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 Effective October 1, 2009, the Federal Reserve Board is making the Home Mortgage Disclosure Act Loan Application Register (HMDA LAR) reporting conform to the new Regulation Z definition of "higher-priced mortgage loans." With this change, first-lien loans with rate spreads of 1.5 percentage points and subordinate lien loans with spreads of 3.5 percentage points will be reportable. Those rate spreads will be based on Freddie Mac's Primary Mortgage Market Survey.
QuestSoft has updated HMDA RELIEF to prepare for and handle these changes. All of the new calculations are already programmed in our current software. We have identified 4 new fields that will be used to conform to the new HMDA changes and have shared them with our integration partners. In addition to these new fields, we have strongly recommended that all Fair Lending fields, as shown in our new interface specifications, be included in all loan origination system exports. We encourage our customers to contact their Loan Origination System(s) to encourage them to map their exports to these new specifications. This will allow you to harness the full power of HMDA RELIEF and utilize Fair Lending reporting capabilities while ensuring compliance with new higher priced mortgage loan regulations.
QuestSoft has also updated Compliance EAGLE, our automated compliance solution, to handle these changes. All of the new calculations have been programmed in Compliance EAGLE without any changes to your LOS as long as the LOS is sending us the four fields identified above. This allows you to harness the full power of Compliance EAGLE’s reporting capabilities while ensuring automated compliance with the new higher priced mortgage loan regulations.
QuestSoft is committed to easing your burden of complying with the new Regulation. Rate spreads will be calculated in HMDA RELIEF and all rate tables will be maintained independently by QuestSoft. HMDA RELIEF is ready to accommodate the new rules well in advance of the October 1st effective date. Please review the new specifications by clicking here, and email support@questsoft.com should you have any questions. This is the first major change to HMDA in many years, and we’re here to help you make sure it goes smoothly.
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