**[Frequently Asked Questions: Home Mortgage Disclosure Act
(HMDA)]{.underline}**

The following list of questions and answers about compliance with HMDA
addresses:

-   Broker transactions

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-   Credit union service organizations

-   Data entry and submission

-   Disclosure Statements

-   Reference Material and Software

**[Broker Transactions]{.underline}**

**When is a credit union or CUSOs acting as a broker?**

For the purposes of this regulatory alert, a credit union or CUSO that
takes and processes a loan application and arranges for another
institution to purchase the loan at or after closing is acting as a
"broker." A credit union or CUSO that purchases a loan from a broker at
or after closing is acting as an "investor." Depending on the facts, a
broker may or may not make a credit decision on an application (and thus
it may or may not have HMDA reporting responsibilities).

**Who reports HMDA data for brokered loans?**

The party making the credit decision must report HMDA data.

If the broker makes the credit decision based on an investor's loan
policies, it reports that decision. If the investor makes the credit
decision, it reports. For example, if the broker reviews an application,
decides the application will meet the investor's approval criteria, and
does not obtain the investor's review, the broker has approved the loan,
and the broker must report the loan on its HMDA loan application record
(LAR) as an approval, even if it forwards the application to the
investor for final processing. The investor reports the loan on its HMDA
LAR as a purchase.

If the broker decides an application will not meet the investor's
approval criteria, it has denied the loan and the broker must report the
loan on its HMDA LAR as a denial. In this situation, the investor has no
HMDA LAR reporting requirement. The investor didn't make a credit
decision or purchase a loan.

For additional clarification, consider the following scenarios:

A. A broker makes credit decisions based on an investor's loan policies
but without the investor's review prior to closing, and then forwards
approved loans to the investor.

-   Broker approved loans.

    -   Broker -- reports approval on HMDA LAR.

    -   Investor -- reports purchase on HMDA LAR.

-   Broker denied loans.

    -   Broker -- reports denial on HMDA LAR.

    -   Investor -- no HMDA LAR reporting requirement.

B. A broker forwards all loan applications to the investor for credit
decisions.

-   Investor approved loans.

    -   Broker -- no HMDA LAR reporting requirement.

    -   Investor -- reports approval on HMDA LAR.

-   Investor denied loans.

    -   Broker -- no HMDA LAR reporting requirement.

    -   Investor -- reports denial on HMDA LAR.

To avoid responsibility for HMDA reporting, the broker must forward all
applications to the investor for credit decisions. If the broker makes a
decision to deny a loan because it does not meet an investor's criteria
or it makes a decision to forward an application because it meets an
investor's criteria, it has made a credit decision and must report that
application in its HMDA LAR.

In summary, a broker who makes a credit decision on an application
reports that decision, regardless of whose loan policies it bases the
credit decision on and whose name the loan closes in, as shown in
scenario A, above. An investor who makes a credit decision on an
application received from a broker reports the decision, the broker does
not, as shown in scenario B. above. An investor who purchases a loan
from a broker, however, reports it as a purchased loan, regardless of
who made the credit decision, as shown in scenario A.

See Appendix D (Official Staff Commentary on Regulation C) in the
**Guide to HMDA Reporting, Getting It Right!**, for additional
information on reporting brokered loans.

**[Credit Union Service Organizations]{.underline}**

**Do Credit Union Service Organizations (CUSOs) need to comply with HMDA
and how should they report data?**

CUSOs must comply with HMDA data collection and reporting requirements.
For purposes of HMDA compliance, a CUSO may be categorized as either a
subsidiary or affiliates. Reporting guidance for each category of CUSO
follows:

-   A CUSO is a credit union subsidiary if it is more than 50% owned by
    a single credit union. Subsidiary CUSOs use the CUSO\'s federal tax
    identification number as the Respondent ID number for identification
    purposes when reporting HMDA data. Subsidiary CUSOs should select
    NCUA as the applicable regulator (agency code equals 5). Subsidiary
    CUSOs do not need to consolidate HMDA data with the \"owning\"
    credit union's HMDA data.

-   CUSOs that do not qualify as subsidiaries are considered to be
    affiliates. An affiliate CUSO should report HMDA data using the CUSO
    federal tax ID number as the Respondent ID number. Affiliate CUSOs
    should select HUD as the applicable regulator (agency code equals
    7).

**[Data Entry and Submission]{.underline}**

**How do I complete a loan application register?**

Review the *Guide to HMDA Reporting, Getting It Right!* (Guide). A copy
of the Guide can be obtained from the FFEIC web-site, as discussed under
Reference Materials and Software. The Guide contains detailed directions
for the completion of loan application registers.

After review of the Guide, you can contact your NCUA regional office or
state supervisory authority if you are unable to resolve a specific
question.

