[JGo9]

I was working on the CFPB document published July 2017 and titled HMDA Loan Scenarios and ran into a question. In working through Scenario 1 (starts on page 4) the CFPB document indicates Total Points & Fees as being reported as “NA” (Page 8 – Data Field # 74).

Footnote #2 (Page – 4) states the following:

For purposes of this illustration, this example assumes that the transaction is subject to Regulation Z, 12 C.F.R. §§ 1026.19(f), 43(c). This example also assumes that the
transaction is not a high-cost mortgage loan as defined by Regulation Z, 12 C.F.R. § 1026.32(a).

In reviewing the Jack’s ComplianceResource manual titled HMDA Implementing the New Rules Part 2 – Completing and Revised Loan Application Register, along with the final rule section 12 CFR 1003.4(a)(17)(ii) it is my understanding this transaction would have been subject to ATR and that the Total Points & Fees Data Field should be completed with an amount or 0; whichever is applicable since the loan (scenario 1) is subject to 12 CFR 1026.43(c) (Ability-to-Repay – ATR).

In the scenario, it mentions the loan is to be sold to Fannie Mae. Being acceptable to be sold on the secondary market would make it compliant with ATR, but does this allow you to report this data field as NA, even though it is covered by 1026.43(c)?

It is my understanding that you would only report the Total Points & Fees Data Field with “NA” for loans that are NOT subject to 12 CFR 1026.43(C) (open-end loc, reverse mortgage, or commercial loans) or are covered by ATR but is a loan being purchased.

What am I missing? Any feedback you could supply would be much appreciated.

Thanks!

[rcooper]

It is because this loan was subject to the closing disclosure requirements so the total points and fees is reported as NA.

1003.(4)(a)(17) For covered loans subject to Regulation Z, 12 CFR 1026.43(c), the following information:

(i) If a disclosure is provided for the covered loan pursuant to Regulation Z, 12 CFR 1026.19(f), the amount of total loan costs, as disclosed pursuant to Regulation Z, 12 CFR 1026.38(f)(4); or

(ii) If the covered loan is not subject to the disclosure requirements in Regulation Z, 12 CFR 1026.19(f), and is not a purchased covered loan, the total points and fees charged in connection with the covered loan, expressed in dollars and calculated pursuant to Regulation Z, 12 CFR 1026.32(b)(1).

This NA reporting tool from the CFPB is helpful: https://files.consumerfinance.gov/f/201511_cfpb_hmda-reporting-not-applicable.pdf.

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