HMDA Configuration and Maintenance

Lending Lending HMDA Configuration and Maintenance

1. Introduction

FLEX offers comprehensive HMDA (Home Mortgage Disclosure Act) configuration and maintenance capabilities. This module allows users to add, maintain, and report HMDA information, which is crucial for compliance. Starting in 2019, credit unions are required to report quarterly.

2. Prerequisites

Report configuration must be completed prior to adding individual HMDA records.

3. HMDA Configuration

HMDA configuration defines the general information for your institution’s HMDA reporting.

3.1. Accessing HMDA Configuration

HMDA configuration is primarily accessed under Real Estate Loans in the FLEX Main Menu:

  1. Navigate to Loans.
  2. Expand Real Estate Loans.
  3. Expand HMDA.
  4. Select HMDA Configuration.

It may also be accessed during the Loan Application process.

3.2. HMDA Configuration Screen (General Information)

This screen allows you to input and save your institution’s HMDA reporting details.

  • Respondent ID: Enter the ID number provided to the credit union by the Federal Reserve.
  • Agency Code: Enter the Agency Code provided to the credit union by the Federal Reserve.
  • Contact Name: Enter the name of the credit union contact person for HMDA.
  • Contact Email: Enter the email address of the credit union contact.
  • Contact Address, C/S/Z+4: Enter the full address of the credit union contact.
  • Legal Entity ID: Enter the legal entity ID number.
  • Tax ID: Enter the credit union’s tax ID.
  • Activity Year: Enter the year for which all HMDA activity will be reported.
  • Contact Phone Number: Enter the phone number of the credit union contact.
  • Contact Fax Number: Enter the fax number of the credit union contact.
  • Last Submission Date: This date will automatically update when the HMDA file is successfully sent by the credit union.
  • Last Submission Time: This time will automatically update when the HMDA file is successfully sent by the credit union.

3.3. HMDA Configuration Screen (Company Information)

  • Company Name: Enter the full name of the credit union.
  • Street Address, C/S/Z+4: Enter the street address of the credit union.

3.4. HMDA Configuration Screen (Parent Company Information)

  • Company Name: Enter the name of the parent company, if applicable.
  • Street Address, C/S/Z+4: Enter the street address of the parent company, if applicable.

4. HMDA Maintenance

HMDA Maintenance is used to add and maintain individual HMDA records for loans and applications.

4.1. Accessing HMDA Maintenance

HMDA records can be accessed through two primary methods:

  • From the FLEX Main Menu:
    • Navigate to Loans.
    • Expand Real Estate Loans.
    • Expand HMDA.
    • Select HMDA Maintenance.
    • This method is typically used after a new mortgage loan has been created.
  • From Loan Application:
    • HMDA Maintenance is also available as a dedicated tab within the Loan Application process, allowing data entry during the application workflow.

4.2. HMDA Maintenance Screen Overview

The main HMDA Maintenance screen allows you to search, add, edit, and delete HMDA records.

  • Application Number Search: Enter an application number or click Search to view all HMDA records.
  • HMDA Records List: Displays existing records with columns such as Application Number, Account Number, Suffix, and Opening Date.
  • Actions:
    • Add: Creates a new HMDA record.
    • Edit: Edits a highlighted existing record.
    • Delete: Deletes a highlighted record.

4.3. Add/Edit HMDA Record Tabs

When adding or editing a HMDA record, you will navigate through several tabs to input comprehensive data:

4.3.1. Loan Information Tab

This tab captures core loan and property details.

