Is rate spread data reported on non owner occupied properties

Better management builds a better bank. We help you break down the silos, allowing your organization to collaborate for seamless, comprehensive risk management and compliance on the enterprise level.

Our secure solutions work together to help your credit union with all aspects of risk and compliance management.

Mortgage lenders have unique compliance and risk management needs. We help you prevent costly errors, maximize opportunities to expand your business, and stay compliant.

Providing your organization with the information and capability to manage risk and compliance, making you a more attractive vendor to clients in the financial services industry.

Are you prepared, protected, and positioned for opportunities? Let us help you experience the upside of risk.

With vendors, what you don’t know can hurt you. We keep an eye on your vendors for you, from the most critical to the least.

Make it easy to keep your employees up to date by managing and organizing the most current and important company information in one place.

Our integrated software and services help to ensure comprehensive, continuous exam readiness for your financial institution.

Your weekly dose of insights into the world of risk and compliance from the industry experts—subscribe to get regular updates right to your inbox!

Sharing our insights and expertise with you every month—get signed up and listen in on a topic that’s relevant to your role right here.

Smaller financial institutions have a unique set of challenges. We work with thousands of them—here’s your one stop shop to stay on top of the issues relevant to you.

The Ncast is the place to hear and learn from industry experts on their viewpoint, challenges, and how they’re dealing with issues just like you every month!

A must-read for banking industry professionals who care about creating value and building resilient institutions.

Ncontracts and QuestSoft Lending Compliance customers can find their respective support resources and contacts here!

From our yearly user conference to over 100 conferences around the country, whether virtual or in-person, Ncontracts will be there—find out our next stop and come see us!

Interested in joining forces? Find out about our amazing partners and learn how we can work together here.

Our customer hub and the place where hundreds of users interact with each other and help solve issues, identify new opportunities, and build a great community!

With new product releases every week, our pace of innovation is 2nd to none. Find out about our newest releases here.

Learn all about our integrated approach to risk and compliance for financial institutions around the country.

From state and national associations to implementation and referral partners, we work with some of the best—find out how you can join our partner team!

Our customer hub and the place where hundreds of users interact with each other and help solve issues, identify new opportunities, and build a great community!

Sharing our insights and expertise with you every month—get signed up and listen in on a topic that’s relevant to your role right here.

From our yearly user conference to over 100 conferences around the country, whether virtual or in-person, Ncontracts will be there—find out our next stop and come see us!

Interested in joining forces? Find out about our amazing partners and learn how we can work together here.

• By Institution Type

Better management builds a better bank. We help you break down the silos, allowing your organization to collaborate for seamless, comprehensive risk management and compliance on the enterprise level.

Our secure solutions work together to help your credit union with all aspects of risk and compliance management.

Mortgage lenders have unique compliance and risk management needs. We help you prevent costly errors, maximize opportunities to expand your business, and stay compliant.

Providing your organization with the information and capability to manage risk and compliance, making you a more attractive vendor to clients in the financial services industry.

Are you prepared, protected, and positioned for opportunities? Let us help you experience the upside of risk.

With vendors, what you don’t know can hurt you. We keep an eye on your vendors for you, from the most critical to the least.

Make it easy to keep your employees up to date by managing and organizing the most current and important company information in one place.

Our integrated software and services help to ensure comprehensive, continuous exam readiness for your financial institution.

Your weekly dose of insights into the world of risk and compliance from the industry experts—subscribe to get regular updates right to your inbox!

Sharing our insights and expertise with you every month—get signed up and listen in on a topic that’s relevant to your role right here.

Smaller financial institutions have a unique set of challenges. We work with thousands of them—here’s your one stop shop to stay on top of the issues relevant to you.

The Ncast is the place to hear and learn from industry experts on their viewpoint, challenges, and how they’re dealing with issues just like you every month!

A must-read for banking industry professionals who care about creating value and building resilient institutions.

Ncontracts and QuestSoft Lending Compliance customers can find their respective support resources and contacts here!

From our yearly user conference to over 100 conferences around the country, whether virtual or in-person, Ncontracts will be there—find out our next stop and come see us!

Interested in joining forces? Find out about our amazing partners and learn how we can work together here.

Our customer hub and the place where hundreds of users interact with each other and help solve issues, identify new opportunities, and build a great community!

With new product releases every week, our pace of innovation is 2nd to none. Find out about our newest releases here.

Learn all about our integrated approach to risk and compliance for financial institutions around the country.

From state and national associations to implementation and referral partners, we work with some of the best—find out how you can join our partner team!

Our customer hub and the place where hundreds of users interact with each other and help solve issues, identify new opportunities, and build a great community!

Sharing our insights and expertise with you every month—get signed up and listen in on a topic that’s relevant to your role right here.

From our yearly user conference to over 100 conferences around the country, whether virtual or in-person, Ncontracts will be there—find out our next stop and come see us!

