Compliance Q&A: Branch Sale and HMDA Reporting Requirements


We are selling one of our branches next month. The branch only has one HMDA loan to date. Do we need to report that loan on the HMDA LAR? The bank that is purchasing the branch is not a HMDA-reporting bank.


Assuming that purchasing this branch will not cause the acquiring bank to become a HMDA-reporting bank, then yes, in this instance you’d report any HMDA reportable loans that originated prior to the sale in April.  Any reporting after the sale by the acquiring bank is optional for the remainder of the year.

CFPB HMDA Guide, p. 121

When an institution that is not subject to Regulation C acquires a Branch Office of an institution that is subject to Regulation C but that acquisition does not result in the acquiring institution becoming subject to Regulation C, data collection is required for transactions of the acquired Branch Office that take place prior to the acquisition. Data collection by the acquired Branch Office is optional for transactions taking place in the remainder of the calendar year of the acquisition.

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