The Home Mortgage and Disclosure Act (HMDA) and Regulation C are the focus of this course. HMDA, which requires lenders to collect, report, and disclose loan data, was enacted into law in 1975. Regulation C, issued by the Board of Governors of the Federal Reserve System, is the collective rules and administrative codes that implement the Act. Furthermore, the Division of Consumer and Community Affairs of the Federal Reserve Board issues Staff Commentary that interprets the requirements of Regulation C.
The purpose of HMDA is to provide the public with data that can be used to help determine whether financial institutions are serving the housing needs of their communities; to assist public officials in distributing public-sector investments so as to attract private investment to areas where it is needed; and to assist in identifying possible discriminatory lending patterns and enforcing anti-discrimination statutes.
This course is divided into two lessons. Lesson 1 introduces the Act, its purpose and background and main provisions. Lesson 2 describes the Loan/Application Register, its data fields, and how the form is filled out.
Course Outline:
Lesson 1 - Introduction to HMDA
- History and Purpose
- HMDA's Scope
- What Is the LAR?
- HMDA Reporting
- HMDA Disclosure
- The Broker Rule
- Enforcement
Lesson 2 - The HMDA LAR
- The Loan/Application Register (LAR) Application or Loan Information
- Action Taken
- Property Location
- Applicant Information
- Type of Purchaser of Loan
- Reasons for Denial
- Other Data
- Exercise: Filling Out the LAR
- Common Mistakes
- Summary of 2002 Amendments
- HMDA Update: Learn the New Rules
- HMDA Resources
Practice questions, links, and definitions are presented throughout both lessons to supplement the course materials and further facilitate your learning experience.
Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or Certified Mortgage Technologist (CMT) designations. This course also earns five points towards MBA's Mortgage Compliance (CMCP Level I) Achievement Certificate, or the Certified Residential Underwriter (CRU Level III) Specialist Designation. |