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federal reserve Bank DALLAS, TEXA S of Dallas 75222 Circular No. 83-144 N o vember 30, 1983 REGULATION C HOME M ORTGAGE DISCLOSURE (Revised Pamphlet) TO ALL MEMBER BANKS AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: The Board of Governors of the Federal Reserve System has issued a revised pamphlet incorporating all amendments to its Regulation C as of December 30, 1981. Please insert the enclosed Regulation C pamphlet in Volume 2 of y o u r Regulations Binder and destroy the pamphlet dated August 4, 1981. Questions regarding directed to Dean A. Pankonien Department, Extension 6228. Regulation C may be of this Bank's Legal Additional copies of this circular will be furnished upon request to the Public Affairs Department, Extension 6289. Sincerely yours, H. Wallace First Vice President Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Banks and others are encouraged to use the following incoming W A TS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. For Telex calls, please use 79-1688. Board of Governors of the Federal Reserve System Regulation C Home Mortgage Disclosure 12 CFR 203; effective June 28, 1976; as amended effective December 30, 1981 Any inquiry relating to this regulation should be addressed to the Federal Reserve Bank of the Federal Reserve District in which the inquiry arises. August 1982 Contents Page Page Section 203.1—Authority, purpose, and scope...................................................... (a) A uthority...................................... (b) P u rp o se........................................ (c) Scope ............................................ (d) Central data repositories.............. Section 203.2—Definitions...................... (a) A c t ................................................ (b) Branch office . .............................. (c) Depository institution.................. (d) FHA, FmHA, or VA lo a n s ........ (e) Home improvement...................... (f) Home purchase l o a n .................... (g) State .............................................. Section 203.3—Exem ptions.................... (a) Asset size and lo catio n................ (b) State law........................................ (c) Change of status .......................... Section 203.4— Compilation of loan data (a) Data to be included...................... (b) F o rm at.......................................... (c) Excluded d a t a .............................. (d) SMSAs and census tra c ts ............ Section 203.5—Disclosure and reporting requirem ents........................................ 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3 3 4 (a) Time requirements for disclosure statements .............. (b) Offices at which disclosure statements are to be made available.................................... (c) Manner of making dislosure statements available ................ (d) Notice of availability............... (e) Reporting requirem ents......... 4 4 4 Section 203.6—Administrative enforcement and sanctions for violations.............................................. (a) Administrative enforcement....... (b) Sanctions for violations............... 4 4 4 Appendix A—Federal enforcement agencies................................................ 4 Appendix B—State exemptions.............. 5 Appendix C—Mortgage loan disclosure statem ent.............................................. 6 HOME MORTGAGE DISCLOSURE A C T ...................................................... 11 4 4 Regulation C Home Mortgage Disclosure 12 C FR 203*; effective June 28, 1976; as amended effective December 30, 1981 Section 203.1 Authority, purpose, and scope 203.2 Definitions 203.3 Exemptions 203.4 Compilation of loan data 203.5 Disclosure and reporting requirements 203.6 Administrative enforcement and sanc tions for violations Appendix A—Federal enforcement agencies Appendix B—State exemptions Appendix C—Mortgage loan disclosure statement metropolitan statistical area. It also requires the Federal Financial Institutions Examina tion Council to aggregate mortgage loan data for all institutions in each standard metropoli tan statistical area, showing lending patterns by location, age of housing stock, income lev el, and racial characteristics. A listing of cen tral data repositories can be obtained from the Department of Housing and Urban Develop ment, Washington, D.C. 20410, or from any of the agencies listed in appendix A. SECTION 203.2— Definitions SECTION 203.1— Authority, Purpose, and Scope (a) Authority.This regulation is issued by the Board of Governors of the Federal Reserve System pursuant to the Home Mortgage Dis closure Act of 1975, as amended (title 12, sec tions 2801 through 2811 of the United States Code). (b) Purpose. The purpose of this regulation is to provide the public with loan data to deter mine whether depository institutions are serv ing the housing needs of the communities and neighborhoods in which they are located. The purpose is also to assist public officials in dis tributing public-sector investments so as to at tract private investment to neighborhoods where it is needed. This regulation is not in tended to encourage unsound lending prac tices or the allocation of credit. (c) Scope. This regulation applies to deposi tory institutions that make federally related mortgage loans. It requires a covered deposi tory institution to disclose loan data at certain of its offices and to report the data to its su pervisory agency. (d) Central data repositories. The act requires that the loan data be made available at central data repositories located within each standard * Code o f Federal Regulations, title 12, chapter II, part 203. For the purposes of this regulation, the fol lowing definitions apply: (a) Act means