Does a lending institution that submits inaccurate HMDA data violate lending discrimination laws?
An inaccurate HMDA data submission constitutes a violation of the HMDA, the Federal Reserve Board’s Regulation C, and other applicable laws, and may subject the lending institution to an enforcement action, which could include civil money penalties, and, if the lender is a HUD-approved mortgagee, the sanctions of the HUD Mortgagee Review Board. An inaccurate HMDA data submission, however, is not in itself a violation of the ECOA or the FH Act. However, a person who intentionally submits incorrect or incomplete HMDA data in order to cover up a violation of the FH Act may be subject under the FH Act and federal criminal statutes, to a fine or prison term or both. In addition, a failure to ensure accurate HMDA data may be considered as a relevant fact during a FH Act investigation or an examination of the institution’s lending activities. Q3: Does a second review program only for loan applicants who are members of a protected class violate laws prohibiting discrimination in lending? A: Su
Related Questions
- My institution will soon qualify to report HMDA data. What software and documents are available to assist me in getting started and how can I access them?
- If an institution submits a file with an invalid data structure, even one record, what is the outcome?
- Does a lending institution that submits inaccurate HMDA data violate lending discrimination laws?
