12 Cfr 1003

12CFR1003_REG-C_(1-1-16 ED).pdf

Home Mortgage Disclosure Act (HMDA), 12 CFR 1003 (Regulation C)

12 CFR 1003

OMB: 3133-0166

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 3133-0166 can be found here:

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Bur. of Consumer Financial Protection

Pt. 1003

2. The disclosure of self-testing results to
an independent contractor acting as an auditor or consultant for the creditor on compliance matters does not result in loss of the
privilege.
Paragraph 15(d)(2)(ii).
1. The privilege is lost if the creditor discloses privileged information, such as the results of the self-test. The privilege is not lost
if the creditor merely reveals or refers to the
existence of the self-test.
Paragraph 15(d)(2)(iii).
1. A creditor’s claim of privilege may be
challenged in a court or administrative law
proceeding with appropriate jurisdiction. In
resolving the issue, the presiding officer may
require the creditor to produce privileged information about the self-test.
Paragraph 15(d)(3) Limited use of privileged
information.
1. A creditor may be required to produce
privileged documents for the purpose of determining a penalty or remedy after a violation of the ECOA or Regulation B has been
formally adjudicated or admitted. A creditor’s compliance with such a requirement
does not evidence the creditor’s intent to
forfeit the privilege.

issued, in compliance with the substitute
program or HMDA.
2. FHLMC/FNMA form—home improvement
loan application. The home-improvement and
energy loan application form (FHLMC 703/
FNMA 1012), prepared by the Federal Home
Loan Mortgage Corporation and the Federal
National Mortgage Association and dated
October 1986, complies with the requirements
of the regulation for some creditors but not
others because of the form’s section ‘‘Information for Government Monitoring Purposes.’’ Creditors that are governed by
§ 1002.13(a) of the regulation (which limits
collection to applications primarily for the
purchase or refinancing of the applicant’s
principal residence) should delete, strike, or
modify the data-collection section on the
form when using it for transactions not covered by § 1002.13(a) to ensure that they do not
collect the information. Creditors that are
subject to more extensive collection requirements by a substitute monitoring program
under § 1002.13(d) may use the form as issued,
in compliance with that substitute program.
APPENDIX C—SAMPLE NOTIFICATION FORMS
1. Form C–9. If not otherwise provided
under other applicable disclosure requirements, creditors may design their own form,
add to, or modify the model form to reflect
their individual policies and procedures. For
example, a creditor may want to add:
i. A telephone number that applicants may
call to leave their name and the address to
which a copy of the appraisal or other written valuation should be sent.
ii. A notice of the cost the applicant will
be required to pay the creditor for the appraisal or other valuation

Section 1002.16—Enforcement, Penalties, and
Liabilities
16(c) Failure of compliance.
1. Inadvertent errors. Inadvertent errors include, but are not limited to, clerical mistake, calculation error, computer malfunction, and printing error. An error of legal
judgment is not an inadvertent error under
the regulation.
2. Correction of error. For inadvertent errors
that occur under §§ 1002.12 and 1002.13, this
section requires that they be corrected prospectively.

[76 FR 79445, Dec. 21, 2011, as amended at 78
FR 7248, Jan. 31, 2013]

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APPENDIX B—MODEL APPLICATION FORMS

PART 1003—HOME MORTGAGE
DISCLOSURE (REGULATION C)

1. Freddie Mac/Fannie Mae form—residential
loan application. The uniform residential loan
application form (Freddie Mac 65/Fannie Mae
1003), including supplemental form (Freddie
Mac 65A/Fannie Mae 1003A), prepared by the
Federal Home Loan Mortgage Corporation
and the Federal National Mortgage Association and dated October 1992 may be used by
creditors without violating this part. Creditors that are governed by the monitoring requirements of this part (which limits collection to applications primarily for the purchase or refinancing of the applicant’s principal residence) should delete, strike, or
modify the data-collection section on the
form when using it for transactions not covered by § 1002.13(a) to ensure that they do not
collect the information. Creditors that are
subject to more extensive collection requirements by a substitute monitoring program
under § 1002.13(d) or by the Home Mortgage
Disclosure Act (HMDA) may use the form as

Sec.
1003.1 Authority, purpose, and scope.
1003.2 Definitions.
1003.3 Exempt institutions.
1003.4 Compilation of loan data.
1003.5 Disclosure and reporting.
1003.6 Enforcement.
APPENDIX A TO PART 1003—FORM AND INSTRUCTIONS FOR COMPLETION OF HMDA
LOAN/APPLICATION REGISTER
APPENDIX B TO PART 1003—FORM AND INSTRUCTIONS FOR DATA COLLECTION ON
ETHNICITY, RACE, AND SEX
APPENDIX C TO PART 1003—PROCEDURES FOR
GENERATING A CHECK DIGIT AND VALIDATING A ULI
SUPPLEMENT I TO PART 1003—STAFF COMMENTARY

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§ 1003.1

12 CFR Ch. X (1–1–16 Edition)

AUTHORITY: 12 U.S.C. 2803, 2804, 2805, 5512,
5581.

convenience of the user, the revised text is
set forth as follows:

SOURCE: 76 FR 78468, Dec. 19, 2011, unless
otherwise noted.

§ 1003.1

§ 1003.1 Authority, purpose, and scope.
(a) Authority. This part, known as
Regulation C, is issued by the Bureau
of Consumer Financial Protection (Bureau) pursuant to the Home Mortgage
Disclosure Act (HMDA) (12 U.S.C. 2801
et seq.,) as amended. The informationcollection requirements have been approved by the U.S. Office of Management and Budget (OMB) under 44
U.S.C. 3501 et seq. and have been assigned OMB numbers for institutions
reporting data to the Office of the
Comptroller of the Currency (1557–0159),
the Federal Deposit Insurance Corporation (3064–0046), the Federal Reserve
System (7100–0247), the Department of
Housing and Urban Development (HUD)
(2502–0529), the National Credit Union
Administration (3133–0166), and the Bureau of Consumer Financial Protection
(3170–0008).
(b) Purpose. (1) This part implements
the Home Mortgage Disclosure Act,
which is intended to provide the public
with loan data that can be used:
(i) To help determine whether financial institutions are serving the housing needs of their communities;
(ii) To assist public officials in distributing public-sector investment so
as to attract private investment to
areas where it is needed; and
(iii) To assist in identifying possible
discriminatory lending patterns and
enforcing antidiscrimination statutes.
(2) Neither the act nor this part is intended to encourage unsound lending
practices or the allocation of credit.
(c) Scope. This part applies to certain
financial institutions, including banks,
savings associations, credit unions, and
other mortgage lending institutions, as
defined in § 1003.2. The regulation requires an institution to report data to
the appropriate Federal agency about
home purchase loans, home improvement loans, and refinancings that it
originates or purchases, or for which it
receives applications; and to disclose
certain data to the public.

Authority, purpose, and scope.

§ 1003.2

Definitions.

In this part:
Act means the Home Mortgage Disclosure Act (HMDA) (12 U.S.C. 2801 et
seq.,) as amended.
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.
(2) Preapproval programs. A request
for preapproval for a home purchase
loan is an application under this section 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 valid for a designated period of
time to extend a home purchase loan
up to a specified amount. The written
commitment may not be subject to
conditions other than:
(i) Conditions that require the identification of a suitable property;
(ii) Conditions that require that no
material change has occurred in the
applicant’s financial condition or creditworthiness prior to closing; and
(iii) 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).
Branch office means:

EFFECTIVE DATE NOTE: At 80 FR 66308, Oct.
28, 2015, § 1003.1 was amended by revising
paragraph (c), effective Jan. 1, 2018. For the

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(c) Scope. This part applies to financial institutions as defined in § 1003.2(g). This part
requires a financial institution to submit
data to the appropriate Federal agency for
the financial institution as defined in
§ 1003.5(a)(4), and to disclose certain data to
the public, about covered loans for which the
financial institution receives applications,
or that it originates or purchases, and that
are secured by a dwelling located in a State
of the United States of America, the District
of Columbia, or the Commonwealth of Puerto Rico.

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Bur. of Consumer Financial Protection

§ 1003.2

(1) Any office of a bank, savings association, or credit union that is approved as a branch by a Federal or
state supervisory agency, but excludes
free-standing electronic terminals such
as automated teller machines; and
(2) Any office of a for-profit mortgage-lending institution (other than a
bank, savings association, or credit
union) that takes applications from the
public for home purchase loans, home
improvement loans, or refinancings. A
for-profit mortgage-lending institution
is also deemed to have a branch office
in an MSA or in a Metropolitan Division, if, in the preceding calendar year,
it received applications for, originated,
or purchased five or more home purchase loans, home improvement loans,
or refinancings related to property located in that MSA or Metropolitan Division, respectively.
Dwelling means a residential structure (whether or not attached to real
property) located in a state of the
United States of America, the District
of Columbia, or the Commonwealth of
Puerto Rico. The term includes an individual condominium unit, cooperative unit, or mobile or manufactured
home.
Financial institution means:
(1) A bank, savings association, or
credit union that:
(i) On the preceding December 31 had
assets in excess of the asset threshold
established and published annually by
the Bureau for coverage by the act,
based on the year-to-year change in the
average of the Consumer Price Index
for Urban Wage Earners and Clerical
Workers, not seasonally adjusted, for
each twelve month period ending in
November, with rounding to the nearest million;
(ii) On the preceding December 31,
had a home or branch office in an MSA;
(iii) In the preceding calendar year,
originated at least one home purchase
loan (excluding temporary financing
such as a construction loan) or refinancing of a home purchase loan, secured by a first lien on a one-to fourfamily dwelling; and
(iv) Meets one or more of the following three criteria:
(A) The institution is Federally insured or regulated;

(B) The mortgage loan referred to in
paragraph (1)(iii) of this definition was
insured, guaranteed, or supplemented
by a Federal agency; or
(C) The mortgage loan referred to in
paragraph (1)(iii) of this definition was
intended by the institution for sale to
Fannie Mae or Freddie Mac; and
(2) A for-profit mortgage-lending institution (other than a bank, savings
association, or credit union) that:
(i) In the preceding calendar year, either:
(A) 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
(B) Originated home purchase loans,
including refinancings of home purchase loans, that equaled at least $25
million; and
(ii) On the preceding December 31,
had a home or branch office in an MSA;
and
(iii) Either:
(A) On the preceding December 31,
had total assets of more than $10 million, counting the assets of any parent
corporation; or
(B) In the preceding calendar year,
originated at least 100 home purchase
loans, including refinancings of home
purchase loans.
Home-equity line of credit means an
open-end credit plan secured by a
dwelling as defined in Regulation Z
(Truth in Lending), 12 CFR part 1026.
Home improvement loan means:
(1) A loan secured by a lien on a
dwelling that is for the purpose, in
whole or in part, of repairing, rehabilitating, remodeling, or improving a
dwelling or the real property on which
it is located; and
(2) A non-dwelling secured loan that
is for the purpose, in whole or in part,
of repairing, rehabilitating, remodeling, or improving a dwelling or the
real property on which it is located,
and that is classified by the financial
institution as a home improvement
loan.
Home purchase loan means a loan secured by and made for the purpose of
purchasing a dwelling.
Manufactured home means any residential structure as defined under regulations of the Department of Housing

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§ 1003.2, Nt.

12 CFR Ch. X (1–1–16 Edition)
§ 1003.2 Definitions.
In this part:
(a) Act means the Home Mortgage Disclosure Act (HMDA) (12 U.S.C. 2801 et seq.), as
amended.
(b) Application—(1) In general. Application
means an oral or written request for a covered loan that is made in accordance with
procedures used by a financial institution for
the type of credit requested.
(2) Preapproval programs. A request for
preapproval for a home purchase loan, other
than a home purchase loan that will be an
open-end line of credit, a reverse mortgage,
or secured by a multifamily dwelling, is an
application under this section 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 valid for a designated period of time
to extend a home purchase loan up to a specified amount. The written commitment may
not be subject to conditions other than:
(i) Conditions that require the identification of a suitable property;
(ii) Conditions that require that no material change has occurred in the applicant’s
financial condition or creditworthiness prior
to closing; and
(iii) Limited conditions that are not related to the financial condition or creditworthiness of the applicant that the financial institution ordinarily attaches to a traditional home mortgage application.
(c) Branch office means:
(1) Any office of a bank, savings association, or credit union that is considered a
branch by the Federal or State supervisory
agency applicable to that institution, excluding automated teller machines and other
free-standing electronic terminals; and
(2) Any office of a for-profit mortgage-lending institution (other than a bank, savings
association, or credit union) that takes applications from the public for covered loans.
A for-profit mortgage-lending institution
(other than a bank, savings association, or
credit union) is also deemed to have a branch
office in an MSA or in an MD, if, in the preceding calendar year, it received applications for, originated, or purchased five or
more covered loans related to property located in that MSA or MD, respectively.
(d) Closed-end mortgage loan means an extension of credit that is secured by a lien on
a dwelling and that is not an open-end line of
credit under paragraph (o) of this section.
(e) Covered loan means a closed-end mortgage loan or an open-end line of credit that
is not an excluded transaction under
§ 1003.3(c).
(f) Dwelling means a residential structure,
whether or not attached to real property.
The term includes but is not limited to a detached home, an individual condominium or
cooperative unit, a manufactured home or

and Urban Development establishing
manufactured home construction and
safety standards (24 CFR 3280.2).
Metropolitan Statistical Area or MSA
and Metropolitan Division or MD—(1)
Metropolitan Statistical Area or MSA
means a metropolitan statistical area
as defined by the U.S. Office of Management and Budget.
(2) Metropolitan Division or MD means
a metropolitan division of an MSA, as
defined by the U.S. Office of Management and Budget.
Refinancing means a new obligation
that satisfies and replaces an existing
obligation by the same borrower, in
which:
(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.
EFFECTIVE DATE NOTE 1: At 80 FR 66308,
Oct. 28, 2015, § 1003.2 was amended by revising
paragraph (1)(iii) and adding paragraph (1)(v)
to the definition of ‘‘financial institution’’,
effective Jan. 1, 2017. For the convenience of
the user, the added and revised text is set
forth as follows:
§ 1003.2

Definitions.

Financial institution means:
(1) * * *
(iii) In the preceding calendar year, originated at least one home purchase loan (excluding temporary financing such as a construction loan) or refinancing of a home purchase loan, secured by a first lien on a oneto four-family dwelling;

(v) In each of the two preceding calendar
years, originated at least 25 home purchase
loans, including refinancings of home purchase loans, that are not excluded from this
part pursuant to § 1003.4(d); and

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EFFECTIVE DATE NOTE 2: At 80 FR 66308,
Oct. 28, 2015, § 1003.2 was revised, effective
Jan. 1, 2018. For the convenience of the user,
the revised text is set forth as follows:

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Bur. of Consumer Financial Protection

§ 1003.3

other factory-built home, or a multifamily
residential structure or community.
(g) Financial institution means a depository
financial institution or a nondepository financial institution, where:
(1) Depository financial institution means a
bank, savings association, or credit union
that:
(i) On the preceding December 31 had assets in excess of the asset threshold established and published annually by the Bureau
for coverage by the Act, based on the yearto-year change in the average of the Consumer Price Index for Urban Wage Earners
and Clerical Workers, not seasonally adjusted, for each twelve month period ending
in November, with rounding to the nearest
million;
(ii) On the preceding December 31, had a
home or branch office in an MSA;
(iii) 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-unit dwelling;
(iv) Meets one or more of the following two
criteria:
(A) The institution is federally insured or
regulated; or
(B) Any loan referred to in paragraph
(g)(1)(iii) of this section was insured, guaranteed, or supplemented by a Federal agency,
or was intended by the institution for sale to
the Federal National Mortgage Association
or the Federal Home Loan Mortgage Corporation; and
(v) Meets at least one of the following criteria:
(A) In each of the two preceding calendar
years, originated at least 25 closed-end mortgage loans that are not excluded from this
part pursuant to § 1003.3(c)(1) through (10); or
(B) In each of the two preceding calendar
years, originated at least 100 open-end lines
of credit that are not excluded from this part
pursuant to § 1003.3(c)(1) through (10); and
(2) Nondepository financial institution means
a for-profit mortgage-lending institution
(other than a bank, savings association, or
credit union) that:
(i) On the preceding December 31, had a
home or branch office in an MSA; and
(ii) Meets at least one of the following criteria:
(A) In each of the two preceding calendar
years, originated at least 25 closed-end mortgage loans that are not excluded from this
part pursuant to § 1003.3(c)(1) through (10); or
(B) In each of the two preceding calendar
years, originated at least 100 open-end lines
of credit that are not excluded from this part
pursuant to § 1003.3(c)(1) through (10).
(h) [Reserved]
(i) Home improvement loan means a closedend mortgage loan or an open-end line of
credit that is for the purpose, in whole or in
part, of repairing, rehabilitating, remod-

eling, or improving a dwelling or the real
property on which the dwelling is located.
(j) Home purchase loan means a closed-end
mortgage loan or an open-end line of credit
that is for the purpose, in whole or in part,
of purchasing a dwelling.
(k) Loan/Application Register means both
the record of information required to be collected pursuant to § 1003.4 and the record submitted annually or quarterly, as applicable,
pursuant to § 1003.5(a).
(l) Manufactured home means any residential structure as defined under regulations of
the U.S. Department of Housing and Urban
Development
establishing
manufactured
home construction and safety standards (24
CFR 3280.2). For purposes of § 1003.4(a)(5), the
term also includes a multifamily dwelling
that is a manufactured home community.
(m) Metropolitan Statistical Area (MSA) and
Metropolitan Division (MD). (1) Metropolitan
Statistical Area or MSA means a Metropolitan
Statistical Area as defined by the U.S. Office
of Management and Budget.
(2) Metropolitan Division (MD) means a Metropolitan Division of an MSA, as defined by
the U.S. Office of Management and Budget.
(n) Multifamily dwelling means a dwelling,
regardless of construction method, that contains five or more individual dwelling units.
(o) Open-end line of credit means an extension of credit that:
(1) Is secured by a lien on a dwelling; and
(2) Is an open-end credit plan as defined in
Regulation Z, 12 CFR 1026.2(a)(20), but without regard to whether the credit is consumer
credit, as defined in § 1026.2(a)(12), is extended by a creditor, as defined in
§ 1026.2(a)(17), or is extended to a consumer,
as defined in § 1026.2(a)(11).
(p) Refinancing means a closed-end mortgage loan or an open-end line of credit in
which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.
(q) Reverse mortgage means a closed-end
mortgage loan or an open-end line of credit
that is a reverse mortgage transaction as defined in Regulation Z, 12 CFR 1026.33(a), but
without regard to whether the security interest is created in a principal dwelling.

§ 1003.3

Exempt institutions.

(a) Exemption based on state law. (1) A
state-chartered or state-licensed financial institution is exempt from the requirements of this part if the Bureau
determines that the institution is subject to a state disclosure law that contains requirements substantially similar to those imposed by this part and
that contains adequate provisions for
enforcement.

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§ 1003.4

12 CFR Ch. X (1–1–16 Edition)
(10) A closed-end mortgage loan or openend line of credit that is or will be made primarily for a business or commercial purpose,
unless the closed-end mortgage loan or openend line of credit is a home improvement
loan under § 1003.2(i), a home purchase loan
under § 1003.2(j), or a refinancing under
§ 1003.2(p);
(11) A closed-end mortgage loan, if the financial institution originated fewer than 25
closed-end mortgage loans in each of the two
preceding calendar years; or
(12) An open-end line of credit, if the financial institution originated fewer than 100
open-end lines of credit in each of the two
preceding calendar years.

(2) Any state, state-chartered or
state-licensed financial institution, or
association of such institutions, may
apply to the Bureau for an exemption
under paragraph (a) of this section.
(3) An institution that is exempt
under paragraph (a) of this section
shall use the disclosure form required
by its state law and shall submit the
data required by that law to its state
supervisory agency for purposes of aggregation.
(b) Loss of exemption. An institution
losing a state-law exemption under
paragraph (a) of this section shall comply with this part beginning with the
calendar year following the year for
which it last reported loan data under
the state disclosure law.

§ 1003.4 Compilation of loan data.
(a) Data format and itemization. A financial institution shall collect data
regarding applications for, and originations and purchases of, home purchase
loans, home improvement loans, and
refinancings for each calendar year. An
institution is required to collect data
regarding requests under a preapproval
program (as defined in § 1003.2) only if
the preapproval request is denied or results in the origination of a home purchase loan. All reportable transactions
shall be recorded, within thirty calendar days after the end of the calendar quarter in which final action is
taken (such as origination or purchase
of a loan, or denial or withdrawal of an
application), on a register in the format prescribed in appendix A of this
part. The data recorded shall include
the following items:
(1) An identifying number for the
loan or loan application, and the date
the application was received.
(2) The type of loan or application.
(3) The purpose of the loan or application.
(4) Whether the application is a request for preapproval and whether it
resulted in a denial or in an origination.
(5) The property type to which the
loan or application relates.
(6) The owner-occupancy status of
the property to which the loan or application relates.
(7) The amount of the loan or the
amount applied for.
(8) The type of action taken, and the
date.
(9) The location of the property to
which the loan or application relates,
by MSA or by Metropolitan Division,

EFFECTIVE DATE NOTE: At 80 FR 66309, Oct.
28, 2015, § 1003.3 was amended by revising the
section heading and adding paragraph (c), effective Jan. 1, 2018. For the convenience of
the user, the added and revised text is set
forth as follows:
§ 1003.3 Exempt institutions and excluded
transactions.

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(c) Excluded transactions. The requirements
of this part do not apply to:
(1) A closed-end mortgage loan or open-end
line of credit originated or purchased by a financial institution acting in a fiduciary capacity;
(2) A closed-end mortgage loan or open-end
line of credit secured by a lien on unimproved land;
(3) Temporary financing;
(4) The purchase of an interest in a pool of
closed-end mortgage loans or open-end lines
of credit;
(5) The purchase solely of the right to service closed-end mortgage loans or open-end
lines of credit;
(6) The purchase of closed-end mortgage
loans or open-end lines of credit as part of a
merger or acquisition, or as part of the acquisition of all of the assets and liabilities of
a branch office as defined in § 1003.2(c);
(7) A closed-end mortgage loan or open-end
line of credit, or an application for a closedend mortgage loan or open-end line of credit,
for which the total dollar amount is less
than $500;
(8) The purchase of a partial interest in a
closed-end mortgage loan or open-end line of
credit;
(9) A closed-end mortgage loan or open-end
line of credit used primarily for agricultural
purposes;

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Bur. of Consumer Financial Protection

§ 1003.4, Nt.

by state, by county, and by census
tract, if the institution has a home or
branch office in that MSA or Metropolitan Division.
(10) The ethnicity, race, and sex of
the applicant or borrower, and the
gross annual income relied on in processing the application.
(11) The type of entity purchasing a
loan that the institution originates or
purchases and then sells within the
same calendar year (this information
need not be included in quarterly updates).
(12)(i) For originated loans subject to
Regulation Z, 12 CFR part 1026, the difference between the loan’s annual percentage rate (APR) and the average
prime offer rate for a comparable
transaction as of the date the interest
rate is set, if that difference is equal to
or greater than 1.5 percentage points
for loans secured by a first lien on a
dwelling, or equal to or greater than 3.5
percentage points for loans secured by
a subordinate lien on a dwelling.
(ii) ‘‘Average prime offer rate’’ means
an annual percentage rate that is derived from average interest rates,
points, and other loan pricing terms
currently offered to consumers by a
representative sample of creditors for
mortgage loans that have low-risk
pricing characteristics. The Bureau
publishes average prime offer rates for
a broad range of types of transactions
in tables updated at least weekly, as
well as the methodology the Bureau
uses to derive these rates.
(13) Whether the loan is subject to
the Home Ownership and Equity Protection Act of 1994, as implemented in
Regulation Z (12 CFR 1026.32).
(14) The lien status of the loan or application (first lien, subordinate lien,
or not secured by a lien on a dwelling).
(b) Collection of data on ethnicity, race,
sex, and income. (1) A financial institution shall collect data about the ethnicity, race, and sex of the applicant or
borrower as prescribed in appendix B of
this part.
(2) Ethnicity, race, sex, and income
data may but need not be collected for
loans purchased by the financial institution.
(c) Optional data. A financial institution may report:

(1) The reasons it denied a loan application;
(2) Requests for preapproval that are
approved by the institution but not accepted by the applicant; and
(3) Home-equity lines of credit made
in whole or in part for the purpose of
home improvement or home purchase.
(d) Excluded data. A financial institution shall not report:
(1) Loans originated or purchased by
the financial institution acting in a fiduciary capacity (such as trustee);
(2) Loans on unimproved land;
(3) Temporary financing (such as
bridge or construction loans);
(4) The purchase of an interest in a
pool of loans (such as mortgage-participation
certificates,
mortgagebacked securities, or real estate mortgage investment conduits);
(5) The purchase solely of the right to
service loans; or
(6) Loans acquired as part of a merger or acquisition, or as part of the acquisition of all of the assets and liabilities of a branch office as defined in
§ 1003.2.
(e) Data reporting for banks and savings associations that are required to report data on small business, small farm,
and community development lending
under CRA. Banks and savings associations that are required to report data
on small business, small farm, and
community development lending under
regulations that implement the Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) shall also collect the
location of property located outside
MSAs and Metropolitan Divisions in
which the institution has a home or
branch office, or outside any MSA.
EFFECTIVE DATE NOTE: At 80 FR 66310, Oct.
28, 2015, § 1003.4 was revised, effective Jan. 1,
2018. For the convenience of the user, the revised text is set forth as follows:
§ 1003.4 Compilation of reportable data.
(a) Data format and itemization. A financial
institution shall collect data regarding applications for covered loans that it receives,
covered loans that it originates, and covered
loans that it purchases for each calendar
year. A financial institution shall collect
data regarding requests under a preapproval
program, as defined in § 1003.2(b)(2), only if
the preapproval request is denied, is approved by the financial institution but not
accepted by the applicant, or results in the
origination of a home purchase loan. The

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§ 1003.4, Nt.

12 CFR Ch. X (1–1–16 Edition)

data collected shall include the following
items:
(1)(i) A universal loan identifier (ULI) for
the covered loan or application that can be
used to identify and retrieve the covered
loan or application file. Except for a purchased covered loan or application described
in paragraphs (a)(1)(i)(D) and (E) of this section, the financial institution shall assign
and report a ULI that:
(A) Begins with the financial institution’s
Legal Entity Identifier (LEI) that is issued
by:
(1) A utility endorsed by the LEI Regulatory Oversight Committee; or
(2) A utility endorsed or otherwise governed by the Global LEI Foundation (GLEIF)
(or any successor of the GLEIF) after the
GLEIF assumes operational governance of
the global LEI system.
(B) Follows the LEI with up to 23 additional characters to identify the covered
loan or application, which:
(1) May be letters, numerals, or a combination of letters and numerals;
(2) Must be unique within the financial institution; and
(3) Must not include any information that
could be used to directly identify the applicant or borrower; and
(C) Ends with a two-character check digit,
as prescribed in appendix C to this part.
(D) For a purchased covered loan that any
financial institution has previously assigned
or reported with a ULI under this part, the
financial institution that purchases the covered loan must use the ULI that was assigned or previously reported for the covered
loan.
(E) For an application that was previously
reported with a ULI under this part and that
results in an origination during the same
calendar year that is reported in a subsequent
reporting
period
pursuant
to
§ 1003.5(a)(1)(ii), the financial institution may
report the same ULI for the origination that
was previously reported for the application.
(ii) Except for purchased covered loans, the
date the application was received or the date
shown on the application form.
(2) Whether the covered loan is, or in the
case of an application would have been, insured by the Federal Housing Administration, guaranteed by the Veterans Administration, or guaranteed by the Rural Housing
Service or the Farm Service Agency.
(3) Whether the covered loan is, or the application is for, a home purchase loan, a
home improvement loan, a refinancing, a
cash-out refinancing, or for a purpose other
than home purchase, home improvement, refinancing, or cash-out refinancing.
(4) Whether the application or covered loan
involved a request for a preapproval of a
home purchase loan under a preapproval program.

(5) Whether the construction method for
the dwelling related to the property identified in paragraph (a)(9) of this section is sitebuilt or a manufactured home.
(6) Whether the property identified in paragraph (a)(9) of this section is or will be used
by the applicant or borrower as a principal
residence, as a second residence, or as an investment property.
(7) The amount of the covered loan or the
amount applied for, as applicable.
(i) For a closed-end mortgage loan, other
than a purchased loan, an assumption, or a
reverse mortgage, the amount to be repaid as
disclosed on the legal obligation. For a purchased closed-end mortgage loan or an assumption of a closed-end mortgage loan, the
unpaid principal balance at the time of purchase or assumption.
(ii) For an open-end line of credit, other
than a reverse mortgage open-end line of
credit, the amount of credit available to the
borrower under the terms of the plan.
(iii) For a reverse mortgage, the initial
principal limit, as determined pursuant to
section 255 of the National Housing Act (12
U.S.C. 1715z–20) and implementing regulations and mortgagee letters issued by the
U.S. Department of Housing and Urban Development.
(8) The following information about the financial institution’s action:
(i) The action taken by the financial institution, recorded as one of the following:
(A) Whether a covered loan was originated
or purchased;
(B) Whether an application for a covered
loan that did not result in the origination of
a covered loan was approved but not accepted, denied, withdrawn by the applicant, or
closed for incompleteness; and
(C) Whether a preapproval request that did
not result in the origination of a home purchase loan was denied or approved but not
accepted.
(ii) The date of the action taken by the financial institution.
(9) The following information about the location of the property securing the covered
loan or, in the case of an application, proposed to secure the covered loan:
(i) The property address; and
(ii) If the property is located in an MSA or
MD in which the financial institution has a
home or branch office, or if the institution is
subject to paragraph (e) of this section, the
location of the property by:
(A) State;
(B) County; and
(C) Census tract if the property is located
in a county with a population of more than
30,000 according to the most recent decennial
census conducted by the U.S. Census Bureau.
(10) The following information about the
applicant or borrower:

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Bur. of Consumer Financial Protection

§ 1003.4, Nt.

(i) Ethnicity, race, and sex, and whether
this information was collected on the basis
of visual observation or surname;
(ii) Age; and
(iii) Except for covered loans or applications for which the credit decision did not
consider or would not have considered income, the gross annual income relied on in
making the credit decision or, if a credit decision was not made, the gross annual income relied on in processing the application.
(11) The type of entity purchasing a covered loan that the financial institution originates or purchases and then sells within the
same calendar year.
(12)(i) For covered loans subject to Regulation Z, 12 CFR part 1026, other than assumptions, purchased covered loans, and reverse
mortgages, the difference between the covered loan’s annual percentage rate and the
average prime offer rate for a comparable
transaction as of the date the interest rate is
set.
(ii) ‘‘Average prime offer rate’’ means an
annual percentage rate that is derived from
average interest rates, points, and other loan
pricing terms currently offered to consumers
by a representative sample of creditors for
mortgage loans that have low-risk pricing
characteristics. The Bureau publishes average prime offer rates for a broad range of
types of transactions in tables updated at
least weekly, as well as the methodology the
Bureau uses to derive these rates.
(13) For covered loans subject to the Home
Ownership and Equity Protection Act of 1994,
as implemented in Regulation Z, 12 CFR
1026.32, whether the covered loan is a highcost mortgage under Regulation Z, 12 CFR
1026.32(a).
(14) The lien status (first or subordinate
lien) of the property identified under paragraph (a)(9) of this section.
(15)(i) Except for purchased covered loans,
the credit score or scores relied on in making
the credit decision and the name and version
of the scoring model used to generate each
credit score.
(ii) For purposes of this paragraph (a)(15),
‘‘credit score’’ has the meaning set forth in
15 U.S.C. 1681g(f)(2)(A).
(16) The principal reason or reasons the financial institution denied the application, if
applicable.
(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, ex-

pressed in dollars and calculated pursuant to
Regulation Z, 12 CFR 1026.32(b)(1).
(18) For covered loans subject to the disclosure requirements in Regulation Z, 12 CFR
1026.19(f), the total of all itemized amounts
that are designated borrower-paid at or before closing, as disclosed pursuant to Regulation Z, 12 CFR 1026.38(f)(1).
(19) For covered loans subject to the disclosure requirements in Regulation Z, 12 CFR
1026.19(f), the points paid to the creditor to
reduce the interest rate, expressed in dollars,
as described in Regulation Z, 12 CFR
1026.37(f)(1)(i), and disclosed pursuant to Regulation Z, 12 CFR 1026.38(f)(1).
(20) For covered loans subject to the disclosure requirements in Regulation Z, 12 CFR
1026.19(f), the amount of lender credits, as
disclosed pursuant to Regulation Z, 12 CFR
1026.38(h)(3).
(21) The interest rate applicable to the approved application, or to the covered loan at
closing or account opening.
(22) For covered loans or applications subject to Regulation Z, 12 CFR part 1026, other
than reverse mortgages or purchased covered
loans, the term in months of any prepayment penalty, as defined in Regulation Z, 12
CFR 1026.32(b)(6)(i) or (ii), as applicable.
(23) Except for purchased covered loans,
the ratio of the applicant’s or borrower’s
total monthly debt to the total monthly income relied on in making the credit decision.
(24) Except for purchased covered loans,
the ratio of the total amount of debt secured
by the property to the value of the property
relied on in making the credit decision.
(25) The scheduled number of months after
which the legal obligation will mature or
terminate or would have matured or terminated.
(26) The number of months, or proposed
number of months in the case of an application, until the first date the interest rate
may change after closing or account opening.
(27) Whether the contractual terms include
or would have included any of the following:
(i) A balloon payment as defined in Regulation Z, 12 CFR 1026.18(s)(5)(i);
(ii) Interest-only payments as defined in
Regulation Z, 12 CFR 1026.18(s)(7)(iv);
(iii) A contractual term that would cause
the covered loan to be a negative amortization loan as defined in Regulation Z, 12 CFR
1026.18(s)(7)(v); or
(iv) Any other contractual term that would
allow for payments other than fully amortizing payments, as defined in Regulation Z,
12 CFR 1026.43(b)(2), during the loan term,
other than the contractual terms described
in this paragraph (a)(27)(i), (ii), and (iii).
(28) The value of the property securing the
covered loan or, in the case of an application, proposed to secure the covered loan relied on in making the credit decision.

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§ 1003.5

12 CFR Ch. X (1–1–16 Edition)

(29) If the dwelling related to the property
identified in paragraph (a)(9) of this section
is a manufactured home and not a multifamily dwelling, whether the covered loan is,
or in the case of an application would have
been, secured by a manufactured home and
land, or by a manufactured home and not
land.
(30) If the dwelling related to the property
identified in paragraph (a)(9) of this section
is a manufactured home and not a multifamily dwelling, whether the applicant or
borrower:
(i) Owns the land on which it is or will be
located or, in the case of an application, did
or would have owned the land on which it
would have been located, through a direct or
indirect ownership interest; or
(ii) Leases or, in the case of an application,
leases or would have leased the land through
a paid or unpaid leasehold.
(31) The number of individual dwelling
units related to the property securing the
covered loan or, in the case of an application, proposed to secure the covered loan.
(32) If the property securing the covered
loan or, in the case of an application, proposed to secure the covered loan includes a
multifamily dwelling, the number of individual dwelling units related to the property
that are income-restricted pursuant to Federal, State, or local affordable housing programs.
(33) Except for purchased covered loans,
the following information about the application channel of the covered loan or application:
(i) Whether the applicant or borrower submitted the application for the covered loan
directly to the financial institution; and
(ii) Whether the obligation arising from
the covered loan was, or in the case of an application, would have been initially payable
to the financial institution.
(34) For a covered loan or application, the
unique identifier assigned by the Nationwide
Mortgage Licensing System and Registry for
the mortgage loan originator, as defined in
Regulation G, 12 CFR 1007.102, or Regulation
H, 12 CFR 1008.23, as applicable.
(35)(i) Except for purchased covered loans,
the name of the automated underwriting system used by the financial institution to
evaluate the application and the result generated by that automated underwriting system.
(ii) For purposes of this paragraph (a)(35),
an ‘‘automated underwriting system’’ means
an electronic tool developed by a securitizer,
Federal government insurer, or Federal government guarantor that provides a result regarding the credit risk of the applicant and
whether the covered loan is eligible to be
originated, purchased, insured, or guaranteed by that securitizer, Federal government
insurer, or Federal government guarantor.

