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Federal Reserve Bank of Dallas 2200 N. PEARL ST. DALLAS, TX 75201-2272 December 29, 2004 Notice 04-91 TO: The Chief Executive Officer of each financial institution and others concerned in the Eleventh Federal Reserve District SUBJECT Asset-Size Exemption Threshold Under Regulation C (Home Mortgage Disclosure) DETAILS The Board of Governors of the Federal Reserve System has published its annual notice of the asset-size exemption threshold for depository institutions under Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The asset-size exemption for depository institutions will increase $1 million to a level of $34 million based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the 12-month period ending in November 2004. As a result, depository institutions with assets of $34 million or less as of December 31, 2004, are exempt from data collection in 2005. An institution’s exemption from collecting data in 2005 does not affect its responsibility to report the data it was required to collect in 2004. The adjustment is effective January 1, 2005. ATTACHMENT A copy of the Board’s notice as it appears on pages 77139–40, Vol. 69, No. 247 of the Federal Register dated December 27, 2004, is attached. MORE INFORMATION For more information, please contact Diane van Gelder, (214) 922-6282, in the Banking Supervision Department. Paper copies of this notice or previous Federal Reserve Bank notices can be printed from our web site at www.dallasfed.org/banking/notices/index.html. For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. 77139 Rules and Regulations Federal Register Vol. 69, No. 247 Monday, December 27, 2004 FEDERAL RESERVE SYSTEM 12 CFR Part 203 [Regulation C; Docket No. R–1219] Home Mortgage Disclosure Board of Governors of the Federal Reserve System. ACTION: Final rule; staff commentary. AGENCY: SUMMARY: The Board is publishing a final rule amending the staff commentary that interprets the requirements of Regulation C (Home Mortgage Disclosure). The staff commentary is amended to increase the asset-size exemption threshold for depository institutions based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The adjustment from $33 million to $34 million reflects the increase of that index by 2.45 percent during the twelvemonth period ending in November VerDate jul<14>2003 15:12 Dec 23, 2004 Jkt 205001 2004. Thus, depository institutions with assets of $34 million or less as of December 31, 2004, are exempt from data collection in 2005. DATES: Effective January 1, 2005. This rule applies to all data collection in 2005. FOR FURTHER INFORMATION CONTACT: John C. Wood or Kathleen C. Ryan, Counsels, or Dan S. Sokolov, Senior Attorney, Division of Consumer and Community Affairs, at (202) 452–3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263–4869. SUPPLEMENTARY INFORMATION: The Home Mortgage Disclosure Act (HMDA; 12 U.S.C. 2801 et seq.) requires most mortgage lenders located in metropolitan areas to collect data about their housing-related lending activity. Annually, lenders must report that data to their federal supervisory agencies and make the data available to the public. The Board’s Regulation C (12 CFR part 203) implements HMDA. Provisions of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (codified at 12 U.S.C. 2808(b)) amended HMDA to expand the exemption for small depository institutions. Prior to 1997, HMDA exempted depository institutions with assets totaling $10 million or less, as of the preceding year-end. The statutory amendment increased the asset-size exemption threshold by requiring a onetime adjustment of the $10 million figure based on the percentage by which the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) for 1996 exceeded the CPIW for 1975, and provided for annual adjustments thereafter based on the annual percentage increase in the CPIW. The one-time adjustment increased the exemption threshold to $28 million for 1997 data collection. Section 203.2(e)(1)(i) of Regulation C provides that the Board will adjust the threshold based on the year-to-year change in the average of the CPIW, not seasonally adjusted, for each twelvemonth period ending in November, rounded to the nearest million. Pursuant to this section, the Board raised the threshold to $29 million for 1998 data collection, raised it to $30 million for 1999 data collection, and kept it at that level for data collection in 2000. The Board raised the threshold to $31 million for data collection in 2001, to $32 million for data collection in 2002, PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 kept the threshold at $32 million in 2003, and raised the threshold to $33 million for 2004. During the period ending November 2004, the CPIW increased by 2.45 percent. As a result, the exemption threshold is raised to $34 million. Thus, depository institutions with assets of $34 million or less as of December 31, 2004, are exempt from data collection in 2005. An institution’s exemption from collecting data in 2005 does not affect its responsibility to report the data it was required to collect in 2004. Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Board finds that notice and public comment are unnecessary. 5 U.S.C. 553(b)(3)(B). Comment 2(e)–2 to section 203.2 of the regulation is amended to implement the increase in the exemption threshold. This amendment merely applies the formula established by Regulation C for determining adjustments to the exemption threshold. For these reasons, the Board has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendment is adopted in final form. List of Subjects in 12 CFR Part 203 Banks, Banking, Mortgages, Reporting and recordkeeping requirements. I For the reasons set forth in the preamble, the Board amends 12 CFR part 203 as follows: PART 203—HOME MORTGAGE DISCLOSURE (REGULATION C) 1. The authority citation for part 203 continues to read as follows: I Authority: 12 U.S.C. 2801–2810. 2. In Supplement I to part 203, under section 203.2—Definitions, under 2(e) Financial Institution, paragraph 2. is revised. I SUPPLEMENT I TO PART 203—STAFF COMMENTARY * * * * * Section 203.2—Definitions * * * * * 2(e) Financial Institution * * * * * 2. Adjustment of exemption threshold for depository institutions. For data collection in 2005, the asset-size E:\FR\FM\27DER1.SGM 27DER1 77140 Federal Register / Vol. 69, No. 247 / Monday, December 27, 2004 / Rules and Regulations exemption threshold is $34 million. Depository institutions with assets at or below $34 million are exempt from collecting data for 2005. * * * * * By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division of Consumer and Community Affairs under delegated authority, December 21, 2004. Jennifer J. Johnson, Secretary of the Board. [FR Doc. 04–28215 Filed 12–23–04; 8:45 am] BILLING CODE 6210–01–P
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