the Home Mortgage Disclo sure Act of 1975 (title III of Public Law 94 200), as amended in 1980 (title III of Public Law 96-399), codified in title 12, sections 2801 through 2811 of the United States Code. (b) Branch office means an office approved as a branch of the depository institution by its federal or state supervisory agency, but ex cludes free-standing automated teller ma chines and other electronic terminals. (c) Depository institution means a commer cial bank, savings bank, savings and loan asso ciation, building and loan association, home stead association (including a cooperative bank), or credit union, that makes federally related mortgage loans.1 A majority-owned nondepository subsidiary is deemed to be part of its parent depository institution for the pur poses of this regulation. A majority-owned de pository subsidiary may, at the parent deposi tory institution’s option, be treated as part of its parent or as a distinct entity. (d) Federal Housing Authority (FHA), Farm ers Home Administration (FmHA), or Veter ans Administration (VA) loans means mort1 “ Federally related mortgage loan” means any loan (o th er than tem porary financing such as a construction loan) that Continued 1 § 203.2 gage loans insured under title II of the Na tional Housing Act or under title V of the Housing Act of 1949 or guaranteed under chapter 37 of title 38 of the United States Code. (e) Home improvement loan means any loan, including a refinancing, (i) whose proceeds, as stated by the borrower to the lender at the time of the loan application, are to be used for repairing, rehabilitating, or remodeling a resi dential dwelling located in a state; and (ii) that is recorded on the depository institution’s books as a home improvement loan.2 (f) Home purchase loan means any loan, in cluding a refinancing, secured by and made for the purpose of purchasing residential real property located in a state (including single family homes, dwellings for from two to four families, other multifamily dwellings, and individual units of condominiums or cooperatives).3 The term does not include temporary financing (such as a bridge loan or a construction loan) or the purchase of an in terest in a pool of mortgage loans (such as mortgage participation certificates issued or guaranteed by the Federal Home Loan Mort gage Corporation, the Government National Continued (i) Is secured by a first lien on residential real property (including individual units o f condominiums and coop eratives) that is designed principally for the occupancy of from one to four families and is located in a state; and (ii)(A ) Is made in whole o r in part by a depository institution the deposits o r accounts o f which are in sured by an agency o f the federal government, o r by a depository institution that is regulated by an agency of the federal government; or (B ) Is made in whole o r in part, or is insured, guaran teed, supplemented, o r assisted in any way, by the secretary o f Housing and U rban Development or any other officer o r agency o f the federal government or under or in connection with a housing or urban devel opment program administered by any such officer or agency; or (C ) Is intended to be sold by the depository institu tion that originates the loan to the Federal National M ortgage Association, the Government National M ortgage Association, o r the Federal Home Loan M ortgage Corporation, o r to a financial institution from which it is to be purchased by the Federal Home Loan M ortgage Corporation. 2 See footnote 3. 3 A n institution may categorize a first-lien loan made for home improvement purposes as a home purchase loan if that is the m anner in which it normally records first-lien loans. 2 Regulation C Mortgage Association, or the Farmers Home Administration). (g) State means any state of the United States of America, the District of Columbia, and the Commonwealth of Puerto Rico. SECTION 203.3— Exemptions (a) Asset size and location. A depository in stitution is exempt from all requirements of this regulation— (1) If its total assets on December 31 are $10,000,000 or less; or (2) If it has neither a home office nor a branch office in a standard metropolitan statistical area (SMSA) as defined by the U.S. Department of Commerce. (b) State law. A state-chartered depository institution is exempt from the requirements of this regulation if it is subject to state laws that contain, as determined by the Board in ac cordance with appendix B, (1) requirements substantially similar to those imposed by this regulation, and (2) adequate provisions for enforcement. For purposes of data aggrega tion, however, an institution exempted under this paragraph shall submit the data required by the disclosure laws of its state to its state supervisory agency. (c) Change o f status. (1) An institution that becomes subject to the requirements of this regulation shall compile loan data begin ning with the calendar year following the year in which it becomes subject, except that— (2) An institution that is exempt under section 203.3(b) and that subsequently los es its exemption shall compile loan data in compliance with this regulation beginning with the calendar year following the year for which it last reported loan data under the state disclosure law. SECTION 203.4— Compilation of Loan Data (a) Data to be included. A depository institu tion shall compile data on the number and Regulation C total dollar amount4 of home purchase and home improvement loans that it originates and purchases, for each calendar year begin ning with calendar year 1981. (b) Format. The loan data shall be compiled separately for originations and purchases, us ing the form set forth in appendix C, and shall be itemized as follows: (1) Geographic itemization. The loan data shall be