www.hudclips.org 


U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D. C. 20410-8000

March 22, 1991
OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 91-18
    TO:  ALL APPROVED MORTGAGEES
    SUBJECT:  HOME MORTGAGE DISCLOSURE REPORTING REQUIREMENTS
 
        The purpose of this letter is to (1) inform mortgagees about
    a change in the Home Mortgage Disclosure Act (HMDA) reporting
    requirements, (2) clarify reporting requirements which were
    addressed in Mortgagee Letter 90-25, dated July 18, 1990 and (3)
    transmit attachments including revisions to HMDA magnetic tape
    formats and record layouts, an order form for a free
    microcomputer program which can automate your HMDA data and a
    HMDA-related press release from Federal Financial Institutions
    Examination Council (FFIEC).
 
         1.  CHANGE IN HMDA REPORTING REQUIREMENTS:
 
             A Depository Mortgagee, which is required to report to a
             regulator other than HUD is no longer required to
             transmit an additional report, covering only FHA
             activity, to HUD.  The Federal Reserve, which combines
             information from all regulators, has agreed to transmit
             the FHA activity to the Department.  However, a
             depository institution which is exempt from submitting
             full HMDA reports to a regulator other than HUD because
             it does not meet the asset and locality tests, must
             submit reports to HUD covering only FHA activity if it
             accepts applications for, originates or purchases FHA
             loans.
 
         2.  CLARIFICATION OF HMDA REPORTING REQUIREMENTS:
 
             A.  Depository institutions:
 
                 If your institution, including your parent company,
                 has assets of more than $10 million and is located
                 in a Metropolitan Statistical Area (MSA), HMDA
                 applies and you are required to report all types of
                 loan applications (i.e., conventional, FHA, VA and
                 FmHA) to your regulator.  As stated above, you no
                 longer have to send an additional report to HUD
                 covering FHA activity -- unless you are exempt from
                 full HMDA reporting to your regulator.*
 
_____________________________________________________________________
              *Special exemptions:
 
              For 1990 reporting, the Federal Reserve has granted
              an exemption for certain depository institutions in
              Massachusetts and Connecticut.  Those mortgagees
              must submit their HMDA data to the State, which in
              turn will send it to the Federal Reserve.
 
          B.  Non-depository institutions:
 
              If your company, including your parent company, has
              assets of more than $10 million and is located in a
              Metropolitan Statistical Area (MSA), HMDA applies
              and you are required to report all types of loan
              applications (i.e., conventional, FHA, VA and FmHA)
              to HUD, which is now the regulator of all non-depository
              organizations.
 
              Note:  A non-depository institution is deemed to
              have an office in an MSA if it received applications
              for, originated, or purchased five or more home
              purchase or home improvement loans during the
              preceding calendar year on property located in that
              MSA.
 
              If you do not meet the above requirements, you are
              exempt from reporting all except FHA activity, which
              must still be reported to HUD.
 
          C.  Loan correspondents and sponsors:
 
              Regardless of whose funds are involved, if the loan
              correspondent or broker closes the loan in its name,
              it reports the loan origination -- even if the loan
              is simultaneously transferred to a sponsor at the
              loan closing.  In this case, the correspondent
              reports a loan origination and the sponsor reports a
              loan purchase.  There is a known duplication here,
              but HMDA reports include separate tables and
              statistics on originations and purchases.
 
              In the case of applications that are denied,
              however, the information required by HMDA must be
              reported by the entity that made the underwriting
              decision to deny the loan.
 
