Mortgage Application Ethnicity HMDA Laws

The Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) prohibit a lender from discriminating against an applicant on the basis of national origin, race, color, sex and other prohibited bases. The Home Mortgage Disclosure Act (HMDA) requires a lender to publicly disclose data on mortgage loans.

These non-discrimination laws require a lender to collect and report a variety of data related to the applicant and the property to be secured.

Key Point
In particular, a lender is required to collect and report information on an applicant’s ethnicity, race and sex. This is known as the “Government Monitoring Information”. 
A lender must collect and report on an applicant’s:
Ethnicity as either:
  • Hispanic or Latino
  • Not Hispanic or Latino
Race as:
  • American Indian or Alaska Native
  • Asian
  • Black or African American
  • Native Hawaiian or Other Pacific Islander
  • White

  • Key points to remember about the requirements:
    • “Hispanic” is not a category under Race. It is considered under Ethnicity as “Hispanic or Latino”
    • “Other is not an option under the Race category
    • More than one category under Race may be selected
    A lender must collect and report each applicant’s Sex as either:
    • Female
    • Male
    • Thus, on any application taken for a purchase-money, refinancing or home-improvement loan secured by a dwelling a lender must collect and report the Government Monitoring Information.
      The Government Monitoring Information must be collected separately in a form, or as part of a Loan Application form (such as Freddie Mac Form 65 or Fannie Mae Form 1003).
    • With regard to Government Monitoring Information requirements, which of the following are true? Please check all that apply, answers are highlighted in green

      Information on an applicant’s “Ethnicity” is a requirement
      “Hispanic” is a category under Race
      You are able to note applicant’s “Race” under more than one designation
      Noting applicant’s “Sex” is optional
      A lender must collect and report the Government Monitoring Information on any credit card application
      “Other” is not a designation under the “Race” category

      How the application was taken (i.e. face-to-face, telephone, etc.) must be noted

      On mail or Internet applications, a lender must provide the new Government Monitoring Information form or a similar form and attempt to collect the information from the applicant. If the applicant chooses not to provide information on ethnicity, race and sex:

      1. The applicant must check the box:
        "I do not wish to furnish this information"
      2. The lender has no further responsibility to collect the information and need not complete the information on the applicant’s ethnicity, race and sex
        With regard to Government Monitoring Information requirements, which of the following are true? Please check all that apply, answers in green
        On all applications, the lender is responsible for completing the information based on visual observation or surname
        On a telephone application, the lender must orally provide a disclosure and request information on ethnicity, race and sex
        On a telephone application if the applicant chooses not to provide the information, the lender must complete it based on surname
        On mail or Internet applications, the lender need not request the information
        On a face-to-face application, if the applicant chooses not to provide the information, the lender must complete it based on visual observation or surname
        On all applications, requesting and collecting information on “Ethnicity” is optional
        On all applications, the lender must request and attempt to collect information on both “Ethnicity” and “Race” 


TRID Tolerance Rules Test and Answers

What fees can change 
What constitutes a loan application?
  • Name
  • Income
  • Social Security Number
  • Property Address
  • Estimated Value of Property
  • Mortgage Loan Amount sought
Any amount in the charges that cannot change (zero variation) charged beyond the amount disclosed on the LE will be charged to the consumer.
Select one:

The appraisal fee is what percent tolerance item?
Select one:
What date does TRID become effective for applications?
Select one:

What does the Loan Estimate (LE) replace? (select all that apply):
Select one or more:

The consumer must receive the Closing Disclosure (CD) no later than 3 business days before consummation of the loan.
Select one:

Which of the following charges can change without any tolerance limit (select all that apply)?
Select one or more:
Applications taken prior to October 3, 2015 must continue to use TIL
Disclosure, GFE and HUD-1 settlement statement.
Select one:

The consumer has the right to request a revised Closing Disclosure (CD) one business day before consummation.
Select one:
Select the correct meaning for the acronym TRID.
Select one:
What is the consummation date?
Select one:
The Loan Estimate (LE) and the Closing Disclosure can be issued on the same day.
Select one:

•RED is Zero tolerance
Application Fee
Appraisal Waiver fee
Assumption Fee
Broker compensation
Commitment Fee
Doc Prep fee - for lender (note, mortgage)
Du Underwriting Fee
Escrow waiver fee
Lenders inspection Fee
Loan handling fee
Loan level price adjustments
Mortgage Broker Fee
Origination fee
Overnight, wire, courier
Paid by borrower
Processing fee
Rate Lock Extension
Rate Lock Fee
Tax Transcript fee (4506T fee)
Underwriting Fee
Verification of Employment Fee
Warehouse Fee
Blue no tolerance fee
All other escrow deposits
Escrow deposit – homeowners ins
Escrow deposit – flood insurance
Escrow deposit – MIP/PMI
Escrow deposit – taxes

Blue no tolerance limit
Commission - Real Estate
Credit Life & Disability Insurance
Debt cancellation coverage
Debt suspension coverage
Homeowners Association and Condominium fees associated with transfer of ownership (optional)
Inspection fees not required by lender but paid for by borrower under real estate contract
Payments to Seller for purchasing personal property under RE sales contract
Title Insurance - Owner (optional)
Warranties for home appliances and systems (optional)
Appraisal Fee
Appraisal Management Company Fee
Attorney Fees –lender
Credit Report Fee
Flood Determination
Flood Monitoring Fee
Homeowners Association Certification fee
MERS Registration fee
Notary fees
RD guaranty fee
Subordination fee
Survey (required and selected by Lender)
Tax Monitoring Fee
Tax Status Research Fee
Termite inspection (lender selects)
Title - closing protection letter fee Upfront FHA MIP
Title Review fee
Transaction fee
USDA guarantee fee
VA Funding Fee
GREEN 10% Tolerance
Inspection Fee
Settlement or Closing Fee
Survey (Required by lender, borrower selects)
Termite inspection fee (borrower shops)
Title - underwriter portion of fee
Title Agents Portion of Title Insurance
Title Insurance – Lender
Title Search
Title services & Lenders title policy
Assignment Recording Fee
County deed stamps
Other recording fees
Revenue Stamps paid by Seller
Subordination Recording Fee
Earthquake Insurance (if required)
Earthquake Insurance (optional)
Flood Insurance
Homeowners Insurance
Interest – prepaid
LPMI (Lender Paid Mortgage Insurance)
Mortgage Insurance Premium (Paid at closing)
Real Estate Taxes

Tax Transfer Fee

One final type of fee subject to zero tolerance is transfer taxes. In general, transfer taxes are State and local government fees on mortgages that are based on the loan amount or sales price. Note that the name used under State or local law to refer to these amounts is not indicative of whether they are disclosed as transfer taxes or as recording fees and other taxes. With respect to transfer taxes, the Consumer Financial Protection Bureau has commented that those schedules are readily accessible and amounts don’t often fluctuate. Therefore, it is believed that creditors should be able to disclose transfer taxes accurately and not need any tolerance cushion.


Organic Rose Demonstration This Weekend Family Fun

Saturday and Sunday October 1st and 2nd 2016
Orange County Fairgrounds
 88 Fair Dr, Costa Mesa, CA 92626
Orange County California Family FUN

10:00 - 7:00 PM

I am doing demonstrations of organic rose growing
Saturday at 2:00 and Sunday at 3:00

HOW TO Clone or propagate roses organically
Additional tips and tricks on growing roses without chemicals.

Live demonstration 
Children can participate if they can use sharp cutters.
Go home with your own tiny green house cutting