Interested in joining forces? Find out about our amazing partners and learn how we can work together here.

HMDA Frequently Asked Questions

This page is a repository for some of the most frequently asked questions we receive in Product Support.

HMDA Data Fields

42 new or modified data fields

The CFPB has added or modified 42 data points to be collected, recorded, and reported, bringing the total number of HMDA fields to 110! This includes the addition of Reverse Mortgages and Open-End Lines of Credit. HMDA now requires reporting of all dwelling secured consumer transactions regardless of purpose.

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Government Monitoring Information (GMI)

Should we put “Not Applicable” or “Not Collected on the basis of visual observation or surname” for App. Taken by Internet?

Note that the option of “Not Applicable” would only apply to loans whereby the borrower(s) are non-natural person(s) OR if the Action Taken equals: 6 – Purchased by your Institution. Please refer to pages 117-127 — these are HMDA reportable GMI fields per the CFPB FIG .

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Who Must Report

Public HMDA Data Fields

Which public HMDA data fields will be modified by the CFPB?

The CFPB has announced that it will modify the following public HMDA data fields: Loan Amount, Age of Applicant, Age of Co-Applicant, Debt-to-Income Ratio, Property Value, Total Units, and Multifamily Affordable Units. These fields will no longer be published as exact values.

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Fair Lending Implications

What is this I hear about CFPB HMDA rules automating fair lending analysis? Will this put my company at greater risk?

With the expanded HMDA data, fair lending analysis has become more automated, raising the risk of penalties and corrective actions.

With the expansion to commercial/consumer systems, there will now be a formalized process to collect this information. We expect these trends to continue, and lenders need to be prepared.

The new rules make it very easy for the CFPB and other regulators to apply massive fair lending analysis to all of the submitted HMDA data and release information about the top egregious violators. Therefore, we recommend you investigate and consider our fair lending solutions.

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CLTV & Q617 Quality Edit

Why am I receiving a Q617 Quality Edit on my loans?

The Q617 edit has been generating a lot questions as there is still quite a bit of industry confusion surrounding the logic behind it. Most frequently it is seen in FHA loans. Based on feedback from the CFPB and various LOS partners, here is what we know:

• FHA standards are established for qualification purposes – CLTV is calculated using the “base loan amount” for LTV/CLTV limits.
• HMDA requires the CLTV to be calculated using the “total amount securing the debt”.
• The Q617 Quality Edit is intended to identify a potential error. If the error is systemic in nature, the reporting entity must make the appropriate correction prior to submission.
• If your LOS allows you to establish business rules for populating specific data fields on your HMDA screens, we encourage you to consider creating such rules to manage CLTV.

In the past, there has been some ambiguity regarding how the CFPB intends to calculate the Q617 ‘comparison LTV’, specifically around decimal accuracy. The CFPB has recently confirmed that they will calculate the LTV to the same number of decimal places as the CLTV reported in the LAR file. For example, if the CLTV for a given loan is reported as 95, the CFPB will calculate the LTV as a whole number. Alternatively, if the CLTV is reported as 95.123, the CFPB will calculate the LTV to three decimal places. This logic will be incorporated into the Q617 calculation and included in our next quarterly release.

We continue to monitor this topic closely and expect to continue making minor adjustments to the logic around Q617 throughout the year as we learn more from the CFPB.

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Universal Loan Identifier (ULI)

Does Compliance RELIEF generate a Universal Loan Identifier (ULI) for us if our LOS doesn’t?

Even though your LOS is mostly responsible for ULI generation, we have added a ULI generator to our CFPB Testing Module in Compliance RELIEF. This allows users to create an individual ULI with check digit from an existing Legal Entity Identifier (LEI) and Loan/Application Number. We are currently evaluating batch generation of the ULI at import.

Does Compliance RELIEF verify the two-digit check digit required for the Universal Loan Identifier (ULI)?

Yes, we offer the ability to verify the check digit on every ULI.

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Non-Universal Loan Identifier (NULI)

Will Compliance RELIEF generate a NULI for partially exempt institutions?

Yes, after setting your “Preferences” for “Partial Exempt Reporting”, Compliance RELIEF will replace the ULI with a NULI. The NULI will use the Application/Loan Number and an optional year prefix.

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Legal Entity Identifier (LEI)

Will Compliance RELIEF generate a Legal Entity Identifier (LEI) for us?

