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Glossary

“Action Taken” Date
Various rules define the “Action Taken” Date, depending upon the type of action taken by the lender on the application.

  • Loan originations: Depending upon the disposition of a loan/application, the “action taken” date can be
    represented by the settlement or closing date.
  • Purchased loans: Report the date of purchase.
  • Notice of Action Taken: Report the date on which the action was taken by your institution or the date on which the notice was sent to the applicant. These could be notices for applications and preapprovals that have been denied, applications and preapprovals that have been approved but have not been accepted by the applicant, and for incomplete files.
  • Applicant Withdrawals: Report the date on which you received the applicant’s express withdrawal or the date shown on the written notification from the applicant.
  • Preapproval Requests: Report the date of loan origination for preapprovals that lead to a loan origination; do not report preapprovals that are withdrawn or incomplete.

“Action Taken” Type
The disposition of the loan/application using one of eight numerical codes listed in Appendix A of the regulation.

In addition to six existing “action taken” codes, two separate codes have been added by the Regulation C amendment for requests for preapprovals. “Action taken” for preapproval requests that are denied is Code 7. Preapprovals that are approved but not accepted by the applicant (optional reporting) may be reported as Code 8 or not at all.

In addition, clarification was made to the reporting of counteroffers. An institution must report a denial on the original terms requested by the applicant when it makes a counteroffer and the applicant does not accept the offer or fails to respond to the offer.

Activity Year
The year for which the HMDA data are being collected.

Agency Code
The code to identify the supervisory agency of the HMDA reporting institution. The codes for each agency are:

1 – Office of the Comptroller of the Currency (OCC)
2 – Federal Reserve System (FRS)
3 – Federal Deposit Insurance Corp. (FDIC)
4 – Office of Thrift Supervision (OTS)
5 – National Credit Union Administration (NCUA)
7 – Department of Housing and Urban Development (HUD)

Application
An oral or written request for a home purchase loan, a home improvement loan or a refinancing that is made in accordance with procedures used by a financial institution for the type of credit requested. Application also refers to a request for preapproval for a home purchase loan if the request is reviewed under a program in which the financial institution, after a comprehensive analysis of the creditworthiness of the applicant, issues a written commitment to the applicant that is valid for a designated period of time to extend a home purchase loan up to a specified amount.

“Application Received” Date
The date the application was received or the date shown on the application form. For purchased loans, “NA” (not applicable) is reported.

Census Tract
The Census Bureau defines a census tract as a small, relatively permanent statistical subdivision of a county. The Census Bureau has assigned census tract numbers to all areas of the United States and Puerto Rico. Previously, some areas were called block numbering areas (BNAs). Appendix A to the regulation reflects the fact that census tracts now cover all areas.

Core Based Statistical Area (CBSA)
A statistical geographic entity consisting of the county or counties associated with at least one core (urbanized area or cluster) of at least 10,000 population, plus adjacent counties having a high degree of social and economic integration with the core as measured through commuting ties with the counties in the core.

County Code
A three digit FIPS (Federal Information Processing Standards) code that identifies the county where the property is located.

Dwelling
A residential structure (whether or not attached to real property), including condominium and cooperative units and mobile or manufactured homes located in a state of the United States of America, the District of Columbia or the Commonwealth of Puerto Rico. The term includes one- to four-family and multifamily structures. The definition of “dwelling” is not limited to the principal or other residence of the applicant or borrower and, thus, includes vacation or second homes and rental properties. Recreational vehicles such as boats or campers are not dwellings for purposes of HMDA. Transitory residences such as hotels, hospitals and college dormitories are also excluded from the definition of dwelling.

Ethnicity
The ethnic background of the applicant and co-applicant must be reported using the numerical codes in Appendix A of the regulation. The codes are consistent with the standards set by the Office of Management and Budget (OMB). The standards provide for data on whether individuals are Hispanic or Latino or do not fall within this category. Prior to the revised rules, ethnicity was not a separate field and was reported under the race field.

Financial Institution
For a bank, savings association or credit union, this refers to an institution that:

  • on the preceding Dec. 31 had assets in excess of the asset threshold established and published annually by the Federal Reserve Board;
  • on the preceding Dec. 31 had a home or branch office in a Metropolitan Area (MA);
  • in the preceding calendar year, originated at least one home purchase loan or refinancing of a home purchase loan secured by a first lien on a one- to four-family dwelling and meets one or more of the following three criteria:
    1. the institution is federally insured or regulated;
    2. the loan was insured, guaranteed or supplemented by a federal agency; or
    3. the loan was intended for sale to Fannie Mae or Freddie Mac.

