Resources
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that are withdrawn or incomplete.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.
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:
- the institution is federally insured or regulated;
- the loan was insured, guaranteed or supplemented
by a federal agency; or
- 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
- 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
- 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 Average Prime Offer Rate.. Lenders
must report the rate spread for loans originated where
the spread is equal to or greater than 1.5 percentage
points for first-lien loans or 3.5 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 Average Prime Offer Rate, the financial
institution must use either the Average Prime Offer- Fixed or Average Prime Offer Rate- Adjustable tables. 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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