If you're responsible for HMDA LAR submission, you know how stressful and challenging it can be. If you're researching your options for HMDA submission software, here are four of the top choices.
One of the most important compliance deadlines just passed on March 1: the HMDA LAR submission deadline. As we wrote about earlier this month, the HMDA submission deadline is an important and stressful time for compliance pros.
While it’s still fresh in your mind, it’s a wise idea to evaluate your HMDA software suite and ensure that you’re set up for success in 2020. Remember, you need to consider how to collect, manage, analyze, and submit your HMDA data. There are software solutions for each of these stages of the lending process.
Here are four of the best HMDA submission softwares on the market for you to consider as you prepare for compliance success in 2020.
Each of these HMDA submission softwares, sometimes called HMDA transmittal software, has the following essential features:
Edit Checks/Data Clean-up: While HMDA has seen lots of changes over the past few years, others have stayed the same. One thing has remained constant: the data you submit to the CFPB and other agencies needs to be clean and free of errors. (Not all edit checks are created equal, as you’ll see below.)
Accurate Submission: This is the most important feature of any HMDA submission tool, its whole raison d’etre.
Beyond that, each tool has its own pros and cons. We created this list based on what we read and heard from compliance professionals who have used the softwares, as well as the information that is available online. Some integrate with the core or have powerful geocoding functionality, or are really affordable. Here are the top 4 HMDA submission softwares on the market today:
1. CFPB's HMDA Platform
All institutions that submit HMDA data will inevitably have to use the CFPB’s HMDA transmittal tool, because it is the only way to actually share your data with the government. This solution is called the HMDA Platform by the CFPB.
While some institutions are using the CFPB’s tool as their complete HMDA transmittal solution, others are opting to use a third-party to help prepare and check the HMDA data before submitting through the CFPB’s tool. Either approach can work, though larger institutions with larger loan volumes do tend to prefer to have some help in this area.
The fact that the CFPB’s HMDA Platform is free goes a long way toward recommending it, particularly for smaller institutions. Those institutions will typically run their HMDA scrub within their LOS, and then export the file for import into the HMDA Platform.
In addition, the HMDA Platform does include edit check functionality, and is straightforward. It includes two different edit checks:
Syntactical and validity edit review
Quality and macro edit review
Remember, all HMDA LARs have to pass the HMDA Platform’s edit checks, or you won’t be able to submit it.
In addition, the CFPB has also published a LAR Formatting Tool and a File Format Verification Tool to make the submission process easier.
2. TRUPOINT's HMDA Submission Software
The newest solution on the market, TRUPOINT’s HMDA Submission Software is a supremely easy-to-use tool.
As a customer, you get unlimited support and a dedicated Customer Success Manager to help you through the process.
Any transmittal software should do all the appropriate edit checks, have an audit trail, and get your submission ready to file, but not all software gives you individualized support and guidance on improving the HMDA submission process.
Over the years, our focus has been on making compliance data analysis and monitoring simpler and more insightful. We are now bringing that commitment to clarity to HMDA transmittal. I’m proud to be able to share the results of those efforts with you. It features:
More than 40 unique edit checks
Geocoding functionality with drag-and-drop address adjustments
Audit trail, which can be exported
Error report, which can also be exported
Final LAR report
For the 500+ institutions that trust us for the compliance data analysis and monitoring, the HMDA Submission tool is a perfect add-on. For others who may not have worked with TRUPOINT before, the HMDA Submission software is a strong (and affordable) stand-alone tool.
Our customers who used TRUPOINT’s HMDA submission tool for 2018 were very pleased! If you’re interested in learning more or talking to a current customer, please let us know and we’ll be happy to connect you.
Please note that we also have a CRA LAR submission software, so we can help with both.
3. Questsoft’s HMDA RELIEF
Another popular HMDA submission solution is Questsoft’s HMDA Relief. This is a in-depth software solution, with lots of functionality.
For example, HMDA Relief lets you select which fields you want to report. This is super helpful for managing the HMDA Partial Exemption. It also lets you turn on and off the exemption and options by reporting year.
We can’t share many specifics on this software, as it is a competitor’s product and we haven’t actually seen it. More practically, we don’t want to say anything inaccurate. To learn more, you can simply search “Questsoft HMDA Relief” in your search engine of choice .
4. Wolters Kluwer’s HMDA Wiz
HMDA Wiz is another software that can help with HMDA submission. HMDA Wiz does integrate with your LOS, so it does allow for real-time analysis and edit checks. For larger institutions, this may be a necessary feature.
As they are also a competitor, we aren’t able to go into great detail about their product features and functionality. To learn more, a quick search in your favorite search engine is your best bet.
TRUPOINT Viewpoint: With the recent HMDA submission deadline, now is the perfect time to consider your HMDA compliance software suite. If your experience with HMDA LAR submission this year was less-than-pleasant, we hope you’ll consider TRUPOINT’s HMDA submission software for 2020.