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If a HMDA applicable application is started over the telephone and later finished when the applicant comes into the office, for collection of monitoring purposes, would the lender need to request monitoring information as the application is taken over the phone or later when the applicant comes in the branch. Thanks.
From the information you’ve given, it sound as if you received the application over the phone, so this is when you should request the GMI. Take a look at Reg C, Appendix B (linked below) to ensure your procedures for requesting GMI over the phone are accurate. Also, remember to mark how the application was received (phone, mail, FTF…). Below are the definition of application from Regs B and C.
Reg B: 1002.2(f): Application means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. The term application does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information.
1002.13(a)(1): A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling, shall request…
Reg C:
1003.2(1): Application.—(1) In general. Application means 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.What if the telephone applicant says they do not wish to provide GMI. The LAR codes include one named the following for race, sex, and ethnicity: information not provided by applicant in mail, internet, or telephone application. For those instances, can the bank stop there on GMI, and report that code on the LAR? Or if that application ends up being an originated loan, is the bank expected to visually observe if we close the loan in person? Thank you.
The GMI should be collected at application, so if it is a telephone application and the applicant(s) chose not to provide the information then that is what you indicate. Visual observation at closing is outside of the application process so you would not be required to complete the GMI at closing.
Just to clarify cjernigan1211’s question, if an application is taken over the phone and the applicant has indicated that he/she chooses not to provide the GMI then you should notate that. If however, as cjernigan1211 stated above, the applicant comes in to complete the application process you should notate the GMI based on visual observation at that point as it is still part of the application process. Here’s a link to the 2013 A Guide to HMDA Reporting Getting it Right : https://www.ffiec.gov/hmda/pdf/2013guide.pdf
See pgs.B-1 and D-10.
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