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Reverse Mortgage—reporting. Does a lender have to report information on applications and loans involving reverse mortgages?

April 26, 2017applications involving Lender Loans mortgages report reverse reverse mortgage

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Reverse Mortgage—reporting. Does a lender have to report information on applications and loans involving reverse mortgages?

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Reverse mortgages are subject to the general rule that lenders must report applications or loans that meet the definition of a home purchase loan, home improvement loan, or refinancing (see 12 C.F.R. 203.2(g)-(h), (k)). Note, however, that reporting is optional if the reverse mortgage (in addition to qualifying as a home purchase loan, home improvement loan, or refinancing) is also a home equity line of credit (HELOC). See 12 C.F.R. 203.4(c)(3). The official staff commentary to Regulation C states that a lender who opts to report a HELOC should report in the loan amount field only the portion of the line intended for home improvement or home purchase. See comment 4(a)(7)-3.