1. Credit score - relied on. 3. If the applicant agrees to proceed with consideration of the financial institution's counteroffer, the financial institution reports the action taken as the disposition of the application based on the terms of the counteroffer. When a financial institution evaluates income as part of a credit decision, it reports the gross annual income relied on in making the credit decision. Modular homes are not required to have HUD Certification Labels under 24 CFR 3280.11 or data plates under 24 CFR 3280.5. For partially exempt transactions under 1003.3(d), an insured depository institution or insured credit union is not required to report the loan term. For purposes of 1003.4(a), a purchase includes a repurchase of a covered loan, regardless of whether the institution chose to repurchase the covered loan or was required to repurchase the covered loan because of a contractual obligation and regardless of whether the repurchase occurs within the same calendar year that the covered loan was originated or in a different calendar year. Banks and savings associations that are required to report data on small business, small farm, and community development lending under regulations that implement the Community Reinvestment Act of 1977 (12 U.S.C. Rate spread calculation - annual percentage rate. If a covered loan is a home purchase loan as well as a home improvement loan, a refinancing, or a cash-out refinancing, an institution complies with 1003.4(a)(3) by reporting the loan as a home purchase loan. For example, if the debt-to-income ratio was one of multiple factors in a financial institution's credit decision, the financial institution has relied on the debt-to-income ratio and complies with 1003.4(a)(23) by reporting the debt-to-income ratio, even if the financial institution denied the application because one or more underwriting requirements other than the debt-to-income ratio were not satisfied. Similarly, if a couple occupies a property near their place of employment on weekdays, but the couple returns to their principal residence on weekends, the property near the couple's place of employment is a second residence for purposes of 1003.4(a)(6). 5401 et seq. Leasehold interest. Section 1003.4(a)(12)(i) requires a financial institution to compare the covered loan's annual percentage rate to the most recently available average prime offer rate that was in effect for the comparable transaction as of the rate-set date. For example, assume that Financial Institution A originates or purchases a covered loan and then sells it to Financial Institution B, who later requires Financial Institution A to repurchase the covered loan pursuant to the relevant contractual obligations. A financial institution reports that the application was denied if it made a credit decision denying the application before an applicant withdraws the application or the file is closed for incompleteness. Only one financial institution reports each originated covered loan as an origination. in Supplement I. For example, if a file is closed for incompleteness and is so reported in accordance with 1003.4(a)(8), the financial institution complies with 1003.4(a)(24) by reporting that the requirement is not applicable, even if the financial institution had calculated a combined loan-to-value ratio. (ii) For purposes of this paragraph (a)(35), an automated underwriting system means an electronic tool developed by a securitizer, Federal government insurer, or Federal government guarantor of closed-end mortgage loans or open-end lines of credit that provides a result regarding the credit risk of the applicant and whether the covered loan is eligible to be originated, purchased, insured, or guaranteed by that securitizer, Federal government insurer, or Federal government guarantor. Applicant data - completion by financial institution. (13) For covered loans subject to the Home Ownership and Equity Protection Act of 1994, as implemented in Regulation Z, 12 CFR 1026.32, whether the covered loan is a high-cost mortgage under Regulation Z, 12 CFR 1026.32(a). If the subsidiary that purchases the covered loan is not a commercial bank, savings bank, savings association, life insurance company, credit union, mortgage company, or finance company, the seller institution should report the loan as purchased by other type of purchaser. Act), 12 U.S.C. ii. 10. Otherwise, a financial institution complies with 1003.4(a)(15) by reporting a credit score for the applicant that it relied on in making the credit decision, if any, and a credit score for the first co-applicant that it relied on in making the credit decision, if any. If a covered loan primarily is for a business or commercial purpose as described in 1003.3(c)(10) and comment 3(c)(10)-2 and is a home purchase loan, home improvement loan, or a refinancing, 1003.4(a)(3) requires the financial institution to report the applicable loan purpose. A financial institution that uses an AUS, as defined in 1003.4(a)(35)(ii), to evaluate an application, must report the name of the AUS it used to evaluate the application and the result generated by that system, regardless of whether the financial institution intends to hold the covered loan in its portfolio or sell the covered loan. For example, if an institution relies on an applicant's salary to compute a debt-to-income ratio but also relies on the applicant's annual bonus to evaluate creditworthiness, the institution reports the salary and the bonus to the extent relied upon. 3. (i) A universal loan identifier (ULI) for the covered loan or application that can be used to identify and retrieve the covered loan or application file. A financial institution is required to report data regarding requests under a preapproval program (as defined in 1003.2(b)(2)) only if the preapproval request is denied, results in the origination of a home purchase loan, or was approved but not accepted. Property address - not applicable. Applications - county not provided. In the event that the mortgage loan originator is not required to obtain and has not been assigned an NMLSR ID, a financial institution complies with 1003.4(a)(34) by reporting that the requirement is not applicable. (34) For a covered loan or application, the unique identifier assigned by the Nationwide Mortgage Licensing System and Registry for the mortgage loan originator, as defined in Regulation G, 12 CFR 1007.102, or Regulation H, 12 CFR 1008.23, as applicable.
