Cfpb Testing Sample Size Chart

Topics covered include HMDA transaction testing procedures, tolerances, ethnicity or race data errors, prospective changes and HMDA transaction testing sample sizes and thresholds. Examples are also included in the six-page guidelines.

The Federal Financial Institutions Examination Council recently issued FFIEC Home Mortgage Disclosure Act Examiner Transaction Testing Guidelines.

Source CFPB If the HMDA LAR for which the lender is being examined was over 100,000 records all qualifying applications taken in that year, the examiner would select a sample size of 159. If a single data field had over two errors in the initial 61 records, the examiner would test the remaining 98 records.

If the population size is less than the sample size reflected in table 1, examiners should review the entire population or consider using judgmental sampling. Examiners may consult with the Economic and Policy Analysis Division of the OCC's Economics Department to discuss other sampling methodologies.

Areas selected for transaction testing, including estimated sampling sizes and methodology used to select the sample Areas where potential legal violations may exist, including those involving unfair, deceptive, or abusive acts or practices Fair lending compliance, if applicable. Issues arising from complaints and

The size of the Total Sample will depend on the size of the financial institution's HMDA LAR, as shown in Column A of the HMDA Transaction Testing Sample Sizes and Thresholds Table HMDA Table below.

5 HMDA transaction testing can be divided into two stages. Both stages test for errors only in individual data fields that are selected for review as provided above in Paragraph 4. In Stage 1, examiners review only a subset of the sample Initial Sample. The size of the Initial Sample will depend on the size of the financial institution's HMDA LAR, as shown in Column B of the HMDA Table

HMDA Transaction Testing Sample Sizes and Thresholds marks below for institutions with fewer than 30 LAR lines, the full sample size is the institution's total number of LAR lines. The Resubmission Threshold number remains at 3. Accordingly, the Resubmission Threshold percentage will be higher for institutions with fewer than 30 LAR lines.

However, if examiners learn of other indications of risks that favor analyzing a prohibited basis with fewer transactions than the minimum in the sample size tables, they should consult with their supervisory office on possible alternative methods of analysis.

Examiners select a random sample of loansapplications to test using the following HMDA scrub sample size and thresholds as indicated in the Guidelines.