itemized by standard metropolitan statistical area (SMSA). Within each SMSA, the data shall be further itemized by the census tract in which the property to be purchased or improved is located, except that— (i) If the property is located in a county with a population5 of 30,000 or less or in an area that has not been assigned census tracts, itemization by county shall be used instead of itemization by census tract. (ii) If the property is located outside any SMSA, or is located in an SMSA in which the institution has neither a home nor a branch office, no itemization (by SMSA, county, or census tract) is re quired and the data for all such loans shall instead be listed as an aggregate sum. (2) Type-of-loan itemization. The loan data within each geographic category described in paragraph (b)(1) of this section shall be further itemized as follows: (i) FHA, FmHA, and VA loans on oneto four-family dwellings; (ii) Other home purchase (convention al) loans on one- to four-family dwellings; 4 “Total dollar amount” means (i) the original principal amount o f loans originated by the depository institution (to the extent o f its ownership interest, when the loan is made jointly o r cooperatively) and (ii) the unpaid balance of loans purchased by the depository institution (to the extent of its ownership interest in such purchased loans). For home improvement loans, w hether originated o r p u r chased, the amount to be reported may include unpaid fi nance charges. 5 The population is to be determined by reference to the “ 1980 Census o f Population, N U M B ER O F IN H A B I TANTS, PC80-1-A” series prepared by the Bureau o f the Census, U.S. Department o f Commerce, W ashington, D.C. 20233. Until this publication becomes available, county population shall be determined using the “ 1980 Census of Population and Housing, F IN A L PO PU L A TIO N A N D H O USING U N IT COUNTS (A dvance R eports), PHC80V” series, also prepared by the Bureau o f the Census. § 203.4 (iii) Home improvement loans on oneto four-family dwellings; (iv) Total home purchase and home im provement loans on dwellings for more than four families; and (v) Total home purchase and home im provement loans on one- to four-family dwellings (from categories (i), (ii), and (iii) above) made to any borrower who did not, at the time of the loan applica tion, intend to use the property as a prin cipal dwelling.6 This addendum item is not required for loans on property in the outside-SMSAs category described in paragraph (b) (1) (ii) of this section. (c) Excluded data. A depository institution shall not disclose loan data for (1) Loans originated and purchased by the depository institution acting as trustee or in some other fiduciary capacity; (2) Loans on unimproved land; or (3) Refinancings that the depository insti tution originates, if there is no increase in the principal that is outstanding on the ex isting loan at the time of the refinancing and if the institution and the borrower are the same parties on the existing loan and the refinancing. (d) SMSAs and census tracts. For purposes of geographic itemization— (1) A depository institution shall use the SMSA boundaries defined by the U.S. De partment of Commerce, Washington, D.C. 20233, as of the first day of the calendar year for which the data are compiled. (2) A depository institution shall use the census tract numbers and boundaries on the census tract maps in the “ 1980 Census of Population and Housing, CENSUS TRACTS, PHC80-2” series prepared by the Bureau of the Census.7 If a census tract number is duplicated within an SMSA, then the census tract shall also be identified by county, city, or town name. 6 A depository institution may assume, unless its records contain information to the contrary, that a loan that it pur chases does not fall within this category. 7 A n institution may use either 1970 or 1980 census tract boundaries in geocoding loans in an SMSA until the 1980 census tract outline maps for th at SMSA become available from the Bureau of the Census. 3 § 203.5 SECTION 203.5— Disclosure and Reporting Requirements (a) Time requirements for disclosure state ments. A depository institution shall make its loan data disclosure statements available to the public by March 31 following the calendar year for which the data were compiled, and shall continue to make them available for five years from that date. (b) Offices at which disclosure statements are to be made available. (1) A depository in stitution shall make a complete disclosure statement available at its home office. (2) A depository institution shall also make a disclosure statement available in at least one branch office in each SMSA where it has offices, other than the SMSA in which the home office is located. The state ment at a branch office may omit, at the option of the institution, all data other than the data relating to property located in the SMSA where that branch is located. (3) Upon request, a depository institution shall promptly provide information regard ing the office(s) of the institution where its disclosure statements are available. (c) Manner o f making disclosure statements available. A depository institution shall make its loan data disclosure statements available to anyone requesting them for inspection or copying during the hours the office is normal ly open to the public for business. A deposito ry institution that provides photo-copying fa cilities may impose a reasonable charge for this service. (d) Notice o f availability. A depository insti tution shall provide notice of the availability of its mortgage loan data by posting a notice in the lobbies of its home and branch offices that are located in SMSAs. (e) Reporting requirements. For purposes of data aggregation, a depository institution shall send two copies of its complete disclosure statement to the regional office of its enforce ment agency by March 31 following the calen dar year for which the data were compiled. 