financial institution chose to disclose separately for each phase, as the transaction is still based on a single legal obligation.

For construction and permanent loans where the construction loan is a separate transaction that is designed to be replaced by permanent financing, the financial institution reports only the non-amortizing features that are included in the contractual terms of the permanent loan, because the separate construction loan is excluded as temporary financing under § 1003.3(c)(3). 

For general information about the non-amortizing features data point, see section 5.27 of the HMDA Small Entity Compliance Guide .

Updated 4/24/2019

Regulation C, 12 CFR § 1003.4(a)(21), requires that a financial institution report the interest rate applicable to the approved application, or to the covered loan at closing or account opening.  

For combined construction/permanent loans based on a single legal obligation, the construction phase is not excluded as temporary financing, so the interest rate that applies at closing or account opening is the initial interest rate for the construction phase.  

For example, assume a combined construction/permanent loan is based on a single legal obligation with a 6% interest rate for the construction phase and a 4% interest rate for the permanent phase.  Regardless of whether the financial institution uses combined or separate disclosures pursuant to Regulation Z, 12 CFR § 1026.17(c)(6)(ii), the financial institution reports 6% for the interest rate under  § 1003.4(a)(21). 

Further, comment 4(a)(21)-1 explains that for covered loans or applications subject to the disclosure requirements of Regulation Z, 12 CFR § 1026.19(e) and (f), a financial institution complies with § 1003.4(a)(21) by reporting the interest rate disclosed on the applicable disclosure.  For covered loans or approved applications for which disclosures were provided pursuant to both the early and the final disclosure requirements in § 1026.19(e) and (f), a financial institution reports the interest rate disclosed pursuant to § 1026.19(f).  A financial institution may rely on the definitions and commentary to the sections of Regulation Z relevant to the disclosure of the interest rate pursuant to § 1026.19(e) or (f).  Thus, for the example above, the financial institution reports the interest rate disclosed on the Closing Disclosure for the transaction, if combined disclosures are used, or the Closing Disclosure for the construction phase, if separate disclosures are used pursuant to Regulation Z, 12 CFR § 1026.17(c)(6)(ii).

For construction and permanent loans where the construction loan is a separate transaction designed to be replaced by permanent financing, the financial institution reports only the initial interest rate of the permanent loan.

For general information about the interest rate data point, see section 5.24 of the HMDA Small Entity Compliance Guide .

Updated 4/24/2019

Regulation C,  12 CFR § 1003.4(a)(26), requires that a financial institution report the number of months, or proposed number of months in the case of an application, until the first date the interest rate may change after closing or account opening.  Note that § 1003.4(a)(26) provides a single standard for reporting that does not depend on loan type or loan purpose and that applies regardless of how the interest rate adjustment that may occur is characterized.  

For combined construction/permanent loans based on a single legal obligation, the construction phase is not excluded as temporary financing, so the financial institution reports the number of months, or proposed number of months, until the first date the interest rate may change after closing or account opening regardless of whether the construction and permanent phases of the loan are disclosed separately pursuant to Regulation Z, 12 CFR § 1026.17(c)(6)(ii).  

If the interest rate may first change during the construction phase, the financial institution reports the number of months, or proposed number of months, after the closing or account opening until the date that the interest rate may first change.  If the interest rate may first change during the permanent phase, the financial institution reports the number of months, or proposed number of months, after closing or account opening until the date that the interest rate may first change, which includes the number of months in the construction phase and any months in the permanent phase that occur before the interest rate may first change.

For construction and permanent loans where the construction loan is a separate transaction designed to be replaced by permanent financing, the financial institution reports the number of months until the interest rate may change in the permanent loan only, because the construction loan is excluded as temporary financing under § 1003.3(c)(3). 

For general information about the introductory rate period data point, see section 5.25 of the HMDA Small Entity Compliance Guide .

Updated 4/24/2019