HMDA: Withdrawn Applications

One of the most difficult data fields when reporting HMDA data is the Action Taken field. While it may seem like this would be pretty straightforward, it is an area that we see a lot of errors. There are eight options for the action taken and these include:

1. Loan originated
2. Application approved but not accepted
3. Application denied
4. Application withdrawn by applicant
5. File closed for incompleteness
6. Purchased loan
7. Preapproval request denied
8. Preapproval request approved but not accepted

These options can’t always be taken at face value and you need to understand the criteria for reporting each one. For instance, HMDA is very specific in that to report an application as withdrawn, it must be expressly withdrawn by the applicant.

David explains more in the video.

Published
2024/06/03