(36) Whether the covered loan is, or the application is for, a reverse mortgage.
(37) Whether the covered loan is, or the application is for, an open-end line of credit.
(38) Whether the covered loan is, or the application is for a covered loan that will be,
made primarily for a business or commercial
purpose.
(b) Collection of data on ethnicity, race, sex,
age, and income. (1) A financial institution
shall collect data about the ethnicity, race,
and sex of the applicant or borrower as prescribed in appendix B to this part.
(2) Ethnicity, race, sex, age, and income
data may but need not be collected for covered loans purchased by a financial institution.
(c)–(d) [Reserved]
(e) Data reporting for banks and savings associations that are required to report data on
small business, small farm, and community development lending under CRA. Banks and savings associations that are required to report
data on small business, small farm, and community development lending under regulations that implement the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.)
shall also collect the information required
by paragraph 4(a)(9) of this section for property located outside MSAs and MDs in which
the institution has a home or branch office,
or outside any MSA.
(f) Quarterly recording of data. A financial
institution shall record the data collected
pursuant to this section on a loan/application register within 30 calendar days after
the end of the calendar quarter in which
final action is taken (such as origination or
purchase of a covered loan, sale of a covered
loan in the same calendar year it is originated or purchased, or denial or withdrawal
of an application).

§ 1003.5

Disclosure and reporting.

(a) Reporting to agency. (1) By March
1 following the calendar year for which
the loan data are compiled, a financial
institution shall send its complete
loan/application register to the agency
office specified in appendix A of this
part. The institution shall retain a
copy for its records for at least three
years.
(2) A subsidiary of a bank or savings
association shall complete a separate
loan/application register. The subsidiary shall submit the register, directly or through its parent, to the
same agency as its parent.
(b) Public disclosure of statement. (1)
The Federal Financial Institutions Examination Council (FFIEC) will prepare a disclosure statement from the

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Bur. of Consumer Financial Protection

§ 1003.5, Nt.

data each financial institution submits.
(2) An institution shall make its disclosure statement (prepared by the
FFIEC) available to the public at the
institution’s home office no later than
three business days after receiving the
disclosure statement from the FFIEC.
(3) In addition, an institution shall
either:
(i) Make its disclosure statement
available to the public, within ten business days of receiving it, in at least one
branch office in each other MSA and
each other Metropolitan Division
where the institution has offices (the
disclosure statement need only contain
data relating to the MSA or Metropolitan Division where the branch is located); or
(ii) Post the address for sending written requests in the lobby of each
branch office in other MSAs and Metropolitan Divisions where the institution
has offices; and mail or deliver a copy
of the disclosure statement within fifteen calendar days of receiving a written request (the disclosure statement
need only contain data relating to the
MSA or Metropolitan Division for
which the request is made). Including
the address in the general notice required under paragraph (e) of this section satisfies this requirement.
(c) Public disclosure of modified loan/
application register. A financial institution shall make its loan/application
register available to the public after
removing the following information regarding each entry: The application or
loan number, the date that the application was received, and the date action
was taken. An institution shall make
its modified register available following the calendar year for which the
data are compiled, by March 31 for a request received on or before March 1,
and within thirty calendar days for a
request received after March 1. The
modified register need only contain
data relating to the MSA or Metropolitan Division for which the request is
made.
(d) Availability of data. A financial institution shall make its modified register available to the public for a period of three years and its disclosure
statement available for a period of five
years. An institution shall make the

data available for inspection and copying during the hours the office is normally open to the public for business.
It may impose a reasonable fee for any
cost incurred in providing or reproducing the data.
(e) Notice of availability. A financial
institution shall post a general notice
about the availability of its HMDA
data in the lobby of its home office and
of each branch office located in an
MSA and Metropolitan Division. An institution shall provide promptly upon
request the location of the institution’s offices where the statement is
available for inspection and copying, or
it may include the location in the
lobby notice.
(f) Loan aggregation and central data
depositories. Using the loan data submitted by financial institutions, the
FFIEC will produce reports for individual institutions and reports of aggregate data for each MSA and Metropolitan Division, showing lending patterns by property location, age of housing stock, and income level, sex, ethnicity, and race. These reports will be
available to the public at central data
depositories located in each MSA and
Metropolitan Division. A listing of central data depositories can be obtained
from the Federal Financial Institutions Examination Council, Washington, DC 20006.
EFFECTIVE DATE NOTE 1: At 80 FR 66312,
Oct. 28, 2015, § 1003.5 was amended by revising
paragraphs (b) through (f), effective Jan. 1,
2018. For the convenience of the user, the revised text is set forth as follows:
§ 1003.5

Disclosure and reporting.

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(b) Disclosure statement. (1) The Federal Financial Institutions Examination Council
(FFIEC) will make available a disclosure
statement based on the data each financial
institution submits for the preceding calendar year pursuant to paragraph (a) of this
section.
(2) No later than three business days after
receiving notice from the FFIEC that a financial institution’s disclosure statement is
available, the financial institution shall
make available to the public upon request at
its home office, and each branch office physically located in each MSA and each MD, a
written notice that clearly conveys that the
institution’s disclosure statement may be

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§ 1003.5, Nt.

12 CFR Ch. X (1–1–16 Edition)

obtained on the Bureau’s Web site at
www.consumerfinance.gov/hmda.
(c) Modified loan/application register. (1) A
financial institution shall make available to
the public upon request at its home office,
and each branch office physically located in
each MSA and each MD, a written notice
that clearly conveys that the institution’s
loan/application register, as modified by the
Bureau to protect applicant and borrower
privacy, may be obtained on the Bureau’s
Web site at www.consumerfinance.gov/hmda.
(2) A financial institution shall make
available the notice required by paragraph
(c)(1) of this section following the calendar
year for which the data are collected.
(d) Availability of written notices. (1) A financial institution shall make the notice required by paragraph (c) of this section available to the public for a period of three years
and the notice required by paragraph (b)(2) of
this section available to the public for a period of five years. An institution shall make
these notices available during the hours the
office is normally open to the public for business.
(2) A financial institution may make available to the public, at its discretion and in addition to the written notices required by
paragraphs (b)(2) or (c)(1) of this section, as
applicable, its disclosure statement or its
loan/application register, as modified by the
Bureau to protect applicant and borrower
privacy. A financial institution may impose
a reasonable fee for any cost incurred in providing or reproducing these data.
(e) Posted notice of availability of data. A financial institution shall post a general notice about the availability of its HMDA data
in the lobby of its home office and of each
branch office physically located in each MSA
and each MD. This notice must clearly convey that the institution’s HMDA data is
available on the Bureau’s Web site at
www.consumerfinance.gov/hmda.
(f) Aggregated data. Using data submitted
by financial institutions pursuant to paragraph (a) of this section, the FFIEC will
make available aggregate data for each MSA
and MD, showing lending patterns by property location, age of housing stock, and income level, sex, ethnicity, and race.

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EFFECTIVE DATE NOTE 2: At 80 FR 66312,
Oct. 28, 2015, § 1003.5 was revised, effective
Jan. 1, 2019. For the convenience of the user,
the revised text is set forth as follows:
§ 1003.5 Disclosure and reporting.
(a) Reporting to agency—(1)(i) Annual reporting. By March 1 following the calendar year
for which data are collected and recorded as
required by § 1003.4, a financial institution
shall submit its annual loan/application register in electronic format to the appropriate
Federal agency at the address identified by
such agency. An authorized representative of

the financial institution with knowledge of
the data submitted shall certify to the accuracy and completeness of data submitted
pursuant to this paragraph (a)(1)(i). The financial institution shall retain a copy of its
annual loan/application register submitted
pursuant to this paragraph (a)(1)(i) for its
records for at least three years.
(ii) [Reserved]
(iii) When the last day for submission of
data prescribed under this paragraph (a)(1)
falls on a Saturday or Sunday, a submission
shall be considered timely if it is submitted
on the next succeeding Monday.
(2) A financial institution that is a subsidiary of a bank or savings association shall
complete a separate loan/application register. The subsidiary shall submit the loan/
application register, directly or through its
parent, to the appropriate Federal agency for
the subsidiary’s parent at the address identified by the agency.
(3) A financial institution shall provide
with its submission:
(i) Its name;
(ii) The calendar year the data submission
covers pursuant to paragraph (a)(1)(i) of this
section or calendar quarter and year the
data submission covers pursuant to paragraph (a)(1)(ii) of this section;
(iii) The name and contact information of
a person who may be contacted with questions about the institution’s submission;
(iv) Its appropriate Federal agency;
(v) The total number of entries contained
in the submission;
(vi) Its Federal Taxpayer Identification
number; and
(vii) Its Legal Entity Identifier (LEI) as described in § 1003.4(a)(1)(i)(A).
(4) For purposes of paragraph (a) of this
section,
‘‘appropriate
Federal
agency’’
means the appropriate agency for the financial institution as determined pursuant to
section 304(h)(2) of the Home Mortgage Disclosure Act (12 U.S.C. 2803(h)(2)) or, with respect to a financial institution subject to the
Bureau’s supervisory authority under section 1025(a) of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5515(a)), the Bureau.
(5) Procedures for the submission of data
pursuant to paragraph (a) of this section are
available at www.consumerfinance.gov/hmda.
(b) Disclosure statement. (1) The Federal Financial Institutions Examination Council
(FFIEC) will make available a disclosure
statement based on the data each financial
institution submits for the preceding calendar year pursuant to paragraph (a)(1)(i) of
this section.
(2) No later than three business days after
receiving notice from the FFIEC that a financial institution’s disclosure statement is
available, the financial institution shall
make available to the public upon request at

100

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Bur. of Consumer Financial Protection

§ 1003.6, Nt.

its home office, and each branch office physically located in each MSA and each MD, a
written notice that clearly conveys that the
institution’s disclosure statement may be
obtained on the Bureau’s Web site at
www.consumerfinance.gov/hmda.
(c) Modified loan/application register. (1) A
financial institution shall make available to
the public upon request at its home office,
and each branch office physically located in
each MSA and each MD, a written notice
that clearly conveys that the institution’s
loan/application register, as modified by the
Bureau to protect applicant and borrower
privacy, may be obtained on the Bureau’s
Web site at www.consumerfinance.gov/hmda.
(2) A financial institution shall make
available the notice required by paragraph
(c)(1) of this section following the calendar
year for which the data are collected.
(d) Availability of written notices. (1) A financial institution shall make the notice required by paragraph (c) of this section available to the public for a period of three years
and the notice required by paragraph (b)(2) of
this section available to the public for a period of five years. An institution shall make
these notices available during the hours the
office is normally open to the public for business.
(2) A financial institution may make available to the public, at its discretion and in addition to the written notices required by
paragraphs (b)(2) or (c)(1) of this section, as
applicable, its disclosure statement or its
loan/application register, as modified by the
Bureau to protect applicant and borrower
privacy. A financial institution may impose
a reasonable fee for any cost incurred in providing or reproducing these data.
(e) Posted notice of availability of data. A financial institution shall post a general notice about the availability of its HMDA data
in the lobby of its home office and of each
branch office physically located in each MSA
and each MD. This notice must clearly convey that the institution’s HMDA data is
available on the Bureau’s Web site at
www.consumerfinance.gov/hmda.
(f) Aggregated data. Using data submitted
by financial institutions pursuant to paragraph (a)(1)(i) of this section, the FFIEC will
make available aggregate data for each MSA
and MD, showing lending patterns by property location, age of housing stock, and income level, sex, ethnicity, and race.

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EFFECTIVE DATE NOTE 3: At 80 FR 66313,
Oct. 28, 2015, § 1003.5 was amended by adding
paragraph (a)(1)(ii), effective Jan. 1, 2020. For
the convenience of the user, the added text is
set forth as follows:
§ 1003.5

Disclosure and reporting.

(a) * * *
(1) * * *

(ii) Quarterly reporting. Within 60 calendar
days after the end of each calendar quarter
except the fourth quarter, a financial institution that reported for the preceding calendar year at least 60,000 covered loans and
applications, combined, excluding purchased
covered loans, shall submit to the appropriate Federal agency its loan/application
register containing all data required to be
recorded for that quarter pursuant to
§ 1003.4(f). The financial institution shall submit its quarterly loan/application register
pursuant to this paragraph (a)(1)(ii) in electronic format at the address identified by
the appropriate Federal agency for the institution.

*
§ 1003.6

Enforcement.

(a) Administrative enforcement. A violation of the Act or this part is subject
to administrative sanctions as provided
in section 305 of the Act, including the
imposition of civil money penalties,
where applicable. Compliance is enforced by the agencies listed in section
305 of the Act (12 U.S.C. 2804).
(b) Bona fide errors. (1) An error in
compiling or recording loan data is not
a violation of the act or this part if the
error was unintentional and occurred
despite the maintenance of procedures
reasonably adapted to avoid such errors.
(2) An incorrect entry for a census
tract number is deemed a bona fide
error, and is not a violation of the act
or this part, provided that the institution maintains procedures reasonably
adapted to avoid such errors.
(3) If an institution makes a goodfaith effort to record all data concerning covered transactions fully and
accurately within thirty calendar days
after the end of each calendar quarter,
and some data are nevertheless inaccurate or incomplete, the error or
omission is not a violation of the act or
this part provided that the institution
corrects or completes the information
prior to submitting the loan/application register to its regulatory agency.
EFFECTIVE DATE NOTE: At 80 FR 66313, Oct.
28, 2015, § 1003.6 was revised, effective Jan. 1,
2019. For the convenience of the user, the revised text is set forth as follows:

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§ 1003.6 Enforcement.
(a) Administrative enforcement. A violation
of the Act or this part is subject to administrative sanctions as provided in section 305
of the Act (12 U.S.C. 2804), including the imposition of civil money penalties, where applicable. Compliance is enforced by the agencies listed in section 305 of the Act.
(b) Bona fide errors. (1) An error in compiling or recording data for a covered loan or
application is not a violation of the Act or
this part if the error was unintentional and
occurred despite the maintenance of procedures reasonably adapted to avoid such an
error.
(2) An incorrect entry for a census tract
number is deemed a bona fide error, and is
not a violation of the Act or this part, provided that the financial institution maintains procedures reasonably adapted to avoid
such an error.
(c) Quarterly recording and reporting. (1) If a
financial institution makes a good-faith effort to record all data required to be recorded pursuant to § 1003.4(f) fully and accurately within 30 calendar days after the end
of each calendar quarter, and some data are
nevertheless inaccurate or incomplete, the
inaccuracy or omission is not a violation of
the Act or this part provided that the institution corrects or completes the data prior
to submitting its annual loan/application
register pursuant to § 1003.5(a)(1)(i).
(2) If a financial institution required to
comply with § 1003.5(a)(1)(ii) makes a goodfaith effort to report all data required to be
reported pursuant to § 1003.5(a)(1)(ii) fully
and accurately within 60 calendar days after
the end of each calendar quarter, and some
data are nevertheless inaccurate or incomplete, the inaccuracy or omission is not a
violation of the Act or this part provided
that the institution corrects or completes
the data prior to submitting its annual loan/
application
register
pursuant
to
§ 1003.5(a)(1)(i).

APPENDIX A TO PART 1003—FORM AND
INSTRUCTIONS FOR COMPLETION OF
HMDA
LOAN/APPLICATION
REGISTER

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PAPERWORK REDUCTION ACT NOTICE
This report is required by law (12 U.S.C.
2801–2810 and 12 CFR 1003). An agency may
not conduct or sponsor, and an organization
is not required to respond to, a collection of
information unless it displays a valid Office
of Management and Budget (OMB) Control
Number. See 12 CFR 1003.1(a) for the valid
OMB Control Numbers applicable to this information collection. Send comments regarding this burden estimate or any other
aspect of this collection of information, including suggestions for reducing the burden,
to the respective agencies and to OMB, Of-

fice of Information and Regulatory Affairs,
Paperwork Reduction Project, Washington,
DC 20503. Be sure to reference the applicable
agency and the OMB Control Number, as
found in 12 CFR 1003.1(a), when submitting
comments to OMB.
I. INSTRUCTIONS FOR COMPLETION OF LOAN/
APPLICATION REGISTER
A. Application or Loan Information
1. Application or Loan Number. Enter an
identifying loan number that can be used
later to retrieve the loan or application file.
It can be any number of your institution’s
choosing (not exceeding 25 characters). You
may use letters, numerals, or a combination
of both.
2. Date Application Received. Enter the
date the loan application was received by
your institution by month, day, and year. If
your institution normally records the date
shown on the application form you may use
that date instead. Enter ‘‘NA’’ for loans purchased by your institution. For paper submissions only, use numerals in the form MM/
DD/YYYY (for example, 01/15/2003). For submissions in electronic form, the proper format is YYYYMMDD.
3. Type of Loan or Application. Indicate
the type of loan or application by entering
the applicable Code from the following:
Code 1—Conventional (any loan other than
FHA, VA, FSA, or RHS loans)
Code 2—FHA-insured (Federal Housing Administration)
Code 3—VA-guaranteed (Veterans Administration)
Code 4—FSA/RHS-guaranteed (Farm Service
Agency or Rural Housing Service)
4. Property Type. Indicate the property
type by entering the applicable Code from
the following:
Code 1—One-to four-family dwelling (other
than manufactured housing)
Code 2—Manufactured housing
Code 3—Multifamily dwelling
a. Use Code 1, not Code 3, for loans on individual condominium or cooperative units.
b. If you cannot determine (despite reasonable efforts to find out) whether the loan or
application relates to a manufactured home,
use Code 1.
5. Purpose of Loan or Application. Indicate
the purpose of the loan or application by entering the applicable Code from the following:
Code 1—Home purchase
Code 2—Home improvement
Code 3—Refinancing
a. Do not report a refinancing if, under the
loan agreement, you were unconditionally
obligated to refinance the obligation, or you
were obligated to refinance the obligation

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Pt. 1003, App. A

subject to conditions within the borrower’s
control.
6. Owner Occupancy. Indicate whether the
property to which the loan or loan application relates is to be owner-occupied as a
principal residence by entering the applicable Code from the following:

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Code 1—Owner-occupied as a principal dwelling
Code 2—Not owner-occupied as a principal
dwelling
Code 3—Not applicable
a. For purchased loans, use Code 1 unless
the loan documents or application indicate
that the property will not be owner-occupied
as a principal residence.
b. Use Code 2 for second homes or vacation
homes, as well as for rental properties.
c. Use Code 3 if the property to which the
loan relates is a multifamily dwelling; is not
located in an MSA; or is located in an MSA
or an MD in which your institution has neither a home nor a branch office. Alternatively, at your institution’s option, you
may report the actual occupancy status,
using Code 1 or 2 as applicable.
7. Loan Amount. Enter the amount of the
loan or application. Do not report loans
below $500. Show the amount in thousands,
rounding to the nearest thousand (round $500
up to the next $1,000). For example, a loan for
$167,300 should be entered as 167 and one for
$15,500 as 16.
a. For a home purchase loan that you
originated, enter the principal amount of the
loan.
b. For a home purchase loan that you purchased, enter the unpaid principal balance of
the loan at the time of purchase.
c. For a home improvement loan, enter the
entire amount of the loan—including unpaid
finance charges if that is how such loans are
recorded on your books—even if only a part
of the proceeds is intended for home improvement.
d. If you opt to report home-equity lines of
credit, report only the portion of the line intended for home improvement or home purchase.
e. For a refinancing, indicate the total
amount of the refinancing, including both
the amount outstanding on the original loan
and any amount of ‘‘new money.’’
f. For a loan application that was denied or
withdrawn, enter the amount for which the
applicant applied.
8. Request for Preapproval of a Home Purchase Loan. Indicate whether the application
or loan involved a request for preapproval of
a home purchase loan by entering the applicable Code from the following:
Code 1—Preapproval requested
Code 2—Preapproval not requested
Code 3—Not applicable

a. Enter Code 2 if your institution has a
covered preapproval program but the applicant does not request a preapproval.
b. Enter Code 3 if your institution does not
have a preapproval program as defined in
§ 1003.2.
c. Enter Code 3 for applications or loans for
home improvement or refinancing, and for
purchased loans.
B. Action Taken
1. Type of Action. Indicate the type of action taken on the application or loan by
using one of the following Codes.
Code 1—Loan originated
Code 2—Application approved but not accepted
Code 3—Application denied
Code 4—Application withdrawn
Code 5—File closed for incompleteness
Code 6—Loan purchased by your institution
Code 7—Preapproval request denied
Code 8—Preapproval request approved but
not accepted (optional reporting)
a. Use Code 1 for a loan that is originated,
including one resulting from a request for
preapproval.
b. For a counteroffer (your offer to the applicant to make the loan on different terms
or in a different amount from the terms or
amount applied for), use Code 1 if the applicant accepts. Use Code 3 if the applicant
turns down the counteroffer or does not respond.
c. Use Code 2 when the application is approved but the applicant (or the loan broker
or correspondent) fails to respond to your
notification of approval or your commitment
letter within the specified time. Do not use
this Code for a preapproval request.
d. Use Code 4 only when the application is
expressly withdrawn by the applicant before
a credit decision is made. Do not use Code 4
if a request for preapproval is withdrawn;
preapproval requests that are withdrawn are
not reported under HMDA.
e. Use Code 5 if you sent a written notice
of incompleteness under § 1002.9(c)(2) of Regulation B (Equal Credit Opportunity) and the
applicant did not respond to your request for
additional information within the period of
time specified in your notice. Do not use this
Code for requests for preapproval that are incomplete; these preapproval requests are not
reported under HMDA.
2. Date of Action. For paper submissions
only, enter the date by month, day, and year,
using numerals in the form MM/DD/YYYY
(for example, 02/22/2003). For submissions in
electronic form, the proper format is
YYYYMMDD.
a. For loans originated, enter the settlement or closing date.
b. For loans purchased, enter the date of
purchase by your institution.

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12 CFR Ch. X (1–1–16 Edition)

c. For applications and preapprovals denied, applications and preapprovals approved
but not accepted by the applicant, and files
closed for incompleteness, enter the date
that the action was taken by your institution or the date the notice was sent to the
applicant.
d. For applications withdrawn, enter the
date you received the applicant’s express
withdrawal, or enter the date shown on the
notification from the applicant, in the case
of a written withdrawal.
e. For preapprovals that lead to a loan
origination, enter the date of the origination.

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C. Property Location
Except as otherwise provided, enter in
these columns the applicable Codes for the
MSA, or the MD if the MSA is divided into
MDs, state, county, and census tract to indicate the location of the property to which a
loan relates.
1. MSA or Metropolitan Division.—For
each loan or loan application, enter the
MSA, or the MD number if the MSA is divided into MDs. MSA and MD boundaries are
defined by OMB; use the boundaries that
were in effect on January 1 of the calendar
year for which you are reporting. A listing of
MSAs and MDs is available from the appropriate Federal agency to which you report
data or the FFIEC.
2. State and County. Use the Federal Information Processing Standard (FIPS) twodigit numerical code for the state and the
three-digit numerical code for the county.
These codes are available from the appropriate Federal agency to which you report
data or the FFIEC.
3. Census Tract.—Indicate the census tract
where the property is located. Notwithstanding paragraph 6, if the property is located in a county with a population of 30,000
or less in the 2000 Census, enter ‘‘NA’’ (even
if the population has increased above 30,000
since 2000), or enter the census tract number.
County population data can be obtained from
the U.S. Census Bureau.
4. Census Tract Number.—For the census
tract number, consult the resources provided
by the U.S. Census Bureau or the FFIEC.
5. Property Located Outside MSAs or Metropolitan Divisions.—For loans on property
located outside the MSAs and MDs in which
an institution has a home or branch office,
or for property located outside of any MSA
or MD, the institution may choose one of the
following two options. Under option one, the
institution may enter the MSA or MD, state
and county codes and the census tract number; and if the property is not located in any
MSA or MD, the institution may enter ‘‘NA’’
in the MSA or MD column. (Codes exist for
all states and counties and numbers exist for
all census tracts.) Under this first option,
the codes and census tract number must ac-

curately identify the property location.
Under the second option, which is not available if paragraph 6 applies, an institution
may enter ‘‘NA’’ in all four columns, whether or not the codes or numbers exist for the
property location.
6. Data Reporting for Banks and Savings
Associations Required To Report Data on
Small Business, Small Farm, and Community Development Lending Under the CRA
Regulations.—If your institution is a bank
or savings association that is required to report data under the regulations that implement the CRA, you must enter the property
location on your HMDA/LAR even if the
property is outside the MSAs or MDs in
which you have a home or branch office, or
is not located in any MSA.
7. Requests for Preapproval. Notwithstanding paragraphs 1 through 6, if the application is a request for preapproval that is denied or that is approved but not accepted by
the applicant, you may enter ‘‘NA’’ in all
four columns.
D. Applicant Information—Ethnicity, Race, Sex,
and Income
Appendix B contains instructions for the
collection of data on ethnicity, race, and sex,
and also contains a sample form for data collection.
1. Applicability. Report this information
for loans that you originate as well as for applications that do not result in an origination.
a. You need not collect or report this information for loans purchased. If you choose
not to report this information, use the Codes
for ‘‘not applicable.’’
b. If the borrower or applicant is not a natural person (a corporation or partnership, for
example), use the Codes for ‘‘not applicable.’’
2. Mail, Internet, or Telephone Applications.—All loan applications, including applications taken by mail, internet, or telephone must use a collection form similar to
that shown in appendix B regarding ethnicity, race, and sex. For applications taken
by telephone, the information in the collection form must be stated orally by the lender, except for information that pertains
uniquely to applications taken in writing. If
the applicant does not provide these data in
an application taken by mail or telephone or
on the internet, enter the Code for ‘‘information not provided by applicant in mail,
internet, or telephone application’’ specified
in paragraphs I.D.3., 4., and 5. of this appendix. (See appendix B for complete information on the collection of these data in mail,
Internet, or telephone applications.)
3. Ethnicity of Borrower or Applicant. Use
the following Codes to indicate the ethnicity
of the applicant or borrower under column
‘‘A’’ and of any co-applicant or co-borrower
under column ‘‘CA.’’

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Bur. of Consumer Financial Protection

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Code 1—Hispanic or Latino
Code 2—Not Hispanic or Latino
Code 3—Information not provided by applicant in mail, internet, or telephone application
Code 4—Not applicable
Code 5—No co-applicant
4. Race of Borrower or Applicant. Use the
following Codes to indicate the race of the
applicant or borrower under column ‘‘A’’ and
of any co-applicant or co-borrower under column ‘‘CA.’’
Code 1—American Indian or Alaska Native
Code 2—Asian
Code 3—Black or African American
Code 4—Native Hawaiian or Other Pacific Islander
Code 5—White
Code 6—Information not provided by applicant in mail, internet, or telephone application
Code 7—Not applicable
Code 8—No co-applicant
a. If an applicant selects more than one racial designation, enter all Codes corresponding to the applicant’s selections.
b. Use Code 4 (for ethnicity) and Code 7 (for
race) for ‘‘not applicable’’ only when the applicant or co-applicant is not a natural person or when applicant or co-applicant information is unavailable because the loan has
been purchased by your institution.
c. If there is more than one co-applicant,
provide the required information only for the
first co-applicant listed on the application
form. If there are no co-applicants or co-borrowers, use Code 5 (for ethnicity) and Code 8
(for race) for ‘‘no co-applicant’’ in the co-applicant column.
5. Sex of Borrower or Applicant. Use the
following Codes to indicate the sex of the applicant or borrower under column ‘‘A’’ and of
any co-applicant or co-borrower under column ‘‘CA.’’
Code 1—Male
Code 2—Female
Code 3—Information not provided by applicant in mail, internet, or telephone application
Code 4—Not applicable
Code 5—No co-applicant or co-borrower
a. Use Code 4 for ‘‘not applicable’’ only
when the applicant or co-applicant is not a
natural person or when applicant or co-applicant information is unavailable because the
loan has been purchased by your institution.
b. If there is more than one co-applicant,
provide the required information only for the
first co-applicant listed on the application
form. If there are no co-applicants or co-borrowers, use Code 5 for ‘‘no co-applicant’’ in
the co-applicant column.
6. Income. Enter the gross annual income
that your institution relied on in making the
credit decision.

a. Round all dollar amounts to the nearest
thousand (round $500 up to the next $1,000),
and show in thousands. For example, report
$35,500 as 36.
b. For loans on multifamily dwellings,
enter ‘‘NA.’’
c. If no income information is asked for or
relied on in the credit decision, enter ‘‘NA.’’
d. If the applicant or co-applicant is not a
natural person or the applicant or co-applicant information is unavailable because the
loan has been purchased by your institution,
enter ‘‘NA.’’
E. Type of Purchaser
Enter the applicable Code to indicate
whether a loan that your institution originated or purchased was then sold to a secondary market entity within the same calendar year:
Code 0—Loan was not originated or was not
sold in calendar year covered by register
Code 1—Fannie Mae
Code 2—Ginnie Mae
Code 3—Freddie Mac
Code 4—Farmer Mac
Code 5—Private securitization
Code 6—Commercial bank, savings bank, or
savings association
Code 7—Life insurance company, credit
union, mortgage bank, or finance company
Code 8—Affiliate institution
Code 9—Other type of purchaser
a. Use Code 0 for applications that were denied, withdrawn, or approved but not accepted by the applicant; and for files closed for
incompleteness.
b. Use Code 0 if you originated or purchased a loan and did not sell it during that
same calendar year. If you sell the loan in a
succeeding year, you need not report the
sale.
c. Use Code 2 if you conditionally assign a
loan to Ginnie Mae in connection with a
mortgage-backed security transaction.
d. Use Code 8 for loans sold to an institution affiliated with you, such as your subsidiary or a subsidiary of your parent corporation.
F. Reasons for Denial
1. You may report the reason for denial,
and you may indicate up to three reasons,
using the following Codes. Leave this column
blank if the ‘‘action taken’’ on the application is not a denial. For example, do not
complete this column if the application was
withdrawn or the file was closed for incompleteness.
Code 1—Debt-to-income ratio
Code 2—Employment history
Code 3—Credit history
Code 4—Collateral
Code 5—Insufficient cash (downpayment,
closing costs)
Code 6—Unverifiable information

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12 CFR Ch. X (1–1–16 Edition)

Code 7—Credit application incomplete
Code 8—Mortgage insurance denied
Code 9—Other
2. If your institution uses the model form
for adverse action contained in appendix C to
Regulation B (Form C–1, Sample Notification Form), use the foregoing Codes as follows:
a. Code 1 for: Income insufficient for
amount of credit requested, and Excessive
obligations in relation to income.
b. Code 2 for: Temporary or irregular employment, and Length of employment.
c. Code 3 for: Insufficient number of credit
references provided; Unacceptable type of
credit references provided; No credit file;
Limited credit experience; Poor credit performance with us; Delinquent past or present
credit obligations with others; Garnishment,
attachment, foreclosure, repossession, collection action, or judgment; and Bankruptcy.
d. Code 4 for: Value or type of collateral
not sufficient.
e. Code 6 for: Unable to verify credit references; Unable to verify employment; Unable to verify income; and Unable to verify
residence.
f. Code 7 for: Credit application incomplete.
g. Code 9 for: Length of residence; Temporary residence; and Other reasons specified
on notice.

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G. Pricing-Related Data
1. Rate Spread. a. For a home-purchase
loan, a refinancing, or a dwelling-secured
home improvement loan that you originated,
report the spread between the annual percentage rate (APR) and the average prime
offer rate for a comparable transaction if 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 whether the rate spread meets
this threshold, use the average prime offer
rate in effect for the type of transaction as
of the date the interest rate was set, and use
the APR for the loan, as calculated and disclosed to the consumer under §§ 1026.6 or
1026.18, as applicable, of Regulation Z (12
CFR part 1026). Current and historic average
prime offer rates are set forth in the tables
published on the FFIEC’s Web site (http://
www.ffiec.gov/hmda) entitled ‘‘Average Prime
Offer Rates-Fixed’’ and ‘‘Average Prime
Offer Rates-Adjustable.’’ Use the most recently available average prime offer rate.
‘‘Most recently available’’ means the average prime offer rate set forth in the applicable table with the most recent effective date
as of the date the interest rate was set. Do
not use an average prime offer rate before its
effective date.
b. If the loan is not subject to Regulation
Z, or is a home improvement loan that is not

dwelling-secured, or is a loan that you purchased, enter ‘‘NA.’’
c. Enter ‘‘NA’’ in the case of an application
that does not result in a loan origination.
d. Enter the rate spread to two decimal
places, and use a leading zero. For example,
enter 03.29. If the difference between the
APR and the average prime offer rate is a
figure with more than two decimal places,
round the figure or truncate the digits beyond two decimal places.
e. If the difference between the APR and
the average prime offer rate is less than 1.5
percentage points for a first-lien loan and
less than 3.5 percentage points for a subordinate-lien loan, enter ‘‘NA.’’
2. Date the interest rate was set. The relevant date to use to determine the average
prime offer rate for a comparable transaction is the date on which the loan’s interest rate was set by the financial institution
for the final time before closing. If an interest rate is set pursuant to a ‘‘lock-in’’ agreement between the lender and the borrower,
then the date on which the agreement fixes
the interest rate is the date the rate was set.
If a rate is re-set after a lock-in agreement
is executed (for example, because the borrower exercises a float-down option or the
agreement expires), then the relevant date is
the date the rate is re-set for the final time
before closing. If no lock-in agreement is executed, then the relevant date is the date on
which the institution sets the rate for the
final time before closing.
3. HOEPA Status. a. For a loan that you
originated or purchased that is subject to
the Home Ownership and Equity Protection
Act of 1994 (HOEPA), as implemented in Regulation Z (12 CFR 1026.32), because the APR
or the points and fees on the loan exceed the
HOEPA triggers, enter Code 1.
b. Enter Code 2 in all other cases. For example, enter Code 2 for a loan that you originated or purchased that is not subject to the
requirements of HOEPA for any reason; also
enter Code 2 in the case of an application
that does not result in a loan origination.
H. Lien Status
Use the following Codes for loans that you
originate and for applications that do not result in an origination:
Code
Code
Code
Code

1—Secured by a first lien.
2—Secured by a subordinate lien.
3—Not secured by a lien.
4—Not applicable (purchased loan).

a. Use Codes 1 through 3 for loans that you
originate, as well as for applications that do
not result in an origination (applications
that are approved but not accepted, denied,
withdrawn, or closed for incompleteness).
b. Use Code 4 for loans that you purchase.

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II. APPROPRIATE FEDERAL AGENCIES FOR
HMDA REPORTING

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A. You are strongly encouraged to submit
your loan/application register via email. If
you elect to use this method of transmission
and the appropriate Federal agency for your
institution is the Bureau of Consumer Financial Protection, the Office of the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, or the National Credit
Union Administration, then you should submit your institution’s files to the email address dedicated to that purpose by the Bureau, which can be found on the Web site of
the FFIEC. If one of the foregoing agencies is
the appropriate Federal agency for your institution and you elect to submit your data

by regular mail, then use the following address: HMDA, Federal Reserve Board, Attention: HMDA Processing, (insert name of the
appropriate Federal agency for your institution), 20th & Constitution Ave NW., MS N502,
Washington, DC 20551–0001.
B. If the Federal Reserve System (but not
the Bureau of Consumer Financial Protection) is the appropriate Federal agency for
your institution, you should use the email or
regular mail address of your district bank indicated on the Web site of the FFIEC. If the
Department of Housing and Urban Development is the appropriate Federal agency for
your institution, then you should use the
email or regular mail address indicated on
the Web site of the FFIEC.

