CFPB HMDA FAQ Ethnicity 5 - What should a financial institution report for race and ethnicity if … selects “I do not wish to provide this information” and also self identifies…for an application taken by mail, internet, or telephone?

Compliance > Regulation C - HMDA > CFPB
Q:   What should a financial institution report for race and ethnicity if an applicant selects “I do not wish to provide this information” and also self identifies using one or more of the aggregate or disaggregate race or ethnicity categories for an application taken by mail, internet, or telephone?
 
A:  In these situations, the financial institution should report the code(s) for the race or ethnicity information, as applicable, provided by the applicant and should not report the code for “Information not provided by the applicant in a mail, internet, or telephone application” (Code 3 for Ethnicity or Code 6 for Race).

Instruction 13 of Appendix B to Regulation C, 12 CFR Part 1003 provides that “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 race, ethnicity, and sex that was provided by the applicant.” Thus, when an applicant’s race or ethnicity information is provided by mail, internet, or telephone, the financial institution reports only the race or ethnicity information, as applicable, provided by the applicant, and the financial institution should not report the code for “Information not provided by the applicant in a mail, internet, or telephone application.”

If, however, the applicant checks only the “I do not wish to provide this information” box and does not provide other race or ethnicity information on an application that is taken by mail or on the internet, or makes that selection when applying by telephone, then Instruction 11 of Appendix B to Part 1003 provides that the financial institution must report the code for “information not provided by applicant in mail, internet, or telephone application.”

For general information on the collection and reporting of applicant information, see section 2.4 of the HMDA Small Entity Compliance Guide and Appendix B to Part 1003—Form and Instructions for Data Collection on Ethnicity, Race, and Sex.
 
 
This Q&A was based on information contained in the Consumer Financial Protection Bureau’s HMDA FAQs Compliance Aid, which may be updated from time to time.  This HMDA-related issuance may be found here: 
 
 

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