For a for-profit mortgage lending institution or nondepository lender, “financial institution” refers to an institution that in the preceding calendar year either:

  • originated home purchase loans, including refinancings of home purchase loans, that equaled at least 10 percent of its loan-origination volume, measured in dollars; or
  • originated home purchase loans, including refinancings of home purchase loans, that equaled at least $25 million; and
    1. on the preceding Dec. 31 had a home or branch office in a Metropolitan Area (MA) or received applications for, originated or purchased five or more home purchases or home improvement loans on property in an MA in the preceding calendar year; and
    2. either
      • on the preceding Dec. 31 had total assets of more than $10 million, counting the assets of any parent corporation; or
      • in the preceding calendar year, originated at least 100 home purchase loans, including refinancings of home purchase loans.

Geocode
Geocode refers to the combination of metropolitan area/state/county/census tract reported for a HMDA loan.

Gross Annual Income
The income reported on the loan/application register is the total gross annual income an institution relied upon in making the credit decision. If an institution does not consider the applicant’s income, if the loan/application is for a multifamily dwelling or if an institution chooses to not collect this information for a purchased loan, “NA” should be reported. In order to protect the privacy of an institution’s employees, “NA” may be reported for employee loans. In addition, “NA” is reported for loans where the applicant or co-applicant is not a natural person.

Home-Equity Line of Credit
Home-equity line of credit, often referred to as HELOC, means an open-ended credit plan secured by a dwelling as defined in Regulation Z (Truth in Lending), 12 CFR 226.

Home Ownership Equity Protection Act (HOEPA) Status
HOEPA status refers to originated or purchased loans where the APR or the points and fees on the loan exceeds the applicable triggers in Section 32 of Regulation Z. These loans are also referred to as high-cost mortgages.

Home Improvement Loan
The definition of home improvement loan for HMDA reporting purposes has been modified to include secured and certain unsecured loans.

  • Secured Loans: A home improvement loan is a loan that is secured by a dwelling where the proceeds will be used for repairing, rehabilitating, remodeling or improving a dwelling or the real property on which it is located.
  • Unsecured Loans: Unsecured home improvement-purchase loans must be reported as HMDA transactions if the financial institution classifies the loans on its books as a home improvement loan. HMDA reportable home improvement loans may not always be readily identifiable. First, a loan originated outside the residential lending division (for example, a loan made through the commercial loan division to rehab an apartment building) can be a HMDA reportable loan. Second, mixed-use property loans, such as residential and commercial use properties, may be HMDA reportable if the loan proceeds are used primarily to improve the residential portion of the property. (Lenders may use any reasonable standard to determine the primary use of the property.) Finally, a home improvement loan that is also a refinancing is reported as a home improvement loan.

Home Purchase Loan
A home purchase loan is any loan secured by and made for the purpose of purchasing a dwelling. The regulation clarifies that if a lender makes a first- mortgage loan to purchase a home and makes a second- mortgage loan to finance part or all of the borrower’s down payment, then the lender should report each loan separately as a home purchase loan.

Lien Status
Lien status refers to a lender’s security position in a transaction involving real property. For example, a first-lien position indicates that the bank has the first claim to the property in the event of default. Lenders must report the lien status for loans they originate and applications that do not result in originations.

Loan Amount
This figure represents the principal amount of the loan or application. For home purchase loans, report the principal amount of the loan. For purchased loans, report the unpaid principal balance of the loan at the time of purchase. For home improvement loans and refinancings, report the entire amount of the loan.

Loan Application Number
A unique identifier (up to 25 characters long) that can be used to retrieve the particular loan/application to which the entry relates. It is recommended that institutions do not use applicants' names or Social Security numbers to ensure the privacy of the applicant or borrower.

Loan/Application Register (LAR)
The loan/application register is the format that has been prescribed for reporting HMDA data. The FFIEC uses information provided on the loan/application registers to produce HMDA disclosure statements for each reporting institution, as well as aggregate tables for all covered lenders in each metropolitan statistical area/metropolitan division (MSA/MD).

Loan Pricing
Loan pricing refers to the interest rate and fees charged to borrowers on loan transactions.

Loan Purpose
The loan purpose is whether the purpose of the loan or application was for home purchase, home improvement or refinancing.

Loan Type
Loan type indicates whether the loan that was granted, applied for or purchased was conventional, government-guaranteed or government-insured.

