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.

Are "fix and flip loans" reportable for HMDA purposes?

Revised September 30, 2016

The commentary to Regulation C addresses the exclusion for such loans as long as the loan is for temporary financing not intended to be replaced by permanent financing. Here is a summary of the commentary regarding such loans:

Investor Renovate and Resell Loans - These loans are also excluded when the temporary financing is not intended to be replaced by permanent financing. The commentary provides an example using a nine-month expiration term on the temporary financing, but also make it clear that the determination is based on the lack of permanent financing expected not the fact that the loan term is for a short period of time.

Loan or line of credit to construct a dwelling for sale - A construction-only loan or line of credit is considered temporary financing and excluded if the loan or line of credit is extended to a person exclusively to construct a dwelling for sale.

Citation(s):§1003.3(c)(3); Commentary ¶3(c)(3)-1i-v