QUESTION
We are a for-profit institution and have been reviewing our HMDA
category based on being a “branch office.” For purposes of HMDA, what is a “branch
office"?
ANSWER
Let’s first understand that a “branch office” is defined differently
for depository institutions and non-depository institutions.
A “branch office” of a depository institution is any office of a bank
or savings association that is approved as a branch by a federal or state
supervisory agency. A branch office does not include a free-standing electronic
terminal, such as an automated teller machine, loan production office, an
office of any affiliate, or an office of a third party (such as a loan broker).
[12 CFR § 203.2(c)( 1); 12 CFR Part 203, Supplement I, § 203.2(c)-2]
A “branch office” of a credit union is any office where member accounts
are established or loans are made, whether or not the office has been approved
as a branch by a federal or state agency. [12 CFR § 203.2(c)( 1); 12 CFR Part
203, Supplement I, § 203.2(c)-1]
With respect to a for-profit institution, a “branch office” of such
institution is any office of a for-profit mortgage institution that is not a
bank, savings association or credit union (i.e., a non-depository institution)
that takes applications from the public for home-purchase loans, home-improvement
loans or refinancings. Also, a non-depository institution is deemed to have a
branch office in a metropolitan area if, during the preceding calendar year,
the institution received applications for, originated, or purchased five or
more home-purchase loans, home-improvement loans or refinancings related to
property in the metropolitan area. [12 CFR § 203.2(c)( 2); 12 CFR Part 203,
Supplement I, § 203.2(c)-3]
Jonathan Foxx
President & Manaing Director
Lenders Compliance Group