The financial institution complies with 1003.4(a)(12)(i) by using the five-year loan term. Off-frame modular homes typically have floor construction similar to the construction of other site-built homes, and the construction typically includes wooden floor joists and does not include permanent metal chassis. Covered loan amount - refinancing. For example, for a transaction involving a trust, a financial institution reports that the requirement to report income data is not applicable if the trust is the applicant. (D) For a purchased covered loan that any financial institution has previously assigned or reported with a ULI under this part, the financial institution that purchases the covered loan must use the ULI that was assigned or previously reported for the covered loan. 1. 5. An obligation is initially payable to the institution if the obligation is initially payable either on the face of the note or contract to the financial institution that is reporting the covered loan or application. See interpretation of Paragraph 4(a)(32) The financial institution reports the action taken as application withdrawn in accordance with comment 4(a)(8)(i)-13.i. ii. See 1003.3(d) and related commentary. For partially exempt transactions under 1003.3(d), an insured depository institution or insured credit union is not required to report the total borrower-paid origination charges. If the disbursement of funds takes place on a date later than the closing or account opening date, the institution may use the date of initial disbursement. In most cases, an individual's medical records or detailed information about the nature of a person's disability is not necessary for this inquiry and may be inappropriate. A financial institution, which is also a securitizer, that uses its own AUS, as defined in 1003.4(a)(35)(ii), to evaluate an application, must report the name of the AUS it used to evaluate the application and the result generated by that system, regardless of whether the financial institution intends to hold the covered loan it originates in its portfolio, purchase the covered loan, or securitize the covered loan. For example, where a financial institution provides a corrected version of the disclosures required under 12 CFR 1026.19(f), pursuant to 12 CFR 1026.19(f)(2), the date provided is the date disclosed pursuant to Regulation Z, 12 CFR 1026.38(a)(3)(i). On-frame modular homes are constructed on permanent metal chassis similar to those used in manufactured homes. 1. (b) Collection of data on ethnicity, race, sex, age, and income. For example, if a financial institution evaluates an application with the AUS of Securitizer A, subsequently again evaluates the application with Securitizer A's AUS, the financial institution complies with 1003.4(a)(35) by reporting the name of Securitizer A's AUS and the second AUS result. Income data - credit decision not made. Corrected disclosures. The following scenarios demonstrate whether an application was submitted directly to the financial institution that is reporting the covered loan or application. in Supplement I. If an applicant accepts a counteroffer for an amount different from the amount for which the applicant applied, the financial institution reports the covered loan amount granted. As part of this interactive process, the housing provider should recognize that the individual requesting the accommodation or modification is most familiar with his or her disability and is in the best position to determine what type of aid or service will be effective to meet a disability-related need. For example, if a financial institution originated a covered loan for the purchase of a multifamily dwelling, the loan was secured by the multifamily dwelling and by non-real property, such as securities, and the financial institution used the multifamily dwelling and the non-real property to calculate the combined loan-to-value ratio that it relied on in making the credit decision, 1003.4(a)(24) requires the financial institution to report the relied upon ratio. 2. A preapproval request that is withdrawn is not reportable under HMDA. In contrast, for purposes of 1003.4(a), a purchase does not include a temporary transfer of a covered loan to an interim funder or warehouse creditor as part of an interim funding agreement under which the originating financial institution is obligated to repurchase the covered loan for sale to a subsequent investor. Except for partially exempt transactions under 1003.3(d), 1003.4(a (38) requires a financial institution to identify whether the covered loan is, or the application is for a covered loan that will be, made primarily for a business or commercial purpose. For example, if a person purchases a property, occupies the property for a portion of the year, and rents the property for the remainder of the year, the property is a second residence for purposes of 1003.4(a)(6). (ii) Average prime offer rate means an annual percentage rate that is derived