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Pt. 1003, App. A

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Bur. of Consumer Financial Protection

12 CFR Ch. X (1–1–16 Edition)

EFFECTIVE DATE NOTE 1: At 80 FR 66313,
Oct. 28, 2015, appendix A to part 1003 was
amended by adding a new subheading and
paragraph 1 under that subheading, revising

paragraphs II.A and B, and adding paragraph
II.C , effective Jan. 1, 2018. For the convenience of the user, the added and revised text
is set forth as follows:

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Pt. 1003, App. A, Nt.

Bur. of Consumer Financial Protection

Pt. 1003, App. B

APPENDIX A TO PART 1003—FORM AND
INSTRUCTIONS FOR COMPLETION OF
HMDA
LOAN/APPLICATION
REG-

APPENDIX B TO PART 1003—FORM AND
INSTRUCTIONS FOR DATA COLLECTION
ON ETHNICITY, RACE, AND SEX

ISTER

I. INSTRUCTIONS ON COLLECTION OF DATA ON
ETHNICITY, RACE, AND SEX

Paperwork Reduction Act Notice

You may list questions regarding the ethnicity, race, and sex of the applicant on your
loan application form, or on a separate form
that refers to the application. (See the sample form below for model language.)

Transition Requirements for Data Collected
in 2017 and Submitted in 2018
1. The instructions for completion of the
loan/application register in part I of this appendix applies to data collected during the
2017 calendar year and reported in 2018. Part
I of this appendix does not apply to data collected pursuant to the amendments to Regulation C effective January 1, 2018.

II. Appropriate Federal Agencies for HMDA
Reporting
A. A financial institution shall submit its
loan/application register in electronic format to the appropriate Federal agency at the
address identified by such agency. The appropriate Federal agency for a financial institution is determined pursuant to section
304(h)(2) of the Home Mortgage Disclosure
Act (12 U.S.C. 2803(h)(2)) or, with respect to a
financial institution subject to the Bureau’s
supervisory authority under section 1025(a)
of the Consumer Financial Protection Act of
2010 (12 U.S.C. 5515(a)), is the Bureau.
B. Procedures for the submission of the
loan/application register are available at
www.consumerfinance.gov/hmda.
C. An authorized representative of the financial institution with knowledge of the
data submitted shall certify to the accuracy
and completeness of the data submitted.

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EFFECTIVE DATE NOTE 2: At 80 FR 66314,
Oct. 28, 2015, appendix A to part 1003 was removed and reserved, effective Jan. 1, 2019.

II. PROCEDURES
A. You must ask the applicant for this information (but you cannot require the applicant to provide it) whether the application is
taken in person, by mail or telephone, or on
the internet. For applications taken by telephone, the information in the collection
form must be stated orally by the lender, except for that information which pertains
uniquely to applications taken in writing.
B. Inform the applicant that the Federal
government requests this information in
order to monitor compliance with Federal
statutes that prohibit lenders from discriminating against applicants on these bases. Inform the applicant that if the information is
not provided where the application is taken
in person, you are required to note the data
on the basis of visual observation or surname.
C. You must offer the applicant the option
of selecting one or more racial designations.
D. If the applicant chooses not to provide
the information for an application taken in
person, note this fact on the form and then
note the applicant’s ethnicity, race, and sex
on the basis of visual observation and surname, to the extent possible.
E. If the applicant declines to answer these
questions or fails to provide the information
on an application taken by mail or telephone
or on the internet, the data need not be provided. In such a case, indicate that the application was received by mail, telephone, or
Internet, if it is not otherwise evident on the
face of the application.

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Pt. 1003, App. B, Nt.

12 CFR Ch. X (1–1–16 Edition)

[76 FR 78468, Dec. 19, 2011, as amended at 77
FR 8722, Feb. 15, 2012]

You may list questions regarding the ethnicity, race, and sex of the applicant on your
loan application form, or on a separate form
that refers to the application. (See the sample data collection form below for model language.)

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EFFECTIVE DATE NOTE: At 80 FR 66314, Oct.
28, 2015, appendix B to part 1003 was revised,
effective Jan. 1, 2018. For the convenience of
the user, the revised text is set forth as follows:

APPENDIX B TO PART 1003—FORM AND
INSTRUCTIONS FOR DATA COLLECTION
ON ETHNICITY, RACE, AND SEX

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Bur. of Consumer Financial Protection

Pt. 1003, App. B, Nt.

1. You must ask the applicant for this information (but you cannot require the applicant to provide it) whether the application is
taken in person, by mail or telephone, or on
the internet. For applications taken by telephone, you must state the information in the
collection form orally, except for that information which pertains uniquely to applications taken in writing, for example, the
italicized language in the sample data collection form.
2. Inform the applicant that Federal law
requires this information to be collected in
order to protect consumers and to monitor
compliance with Federal statutes that prohibit discrimination against applicants on
these bases. Inform the applicant that if the
information is not provided where the application is taken in person, you are required to
note the information on the basis of visual
observation or surname.
3. If you accept an application through
electronic media with a video component,
you must treat the application as taken in
person. If you accept an application through
electronic media without a video component
(for example, facsimile), you must treat the
application as accepted by mail.
4. For purposes of § 1003.4(a)(10)(i), if a covered loan or application includes a guarantor, you do not report the guarantor’s ethnicity, race, and sex.
5. If there are no co-applicants, you must
report that there is no co-applicant. If there
is more than one co-applicant, you must provide the ethnicity, race, and sex only for the
first co-applicant listed on the collection
form. A co-applicant may provide an absent
co-applicant’s ethnicity, race, and sex on behalf of the absent co-applicant. If the information is not provided for an absent co-applicant, you must report ‘‘information not
provided by applicant in mail, internet, or
telephone application’’ for the absent co-applicant.
6. When you purchase a covered loan and
you choose not to report the applicant’s or
co-applicant’s ethnicity, race, and sex, you
must report that the requirement is not applicable.
7. You must report that the requirement to
report the applicant’s or co-applicant’s ethnicity, race, and sex is not applicable when
the applicant or co-applicant is not a natural
person (for example, a corporation, partnership, or trust). For example, for a transaction involving a trust, you must report
that the requirement to report the applicant’s ethnicity, race, and sex is not applicable if the trust is the applicant. On the other
hand, if the applicant is a natural person,
and is the beneficiary of a trust, you must
report the applicant’s ethnicity, race, and
sex.
8. You must report the ethnicity, race, and
sex of an applicant as provided by the applicant. For example, if an applicant selects the

‘‘Mexican’’ box the institution reports
‘‘Mexican’’ for the ethnicity of the applicant.
If an applicant selects the ‘‘Asian’’ box the
institution reports ‘‘Asian’’ for the race of
the applicant. Only an applicant may selfidentify as being of a particular Hispanic or
Latino subcategory (Mexican, Puerto Rican,
Cuban, Other Hispanic or Latino) or of a particular Asian subcategory (Asian Indian,
Chinese, Filipino, Japanese, Korean, Vietnamese, Other Asian) or of a particular Native Hawaiian or Other Pacific Islander subcategory (Native Hawaiian, Guamanian or
Chamorro, Samoan, Other Pacific Islander)
or of a particular American Indian or Alaska
Native enrolled or principal tribe.
9. You must offer the applicant the option
of selecting more than one ethnicity or race.
If an applicant selects more than one ethnicity or race, you must report each selected
designation, subject to the limits described
below.
i. Ethnicity—Aggregate categories and subcategories. There are two aggregate ethnicity
categories: Hispanic or Latino; and Not Hispanic or Latino. If an applicant selects Hispanic or Latino, the applicant may also select up to four ethnicity subcategories:
Mexican; Puerto Rican; Cuban; and Other
Hispanic or Latino. You must report each
aggregate ethnicity category and each ethnicity subcategory selected by the applicant.
ii. Ethnicity—Other subcategories. If an applicant selects the Other Hispanic or Latino
ethnicity subcategory, the applicant may
also provide a particular Hispanic or Latino
ethnicity not listed in the standard subcategories. In such a case, you must report both
the selection of Other Hispanic or Latino and
the additional information provided by the
applicant.
iii. Race—Aggregate categories and subcategories. There are five aggregate race categories: American Indian or Alaska Native;
Asian; Black or African American; Native
Hawaiian or Other Pacific Islander; and
White. The Asian and the Native Hawaiian
or Other Pacific Islander aggregate categories have seven and four subcategories,
respectively. The Asian race subcategories
are: Asian Indian; Chinese, Filipino; Japanese; Korean; Vietnamese; and Other Asian.
The Native Hawaiian or Other Pacific Islander race subcategories are: Native Hawaiian; Guamanian or Chamorro; Samoan; and
Other Pacific Islander. You must report
every aggregate race category selected by
the applicant. If the applicant also selects
one or more race subcategories, you must report each race subcategory selected by the
applicant, except that you must not report
more than a total of five aggregate race categories and race subcategories combined.
For example, if the applicant selects all five
aggregate race categories and also selects
some race subcategories, you report only the
five aggregate race categories. On the other

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hand, if the applicant selects the White,
Asian, and Native Hawaiian or Other Pacific
Islander aggregate race categories, and the
applicant also selects the Korean, Vietnamese, and Samoan race subcategories, you
must report White, Asian, Native Hawaiian
or Other Pacific Islander, and any two, at
your option, of the three race subcategories
selected by the applicant. In this example,
you must report White, Asian, and Native
Hawaiian or Other Pacific Islander, and in
addition you must report (at your option) either Korean and Vietnamese, Korean and Samoan, or Vietnamese and Samoan. To determine how to report an Other race subcategory for purposes of the five-race maximum, see paragraph 9.iv below.
iv. Race—Other subcategories. If an applicant selects the Other Asian race subcategory or the Other Pacific Islander race
subcategory, the applicant may also provide
a particular Other Asian or Other Pacific Islander race not listed in the standard subcategories. In either such case, you must report
both the selection of Other Asian or Other
Pacific Islander, as applicable, and the additional information provided by the applicant, subject to the five-race maximum. In
all such cases where the applicant has selected an Other race subcategory and also
provided additional information, for purposes of the maximum of five reportable race
categories and race subcategories combined
set forth above, the Other race subcategory
and additional information provided by the
applicant together constitute only one selection. Thus, using the same facts in the example offered in paragraph 9.iii above, if the applicant also selected Other Asian and entered
‘‘Thai’’ in the space provided, Other Asian
and Thai are considered one selection. You
must report any two (at your option) of the
four race subcategories selected by the applicant, Korean, Vietnamese, Other Asian-Thai,
and Samoan, in addition to the three aggregate race categories selected by the applicant.
10. If the applicant chooses not to provide
the information for an application taken in
person, note this fact on the collection form
and then collect the applicant’s ethnicity,
race, and sex on the basis of visual observation or surname. You must report whether

the applicant’s ethnicity, race, and sex was
collected on the basis of visual observation
or surname. When you collect an applicant’s
ethnicity, race, and sex on the basis of visual
observation or surname, you must select
from the following aggregate categories:
Ethnicity (Hispanic or Latino; not Hispanic
or Latino); race (American Indian or Alaska
Native; Asian; Black or African American;
Native Hawaiian or Other Pacific Islander;
White); sex (male; female).
11. If the applicant declines to answer
these questions by checking the ‘‘I do not
wish to provide this information’’ box on an
application that is taken by mail or on the
internet, or declines to provide this information by stating orally that he or she does not
wish to provide this information on an application that is taken by telephone, you must
report ‘‘information not provided by applicant in mail, internet, or telephone application.’’
12. If the applicant begins an application
by mail, internet, or telephone, and does not
provide the requested information on the application but does not check or select the ‘‘I
do not wish to provide this information’’ box
on the application, and the applicant meets
in person with you to complete the application, you must request the applicant’s ethnicity, race, and sex. If the applicant does
not provide the requested information during
the in-person meeting, you must collect the
information on the basis of visual observation or surname. If the meeting occurs after
the application process is complete, for example, at closing or account opening, you
are not required to obtain the applicant’s
ethnicity, race, and sex.
13. When an applicant provides the requested information for some but not all
fields, you report the information that was
provided by the applicant, whether partial or
complete. If an applicant provides partial or
complete information on ethnicity, race, and
sex and also checks the ‘‘I do not wish to
provide this information’’ box on an application that is taken by mail or on the internet,
or makes that selection when applying by
telephone, you must report the information
on ethnicity, race, and sex that was provided
by the applicant.

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Bur. of Consumer Financial Protection

Pt. 1003, App. C

12 CFR Ch. X (1–1–16 Edition)

APPENDIX C TO PART 1003—PROCEDURES
FOR GENERATING A CHECK DIGIT AND
VALIDATING A ULI
The check digit for the Universal Loan
Identifier (ULI) pursuant to § 1003.4(a)(1)(i)(C)
is calculated using the ISO/IEC 7064, MOD 97–
10 as it appears on the International Standard ISO/IEC 7064:2003, which is published by
the International Organization for Standardization (ISO).
©ISO. This material is reproduced from
ISO/IEC 7064:2003 with permission of the
American National Standards Institute
(ANSI) on behalf of ISO. All rights reserved.
GENERATING A CHECK DIGIT
Step 1: Starting with the leftmost character in the string that consists of the combination of the Legal Entity Identifier (LEI)
pursuant to § 1003.4(a)(1)(i)(A) and the additional characters identifying the covered
loan
or
application
pursuant
to
§ 1003.4(a)(1)(i)(B), replace each alphabetic
character with numbers in accordance with
Table I below to obtain all numeric values in
the string.
TABLE I—ALPHABETIC TO NUMERIC
CONVERSION TABLE
The alphabetic characters are not case-sensitive and each letter, whether it is capitalized or in lower-case, is equal to the same
value as each letter illustrates in the conversion table. For example, A and a are each
equal to 10.

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A = 10
B = 11
C = 12
D = 13
E = 14
F = 15
G = 16

H = 17
I = 18
J = 19
K = 20
L = 21
M = 22
N = 23

O = 24
P = 25
Q = 26
R = 27
S = 28
T = 29
U = 30

V = 31
W = 32
X = 33
Y = 34
Z = 35

EXAMPLE
For example, assume the LEI for a financial institution is 10Bx939c5543TqA1144M and
the financial institution assigned the following string of characters to identify the
covered loan: 999143X. The combined string
of
characters
is
10Bx939c5543TqA
1144M999143X.
Step 1: Starting with the leftmost character in the combined string of characters,
replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string. The result is 10113393912554329261011442299914333.
Step 2: Append two zeros to the rightmost
positions in the combined string. The result
is 1011339391255432926101144229991433300.
Step 3: Apply the mathematical function
mod=(n,97) where n= the number obtained in
step 2 above and 97 is the divisor. The result
is 60.
Alternatively, to calculate without using
the modulus operator, divide the numbers in
step 2 above by 97. The result is 104261
7929129312294946332267952920.618556701030928.
Truncate the remainder to three digits,
which is .618, and multiply it by .97. The result is 59.946. Round this result to the nearest whole number, which is 60.
Step 4: Subtract the result in step 3 from
98. The result is 38.
Step 5: The two digits in the result from
step 4 is the check digit. Append the check
digit to the rightmost positions in the combined string of characters that consists of
the LEI and the string of characters assigned
by the financial institution to identify the
covered loan to obtain the ULI. In this example, the ULI would be 10Bx939c5543TqA11
44M999143X38.
VALIDATING A ULI

Step 2: After converting the combined
string of characters to all numeric values,
append two zeros to the rightmost positions.
Step 3: Apply the mathematical function
mod=(n,97) where n= the number obtained in
step 2 above and 97 is the divisor.
Alternatively, to calculate without using
the modulus operator, divide the numbers in
step 2 above by 97. Truncate the remainder
to three digits and multiply it by .97. Round
the result to the nearest whole number.
Step 4: Subtract the result in step 3 from
98. If the result is one digit, add a leading 0
to make it two digits.
Step 5: The two digits in the result from
step 4 is the check digit. Append the resulting check digit to the rightmost position in
the combined string of characters described
in step 1 above to generate the ULI.

To determine whether the ULI contains a
transcription error using the check digit calculation, the procedures are described below.
Step 1: Starting with the leftmost character in the ULI, replace each alphabetic
character with numbers in accordance with
Table I above to obtain all numeric values in
the string.
Step 2: Apply the mathematical function
mod=(n,97) where n=the number obtained in
step 1 above and 97 is the divisor.
Step 3: If the result is 1, the ULI does not
contain transcription errors.
EXAMPLE
For example, the ULI assigned to a covered
loan is 10Bx939c5543TqA1144M999143X38.
Step 1: Starting with the leftmost character in the ULI, replace each alphabetic
character with numbers in accordance with
Table I above to obtain all numeric values in
the string. The result is 1011339391255432926
101144229991433338.

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Pt. 1003, Supp. I

Step 2: Apply the mathematical function
mod=(n,97) where n is the number obtained
in step 1 above and 97 is the divisor.
Step 3: The result is 1. The ULI does not
contain transcription errors.
EFFECTIVE DATE NOTE: At 80 FR 66316, Oct.
28, 2015, appendix C to part 1003 was added,
effective Jan. 1, 2018.

SUPPLEMENT I TO PART 1003—STAFF
COMMENTARY
INTRODUCTION
1. Status. The commentary in this supplement is the vehicle by which the Bureau of
Consumer Financial Protection issues formal staff interpretations of Regulation C (12
CFR part 1003).

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Section 1003.1—Authority, Purpose, and Scope
1(c) Scope.
1. General. The comments in this section
address issues affecting coverage of institutions and exemptions from coverage.
2. The broker rule and the meaning of
‘‘broker’’ and ‘‘investor.’’ For the purposes of
the guidance given in this commentary, an
institution that takes and processes a loan
application and arranges for another institution to acquire the loan at or after closing is
acting as a ‘‘broker,’’ and an institution that
acquires a loan from a broker at or after
closing is acting as an ‘‘investor.’’ (The
terms used in this commentary may have
different meanings in certain parts of the
mortgage lending industry, and other terms
may be used in place of these terms, for example in the Federal Housing Administration mortgage insurance programs.) Depending on the facts, a broker may or may not
make a credit decision on an application
(and thus it may or may not have reporting
responsibilities). If the broker makes a credit decision, it reports that decision; if it does
not make a credit decision, it does not report. If an investor reviews an application
and makes a credit decision prior to closing,
the investor reports that decision. If the investor does not review the application prior
to closing, it reports only the loans that it
purchases; it does not report the loans it
does not purchase. An institution that
makes a credit decision on an application
prior to closing reports that decision regardless of whose name the loan closes in.
3. Illustrations of the broker rule. Assume
that, prior to closing, four investors receive
the same application from a broker; two
deny it, one approves it, and one approves it
and acquires the loan. In these circumstances, the first two report denials, the
third reports the transaction as approved but
not accepted, and the fourth reports an origination (whether the loan closes in the name
of the broker or the investor). Alternatively,
assume that the broker denies a loan before

sending it to an investor; in this situation,
the broker reports a denial.
4. Broker’s use of investor’s underwriting criteria. If a broker makes a credit decision
based on underwriting criteria set by an investor, but without the investor’s review
prior to closing, the broker has made the
credit decision. The broker reports as an
origination a loan that it approves and
closes, and reports as a denial an application
that it turns down (either because the application does not meet the investor’s underwriting guidelines or for some other reason).
The investor reports as purchases only those
loans it purchases.
5. Insurance and other criteria. If an institution evaluates an application based on the
criteria or actions of a third party other
than an investor (such as a government or
private insurer or guarantor), the institution
must report the action taken on the application (loan originated, approved but not accepted, or denied, for example).
6. Credit decision of agent is decision of principal. If an institution approves loans
through the actions of an agent, the institution must report the action taken on the application (loan originated, approved but not
accepted, or denied, for example). State law
determines whether one party is the agent of
another.
7. Affiliate bank underwriting (250.250 review). If an institution makes an independent
evaluation of the creditworthiness of an applicant (for example, as part of a preclosing
review by an affiliate bank under 12 CFR
250.250, a regulation of the Board of Governors of the Federal Reserve System that
interprets section 23A of the Federal Reserve
Act), the institution is making a credit decision. If the institution then acquires the
loan, it reports the loan as an origination
whether the loan closes in the name of the
institution or its affiliate. An institution
that does not acquire the loan but takes
some other action reports that action.
8. Participation loan. An institution that
originates a loan and then sells partial interests to other institutions reports the loan as
an origination. An institution that acquires
only a partial interest in such a loan does
not report the transaction even if it has participated in the underwriting and origination
of the loan.
9. Assumptions. An assumption occurs when
an institution enters into a written agreement accepting a new borrower as the obligor on an existing obligation. An institution
reports an assumption (or an application for
an assumption) as a home purchase loan in
the amount of the outstanding principal. If a
transaction does not involve a written agreement between a new borrower and the institution, it is not an assumption for HMDA
purposes and is not reported.

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12 CFR Ch. X (1–1–16 Edition)

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Section 1003.2—Definitions
Application.
1. Consistency With Regulation B. Bureau interpretations that appear in the official staff
commentary to Regulation B (Equal Credit
Opportunity, 12 CFR part 1002, Supplement I)
are generally applicable to the definition of
an application under Regulation C. However,
under Regulation C the definition of an application does not include prequalification
requests.
2. Prequalification. A prequalification request is a request by a prospective loan applicant
(other
than
a
request
for
preapproval) for a preliminary determination on whether the prospective applicant
would likely qualify for credit under an institution’s standards, or for a determination
on the amount of credit for which the prospective applicant would likely qualify.
Some institutions evaluate prequalification
requests through a procedure that is separate from the institution’s normal loan application process; others use the same process. In either case, Regulation C does not require
an
institution
to
report
prequalification requests on the HMDA/LAR,
even though these requests may constitute
applications under Regulation B for purposes
of adverse action notices.
3. Requests for preapproval. To be a covered
preapproval program, the written commitment issued under the program must result
from a full review of the creditworthiness of
the applicant, including such verification of
income, resources and other matters as is
typically done by the institution as part of
its normal credit evaluation program. In addition to conditions involving the identification of a suitable property and verification
that no material change has occurred in the
applicant’s financial condition or creditworthiness, the written commitment may be
subject only to other conditions (unrelated
to the financial condition or creditworthiness of the applicant) that the lender ordinarily attaches to a traditional home mortgage application approval. These conditions
are limited to conditions such as requiring
an acceptable title insurance binder or a certificate indicating clear termite inspection,
and, in the case where the applicant plans to
use the proceeds from the sale of the applicant’s present home to purchase a new home,
a settlement statement showing adequate
proceeds from the sale of the present home.
Branch office.
1. Credit union. For purposes of Regulation
C, a ‘‘branch’’ of a credit union is any office
where member accounts are established or
loans are made, whether or not the office has
been approved as a branch by a Federal or
state agency. (See 12 U.S.C. 1752.)
2. Depository institution. A branch of a depository institution does not include a loanproduction office, the office of an affiliate, or

the office of a third party such as a loan
broker. (But see appendix A, paragraph I.C.6,
which requires certain depository institutions to report property location even for
properties located outside those MSAs or
Metropolitan Divisions in which the institution has a home or branch office.)
3. Nondepository institution. For a nondepository institution, ‘‘branch office’’ does
not include the office of an affiliate or other
third party such as a loan broker. (But note
that certain nondepository institutions must
report property location even in MSAs or
Metropolitan Divisions where they do not
have a physical location.)
Dwelling.
1. Coverage. 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. A dwelling also includes a multifamily structure such as an apartment
building.
2. Exclusions. Recreational vehicles such as
boats or campers are not dwellings for purposes of HMDA. Also excluded are transitory
residences such as hotels, hospitals, and college dormitories, whose occupants have principal residences elsewhere.
Financial institution.
1. General. An institution that met the test
for coverage under HMDA in year 1, and then
ceases to meet the test (for example, because
its assets fall below the threshold on December 31 of year 2) stops collecting HMDA data
beginning with year 3. Similarly, an institution that did not meet the coverage test for
a given year, and then meets the test in the
succeeding year, begins collecting HMDA
data in the calendar year following the year
in which it meets the test for coverage. For
example, a for-profit mortgage lending institution (other than a bank, savings association, or credit union) that, in year 1, falls
below the thresholds specified in the definition of Financial institution in § 1003.2, but
meets one of them in year 2, need not collect
data in year 2, but begins collecting data in
year 3.
2. Adjustment of exemption threshold for
banks, savings associations, and credit unions.
For data collection in 2016, the asset-size exemption threshold is $44 million. Banks, savings associations, and credit unions with assets at or below $44 million as of December
31, 2015, are exempt from collecting data for
2016.
3. Coverage after a merger. Several scenarios
of data-collection responsibilities for the calendar year of a merger are described below.
Under all the scenarios, if the merger results
in a covered institution, that institution
must begin data collection January 1 of the
following calendar year.
i. Two institutions are not covered by Regulation C because of asset size. The institutions merge. No data collection is required

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for the year of the merger (even if the merger results in a covered institution).
ii. A covered institution and an exempt institution merge. The covered institution is
the surviving institution. For the year of the
merger, data collection is required for the
covered institution’s transactions. Data collection is optional for transactions handled
in offices of the previously exempt institution.
iii. A covered institution and an exempt institution merge. The exempt institution is
the surviving institution, or a new institution is formed. Data collection is required
for transactions of the covered institution
that take place prior to the merger. Data
collection is optional for transactions taking
place after the merger date.
iv. Two covered institutions merge. Data
collection is required for the entire year. The
surviving or resulting institution files either
a consolidated submission or separate submissions for that year.
4. Originations. HMDA coverage depends in
part on whether an institution has originated home purchase loans. To determine
whether activities with respect to a particular loan constitute an origination, institutions should consult, among other parts of
the staff commentary, the discussion of the
broker rule under §§ 1003.1(c) and 1003.4(a).
5. Branches of foreign banks—treated as
banks. A Federal branch or a state-licensed
insured branch of a foreign bank is a ‘‘bank’’
under section 3(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(a)), and is covered by HMDA if it meets the tests for a depository institution found in § 1003.2 of Regulation C.
6. Branches and offices of foreign banks—
treated as for-profit mortgage lending institutions. Federal agencies, state-licensed agencies, state-licensed uninsured branches of
foreign banks, commercial lending companies owned or controlled by foreign banks,
and entities operating under section 25 or
25A of the Federal Reserve Act, 12 U.S.C. 601
and 611 (Edge Act and agreement corporations) are not ‘‘banks’’ under the Federal Deposit Insurance Act. These entities are nonetheless covered by HMDA if they meet the
tests for a for-profit nondepository mortgage
lending institution found in § 1003.2 of Regulation C.
Home improvement loan.
1. Classification requirement for loans not
secured by a lien on a dwelling. An institution has ‘‘classified’’ a loan that is not secured by a lien on a dwelling as a home improvement loan if it has entered the loan on
its books as a home improvement loan, or
has otherwise coded or identified the loan as
a home improvement loan. For example, an
institution that has booked a loan or reported it on a ‘‘call report’’ as a home improvement loan has classified it as a home
improvement loan. An institution may also

classify loans as home improvement loans in
other ways (for example, by color-coding
loan files).
2. Improvements to real property. Home improvements include improvements both to a
dwelling and to the real property on which
the dwelling is located (for example, installation of a swimming pool, construction of a
garage, or landscaping).
3. Commercial and other loans. A home improvement loan may include a loan originated outside an institution’s residential
mortgage lending division (such as a loan to
improve an apartment building made
through the commercial loan department).
4. Mixed-use property. A loan to improve
property used for residential and commercial
purposes (for example, a building containing
apartment units and retail space) is a home
improvement loan if the loan proceeds are
used primarily to improve the residential
portion of the property. If the loan proceeds
are used to improve the entire property (for
example, to replace the heating system), the
loan is a home improvement loan if the property itself is primarily residential. An institution may use any reasonable standard to
determine the primary use of the property,
such as by square footage or by the income
generated. An institution may select the
standard to apply on a case-by-case basis. If
the loan is unsecured, to report the loan as
a home improvement loan the institution
must also have classified it as such.
5. Multiple-category loans. If a loan is a
home improvement loan as well as a refinancing, an institution reports the loan as a
home improvement loan.
Home purchase loan.
1. Multiple properties. A home purchase loan
includes a loan secured by one dwelling and
used to purchase another dwelling.
2. Mixed-use property. A dwelling-secured
loan to purchase property used primarily for
residential purposes (for example, an apartment building containing a convenience
store) is a home purchase loan. An institution may use any reasonable standard to determine the primary use of the property,
such as by square footage or by the income
generated. An institution may select the
standard to apply on a case-by-case basis.
3. Farm loan. A loan to purchase property
used primarily for agricultural purposes is
not a home purchase loan even if the property includes a dwelling. An institution may
use any reasonable standard to determine
the primary use of the property, such as by
reference to the exemption from Regulation
X (Real Estate Settlement Procedures, 12
CFR 1024.5(b)(1)) for a loan on property of 25
acres or more. An institution may select the
standard to apply on a case-by-case basis.
4. Commercial and other loans. A home purchase loan may include a loan originated
outside an institution’s residential mortgage

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lending division (such as a loan for the purchase of an apartment building made
through the commercial loan department).
5. Construction and permanent financing. A
home purchase loan includes both a combined construction/permanent loan and the
permanent financing that replaces a construction-only loan. It does not include a
construction-only loan, which is considered
‘‘temporary financing’’ under Regulation C
and is not reported.
6. Second mortgages that finance the
downpayments on first mortgages. If an institution making a first mortgage loan to a home
purchaser also makes a second mortgage
loan to the same purchaser to finance part or
all of the home purchaser’s downpayment,
the institution reports each loan separately
as a home purchase loan.
7. Multiple-category loans. If a loan is a
home purchase loan as well as a home improvement loan, or a refinancing, an institution reports the loan as a home purchase
loan.
Manufactured home.
1. Definition of a manufactured home. The
definition in § 1003.2 refers to the Federal
building code for factory-built housing established by the Department of Housing and
Urban Development (HUD). The HUD code
requires generally that housing be essentially ready for occupancy upon leaving the
factory and being transported to a building
site. Modular homes that meet all of the
HUD code standards are included in the definition because they are ready for occupancy
upon leaving the factory. Other factory-built
homes, such as panelized and pre-cut homes,
generally do not meet the HUD code because
they require a significant amount of construction on site before they are ready for
occupancy. Loans and applications relating
to manufactured homes that do not meet the
HUD code should not be identified as manufactured housing under HMDA.
Metropolitan Statistical Areas and Metropolitan Divisions.
1. Use of terms ‘‘Metropolitan Statistical
Area’’ and ‘‘Metropolitan Division.’’ The U.S.
Office of Management and Budget defines
Metropolitan Statistical Areas and Metropolitan Divisions to provide nationally consistent definitions for collecting, tabulating,
and publishing Federal statistics for a set of
geographic areas. OMB divides every Metropolitan Statistical Area (MSA) with a population of 2.5 million or more into Metropolitan Divisions (MDs); MSAs with populations
under 2.5 million population are not so divided. 67 FR 82228 (December 27, 2000). For all
purposes under Regulation C, if an MSA is
divided by OMB into MDs, the appropriate
geographic unit to be used is the MD; if an
MSA is not so divided by OMB into MDs, the
appropriate geographic unit to be used is the
MSA.

Section 1003.4—Compilation of Loan Data
4(a) Data format and itemization.
1. Reporting requirements. i. An institution
reports data on loans that it originated and
loans that it purchased during the calendar
year described in the report. An institution
reports these data even if the loans were subsequently sold by the institution.
ii. An institution reports the data for loan
applications that did not result in originations—for example, applications that the institution denied or that the applicant withdrew during the calendar year covered by the
report.
iii. In the case of brokered loan applications or applications forwarded through a
correspondent, the institution reports as
originations the loans that it approved and
subsequently acquired per a pre-closing arrangement (whether or not they closed in
the institution’s name). Additionally, the institution reports the data for all applications
that did not result in originations—for example, applications that the institution denied or that the applicant withdrew during
the calendar year covered by the report
(whether or not they would have closed in
the institution’s name). For all of these
loans and applications, the institution reports the required data regarding the borrower’s or applicant’s ethnicity, race, sex,
and income.
iv. Loan originations are to be reported
only once. If the institution is the loan
broker or correspondent, it does not report
as originations the loans that it forwarded to
another lender for approval prior to closing,
and that were approved and subsequently acquired by that lender (whether or not they
closed in the institution’s name).
v. An institution reports applications that
were received in the previous calendar year
but were acted upon during the calendar
year covered by the current register.
vi. A financial institution submits all required data to the appropriate Federal agency in one package, with the prescribed transmittal sheet. An officer of the institution
certifies to the accuracy of the data.
vii. The transmittal sheet states the total
number of line entries contained in the accompanying data transmission.
2. Updating—agency requirements. Certain
state or Federal regulations, such as the
Federal Deposit Insurance Corporation’s regulations, may require an institution to update its data more frequently than is required under Regulation C.
3. Form of quarterly updating. An institution may maintain the quarterly updates of
the HMDA/LAR in electronic or any other
format, provided the institution can make
the information available to its regulatory
agency in a timely manner upon request.
Paragraph 4(a)(1).

