Common HMDA Reporting Requirements and Mitigation Steps

The Home Mortgage Disclosure Act (HMDA) demands covered institutions to make loan information readily available to the public. Public, industry leaders and the regulators rely on this data to analyze the performance of mortgage lenders in achieving goals that are achieved under the Equal credit Opportunity Act and the Fair Housing Act and the Community Reinvestment act. Incorrect HMDA data hurdles efforts to track discriminatory patterns that might exist in home mortgage lending and other compliance violations.

The major four errors in HMDA reporting are as follows. Errors in recording any one of these three variables will give incorrect calculations.

• Failure to Capture All HMDA-Reportable Transactions
• Inaccurate Loan Amount
• Incorrect Geocoding
• Wrong Rate Spread Calculation

Some of these mistakes are considered more significant than others. Some are more common than others. If the number of mistakes is high, it can result in rework and even fines. This can lead to loss of trust in your institution by regulators, which is never a good thing.

To learn the significance of HMDA reports, common mistakes in HMDA reports and how to reduce errors attend this webinar http://www.onlinecompliancepanel.com/webinar/HMDA-ReportingMistakes-501070/OCT-2015-SM