Manufactured Home
Manufactured Home Construction and Safety Standards say that a manufactured home is a structure, transportable in one or more sections, which in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning and electrical systems contained therein. Calculations used to determine the number of square feet in a structure will be based on the structure's exterior dimensions measured at the largest horizontal projections when erected on site. These dimensions will include all expandable rooms, cabinets and other projections containing interior space, but do not include bay windows. This term includes all structures which meet the above requirements except the size requirements and with respect to which the manufacturer voluntarily files a certification pursuant to Sec. 3282.13 and complies with the standards set forth in part 3280. Nothing in this subsection should be interpreted to mean that a manufactured home necessarily meets the requirements of HUD's Minimum Property Standards (HUD Handbook 4900.1) or that it is automatically eligible for financing under 12 U.S.C. 1709(b).

Metropolitan Statistical Area/Metropolitan Division (MSA/MD)
The Office of Management and Budget (OMB) adopted final standards for Metropolitan and Micropolitan Statistical Areas in 2000, and on June 6, 2003 issued a list of these areas, showing new Metropolitan Statistical Areas and revisions to existing areas. In some cases, Metropolitan Statistical Areas will now be divided into Metropolitan Divisions. There are 49 new Metropolitan Statistical Areas, for a total of 370. There are also extensive revisions to existing Metropolitan Statistical Areas. Beginning with the reporting of calendar year 2004 HMDA data, the revised and new Metropolitan Statistical Areas or Metropolitan Divisions (where appropriate) will be used in helping to identify the geographic information about the property location. The Metropolitan Area (MA) reference used in 2003 HMDA data is changed to Metropolitan Statistical Area/Metropolitan Division (MSA/MD).

The new list also contains 565 Micropolitan Statistical Areas. However, Micropolitan Statistical Areas will NOT be used for HMDA reporting purposes. In addition, the new list contains 116 Combined Statistical Areas, which consist of combinations of two or more Metropolitan and/or Micropolitan Statistical Areas. Combined Statistical Areas will also NOT be used in HMDA reporting.

The Metropolitan Statistical Areas have at least one urbanized area of 50,000 or more population. There are 11 instances (Boston, Chicago, Dallas, Detroit, Los Angeles, Miami, New York, Philadelphia, San Francisco, Seattle, and Washington) where a Metropolitan Statistical Area containing a single core with a population of 2.5 million or more has been subdivided to form smaller groupings of counties referred to as Metropolitan Divisions. In those cases, the appropriate Metropolitan Division 5-digit code will be used in the MSA/MD column of the Loan/Application Register (LAR) form instead of the Metropolitan Statistical Area code assigned to the larger populated area.

For coverage purposes, if an institution has offices in Micropolitan Statistical Areas only, it is not subject to HMDA reporting. If the institution, however, has a home or branch office in a Metropolitan Statistical Area or Metropolitan Division and meets all other reporting criteria, it is covered under HMDA. The institution is to report all mortgage lending activity. For those properties located in Micropolitan Statistical Areas, or not located in a Metropolitan or Micropolitan Statistical Area at all, report NA in the MSA/MD column of the LAR form. In the remaining three fields (state, county, census tract) report the 2-digit state and 3-digit county codes as specified by the U.S. Department of Commerce in its Federal Information Processing Standards (FIPS) publication, and because the 2000 Census tracted all areas, report the census tract number. However, if the institution is not subject to CRA reporting requirements, the institution has the option to enter NA in all four fields.

Natural Person
A natural person is an individual human being. A natural person is not a corporation, partnership, trust, government subdivision or agency, estate, cooperative or association.

Occupancy
Occupancy indicates whether the property to which the loan application relates will be the borrower's principal dwelling. For loans and applications involving multifamily dwellings (housing five or more families), any dwellings located outside MAs, or dwellings in MAs where an institution does not have a home or branch offices, an institution may either enter the code for “not applicable” or the code for the actual occupancy status.

Quality Edits
These edits verify the reasonableness of data. The letter ”Q” precedes the error numbers. A loan field marked by a quality edit must be confirmed for its correctness before the HMDA data can be exported to your regulator.

Preapproval Requests
A preapproval request is a request that is reviewed under a program in which the financial institution, after a comprehensive analysis of the creditworthiness of the applicant, issues a written commitment to the applicant that is valid for a designated period of time to extend a home purchase loan up to a specified amount. The written agreement may not be subject to conditions other than:

  • conditions that require the identification of a suitable property;
  • conditions that require that no material change has occurred in the applicant’s financial condition or creditworthiness prior to closing; and
  • limited conditions that are not related to the financial condition or creditworthiness of the applicant that the lender ordinarily attaches to a traditional home mortgage application, such as certification of a clear termite inspection.