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1. Application date—consistency. In reporting the date of application, an institution reports the date the application was received
or the date shown on the application. Although an institution need not choose the
same approach for its entire HMDA submission, it should be generally consistent (such
as by routinely using one approach within a
particular division of the institution or for a
category of loans).
2. Application date—application forwarded by
a broker. For an application forwarded by a
broker, an institution reports the date the
application was received by the broker, the
date the application was received by the institution, or the date shown on the application. Although an institution need not
choose the same approach for its entire
HMDA submission, it should be generally
consistent (such as by routinely using one
approach within a particular division of the
institution or for a category of loans).
3. Application date—reinstated application.
If, within the same calendar year, an applicant asks an institution to reinstate a
counteroffer that the applicant previously
did not accept (or asks the institution to reconsider an application that was denied,
withdrawn, or closed for incompleteness),
the institution may treat that request as the
continuation of the earlier transaction or as
a new transaction. If the institution treats
the request for reinstatement or reconsideration as a new transaction, it reports the
date of the request as the application date.
4. Application or loan number. An institution must ensure that each identifying number is unique within the institution. If an institution’s register contains data for branch
offices, for example, the institution could
use a letter or a numerical code to identify
the loans or applications of different
branches, or could assign a certain series of
numbers to particular branches to avoid duplicate numbers. Institutions are strongly
encouraged not to use the applicant’s or borrower’s name or social security number, for
privacy reasons.
5. Application—year action taken. An institution must report an application in the calendar year in which the institution takes
final action on the application.
Paragraph 4(a)(3).
1. Purpose—statement of applicant. An institution may rely on the oral or written statement of an applicant regarding the proposed
use of loan proceeds. For example, a lender
could use a check-box, or a purpose line, on
a loan application to determine whether or
not the applicant intends to use loan proceeds for home improvement purposes.
2. Purpose—multiple-purpose loan. If a loan
is a home purchase loan as well as a home
improvement loan, or a refinancing, an institution reports the loan as a home purchase
loan. If a loan is a home improvement loan

as well as a refinancing, an institution reports the loan as a home improvement loan.
Paragraph 4(a)(6).
1. Occupancy—multiple properties. If a loan
relates to multiple properties, the institution reports the owner occupancy status of
the property for which property location is
being reported. (See the comments to paragraph 4(a)(9)).
Paragraph 4(a)(7).
1. Loan amount—counteroffer. If an applicant accepts a counteroffer for an amount
different from the amount initially requested, the institution reports the loan
amount granted. If an applicant does not accept a counteroffer or fails to respond, the
institution reports the loan amount initially
requested.
2. Loan amount—multiple-purpose loan. Except in the case of a home-equity line of
credit, an institution reports the entire
amount of the loan, even if only a part of the
proceeds is intended for home purchase or
home improvement.
3. Loan amount—home-equity line. An institution that has chosen to report home-equity lines of credit reports only the part that
is intended for home-improvement or homepurchase purposes.
4. Loan amount—assumption. An institution
that enters into a written agreement accepting a new party as the obligor on a loan reports the amount of the outstanding principal on the assumption as the loan amount.
Paragraph 4(a)(8).
1. Action taken—counteroffers. If an institution makes a counteroffer to lend on terms
different from the applicant’s initial request
(for example, for a shorter loan maturity or
in a different amount) and the applicant does
not accept the counteroffer or fails to respond, the institution reports the action
taken as a denial on the original terms requested by the applicant.
2. Action taken—rescinded transactions. If a
borrower rescinds a transaction after closing, the institution may report the transaction either as an origination or as an application that was approved but not accepted.
3. Action taken—purchased loans. An institution reports the loans that it purchased
during the calendar year, and does not report
the loans that it declined to purchase.
4. Action taken—conditional approvals. If an
institution issues a loan approval subject to
the applicant’s meeting underwriting conditions (other than customary loan commitment or loan-closing conditions, such as a
clear-title requirement or an acceptable
property survey) and the applicant does not
meet them, the institution reports the action taken as a denial.
5. Action taken date—approved but not accepted. For a loan approved by an institution
but not accepted by the applicant, the institution reports any reasonable date, such as

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the approval date, the deadline for accepting
the offer, or the date the file was closed. Although an institution need not choose the
same approach for its entire HMDA submission, it should be generally consistent (such
as by routinely using one approach within a
particular division of the institution or for a
category of loans).
6. Action taken date—originations. For loan
originations, an institution generally reports
the settlement or closing date. For loan
originations that an institution acquires
through a broker, the institution reports either the settlement or closing date, or the
date the institution acquired the loan from
the broker. If the disbursement of funds
takes place on a date later than the settlement or closing date, the institution may
use the date of disbursement. For a construction/permanent loan, the institution reports
either the settlement or closing date, or the
date the loan converts to the permanent financing. Although an institution need not
choose the same approach for its entire
HMDA submission, it should be generally
consistent (such as by routinely using one
approach within a particular division of the
institution or for a category of loans). Notwithstanding this flexibility regarding the
use of the closing date in connection with reporting the date action was taken, the year
in which an origination goes to closing is the
year in which the institution must report
the origination.
7. Action taken—pending applications. An institution does not report any loan application still pending at the end of the calendar
year; it reports that application on its register for the year in which final action is
taken.
Paragraph 4(a)(9).
1. Property location—multiple properties
(home improvement/refinance of home improvement). For a home improvement loan, an institution reports the property being improved. If more than one property is being
improved, the institution reports the location of one of the properties or reports the
loan using multiple entries on its HMDA/
LAR (with unique identifiers) and allocating
the loan amount among the properties.
2. Property location—multiple properties
(home purchase/refinance of home purchase).
For a home purchase loan, an institution reports the property taken as security. If an
institution takes more than one property as
security, the institution reports the location
of the property being purchased if there is
just one. If the loan is to purchase multiple
properties and is secured by multiple properties, the institution reports the location of
one of the properties or reports the loan
using multiple entries on its HMDA/LAR
(with unique identifiers) and allocating the
loan amount among the properties.
3. Property location—loans purchased from
another institution. The requirement to report

the property location by census tract in an
MSA or Metropolitan Division where the institution has a home or branch office applies
not only to loan applications and originations but also to loans purchased from another institution. This includes loans purchased from an institution that did not have
a home or branch office in that MSA or Metropolitan Division and did not collect the
property-location information.
4. Property location—mobile or manufactured
home. If information about the potential site
of a mobile or manufactured home is not
available, an institution reports using the
Code for ‘‘not applicable.’’
Paragraph 4(a)(10).
1. Applicant data—completion by applicant.
An institution reports the monitoring information as provided by the applicant. For example, if an applicant checks the ‘‘Asian’’
box the institution reports using the
‘‘Asian’’ Code.
2. Applicant data—completion by lender. If an
applicant fails to provide the requested information for an application taken in person,
the institution reports the data on the basis
of visual observation or surname.
3. Applicant data—application completed in
person. When an applicant meets in person
with a lender to complete an application
that was begun by mail, internet, or telephone, the institution must request the monitoring information. If the meeting occurs
after the application process is complete, for
example, at closing, the institution is not required to obtain monitoring information.
4. Applicant data—joint applicant. A joint
applicant may enter the government monitoring information on behalf of an absent
joint applicant. If the information is not provided, the institution reports using the Code
for ‘‘information not provided by applicant
in mail, internet, or telephone application.’’
5. Applicant data—video and other electronicapplication processes. An institution that accepts applications through electronic media
with a video component treats the applications as taken in person and collects the information about the ethnicity, race, and sex
of applicants. An institution that accepts applications through electronic media without
a video component (for example, the internet
or facsimile) treats the applications as accepted by mail.
6. Income data—income relied on. An institution reports the gross annual income relied
on in evaluating the creditworthiness of applicants. For example, if an institution relies
on an applicant’s salary to compute a debtto-income ratio but also relies on the applicant’s annual bonus to evaluate creditworthiness, the institution reports the salary and the bonus to the extent relied upon.
Similarly, if an institution relies on the income of a cosigner to evaluate creditworthiness, the institution includes this income to
the extent relied upon. But an institution

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does not include the income of a guarantor
who is only secondarily liable.
7. Income data—co-applicant. If two persons
jointly apply for a loan and both list income
on the application, but the institution relies
only on the income of one applicant in computing ratios and in evaluating creditworthiness, the institution reports only the income
relied on.
8. Income data—loan to employee. An institution may report ‘‘NA’’ in the income field for
loans to its employees to protect their privacy, even though the institution relied on
their income in making its credit decisions.
Paragraph 4(a)(11).
1. Type of purchaser—loan-participation interests sold to more than one entity. An institution that originates a loan, and then sells it
to more than one entity, reports the ‘‘type of
purchaser’’ based on the entity purchasing
the greatest interest, if any. If an institution
retains a majority interest, it does not report the sale.
2. Type of purchaser—swapped loans. Loans
‘‘swapped’’ for mortgage-backed securities
are to be treated as sales; the purchaser is
the type of entity receiving the loans that
are swapped.
Paragraph 4(a)(12)(ii).
1. Average prime offer rate. Average prime
offer rates are annual percentage rates derived from average interest rates, points, and
other loan pricing terms offered to borrowers
by a representative sample of lenders for
mortgage loans that have low-risk pricing
characteristics. Other pricing terms include
commonly used indices, margins, and initial
fixed-rate periods for variable-rate transactions. Relevant pricing characteristics include a consumer’s credit history and transaction characteristics such as the loan-tovalue ratio, owner-occupant status, and purpose of the transaction. To obtain average
prime offer rates, the Bureau uses a survey
of lenders that both meets the criteria of
§ 1003.4(a)(12)(ii) and provides pricing terms
for at least two types of variable-rate transactions and at least two types of non-variable-rate transactions. An example of such a
survey is the Freddie Mac Primary Mortgage
Market Survey®.
2. Comparable transaction. The rate spread
reporting requirement applies to a reportable loan with an annual percentage rate
that exceeds by the specified margin (or
more) the average prime offer rate for a comparable transaction as of the date the interest rate is set. The tables of average prime
offer rates published by the Bureau (see comment 4(a)(12)(ii)–3) indicate how to identify
the comparable transaction.
3. Bureau tables. The Bureau publishes on
the FFIEC’s Web site (http://www.ffiec.gov/
hmda), in table form, average prime offer
rates for a wide variety of transaction types.
The Bureau calculates an annual percentage
rate, consistent with Regulation Z (see 12

CFR 1026.22 and part 1026, appendix J), for
each transaction type for which pricing
terms are available from the survey described in comment 4(a)(12)(ii)–1. The Bureau
estimates annual percentage rates for other
types of transactions for which direct survey
data are not available based on the loan pricing terms available in the survey and other
information. The Bureau publishes on the
FFIEC’s Web site the methodology it uses to
arrive at these estimates.
Paragraph 4(a)(14).
1. Determining lien status for applications
and loans originated. i. Lenders are required
to report lien status for loans they originate
and applications that do not result in originations. Lien status is determined by reference to the best information readily available to the lender at the time final action is
taken and to the lender’s own procedures.
Thus, lenders may rely on the title search
they routinely perform as part of their underwriting procedures—for example, for
home purchase loans. Regulation C does not
require lenders to perform title searches
solely to comply with HMDA reporting requirements. Lenders may rely on other information that is readily available to them at
the time final action is taken and that they
reasonably believe is accurate, such as the
applicant’s statement on the application or
the applicant’s credit report. For example,
where the applicant indicates on the application that there is a mortgage on the property
or where the applicant’s credit report shows
that the applicant has a mortgage—and that
mortgage is not going to be paid off as part
of the transaction—the lender may assume
that the loan it originates is secured by a
subordinate lien. If the same application did
not result in an origination—for example, because the application is denied or withdrawn—the lender would report the application as an application for a subordinate-lien
loan.
ii. Lenders may also consider their established procedures when determining lien status for applications that do not result in
originations. For example, a consumer applies to a lender to refinance a $100,000 first
mortgage; the consumer also has a home equity line of credit for $20,000. If the lender’s
practice in such a case is to ensure that it
will have first-lien position—through a subordination agreement with the holder of the
mortgage on the home equity line—then the
lender should report the application as an
application for a first-lien loan.
Paragraph 4(c)(3).
1. An institution that opts to report homeequity lines reports the disposition of all applications, not just originations.
4(d) Excluded data.
1. Mergers, purchases in bulk, and branch acquisitions. If a covered institution acquires
loans in bulk from another institution (for

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example, from the receiver for a failed institution) but no merger or acquisition of the
institution, or acquisition of a branch, is involved, the institution reports the loans as
purchased loans.

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Section 1003.5(a)—Disclosure and Reporting
5(a) Reporting to agency.
1. Submission of data. Institutions submit
data to the appropriate Federal agencies in
an automated, machine-readable form. The
format must conform to that of the HMDA/
LAR. An institution should contact the appropriate Federal agency for information regarding procedures and technical specifications for automated data submission; in
some cases, agencies also make software
available for automated data submission.
The data are edited before submission, using
the edits included in the agency-supplied
software or equivalent edits in software
available from vendors or developed inhouse.
2. Submission in paper form. Institutions
that report twenty-five or fewer entries on
their HMDA/LAR may collect and report the
data in paper form. An institution that submits its register in non-automated form
sends two copies that are typed or computer
printed and must use the format of the
HMDA/LAR (but need not use the form
itself). Each page must be numbered along
with the total number of pages (for example,
‘‘Page 1 of 3’’).
3. Procedures for entering data. The required
data are entered in the register for each loan
origination, each application acted on, and
each loan purchased during the calendar
year. The institution should decide on the
procedure it wants to follow—for example,
whether to begin entering the required data,
when an application is received, or to wait
until final action is taken (such as when a
loan goes to closing or an application is denied).
4. Options for collection. An institution may
collect data on separate registers at different
branches, or on separate registers for different loan types (such as for home purchase
or home improvement loans, or for loans on
multifamily dwellings). Entries need not be
grouped on the register by MSA or Metropolitan Division, or chronologically, or by
census tract numbers, or in any other particular order.
5. Change in appropriate Federal agency. If
the appropriate Federal agency for a covered
institution changes (as a consequence of a
merger or a change in the institution’s charter, for example), the institution must report
data to the new appropriate Federal agency
beginning with the year of the change.
6. Subsidiaries. An institution is a subsidiary of a bank or savings association (for
purposes of reporting HMDA data to the
same agency as the parent) if the bank or
savings association holds or controls an own-

ership interest that is greater than 50 percent of the institution.
7. Transmittal sheet—additional data submissions. If an additional data submission becomes necessary (for example, because the
institution discovers that data were omitted
from the initial submission, or because revisions are called for), that submission must
be accompanied by a transmittal sheet.
8. Transmittal sheet—revisions or deletions. If
a data submission involves revisions or deletions of previously submitted data, it must
state the total of all line entries contained
in that submission, including both those representing revisions or deletions of previously
submitted entries, and those that are being
resubmitted unchanged or are being submitted for the first time. Depository institutions must provide a list of the MSAs or
Metropolitan Divisions in which they have
home or branch offices.
5(b) Public disclosure of statement.
1. Business day. For purposes of § 1003.5, a
business day is any calendar day other than
a Saturday, Sunday, or legal public holiday.
2. Format. An institution may make the
disclosure statement available in paper form
or, if the person requesting the data agrees,
in electronic form.
5(c) Public disclosure of modified loan/application register.
1. Format. An institution may make the
modified register available in paper or electronic form. Although institutions are not
required to make the modified register available in census tract order, they are strongly
encouraged to do so in order to enhance its
utility to users.
5(e) Notice of availability.
1. Poster—suggested text. An institution
may use any text that meets the requirements of the regulation. Some of the Federal
agencies that receive HMDA data provide
HMDA posters that an institution can use to
inform the public of the availability of its
HMDA data, or the institution may create
its own posters. If an institution prints its
own, the following language is suggested but
is not required:
HOME MORTGAGE DISCLOSURE ACT NOTICE
The HMDA data about our residential mortgage lending are available for review. The data
show geographic distribution of loans and applications; ethnicity, race, sex, and income of applicants and borrowers; and information about
loan approvals and denials. Inquire at this office regarding the locations where HMDA data
may be inspected.
2. Additional language for institutions making
the disclosure statement available on request.
An institution that posts a notice informing
the public of the address to which a request
should be sent could include the following
sentence, for example, in its general notice:
‘‘To receive a copy of these data send a written request to [address].’’

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Section 1003.6—Enforcement
6(b) Bona fide errors.
1. Bona fide error—information from third
parties. An institution that obtains the property-location information for applications
and loans from third parties (such as appraisers or vendors of ‘‘geocoding’’ services)
is responsible for ensuring that the information reported on its HMDA/LAR is correct.
[76 FR 78468, Dec. 19, 2011, as amended at 78
FR 79286, Dec. 30, 2013; 79 FR 77855, Dec. 29,
2014; 80 FR 79674, Dec. 23, 2015]
EFFECTIVE DATE NOTE 1: At 80 FR 66317,
Oct. 28, 2015, supplement I to part 1003 was
revised, effective Jan. 1, 2018. For the convenience of the user, the revised text is set
forth as follows:

SUPPLEMENT I TO PART 1003—OFFICIAL
INTERPRETATIONS
Introduction
1. Status. The commentary in this supplement is the vehicle by which the Bureau of
Consumer Financial Protection issues formal interpretations of Regulation C (12 CFR
part 1003).
Section 1003.2—Definitions

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2(b) Application
1. Consistency with Regulation B. Bureau interpretations that appear in the official commentary to Regulation B (Equal Credit Opportunity Act, 12 CFR part 1002, Supplement
I) are generally applicable to the definition
of application under Regulation C. However,
under Regulation C the definition of an application does not include prequalification
requests.
2. Prequalification. A prequalification request is a request by a prospective loan applicant
(other
than
a
request
for
preapproval) for a preliminary determination on whether the prospective loan applicant would likely qualify for credit under an
institution’s standards, or for a determination on the amount of credit for which the
prospective applicant would likely qualify.
Some institutions evaluate prequalification
requests through a procedure that is separate from the institution’s normal loan application process; others use the same process. In either case, Regulation C does not require
an
institution
to
report
prequalification requests on the loan/application register, even though these requests
may constitute applications under Regulation B for purposes of adverse action notices.
3. Requests for preapproval. To be a
preapproval
program
as
defined
in
§ 1003.2(b)(2), the written commitment issued
under the program must result from a comprehensive review of the creditworthiness of
the applicant, including such verification of

income, resources, and other matters as is
typically done by the institution as part of
its normal credit evaluation program. In addition to conditions involving the identification of a suitable property and verification
that no material change has occurred in the
applicant’s financial condition or creditworthiness, the written commitment may be
subject only to other conditions (unrelated
to the financial condition or creditworthiness of the applicant) that the lender ordinarily attaches to a traditional home mortgage application approval. These conditions
are limited to conditions such as requiring
an acceptable title insurance binder or a certificate indicating clear termite inspection,
and, in the case where the applicant plans to
use the proceeds from the sale of the applicant’s present home to purchase a new home,
a settlement statement showing adequate
proceeds from the sale of the present home.
Regardless of its name, a program that satisfies the definition of a preapproval program
in § 1003.2(b)(2) is a preapproval program for
purposes of Regulation C. Conversely, a program that a financial institution describes
as a ‘‘preapproval program’’ that does not
satisfy the requirements of § 1003.2(b)(2) is
not a preapproval program for purposes of
Regulation C. If a financial institution does
not regularly use the procedures specified in
§ 1003.2(b)(2), but instead considers requests
for preapprovals on an ad hoc basis, the financial institution need not treat ad hoc requests as part of a preapproval program for
purposes of Regulation C. A financial institution should, however, be generally consistent in following uniform procedures for
considering such ad hoc requests.
2(c) Branch Office
Paragraph 2(c)(1)
1. Credit unions. For purposes of Regulation
C, a ‘‘branch’’ of a credit union is any office
where member accounts are established or
loans are made, whether or not the office has
been approved as a branch by a Federal or
State agency. (See 12 U.S.C. 1752.)
2. Bank, savings association, or credit unions.
A branch office of a bank, savings association, or credit union does not include a loanproduction office if the loan-production office is not considered a branch by the Federal or State supervisory authority applicable to that institution. A branch office also
does not include the office of an affiliate or
of a third party, such as a third-party
broker.
Paragraph 2(c)(2)
1. General. A branch office of a for-profit
mortgage lending institution, other than a
bank savings association or credit union,
does not include the office of an affiliate or

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of a third party, such as a third-party
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2(d) Closed-end Mortgage Loan
1. Dwelling-secured. Section 1003.2(d) defines
a closed-end mortgage loan as an extension
of credit that is secured by a lien on a dwelling and that is not an open-end line of credit
under § 1003.2(o). Thus, for example, a loan to
purchase a dwelling and secured only by a
personal guarantee is not a closed-end mortgage loan because it is not dwelling-secured.
2. Extension of credit. Under § 1003.2(d), a
dwelling-secured loan is not a closed-end
mortgage loan unless it involves an extension of credit. Thus, some transactions completed pursuant to installment sales contracts, such as some land contracts, are not
closed-end mortgage loans because no credit
is extended. For example, if a land contract
provides that, upon default, the contract terminates, all previous payments will be treated as rent, and the borrower is under no obligation to make further payments, the transaction is not a closed-end mortgage loan. In
general, extension of credit under § 1003.2(d)
refers to the granting of credit only pursuant
to a new debt obligation. Thus, except as described in comments 2(d)–2.i and .ii, if a
transaction modifies, renews, extends, or
amends the terms of an existing debt obligation, but the existing debt obligation is not
satisfied and replaced, the transaction is not
a closed-end mortgage loan under § 1003.2(d)
because there has been no new extension of
credit. The phrase extension of credit thus is
defined differently under Regulation C than
under Regulation B, 12 CFR part 1002.
i. Assumptions. For purposes of Regulation
C, an assumption is a transaction in which
an institution enters into a written agreement accepting a new borrower in place of an
existing borrower as the obligor on an existing debt obligation. For purposes of Regulation C, assumptions include successor-in-interest transactions, in which an individual
succeeds the prior owner as the property
owner and then assumes the existing debt secured by the property. Under § 1003.2(d), assumptions are extensions of credit even if
the new borrower merely assumes the existing debt obligation and no new debt obligation is created. See also comment 2(j)–5.
ii. New York State consolidation, extension,
and modification agreements. A transaction
completed pursuant to a New York State
consolidation, extension, and modification
agreement and classified as a supplemental
mortgage under New York Tax Law section
255, such that the borrower owes reduced or
no mortgage recording taxes, is an extension
of credit under § 1003.2(d). Comments 2(i)–1,
2(j)–5, and 2(p)–2 clarify whether such transactions are home improvement loans, home
purchase loans, or refinancings, respectively.

2(f) Dwelling
1. General. The definition of a dwelling is
not limited to the principal or other residence of the applicant or borrower, and thus
includes vacation or second homes and investment properties.
2. Multifamily residential structures and communities. A dwelling also includes a multifamily residential structure or community
such as an apartment, condominium, cooperative building or complex, or a manufactured
home community. A loan related to a manufactured home community is secured by a
dwelling for purposes of § 1003.2(f) even if it is
not secured by any individual manufactured
homes, but only by the land that constitutes
the manufactured home community including sites for manufactured homes. However,
a loan related to a multifamily residential
structure or community that is not a manufactured home community is not secured by
a dwelling for purposes of § 1003.2(f) if it is
not secured by any individual dwelling units
and is, for example, instead secured only by
property that only includes common areas,
or is secured only by an assignment of rents
or dues.
3. Exclusions. Recreational vehicles, including boats, campers, travel trailers, and park
model recreational vehicles, are not considered dwellings for purposes of § 1003.2(f), regardless of whether they are used as residences. Houseboats, floating homes, and mobile homes constructed before June 15, 1976,
are also excluded, regardless of whether they
are used as residences. Also excluded are
transitory residences such as hotels, hospitals, college dormitories, and recreational
vehicle parks, and structures originally designed as dwellings but used exclusively for
commercial purposes, such as homes converted to daycare facilities or professional
offices.
4. Mixed-use properties. A property used for
both residential and commercial purposes,
such as a building containing apartment
units and retail space, is a dwelling if the
property’s primary use is residential. An institution may use any reasonable standard
to determine the primary use of the property, such as by square footage or by the income generated. An institution may select
the standard to apply on a case-by-case
basis.
5. Properties with service and medical components. For purposes of § 1003.2(f), a property
used for both long-term housing and to provide related services, such as assisted living
for senior citizens or supportive housing for
persons with disabilities, is a dwelling and
does not have a non-residential purpose
merely because the property is used for both
housing and to provide services. However,
transitory residences that are used to provide such services are not dwellings. See
comment 2(f)–3. Properties that are used to

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provide medical care, such as skilled nursing, rehabilitation, or long-term medical
care, also are not dwellings. See comment
2(f)–3. If a property that is used for both
long-term housing and to provide related
services also is used to provide medical care,
the property is a dwelling if its primary use
is residential. An institution may use any
reasonable standard to determine the property’s primary use, such as by square footage, income generated, or number of beds or
units allocated for each use. An institution
may select the standard to apply on a caseby-case basis.

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2(g) Financial Institution
1. Preceding calendar year and preceding December 31. The definition of financial institution refers both to the preceding calendar
year and the preceding December 31. These
terms refer to the calendar year and the December 31 preceding the current calendar
year. For example, in 2019, the preceding calendar year is 2018 and the preceding December 31 is December 31, 2018. Accordingly, in
2019, Financial Institution A satisfies the
asset-size
threshold
described
in
§ 1003.2(g)(1)(i) if its assets exceeded the
threshold specified in comment 2(g)–2 on December 31, 2018. Likewise, in 2020, Financial
Institution A does not meet the loan-volume
test described in § 1003.2(g)(1)(v)(A) if it originated fewer than 25 closed-end mortgage
loans during either 2018 or 2019.
2. [Reserved]
3. Merger or acquisition—coverage of surviving or newly formed institution. After a
merger or acquisition, the surviving or
newly formed institution is a financial institution under § 1003.2(g) if it, considering the
combined assets, location, and lending activity of the surviving or newly formed institution and the merged or acquired institutions
or acquired branches, satisfies the criteria
included in § 1003.2(g). For example, A and B
merge. The surviving or newly formed institution meets the loan threshold described in
§ 1003.2(g)(1)(v)(B) if the surviving or newly
formed institution, A, and B originated a
combined total of at least 100 open-end lines
of credit in each of the two preceding calendar years. Likewise, the surviving or
newly formed institution meets the assetsize threshold in § 1003.2(g)(1)(i) if its assets
and the combined assets of A and B on December 31 of the preceding calendar year exceeded
the
threshold
described
in
§ 1003.2(g)(1)(i). Comment 2(g)–4 discusses a financial institution’s responsibilities during
the calendar year of a merger.
4. Merger or acquisition—coverage for calendar year of merger or acquisition. The scenarios described below illustrate a financial
institution’s responsibilities for the calendar
year of a merger or acquisition. For purposes
of these illustrations, a ‘‘covered institution’’ means a financial institution, as de-

fined in § 1003.2(g), that is not exempt from
reporting under § 1003.3(a), and ‘‘an institution that is not covered’’ means either an institution that is not a financial institution,
as defined in § 1003.2(g), or an institution that
is exempt from reporting under § 1003.3(a).
i. Two institutions that are not covered
merge. The surviving or newly formed institution meets all of the requirements necessary to be a covered institution. No data
collection is required for the calendar year
of the merger (even though the merger creates an institution that meets all of the requirements necessary to be a covered institution). When a branch office of an institution that is not covered is acquired by another institution that is not covered, and the
acquisition results in a covered institution,
no data collection is required for the calendar year of the acquisition.
ii. A covered institution and an institution
that is not covered merge. The covered institution is the surviving institution, or a new
covered institution is formed. For the calendar year of the merger, data collection is
required for covered loans and applications
handled in the offices of the merged institution that was previously covered and is optional for covered loans and applications
handled in offices of the merged institution
that was previously not covered. When a covered institution acquires a branch office of
an institution that is not covered, data collection is optional for covered loans and applications handled by the acquired branch office for the calendar year of the acquisition.
iii. A covered institution and an institution that is not covered merge. The institution that is not covered is the surviving institution, or a new institution that is not
covered is formed. For the calendar year of
the merger, data collection is required for
covered loans and applications handled in offices of the previously covered institution
that took place prior to the merger. After
the merger date, data collection is optional
for covered loans and applications handled in
the offices of the institution that was previously covered. When an institution remains not covered after acquiring a branch
office of a covered institution, data collection is required for transactions of the acquired branch office that take place prior to
the acquisition. Data collection by the acquired branch office is optional for transactions taking place in the remainder of the
calendar year after the acquisition.
iv. Two covered institutions merge. The
surviving or newly formed institution is a
covered institution. Data collection is required for the entire calendar year of the
merger. The surviving or newly formed institution files either a consolidated submission
or separate submissions for that calendar
year. When a covered institution acquires a
branch office of a covered institution, data
collection is required for the entire calendar

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year of the merger. Data for the acquired
branch office may be submitted by either institution.
5. Originations. Whether an institution is a
financial institution depends in part on
whether the institution originated at least 25
closed-end mortgage loans in each of the two
preceding calendar years or at least 100 openend lines of credit in each of the two preceding calendar years. Comments 4(a)–2
through –4 discuss whether activities with
respect to a particular closed-end mortgage
loan or open-end line of credit constitute an
origination for purposes of § 1003.2(g).
6. Branches of foreign banks—treated as
banks. A Federal branch or a State-licensed
or insured branch of a foreign bank that
meets the definition of a ‘‘bank’’ under section 3(a)(1) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(a)) is a bank for the purposes of § 1003.2(g).
7. Branches and offices of foreign banks and
other entities—treated as nondepository financial institutions. A Federal agency, State-licensed agency, State-licensed uninsured
branch of a foreign bank, commercial lending company owned or controlled by a foreign bank, or entity operating under section
25 or 25A of the Federal Reserve Act, 12
U.S.C. 601 and 611 (Edge Act and agreement
corporations) may not meet the definition of
‘‘bank’’ under the Federal Deposit Insurance
Act and may thereby fail to satisfy the definition of a depository financial institution
under § 1003.2(g)(1). An entity is nonetheless a
financial institution if it meets the definition of nondepository financial institution
under § 1003.2(g)(2).

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2(i) Home Improvement Loan
1. General. Section 1003.2(i) defines a home
improvement loan as a closed-end mortgage
loan or an open-end line of credit that is for
the purpose, in whole or in part, of repairing,
rehabilitating, remodeling, or improving a
dwelling or the real property on which the
dwelling is located. For example, a closedend mortgage loan obtained to repair a
dwelling by replacing a roof is a home improvement loan under § 1003.2(i). A loan or
line of credit is a home improvement loan
even if only a part of the purpose is for repairing, rehabilitating, remodeling, or improving a dwelling. For example, an open-end
line of credit obtained in part to remodel a
kitchen and in part to pay college tuition is
a home improvement loan under § 1003.2(i).
Similarly, for example, a loan that is completed pursuant to a New York State consolidation, extension, and modification agreement and that is classified as a supplemental
mortgage under New York Tax Law section
255, such that the borrower owes reduced or
no mortgage recording taxes, is a home improvement loan if any of the loan’s funds are
for home improvement purposes. See also
comment 2(d)–2.ii.

2. Improvements to real property. Home improvements include improvements both to a
dwelling and to the real property on which
the dwelling is located (for example, installation of a swimming pool, construction of a
garage, or landscaping).
3. Commercial and other loans. A home improvement loan may include a closed-end
mortgage loan or an open-end line of credit
originated outside an institution’s residential mortgage lending division, such as a
loan or line of credit to improve an apartment building originated in the commercial
loan department.
4. Mixed-use property. A closed-end mortgage loan or an open-end line of credit to improve a dwelling used for residential and
commercial purposes (for example, a building containing apartment units and retail
space), or the real property on which such a
dwelling is located, is a home improvement
loan if the loan’s proceeds are used either to
improve the entire property (for example, to
replace the heating system), or if the proceeds are used primarily to improve the residential portion of the property. An institution may use any reasonable standard to determine the primary use of the loan proceeds. An institution may select the standard to apply on a case-by-case basis.
5. Multiple-purpose loans. A closed-end
mortgage loan or an open-end line of credit
may be used for multiple purposes. For example, a closed-end mortgage loan that is a
home improvement loan under § 1003.2(i) may
also be a refinancing under § 1003.2(p) if the
transaction is a cash-out refinancing and the
funds will be used to improve a home. Such
a transaction is a multiple-purpose loan.
Comment 4(a)(3)–3 provides details about
how to report multiple-purpose covered
loans.
6. Statement of borrower. In determining
whether a closed-end mortgage loan or an
open-end line of credit, or an application for
a closed-end mortgage loan or an open-end
line of credit, is for home improvement purposes, an institution may rely on the applicant’s or borrower’s stated purpose(s) for the
loan or line of credit at the time the application is received or the credit decision is
made. An institution need not confirm that
the borrower actually uses any of the funds
for the stated purpose(s).
2(j) Home Purchase Loan
1. Multiple properties. A home purchase loan
includes a closed-end mortgage loan or an
open-end line of credit secured by one dwelling and used to purchase another dwelling.
For example, if a person obtains a home-equity loan or a reverse mortgage secured by
dwelling A to purchase dwelling B, the homeequity loan or the reverse mortgage is a
home purchase loan under § 1003.2(j).

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2. Commercial and other loans. A home purchase loan may include a closed-end mortgage loan or an open-end line of credit originated outside an institution’s residential
mortgage lending division, such as a loan or
line of credit to purchase an apartment
building originated in the commercial loan
department.
3. Construction and permanent financing. A
home purchase loan includes both a combined construction/permanent loan and the
permanent financing that replaces a construction-only loan. A home purchase loan
does not include a construction-only loan
that is designed to be replaced by permanent
financing at a later time, which is excluded
from Regulation C as temporary financing
under § 1003.3(c)(3). Comment 3(c)(3)–1 provides additional details about transactions
that are excluded as temporary financing.
4. Second mortgages that finance the
downpayments on first mortgages. If an institution making a first mortgage loan to a home
purchaser also makes a second mortgage
loan or line of credit to the same purchaser
to finance part or all of the home purchaser’s
downpayment, both the first mortgage loan
and the second mortgage loan or line of credit are home purchase loans.
5. Assumptions. Under § 1003.2(j), an assumption is a home purchase loan when an institution enters into a written agreement accepting a new borrower as the obligor on an
existing obligation to finance the new borrower’s purchase of the dwelling securing the
existing obligation, if the resulting obligation is a closed-end mortgage loan or an
open-end line of credit. A transaction in
which borrower B finances the purchase of
borrower A’s dwelling by assuming borrower
A’s existing debt obligation and that is completed pursuant to a New York State consolidation, extension, and modification agreement and is classified as a supplemental
mortgage under New York Tax Law section
255, such that the borrower owes reduced or
no mortgage recording taxes, is an assumption and a home purchase loan. See comment
2(d)–2.ii. On the other hand, a transaction in
which borrower B, a successor-in-interest,
assumes borrower A’s existing debt obligation only after acquiring title to borrower
A’s dwelling is not a home purchase loan because borrower B did not assume the debt obligation for the purpose of purchasing a
dwelling. See § 1003.4(a)(3) and comment
4(a)(3)–4 for guidance about how to report
covered loans that are not home improvement loans, home purchase loans, or
refinancings.
6. Multiple-purpose loans. A closed-end
mortgage loan or an open-end line of credit
may be used for multiple purposes. For example, a closed-end mortgage loan that is a
home purchase loan under § 1003.2(j) may also
be a home improvement loan under § 1003.2(i)
and a refinancing under § 1003.2(p) if the

transaction is a cash-out refinancing and the
funds will be used to purchase and improve a
dwelling. Such a transaction is a multiplepurpose loan. Comment 4(a)(3)–3 provides details about how to report multiple-purpose
covered loans.
2(l) Manufactured Home
1. Definition of a manufactured home. The
definition in § 1003.2(l) refers to the Federal
building code for manufactured housing established by the U.S. Department of Housing
and Urban Development (HUD) (24 CFR part
3280.2). Modular or other factory-built homes
that do not meet the HUD code standards are
not manufactured homes for purposes of
§ 1003.2(l). Recreational vehicles are excluded
from the HUD code standards pursuant to 24
CFR 3282.8(g) and are also excluded from the
definition of dwelling for purposes of
§ 1003.2(f). See comment 2(f)–3.
2. Identification. A manufactured home will
generally bear a data plate affixed in a permanent manner near the main electrical
panel or other readily accessible and visible
location noting its compliance with the Federal Manufactured Home Construction and
Safety Standards in force at the time of
manufacture and providing other information about its manufacture pursuant to 24
CFR 3280.5. A manufactured home will generally also bear a HUD Certification Label
pursuant to 24 CFR 3280.11.
2(m) Metropolitan Statistical Area (MD) or
Metropolitan Division (MD).
1. Use of terms ‘‘Metropolitan Statistical Area
(MSA)’’ and ‘‘Metropolitan Division (MD).’’
The U.S. Office of Management and Budget
(OMB) defines Metropolitan Statistical
Areas (MSAs) and Metropolitan Divisions
(MDs) to provide nationally consistent definitions for collecting, tabulating, and publishing Federal statistics for a set of geographic areas. For all purposes under Regulation C, if an MSA is divided by OMB into
MDs, the appropriate geographic unit to be
used is the MD; if an MSA is not so divided
by OMB into MDs, the appropriate geographic unit to be used is the MSA.
2(n) Multifamily Dwelling
1. Multifamily residential structures. The definition of dwelling in § 1003.2(f) includes multifamily residential structures and the corresponding commentary provides guidance
on when such residential structures are included in that definition. See comments 2(f)–
2 through –5.
2. Special reporting requirements for multifamily dwellings. The definition of multifamily dwelling in § 1003.2(n) includes a
dwelling, regardless of construction method,

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that contains five or more individual dwelling units. Covered loans secured by a multifamily dwelling are subject to additional reporting requirements under § 1003.4(a)(32),
but are not subject to reporting requirements under § 1003.4(a)(4), (10)(iii), (23), (29),
or (30).
2(o) Open-End Line of Credit
1. General. Section 1003.2(o) defines an
open-end line of credit as an extension of
credit that is secured by a lien on a dwelling
and that is an open-end credit plan as defined in Regulation Z, 12 CFR 1026.2(a)(20),
but without regard to whether the credit is
consumer credit, as defined in § 1026.2(a)(12),
is extended by a creditor, as defined in
§ 1026.2(a)(17), or is extended to a consumer,
as defined in § 1026.2(a)(11). Aside from these
distinctions, institutions may rely on 12 CFR
1026.2(a)(20) and its related commentary in
determining whether a transaction is an
open-end line of credit under § 1003.2(o). For
example, assume a business-purpose transaction that is exempt from Regulation Z pursuant to § 1026.3(a)(1) but that otherwise is
open-end
credit
under
Regulation
Z
§ 1026.2(a)(20). The business-purpose transaction is an open-end line of credit under
Regulation C, provided the other requirements of § 1003.2(o) are met. Similarly, assume a transaction in which the person extending open-end credit is a financial institution under § 1003.2(g) but is not a creditor
under Regulation Z, § 1026.2(a)(17). In this example, the transaction is an open-end line of
credit under Regulation C, provided the
other requirements of § 1003.2(o) are met.
2. Extension of credit. Extension of credit
has the same meaning under § 1003.2(o) as
under § 1003.2(d) and comment 2(d)–2. Thus,
for example, a renewal of an open-end line of
credit is not an extension of credit under
§ 1003.2(o) and is not covered by Regulation C
unless the existing debt obligation is satisfied and replaced. Likewise, under § 1003.2(o),
each draw on an open-end line of credit is
not an extension of credit.