from average interest rates and other loan pricing terms currently offered to consumers by a set of creditors for mortgage loans that have low-risk pricing characteristics. If a covered loan is not, or in the case of an application would not have been, insured by the Federal Housing Administration, guaranteed by the Department of Veterans Affairs, or guaranteed by the Rural Housing Service or the Farm Service Agency, an institution complies with 1003.4(a)(2) by reporting the covered loan as not insured or guaranteed by the Federal Housing Administration, Department of Veterans Affairs, Rural Housing Service, or Farm Service Agency. An institution reports the covered loans that it purchased during the calendar year. If a financial institution obtains two or more AUS results and none of the systems generating those results correspond to the purchaser, insurer, or guarantor, if any, or the financial institution is following this principle because more than one AUS result is generated by a system that corresponds to either the loan type or the purchaser, insurer, or guarantor, the financial institution complies with 1003.4(a)(35) by reporting the AUS result generated closest in time to the credit decision and the name of the AUS that generated that result. For covered loans or approved applications for which disclosures were provided pursuant to both the early and the final disclosure requirements in Regulation Z, 12 CFR 1026.19(e) and (f), a financial institution reports the interest rate disclosed pursuant to 12 CFR 1026.19(f). iii. A financial institution complies with 1003.4(a)(23) by reporting that the requirement is not applicable for a covered loan secured by, or an application proposed to be secured by, a multifamily dwelling. For purposes of 1003.4(a)(6), an applicant or borrower can have only one principal residence at a time. See comment 4(a)(9)-2 regarding transactions involving multiple properties with more than one property taken as security. See interpretation of 4(f) Quarterly Recording of Data An NMLSR ID for the mortgage loan originator is not required by 1003.4(a)(34) to be reported by a financial institution if the mortgage loan originator is not required to obtain and has not been assigned an NMLSR ID. A financial institution does not report the information required by 1003.4(a)(9) for the property or properties related to the loan that are not taken as or proposed to be taken as security. It is not relevant whether the financial institution received the application from the applicant or from another institution, such as a broker, or whether another financial institution also reviewed and reported an action taken on the same application. Section 1003.4(a)(24) does not require a financial institution to use a particular combined loan-to-value ratio calculation method but instead requires financial institutions to report the combined loan-to-value ratio relied on in making the credit decision. For example, if an institution, pursuant to lender and investor guidelines, does not rely on an applicant's commission income because it has been earned for less than 12 months, the institution does not include the applicant's commission income in the income reported. Transactions for which a combined loan-to-value ratio was one of multiple factors. A financial institution reports the initial principal limit of a non-federally insured reverse mortgage as set forth in 1003.4(a)(7)(iii). However, 1003.4(a)(12)(i) does not permit a financial institution to use an average prime offer rate before its effective date. 4. If a financial institution acquires covered loans in bulk from another institution (for example, from the receiver for a failed institution), but no merger or acquisition of an institution, or acquisition of a branch office, is involved, the acquiring financial institution reports the covered loans as purchased loans. Appendix B to Part 1003 Form and Instructions for Data Collection on Ethnicity, Race, and Sex, Appendix C to Part 1003 Procedures for Generating a Check Digit and Validating a ULI, Comment for 1003.3 - Exempt Institutions and Excluded and Partially Exempt Transactions, Comment for 1003.4 - Compilation of Reportable Data, Comment for 1003.5 - Disclosure and Reporting. A financial institution that uses a system that is not an AUS, as defined in 1003.4(a)(35)(ii), to evaluate an application does not report the information required by 1003.4(a)(35)(i). Amortization period longer than loan term. Agents. For example, if a financial institution evaluates an application using the Federal Housing Administration's (FHA) Technology Open to Approved Lenders (TOTAL) Scorecard and subsequently evaluates the application with an AUS used to determine eligibility for a non-FHA loan, but ultimately originates an FHA loan, the financial institution complies with 1003.4(a)(35) by reporting TOTAL Scorecard and the result generated by that system.
which statement is true regarding denials?