          D.  Geographical codes:
 
              The MSA, State and County codes are found in Federal
              Information Processing Standard (FIPS) Publication
              8-5, Metropolitan Statistical Areas (MSA) which is
              available from:
 
_____________________________________________________________________
                  National Technical Information Service
                  Department of Commerce
                  5285 Port Royal Road
                  Springfield, VA 22161
                  703-487-4650
 
              1980 Census Tracts are to be used.  You will be
              notified when 1990 Census Tracts are to be used.
              Census Tract information can be obtained from
              the Bureau of the Census.  This includes the
              1980 Census Tract/Street Index (showing Census
              Tract numbers for different properties using
              street addresses and arranged by county within
              each MSA) and Census Tract Outline Maps (PHC 80-2
              Series).  These items are available from:
 
                  Customer Services
                  Bureau of the Census
                  Washington, D.C. 20233
                  301-763-4100
 
              There also are commercial organizations that prepare
              Census Tract/Street address books similar to those
              described above.  Some also provide automated
              geo-coding services.
 
          E.  Automation information:
 
              Due to the logistics and cost of handling such an
              enormous volume of paper reports, the Department
              will no longer accept hard-copy reports except from
              small volume mortgagees who report 70 or fewer cases
              (two loan register pages) or from mortgagees who do
              not have access to microcomputers.  A free
              microcomputer HMDA software package is available to
              you to process your data (see paragraph 3C).
              Automated data can be transmitted via microcomputer
              diskettes, magnetic tapes or cartridges.
 
              Microcomputer diskette standards:
              The Department is working to develop a standard set
              of procedures for receiving and converting diskettes
              to tape/cartridge or handling microcomputer output
              by electronic media.  These standards will be
              published as soon as they are completed.  In the
              meantime, the Department will attempt to accommodate
              all IBM compatible microcomputer output.  if
              diskettes are mailed, please include any necessary
              information to translate the data.
 
_____________________________________________________________________
      3.  ATTACHMENTS:
 
          A.  Revision to magnetic tape attributes:
 
              Attached is a revision to Appendix A, specifying the
              HMDA Tape attributes.  Both variable length and
              fixed length record formats are now permitted.
 
          B.  Error flag and revisions to record layouts:
 
              With respect to the error conditions originally
              issued in Mortgagee Letter 90-25, error check number
              245 -- relating "occupancy" to the "MSA" --was found
              to be illogical and has been deleted by the Federal
              Reserve Board.  Also, record layouts have been
              enhanced to indicate the location of the error flags
              for those mortgagees using automated media.
              Attached are revisions to page A-4 of the
              Transmittal Record layout and pages A-7 through
              A-7(b) of the Loan Application Register layout.
 
          C.  Free microcomputer program:
 
              Attached is an order form for a free microcomputer
              program to handle the input of HMDA data and the
              transmittal of diskettes in lieu of paper reports.
              This software was developed by the Office of the
              Comptroller of the Currency (OCC), is in the public
              domain and is free to any mortgagee that wishes to
              use it.  To order this program, complete and remit
              the attached order form.  Neither the Department nor
              the OCC recommends this program over any other
              commercially available product that meets the
              requirements of Regulation C.  Also, the Department
              will not directly support this software, but if
              problems arise we will make them known to OCC.
 
          D.  FFIEC press release relating to format for the HMDA
              disclosure statements and aggregate HMDA reports:
 
              Attached is a July 2, 1990 press release by FFIEC
              regarding format of reports, making raw data
              available to public, etc.
 
_____________________________________________________________________
 
     Any questions concerning this letter or any other questions
concerning HMDA may be directed to Dr. William F. Shaw, Director,
Information Systems Division, 202-708-2190.
 
                          Sincerely yours,
 
                          Arthur J. Hill
                          Acting Assistant Secretary for
                            Housing-Federal Housing Commissioner
 
Attachments
 
_____________________________________________________________________
 
                         Appendix A (Revised 12/90)
 
Automation instructions for Home Mortgage Disclosure Act (HMDA)
reporting to U.S. Department of Housing and Urban Development
 
                         HMDA Tape Attributes
 
The tape file consists of two record types:
 
     The first record type is the transmittal sheet with 304
     bytes and is identified as record type "1".
 