  • Application Info:
    • Application Number: Enter the application number to be reported.
    • Universal Loan Identifier: Displays the system-generated Universal Loan Identifier.
    • Application Date: Indicates the date of the application.
    • Account: Enter the account number of the main applicant.
    • Suffix: Enter the loan suffix, if applicable. Can be left blank if the loan was denied.
    • Date Loan Opened: Enter the date the loan was opened.
    • Loan Type: Select the loan type (e.g., Conventional, FHA Insured, VA Guaranteed, FSA/RHS Guaranteed).
    • Loan Purpose: Select the purpose of the loan (e.g., Home purchase, Home improvement, Refinance, Cash out refinancing, Other, Not applicable).
    • Loan Amount (K): Indicates the loan amount requested or granted, in thousands.
    • Pre-Approval: Select to indicate if loan pre-approval was requested.
    • Year Of Report: Indicates the reporting year for the record.
    • Reporting Quarter: Indicates the quarter the record is reported.
    • Reverse Mortgage: Indicate if the loan is a reverse mortgage.
    • Line of Credit: Indicate if the loan is a line of credit.
    • Business/Commercial: Indicate if the loan is for business/commercial purposes.
  • Property Location:
    • Street Address, City, State Code, Zip Code: Enter the full address of the property.
    • County Code: Enter the three-digit code for the county where the property is located (assigned by Office of Management and Budget).
    • Census Tract: Enter the census tract number precisely as shown on Census Bureau documents.
  • Property Information:
    • Construction Method: Select the method of construction (Site Built, Manufactured Home).
    • Occupancy Type: Select the type of occupancy (Principal Residence, Second Residence, Investment Property).
  • Income Data:
    • Income (K): Indicates the gross income, in thousands, used for decision making.
  • Action Taken:
    • Action Taken: Select the action taken for the application (e.g., Loan originated, Application denied, Application withdrawn).
    • Date of Action Taken: Enter the date the action occurred.
  • Purchaser:
    • Purchaser Type: Select the type of purchaser if the financial institution sold the loan within the same calendar year it was originated or purchased (e.g., Fannie Mae, Ginnie Mae, Credit Union).
    • Rate Spread: For home purchase, refinance, or dwelling-secured home improvement loans, report the spread between the annual percentage rate and the applicable Treasury yield if it meets or exceeds specified thresholds (3 percentage points for first-lien, 5 for subordinate-lien).
    • Denial Reason 1, 2, 3, 4: If the application was denied, up to four denial reasons may be indicated.
    • Reason Text: (Field for additional reason text, not detailed in provided document).
  • Lien Status:
    • HOEPA Status: Indicate if the application is subject to HOEPA (Home Ownership and Equity Protection Act of 1994).
    • Lien Status: Enter the lien status of the property (e.g., Secured by first lien, Not secured by lien).

4.3.2. Miscellaneous Information Tab

This tab captures additional financial and property-related details.

  • Fee Info:
    • Total Loan Costs: Enter total loan costs.
    • Total Points and Fees: Enter total points and fees.
    • Origination Charges: Enter origination charges.
    • Discount Points: Enter any discount points.
    • Lender Credits: Enter any lender credits.
    • Interest Rate: Enter the interest rate.
    • Prepayment Penalty Term: Enter any prepayment penalty term.
    • Debt to Income Ratio: Enter the debt to income ratio.
    • Loan to Value Ratio: Enter the loan to value ratio.
    • Loan Term: Enter the loan term.
    • Introductory Rate Period: Enter the introductory rate period.
    • Balloon Payment: Indicate if the loan has a balloon payment.
    • Interest Only Payments: Indicate if the loan has interest-only payments.
    • Negative Amortization: Indicate if the loan has negative amortization.
    • Other Non-amortizing Features: Indicate if the loan has other non-amortizing features.
  • Property Info:
    • Property Value: Enter the property value.
    • Manufactured Home Secured Property Type: Indicate the secured property type (e.g., Manufactured Home Secured Property Type, Manufactured Home Without Land).
    • Manufactured Home Land Property Interest: Indicate the land property interest (e.g., Direct Ownership, Paid Leasehold).
    • Total Units: Enter the total number of units.
    • Multifamily Affordable Units: Enter the number of multifamily affordable units.
    • Submission of Application: Indicate how the application was submitted (e.g., Submitted Directly to Your Institution).
    • Initially Payable to Your Institution: Indicate if the loan was initially payable to your institution.
    • Mortgage Loan Originator NMLSR Identifier: Enter the NMLSR Identifier for the Mortgage Loan Originator.
  • Underwriting:
    • System 1, 2, 3, 4, 5: Up to five underwriting systems can be identified (e.g., Desktop Underwriter (DU), Loan Prospector (LP)).
    • Result 1, 2, 3, 4, 5: Up to five results can be identified for each underwriting system (e.g., Approve/Eligible, Refer/Eligible).

