With the March 1 HMDA deadline quickly approaching, many credit unions are preparing their HMDA data submission. Here at NAFCU, we've received a few questions about the difference between a prequalification and a preapproval. What's the big deal? Preapprovals must be reported under HMDA, while prequalifications do not.
Regulation C is not especially clear on the subject. But do not fret, compliance friends. The Saint Louis Fed prepared this web page, which does a top-notch job of describing the differences between prequalifications and preapprovals. It does into greater detail than does Regulation C, and it provides examples.
Good stuff, people. Good stuff. (I tend to say that too often.)
Sign up for a free NCUA webinar here. The subject will be "Key Examination Issues for 2008: Evaluation of 3rd Party Relationships and Strategic Planning." It will take place on January 29, from 1 to 2:30 p.m.