**How often does my credit union need to update its loan application
register (LAR) and report HMDA data?**

HMDA requires quarterly updates of the LAR. Once final action is taken
on a transaction, it must be appropriately recorded on a LAR within 30
days after the end of a calendar quarter. Credit unions should be able
to produce a current LAR at the request of federal or state examiners.

Following the end of a calendar year, a credit union submits its LAR to
the Federal Reserve Board processing center by March 1^st^. Credit
unions must submit a LAR that contains all records for the calendar
year.

**How does a credit union submit its HMDA data?**

Following the end of a calendar year, a credit union submits its LAR to
the Federal Reserve Board processing center no later than March 1st
using the following email address: <hmdasub@frb.gov>.

Internet e-mail is the preferred method for transmitting LAR
information. Your file must be properly encrypted using the FFIEC data
entry software encryption utility before transmission. Non-email
transmissions may be delayed due to FRB security protocols. Acceptable
transmission methods are listed at:
<http://www.ffiec.gov/hmda/contactNCUA.htm>

Early submission by mid-February is strongly recommended. If a data file
does not load successfully, it will not be marked as received by the
FRB.

**When is HMDA data considered to be received by the FRB?**

Data are considered to be successfully received by the FRB once the file
has been opened and loaded onto the FRB mainframe. When data are
successfully loaded, the FRB will confirm receipt of the file by faxing
or emailing a list of potential data errors. Credit unions should retain
a dated copy of this receipt. If a credit union does not receive a
filing receipt from the FRB, it is the credit union\'s responsibility to
follow up with the FRB.

To ensure data can be successfully read by the FRB, a credit union
should use the edit check feature contained in the HMDA data entry
software prior to submitting transmission data.

**What is NCUA policy concerning late HMDA data?**

Credit unions must provide a readable file to the FRB, which processes
HMDA data on behalf of NCUA, by the March 1st deadline. Late submission
of HMDA data is not acceptable. Following data collection, the FRB will
provide NCUA with a list of credit unions that did not meet the March
1st filing deadline. NCUA may assess civil money penalties against late
filers.

When assessing civil money penalties against late filers, NCUA will
consider exceptional circumstances. A credit union\'s first time to
collect and file HMDA data is not an exceptional circumstance.

**Who do I contact with other questions about submitting HMDA data?**

Questions concerning HMDA software, data receipt confirmations, data
edits, and other issues related to the submission of HMDA data can be
sent to the FRB via email at <hmdahelp@frb.gov>.

**[Disclosure Statements]{.underline}**

**How can a credit union obtain its disclosure statement?**

In August or September after the collection and analysis of HMDA data,
disclosure statements become available for download from the FFIEC web
site. Disclosure statements are no longer mailed in CD-Rom or paper
format to credit unions.

It is the responsibility of reporting credit unions to check the FFIEC
web site, download their disclosure statements, and display the
statements within three business days of availability. Publication of
the FFIEC press release that announces the availability of disclosure
statements is equivalent to receipt of disclosure statements for
purposes of compliance with HMDA.

Disclosure statements are available on the FFIEC web site at:
<http://www.ffiec.gov/hmdaadwebreport/diswelcome.aspx>.

**Reference Materials and Software**

**Is there a new version of the *Guide to HMDA Reporting, Getting It
Right!*?**

The *Guide to HMDA Reporting, Getting It Right!* (Guide) summarizes
management\'s responsibilities for the collection and report of HMDA
information. The most recent hard copy of the Guide was published in
December 2003. The electronic version of the Guide has since been
updated with changes in metropolitan statistical codes and other edits.

Updated versions of the Guide will no longer be printed and distributed
in a paper format. You may obtain an electronic copy of the Guide from
the FFIEC web site at: <http://www.ffiec.gov/hmda/guide.htm>.

**Where is the Question and Answer section that used to be contained in
the *Guide to HMDA Reporting, Getting It Right! (Guide)*?**

The Guide no longer contains a \"Question and Answer\" section. This
supplementary information is now posted on the FFIEC web site at:
<http://www.ffiec.gov/hmda/faq.htm>. The FFIEC updates these questions
and answers several times each year. Credit unions are responsible for
being aware of changes in HMDA guidance and the release of updated
materials.

**Is the data entry software available for calendar year 2006?**

The FFIEC HMDA Data Entry Software, version 3.20, may be downloaded and
is available on the FFIEC web site at:
[http://www.ffiec.gov/crahmdacf/default2.cfm.](http://www.ffiec.gov/crahmdacf/default2.cfm. Version 3.20)
This software may be used for the submission of 2004, 2005, and/or 2006
calendar year HMDA data.

Please note the FFIEC HMDA Data Entry Software is not network
compatible, and the FFIEC does not support installation to a network.
The software should be installed locally on a hard disk. The software is
only available through download; disks will not be sent to HMDA
reporters.