     The other record type contains detail line item data
     from the Loan Application Register and consists of 152
     bytes and is identified as record type "2"
 
*    EBCDIC variable blocked -- IBM recording mode "V"
     unlabeled
 
     9 track 1600 or 6250 BPI 1/2 inch tape or 3480
     compatible low density cartridge
 
     Block contains up to 100 records (30,804 characters)
     (smaller blocks are acceptable)
 
*    Institutions with less than 10,000 records may elect to
     provide an unblocked unlabeled tape/cartridge.
 
                                   or
 
*    A fixed record length tape/cartridge may also be
     submitted.  If a fixed length format is used then the
     type 2 record(s) should include an extra 152 bytes of
     filler space (bytes 153 to 304).  This tape/cartridge
     should be in an EBCDIC format.
 
     Also, to speed internal logging and processing, please
     indicate in the tape submission package, whether the
     tape/cartridge is in a fixed or variable length format.
 
     The detail layout for these two records types follow:
 
Note:  Reported income must be annual income
_____________________________________________________________________
Record Layout for Loan/Application Register Transmittal Sheet
__________________________________________________________________________
Record Identification
(if file contains multiple record type)
 
      "1" = Transmittal Sheet
__________________________________________________________________________
 
                         Bytes
                    _________________________           Comments, values,
Element  Label      Starting  Ending   Length   Type*   Keys etc.
__________________________________________________________________________
 
19. Edit Status
    Code              284      284        1       AN    = blank
__________________________________________________________________________
 
20. Edit Error                                          = blank ==> edit
    Flags             285      304       20       AN      OK
                                                        = X     ==> edit
                                                          failed
__________________________________________________________________________
 
         S010         285      285        1       AN    Each flag refers
                                                        to an edit test.
         S015         286      286        1       AN    Snnn = syntactical
         S020         287      287        1       AN    Vnnn = validity
__________________________________________________________________________
 
         S025         288      288        1       AN
         S028         289      289        1       AN
         S030         290      290        1       AN
__________________________________________________________________________
 
         S035         291      291        1       AN
         S040         292      292        1       AN
         S045         293      293        1       AN
__________________________________________________________________________
 
         S100         294      294        1       AN
         V105         295      295        1       AN
         V110         296      296        1       AN
__________________________________________________________________________
 
         V115         297      297        1       AN
         V120         298      298        1       AN
        FILLER        299      304        6       AN
__________________________________________________________________________
 
__________________________________________________________________________
* AN - AlphaNumeric
   N - Numeric
__________________________________________________________________________
 
                                    A-4    (Rev 12/90)
_____________________________________________________________________
Record Layout for Loan/Application Register Data
__________________________________________________________________________
Record Identification
(if file contains multiple record type)
     "2" = Data.
__________________________________________________________________________
 
                         Bytes
                    ________________________            Comments, values,
Element Label       Starting  Ending  Length    Type*   keys, etc.
__________________________________________________________________________
19. Co-Applicant
    Race                91      91      1         N      1 through 8
__________________________________________________________________________
20. Applicant Sex       92      92      1         N      1 through 4
__________________________________________________________________________
21. Co-Applicant
    Sex                 93      93      1         N      1 through 4
__________________________________________________________________________
                                                         Annual income
                                                         In Thousands
22. Applicants          94      97      4        AN      (rounded) (do
    Annual Income                                        not enter commas)
                                                         or NA left
                                                         justified
_________________________________________________________________________
23. Type of             98      98      1        AN      0 through 9
    Purchaser                                            or Blank
    (If Sold)
__________________________________________________________________________
24. Denial Reason       99      99      1        AN      Blank or 1
    1 (Optional                                          through 9
    Item)
__________________________________________________________________________
25. Denial Reason      100     100      1        AN      Blank or 1
    2 (Optional                                          through 9
    Item)
__________________________________________________________________________
26. Denial Reason      101     101      1        AN      Blank or 1
    3 (Optional                                          through 9
    Item)
__________________________________________________________________________
27. Edit Status        102     102      1        AN      Blank
    Code
__________________________________________________________________________
28. Edit Error         103     152     50        AN      = Blank ==> Edit
    Flags                                                  ok
                                                         = X ==> Edit
                                                           failed
                                                         = Q ==> Accept
                                                           quality edit
__________________________________________________________________________
* AN - AlphaNumeric
   N - Numeric
__________________________________________________________________________
 
