I probably should know this but today my brain does not seem to want to work correctly (perhaps it is taking a vacation that I am not aware of). Anyway my question is this:
What determines the mortgage amount that is reported to HMDA? Example: An application is generated that shows a mortgage amount of $45,000. The loan is not approved, however, during the course of the application process the mortgage amount was changed to $47,000. Do I report the $45,000 or $47,000 amount?
For loans originated, it's the amount funded (note amount); for loans purchased, it's the unpaid principle balance; for adverse action loans, it's the amount originally requested, regardless of changes throughout the loan process. All loan amounts are rounded off the nearest thousand.
If the original request is for $100,000 and there is a counter-offer for 75,000, which the applicant does not accept, then it is a denial and the loan amount reported on the LAR is the Original amount requested-$100,000.
Sounds like DRB's answer is correct if the loan was approved. However, since this application ended in an adverse action, it sounds like it should be reported as the original $45k as mentioned in bbecchtold's post.
I looked in the regulation c staff commentary 203.4(a)(7) which is where the guide to HMDA reporting points you...
Paragraph 4(a)(7) Loan amount. 1. Loan amount—counteroffer. If an applicant accepts a counteroffer for an amount different from the amount initially requested, the institution reports the loan amount granted. If an applicant does not accept a counteroffer or fails to respond, the institution reports the loan amount initially requested. 2. Loan amount—multiple-purpose loan. Except in the case of a home-equity line of credit, an institution reports the entire amount of the loan, even if only a part of the proceeds is intended for home purchase or home improvement. 3. Loan amount—home-equity line. An institution that has chosen to report homeequity lines of credit reports only the part that is intended for home-improvement or home-purchase purposes. 4. Loan amount—assumption. An institution that enters into a written agreement accepting a new party as the obligor on a loan reports the amount of the outstanding principal on the assumption as the loan amount.
That largely depends on your income and current monthly debt payments. This calculator collects these important variables and determines your maximum monthly housing payment and the resulting mortgage amount.
Mortgage Amounts
Posted - 06/22/2006 : 1:27:03 PM