4.3.3. Applicant Information Tab

This tab captures demographic and credit information for the primary applicant.

  • Ethnicity:
    • Ethnicity (Visual Observation): Indicate how ethnicity was determined (e.g., Collected on basis of visual observation or surname).
    • Ethnicity 1, 2, 3, 4, 5: Select the applicant’s ethnicity (e.g., Hispanic or Latino, Not Hispanic or Latino). Includes sub-categories like Mexican, Puerto Rican, Cuban.
    • Ethnicity (Other): If “Other” is selected, enter the specific ethnicity.
  • Race:
    • Race (Visual Observation): Indicate how race was determined.
    • Race 1, 2, 3, 4, 5: Select the applicant’s race (up to five races can be indicated, e.g., American Indian or Alaska Native, Asian, Black or African American, White). Includes sub-categories like Asian Indian, Chinese, Native Hawaiian.
    • American Indian Tribe: If selected, a field will open to enter the specific tribe.
    • Other Asian: If selected, a field will open to enter the specific Asian ethnicity.
    • Other Pacific Islander: If selected, a field will open to enter the specific Pacific Islander ethnicity.
  • Other Information:
    • Gender (Visual): Indicate how gender was determined.
    • Gender: Select the applicant’s gender.
    • Age: Enter the applicant’s age.
    • Credit Score: Enter the applicant’s credit score.
    • Credit Score Model: Indicate the credit score model used (e.g., Equifax Beacon 5.0, Experian Fair Isaac, VantageScore 3.0).
    • Credit Model (Other): If “Other” is selected, a field will open to enter the specific credit model.

4.3.4. Co-Applicant Information Tab

This tab mirrors the “Applicant Information” tab and is used to capture the same demographic and credit information for any co-applicants.

5. HMDA Report Generation

FLEX offers tools to generate the HMDA report, which can be sent to the I:drive for subsequent upload to the FFIEC. It is highly recommended to generate a worksheet first for review and verification.

5.1. Run HMDA Worksheet

  • Access: Found under HMDA in the FLEX Main Menu:
    • Navigate to Loans.
    • Expand Real Estate Loans.
    • Expand HMDA.
    • Select Run HMDA Worksheet.
  • Worksheet Content:
    • The initial pages list application information, action taken, property location, applicant information, and other relevant data.
    • The second to last page contains a transmittal sheet for credit union representative signature, listing information from HMDA Configuration settings.
    • The last page lists all codes used to complete the Loan/Application Register (HMDA-LAR), serving as a reference.
  • Note: The worksheet can be run multiple times for verification purposes.

5.2. Run Final HMDA Report to Send

  • Access: Found under HMDA in the FLEX Main Menu:
    • Navigate to Loans.
    • Expand Real Estate Loans.
    • Expand HMDA.
    • Select Run Final HMDA Report to Send.
  • Process:
    • Selecting this option will create the finalized report and a file that is sent to the I:drive.
    • You will be prompted to verify the reporting year before proceeding.
    • A “HMDA File Creation” report will generate along with the “Loan/Application Register HMDA Report.” The “HMDA File Creation” report will list any error messages and confirm normal completion.
  • Important Note: This report may only be run once a year. If this option is accidentally selected more than once, contact FLEX Loan Support for assistance.

6. Confidentiality Notice

This document is published by Computer Marketing Corporation/FLEX and is intended solely for its contracted clients. It may contain information that is privileged, confidential, or otherwise protected from disclosure. Dissemination, distribution, or copying of this document and any accompanying attached information by someone other than the intended recipient(s), or an employee or agent acting on behalf of the intended recipient, is strictly prohibited.