For most financial institutions, the reporting deadline for 2019 HMDA data is March 1, 2020. With the deadline less than two weeks away, here are 5 steps you need to take, if you haven't already, to make the submission process smoother.
1. Perform edit checks.
Performing edit checks can protect your financial institution from risks, delays, and penalties. Failing to submit accurate data, or failing to submit it correctly, can lead to your institution having to resubmit. Edit checks reduce mistakes, potentially saving your institution time down the road.
2. Clean up your data.
When examiners review your HMDA data, you want them to see accurate numbers. One way to look for inaccuracies in your data is by comparing three areas of your current data to prior years:
- Rate of "Data Not Provided"
- Withdrawal Rate
- Denial Rate
If these rates look different than they have in the past, it may be worth taking a closer look at your data
3. Create an audit trail.
An audit trail ensures your data has been validated and is accurate. It also allows you to provide documentation and records should an examiner want to dig deeper during an exam.
4. Create error report.
As you perform edit checks and scrub your data, any errors you find should be logged and saved. This can help you pinpoint trouble spots in your data or reporting practices, especially if patterns arise year after year.
5. Keep track of what goes well and what does not in your submission process.
Any insights into this year's submission process can help your institution come this time next year. Did any specific part of the process cause you or your team stress? Did anything in particular make the preparation or submission process easier or more difficult than in prior years? Use this time to better the entire submission process for you and your institution
Ncontracts' HMDA submission software allows you to check for errors, clean up your data, easily export audit trails and error reports, and most importantly, submit your data with confidence. Click here for more information, or to request pricing or a consultation.
Related: What Is A Compliance Management System And Why Your FI Needs One
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