Home Mortgage Disclosure Act (HMDA)/Reg C

Frequently Asked Questions

Disclaimer: These questions and answers are provided based on those received during webinars provided by the Ellie Mae Compliance Department, and those submitted to Ellie Mae directly by you. This content is intended for general information purposes with the goal of assisting Ellie Mae’s customers and non-customers, in complying with the future provisions under Regulation C (HMDA). This information is provided as a courtesy to Ellie Mae’s customers and Ellie Mae makes no representation or warranty regarding the accuracy of the information set forth herein, and you may not rely on this information to ensure your company’s compliance with Regulation C (HMDA). This publication should not be construed as legal advice or opinion on any specific facts or circumstances, including the application of the HMDA regulations. You are advised to consult your own compliance staff or attorney regarding your specific residential mortgage lending questions or situation to ensure your compliance with all applicable laws and regulations.

Do we report "Loan Amount" as the "outstanding unpaid balance" not the original loan amount if we perform interim servicing until loan sold?

Revised September 30, 2016

If you are the originating institution, the loan is a closed-end mortgage loan, and the loan is not sold to another entity during the calendar year being reported on the LAR, you will report the loan amount as stated on the legal obligation. Here is a summary of how the loan amount is reported on the LAR:

Closed Loans (Originated) -

  • Closed-End Mortgage Loan = the amount to be repaid as disclosed on the legal obligation (not including a purchased loan, an assumption, or a reverse mortgage).
  • Open-End Line of Credit = the amount of credit available to the borrower under the terms of the plan (not applicable to a reverse mortgage provided via an open-end line of credit).
  • Refinance = the amount of credit extended under the terms of the new debt obligation.
  • Assumption = the unpaid principal balance at the time of the assumption.
  • Reverse Mortgage = the initial principal limit (even if not federally insured).
  • Counteroffers (accepted) = the loan amount granted (see closed-end and open-end loan amount detail above).
  • Multiple-Purpose Loans = the entire amount of the covered loan, even if only a part of the proceeds is intended for home purchase, home improvement, or refinancing.
  • Home Improvement Loans = the entire amount of a home improvement loan, even if only a part of the proceeds is intended for home improvement.
Loan Requests Receiving Adverse Action (Applications) -
  • Counteroffers (rejected by the consumer) = the loan amount initially requested (prior to the counteroffered amount).
  • Approved But Not Accepted (including preapprovals) = the loan amount approved.
  • Denial (including preapprovals) = the loan amount for which the applicant applied.
  • Closed for Incompleteness = the loan amount for which the applicant applied.
  • Withdrawn = the loan amount for which the applicant applied.
Purchased Loans -
  • Closed-End Mortgage Loans = the unpaid principal balance at the time of purchase.
  • Open-End Line of Credit = the amount of credit available to the borrower under the terms of the plan.
Citation(s): §1003.4(a)(7); Commentary ¶4(a)(7)-1 thru -9