FDIC Q&As – We use the Appraisal Date as the Application Date -- Can we be off by a day or two in reporting Application Dates? Is it OK to use the Date of the Note as the Action Date or do we have to use the funding date?

Compliance > Lending > Fair Lending
Q:   We use the Appraisal Date as the Application Date -- Can we be off by a day or two in reporting Application Dates?  Is it OK to use the Date of the Note as the Action Date or do we have to use the funding date?
 
A:  We recommend that you get a copy of “A Guide to HMDA Reporting – Getting It Right!” for 2010 HMDA reporting.  You can download this guide from the FFIEC website.  As long as you follow the guidance in HMDA Getting It Right!, you should not have any problems explaining to examiners how or why you reported HMDA data as you did. 
 
Specifically, the Guide states in appendix A (I.A.2.a) the application date should be reported as the date the loan application was received by your institution or the date shown on the application.  Therefore, if you received the completed application on the date of the appraisal, then you could use the appraisal date as the application date.  
 
Appendix D reads as follows regarding the action taken date:  
 
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.
 
 
ADDITIONAL INFORMATION:
This Q&A was obtained from FDIC’s website, in a document entitled “November 16, 2010 FDIC Teleconference on Fair Lending Issues,” which may be found here: 
 

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