V. Lending — HMDA
FDIC Consumer Compliance Examination Manual — Jul y 2021 V–9.7
commercial purposes, unless it is a home improvement
loan, a home purchase loan, or a refinancing. 12 CFR
1003.3(c)(10). Not all transactions that are primarily for a
business purpose are excluded transactions. Thus, a
financial institution must collect, record, and report data
for dwelling-secured, business-purpose loans and lines of
credit that are home improvement loans, home purchase
loans, or refinancings if no other exclusion applies. For
more information on determining whether a loan or line
of credit is a home purchase loan, home improvement
loan, or refinancing, see 12 CFR 1003.2(f), (i), (j), and (p)
and the associated commentary .
Regulation C provides that, if a closed-end mortgage loan
or an open-end line of credit is deemed to be primarily for
a business, commercial, or organizational purpose under
Regulation Z, 12 CFR 1026.3(a) and its official
commentary, then the loan or line of credit also is deemed
to be primarily for a business or commercial purpose.
Comment 3(c)(10)-2. For more information and
examples of business-purpose or commercial-purpose
transactions that are covered loans, see comments
3(c)(10)-3 and -4.
11. A closed-end mortgage loan if the financial institution
originated fewer than 100 closed-end mortgage loans in
either of the two preceding calendar years. 12 CFR
1003.3(c)(11). A financial institution is not required to
collect, record, or report closed-end mortgage loans if it
originated fewer than 100 of them in either of the two
preceding calendar years. However, the financial
institution may still be required to collect and report
information regarding open-end lines of credit, depending
on the number of open-end lines of credit it originates in
the preceding two calendar years. Comment 3(c)(11)-1.
For more information on how to determine if a financial
institution “originated” a particular loan when multiple
entities are involved in the transaction, see comments
4(a)-2 through -4.
A financial institution may report applications for,
originations of, and purchases of closed-end mortgage
loans that are excluded transactions under 12 CFR
1003.3(c)(11). However, a financial institution that
chooses to report such excluded applications,
originations, and purchases must report all such
app lications it received for closed-end mortgage loans, all
closed-end mortgage loans it originates, and all closed-
end mortgage loans it purchases that would otherwise be
covered loans for a given calendar year. 12 CFR
1003.3(c)(11). Regulation B permits a financial
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Amendments to Equal Credit Opportunity Act (Regulation B) Ethnicity and
Race Information Collection. 82 Fed. Reg. 45680 (Oct. 2, 2017) (October
2017 Regulation B Amendments). This final rule amends Regulation B to
allow creditors flexibility in complying with Regulation B to facilitate
compliance with Regulation C and transition to the 2016 Uniform
Residential Loan Application (URLA).
institution to collect information regarding the ethnicity,
race, and sex of an ap plicant for a closed-end mortgage
loan that is an excluded transaction under 12 CFR
1003.3(c)(11), if the financial institution submits HM DA
data concerning such closed-end mortgage loans and
applications or if it submitted such HM DA data for any of
the preceding five calendar y ears.
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12. An open-end line of credit if the number of open-end
lines of credit that the financial institution originated in
either of the two p receding calendar years does not meet
or exceed the applicable threshold. 12 CFR
1003.3(c)(12); comment 3(c)(12)-1. A financial
institution is not required to collect, record, or report
open-end lines of credit if it originated fewer than 500 of
them in either of the two preceding calendar years.
However, the financial institution will still be required to
collect and report information regarding closed-end
mortgage loans if it originated at least 100 of them in each
of the two preceding calendar years. Comment 3(c)(12)-
1. For more information on how to determine if a
financial institution “originated” a particular line of credit
when multiple entities are involved in the transaction, see
comments 4(a)-2 through -4.
A financial institution may report applications for,
originations of, or purchases of open-end lines of credit
that are excluded transactions under 12 CFR
1003.3(c)(12). However, a financial institution that
chooses to report such excluded applications,
originations, or purchases must report all app lications for
otherwise covered open-end lines of credit that it receives,
all otherwise covered open-end lines of credit it
originates, and all otherwise covered open-end lines of
credit it purchases that would otherwise be covered loans
for a given calendar year. 12 CFR 1003.3(c)(12);
comment 3(c)(12)-2. Regulation B permits a financial
institution to collect information regarding the ethnicity,
race, and sex of an applicant for an open-end line of credit
that is an excluded transaction under 12 CFR
1003.3(c)(12), if it submits HM DA data concerning such
open-end lines of credit and applications or if it submitted
such HMDA data for any of the preceding five calendar
years.
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13. A transaction that provided (or, in the case of an
app lication, p roposed to provide) new funds to the
borrower in advance of being consolidated in a New York
CEM A classified as a sup plemental mortgage under New
York Tax Law Section 255. However, the transaction is
excluded only if final action on the consolidation was
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October 2017 Regulation B Amendments.