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2(p) Refinancing
1. General. Section 1003.2(p) defines a refinancing as a closed-end mortgage loan or an
open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower. Except as described in comment 2(p)–2, whether a refinancing has occurred is determined by reference to whether, based on the parties’ contract and applicable law, the original debt
obligation has been satisfied or replaced by a
new debt obligation. Whether the original
lien is satisfied is irrelevant. For example:
i. A new closed-end mortgage loan that
satisfies and replaces one or more existing

closed-end mortgage loans is a refinancing
under § 1003.2(p).
ii. A new open-end line of credit that satisfies and replaces an existing closed-end
mortgage loan is a refinancing under
§ 1003.2(p).
iii. Except as described in comment 2(p)–2,
a new debt obligation that renews or modifies the terms of, but that does not satisfy
and replace, an existing debt obligation, is
not a refinancing under § 1003.2(p).
2. New York State consolidation, extension,
and modification agreements. Where a transaction is completed pursuant to a New York
State consolidation, extension, and modification agreement and is classified as a supplemental mortgage under New York Tax
Law section§ 255, such that the borrower
owes reduced or no mortgage recording
taxes, and where, but for the agreement, the
transaction would have met the definition of
a refinancing under § 1003.2(p), the transaction is considered a refinancing under
§ 1003.2(p). See also comment 2(d)–2.ii.
3. Existing debt obligation. A closed-end
mortgage loan or an open-end line of credit
that satisfies and replaces one or more existing debt obligations is not a refinancing
under § 1003.2(p) unless the existing debt obligation (or obligations) also was secured by a
dwelling. For example, assume that a borrower has an existing $30,000 closed-end
mortgage loan and obtains a new $50,000
closed-end mortgage loan that satisfies and
replaces the existing $30,000 loan. The new
$50,000 loan is a refinancing under § 1003.2(p).
However, if the borrower obtains a new
$50,000 closed-end mortgage loan that satisfies and replaces an existing $30,000 loan secured only by a personal guarantee, the new
$50,000 loan is not a refinancing under
§ 1003.2(p). See § 1003.4(a)(3) and related commentary for guidance about how to report
the loan purpose of such transactions, if they
are not otherwise excluded under § 1003.3(c).
4. Same borrower. Section 1003.2(p) provides
that, even if all of the other requirements of
§ 1003.2(p) are met, a closed-end mortgage
loan or an open-end line of credit is not a refinancing unless the same borrower undertakes both the existing and the new obligation(s). Under § 1003.2(p), the ‘‘same borrower’’ undertakes both the existing and the
new obligation(s) even if only one borrower
is the same on both obligations. For example, assume that an existing closed-end
mortgage loan (obligation X) is satisfied and
replaced by a new closed-end mortgage loan
(obligation Y). If borrowers A and B both are
obligated on obligation X, and only borrower
B is obligated on obligation Y, then obligation Y is a refinancing under § 1003.2(p), assuming the other requirements of § 1003.2(p)
are met, because borrower B is obligated on
both transactions. On the other hand, if only
borrower A is obligated on obligation X, and
only borrower B is obligated on obligation Y,

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then obligation Y is not a refinancing under
§ 1003.2(p). For example, assume that two
spouses are divorcing. If both spouses are obligated on obligation X, but only one spouse
is obligated on obligation Y, then obligation
Y is a refinancing under § 1003.2(p), assuming
the other requirements of § 1003.2(p) are met.
On the other hand, if only spouse A is obligated on obligation X, and only spouse B is
obligated on obligation Y, then obligation Y
is not a refinancing under § 1003.2(p). See
§ 1003.4(a)(3) and related commentary for
guidance about how to report the loan purpose of such transactions, if they are not
otherwise excluded under § 1003.3(c).
5. Two or more debt obligations. Section
1003.2(p) provides that, to be a refinancing, a
new debt obligation must satisfy and replace
an existing debt obligation. Where two or
more new obligations replace an existing obligation, each new obligation is a refinancing
if, taken together, the new obligations satisfy the existing obligation. Similarly, where
one new obligation replaces two or more existing obligations, the new obligation is a refinancing if it satisfies each of the existing
obligations.
6. Multiple-purpose loans. A closed-end
mortgage loan or an open-end line of credit
may be used for multiple purposes. For example, a closed-end mortgage loan that is a
refinancing under § 1003.2(p) may also be a
home improvement loan under § 1003.2(i) and
be used for other purposes if the refinancing
is a cash-out refinancing and the funds will
be used both for home improvement and to
pay college tuition. Such a transaction is a
multiple-purpose loan. Comment 4(a)(3)–3
provides details about how to report multiple-purpose covered loans.
Section 1003.3—Exempt Institutions and
Excluded Transactions
3(c) Excluded Transactions
Paragraph 3(c)(1)
1. Financial institution acting in a fiduciary
capacity. Section 1003.3(c)(1) provides that a
closed-end mortgage loan or an open-end line
of credit originated or purchased by a financial institution acting in a fiduciary capacity is an excluded transaction. A financial
institution acts in a fiduciary capacity if, for
example, the financial institution acts as a
trustee.

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Paragraph 3(c)(2)
1. Loan or line of credit secured by a lien on
unimproved land. Section 1003.3(c)(2) provides
that a closed-end mortgage loan or an openend line of credit secured by a lien on unimproved land is an excluded transaction. A
loan or line of credit is secured by a lien on
unimproved land if the loan or line of credit
is secured by vacant or unimproved property,
unless the institution knows, based on infor-

mation that it receives from the applicant or
borrower at the time the application is received or the credit decision is made, that
the proceeds of that loan or credit line will
be used within two years after closing or account opening to construct a dwelling on, or
to purchase a dwelling to be placed on, the
land. A loan or line of credit that is not excludable under § 1003.3(c)(2) nevertheless may
be excluded, for example, as temporary financing under § 1003.3(c)(3).
Paragraph 3(c)(3)
1. Temporary financing. Section 1003.3(c)(3)
provides that closed-end mortgage loans or
open-end lines of credit obtained for temporary financing are excluded transactions.
A loan or line of credit is considered temporary
financing
and
excluded
under
§ 1003.3(c)(3) if the loan or line of credit is designed to be replaced by permanent financing at a later time. For example:
i. Lender A extends credit in the form of a
bridge or swing loan to finance a borrower’s
down payment on a home purchase. The borrower pays off the bridge or swing loan with
funds from the sale of his or her existing
home and obtains permanent financing for
his or her new home from Lender A. The
bridge or swing loan is excluded as temporary financing under § 1003.3(c)(3).
ii. Lender A extends credit to finance construction of a dwelling. A new extension of
credit for permanent financing for the dwelling will be obtained, either from Lender A or
from another lender, and either through a refinancing of the initial construction loan or
a separate loan. The initial construction
loan is excluded as temporary financing
under § 1003.3(c)(3).
iii. Assume the same scenario as in comment 3(c)(3)–1.ii, except that the initial construction loan is, or may be, renewed one or
more times before the permanent financing
is made. The initial construction loan, including any renewal thereof, is excluded as
temporary financing under § 1003.3(c)(3).
iv. Lender A extends credit to finance construction of a dwelling. The loan automatically will convert to permanent financing
with Lender A once the construction phase is
complete. Under § 1003.3(c)(3), the loan is not
designed to be replaced by permanent financing and therefore the temporary financing
exclusion does not apply. See also comment
2(j)–3.
v. Lender A originates a loan with a ninemonth term to enable an investor to purchase a home, renovate it, and re-sell it before the term expires. Under § 1003.3(c)(3), the
loan is not designed to be replaced by permanent financing and therefore the temporary
financing exclusion does not apply. Such a
transaction is not temporary financing
under § 1003.3(c)(3) merely because its term is
short.

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Paragraph 3(c)(4)

Paragraph 3(c)(10)

1. Purchase of an interest in a pool of loans.
Section 1003.3(c)(4) provides that the purchase of an interest in a pool of closed-end
mortgage loans or open-end lines of credit is
an excluded transaction. The purchase of an
interest in a pool of loans or lines of credit
includes, for example, mortgage-participation certificates, mortgage-backed securities, or real estate mortgage investment conduits.

1. General. Section 1003.3(c)(10) provides a
special rule for reporting a closed-end mortgage loan or an open-end line of credit that
is or will be made primarily for a business or
commercial purpose. If an institution determines that a closed-end mortgage loan or an
open-end line of credit primarily is for a
business or commercial purpose, then the
loan or line of credit is a covered loan only
if it is a home improvement loan under
§ 1003.2(i), a home purchase loan under
§ 1003.2(j), or a refinancing under § 1003.2(p)
and no other exclusion applies. Section
1003.3(c)(10) does not categorically exclude
all business- or commercial-purpose loans
and lines of credit from coverage.
2. Primary purpose. An institution must determine in each case if a closed-end mortgage loan or an open-end line of credit primarily is for a business or commercial purpose. If a closed-end mortgage loan or an
open-end line of credit is deemed to be primarily for a business, commercial, or organizational purpose under Regulation Z, 12 CFR
1026.3(a) and its related commentary, then
the loan or line of credit also is deemed to be
primarily for a business or commercial purpose under § 1003.3(c)(10).
3. Examples—covered business- or commercialpurpose transactions. The following are examples of closed-end mortgage loans and openend lines of credit that are not excluded from
reporting under § 1003.3(c)(10), because they
primarily are for a business or commercial
purpose, but they also meet the definition of
a home improvement loan under § 1003.2(i), a
home purchase loan under § 1003.2(j), or a refinancing under § 1003.2(p):
i. A closed-end mortgage loan or an openend line of credit to purchase or to improve
a multifamily dwelling or a single-family investment property, or a refinancing of a
closed-end mortgage loan or an open-end line
of credit secured by a multifamily dwelling
or a single-family investment property;
ii. A closed-end mortgage loan or an openend line of credit to improve an office, for
example a doctor’s office, that is located in
a dwelling; and
iii. A closed-end mortgage loan or an openend line of credit to a corporation, if the
funds from the loan or line of credit will be
used to purchase or to improve a dwelling, or
if the transaction is a refinancing.
4. Examples—excluded business- or commercial-purpose transactions. The following are
examples of closed-end mortgage loans and
open-end lines of credit that are not covered
loans because they primarily are for a business or commercial purpose, but they do not
meet the definition of a home improvement
loan under § 1003.2(i), a home purchase loan
under § 1003.2(j), or a refinancing under
§ 1003.2(p):

Paragraph 3(c)(6)
1.
Mergers
and
acquisitions.
Section
1003.3(c)(6) provides that the purchase of
closed-end mortgage loans or open-end lines
of credit as part of a merger or acquisition,
or as part of the acquisition of all of the assets and liabilities of a branch office, are excluded transactions. If a financial institution
acquires loans or lines of credit in bulk from
another institution (for example, from the
receiver for a failed institution), but no
merger or acquisition of an institution, or
acquisition of a branch office, is involved
and no other exclusion applies, the acquired
loans or lines of credit are covered loans and
are reported as described in comment 4(a)–
1.iii.
Paragraph 3(c)(8)
1. Partial interest. Section 1003.3(c)(8) provides that the purchase of a partial interest
in a closed-end mortgage loan or an open-end
line of credit is an excluded transaction. If
an institution acquires only a partial interest in a loan or line of credit, the institution
does not report the transaction even if the
institution participated in the underwriting
and origination of the loan or line of credit.
If an institution acquires a 100 percent interest in a loan or line of credit, the transaction
is not excluded under § 1003.3(c)(8).

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Paragraph 3(c)(9)
1. Loan or line of credit used primarily for agricultural purposes. Section 1003.3(c)(9) provides that an institution does not report a
closed-end mortgage loan or an open-end line
of credit used primarily for agricultural purposes. A loan or line of credit is used primarily for agricultural purposes if its funds
will be used primarily for agricultural purposes, or if the loan or line of credit is secured by a dwelling that is located on real
property that is used primarily for agricultural purposes (e.g., a farm). An institution
may refer to comment 3(a)–8 in the official
interpretations of Regulation Z, 12 CFR part
1026, supplement I, for guidance on what is
an agricultural purpose. An institution may
use any reasonable standard to determine
the primary use of the property. An institution may select the standard to apply on a
case-by-case basis.

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i. A closed-end mortgage loan or an openend line of credit whose funds will be used
primarily to improve or expand a business,
for example to renovate a family restaurant
that is not located in a dwelling, or to purchase a warehouse, business equipment, or
inventory;
ii. A closed-end mortgage loan or an openend line of credit to a corporation whose
funds will be used primarily for business purposes, such as to purchase inventory; and
iii. A closed-end mortgage loan or an openend line of credit whose funds will be used
primarily for business or commercial purposes other than home purchase, home improvement, or refinancing, even if the loan
or line of credit is cross-collateralized by a
covered loan.
Paragraph 3(c)(11)
1. General. Section 1003.3(c)(11) provides
that a closed-end mortgage loan is an excluded transaction if a financial institution
originated fewer than 25 closed-end mortgage
loans in each of the two preceding calendar
years. For example, assume that a bank is a
financial institution in 2022 under § 1003.2(g)
because it originated 200 open-end lines of
credit in 2020, 250 open-end lines of credit in
2021, and met all of the other requirements
under § 1003.2(g)(1). Also assume that the
bank originated 10 and 20 closed-end mortgage loans in 2020 and 2021, respectively. The
open-end lines of credit that the bank originated, or for which it received applications,
during 2022 are covered loans and must be reported, unless they otherwise are excluded
transactions under § 1003.3(c). However, the
closed-end mortgage loans that the bank
originated, or for which it received applications, during 2022 are excluded transactions
under § 1003.3(c)(11) and need not be reported.
See comments 4(a)–2 through –4 for guidance
about the activities that constitute an origination.

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Paragraph 3(c)(12)
1. General. Section 1003.3(c)(12) provides
that an open-end line of credit is an excluded
transaction if a financial institution originated fewer than 100 open-end lines of credit
in each of the two preceding calendar years.
For example, assume that a bank is a financial institution in 2022 under § 1003.2(g) because it originated 50 closed-end mortgage
loans in 2020, 75 closed-end mortgage loans in
2021, and met all of the other requirements
under § 1003.2(g)(1). Also assume that the
bank originated 75 and 85 open-end lines of
credit in 2020 and 2021, respectively. The
closed-end mortgage loans that the bank
originated, or for which it received applications, during 2022 are covered loans and must
be reported, unless they otherwise are excluded transactions under § 1003.3(c). However, the open-end lines of credit that the

bank originated, or for which it received applications, during 2022 are excluded transactions under § 1003.3(c)(12) and need not be
reported. See comments 4(a)–2 through –4 for
guidance about the activities that constitute
an origination.
Section 1003.4—Compilation of Reportable
Data
4(a) Data Format and Itemization
1. General. Section 1003.4(a) describes a financial institution’s obligation to collect
data on applications it received, on covered
loans that it originated, and on covered
loans that it purchased during the calendar
year covered by the loan/application register.
i. A financial institution reports these data
even if the covered loans were subsequently
sold by the institution.
ii. A financial institution reports data for
applications that did not result in an origination but on which actions were taken–for
example, an application that the institution
denied, that it approved but that was not accepted, that it closed for incompleteness, or
that the applicant withdrew during the calendar year covered by the loan/application
register. A financial institution is required
to report data regarding requests under a
preapproval
program
(as
defined
in
§ 1003.2(b)(2)) only if the preapproval request
is denied, results in the origination of a
home purchase loan, or was approved but not
accepted.
iii. If a financial institution acquires covered loans in bulk from another institution
(for example, from the receiver for a failed
institution), but no merger or acquisition of
an institution, or acquisition of a branch office, is involved, the acquiring financial institution reports the covered loans as purchased loans.
iv. A financial institution reports the data
for an application on the loan/application
register for the calendar year during which
the application was acted upon even if the
institution received the application in a previous calendar year.
2. Originations and applications involving
more than one institution. Section 1003.4(a) requires a financial institution to collect certain information regarding applications for
covered loans that it receives and regarding
covered loans that it originates. The following provides guidance on how to report
originations and applications involving more
than one institution. The discussion below
assumes that all of the parties are financial
institutions as defined by § 1003.2(g). The
same principles apply if any of the parties is
not a financial institution. Comment 4(a)–3
provides examples of transactions involving
more than one institution, and comment
4(a)–4 discusses how to report actions taken
by agents.

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i. Only one financial institution reports
each originated covered loan as an origination. If more than one institution was involved in the origination of a covered loan,
the financial institution that made the credit decision approving the application before
closing or account opening reports the loan
as an origination. It is not relevant whether
the loan closed or, in the case of an application, would have closed in the institution’s
name. If more than one institution approved
an application prior to closing or account
opening and one of those institutions purchased the loan after closing, the institution
that purchased the loan after closing reports
the loan as an origination. If a financial institution reports a transaction as an origination, it reports all of the information required for originations, even if the covered
loan was not initially payable to the financial institution that is reporting the covered
loan as an origination.
ii. In the case of an application for a covered loan that did not result in an origination, a financial institution reports the action it took on that application if it made a
credit decision on the application or was reviewing the application when the application
was withdrawn or closed for incompleteness.
It is not relevant whether the financial institution received the application from the applicant or from another institution, such as
a broker, or whether another financial institution also reviewed and reported an action
taken on the same application.
3. Examples—originations and applications
involving more than one institution. The following scenarios illustrate how an institution reports a particular application or covered loan. The illustrations assume that all
of the parties are financial institutions as
defined by § 1003.2(g). However, the same
principles apply if any of the parties is not a
financial institution.
i. Financial Institution A received an application for a covered loan from an applicant and forwarded that application to Financial Institution B. Financial Institution
B reviewed the application and approved the
loan prior to closing. The loan closed in Financial Institution A’s name. Financial Institution B purchased the loan from Financial Institution A after closing. Financial Institution B was not acting as Financial Institution A’s agent. Since Financial Institution B made the credit decision prior to closing, Financial Institution B reports the
transaction as an origination, not as a purchase. Financial Institution A does not report the transaction.
ii. Financial Institution A received an application for a covered loan from an applicant and forwarded that application to Financial Institution B. Financial Institution
B reviewed the application before the loan
would have closed, but the application did
not result in an origination because Finan-

cial Institution B denied the application. Financial Institution B was not acting as Financial Institution A’s agent. Since Financial Institution B made the credit decision,
Financial Institution B reports the application as a denial. Financial Institution A does
not report the application. If, under the
same facts, the application was withdrawn
before Financial Institution B made a credit
decision, Financial Institution B would report the application as withdrawn and Financial Institution A would not report the
application.
iii. Financial Institution A received an application for a covered loan from an applicant and approved the application before
closing the loan in its name. Financial Institution A was not acting as Financial Institution B’s agent. Financial Institution B purchased the covered loan from Financial Institution A. Financial Institution B did not
review the application before closing. Financial Institution A reports the loan as an
origination. Financial Institution B reports
the loan as a purchase.
iv. Financial Institution A received an application for a covered loan from an applicant. If approved, the loan would have closed
in Financial Institution B’s name. Financial
Institution A denied the application without
sending it to Financial Institution B for approval. Financial Institution A was not acting as Financial Institution B’s agent. Since
Financial Institution A made the credit decision before the loan would have closed, Financial Institution A reports the application. Financial Institution B does not report
the application.
v. Financial Institution A reviewed an application and made the credit decision to approve a covered loan using the underwriting
criteria provided by a third party (e.g., another financial institution, Fannie Mae, or
Freddie Mac). The third party did not review
the application and did not make a credit decision prior to closing. Financial Institution
A was not acting as the third party’s agent.
Financial Institution A reports the application or origination. If the third party purchased the loan and is subject to Regulation
C, the third party reports the loan as a purchase whether or not the third party reviewed the loan after closing. Assume the
same facts, except that Financial Institution
A approved the application, and the applicant chose not to accept the loan from Financial Institution A. Financial Institution
A reports the application as approved but
not accepted and the third party, assuming
the third party is subject to Regulation C,
does not report the application.
vi. Financial Institution A reviewed and
made the credit decision on an application
based on the criteria of a third-party insurer
or guarantor (for example, a government or

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private insurer or guarantor). Financial Institution A reports the action taken on the
application.
vii. Financial Institution A received an application for a covered loan and forwarded it
to Financial Institutions B and C. Financial
Institution A made a credit decision, acting
as Financial Institution D’s agent, and approved the application. The applicant did not
accept the loan from Financial Institution
D. Financial Institution D reports the application as approved but not accepted. Financial Institution A does not report the application. Financial Institution B made a credit
decision, approving the application, the applicant accepted the offer of credit from Financial Institution B, and credit was extended. Financial Institution B reports the
origination. Financial Institution C made a
credit decision and denied the application.
Financial Institution C reports the application as denied.
4. Agents. If a financial institution made
the credit decision on a covered loan or application through the actions of an agent,
the institution reports the application or
origination. State law determines whether
one party is the agent of another. For example, acting as Financial Institution A’s
agent, Financial Institution B approved an
application prior to closing and a covered
loan was originated. Financial Institution A
reports the loan as an origination.
5. Purchased loans. i. A financial institution is required to collect data regarding
covered loans it purchases. For purposes of
§ 1003.4(a), a purchase includes a repurchase
of a covered loan, regardless of whether the
institution chose to repurchase the covered
loan or was required to repurchase the covered loan because of a contractual obligation
and regardless of whether the repurchase occurs within the same calendar year that the
covered loan was originated or in a different
calendar year. For example, assume that Financial Institution A originates or purchases
a covered loan and then sells it to Financial
Institution B, who later requires Financial
Institution A to repurchase the covered loan
pursuant to the relevant contractual obligations. Financial Institution B reports the
purchase from Financial Institution A, assuming it is a financial institution as defined
under § 1003.2(g). Financial Institution A reports the repurchase from Financial Institution B as a purchase.
ii. In contrast, for purposes of § 1003.4(a), a
purchase does not include a temporary transfer of a covered loan to an interim funder or
warehouse creditor as part of an interim
funding agreement under which the originating financial institution is obligated to
repurchase the covered loan for sale to a subsequent investor. Such agreements, often referred to as ‘‘repurchase agreements,’’ are
sometimes employed as functional equivalents of warehouse lines of credit. Under

these agreements, the interim funder or
warehouse creditor acquires legal title to the
covered loan, subject to an obligation of the
originating institution to repurchase at a future date, rather than taking a security interest in the covered loan as under the terms
of a more conventional warehouse line of
credit. To illustrate, assume Financial Institution A has an interim funding agreement
with Financial Institution B to enable Financial Institution B to originate loans. Assume further that Financial Institution B
originates a covered loan and that, pursuant
to this agreement, Financial Institution A
takes a temporary transfer of the covered
loan until Financial Institution B arranges
for the sale of the covered loan to a subsequent investor and that Financial Institution B repurchases the covered loan to enable it to complete the sale to the subsequent investor (alternatively, Financial Institution A may transfer the covered loan directly to the subsequent investor at Financial Institution B’s direction, pursuant to
the interim funding agreement). The subsequent investor could be, for example, a financial institution or other entity that intends
to hold the loan in portfolio, a GSE or other
securitizer, or a financial institution or
other entity that intends to package and sell
multiple loans to a GSE or other securitizer.
In this example, the temporary transfer of
the covered loan from Financial Institution
B to Financial Institution A is not a purchase, and any subsequent transfer back to
Financial Institution B for delivery to the
subsequent investor is not a purchase, for
purposes of § 1003.4(a). Financial Institution
B reports the origination of the covered loan
as well as its sale to the subsequent investor.
If the subsequent investor is a financial institution under § 1003.2(g), it reports a purchase of the covered loan pursuant to
§ 1003.4(a), regardless of whether it acquired
the covered loan from Financial Institution
B or directly from Financial Institution A.
Paragraph 4(a)(1)(i)
1.
ULI—uniqueness.
Section
1003.4(a)(1)(i)(B)(2) requires a financial institution that assigns a universal loan identifier (ULI) to each covered loan or application
(except as provided in § 1003.4(a)(1)(i)(D) and
(E)) to ensure that the character sequence it
assigns is unique within the institution and
used only for the covered loan or application.
A financial institution should assign only
one ULI to any particular covered loan or
application, and each ULI should correspond
to a single application and ensuing loan in
the case that the application is approved and
a loan is originated. A financial institution
may use a ULI that was reported previously
to refer only to the same loan or application
for which the ULI was used previously or a
loan that ensues from an application for

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which the ULI was used previously. A financial institution may not report an application for a covered loan in 2030 using the same
ULI that was reported for a covered loan
that was originated in 2020. Similarly,
refinancings or applications for refinancing
should be assigned a different ULI than the
loan that is being refinanced. A financial institution with multiple branches must ensure that its branches do not use the same
ULI to refer to multiple covered loans or applications.
2. ULI—privacy. Section 1003.4(a)(1)(i)(B)(3)
prohibits a financial institution from including information that could be used to directly identify the applicant or borrower in
the identifier that it assigns for the application or covered loan of the applicant or borrower. Information that could be used to directly identify the applicant or borrower includes, but is not limited to, the applicant’s
or borrower’s name, date of birth, Social Security number, official government-issued
driver’s license or identification number,
alien registration number, government passport number, or employer or taxpayer identification number.
3. ULI—purchased covered loan. If a financial institution has previously reported a
covered loan with a ULI under this part, a financial institution that purchases that covered loan must use the ULI that was previously reported under this part. For example, if a loan origination was previously reported under this part with a ULI, the financial institution that purchases the covered
loan would report the purchase of the covered loan using the same ULI. A financial institution that purchases a covered loan must
use the ULI that was assigned by the financial institution that originated the covered
loan. For example, if a financial institution
that submits an annual loan/application register pursuant to § 1003.5(a)(1)(i) originates a
covered loan that is purchased by a financial
institution that submits a quarterly loan/application
register
pursuant
to
§ 1003.5(a)(1)(ii), the financial institution that
purchased the covered loan must use the ULI
that was assigned by the financial institution that originated the covered loan. A financial institution that purchases a covered
loan assigns a ULI and records and submits
it in its loan/application register pursuant to
§ 1003.5(a)(1)(i) or (ii), whichever is applicable,
if the covered loan was not assigned a ULI by
the financial institution that originated the
loan because, for example, the loan was
originated prior to January 1, 2018.
4. ULI—reinstated or reconsidered application. A financial institution may, at its option, use a ULI previously reported under
this part if, during the same calendar year,
an applicant asks the institution to reinstate a counteroffer that the applicant previously did not accept or asks the financial
institution to reconsider an application that

was previously denied, withdrawn, or closed
for incompleteness. For example, if a financial institution reports a denied application
in its second-quarter 2020 data submission,
pursuant to § 1003.5(a)(1)(ii), but then reconsiders the application, which results in an
origination in the third quarter of 2020, the
financial institution may report the origination in its third-quarter 2020 data submission
using the same ULI that was reported for the
denied application in its second-quarter 2020
data submission, so long as the financial institution treats the transaction as a continuation of the application. However, a financial institution may not use a ULI previously reported if it reinstates or reconsiders an application that occurred and was
reported in a prior calendar year. For example, if a financial institution reports a denied
application in its fourth-quarter 2020 data
submission, pursuant to § 1003.5(a)(1)(ii), but
then reconsiders the application resulting in
an origination in the first quarter of 2021, the
financial institution reports a denied application under the original ULI in its fourthquarter 2020 data submission and an approved application with a different ULI in its
first-quarter 2021 data submission, pursuant
to § 1003.5(a)(1)(ii).
5.
ULI—check
digit.
Section
1003.(4)(a)(1)(i)(C) requires that the two
right-most characters in the ULI represent
the check digit. Appendix C prescribes the
requirements for generating a check digit
and validating a ULI.
Paragraph 4(a)(1)(ii)
1. Application date—consistency. Section
1003.4(a)(1)(ii) requires that, in reporting the
date of application, a financial institution
report the date it received the application,
as defined under § 1003.2(b), or the date shown
on the application form. Although a financial institution need not choose the same approach for its entire HMDA submission, it
should be generally consistent (such as by
routinely using one approach within a particular division of the institution or for a
category of loans). If the financial institution chooses to report the date shown on the
application form and the institution retains
multiple versions of the application form,
the institution reports the date shown on the
first application form satisfying the application definition provided under § 1003.2(b).
2. Application date—indirect application. For
an application that was not submitted directly to the financial institution, the institution may report the date the application
was received by the party that initially received the application, the date the application was received by the institution, or the
date shown on the application form. Although an institution need not choose the
same approach for its entire HMDA submission, it should be generally consistent (such

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as by routinely using one approach within a
particular division of the institution or for a
category of loans).
3. Application date—reinstated application.
If, within the same calendar year, an applicant asks a financial institution to reinstate
a counteroffer that the applicant previously
did not accept (or asks the institution to reconsider an application that was denied,
withdrawn, or closed for incompleteness),
the institution may treat that request as the
continuation of the earlier transaction using
the same ULI or as a new transaction with a
new ULI. If the institution treats the request
for reinstatement or reconsideration as a
new transaction, it reports the date of the
request as the application date. If the institution does not treat the request for reinstatement or reconsideration as a new transaction, it reports the original application
date.
Paragraph 4(a)(2)
1. Loan type—general. If a covered loan is
not, or in the case of an application would
not have been, insured by the Federal Housing Administration, guaranteed by the Veterans Administration, or guaranteed by the
Rural Housing Service or the Farm Service
Agency, an institution complies with
§ 1003.4(a)(2) by reporting the covered loan as
not insured or guaranteed by the Federal
Housing Administration, Veterans Administration, Rural Housing Service, or Farm
Service Agency.

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Paragraph 4(a)(3)
1. Purpose—statement of applicant. A financial institution may rely on the oral or written statement of an applicant regarding the
proposed use of covered loan proceeds. For
example, a lender could use a check-box or a
purpose line on a loan application to determine whether the applicant intends to use
covered loan proceeds for home improvement
purposes. If an applicant provides no statement as to the proposed use of covered loan
proceeds and the covered loan is not a home
purchase loan, cash-out refinancing, or refinancing, a financial institution reports the
covered loan as for a purpose other than
home purchase, home improvement, refinancing, or cash-out refinancing for purposes
of § 1003.4(a)(3).
2. Purpose—refinancing and cash-out refinancing. Section 1003.4(a)(3) requires a financial institution to report whether a covered
loan is, or an application is for, a refinancing
or a cash-out refinancing. A financial institution reports a covered loan or an application as a cash-out refinancing if it is a refinancing as defined by § 1003.2(p) and the institution considered it to be a cash-out refinancing in processing the application or setting the terms (such as the interest rate or

origination charges) under its guidelines or
an investor’s guidelines. For example:
i. Assume a financial institution considers
an application for a loan product to be a
cash-out refinancing under an investor’s
guidelines because of the amount of cash received by the borrower at closing or account
opening. Assume also that under the investor’s guidelines, the applicant qualifies for
the loan product and the financial institution approves the application, originates the
covered loan, and sets the terms of the covered loan consistent with the loan product.
In this example, the financial institution
would report the covered loan as a cash-out
refinancing for purposes of § 1003.4(a)(3).
ii. Assume a financial institution does not
consider an application for a covered loan to
be a cash-out refinancing under its own
guidelines because the amount of cash received by the borrower does not exceed a certain threshold. Assume also that the institution approves the application, originates the
covered loan, and sets the terms of the covered loan consistent with its own guidelines
applicable to refinancings other than cashout refinancings. In this example, the financial institution would report the covered
loan as a refinancing for purposes of
§ 1003.4(a)(3).
iii. Assume a financial institution does not
distinguish between a cash-out refinancing
and a refinancing under its own guidelines,
and sets the terms of all refinancings without regard to the amount of cash received by
the borrower at closing or account opening,
and does not offer loan products under investor guidelines. In this example, the financial
institution reports all covered loans and applications for covered loans that are defined
by § 1003.2(p) as refinancings for purposes of
§ 1003.4(a)(3).
3. Purpose—multiple-purpose loan. Section
1003.4(a)(3) requires a financial institution to
report the purpose of a covered loan or application. If a covered loan is a home purchase
loan as well as a home improvement loan, a
refinancing, or a cash-out refinancing, an institution complies with § 1003.4(a)(3) by reporting the loan as a home purchase loan. If
a covered loan is a home improvement loan
as well as a refinancing or cash-out refinancing, but the covered loan is not a home
purchase loan, an institution complies with
§ 1003.4(a)(3) by reporting the covered loan as
a refinancing or a cash-out refinancing, as
appropriate. If a covered loan is a refinancing or cash-out refinancing as well as
for another purpose, such as for the purpose
of paying educational expenses, but the covered loan is not a home purchase loan, an institution complies with § 1003.4(a)(3) by reporting the covered loan as a refinancing or
a cash-out refinancing, as appropriate. See
comment 4(a)(3)–2. If a covered loan is a
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home purchase loan, a refinancing, or cashout refinancing, an institution complies with
§ 1003.4(a)(3) by reporting the covered loan as
a home improvement loan. See comment 2(i)–
1.
4. Purpose—other. If a covered loan is not,
or an application is not for, a home purchase
loan, a home improvement loan, a refinancing, or a cash-out refinancing, a financial institution complies with § 1003.4(a)(3) by
reporting the covered loan or application as
for a purpose other than home purchase,
home improvement, refinancing, or cash-out
refinancing. For example, if a covered loan is
for the purpose of paying educational expenses, the financial institution complies
with § 1003.4(a)(3) by reporting the covered
loan as for a purpose other than home purchase, home improvement, refinancing, or
cash-out refinancing. Section 1003.4(a)(3) also
requires an institution to report a covered
loan or application as for a purpose other
than home purchase, home improvement, refinancing, or cash-out refinancing if it is a
refinancing but, under the terms of the
agreement, the financial institution was unconditionally obligated to refinance the obligation subject to conditions within the borrower’s control.
5. Purpose—business or commercial purpose
loans. If a covered loan primarily is for a
business or commercial purpose as described
in § 1003.3(c)(10) and comment 3(c)(10)–2 and is
a home purchase loan, home improvement
loan, or a refinancing, § 1003.4(a)(3) requires
the financial institution to report the applicable loan purpose. If a loan primarily is for
a business or commercial purpose but is not
a home purchase loan, home improvement
loan, or a refinancing, the loan is an excluded transaction under § 1003.3(c)(10).

