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Federal R eserve Bank
OF DALLAS
W ILLIA M

H. WALLACE

FIRST V IC E PR ES ID ENT

DALLAS, TEXAS 75222

AN D C H IE F O PER ATING O FFICER

June 23, 1989
Circular 89-39
TO:

The Chief Executive Officer of
all financial institutions in the
Eleventh Federal Reserve District
SUBJECT
Home Mortgage Disclosure Act
DETAILS

The Federal Financial Institutions Examination Council has announced
its approval of a statement on the Home Mortgage Disclosure Act (HMDA). The
purpose of the statement is to encourage financial institutions covered by the
HMDA to file timely and accurate HMDA reports.
Under the HMDA, the Council is required to make aggregate data on
home mortgage lending for a particular year available to the public by
December 31 of the following year. Such reports are used by individuals,
community organizations and government agencies to evaluate the performance of
financial institutions in making mortgage credit available in the communities
in which they have offices. The reports, for example, can be used to compare
lending among different neighborhoods within a particular metropolitan area
and to compare the lending patterns of individual financial institutions with
the total for all institutions. The data in the reports also show aggregate
lending patterns for various categories, racial characteristics, geographic
location, and age of housing stock.
Reports of their mortgage lending by individual financial
institutions -- commercial bank, savings institutions, credit unions, and
certain mortgage banking companies -- provide the raw data that are used by
the council to produce the HMDA aggregation reports. Consequently, the
timeliness and accuracy of the reports produced by the Council depend greatly
on the timeliness and quality of the individual HMDA reports submitted by the
financial institutions.
ENCLOSURES
A copy of the Council's statement is enclosed.
Sincerely yours,

For a dditional copies of any circular please c o n ta c t the Public A ffairs D ep artm en t at (214) 6 51 -6 2 8 9 . Banks and others are
encouraged to use the follow ing incom ing W A TS numbers in contacting this Bank (800) 4 4 2 -7 1 4 0 (intrastate) and (800)
5 2 7 -9 2 0 0 (interstate).

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

Federal Financial Institutions Examination Council

1776 G Street, NW, Suite 701 • Washington, DC 20006

Federal Financial Institutions
Examination Council Statement on the
Home Mortgage Disclosure Act

The Federal Financial Institutions Examination Council's
(FFIEC) member agencies are the Board of Governors of the
Federal
Reserve
System,
the
Federal
Deposit
Insurance
Corporation, the Federal Home Loan Bank Board, the National
Credit Union Administration, and the Office of the Comptroller
of the Currency.
The FFIEC is issuing this statement to
encourage institutions covered by the Home Mortgage Disclosure
Act (HMDA or the Act) to adhere to the specific requirements of
the Act and Regulation C (12 CFR 203).
The agencies are
concerned about the number of repotting errors in the HMDA
report and the large number of reports received from financial
institutions after the March 31 due date.
The FFIEC is required by the Act to make HMDA aggregation
tables for the previous year available to the public no later
than December 31 of each year.
Although the FFIEC has met this
goal, there is strong Congressional and public interest in
making the aggregation tables available earlier in the year.
In
the conference
report
that
accompanies
the
February
1988
amendments to HMDA, the Congress called upon the FFIEC and the
agencies to take measures to expedite the availability of the
HMDA data.
Issuance of this Statement is one of those measures.
Covered institutions are encouraged to develop policies and
procedures that will ensure full compliance with the HMDA and
Regulation
C.
It
is
the
agencies'
policy
to
provide
institutions with guidance to assist them in providing timely
and accurate reports.
HMDA compliance will be emphasized in
examinations.
The agencies will also consider what supervisory
and enforcement actions may be appropriate to ensure compliance.
The FFIEC and the agencies have already taken steps
assist covered institutions in improving their performance:
•

to

The FFIEC has issued a manual, entitled A Guide to
HMDA Reportinq--Getting it Right!, which provides an
executive overview for management and an instructional
section for persons preparing the HMDA report forms.
The guide is being made available by the agencies.

Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Federal Home Loan Bank Board,
N ational Credit Union Administration, Office of the Comptroller of the Currency

-

2 -

•

The FFIEC has developed a reformatted census tract
list that identifies the specific census tract numbers
for each metropolitan statistical area with codes to
indicate small and untracted counties that must be
reported by county name.
In addition,
the list
identifies counties with dual census tracts that must
be reported by both county name and census tract
number.
These
lists will help prevent reporting
errors and are available upon request from each
agency.

•

A videotape entitled "How to Prepare a HMDA Statement"
is
being
prepared
to
assist
in
familiarizing
compliance personnel with the requirements of HMDA and
Regulation C.
This instructive video will be made
available upon request from the agencies at a nominal
cost.
It will
assist
institutions
in preparing
calendar year 1989 statements that are due March 31,
1990.

i

Timely and accurate HMDA reporting is not only required by
law, it is essential if the aggregate HMDA data is to be made
available to the public at the earliest possible date.
A
cooperative
effort
among
the
agencies
and the
covered
institutions is imperative.
Suggestions on how to help ensure accurate and timely
submission
of
the
HMDA
disclosure
form are invited
and
encouraged.
Suggestions or comments should be forwarded to:

Robert J. Lawrence
Executive Secretary
Federal Financial Institutions Examination Council
1776 G Street, NW / Suite 701
Washington, DC
20006

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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102