What Is a Mortgage Call Report & Who Must File It?
Unpack the Mortgage Call Report: Understand its purpose, who must file, and its critical role in mortgage industry transparency.
The mortgage industry operates under a framework designed to promote stability, ensure fair practices, and to protect consumers. The Mortgage Call Report (MCR) is a fundamental component of this oversight. This standardized report provides regulators with insights into the operations and financial health of mortgage companies. By collecting detailed data, the MCR contributes to a comprehensive view of market trends and helps identify potential risks. It also helps maintain transparency across the mortgage industry.
Defining the Mortgage Call Report
The Mortgage Call Report is a regular financial and operational filing required from certain entities within the mortgage sector. Its primary objective is to provide regulatory bodies with a clear and consistent overview of mortgage market activities and the financial standing of participating companies. The Nationwide Multistate Licensing System & Registry (NMLS) serves as the centralized platform for the collection of this standardized data. Regulators utilize the information from MCRs to monitor overall industry trends, assess the financial stability of reporting companies, and ensure compliance with consumer protection laws.
Entities Required to File
Companies holding a state license or registration through the NMLS are mandated to complete a Mortgage Call Report. This requirement extends to non-depository mortgage lenders, brokers, and servicers. The obligation also applies to companies that employ state-licensed mortgage loan originators, even if they are not directly involved in lending or servicing. Some companies, specifically those approved by Fannie Mae, Freddie Mac, or Ginnie Mae, must submit an Expanded MCR, which includes additional details compared to the Standard MCR required for others.
Information Reported
The Mortgage Call Report is comprised of two primary components: the Residential Mortgage Loan Activity (RMLA) report and the Financial Condition (FC) report. The RMLA component gathers detailed information on mortgage loan applications, closed loans, and activities by individual mortgage loan originators (MLOs) within each licensed state. This includes data on the volume of loan originations, the types of loans originated (such as conventional, FHA, or VA loans), and details concerning lines of credit, servicing portfolios, and loan repurchases. Companies must also report gross revenue derived from mortgage origination operations, reflecting income before any expenses are deducted.
The FC component provides a comprehensive snapshot of the company’s financial health at a nationwide level. This section includes financial data such as assets, liabilities, equity, income, and expenses related to mortgage operations. Additionally, the MCR collects information that allows regulators to monitor fair lending practices, ensuring equitable access to mortgage credit.
Filing Frequency and Submission
The Mortgage Call Report components have distinct filing frequencies and deadlines. The Residential Mortgage Loan Activity (RMLA) report is due quarterly, within 45 days after the end of each calendar quarter. Specific deadlines fall on May 15 for Q1 data, August 14 for Q2, November 14 for Q3, and February 14 for Q4. The Financial Condition (FC) report’s frequency depends on the entity type; mortgage lenders and servicers submit the FC report quarterly, aligning with RMLA deadlines, while mortgage brokers file it annually, within 90 days of their fiscal year end.
Reports are submitted electronically through the NMLS website. Companies log into their NMLS account, navigate to the Call Reports section, and then either manually enter data or upload an XML file containing the required information. After the data is prepared and uploaded, filers must complete a series of completeness checks, attest to the accuracy of the information, and finalize the submission process. Even if a company has no mortgage loan activity during a reporting period, a “No Activity to Report” filing is still required to fulfill the obligation.