Property Type
“Property type” is a new field for the purpose of designating the type of dwelling involved in the transaction as one- to four-family, manufactured housing or a multifamily dwelling.

Race
Report the race of the applicant(s) according to the numerical codes listed in Appendix A. There are five racial designations: American Indian or Alaska Native; Asian; Black or African American; Native Hawaiian or Other Pacific Islander; and White. Applicants must be offered the option of selecting one or more designations, but the option of designating “other” has been eliminated as of 2004. A separate code has been established if there is no co-applicant. Institutions may use the “not applicable” code only when the applicant or co-applicant is not a natural person or when the information is unavailable because the loan has been purchased. For multiple co-applicants, information on the first co-applicant should be reported.

Rate Spread
Rate spread is the difference between the annual percentage rate (APR) on a loan at consummation and the yield of a Treasury security of comparable maturity. Lenders must report the rate spread for loans originated where the spread is equal to or greater than 3 percentage points for first-lien loans or 5 percentage points for subordinate-lien loans. To determine the applicable rate spread, the financial institution can utilize the Rate Spread Calculator located on the FFIEC HMDA web site or the FFIEC HMDA Data Entry Software. To determine the applicable Treasury security yield, the financial institution must use the table published on the FFIEC's web site titled “Treasury Securities of Comparable Maturity under Regulation C.” Use of any other table will result in an invalid rate spread that will NOT be accepted by your regulator.

Reasons for Denial
These optional fields identify why an application was not approved. There are nine codes, and up to three reasons may be reported.

Refinancing
Refinancing is a new obligation that satisfies and replaces an existing obligation by the same borrower, where (1) for coverage purposes, the existing obligation is a home purchase loan (as determined by the lender, for example, by reference to available documents; or as stated by the applicant), and both the existing obligation and the new obligation are secured by first liens on dwellings; and (2) for reporting purposes, both the existing obligation and the new obligation are secured by liens on dwellings.

Respondent ID
The respondent ID is a 10-digit number used to identify a HMDA reporting institution. The number is assigned by each regulatory agency and is unique to each institution. The criteria for assigning IDs by each agency are as follows:

  • FDIC – Certificate Number
  • FRS – NIC Number
  • HUD – Tax Identification Number or FHA Lending Number
  • NCUA – Charter Number
  • OCC – Charter Number
  • OTS – Docket Number

Respondent Name
The name of the HMDA reporting institution is the respondent name.

Sex
The gender of the applicant(s) is reported on the HMDA-LAR. The gender of the applicant(s) must be reported using the numerical codes for originated loans and for loan applications that do not result in an origination. Institutions should be careful in using the code for “not applicable,” which should be used for reporting loans/applications from businesses. A separate code has been established if there is no co-applicant. If the applicant or co-applicant is not a natural person or information is not available because the loan was purchased, institutions should use the “not applicable” code. For multiple co-applicants, information on the first co-applicant should be reported.

State Code
The state code is a two-digit FIPS (Federal Information Processing Standards) code that identifies the state where the property is located.

Subprime Loans
Subprime loans are extensions of credit to borrowers who exhibit characteristics indicating a significantly higher risk of default than other loan customers of a bank.

Syntactical Edits
Syntactical edits verify the integrity of the data. Loan applications containing syntactical edits will not be loaded to the FFIEC database. If they should be included on the database, the data must be corrected. Some examples are incorrect activity year used in the submission; or initial LAR data (T2 record) already on file, which indicates that a record with a duplicate loan application number was submitted. The letter 'S' proceeds the error number.

Transmittal Sheet (TS)
The transmittal sheet is submitted with a reporter's data. The transmittal sheet includes the following information: reporter's HMDA ID, regulatory agency, reporter's tax ID, number of loans submitted, HMDA activity year, name of reporting institution, address, address of any parent company, contact name, telephone number and fax number.

Type of Purchaser
This field identifies the type of purchaser of all loans sold within a calendar year. If the loan was not originated or purchased and then sold within the same calendar year, then the “type of purchaser” code will indicate that the loan was not originated or was not sold.

Validity Edits
These edits verify the accuracy of the data. Validity edits indicate that a part of the data is in error and must be revised. The letter ”V” precedes the error numbers. Validity edits must be corrected before the HMDA data can be exported to your regulator.

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