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Paragraph 4(a)(4)
1. Request under a preapproval program. Section 1003.4(a)(4) requires a financial institution to report whether an application or covered loan involved a request for a
preapproval of a home purchase loan under a
preapproval
program
as
defined
by
§ 1003.2(b)(2). If an application or covered
loan did not involve a request for a
preapproval of a home purchase loan under a
preapproval
program
as
defined
by
§ 1003.2(b)(2), a financial institution complies
with § 1003.4(a)(4) by reporting that the application or covered loan did not involve such a
request, regardless of whether the institution has such a program and the applicant
did not apply through that program or the
institution does not have a preapproval program as defined by § 1003.2(b)(2).
2. Scope of requirement. A financial institution reports that the application or covered
loan did not involve a preapproval request
for a purchased covered loan; an application
or covered loan for any purpose other than a
home purchase loan; an application for a

home purchase loan or a covered loan that is
a home purchase loan secured by a multifamily dwelling; an application or covered
loan that is an open-end line of credit or a
reverse mortgage; or an application that is
denied, withdrawn by the applicant, or
closed for incompleteness.
Paragraph 4(a)(5)
1. Modular homes and prefabricated components. Covered loans or applications related
to modular homes should be reported with a
construction method of site-built, regardless
of whether they are on-frame or off-frame
modular homes. Modular homes comply with
local or other recognized buildings codes
rather than standards established by the National Manufactured Housing Construction
and Safety Standards Act, 42 U.S.C. 5401 et
seq. Modular homes are not required to have
HUD Certification Labels under 24 CFR
3280.11 or data plates under 24 CFR 3280.5.
Modular homes may have a certification
from a State licensing agency that documents compliance with State or other applicable building codes. On-frame modular
homes are constructed on permanent metal
chassis similar to those used in manufactured homes. The chassis are not removed on
site and are secured to the foundation. Offframe modular homes typically have floor
construction similar to the construction of
other site-built homes, and the construction
typically includes wooden floor joists and
does not include permanent metal chassis.
Dwellings built using prefabricated components assembled at the dwelling’s permanent
site should also be reported with a construction method of site-built.
2. Multifamily dwelling. For a covered loan
or an application for a covered loan related
to a multifamily dwelling, the financial institution should report the construction
method as site-built unless the multifamily
dwelling is a manufactured home community, in which case the financial institution
should report the construction method as
manufactured home.
3. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.
Paragraph 4(a)(6)
1. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.
2. Principal residence. Section 1003.4(a)(6) requires a financial institution to identify
whether the property to which the covered
loan or application relates is or will be used
as a residence that the applicant or borrower
physically occupies and uses, or will occupy
and use, as his or her principal residence.
For purposes of § 1003.4(a)(6), an applicant or

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borrower can have only one principal residence at a time. Thus, a vacation or other
second home would not be a principal residence. However, if an applicant or borrower
buys or builds a new dwelling that will become the applicant’s or borrower’s principal
residence within a year or upon the completion of construction, the new dwelling is considered the principal residence for purposes
of applying this definition to a particular
transaction.
3. Second residences. Section 1003.4(a)(6) requires a financial institution to identify
whether the property to which the loan or
application relates is or will be used as a second residence. For purposes of § 1003.4(a)(6), a
property is a second residence of an applicant or borrower if the property is or will be
occupied by the applicant or borrower for a
portion of the year and is not the applicant’s
or borrower’s principal residence. For example, if a person purchases a property, occupies the property for a portion of the year,
and rents the property for the remainder of
the year, the property is a second residence
for purposes of § 1003.4(a)(6). Similarly, if a
couple occupies a property near their place
of employment on weekdays, but the couple
returns to their principal residence on weekends, the property near the couple’s place of
employment is a second residence for purposes of § 1003.4(a)(6).
4. Investment properties. Section 1003.4(a)(6)
requires a financial institution to identify
whether the property to which the covered
loan or application relates is or will be used
as an investment property. For purposes of
§ 1003.4(a)(6), a property is an investment
property if the borrower does not, or the applicant will not, occupy the property. For example, if a person purchases a property, does
not occupy the property, and generates income by renting the property, the property
is an investment property for purposes of
§ 1003.4(a)(6). Similarly, if a person purchases
a property, does not occupy the property,
and does not generate income by renting the
property, but intends to generate income by
selling the property, the property is an investment
property
for
purposes
of
§ 1003.4(a)(6). Section 1003.4(a)(6) requires a financial institution to identify a property as
an investment property if the borrower or
applicant does not or will not occupy the
property, even if the borrower or applicant
does not consider the property as owned for
investment purposes. For example, if a corporation purchases a property that is a
dwelling under § 1003.2(f), that it does not occupy, but that is for the long-term residential use of its employees, the property is an
investment
property
for
purposes
of
§ 1003.4(a)(6), even if the corporation considers the property as owned for business
purposes rather than investment purposes,
does not generate income by renting the
property, and does not intend to generate in-

come by selling the property at some point
in time. If the property is for transitory use
by employees, the property would not be
considered a dwelling under § 1003.2(f). See
comment 2(f)–3.
5. Purchased covered loans. For purchased
covered loans, a financial institution may
report principal residence unless the loan
documents or application indicate that the
property will not be occupied as a principal
residence.
Paragraph 4(a)(7)
1. Covered loan amount—counteroffer. If an
applicant accepts a counteroffer for an
amount different from the amount for which
the applicant applied, the financial institution reports the covered loan amount granted. If an applicant does not accept a
counteroffer or fails to respond, the institution reports the amount initially requested.
2. Covered loan amount—application approved but not accepted or preapproval request
approved but not accepted. A financial institution reports the covered loan amount that
was approved.
3. Covered loan amount—preapproval request
denied, application denied, closed for incompleteness or withdrawn. For a preapproval request that was denied, and for an application
that was denied, closed for incompleteness,
or withdrawn, a financial institution reports
the amount for which the applicant applied.
4. Covered loan amount—multiple-purpose
loan. A financial institution reports the entire amount of the covered loan, even if only
a part of the proceeds is intended for home
purchase, home improvement, or refinancing.
5. Covered loan amount—closed-end mortgage
loan. For a closed-end mortgage loan, other
than a purchased loan, an assumption, or a
reverse mortgage, a financial institution reports the amount to be repaid as disclosed on
the legal obligation. For a purchased closedend mortgage loan or an assumption of a
closed-end mortgage loan, a financial institution reports the unpaid principal balance
at the time of purchase or assumption.
6. Covered loan amount—open-end line of
credit. For an open-end line of credit, a financial institution reports the entire amount of
credit available to the borrower under the
terms of the open-end plan, including a purchased open-end line of credit and an assumption of an open-end line of credit, but
not for a reverse mortgage open-end line of
credit.
7. Covered loan amount—refinancing. For a
refinancing, a financial institution reports
the amount of credit extended under the
terms of the new debt obligation.
8. Covered loan amount—home improvement
loan. A financial institution reports the entire amount of a home improvement loan,
even if only a part of the proceeds is intended for home improvement.

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9. Covered loan amount—non-federally insured reverse mortgage. A financial institution
reports the initial principal limit of a nonfederally insured reverse mortgage as set
forth in § 1003.4(a)(7)(iii).

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Paragraph 4(a)(8)(i)
1. Action taken—covered loan originated. A
financial institution reports that the covered
loan was originated if the financial institution made a credit decision approving the application before closing or account opening
and that credit decision results in an extension of credit. The same is true for an application that began as a request for a
preapproval that subsequently results in a
covered loan being originated. See comments
4(a)–2 through –4 for guidance on transactions in which more than one institution
is involved.
2. Action taken—covered loan purchased. A
financial institution reports that the covered
loan was purchased if the covered loan was
purchased by the financial institution after
closing or account opening and the financial
institution did not make a credit decision on
the application prior to closing or account
opening, or if the financial institution did
make a credit decision on the application
prior to closing or account opening, but is
repurchasing the loan from another entity
that the loan was sold to. See comment 4(a)–
5. See comments 4(a)–2 through –4 for guidance on transactions in which more than one
financial institution is involved.
3. Action taken—application approved but not
accepted. A financial institution reports application approved but not accepted if the financial institution made a credit decision
approving the application before closing or
account opening, subject solely to outstanding conditions that are customary commitment or closing conditions, but the applicant or the party that initially received the
application fails to respond to the financial
institution’s approval within the specified
time, or the closed-end mortgage loan was
not otherwise consummated or the account
was not otherwise opened. See comment
4(a)(8)(i)–13.
4. Action taken—application denied. A financial institution reports that the application
was denied if it made a credit decision denying the application before an applicant withdraws the application or the file is closed for
incompleteness. See comments 4(a)–2 through
–4 for guidance on transactions in which
more than one institution is involved.
5. Action taken—application withdrawn. A financial institution reports that the application was withdrawn when the application is
expressly withdrawn by the applicant before
the financial institution makes a credit decision denying the application, before the financial institution makes a credit decision
approving the application, or before the file
is closed for incompleteness. A financial in-

stitution also reports application withdrawn
if the financial institution provides a conditional approval specifying underwriting or
creditworthiness conditions, pursuant to
comment 4(a)(8)(i)–13, and the application is
expressly withdrawn by the applicant before
the applicant satisfies all specified underwriting or creditworthiness conditions. A
preapproval request that is withdrawn is not
reportable under HMDA. See § 1003.4(a).
6. Action taken—file closed for incompleteness. A financial institution reports that the
file was closed for incompleteness if the financial institution sent a written notice of
incompleteness under Regulation B, 12 CFR
1002.9(c)(2), and the applicant did not respond
to the request for additional information
within the period of time specified in the notice before the applicant satisfies all underwriting or creditworthiness conditions. See
comment 4(a)(8)(i)–13. If a financial institution then provides a notification of adverse
action on the basis of incompleteness under
Regulation B, 12 CFR 1002.9(c)(i), the financial institution may report the action taken
as either file closed for incompleteness or application denied. A preapproval request that
is closed for incompleteness is not reportable
under HMDA. See § 1003.4(a).
7. Action taken—preapproval request denied.
A financial institution reports that the
preapproval request was denied if the application was a request for a preapproval under
a preapproval program as defined in
§ 1003.2(b)(2) and the institution made a credit decision denying the preapproval request.
8. Action taken—preapproval request approved but not accepted. A financial institution reports that the preapproval request
was approved but not accepted if the application was a request for a preapproval under a
preapproval
program
as
defined
in
§ 1003.2(b)(2) and the institution made a credit decision approving the preapproval request
but the application did not result in a covered loan originated by the financial institution.
9. Action taken—counteroffers. If a financial
institution makes a counteroffer to lend on
terms different from the applicant’s initial
request (for example, for a shorter loan maturity, with a different interest rate, or in a
different amount) and the applicant does not
accept the counteroffer or fails to respond,
the institution reports the action taken as a
denial on the original terms requested by the
applicant. If the applicant accepts, the financial institution reports the action taken as
covered loan originated.
10. Action taken—rescinded transactions. If a
borrower rescinds a transaction after closing
and before a financial institution is required
to submit its loan/application register containing the information for the transaction
under § 1003.5(a), the institution reports the
transaction as an application that was approved but not accepted.

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11. Action taken—purchased covered loans.
An institution reports the covered loans that
it purchased during the calendar year. An institution does not report the covered loans
that it declined to purchase, unless, as discussed in comments 4(a)–2 through –4, the institution reviewed the application prior to
closing, in which case it reports the application or covered loan according to comments
4(a)–2 through –4.
12. Action taken—repurchased covered loans.
See comment 4(a)–5 regarding reporting requirements when a covered loan is repurchased by the originating financial institution.
13. Action taken—conditional approvals. If an
institution issues an approval other than a
commitment pursuant to a preapproval program as defined under § 1003.2(b)(2), and that
approval is subject to the applicant meeting
certain conditions, the institution reports
the action taken as provided below dependent on whether the conditions are solely customary commitment or closing conditions or
if the conditions include any underwriting or
creditworthiness conditions.
i. Action taken examples. If the approval is
conditioned on satisfying underwriting or
creditworthiness conditions and they are not
met, the institution reports the action taken
as a denial. If, however, the conditions involve submitting additional information
about underwriting or creditworthiness that
the institution needs to make the credit decision, and the institution has sent a written
notice of incompleteness under Regulation
B, 12 CFR 1002.9(c)(2), and the applicant did
not respond within the period of time specified in the notice, the institution reports the
action taken as file closed for incompleteness. See comment 4(a)(8)(i)–6. If the conditions are solely customary commitment or
closing conditions and the conditions are not
met, the institution reports the action taken
as approved but not accepted. If all the conditions (underwriting, creditworthiness, or
customary commitment or closing conditions) are satisfied and the institution agrees
to extend credit but the covered loan is not
originated, the institution reports the action
taken as application approved but not accepted. If the applicant expressly withdraws
before satisfying all underwriting or creditworthiness conditions and before the institution denies the application or closes the file
for incompleteness, the institution reports
the action taken as application withdrawn.
If all underwriting and creditworthiness conditions have been met, and the outstanding
conditions are solely customary commitment or closing conditions and the applicant
expressly withdraws before the covered loan
is originated, the institution reports the action taken as application approved but not
accepted.
ii. Customary commitment or closing conditions. Customary commitment or closing

conditions include, for example: a clear-title
requirement, an acceptable property survey,
acceptable title insurance binder, clear termite inspection, a subordination agreement
from another lienholder, and, where the applicant plans to use the proceeds from the
sale of one home to purchase another, a settlement statement showing adequate proceeds from the sale.
iii. Underwriting or creditworthiness conditions. Underwriting or creditworthiness conditions include, for example: conditions that
constitute a counter-offer, such as a demand
for a higher down-payment; satisfactory
debt-to-income or loan-to-value ratios, a determination of need for private mortgage insurance, or a satisfactory appraisal requirement; or verification or confirmation, in
whatever form the institution requires, that
the applicant meets underwriting conditions
concerning applicant creditworthiness, including documentation or verification of income or assets.
14. Action taken—pending applications. An
institution does not report any covered loan
application still pending at the end of the
calendar year; it reports that application on
its loan/application register for the year in
which final action is taken.
Paragraph 4(a)(8)(ii)
1. Action taken date—general. A financial institution reports the date of the action
taken.
2. Action taken date—applications denied and
files closed for incompleteness. For applications, including requests for a preapproval,
that are denied or for files closed for incompleteness, the financial institution reports
either the date the action was taken or the
date the notice was sent to the applicant.
3. Action taken date—application withdrawn.
For applications withdrawn, the financial institution may report the date the express
withdrawal was received or the date shown
on the notification form in the case of a
written withdrawal.
4. Action taken date—approved but not accepted. For a covered loan approved by an institution but not accepted by the applicant,
the institution reports any reasonable date,
such as the approval date, the deadline for
accepting the offer, or the date the file was
closed. Although an institution need not
choose the same approach for its entire
HMDA submission, it should be generally
consistent (such as by routinely using one
approach within a particular division of the
institution or for a category of covered
loans).
5. Action taken date—originations. For covered
loan
originations,
including
a
preapproval request that leads to an origination by the financial institution, an institution generally reports the closing or account
opening date. For covered loan originations
that an institution acquires from a party

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that initially received the application, the
institution reports either the closing or account opening date, or the date the institution acquired the covered loan from the
party that initially received the application.
If the disbursement of funds takes place on a
date later than the closing or account opening date, the institution may use the date of
initial disbursement. For a construction/permanent covered loan, the institution reports
either the closing or account opening date,
or the date the covered loan converts to the
permanent financing. Although an institution need not choose the same approach for
its entire HMDA submission, it should be
generally consistent (such as by routinely
using one approach within a particular division of the institution or for a category of
covered loans). Notwithstanding this flexibility regarding the use of the closing or account opening date in connection with reporting the date action was taken, the institution must report the origination as occurring in the year in which the origination
goes to closing or the account is opened.
6. Action taken date—loan purchased. For
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Paragraph 4(a)(9)
1. Multiple properties with one property taken
as security. If a covered loan is related to
more than one property, but only one property is taken as security (or, in the case of
an application, proposed to be taken as security), a financial institution reports the information required by § 1003.4(a)(9) for the
property taken as or proposed to be taken as
security. A financial institution does not report the information required by § 1003.4(a)(9)
for the property or properties related to the
loan that are not taken as or proposed to be
taken as security. For example, if a covered
loan is secured by property A, and the proceeds are used to purchase or rehabilitate (or
to refinance home purchase or home improvement loans related to) property B, the
institution reports the information required
by § 1003.4(a)(9) for property A and does not
report
the
information
required
by
§ 1003.4(a)(9) for property B.
2. Multiple properties with more than one
property taken as security. If more than one
property is taken or, in the case of an application, proposed to be taken as security for
a single covered loan, a financial institution
reports the covered loan or application in a
single entry on its loan/application register
and provides the information required by
§ 1003.4(a)(9) for one of the properties taken
as security that contains a dwelling. A financial institution does not report information
about the other properties taken as security.
If an institution is required to report specific
information about the property identified in
§ 1003.4(a)(9), the institution reports the in-

formation that relates to the property identified in § 1003.4(a)(9). For example, Financial
Institution A originated a covered loan that
is secured by both property A and property
B, each of which contains a dwelling. Financial Institution A reports the loan as one
entry on its loan/application register, reporting the information required by § 1003.4(a)(9)
for either property A or property B. If Financial Institution A elects to report the information required by § 1003.4(a)(9) about property A, Financial Institution A also reports
the information required by § 1003.4(a)(5), (6),
(14), (29), and (30) related to property A. For
aspects of the entries that do not refer to the
property identified in § 1003.4(a)(9) (i.e.,
§ 1003.4(a)(1) through (4), (7), (8), (10) through
(13), (15) through (28), (31) through (38)), Financial Institution A reports the information applicable to the covered loan or application and not information that relates only
to the property identified in § 1003.4(a)(9).
3. Multifamily dwellings. A single multifamily dwelling may have more than one
postal address. For example, three apartment buildings, each with a different street
address, comprise a single multifamily
dwelling that secures a covered loan. For the
purposes of § 1003.4(a)(9), a financial institution reports the information required by
§ 1003.4(a)(9) in the same manner described in
comment 4(a)(9)–2.
4. Loans purchased from another institution.
The requirement to report the property location information required by § 1003.4(a)(9) applies not only to applications and originations but also to purchased covered loans.
5. Manufactured home. If the site of a manufactured home has not been identified, a financial institution complies by reporting
that the information required by § 1003.4(a)(9)
is not applicable.
Paragraph 4(a)(9)(i)
1. General. Section 1003.4(a)(9)(i) requires a
financial institution to report the property
address of the location of the property securing a covered loan or, in the case of an application, proposed to secure a covered loan.
The address should correspond to the property identified on the legal obligation related to the covered loan. For applications
that did not result in an origination, the address should correspond to the location of
the property proposed to secure the loan as
identified by the applicant. For example, assume a loan is secured by a property located
at 123 Main Street, and the applicant’s or
borrower’s mailing address is a post office
box. The financial institution should not report the post office box, and should report
123 Main Street.
2. Property address—format. A financial institution complies with the requirements in
§ 1003.4(a)(9)(i) by reporting the following information about the physical location of the
property securing the loan.

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i. Street address. When reporting the street
address of the property, a financial institution complies by including, as applicable, the
primary address number, the predirectional,
the street name, street prefixes and/or suffixes, the postdirectional, the secondary address identifier, and the secondary address,
as applicable. For example, 100 N Main ST
Apt 1.
ii. City name. A financial institution complies by reporting the name of the city in
which the property is located.
iii. State name. A financial institution complies by reporting the two letter State code
for the State in which the property is located, using the U.S. Postal Service official
State abbreviations.
iv. Zip Code. A financial institution complies by reporting the five or nine digit Zip
Code in which the property is located.
3. Property address—not applicable. A financial institution complies with § 1003.4(a)(9)(i)
by indicating that the requirement is not applicable if the property address of the property securing the covered loan is not known.
For example, if the property did not have a
property address at closing or if the applicant did not provide the property address of
the property to the financial institution before the application was denied, withdrawn,
or closed for incompleteness, the financial
institution complies with § 1003.4(a)(9)(i) by
indicating that the requirement is not applicable.
Paragraph 4(a)(9)(ii)(B)
1. General. A financial institution complies
by reporting the five-digit Federal Information Processing Standards (FIPS) numerical
county code.
Paragraph 4(a)(9)(ii)(C)
1. General. Census tract numbers are defined by the U.S. Census Bureau. A financial
institution complies with § 1003.4(a)(9)(ii)(C)
if it uses the boundaries and codes in effect
on January 1 of the calendar year covered by
the loan/application register that it is reporting.

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Paragraph 4(a)(10)(i)
1. Applicant data—general. Refer to appendix B to this part for instructions on collection of an applicant’s ethnicity, race, and
sex.
2. Transition rule for applicant data collected
prior to January 1, 2018. If a financial institution receives an application prior to January
1, 2018, but final action is taken on or after
January 1, 2018, the financial institution
complies with § 1003.4(a)(10)(i) and (b) if it
collects the information in accordance with
the requirements in effect at the time the information was collected. For example, if a financial institution receives an application
on November 15, 2017, collects the applicant’s

ethnicity, race, and sex in accordance with
the instructions in effect on that date, and
takes final action on the application on January 5, 2018, the financial institution has
complied
with
the
requirements
of
§ 1003.4(a)(10)(i) and (b), even though those instructions changed after the information was
collected but before the date of final action.
However, if, in this example, the financial
institution collected the applicant’s ethnicity, race, and sex on or after January 1,
2018, § 1003.4(a)(10)(i) and (b) requires the financial institution to collect the information in accordance with the amended instructions.
Paragraph 4(a)(10)(ii)
1. Applicant data—completion by financial institution. A financial institution complies
with § 1003.4(a)(10)(ii) by reporting the applicant’s age, as of the application date under
§ 1003.4(a)(1)(ii), as the number of whole years
derived from the date of birth as shown on
the application form. For example, if an applicant provides a date of birth of 01/15/1970
on the application form that the financial institution receives on 01/14/2015, the institution reports 44 as the applicant’s age.
2. Applicant data—co-applicant. If there are
no co-applicants, the financial institution
reports that there is no co-applicant. If there
is more than one co-applicant, the financial
institution reports the age only for the first
co-applicant listed on the application form.
A co-applicant may provide an absent co-applicant’s age on behalf of the absent co-applicant.
3. Applicant data—purchased loan. A financial
institution
complies
with
§ 1003.4(a)(10)(ii) by reporting that the requirement is not applicable when reporting a
purchased loan for which the institution
chooses not to report the income.
4. Applicant data—non-natural person. A financial
institution
complies
with
§ 1003.4(a)(10)(ii) by reporting that the requirement is not applicable if the applicant
or co-applicant is not a natural person (for
example, a corporation, partnership, or
trust). For example, for a transaction involving a trust, a financial institution reports
that the requirement to report the applicant’s age is not applicable if the trust is the
applicant. On the other hand, if the applicant is a natural person, and is the beneficiary of a trust, a financial institution reports the applicant’s age.
5. Applicant data—guarantor. For purposes
of § 1003.4(a)(10)(ii), if a covered loan or application includes a guarantor, a financial institution does not report the guarantor’s
age.
Paragraph 4(a)(10)(iii)
1. Income data—income relied on. When a financial institution evaluates income as part

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of a credit decision, it reports the gross annual income relied on in making the credit
decision. For example, if an institution relies on an applicant’s salary to compute a
debt-to-income ratio but also relies on the
applicant’s annual bonus to evaluate creditworthiness, the institution reports the salary and the bonus to the extent relied upon.
If an institution relies on only a portion of
an applicant’s income in its determination,
it does not report that portion of income not
relied on. For example, if an institution, pursuant to lender and investor guidelines, does
not rely on an applicant’s commission income because it has been earned for less than
12 months, the institution does not include
the applicant’s commission income in the income reported. Likewise, if an institution relies on the verified gross income of the applicant in making the credit decision, then the
institution reports the verified gross income.
Similarly, if an institution relies on the income of a cosigner to evaluate creditworthiness, the institution includes the cosigner’s
income to the extent relied upon. An institution, however, does not include the income of
a guarantor who is only secondarily liable.
2. Income data—co-applicant. If two persons
jointly apply for a covered loan and both list
income on the application, but the financial
institution relies on the income of only one
applicant in evaluating creditworthiness, the
institution reports only the income relied
on.
3. Income data—loan to employee. A financial
institution
complies
with
§ 1003.4(a)(10)(iii) by reporting that the requirement is not applicable for a covered
loan to, or an application from, its employee
to protect the employee’s privacy, even
though the institution relied on the employee’s income in making the credit decision.
4. Income data—assets. A financial institution does not include as income amounts
considered in making a credit decision based
on factors that an institution relies on in addition to income, such as amounts derived
from annuitization or depletion of an applicant’s remaining assets.
5. Income data—credit decision not made.
Section 1003.4(a)(10)(iii) requires a financial
institution to report the gross annual income relied on in processing the application
if a credit decision was not made. For example, assume an institution received an application that included an applicant’s self-reported income, but the application was withdrawn before a credit decision that would
have considered income was made. The financial institution reports the income information relied on in processing the application at the time that the application was
withdrawn or the file was closed for incompleteness.
6. Income data—credit decision not requiring
consideration of income. A financial institution complies with § 1003.4(a)(10)(iii) by re-

porting that the requirement is not applicable if the application did not or would not
have required a credit decision that considered income under the financial institution’s
policies and procedures. For example, if the
financial institution’s policies and procedures do not consider income for a streamlined refinance program, the institution reports that the requirement is not applicable,
even if the institution received income information from the applicant.
7. Income data—non-natural person. A financial institution reports that the requirement
is not applicable when the applicant or coapplicant is not a natural person (e.g., a corporation, partnership, or trust). For example, for a transaction involving a trust, a financial institution reports that the requirement to report income data is not applicable
if the trust is the applicant. On the other
hand, if the applicant is a natural person,
and is the beneficiary of a trust, a financial
institution is required to report the information described in § 1003.4(a)(10)(iii).
8. Income data—multifamily properties. A financial
institution
complies
with
§ 1003.4(a)(10)(iii) by reporting that the requirement is not applicable when the covered loan is secured by, or application is proposed to be secured by, a multifamily dwelling.
9. Income data—purchased loans. A financial
institution complies with § 1003.4(a)(10)(iii)
by reporting that the requirement is not applicable when reporting a purchased covered
loan for which the institution chooses not to
report the income.
10. Income data—rounding. A financial institution complies by reporting the dollar
amount of the income in thousands, rounded
to the nearest thousand ($500 rounds up to
the next $1,000). For example, $35,500 is reported as 36.
Paragraph 4(a)(11)
1. Type of purchaser—loan-participation interests sold to more than one entity. A financial
institution that originates a covered loan,
and then sells it to more than one entity, reports the ‘‘type of purchaser’’ based on the
entity purchasing the greatest interest, if
any. For purposes of § 1003.4(a)(11), if a financial institution sells some interest or interests in a covered loan but retains a majority
interest in that loan, it does not report the
sale.
2. Type of purchaser—swapped covered loans.
Covered loans ‘‘swapped’’ for mortgagebacked securities are to be treated as sales;
the purchaser is the entity receiving the covered loans that are swapped.
3. Type of purchaser—affiliate institution.
For
purposes
of
complying
with
§ 1003.4(a)(11), the term ‘‘affiliate’’ means any
company that controls, is controlled by, or is

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under common control with, another company, as set forth in the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.).
4. Type of purchaser—private securitizations.
A financial institution that knows or reasonably believes that the covered loan it is selling will be securitized by the entity purchasing the covered loan, other than by one
of the government-sponsored enterprises, reports the purchasing entity type as a private
securitizer regardless of the type or affiliation of the purchasing entity. Knowledge or
reasonable belief could, for example, be
based on the purchase agreement or other related documents, the financial institution’s
previous transactions with the purchaser, or
the purchaser’s role as a securitizer (such as
an investment bank). If a financial institution selling a covered loan does not know or
reasonably believe that the purchaser will
securitize the loan, and the seller knows that
the purchaser frequently holds or disposes of
loans by means other than securitization,
then the financial institution should report
the covered loan as purchased by, as appropriate, a commercial bank, savings bank,
savings association, life insurance company,
credit union, mortgage company, finance
company, affiliate institution, or other type
of purchaser.
5. Type of purchaser—mortgage company. For
purposes of complying with § 1003.4(a)(11), a
mortgage company means a nondepository
institution that purchases covered loans and
typically originates such loans. A mortgage
company might be an affiliate or a subsidiary of a bank holding company or thrift
holding company, or it might be an independent mortgage company. Regardless, a financial institution reports the purchasing
entity type as a mortgage company, unless
the mortgage company is an affiliate of the
seller institution, in which case the seller institution should report the loan as purchased
by an affiliate institution.
6. Purchases by subsidiaries. A financial institution that sells a covered loan to its subsidiary that is a commercial bank, savings
bank, or savings association, should report
the covered loan as purchased by a commercial bank, savings bank, or savings association. A financial institution that sells a covered loan to its subsidiary that is a life insurance company, should report the covered
loan as purchased by a life insurance company. A financial institution that sells a covered loan to its subsidiary that is a credit
union, mortgage company, or finance company, should report the covered loan as purchased by a credit union, mortgage company,
or finance company. If the subsidiary that
purchases the covered loan is not a commercial bank, savings bank, savings association,
life insurance company, credit union, mortgage company, or finance company, the seller institution should report the loan as purchased by other type of purchaser. The finan-

cial institution should report the covered
loan as purchased by an affiliate institution
when the subsidiary is an affiliate of the seller institution.
7. Type of purchaser—bank holding company
or thrift holding company. When a financial
institution sells a covered loan to a bank
holding company or thrift holding company
(rather than to one of its subsidiaries), it
should report the loan as purchased by other
type of purchaser, unless the bank holding
company or thrift holding company is an affiliate of the seller institution, in which case
the seller institution should report the loan
as purchased by an affiliate institution.
8. Repurchased covered loans. See comment
4(a)–5 regarding reporting requirements
when a covered loan is repurchased by the
originating financial institution.
9. Type of purchaser—quarterly recording.
For purposes of recording the type of purchaser within 30 calendar days after the end
of the calendar quarter pursuant to
§ 1003.4(f), a financial institution records that
the requirement is not applicable if the institution originated or purchased a covered
loan and did not sell it during the calendar
quarter for which the institution is recording the data. If the financial institution sells
the covered loan in a subsequent quarter of
the same calendar year, the financial institution records the type of purchaser on its
loan/application register for the quarter in
which the covered loan was sold. If a financial institution sells the covered loan in a
succeeding year, the financial institution
should not record the sale.
10. Type of purchaser—not applicable. A financial institution reports that the requirement is not applicable for applications that
were denied, withdrawn, closed for incompleteness or approved but not accepted by
the applicant; and for preapproval requests
that were denied or approved but not accepted by the applicant. A financial institution
also reports that the requirement is not applicable if the institution originated or purchased a covered loan and did not sell it during that same calendar year.
Paragraph 4(a)(12)
1. Average prime offer rate. Average prime
offer rates are annual percentage rates derived from average interest rates, points, and
other loan pricing terms offered to borrowers
by a representative sample of lenders for
mortgage loans that have low-risk pricing
characteristics. Other pricing terms include
commonly used indices, margins, and initial
fixed-rate periods for variable-rate transactions. Relevant pricing characteristics include a consumer’s credit history and transaction characteristics such as the loan-tovalue ratio, owner-occupant status, and purpose of the transaction. To obtain average
prime offer rates, the Bureau uses a survey
of lenders that both meets the criteria of

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§ 1003.4(a)(12)(ii) and provides pricing terms
for at least two types of variable-rate transactions and at least two types of non-variable-rate transactions. An example of such a
survey is the Freddie Mac Primary Mortgage
Market Survey®.
2. Bureau tables. The Bureau publishes on
the FFIEC’s Web site (http://www.ffiec.gov/
hmda), in tables entitled ‘‘Average Prime
Offer Rates-Fixed’’ and ‘‘Average Prime
Offer Rates-Adjustable,’’ current and historic average prime offer rates for a wide variety of closed-end transaction types. The
Bureau calculates an annual percentage rate,
consistent with Regulation Z (see 12 CFR
1026.22 and part 1026, appendix J), for each
transaction type for which pricing terms are
available from the survey described in comment 4(a)(12)–1. The Bureau uses loan pricing
terms available in the survey and other information to estimate annual percentage
rates for other types of transactions for
which direct survey data are not available.
The Bureau publishes on the FFIEC’s Web
site the methodology it uses to arrive at
these estimates. A financial institution may
either use the average prime offer rates published by the Bureau or may determine average prime offer rates itself by employing the
methodology published on the FFIEC Web
site. A financial institution that determines
average prime offer rates itself, however, is
responsible for correctly determining the
rates in accordance with the published methodology.
3. Rate spread calculation—annual percentage rate. The requirements of § 1003.4(a)(12)(i)
refer to the covered loan’s annual percentage
rate. A financial institution complies with
§ 1003.4(a)(12)(i) by relying on the annual percentage rate for the covered loan, as calculated and disclosed pursuant to Regulation
Z, 12 CFR 1026.18 or 1026.38 (for closed-end
mortgage loans) or 1026.40 (for open-end credit lines of credit), as applicable.
4. Rate spread calculation—comparable transaction. The rate spread calculation in
§ 1003.4(a)(12)(i) is defined by reference to a
comparable transaction, which is determined
according to the covered loan’s amortization
type (i.e., fixed- or variable-rate) and loan
term. For covered loans that are open-end
lines of credit, § 1003.4(a)(12)(i) requires a financial institution to identify the most
closely comparable closed-end transaction.
The tables of average prime offer rates published by the Bureau (see comment 4(a)(12)–
2) provide additional detail about how to
identify the comparable transaction.
i. Fixed-rate transactions. For fixed-rate
covered loans, the term for identifying the
comparable transaction is the transaction’s
maturity (i.e., the period until the last payment will be due under the closed-end mortgage loan contract or open-end line of credit
agreement). If an open-end credit plan has a
fixed rate but no definite plan length, a fi-

nancial
institution
complies
with
§ 1003.4(a)(12)(i) by using a 30-year fixed-rate
loan as the most closely comparable closedend transaction. Financial institutions may
refer to the table on the FFIEC Web site entitled ‘‘Average Prime Offer Rates-Fixed’’
when identifying a comparable fixed-rate
transaction.
ii. Variable-rate transactions. For variablerate covered loans, the term for identifying
the comparable transaction is the initial,
fixed-rate period (i.e., the period until the
first scheduled rate adjustment). For example, five years is the relevant term for a variable-rate transaction with a five-year, fixedrate introductory period that is amortized
over thirty years. Financial institutions
may refer to the table on the FFIEC Web site
entitled ‘‘Average Prime Offer Rates-Variable’’ when identifying a comparable variable-rate transaction. If an open-end line of
credit has a variable rate and an optional,
fixed-rate feature, a financial institution
uses the rate table for variable-rate transactions.
iii. Term not in whole years. When a covered
loan’s term to maturity (or, for a variablerate transaction, the initial fixed-rate period) is not in whole years, the financial institution uses the number of whole years
closest to the actual loan term or, if the actual loan term is exactly halfway between
two whole years, by using the shorter loan
term. For example, for a loan term of ten
years and three months, the relevant term is
ten years; for a loan term of ten years and
nine months, the relevant term is 11 years;
for a loan term of ten years and six months,
the relevant term is ten years. If a loan term
includes an odd number of days, in addition
to an odd number of months, the financial
institution rounds to the nearest whole
month, or rounds down if the number of odd
days is exactly halfway between two months.
The financial institution rounds to one year
any covered loan with a term shorter than
six months, including variable-rate covered
loans with no initial, fixed-rate periods. For
example, if an open-end covered loan has a
rate that varies according to an index plus a
margin, with no introductory, fixed-rate period, the transaction term is one year.
iv. Amortization period longer than loan term.
If the amortization period of a covered loan
is longer than the term of the transaction to
maturity, § 1003.4(a)(12)(i) requires a financial
institution to use the loan term to determine the applicable average prime offer rate.
For example, assume a financial institution
originates a closed-end, fixed-rate loan that
has a term to maturity of five years and a
thirty-year amortization period that results
in a balloon payment. The financial institution complies with § 1003.4(a)(12)(i) by using
the five-year loan term.
5. Rate-set date. The relevant date to use to
determine the average prime offer rate for a

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Bur. of Consumer Financial Protection

Pt. 1003, Supp. 1, Nt.

