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 ************************************************************ * * * * * GRAPHICS MATERIAL IN ORIGINAL DOCUMENT OMITTED * * * * * ************************************************************ Page 1 of 1