Case Study: HMDA Sample Scrub

Big Picture

Financial institutions face a continual obligation in ensuring compliance with the Home Mortgage Disclosure Act (HMDA). Federal and state regulators, consumer advocacy groups, and others use publicly available HMDA data to draw preliminary conclusions on a range of significant areas including fair lending performance. Data accuracy is one of the most critical parts of the annual HMDA submission and requires file reviews by multiple people in order to gain reasonable assurance that the HMDA data is accurate.

HMDA Sample Scrub

Client Scenario

Manually reviewing loan application data to identify potential reporting errors and ensure data quality can be a time-consuming and resource-intensive process. This is true for all institutions, and can be even more difficult for small-volume lenders who just meet the HMDA threshold for reporting. Asurity Advisors was engaged by a financial institution to review a random sample of 100 HMDA-reportable loans to help the financial institution ensure that the data for submission was accurate.

Asurity Solutions

Asurity Advisors leveraged their in-depth knowledge of HMDA and RiskExec’s platform to identify any issues with the data. Asurity Advisors then reviewed each file and all of the HMDA-reportable fields that would be included on the Loan Application Register. Based on the review, Asurity Advisors provided the client with a detailed report outlining discrepancies or areas requiring correction with clear instructions for addressing identified issues, ensuring accurate HMDA reporting. Ultimately, Asurity Advisors significantly reduced the time and resources required for HMDA data review for the financial institution, thus providing efficiency and effectiveness surrounding the HMDA submission process.