No. If your company does not already have an LEI you will need to obtain one as soon as possible from the GMEI Utility. The website is endorsed by the Global LEI Foundation and also has a search function. There are some frequently asked questions on their website and here are a few highlights derived from those FAQs:

• Who can register the company: You must currently be an employee of the company you are registering, and be authorized by the company to register for an LEI. Alternatively, financial institutions may use a third party through an assisted registration process. The person registering the firm will need a user account, which can be created here.
• What information is needed to register: The basic information listed in the ISO 17422 such as the company’s legal name, registered address, headquarters address, legal form, etc.
• How much does the registration cost: GMEI Utility charges $200 for a registration request, with a $19 surcharge. To maintain the LEI moving forward, the fee is $100 with a $19 surcharge. For more information, here are the FAQs specific to payment.
• How long does this process take: Once payment is processed, the GMEI will validate the company using public sources. Once this process is complete, it takes about three business days for an LEI to be issued in the GMEI database. Overall, GMEI Utility’s FAQs say most requests are “cleared” within three to five business days.

Check Digit and ULI Checker

Does HMDA RELIEF's Rate Spread calculation match the results of the new CFPB Rate Spread Calculator?

Yes. Check Digit calculations are universal. In addition, HMDA RELIEF contains a Group Edit to perform batch calculations whenever ULIs are not present.

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Webinars

Will Ncontracts have webinars to help me?

Ncontracts supports you with educational webinars throughout the year on a wide variety of compliance and risk topics. CLICK HERE to view our recent webinars.

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Using the CFPB HMDA Platform

Do we need to sign up for access to the new CFPB platform for HMDA submission?

Yes! All customers will need to sign up for access to the CFPB Platform. Ncontracts is your conduit to the CFPB. We have assembled all submission-related information on our Submission Central website. It answers all of your burning questions about the new submission process. Rest assured, Ncontracts will be here to assist you at every step along the way.

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CFPB Rate Spread Calculator

Does HMDA RELIEF's Rate Spread calculation match the results of the new CFPB Rate Spread Calculator?

Yes, the Rate Spread calculation method has not changed. The CFPB simply added the FFIEC Rate Calculator engine to their website and changed the file formats for the APOR tables from CSV to pipe delimited. HMDA RELIEF has always calculated the Rate Spread per the regulation. Please note that if the calculated Rate Spread in HMDA RELIEF differs from the spread calculated by your LOS, you have the option to change the Decimal Accuracy and Rounding Method under HMDA Preferences.

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Where's My LAR?

In previous years, we were able to print their HMDA Loan Application Register (LAR). In 2018, when we go to the Reports tab in HMDA RELIEF we can’t print the LAR report any longer. Why?

Beginning in 2018, the CFPB has advised the following:

“Given the new format with 110 fields and the new tools available, the printed LAR form is no longer in use.”

We know that many of our customers miss the old LAR form. Unfortunately, that format is no longer feasible (or printable) with 110 HMDA fields. To accommodate our customers, HMDA RELIEF now allows the export of your HMDA data to an Excel spreadsheet from the Reports=>LAR tab. The spreadsheet contains all of the HMDA reportable fields as they pertain to the Filing Instructions Guide Table 2. To simplify the form, we have combined the GMI fields. Please note that this report is not to be used for submission or re-importing into the software.

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Dodd-Frank Regulatory Relief Bill

How does HMDA RELIEF handle partial exemptions from S.2155, the Dodd-Frank Regulatory Relief bill?

The CFPB procedural rule to implement and clarify changes made to HMDA by the Regulatory Relief Bill S.2155 has been fully implemented into HMDA RELIEF.

The rules are as follows:

• If you are NOT a bank or credit union with under 500 HMDA originations, nothing with HMDA is going to change. S.2155 was designed to provide a reduced HMDA reporting burden only to low volume banks and credit unions. If you are a non-depository of any size, this bill will not provide any promised relief.
• All HMDA filers must still collect and submit HMDA data. S.2155 has provisions where smaller banks and credit unions will not need to submit “expanded” data under HMDA in the future. All data points you have submitted since Year 2004 are still required. Though the new data elements may not need to be submitted any longer, you may still be held accountable for them. Additional questions and concerns regarding the expanded government monitoring information, still very much remain.

The recent CFPB Executive Summary provides some much-needed guidance and clarification:

• The LAR format will not be changed.
• Institutions subject to the “partial exemption” of data will enter an exemption code.
• The CFPB released its updatedFiling Instructions Guide(FIG), which defines the exempt fields and applicable codes.
• All HMDA reporters will use the same CFPB HMDA platform which QuestSoft integrates with.

So, what does this mean?

Institutions that are exempt have the option to designate themselves as such within the HMDA tab of the Preferences menu of Compliance RELIEF.

Here you can mark your institution as exempt. Additionally, you will have several data points available to mark that your institution chooses to report, regardless of your exemption status (sort by LAR order, or Alphabetically).

After the Exempt Institution option is checked, when viewing a loan record you will now have the following new options at the top right of the screen:

The system will default to “Data View” which allows you to see all data fields imported.

However, if you click the “Exempt View” radio button, you will see all exempt fields change as shown below:

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You will also be able to view your exempt preferences by clicking the “View Exempt Pref.” button shown here:

In this view-only window, you can review your exempt preferences:

We have also created an internal field reconciliation and identified the value of all exempt fields.