comparable transaction is the date on which
the covered loan’s interest rate was set by
the financial institution for the final time
before closing or account opening.
i. Rate-lock agreement. If an interest rate is
set pursuant to a ‘‘lock-in’’ agreement between the financial institution and the borrower, then the date on which the agreement
fixes the interest rate is the date the rate
was set. Except as provided in comment
4(a)(12)–5.ii, if a rate is reset after a lock-in
agreement is executed (for example, because
the borrower exercises a float-down option or
the agreement expires), then the relevant
date is the date the financial institution exercises discretion in setting the rate for the
final time before closing or account opening.
The same rule applies when a rate-lock
agreement is extended and the rate is reset
at the same rate, regardless of whether market rates have increased, decreased, or remained the same since the initial rate was
set. If no lock-in agreement is executed, then
the relevant date is the date on which the institution sets the rate for the final time before closing or account opening.
ii. Change in loan program. If a financial institution issues a rate-lock commitment
under one loan program, the borrower subsequently changes to another program that is
subject to different pricing terms, and the financial institution changes the rate promised to the borrower under the rate-lock
commitment accordingly, the rate-set date
is the date of the program change. However,
if the financial institution changes the
promised rate to the rate that would have
been available to the borrower under the new
program on the date of the original rate-lock
commitment, then that is the date the rate
is set, provided the financial institution consistently follows that practice in all such
cases or the original rate-lock agreement so
provided. For example, assume that a borrower locks a rate of 2.5 percent on June 1
for a 30-year, variable-rate loan with a 5year, fixed-rate introductory period. On June
15, the borrower decides to switch to a 30year, fixed-rate loan, and the rate available
to the borrower for that product on June 15
is 4.0 percent. On June 1, the 30-year, fixedrate loan would have been available to the
borrower at a rate of 3.5 percent. If the financial institution offers the borrower the 3.5
percent rate (i.e., the rate that would have
been available to the borrower for the fixedrate product on June 1, the date of the original rate-lock) because the original agreement so provided or because the financial institution consistently follows that practice
for borrowers who change loan programs,
then the financial institution should use
June 1 as the rate-set date. In all other
cases, the financial institution should use
June 15 as the rate-set date.
iii. Brokered loans. When a financial institution has reporting responsibility for an ap-

plication for a covered loan that it received
from a broker, as discussed in comment 4(a)–
4 (e.g., because the financial institution
makes a credit decision prior to closing or
account opening), the rate-set date is the
last date the financial institution set the
rate with the broker, not the date the broker
set the borrower’s rate.
6. Compare the annual percentage rate to the
average
prime
offer
rate.
Section
1003.4(a)(12)(i) requires a financial institution
to compare the covered loan’s annual percentage rate to the most recently available
average prime offer rate that was in effect
for the comparable transaction as of the
rate-set
date.
For
purposes
of
§ 1003.4(a)(12)(i), the most recently available
rate means the average prime offer rate set
forth in the applicable table with the most
recent effective date as of the date the interest rate was set. However, § 1003.4(a)(12)(i)
does not permit a financial institution to use
an average prime offer rate before its effective date.
7. Rate spread—not applicable. If the covered
loan is an assumption, reverse mortgage, a
purchased loan, or is not subject to Regulation Z, 12 CFR part 1026, a financial institution complies with § 1003.4(a)(12) by reporting
that the requirement is not applicable. If the
application did not result in an origination
for a reason other than the application was
approved but not accepted by the applicant,
a financial institution complies with
§ 1003.4(a)(12) by reporting that the requirement is not applicable.
8. Application approved but not accepted or
preapproval request approved but not accepted.
In the case of an application approved but
not accepted or a preapproval request that
was approved but not accepted, § 1003.4(a)(12)
requires a financial institution to report the
applicable rate spread.
Paragraph 4(a)(13)
1. HOEPA status—not applicable. If the covered loan is not subject to the Home Ownership and Equity Protection Act of 1994, as
implemented in Regulation Z, 12 CFR 1026.32,
a financial institution complies with
§ 1003.4(a)(13) by reporting that the requirement is not applicable. If an application did
not result in an origination, a financial institution complies with § 1003.4(a)(13) by reporting that the requirement is not applicable.
Paragraph 4(a)(14)
1. Determining lien status for applications
and covered loans originated and purchased. i.
Financial institutions are required to report
lien status for covered loans they originate
and purchase and applications that do not
result in originations (preapproval requests
that are approved but not accepted,

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preapproval requests that are denied, applications that are approved but not accepted,
denied, withdrawn, or closed for incompleteness). For covered loans purchased by a financial institution, lien status is determined
by reference to the best information readily
available to the financial institution at the
time of purchase. For covered loans that a financial institution originates and applications that do not result in originations, lien
status is determined by reference to the best
information readily available to the financial institution at the time final action is
taken and to the financial institution’s own
procedures. Thus, financial institutions may
rely on the title search they routinely perform as part of their underwriting procedures—for example, for home purchase loans.
Regulation C does not require financial institutions to perform title searches solely to
comply with HMDA reporting requirements.
Financial institutions may rely on other information that is readily available to them
at the time final action is taken and that
they reasonably believe is accurate, such as
the applicant’s statement on the application
or the applicant’s credit report. For example,
where the applicant indicates on the application that there is a mortgage on the property
or where the applicant’s credit report shows
that the applicant has a mortgage—and that
mortgage will not be paid off as part of the
transaction—the financial institution may
assume that the loan it originates is secured
by a subordinate lien. If the same application did not result in an origination—for example, because the application was denied or
withdrawn—the financial institution would
report the application as an application for a
subordinate-lien loan.
ii. Financial institutions may also consider
their established procedures when determining lien status for applications that do
not result in originations. For example, assume an applicant applies to a financial institution to refinance a $100,000 first mortgage; the applicant also has an open-end line
of credit for $20,000. If the financial institution’s practice in such a case is to ensure
that it will have first-lien position—through
a subordination agreement with the holder
of the lien securing the open-end line of credit—then the financial institution should report the application as an application for a
first-lien covered loan.
2. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.

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Paragraph 4(a)(15)
1. Credit score—relied on. Except for purchased covered loans, § 1003.4(a)(15) requires a
financial institution to report the credit
score or scores relied on in making the credit
decision and information about the scoring

model used to generate each score. A financial institution relies on a credit score in
making the credit decision if the credit score
was a factor in the credit decision even if it
was not a dispositive factor. For example, if
a credit score is one of multiple factors in a
financial institution’s credit decision, the financial institution has relied on the credit
score even if the financial institution denies
the application because one or more underwriting requirements other than the credit
score are not satisfied.
2. Credit score—multiple credit scores. When a
financial institution obtains or creates two
or more credit scores for a single applicant
or borrower but relies on only one score in
making the credit decision (for example, by
relying on the lowest, highest, most recent,
or average of all of the scores), the financial
institution complies with § 1003.4(a)(15) by reporting that credit score and information
about the scoring model used. When a financial institution obtains or creates two or
more credit scores for an applicant or borrower and relies on multiple scores for the
applicant or borrower in making the credit
decision (for example, by relying on a scoring grid that considers each of the scores obtained or created for the applicant or borrower without combining the scores into a
composite score), § 1003.4(a)(15) requires the
financial institution to report one of the
credit scores for the applicant or borrower
that was relied on in making the credit decision. In choosing which credit score to report
in this circumstance, a financial institution
need not use the same approach for its entire
HMDA submission, but it should be generally
consistent (such as by routinely using one
approach within a particular division of the
institution or for a category of covered
loans). In instances such as these, the financial institution should report the name and
version of the credit scoring model for the
score reported.
3. Credit score—multiple applicants or borrowers. In a transaction involving two or
more applicants or borrowers for which the
financial institution obtains or creates a single credit score, and relies on that credit
score in making the credit decision for the
transaction, the institution complies with
§ 1003.4(a)(15) by reporting that credit score
for either the applicant or first co-applicant.
Otherwise, a financial institution complies
with § 1003.4(a)(15) by reporting a credit score
for the applicant that it relied on in making
the credit decision, if any, and a credit score
for the first co-applicant that it relied on in
making the credit decision, if any. To illustrate, assume a transaction involves one applicant and one co-applicant and that the financial institution obtains or creates two
credit scores for the applicant and two credit
scores for the co-applicant. Assume further
that the financial institution relies on the
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all of the credit scores obtained or created to
make the credit decision for the transaction.
The financial institution complies with
§ 1003.4(a)(15) by reporting that credit score
and information about the scoring model
used. Alternatively, assume a transaction involves one applicant and one co-applicant
and that the financial institution obtains or
creates three credit scores for the applicant
and three credit scores for the co-applicant.
Assume further that the financial institution relies on the middle credit score for the
applicant and the middle credit score for the
co-applicant to make the credit decision for
the transaction. The financial institution
complies with § 1003.4(a)(15) by reporting both
the middle score for the applicant and the
middle score for the co-applicant.
4. Transactions for which no credit decision
was made. If a file was closed for incompleteness or the application was withdrawn before
a credit decision was made, the financial institution complies with § 1003.4(a)(15) by reporting that the requirement is not applicable, even if the financial institution had obtained or created a credit score for the applicant or co-applicant. For example, if a file is
closed for incompleteness and is so reported
in accordance with § 1003.4(a)(8), the financial
institution complies with § 1003.4(a)(15) by reporting that the requirement is not applicable, even if the financial institution had obtained or created a credit score for the applicant or co-applicant. Similarly, if an application was withdrawn by the applicant before a credit decision was made and is so reported in accordance with § 1003.4(a)(8), the
financial
institution
complies
with
§ 1003.4(a)(15) by reporting that the requirement is not applicable, even if the financial
institution had obtained or created a credit
score for the applicant or co-applicant.
5. Transactions for which no credit score was
relied on. If a financial institution makes a
credit decision without relying on a credit
score for the applicant or borrower, the financial
institution
complies
with
§ 1003.4(a)(15) by reporting that the requirement is not applicable.
6. Purchased covered loan. A financial institution complies with § 1003.4(a)(15) by reporting that the requirement is not applicable
when the covered loan is a purchased covered
loan.
7. Non-natural person. When the applicant
and co-applicant, if applicable, are not natural persons, a financial institution complies
with § 1003.4(a)(15) by reporting that the requirement is not applicable.

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Paragraph 4(a)(16)
1. Reason for denial—general. A financial institution complies with § 1003.4(a)(16) by reporting the principal reason or reasons it denied the application, indicating up to four
reasons. The financial institution should report only the principal reason or reasons it

denied the application, even if there are
fewer than four reasons. For example, if a financial institution denies the application because of the applicant’s credit history and
debt-to-income ratio, the financial institution need only report these two principal
reasons. The reasons reported must be specific and accurately describe the principal
reason or reasons the financial institution
denied the application.
2. Reason for denial—preapproval request denied. Section 1003.4(a)(16) requires a financial
institution to report the principal reason or
reasons it denied the application. A request
for a preapproval under a preapproval program as defined by § 1003.2(b)(2) is an application. If a financial institution denies a
preapproval request, the financial institution complies with § 1003.4(a)(16) by reporting
the reason or reasons it denied the
preapproval request.
3. Reason for denial—adverse action model
form or similar form. If a financial institution
chooses to provide the applicant the reason
or reasons it denied the application using the
model form contained in appendix C to Regulation B (Form C–1, Sample Notice of Action
Taken and Statement of Reasons) or a similar form, § 1003.4(a)(16) requires the financial
institution to report the reason or reasons
that were specified on the form by the financial institution, which includes reporting the
‘‘Other’’ reason or reasons that were specified on the form by the financial institution,
if applicable. If a financial institution chooses to provide a disclosure of the applicant’s
right to a statement of specific reasons using
the model form contained in appendix C to
Regulation B (Form C–5, Sample Disclosure
of Right to Request Specific Reasons for
Credit Denial) or a similar form, or chooses
to provide the denial reason or reasons orally under Regulation B, 12 CFR 1002.9(a)(2)(ii),
the financial institution complies with
§ 1003.4(a)(16) by entering the principal reason
or reasons it denied the application.
4. Reason for denial—not applicable. A financial institution complies with § 1003.4(a)(16)
by reporting that the requirement is not applicable if the action taken on the application, pursuant to § 1003.4(a)(8), is not a denial. For example, a financial institution
complies with § 1003.4(a)(16) by reporting that
the requirement is not applicable if the loan
is originated or purchased by the financial
institution, or the application or preapproval
request was approved but not accepted, or
the application was withdrawn before a credit decision was made, or the file was closed
for incompleteness.
Paragraph 4(a)(17)(i)
1. Total loan costs—not applicable. Section
1003.4(a)(17)(i) does not require financial institutions to report the total loan costs for
applications, or for transactions not subject
to Regulation Z, 12 CFR 1026.43(c), and 12

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CFR 1026.19(f), such as open-end lines of credit, reverse mortgages, or loans or lines of
credit made primarily for business or commercial purposes. In these cases, a financial
institution complies with § 1003.4(a)(17)(i) by
reporting that the requirement is not applicable to the transaction.
2. Purchased loans—applications received
prior to the integrated disclosure effective date.
For purchased covered loans subject to this
reporting requirement for which applications
were received by the selling entity prior to
the effective date of Regulation Z, 12 CFR
1026.19(f), a financial institution complies
with § 1003.4(a)(17)(i) by reporting that the requirement is not applicable to the transaction.
3. Revised disclosures. If the amount of total
loan costs changes because a financial institution provides a revised version of the disclosures required under Regulation Z, 12 CFR
1026.19(f), pursuant to Regulation Z, 12 CFR
1026.19(f)(2), the financial institution complies with § 1003.4(a)(17)(i) by reporting the
revised amount, provided that the revised
disclosure was provided to the borrower during the same reporting period in which closing occurred. For example, in the case of a financial institution’s quarterly submission
made pursuant to § 1003.5(a)(1)(ii), if the financial institution provides a corrected disclosure to reflect a refund made pursuant to
Regulation Z, 12 CFR 1026.19(f)(2)(v), the financial institution reports the corrected
amount of total loan costs only if the corrected disclosure was provided prior to the
end of the quarter in which closing occurred.
The financial institution does not report the
corrected amount of total loan costs in its
quarterly submission if the corrected disclosure was provided after the end of the quarter, even if the corrected disclosure was provided prior to the deadline for timely submission of the financial institution’s quarterly data. However, the financial institution reports the corrected amount of total
loan costs on its annual loan/application register.

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Paragraph 4(a)(17)(ii)
1. Total points and fees—not applicable. Section 1003.4(a)(17)(ii) does not require financial institutions to report the total points
and fees for transactions not subject to Regulation Z, 12 CFR 1026.43(c), such as open-end
lines of credit, reverse mortgages, or loans or
lines of credit made primarily for business or
commercial purposes, or for applications or
purchased covered loans. In these cases, a financial
institution
complies
with
§ 1003.4(a)(17)(ii) by reporting that the requirement is not applicable to the transaction.
2. Total points and fees cure mechanism. For
covered loans subject to this reporting requirement, if a financial institution determines that the transaction’s total points and

fees exceeded the applicable limit and cures
the overage pursuant to Regulation Z, 12
CFR 1026.43(e)(3)(iii) and (iv), a financial institution complies with § 1003.4(a)(17)(ii) by
reporting the correct amount of total points
and fees, provided that the cure was effected
during the same reporting period in which
closing occurred. For example, in the case of
a financial institution’s quarterly submission, the financial institution reports the revised amount of total points and fees only if
it cured the overage prior to the end of the
quarter in which closing occurred. The financial institution does not report the revised
amount of total points and fees in its quarterly submission if it cured the overage after
the end of the quarter, even if the cure was
effected prior to the deadline for timely submission of the financial institution’s quarterly data. However, the financial institution reports the revised amount of total
points and fees on its annual loan/application register.
Paragraph 4(a)(18)
1. Origination charges—not applicable. Section 1003.4(a)(18) does not require financial
institutions to report the total borrowerpaid origination charges for applications, or
for transactions not subject to Regulation Z,
12 CFR 1026.19(f), such as open-end lines of
credit, reverse mortgages, or loans or lines of
credit made primarily for business or commercial purposes. In these cases, a financial
institution complies with § 1003.4(a)(18) by reporting that the requirement is not applicable to the transaction.
2. Purchased loans—applications received
prior to the integrated disclosure effective date.
For purchased covered loans subject to this
reporting requirement for which applications
were received by the selling entity prior to
the effective date of Regulation Z, 12 CFR
1026.19(f), a financial institution complies
with § 1003.4(a)(18) by reporting that the requirement is not applicable to the transaction.
3. Revised disclosures. If the total amount of
borrower-paid origination charges changes
because a financial institution provides a revised version of the disclosures required
under Regulation Z, 12 CFR 1026.19(f), pursuant to Regulation Z, 12 CFR 1026.19(f)(2), the
financial
institution
complies
with
§ 1003.4(a)(18) by reporting the revised
amount, provided that the revised disclosure
was provided to the borrower during the
same reporting period in which closing occurred. For example, in the case of a financial institution’s quarterly submission made
pursuant to § 1003.5(a)(1)(ii), if the financial
institution provides a corrected disclosure to
reflect a refund made pursuant to Regulation

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Z, 12 CFR 1026.19(f)(2)(v), the financial institution reports the corrected amount of origination charges only if the corrected disclosure was provided prior to the end of the
quarter in which closing occurred. The financial institution does not report the corrected
amount of origination charges in its quarterly submission if the corrected disclosure
was provided after the end of the quarter,
even if the corrected disclosure was provided
prior to the deadline for timely submission
of the financial institution’s quarterly data.
However, the financial institution reports
the corrected amount of origination charges
on its annual loan/application register.

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Paragraph 4(a)(19)
1. Discount points—not applicable. Section
1003.4(a)(19) does not require financial institutions to report the discount points for applications, or for transactions not subject to
Regulation Z, 12 CFR 1026.19(f), such as openend lines of credit, reverse mortgages, or
loans or lines of credit made primarily for
business or commercial purposes. In these
cases, a financial institution complies with
§ 1003.4(a)(19) by reporting that the requirement is not applicable to the transaction.
2. Purchased loans—applications received
prior to the integrated disclosure effective date.
For purchased covered loans subject to this
reporting requirement for which applications
were received by the selling entity prior to
the effective date of Regulation Z, 12 CFR
1026.19(f), a financial institution complies
with § 1003.4(a)(19) by reporting that the requirement is not applicable to the transaction.
3. Revised disclosures. If the amount of discount points changes because a financial institution provides a revised version of the
disclosures required under Regulation Z, 12
CFR 1026.19(f), pursuant to Regulation Z, 12
CFR 1026.19(f)(2), the financial institution
complies with § 1003.4(a)(19) by reporting the
revised amount, provided that the revised
disclosure was provided to the borrower during the same reporting period in which closing occurred. For example, in the case of a financial institution’s quarterly submission
made pursuant to § 1003.5(a)(ii), if the financial institution provides a corrected disclosure to reflect a refund made pursuant to
Regulation Z, 12 CFR 1026.19(f)(2)(v), the financial institution reports the corrected
amount of discount points only if the corrected disclosure was provided prior to the
end of the quarter in which closing occurred.
The financial institution does not report the
corrected amount of discount points in its
quarterly submission if the corrected disclosure was provided after the end of the quarter, even if the corrected disclosure was provided prior to the deadline for timely submission of the financial institution’s quarterly data. However, the financial institu-

tion reports the corrected amount of discount points on its annual loan/application
register.
Paragraph 4(a)(20)
1. Lender credits—not applicable. Section
1003.4(a)(20) does not require financial institutions to report lender credits for applications, or for transactions not subject to Regulation Z, 12 CFR 1026.19(f), such as open-end
lines of credit, reverse mortgages, or loans or
lines of credit made primarily for business or
commercial purposes. In these cases, a financial institution complies with § 1003.4(a)(20)
by reporting that the requirement is not applicable to the transaction.
2. Purchased loans—applications received
prior to the integrated disclosure effective date.
For purchased covered loans subject to this
reporting requirement for which applications
were received by the selling entity prior to
the effective date of Regulation Z, 12 CFR
1026.19(f), a financial institution complies
with § 1003.4(a)(20) by reporting that the requirement is not applicable to the transaction.
3. Revised disclosures. If the amount of lender credits changes because a financial institution provides a revised version of the disclosures required under Regulation Z, 12 CFR
1026.19(f), pursuant to Regulation Z, 12 CFR
1026.19(f)(2), the financial institution complies with § 1003.4(a)(20) by reporting the revised amount, provided that the revised disclosure was provided to the borrower during
the same reporting period in which closing
occurred. For example, in the case of a financial institution’s quarterly submission made
pursuant to § 1003.5(a)(1)(ii), if the financial
institution provides a corrected disclosure to
reflect a refund made pursuant to Regulation
Z, 12 CFR 1026.19(f)(2)(v), the financial institution reports the corrected amount of lender credits only if the corrected disclosure
was provided prior to the end of the quarter
in which closing occurred. The financial institution does not report the corrected
amount of lender credits in its quarterly submission if the corrected disclosure was provided after the end of the quarter, even if the
corrected disclosure was provided prior to
the deadline for timely submission of the financial institution’s quarterly data. However, the financial institution reports the
corrected amount of lender credits on its annual loan/application register.
Paragraph 4(a)(21)
1.
Interest
rate—disclosures.
Section
1003.4(a)(21) requires a financial institution
to identify the interest rate applicable to the
approved application, or to the covered loan
at closing or account opening. For covered
loans or applications subject to the disclosure requirements of Regulation Z, 12 CFR

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1026.19(e) or (f), a financial institution complies with § 1003.4(a)(21) by reporting the interest rate disclosed on the applicable disclosure. For covered loans for which disclosures
were provided pursuant to both 12 CFR
1026.19(e) and 12 CFR 1026.19(f), a financial institution reports the interest rate disclosed
pursuant to 12 CFR 1026.19(f). A financial institution may rely on the definitions and
commentary to the sections of Regulation Z
relevant to the disclosure of the interest rate
pursuant to 12 CFR 1026.19(e) or 12 CFR
1026.19(f).
2. Applications. In the case of an application, § 1003.4(a)(21) requires a financial institution to report the applicable interest rate
only if the application has been approved by
the financial institution but not accepted by
the borrower. In such cases, a financial institution reports the interest rate applicable at
the time that the application was approved
by the financial institution. A financial institution may report the interest rate appearing on the disclosure provided pursuant
to 12 CFR 1026.19(e) or (f) if such disclosure
accurately reflects the interest rate at the
time the application was approved. For applications that have been denied or withdrawn, or files closed for incompleteness, a
financial institution reports that no interest
rate was applicable to the application.
3. Adjustable rate—interest rate unknown.
Except as provided in comment 4(a)(21)–1, for
adjustable-rate covered loans or applications, if the interest rate is unknown at the
time that the application was approved, or
at closing or account opening, a financial institution reports the fully-indexed rate based
on the index applicable to the covered loan
or application. For purposes of § 1003.4(a)(21),
the fully-indexed rate is the index value and
margin at the time that the application was
approved, or, for covered loans, at closing or
account opening.

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Paragraph 4(a)(22)
1. Prepayment penalty term—not applicable.
Section 1003.4(a)(22) does not require financial institutions to report the term of any
prepayment penalty for transactions not
subject to Regulation Z, 12 CFR part 1026,
such as loans or lines of credit made primarily for business or commercial purposes,
or for reverse mortgages or purchased covered loans. In these cases, a financial institution complies with § 1003.4(a)(22) by reporting
that the requirement is not applicable to the
transaction.
2. Transactions for which no prepayment penalty exists. For covered loans or applications
that have no prepayment penalty, a financial
institution complies with § 1003.4(a)(22) by reporting that the requirement is not applicable to the transaction. A financial institution may rely on the definitions and commentary
to
Regulation
Z,
12
CFR
1026.32(b)(6)(i) or (ii) in determining whether

the terms of a transaction contain a prepayment penalty.
Paragraph 4(a)(23)
1. General. For covered loans that are not
purchased covered loans, § 1003.4(a)(23) requires a financial institution to report the
ratio of the applicant’s or borrower’s total
monthly debt to total monthly income (debtto-income ratio) relied on in making the
credit decision. For example, if a financial
institution calculated the applicant’s or borrower’s debt-to-income ratio twice—once according to the financial institution’s own requirements and once according to the requirements of a secondary market investor—
and the financial institution relied on the
debt-to-income ratio calculated according to
the secondary market investor’s requirements in making the credit decision,
§ 1003.4(a)(23) requires the financial institution to report the debt-to-income ratio calculated according to the requirements of the
secondary market investor.
2. Transactions for which a debt-to-income
ratio was one of multiple factors. A financial
institution relies on the ratio of the applicant’s or borrower’s total monthly debt to
total monthly income (debt-to-income ratio)
in making the credit decision if the debt-toincome ratio was a factor in the credit decision even if it was not a dispositive factor.
For example, if the debt-to-income ratio was
one of multiple factors in a financial institution’s credit decision, the financial institution has relied on the debt-to-income ratio
and complies with § 1003.4(a)(23) by reporting
the debt-to-income ratio, even if the financial institution denied the application because one or more underwriting requirements other than the debt-to-income ratio
were not satisfied.
3. Transactions for which no credit decision
was made. If a file was closed for incompleteness, or if an application was withdrawn before a credit decision was made, a financial
institution complies with § 1003.4(a)(23) by reporting that the requirement is not applicable, even if the financial institution had calculated the ratio of the applicant’s total
monthly debt to total monthly income (debtto-income ratio). For example, if a file was
closed for incompleteness and was so reported in accordance with § 1003.4(a)(8), the
financial
institution
complies
with
§ 1003.4(a)(23) by reporting that the requirement is not applicable, even if the financial
institution had calculated the applicant’s
debt-to-income ratio. Similarly, if an application was withdrawn by the applicant before a credit decision was made, the financial
institution complies with § 1003.4(a)(23) by reporting that the requirement is not applicable, even if the financial institution had calculated the applicant’s debt-to-income ratio.
4. Transactions for which no debt-to-income
ratio was relied on. Section 1003.4(a)(23) does

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not require a financial institution to calculate the ratio of an applicant’s or borrower’s total monthly debt to total monthly
income (debt-to-income ratio), nor does it require a financial institution to rely on an applicant’s or borrower’s debt-to-income ratio
in making a credit decision. If a financial institution made a credit decision without relying on the applicant’s or borrower’s debtto-income ratio, the financial institution
complies with § 1003.4(a)(23) by reporting that
the requirement is not applicable since no
debt-to-income ratio was relied on in connection with the credit decision.
5. Non-natural person. A financial institution complies with § 1003.4(a)(23) by reporting
that the requirement is not applicable when
the applicant and co-applicant, if applicable,
are not natural persons.
6. Multifamily dwellings. A financial institution complies with § 1003.4(a)(23) by reporting
that the requirement is not applicable for a
covered loan secured by, or an application
proposed to be secured by, a multifamily
dwelling.
7. Purchased covered loans. A financial institution complies with § 1003.4(a)(23) by reporting that the requirement is not applicable when reporting a purchased covered loan.

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Paragraph 4(a)(24)
1. General. Section 1003.4(a)(24) requires a
financial institution to report, except for
purchased covered loans, the ratio of the
total amount of debt secured by the property
to the value of the property (combined loanto-value ratio) relied on in making the credit
decision. For example, if a financial institution calculated a combined loan-to-value
ratio twice—once according to the financial
institution’s own requirements and once according to the requirements of a secondary
market investor—and the financial institution relied on the combined loan-to-value
ratio calculated according to the secondary
market investor’s requirements in making
the credit decision, § 1003.4(a)(24) requires the
financial institution to report the combined
loan-to-value ratio calculated according to
the requirements of the secondary market
investor.
2. Transactions for which a combined loan-tovalue ratio was one of multiple factors. A financial institution relies on the total amount of
debt secured by the property to the value of
the property (combined loan-to-value ratio)
in making the credit decision if the combined loan-to-value ratio was a factor in the
credit decision even if it was not a dispositive factor. For example, if the combined
loan-to-value ratio is one of multiple factors
in a financial institution’s credit decision,
the financial institution has relied on the
combined loan-to-value ratio and complies
with § 1003.4(a)(24) by reporting the combined
loan-to-value ratio, even if the financial institution denies the application because one

or more underwriting requirements other
than the combined loan-to-value ratio are
not satisfied.
3. Transactions for which no credit decision
was made. If a file was closed for incompleteness, or if an application was withdrawn before a credit decision was made, a financial
institution complies with § 1003.4(a)(24) by reporting that the requirement is not applicable, even if the financial institution had calculated the ratio of the total amount of debt
secured by the property to the value of the
property (combined loan-to-value ratio). For
example, if a file is closed for incompleteness
and is so reported in accordance with
§ 1003.4(a)(8), the financial institution complies with § 1003.4(a)(24) by reporting that the
requirement is not applicable, even if the financial institution had calculated a combined loan-to-value ratio. Similarly, if an application was withdrawn by the applicant before a credit decision was made and is so reported in accordance with § 1003.4(a)(8), the
financial
institution
complies
with
§ 1003.4(a)(24) by reporting that the requirement is not applicable, even if the financial
institution had calculated a combined loanto-value ratio.
4. Transactions for which no combined loanto-value ratio was relied on. Section
1003.4(a)(24) does not require a financial institution to calculate the ratio of the total
amount of debt secured by the property to
the value of the property (combined loan-tovalue ratio), nor does it require a financial
institution to rely on a combined loan-tovalue ratio in making a credit decision. If a
financial institution makes a credit decision
without relying on a combined loan-to-value
ratio, the financial institution complies with
§ 1003.4(a)(24) by reporting that the requirement is not applicable since no combined
loan-to-value ratio was relied on in making
the credit decision.
5. Purchased covered loan. A financial institution complies with § 1003.4(a)(24) by reporting that the requirement is not applicable
when the covered loan is a purchased covered
loan.
Paragraph 4(a)(25)
1. Amortization and maturity. For a fully
amortizing covered loan, the number of
months after which the legal obligation matures is the number of months in the amortization schedule, ending with the final payment. Some covered loans do not fully amortize during the maturity term, such as covered loans with a balloon payment; such
loans should still be reported using the maturity term rather than the amortization
term, even in the case of covered loans that
mature before fully amortizing but have
reset options. For example, a 30-year fully
amortizing covered loan would be reported

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with a term of ‘‘360,’’ while a five year balloon covered loan would be reported with a
loan term of ‘‘60.’’
2. Non-monthly repayment periods. If a covered loan or application includes a schedule
with repayment periods measured in a unit
of time other than months, the financial institution should report the covered loan or
application term using an equivalent number
of whole months without regard for any remainder.
3. Purchased loans. For a covered loan that
was purchased, a financial institution reports the number of months after which the
legal obligation matures as measured from
the covered loan’s origination.
4. Open-end line of credit. For an open-end
line of credit with a definite term, a financial institution reports the number of
months from origination until the account
termination date, including both the draw
and repayment period.
5. Loan or application without a definite
term. For a covered loan or application without a definite term, such as a reverse mortgage, a financial institution complies with
§ 1003.4(a)(25) by reporting that the requirement is not applicable.

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Paragraph 4(a)(26)
1. Types of introductory rates. Section
1003.4(a)(26) requires a financial institution
to report the number of months, or proposed
number of months in the case of an application, from closing or account opening until
the first date the interest rate may change.
For example, assume an open-end line of
credit contains an introductory or ‘‘teaser’’
interest rate for two months after the date
of account opening, after which the interest
rate may adjust. In this example, the financial institution complies with § 1003.4(a)(26)
by reporting the number of months as ‘‘2.’’
Section 1003.4(a)(26) requires a financial institution to report the number of months
based on when the first interest rate adjustment may occur, even if an interest rate adjustment is not required to occur at that
time and even if the rates that will apply, or
the periods for which they will apply, are not
known at closing or account opening. For example, if a closed-end mortgage loan with a
30-year term has an adjustable-rate product
with an introductory interest rate for the
first 60 months, after which the interest rate
is permitted, but not required to vary, according to the terms of an index rate, the financial
institution
complies
with
§ 1003.4(a)(26) by reporting the number of
months as ‘‘60.’’ Similarly, if a closed-end
mortgage loan with a 30-year term is a steprate product with an introductory interest
rate for the first 24 months, after which the
interest rate will increase to a different
known interest rate for the next 36 months,
the financial institution complies with

§ 1003.4(a)(26) by reporting the number of
months as ‘‘24.’’
2. Preferred rates. Section 1003.4(a)(26) does
not require reporting of introductory interest rate periods based on preferred rates unless the terms of the legal obligation provide
that the preferred rate will expire at a certain defined date. Preferred rates include
terms of the legal obligation that provide
that the initial underlying rate is fixed but
that it may increase or decrease upon the occurrence of some future event, such as an
employee leaving the employ of the financial
institution, the borrower closing an existing
deposit account with the financial institution, or the borrower revoking an election to
make automated payments. In these cases,
because it is not known at the time of closing or account opening whether the future
event will occur, and if so, when it will
occur, § 1003.4(a)(26) does not require reporting of an introductory interest rate period.
3. Loan or application with a fixed rate. A financial
institution
complies
with
§ 1003.4(a)(26) by reporting that the requirement is not applicable for a covered loan
with a fixed rate or an application for a covered loan with a fixed rate.
4. Purchased loan. A financial institution
complies with § 1003.4(a)(26) by reporting that
requirement is not applicable when the covered loan is a purchased covered loan with a
fixed rate.
Paragraph 4(a)(27)
1. General. Section 1003.4(a)(27) requires reporting of contractual features that would
allow payments other than fully amortizing
payments. Section 1003.4(a)(27) defines the
contractual features by reference to Regulation Z, 12 CFR part 1026, but without regard
to whether the covered loan is consumer
credit, as defined in § 1026.2(a)(12), is extended by a creditor, as defined in
§ 1026.2(a)(17), or is extended to a consumer,
as defined in § 1026.2(a)(11), and without regard to whether the property is a dwelling as
defined in § 1026.2(a)(19). For example, assume
that a financial institution originates a business-purpose transaction that is exempt
from Regulation Z pursuant to 12 CFR
1026.3(a)(1), to finance the purchase of a multifamily dwelling, and that there is a balloon
payment, as defined by Regulation Z, 12 CFR
1026.18(s)(5)(i), at the end of the loan term.
The multifamily dwelling is a dwelling under
§ 1003.2(f), but not under Regulation Z, 12
CFR 1026.2(a)(19). In this example, the financial institution should report the businesspurpose transaction as having a balloon payment under § 1003.4(a)(27)(i), assuming the
other requirements of this part are met.
Aside from these distinctions, financial institutions may rely on the definitions and
related commentary provided in the appropriate sections of Regulation Z referenced in
§ 1003.4(a)(27) of this part in determining

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whether the contractual feature should be
reported.

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Paragraph 4(a)(28).
1. General. A financial institution reports
the property value relied on in making the
credit decision. For example, if the institution relies on an appraisal or other valuation
for the property in calculating the loan-tovalue ratio, it reports that value; if the institution relies on the purchase price of the
property in calculating the loan-to-value
ratio, it reports that value.
2. Multiple property values. When a financial
institution obtains two or more valuations
of the property securing or proposed to secure the covered loan, the financial institution complies with § 1003.4(a)(28) by reporting
the value relied on in making the credit decision. For example, when a financial institution obtains an appraisal, an automated
valuation model report, and a broker price
opinion with different values for the property, it reports the value relied on in making
the credit decision. Section § 1003.4(a)(28)
does not require a financial institution to
use a particular property valuation method,
but instead requires a financial institution
to report the valuation relied on in making
the credit decision.
3. Transactions for which no credit decision
was made. If a file was closed for incompleteness or the application was withdrawn before
a credit decision was made, the financial institution complies with § 1003.4(a)(28) by reporting that the requirement is not applicable, even if the financial institution had obtained a property value. For example, if a
file is closed for incompleteness and is so reported in accordance with § 1003.4(a)(8), the
financial
institution
complies
with
§ 1003.4(a)(28) by reporting that the requirement is not applicable, even if the financial
institution had obtained a property value.
Similarly, if an application was withdrawn
by the applicant before a credit decision was
made and is so reported in accordance with
§ 1003.4(a)(8), the financial institution complies with § 1003.4(a)(28) by reporting that the
requirement is not applicable, even if the financial institution had obtained a property
value.
4. Transactions for which no property value
was relied on. Section 1003.4(a)(28) does not
require a financial institution to obtain a
property valuation, nor does it require a financial institution to rely on a property
value in making a credit decision. If a financial institution makes a credit decision
without relying on a property value, the financial
institution
complies
with
§ 1003.4(a)(28) by reporting that the requirement is not applicable since no property
value was relied on in making the credit decision.

