In order to identify specific reasons for mortgage loan denials, one federal regulatory agency will require the banks it supervises to say why they rejected applications on their HMDA LARS forms beginning next year.

The Office of the Comptroller of the Currency, which supervises about 2,000 banks that report HMDA data, said the mandatory inclusion of reasons for denials will help in the analysis of individual bank data. It may give us a road map for conducting individual loan file analysis, said Janis Smith, OCC spokesperson.

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