10.1 HMDA Institutional and Loan Coverage

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1. Institutional Coverage Criteria (12 CFR §1003.2(g))

An institution must determine its HMDA coverage status annually on January 1 by evaluating its operations, asset size, office locations, and loan origination volume during the preceding two calendar years.

A. Depository Institutions (§1003.2(g)(1))

A bank, savings association, or credit union is a covered depository financial institution if it satisfies all four of the following criteria:

1. Asset Size Threshold: On December 31 of the preceding calendar year, the institution had assets exceeding the annual statutory asset threshold established by the CFPB (indexed annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers; $59 million for 2026 data collection, tested against December 31, 2025 assets).
2. Location Test: On December 31 of the preceding calendar year, the institution had a home office or branch office located in a Metropolitan Statistical Area (MSA).
3. Federal Insurance or Regulatory Test: On December 31 of the preceding calendar year, the institution was federally insured (FDIC or NCUA) or federally regulated.
4. Loan-Activity Volume Threshold: The institution meets either the closed-end mortgage loan threshold or the open-end line of credit threshold:
   • Closed-End Mortgage Loans: Originated at least 25 closed-end mortgage loans in each of the two preceding calendar years.
   • Open-End Lines of Credit: Originated at least 200 open-end lines of credit in each of the two preceding calendar years.

Judicial History Note on the Closed-End Threshold: In 2020, the CFPB issued a final rule raising the closed-end threshold from 25 to 100 loans. However, in September 2022, the U.S. District Court for the District of Columbia in National Community Reinvestment Coalition (NCRC) v. CFPB vacated the 100-loan threshold, reinstating the statutory 25 closed-end loan threshold retroactively. Compliance programs must track the 25-loan threshold for closed-end origination volume.

B. Nondepository Institutions (§1003.2(g)(2))

A for-profit mortgage company or nondepository lender is a covered financial institution if it meets two criteria:

1. Location Test: On December 31 of the preceding calendar year, the institution had a home or branch office in an MSA, OR received applications for, originated, or purchased five or more covered loans secured by dwellings located in an MSA.
2. Loan-Activity Volume Threshold: Originated at least 25 closed-end mortgage loans in each of the two preceding calendar years, OR originated at least 200 open-end lines of credit in each of the two preceding calendar years.

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2. EGRRCPA Partial Exemptions (§1003.3(d))

Section 104 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA) created relief for community banks and smaller lenders by providing a partial exemption from reporting 26 expanded Dodd-Frank data fields.

A. Origination Thresholds for Partial Exemption

• Closed-End Mortgage Relief: An insured depository institution or insured credit union is exempt from reporting the 26 expanded fields for closed-end loans if it originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years.
• Open-End Line of Credit Relief: An institution is exempt from reporting the expanded fields for open-end lines if it originated fewer than 500 open-end lines of credit in each of the two preceding calendar years.

B. The Community Reinvestment Act (CRA) Rating Prerequisite

The partial exemption is strictly conditioned on the institution's fair lending and community reinvestment track record. An insured depository institution is disqualified from the partial exemption if:

• It received a CRA rating of "Needs to Improve" on each of its two most recent CRA examinations; or
• It received a CRA rating of "Substantial Noncompliance" on its most recent CRA examination.

Compliance Rule: If disqualified due to poor CRA ratings, the institution must collect and report the applicable expanded HMDA data points without that partial exemption even if it originates fewer than 500 loans.

C. Scope of the Partial Exemption

Qualifying institutions under the partial exemption are relieved from reporting 26 complex data fields (including property value, credit score, DTI, CLTV, total loan costs, rate spread, and AUS results). However, they must continue to collect and report 22 core HMDA data fields, including:

• Legal Entity Identifier (LEI) / Non-Universal Loan Identifier (NULI);
• Application date, action taken, and action taken date;
• Loan type, loan purpose, and loan amount;
• Preapproval request indicator;
• Construction method and occupancy type;
• Property location (state, county, census tract);
• Lien status;
• Applicant demographic information (ethnicity, race, and sex).

Institutions may voluntarily choose to report any or all exempt data points, but if they voluntarily report an exempt field, they must report all associated sub-elements accurately.

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3. Transactional Coverage (12 CFR §1003.2(e), §1003.3)

HMDA transactional coverage is evaluated at the application level. A transaction is covered if it involves a covered loan secured by a dwelling.

A. Covered Loans (§1003.2(e))

A covered loan is any closed-end mortgage loan or open-end line of credit secured by a dwelling, divided into consumer-purpose and commercial-purpose credit:

B. The Regulatory Definition of "Dwelling" (§1003.2(f))

Under Regulation C, a dwelling is defined as a residential structure, whether or not attached to real property. The definition includes:

• 1-to-4 family residential properties (single-family detached, duplexes, triplexes, fourplexes);
• Individual condominium units and cooperative units;
• Manufactured homes and mobile homes (regardless of whether titled as real property or personal property);
• Multifamily residential structures (apartment buildings with 5 or more units).