“Branch Office” for HMDA Purposes – NMP Skip to main content

“Branch Office” for HMDA Purposes

Jul 21, 2016

Question: We are a for-profit institution and have been reviewing our HMDA category based on being a “branch office.” For purposes of HMDA, what is a “branch office?"

Answer
Let’s first understand that a “branch office” is defined differently for depository institutions and non-depository institutions.       

A “branch office” of a depository institution is any office of a bank or savings association that is approved as a branch by a federal or state supervisory agency. A branch office does not include a free-standing electronic terminal, such as an automated teller machine, loan production office, an office of any affiliate, or an office of a third party (such as a loan broker). [12 CFR § 203.2(c)( 1); 12 CFR Part 203, Supplement I, § 203.2(c)-2]

A “branch office” of a credit union is any office where member accounts are established or loans are made, whether or not the office has been approved as a branch by a federal or state agency. [12 CFR § 203.2(c)( 1); 12 CFR Part 203, Supplement I, § 203.2(c)-1]

With respect to a for-profit institution, a “branch office” of such institution is any office of a for-profit mortgage institution that is not a bank, savings association or credit union (i.e., a non-depository institution) that takes applications from the public for home-purchase loans, home-improvement loans or refinancings. Also, a non-depository institution is deemed to have a branch office in a metropolitan area if, during the preceding calendar year, the institution received applications for, originated, or purchased five or more home-purchase loans, home-improvement loans or refinancings related to property in the metropolitan area. [12 CFR § 203.2(c)( 2); 12 CFR Part 203, Supplement I, § 203.2(c)-3]



Jonathan Foxx is president and managing director of Lenders Compliance Group, Brokers Compliance Group, Servicers Compliance Group and Vendors Compliance Group, national companies devoted to providing regulatory compliance advice and counsel to the mortgage industry. He may be contacted by phone at (516) 442-3456, by e-mail at [email protected] or visit LendersComplianceGroup.com

About the author
Published
Jul 21, 2016
CFPB Issues AI Underwriting Guidance On Adverse Action Notices

The agency says proprietary and machine-learning models do not relieve lenders of their fair lending and disclosure responsibilities

VantageScore Says 4.0 Model Could Unlock $1 Trillion In Mortgage Originations

New study says VantageScore 4.0 scores five million more creditworthy borrowers than FICO Score 10T, expanding lending opportunities as the industry prepares for the GSE credit score transition

MISMO Updates Mortgage Insurance Standards To Support FICO 10T, VantageScore 4.0

New implementation guide standardizes mortgage insurance data exchange, helping lenders, insurers and technology providers prepare systems for newer credit scoring models

Congress Weighs New Roadmap To End Fannie, Freddie Conservatorship

Rep. Scott Fitzgerald's three-bill housing package would establish a statutory framework for releasing the GSEs while expanding construction lending and easing some TRID compliance requirements

CHLA Backs Bank Capital Proposal, Questions Impact On Mortgage Lending

Trade group supports lower mortgage risk weights but says broader market forces — not capital rules — drove banks' retreat from the market

Senate Passes 21st Century ROAD To Housing Act In 85-5 Vote

Sweeping housing package heads back to House after Senate clears final version with broad bipartisan support