Paragraph 4(a)(29)
1. Classification under State law. A financial
institution should report a covered loan that
is or would have been secured only by a manufactured home but not the land on which it
is sited as secured by a manufactured home
and not land, even if the manufactured home
is considered real property under applicable
State law.
2. Manufactured home community. A manufactured home community that is a multifamily dwelling is not considered a manufactured home for purposes of § 1003.4(a)(29).
3. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.
4. Scope of requirement. A financial institution reports that the requirement is not applicable for a covered loan where the dwelling related to the property identified in
§ 1003.4(a)(9) is not a manufactured home.
Paragraph 4(a)(30)
1. Indirect land ownership. Indirect land
ownership can occur when the applicant or
borrower is or will be a member of a resident-owned community structured as a housing cooperative in which the occupants own
an entity that holds the underlying land of
the manufactured home community. In such
communities, the applicant or borrower may
still have a lease and pay rent for the lot on
which his or her manufactured home is or
will be located, but the property interest
type for such an arrangement should be reported as indirect ownership if the applicant
is or will be a member of the cooperative
that owns the underlying land of the manufactured home community. If an applicant
resides or will reside in such a community
but is not a member, the property interest
type should be reported as a paid leasehold.
2. Leasehold interest. A leasehold interest
could be formalized in a lease with a defined
term and specified rent payments, or could
arise as a tenancy at will through permission
of a land owner without any written, formal
arrangement. For example, assume a borrower will locate the manufactured home in
a manufactured home community, has a
written lease for a lot in that park, and the
lease specifies rent payments. In this example, a financial institution complies with
§ 1003.4(a)(30) by reporting a paid leasehold.
However, if instead the borrower will locate
the manufactured home on land owned by a
family member without a written lease and
with no agreement as to rent payments, a financial
institution
complies
with
§ 1003.4(a)(30) by reporting an unpaid leasehold.
3. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.

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4. Manufactured home community. A manufactured home community that is a multifamily dwelling is not considered a manufactured home for purposes of § 1003.4(a)(30).
5. Direct ownership. An applicant or borrower has a direct ownership interest in the
land on which the dwelling is or is to be located when it has a more than possessory
real property ownership interest in the land
such as fee simple ownership.
6. Scope of requirement. A financial institution reports that the requirement is not applicable for a covered loan where the dwelling related to the property identified in
§ 1003.4(a)(9) is not a manufactured home.

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Paragraph 4(a)(31)
1. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.
2. Manufactured home community. For an application or covered loan secured by a manufactured home community, the financial institution should include in the number of individual dwelling units the total number of
manufactured home sites that secure the
loan and are available for occupancy, regardless of whether the sites are currently occupied or have manufactured homes currently
attached. A financial institution may include in the number of individual dwelling
units other units such as recreational vehicle pads, manager apartments, rental apartments, site-built homes or other rentable
space that are ancillary to the operation of
the secured property if it considers such
units under its underwriting guidelines or
the guidelines of an investor, or if it tracks
the number of such units for its own internal
purposes. For a loan secured by a single
manufactured home that is or will be located
in a manufactured home community, the financial institution should report one individual dwelling unit.
3. Condominium and cooperative projects. For
a covered loan secured by a condominium or
cooperative property, the financial institution reports the total number of individual
dwelling units securing the covered loan or
proposed to secure the covered loan in the
case of an application. For example:
i. Assume that a loan is secured by the entirety of a cooperative property. The financial institution would report the number of
individual dwelling units in the cooperative
property.
ii. Assume that a covered loan is secured
by 30 individual dwelling units in a condominium property that contains 100 individual dwelling units and that the loan is
not exempt from Regulation C under
§ 1003.3(c)(3). The financial institution reports 30 individual dwelling units.
4. Best information available. A financial institution may rely on the best information
readily available to the financial institution

at the time final action is taken and on the
financial institution’s own procedures in reporting
the
information
required
by
§ 1003.4(a)(31). Information readily available
could include, for example, information provided by an applicant that the financial institution reasonably believes, information
contained in a property valuation or inspection, or information obtained from public
records.
Paragraph 4(a)(32)
1. Affordable housing income restrictions. For
purposes of § 1003.4(a)(32), affordable housing
income-restricted units are individual dwelling units that have restrictions based on the
income level of occupants pursuant to restrictive covenants encumbering the property. Such income levels are frequently expressed as a percentage of area median income by household size as established by the
U.S. Department of Housing and Urban Development or another agency responsible for
implementing the applicable affordable housing program. Such restrictions are frequently part of compliance with programs
that provide public funds, special tax treatment, or density bonuses to encourage development or preservation of affordable housing. Such restrictions are frequently evidenced by a use agreement, regulatory agreement, land use restriction agreement, housing assistance payments contract, or similar
agreement. Rent control or rent stabilization laws, and the acceptance by the owner
or manager of a multifamily dwelling of
Housing Choice Vouchers (24 CFR part 982) or
other similar forms of portable housing assistance that are tied to an occupant and not
an individual dwelling unit, are not affordable housing income-restricted dwelling
units for purposes of § 1003.4(a)(32).
2. Federal affordable housing sources. Examples of Federal programs and funding sources
that may result in individual dwelling units
that are reportable under § 1003.4(a)(32) include, but are not limited to:
i. Affordable housing programs pursuant to
Section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f);
ii. Public housing (42 U.S.C. 1437a(b)(6));
iii. The HOME Investment Partnerships
program (24 CFR part 92);
iv. The Community Development Block
Grant program (24 CFR part 570);
v. Multifamily tax subsidy project funding
through tax-exempt bonds or tax credits (26
U.S.C. 42; 26 U.S.C. 142(d));
vi. Project-based vouchers (24 CFR part
983);
vii. Federal Home Loan Bank affordable
housing program funding (12 CFR part 1291);
and
viii. Rural Housing Service multifamily
housing loans and grants (7 CFR part 3560).
3. State and local government affordable
housing sources. Examples of State and local

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sources that may result in individual dwelling units that are reportable under
§ 1003.4(a)(32) include, but are not limited to:
State or local administration of Federal
funds or programs; State or local funding
programs for affordable housing or rental assistance, including programs operated by
independent public authorities; inclusionary
zoning laws; and tax abatement or tax increment financing contingent on affordable
housing requirements.
4. Multiple properties. See comment 4(a)(9)–
2 regarding transactions involving multiple
properties with more than one property
taken as security.
5. Best information available. A financial institution may rely on the best information
readily available to the financial institution
at the time final action is taken and on the
financial institution’s own procedures in reporting
the
information
required
by
§ 1003.4(a)(32). Information readily available
could include, for example, information provided by an applicant that the financial institution reasonably believes, information
contained in a property valuation or inspection, or information obtained from public
records.
6. Scope of requirement. A financial institution reports that the requirement is not applicable if the property securing the covered
loan or, in the case of an application, proposed to secure the covered loan is not a
multifamily dwelling.
Paragraph 4(a)(33)
1. Agents. If a financial institution is reporting actions taken by its agent consistent
with comment 4(a)–4, the agent is not considered the financial institution for the purposes of § 1003.4(a)(33). For example, assume
that an applicant submitted an application
to Financial Institution A, and Financial Institution A made the credit decision acting
as Financial Institution B’s agent under
State law. A covered loan was originated and
the obligation arising from a covered loan
was initially payable to Financial Institution A. Financial Institution B purchased
the loan. Financial Institution B reports the
origination and not the purchase, and indicates that the application was not submitted
directly to the financial institution and that
the transaction was not initially payable to
the financial institution.

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Paragraph 4(a)(33)(i)
1. General. Section 4(a)(33)(i) requires a financial institution to indicate whether the
applicant or borrower submitted the application directly to the financial institution that
is reporting the covered loan or application.
The following scenarios demonstrate whether an application was submitted directly to
the financial institution that is reporting
the covered loan or application.

i. The application was submitted directly
to the financial institution if the mortgage
loan originator identified pursuant to
§ 1003.4(a)(34) was an employee of the reporting financial institution when the originator
performed the origination activities for the
covered loan or application that is being reported.
ii. The application was also submitted directly to the financial institution reporting
the covered loan or application if the reporting financial institution directed the applicant to a third-party agent (e.g., a credit
union service organization) that performed
loan origination activities on behalf of the
financial institution and did not assist the
applicant with applying for covered loans
with other institutions.
iii. If an applicant contacted and completed an application with a broker or correspondent that forwarded the application to
a financial institution for approval, an application was not submitted to the financial institution.
Paragraph 4(a)(33)(ii)
1. General. Section 1003.4(a)(33)(ii) requires
financial institutions to report whether the
obligation arising from a covered loan was
or, in the case of an application, would have
been initially payable to the institution. An
obligation is initially payable to the institution if the obligation is initially payable either on the face of the note or contract to
the financial institution that is reporting
the covered loan or application. For example, if a financial institution reported an
origination of a covered loan that it approved prior to closing, that closed in the
name of a third-party, such as a correspondent lender, and that the financial institution purchased after closing, the covered loan was not initially payable to the financial institution.
2. Applications. A financial institution complies with § 1003.4(a)(33)(ii) by reporting that
the requirement is not applicable if the institution had not determined whether the
covered loan would have been initially payable to the institution reporting the application when the application was withdrawn,
denied, or closed for incompleteness.
Paragraph 4(a)(34)
1. NMLSR ID. Section 1003.4(a)(34) requires
a financial institution to report the Nationwide Mortgage Licensing System and Registry unique identifier (NMLSR ID) for the
mortgage loan originator, as defined in Regulation G, 12 CFR 1007.102, or Regulation H,
12 CFR 1008.23, as applicable. The NMLSR ID
is a unique number or other identifier generally assigned to individuals registered or
licensed through NMLSR to provide loan
originating services. For more information,
see the Secure and Fair Enforcement for

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Mortgage Licensing Act of 2008, title V of the
Housing and Economic Recovery Act of 2008
(S.A.F.E. Act), 12 U.S.C. 5101 et seq., and its
implementing regulations (12 CFR part 1007
and 12 CFR part 1008).
2. Mortgage loan originator without NMLSR
ID. An NMLSR ID for the mortgage loan
originator is not required by § 1003.4(a)(34) to
be reported by a financial institution if the
mortgage loan originator is not required to
obtain and has not been assigned an NMLSR
ID. For example, certain individual mortgage loan originators may not be required to
obtain an NMLSR ID for the particular
transaction being reported by the financial
institution, such as a commercial loan. However, some mortgage loan originators may
have obtained an NMLSR ID even if they are
not required to obtain one for that particular transaction. If a mortgage loan originator has been assigned an NMLSR ID, a financial
institution
complies
with
§ 1003.4(a)(34) by reporting the mortgage loan
originator’s NMLSR ID regardless of whether the mortgage loan originator is required
to obtain an NMLSR ID for the particular
transaction being reported by the financial
institution. In the event that the mortgage
loan originator is not required to obtain and
has not been assigned an NMLSR ID, a financial institution complies with § 1003.4(a)(34)
by reporting that the requirement is not applicable.
3. Multiple mortgage loan originators. If more
than one individual associated with a covered loan or application meets the definition
of a mortgage loan originator, as defined in
Regulation G, 12 CFR 1007.102, or Regulation
H, 12 CFR 1008.23, a financial institution
complies with § 1003.4(a)(34) by reporting the
NMLSR ID of the individual mortgage loan
originator with primary responsibility for
the transaction as of the date of action
taken pursuant to § 1003.4(a)(8)(ii). A financial institution that establishes and follows
a reasonable, written policy for determining
which individual mortgage loan originator
has primary responsibility for the reported
transaction as of the date of action taken
complies with § 1003.4(a)(34).

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Paragraph 4(a)(35)
1. Automated underwriting system data—general. A financial institution complies with
§ 1003.4(a)(35) by reporting, except for purchased covered loans, the name of the automated underwriting system (AUS) used by
the financial institution to evaluate the application and the result generated by that
AUS. The following scenarios illustrate when
a financial institution reports the name of
the AUS used by the financial institution to
evaluate the application and the result generated by that AUS.
i. A financial institution that uses an AUS,
as defined in § 1003.4(a)(35)(ii), to evaluate an
application, must report the name of the

AUS used by the financial institution to
evaluate the application and the result generated by that system, regardless of whether
the AUS was used in its underwriting process. For example, if a financial institution
uses an AUS to evaluate an application prior
to submitting the application through its
underwriting process, the financial institution complies with § 1003.4(a)(35) by reporting
the name of the AUS it used to evaluate the
application and the result generated by that
system.
ii. A financial institution that uses an
AUS, as defined in § 1003.4(a)(35)(ii), to evaluate an application, must report the name of
the AUS it used to evaluate the application
and the result generated by that system, regardless of whether the financial institution
intends to hold the covered loan in its portfolio or sell the covered loan. For example, if
a financial institution uses an AUS developed by a securitizer to evaluate an application and intends to sell the covered loan to
that securitizer but ultimately does not sell
the covered loan and instead holds the covered loan in its portfolio, the financial institution complies with § 1003.4(a)(35) by reporting the name of the securitizer’s AUS that
the institution used to evaluate the application and the result generated by that system. Similarly, if a financial institution uses
an AUS developed by a securitizer to evaluate an application to determine whether to
originate the covered loan but does not intend to sell the covered loan to that
securitizer and instead holds the covered
loan in its portfolio, the financial institution
complies with § 1003.4(a)(35) by reporting the
name of the securitizer’s AUS that the institution used to evaluate the application and
the result generated by that system.
iii. A financial institution that uses an
AUS, as defined in § 1003.4(a)(35)(ii), that is
developed by a securitizer to evaluate an application, must report the name of the AUS
it used to evaluate the application and the
result generated by that system, regardless
of whether the securitizer intends to hold
the covered loan it purchased from the financial institution in its portfolio or securitize
the covered loan. For example, if a financial
institution uses an AUS developed by a
securitizer to evaluate an application and
the financial institution sells the covered
loan to that securitizer but the securitizer
holds the covered loan it purchased in its
portfolio, the financial institution complies
with § 1003.4(a)(35) by reporting the name of
the securitizer’s AUS that the institution
used to evaluate the application and the result generated by that system.
iv. A financial institution, which is also a
securitizer, that uses its own AUS, as defined
in § 1003.4(a)(35)(ii), to evaluate an application, must report the name of the AUS it
used to evaluate the application and the result generated by that system, regardless of

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whether the financial institution intends to
hold the covered loan it originates in its
portfolio, purchase the covered loan, or
securitize the covered loan. For example, if a
financial institution, which is also a
securitizer, has developed its own AUS and
uses that AUS to evaluate an application
that it intends to originate and hold in its
portfolio and not purchase or securitize the
covered loan, the financial institution complies with § 1003.4(a)(35) by reporting the
name of its AUS that it used to evaluate the
application and the result generated by that
system.
2. Definition of automated underwriting system. A financial institution must report the
information required by § 1003.4(a)(35)(i) if
the financial institution uses an automated
underwriting system (AUS), as defined in
§ 1003.4(a)(35)(ii), to evaluate an application.
In order for an AUS to be covered by the definition in § 1003.4(a)(35)(ii), the system must
be an electronic tool that has been developed
by a securitizer, Federal government insurer,
or a Federal government guarantor. For example, if a financial institution has developed its own proprietary system that it uses
to evaluate an application and the financial
institution is also a securitizer, then the financial
institution
complies
with
§ 1003.4(a)(35) by reporting the name of that
system and the result generated by that system. On the other hand, if a financial institution has developed its own proprietary system that it uses to evaluate an application
but the financial institution is not a
securitizer, then the financial institution is
not required by § 1003.4(a)(35) to report the
use of that system and the result generated
by that system. In addition, in order for an
AUS to be covered by the definition in
§ 1003.4(a)(35)(ii), the system must provide a
result regarding both the credit risk of the
applicant and the eligibility of the covered
loan to be originated, purchased, insured, or
guaranteed by the securitizer, Federal government insurer, or Federal government
guarantor that developed the system being
used to evaluate the application. For example, if a system is an electronic tool that
provides a determination of the eligibility of
the covered loan to be originated, purchased,
insured, or guaranteed by the securitizer,
Federal government insurer, or Federal government guarantor that developed the system being used by a financial institution to
evaluate the application, but the system
does not also provide an assessment of the
creditworthiness of the applicant—such as,
an evaluation of the applicant’s income,
debt, and credit history—then that system
does not qualify as an AUS, as defined in
§ 1003.4(a)(35)(ii). A financial institution that
uses a system that is not an AUS, as defined
in § 1003.4(a)(35)(ii), to evaluate an application does not report the information required by § 1003.4(a)(35)(i).

3. Reporting automated underwriting system
data—multiple results. When a financial institution uses one or more automated underwriting systems (AUS) to evaluate the application and the system or systems generate
two or more results, the financial institution
complies with § 1003.4(a)(35) by reporting, except for purchased covered loans, the name
of the AUS used by the financial institution
to evaluate the application and the result
generated by that AUS as determined by the
following principles. To determine what AUS
(or AUSs) and result (or results) to report
under § 1003.4(a)(35), a financial institution
follows each of the principles that is applicable to the application in question, in the
order in which they are set forth below.
i. If a financial institution obtains two or
more AUS results and the AUS generating
one of those results corresponds to the loan
type reported pursuant to § 1003.4(a)(2), the
financial
institution
complies
with
§ 1003.4(a)(35) by reporting that AUS name
and result. For example, if a financial institution evaluates an application using the
Federal Housing Administration’s (FHA)
Technology Open to Approved Lenders
(TOTAL) Scorecard and subsequently evaluates the application with an AUS used to determine eligibility for a non-FHA loan, but
ultimately originates an FHA loan, the financial
institution
complies
with
§ 1003.4(a)(35) by reporting TOTAL Scorecard
and the result generated by that system. If a
financial institution obtains two or more
AUS results and more than one of those AUS
results is generated by a system that corresponds to the loan type reported pursuant
to § 1003.4(a)(2), the financial institution
identifies which AUS result should be reported by following the principle set forth
below in comment 4(a)(35)–3.ii.
ii. If a financial institution obtains two or
more AUS results and the AUS generating
one of those results corresponds to the purchaser, insurer, or guarantor, if any, the financial
institution
complies
with
§ 1003.4(a)(35) by reporting that AUS name
and result. For example, if a financial institution evaluates an application with the
AUS of Securitizer A and subsequently evaluates the application with the AUS of
Securitizer B, but the financial institution
ultimately originates a covered loan that it
sells within the same calendar year to
Securitizer A, the financial institution complies with § 1003.4(a)(35) by reporting the
name of Securitizer A’s AUS and the result
generated by that system. If a financial institution obtains two or more AUS results
and more than one of those AUS results is
generated by a system that corresponds to
the purchaser, insurer, or guarantor, if any,
the financial institution identifies which
AUS result should be reported by following
the principle set forth below in comment
4(a)(35)–3.iii.

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12 CFR Ch. X (1–1–16 Edition)

iii. If a financial institution obtains two or
more AUS results and none of the systems
generating those results correspond to the
purchaser, insurer, or guarantor, if any, or
the financial institution is following this
principle because more than one AUS result
is generated by a system that corresponds to
either the loan type or the purchaser, insurer, or guarantor, the financial institution
complies with § 1003.4(a)(35) by reporting the
AUS result generated closest in time to the
credit decision and the name of the AUS that
generated that result. For example, if a financial institution evaluates an application
with the AUS of Securitizer A, subsequently
again evaluates the application with
Securitizer A’s AUS, the financial institution complies with § 1003.4(a)(35) by reporting
the name of Securitizer A’s AUS and the second AUS result. Similarly, if a financial institution obtains a result from an AUS that
requires the financial institution to underwrite the loan manually, but the financial
institution subsequently processes the application through a different AUS that also
generates a result, the financial institution
complies with § 1003.4(a)(35) by reporting the
name of the second AUS that it used to
evaluate the application and the AUS result
generated by that system.
iv. If a financial institution obtains two or
more AUS results at the same time and the
principles in comment 4(a)(35)–3.i through
.iii do not apply, the financial institution
complies with § 1003.4(a)(35) by reporting the
name of all of the AUSs used by the financial
institution to evaluate the application and
the results generated by each of those systems. For example, if a financial institution
simultaneously evaluates an application
with the AUS of Securitizer A and the AUS
of Securitizer B, the financial institution
complies with § 1003.4(a)(35) by reporting the
name of both Securitizer A’s AUS and
Securitizer B’s AUS and the results generated by each of those systems. In any
event, however, the financial institution
does not report more than five AUSs and five
results. If more than five AUSs and five results meet the criteria in this principle, the
financial
institution
complies
with
§ 1003.4(a)(35) by choosing any five among
them to report.
4. Transactions for which an automated underwriting system was not used to evaluate the
application. Section 1003.4(a)(35) does not require a financial institution to evaluate an
application using an automated underwriting system (AUS), as defined in
§ 1003.4(a)(35)(ii). For example, if a financial
institution only manually underwrites an
application and does not use an AUS to
evaluate the application, the financial institution complies with § 1003.4(a)(35) by reporting that the requirement is not applicable
since an AUS was not used to evaluate the
application.

5. Purchased covered loan. A financial institution complies with § 1003.4(a)(35) by reporting that the requirement is not applicable
when the covered loan is a purchased covered
loan.
6. Non-natural person. When the applicant
and co-applicant, if applicable, are not natural persons, a financial institution complies
with § 1003.4(a)(35) by reporting that the requirement is not applicable.
Paragraph 4(a)(37)
1. Open-end line of credit. Section
1003.4(a)(37) requires a financial institution
to identify whether the covered loan or the
application is for an open-end line of credit.
See comments 2(o)–1 and –2 for a discussion
of open-end line of credit and extension of
credit.
Paragraph 4(a)(38)
1. Primary purpose. Section 1003.4(a)(38) requires a financial institution to identify
whether the covered loan is, or the application is for a covered loan that will be, made
primarily for a business or commercial purpose. See comment 3(c)(10)–2 for a discussion
of how to determine the primary purpose of
the transaction and the standard applicable
to financial institution’s determination of
the primary purpose of the transaction. See
comments 3(c)(10)–3 and –4 for examples of
excluded and reportable business- or commercial-purpose transactions.
4(f) Quarterly Recording of Data
1. General. Section 1003.4(f) requires a financial institution to record the data collected pursuant to § 1003.4 on a loan/application register within 30 calendar days after
the end of the calendar quarter in which
final action is taken. Section 1003.4(f) does
not require a financial institution to record
data on a single loan/application register on
a quarterly basis. Rather, for purposes of
§ 1003.4(f), a financial institution may record
data on a single loan/application register or
separately for different branches or different
loan types (such as home purchase or home
improvement loans, or loans on multifamily
dwellings).
2. Agency requirements. Certain State or
Federal regulations may require a financial
institution to record its data more frequently than is required under Regulation C.
3. Form of quarterly records. A financial institution may maintain the records required
by § 1003.4(f) in electronic or any other format, provided the institution can make the
information available to its regulatory agency in a timely manner upon request.
Section 1003.5—Disclosure and Reporting
5(a) Reporting to Agency
1. [Reserved]

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2. [Reserved]
3. [Reserved]
4. [Reserved]
5. Change in appropriate Federal agency. If
the appropriate Federal agency for a covered
institution changes (as a consequence of a
merger or a change in the institution’s charter, for example), the institution must report
data to the new appropriate Federal agency
beginning with the year of the change.
6. Subsidiaries. An institution is a subsidiary of a bank or savings association (for
purposes of reporting HMDA data to the
same agency as the parent) if the bank or
savings association holds or controls an ownership interest that is greater than 50 percent of the institution.
7. Transmittal sheet—additional data submissions. If an additional data submission becomes necessary (for example, because the
institution discovers that data were omitted
from the initial submission, or because revisions are called for), that submission must
be accompanied by a transmittal sheet.
8. Transmittal sheet—revisions or deletions. If
a data submission involves revisions or deletions of previously submitted data, it must
state the total of all line entries contained
in that submission, including both those representing revisions or deletions of previously
submitted entries, and those that are being
resubmitted unchanged or are being submitted for the first time. Depository institutions must provide a list of the MSAs or
Metropolitan Divisions in which they have
home or branch offices.
5(b) Disclosure Statement
1. Business day. For purposes of § 1003.5(b), a
business day is any calendar day other than
a Saturday, Sunday, or legal public holiday.
2. Format of notice. A financial institution
may make the written notice required under
§ 1003.5(b)(2) available in paper or electronic
form.
3. Notice—suggested text. A financial institution may use any text that meets the requirements of § 1003.5(b)(2). The following
language is suggested but is not required:

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Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review.
The data show geographic distribution of loans
and applications; ethnicity, race, sex, age, and
income of applicants and borrowers; and information about loan approvals and denials. These
data are available online at the Consumer Financial
Protection
Bureau’s
Web
site
(www.consumerfinance.gov/hmda). HMDA data
for many other financial institutions are also
available at this Web site.
4. Combined notice. A financial institution
may use the same notice to satisfy the requirements
of
both
§ 1003.5(b)(2)
and
§ 1003.5(c).

5(c) Modified loan/application Register
1. Format of notice. A financial institution
may make the written notice required under
§ 1003.5(c)(1) available in paper or electronic
form.
2. Notice—suggested text. A financial institution may use any text that meets the requirements of § 1003.5(c)(1). The following
language is suggested but is not required:
Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review.
The data show geographic distribution of loans
and applications; ethnicity, race, sex, age, and
income of applicants and borrowers; and information about loan approvals and denials. These
data are available online at the Consumer Financial
Protection
Bureau’s
Web
site
(www.consumerfinance.gov/hmda). HMDA data
for many other financial institutions are also
available at this Web site.
3. Combined notice. A financial institution
may use the same notice to satisfy the requirements
of
both
§ 1003.5(c)
and
§ 1003.5(b)(2).
5(e) Posted Notice of Availability of Data
1. Posted notice—suggested text. A financial
institution may post any text that meets the
requirements of § 1003.5(e). The Bureau or
other appropriate Federal agency for a financial institution may provide a notice that
the institution can post to inform the public
of the availability of its HMDA data, or an
institution may create its own notice. The
following language is suggested but is not required:
Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available online for review.
The data show geographic distribution of loans
and applications; ethnicity, race, sex, age, and
income of applicants and borrowers; and information about loan approvals and denials.
HMDA data for many other financial institutions are also available online. For more information, visit the Consumer Financial Protection
Bureau’s Web site (www.consumerfinance.gov/
hmda).
Section 1003.6—Enforcement
6(b) Bona Fide Errors
1. Bona fide error—information from third
parties. An institution that obtains the property-location information for applications
and loans from third parties (such as appraisers or vendors of ‘‘geocoding’’ services)
is responsible for ensuring that the information reported on its HMDA/LAR is correct.
EFFECTIVE DATE NOTE 2: At 80 FR 66339,
Oct. 28, 2015, supplement I to part 1003 was
amended: a. under the heading ‘‘Section

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1003.5‘‘ by adding paragraphs 1 through 4, revising paragraph 5, and removing paragraphs
6 through 8, and b. under the heading ‘‘Section 1003.6’’, under the subheading ‘‘6(b) Bona
Fide Errors’’ by revising paragraph 1, effective Jan. 1, 2019. For the convenience of the
user, the added and revised text is set forth
as follows:

SUPPLEMENT I TO PART 1003—OFFICIAL
INTERPRETATIONS
*

Section 1003.5—Disclosure and Reporting

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5(a) Reporting to Agency
1. Quarterly reporting—coverage. i. Section
1003.5(a)(1)(ii) requires that, within 60 calendar days after the end of each calendar
quarter except the fourth quarter, a financial institution that reported for the preceding calendar year at least 60,000 covered
loans and applications, combined, excluding
purchased covered loans, must submit its
loan/application register containing all data
required to be recorded for that quarter pursuant to § 1003.4(f). For example, if for calendar year 2019 Financial Institution A reports 60,000 covered loans, excluding purchased covered loans, it must comply with
§ 1003.5(a)(1)(ii) in calendar year 2020. Similarly, if for calendar year 2019 Financial Institution A reports 20,000 applications and
40,000 covered loans, combined, excluding
purchased covered loans, it must comply
with § 1003.5(a)(1)(ii) in calendar year 2020. If
for calendar year 2020 Financial Institution
A reports fewer than 60,000 covered loans and
applications, combined, excluding purchased
covered loans, it is not required to comply
with § 1003.5(a)(1)(ii) in calendar year 2021.
ii. In the calendar year of a merger or acquisition, the surviving or newly formed financial institution is required to comply
with § 1003.5(a)(1)(ii), effective the date of the
merger or acquisition, if a combined total of
at least 60,000 covered loans and applications, combined, excluding purchased covered loans, is reported for the preceding calendar year by or for the surviving or newly
formed financial institution and each financial institution or branch office merged or
acquired. For example, Financial Institution
A and Financial Institution B merge to form
Financial Institution C in 2020. Financial Institution A reports 40,000 covered loans and
applications, combined, excluding purchased
covered loans, for 2019. Financial Institution
B reports 21,000 covered loans and applications, combined, excluding purchased covered loans, for 2019. Financial Institution C
is required to comply with § 1003.5(a)(1)(ii) effective the date of the merger. Similarly, for
example, Financial Institution A acquires a
branch office of Financial Institution B in

2020. Financial Institution A reports 58,000
covered loans and applications, combined,
excluding purchased covered loans, for 2019.
Financial Institution B reports 3,000 covered
loans and applications, combined, excluding
purchased covered loans, for 2019 for the
branch office acquired by Financial Institution A. Financial Institution A is required to
comply with § 1003.5(a)(1)(ii) in 2020 effective
the date of the branch acquisition.
iii. In the calendar year following a merger
or acquisition, the surviving or newly formed
financial institution is required to comply
with § 1003.5(a)(1)(ii) if a combined total of at
least 60,000 covered loans and applications,
combined, excluding purchased covered
loans, is reported for the preceding calendar
year by or for the surviving or newly formed
financial institution and each financial institution or branch office merged or acquired. For example, Financial Institution A
and Financial Institution B merge to form
Financial Institution C in 2019. Financial Institution C reports 21,000 covered loans and
applications, combined, excluding purchased
covered loans, each for Financial Institution
A, B, and C for 2019, for a combined total of
63,000 covered loans and applications reported, excluding purchased covered loans.
Financial Institution C is required to comply
with § 1003.5(a)(1)(ii) in 2020. Similarly, for
example, Financial Institution A acquires a
branch office of Financial Institution B in
2019. Financial Institution A reports 58,000
covered loans and applications, combined,
excluding purchased covered loans, for 2019.
Financial Institution A or B reports 3,000
covered loans and applications, combined,
excluding purchased covered loans, for 2019
for the branch office acquired by Financial
Institution A. Financial Institution A is required to comply with § 1003.5(a)(1)(ii) in 2020.
2. Change in appropriate Federal agency. If
the appropriate Federal agency for a financial institution changes (as a consequence of
a merger or a change in the institution’s
charter, for example), the institution must
identify its new appropriate Federal agency
in its annual submission of data pursuant to
§ 1003.5(a)(1)(i) for the year of the change. For
example, if an institution’s appropriate Federal agency changes in February 2018, it
must identify its new appropriate Federal
agency beginning with the annual submission of its 2018 data by March 1, 2019 pursuant to § 1003.5(a)(1)(i). For an institution required to comply with § 1003.5(a)(1)(ii), the institution also must identify its new appropriate Federal agency in its quarterly submission of data pursuant to § 1003.5(a)(1)(ii)
beginning with its submission for the quarter of the change, unless the change occurs
during the fourth quarter. For example, if
the appropriate Federal agency for an institution
required
to
comply
with
§ 1003.5(a)(1)(ii) changes during February 2020,

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§ 1004.2

the institution must identify its new appropriate Federal agency beginning with its
quarterly
submission
pursuant
to
§ 1003.5(a)(1)(ii) for the first quarter of 2020. If
the appropriate Federal agency for an institution
required
to
comply
with
§ 1003.5(a)(1)(ii) changes during December
2020, the institution must identify its new
appropriate Federal agency beginning with
the annual submission of its 2020 data by
March 1, 2021 pursuant to § 1003.5(a)(1)(i).
3. Subsidiaries. A financial institution is a
subsidiary of a bank or savings association
(for purposes of reporting HMDA data to the
same agency as the parent) if the bank or
savings association holds or controls an ownership interest in the institution that is
greater than 50 percent.
4. Retention. A financial institution may
satisfy the requirement under § 1003.5(a)(1)(i)
that it retain a copy of its submitted annual
loan/application register for three years by
retaining a copy of the annual loan/application register in either electronic or paper
form.
5. Federal Taxpayer Identification Number.
Section 1003.5(a)(3) requires a financial institution to provide its Federal Taxpayer Identification Number with its data submission.
If a financial institution obtains a new Federal Taxpayer Identification Number, it
should provide the new number in its subsequent data submission. For example, if two
financial institutions that previously reported HMDA data under this part merge
and the surviving institution retained its
Legal Entity Identifier but obtained a new
Federal Taxpayer Identification Number,
then the surviving institution should report
the new Federal Taxpayer Identification
Number with its HMDA data submission.

Section 1003.6—Enforcement
6(b) Bona Fide Errors

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1. Information from third parties. Section
1003.6(b) provides that an error in compiling
or recording data for a covered loan or application is not a violation of the Act or this
part if the error was unintentional and occurred despite the maintenance of procedures reasonably adapted to avoid such an
error. A financial institution that obtains
the required data, such as property-location
information, from third parties is responsible for ensuring that the information reported pursuant to § 1003.5 is correct.

PART 1004—ALTERNATIVE MORTGAGE TRANSACTION PARITY
(REGULATION D)
Sec.
1004.1 Authority, purpose, and scope.
1004.2 Definitions.
1004.3 Preemption of State law.
1004.4 Requirements for alternative mortgage transactions.
APPENDIX A TO PART 1004—OFFICIAL COMMENTARY ON REGULATION D
AUTHORITY: 12 U.S.C. 3802, 3803; 15 U.S.C.
1604, 1639b; Pub. L. No. 111–203, 124 Stat. 1376.
SOURCE: 76 FR 44242, July 22, 2011, unless
otherwise noted.

§ 1004.1 Authority, purpose, and scope.
(a) Authority. This regulation, known
as Regulation D, is issued by the Bureau of Consumer Financial Protection
to implement the Alternative Mortgage Transaction Parity Act, 12 U.S.C.
3801 et seq., as amended by title X, Section 1083 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (Pub. L. 111–203, 124 Stat.
1376). Section 1004.4 is issued pursuant
to the Alternative Mortgage Transaction Parity Act (as amended) and the
Truth in Lending Act, 15 U.S.C. 1601 et
seq.
(b) Purpose. Consistent with the Alternative Mortgage Transaction Parity
Act, the Truth in Lending Act, and the
Dodd-Frank Wall Street Reform and
Consumer Protection Act, the purpose
of this regulation is to balance access
to responsible credit and enhanced parity between State and federal housing
creditors regarding the making, purchase, and enforcement of alternative
mortgage transactions with consumer
protection and the interests of the
States in regulating mortgage transactions generally.
(c) Scope. This regulation applies to
an alternative mortgage transaction if
the creditor received an application for
that transaction on or after July 22,
2011. This regulation does not apply to
a transaction if the creditor received
the application for that transaction before July 22, 2011.
§ 1004.2 Definitions.
For purposes of this part:
Alternative
mortgage
transaction
means a loan, credit sale, or account:

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File Type	application/pdf
File Modified	2016-07-08
File Created	2016-07-08