                                A-7  (Rev 12/90)
_____________________________________________________________________
 
Record Layout for Loan/Application Register Data
__________________________________________________________________________
 
Record Identification
(if file contains multiple record type)
     "2" = Data.
__________________________________________________________________________
 
                          Bytes
                    ________________________            Comments, values,
Element Label       Starting  Ending  Length    Type*   keys, etc.
__________________________________________________________________________
                                                        = Blank ==>edit ok
28. Edit Error                (continued)               = X ==>Edit failed
    Flags                                               = Q ==>Accept
                                                          quality edit
__________________________________________________________________________
        Q540          103       103      1       AN     Each flag refers
        Q595          104       104      1       AN     to an edit test.
        S010          105       105      1       AN     Snnn = syntactical
                                                               edit
__________________________________________________________________________
        S015          106       106      1       AN     Vnnn = validity
        S020          107       107      1       AN            edit
        S025          108       108      1       AN     Qnnn = quality
                                                               edit
__________________________________________________________________________
        S028          109       109      1       AN
        S030          110       110      1       AN
        S035          111       111      1       AN
__________________________________________________________________________
        S040          112       112      1       AN
        S045          113       113      1       AN
        V200          114       114      1       AN
__________________________________________________________________________
        S205          115       115      1       AN
        V210          116       116      1       AN
        V215          117       117      1       AN
__________________________________________________________________________
        V220          118       118      1       AN
        V225          119       119      1       AN
        V230          119       119      1       AN
__________________________________________________________________________
        V240          121       121      1       AN
        V245          122       122      1       AN
        V250          123       123      1       AN
__________________________________________________________________________
        V255          124       124      1       AN
        V260          125       125      1       AN
        V265          126       126      1       AN
__________________________________________________________________________
 
*AN-AlphaNumeric
*N-Numeric
__________________________________________________________________________
 
                                 A-7(a)  "new"  (12/90)
_____________________________________________________________________
 
Record Layout for Loan/Application Register Transmittal Sheet
__________________________________________________________________________
 
Record Identification
(if file contains multiple record type)
 
     "2" = Data
__________________________________________________________________________
 
                          Bytes
                    ________________________            Comments, values,
Element Label       Starting  Ending  Length    Type*   keys, etc.
__________________________________________________________________________
 
      S270             127      127     1         AN
      S275             128      128     1         AN
      V280             129      129     1         AN
__________________________________________________________________________
 
      V290             130      130     1         AN
      V300             131      131     1         AN
      V305             132      132     1         AN
__________________________________________________________________________
 
      V310             133      133     1         AN
      V315             134      134     1         AN
      V320             135      135     1         AN
__________________________________________________________________________
 
      V325             136      136     1         AN
      V330             137      137     1         AN
      V335             138      138     1         AN
__________________________________________________________________________
 
      V340             139      139     1         AN
      V345             140      140     1         AN
      V350             141      141     1         AN
__________________________________________________________________________
 
      V355             142      142     1         AN
      V360             143      143     1         AN
      V365             144      144     1         AN
__________________________________________________________________________
 
     FILLER            145      152     8         AN
__________________________________________________________________________
If fixed length format is used, add field 29 below.
__________________________________________________________________________
29. Filler             153      304    152        AN     Use only if fixed
                                                         length format is
                                                         submitted.
__________________________________________________________________________
*AN-AlphaNumeric
*N-Numeric
__________________________________________________________________________
 
                                 A-7(b) "new"  (Rev 12/90)
 
_____________________________________________________________________
 
                               ORDER  FORM
 
                         HMDA MICROCOMPUTER PROGRAM
 
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