4 Regulation C SECTION 203.6— Administrative Enforcement and Sanctions for Violations (a) Administrative enforcement. As set forth more fully in sections 305(b) and 306(b) of the act, compliance with the act and this regu lation is enforced by the Comptroller of the Currency, the Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal Home Loan Bank Board, and the Na tional Credit Union Administration. (b) Sanctions fo r violations. (1) A violation of the act or this regulation is subject to administrative sanctions as provided in sec tion 305(c) of the act. (2) An error in compiling or disclosing re quired data is not considered a violation of the act or this regulation if the error was unintentional and resulted from a bona fide mistake despite the maintenance of proce dures reasonably adapted to avoid such an error. A P P E N D IX A — Federal Enforcement Agencies The following list indicates which federal agency enforces Regulation C for particular classes of institutions. Any questions concern ing compliance by a particular institution should be directed to the appropriate enforc ing agency. National Banks Comptroller of the Currency Office of Customer and Community Programs Washington, D.C. 20219 State Member Banks Federal Reserve Bank serving the district in which the state member bank is located. Nonmember Insured Banks and M utual Sav ings Banks Federal Deposit Insurance Corporation re gional director for the region in which the bank is located. Savings Institutions Insured by the FSLIC and Members o f the FHLB System (except for Savings Banks insured by FDIC) The Federal Home Loan Bank Board supervi Regulation C sory agent in the district in which the institu tion is located. Credit Unions Office of Consumer Affairs National Credit Union Administration 1776 G Street, N.W. Washington, D.C. 20456 Other Depository Institutions Federal Deposit Insurance Corporation re gional director for the region in which the in stitution is located. A PPEND IX B— State Exemptions (a) Application. Any state,1 state-chartered depository institution, or association of such depository institutions may apply to the Board pursuant to this appendix and the Board’s Rules of Procedure (12 CFR 262) for an exemption under section 203.3(b). Such an exemption requires a determination that a state-chartered depository institution is sub ject to state law requirements2 substantially similar to those imposed by this regulation, and that there is adequate provision for en forcement of those requirements. (b) Supporting documents. The application, which may be made by letter, shall include— (1) A copy of the full text of the relevant state law, including provisions for enforcement; (2) A statement of reasons why the state requirements are substantially similar to those imposed by the act and this regula tion, including an explanation why any dif ferences are not significant; and (3) An undertaking to inform the Board within 30 days of the occurrence of any change in the relevant state law. (c) Public notice o f filing. The Board will publish in the Federal Register notice of the filing of an application that complies with the above requirements. A copy of the application will be made available for examination during business hours at the Board and at the Federal 1 “State” includes any subdivision o f a state. 2 “State law” includes any regulations which implement the law, any official interpretations o f the law, and regula tions of a state agency or departm ent that has jurisdiction over a class(es) o f depository institutions. Appendix B Reserve Bank of each Federal Reserve Dis trict in which the applicant is situated. The Board will provide a period of time for inter ested persons to submit written comments. For multiple applications concerning the same state law, the Board may (1) consolidate the notice of receipt of all such applications in one Federal Register notice, and (2) dispense with publication of notice of applications subse quently received. (d) Grant o f exemption. If the Board deter mines that some or all state-chartered deposi tory institutions are subject to requirements substantially similar to those imposed by this regulation, and that there is adequate provi sion for enforcement, the Board will exempt such institution (s) from the requirements of this regulation (except as specified in section 203.3(b)) by publishing notice of the exemp tion in the Federal Register. The Board also will furnish a copy of the notice to the appli cant, to each state authority responsible for administrative enforcement of the state law, to the regulatory authorities specified in section 305(b) of the act, and to each participant in the proceeding. (e) Subsequent amendments; revocation o f exemption. (1) The Board will inform the ap propriate state official of any subsequent amendments to this regulation (including published interpretations of the Board) that might require amendment of the state law. The Board may require reapplication for an exemption. (2) The Board reserves the right to revoke an exemption if at any time it determines that state law does not in fact impose re quirements substantially similar to those imposed by this regulation, or that there is not in fact adequate provision for enforcement. (3) The Board will publish notice of its in tent to revoke an exemption in the Federal Register and will send the notice to the ap propriate state official. The Board will allow time after publication for interested persons to submit written comments. (4 ) If an exemption is revoked, the Board will publish notice of the revocation in the Federal Register and will send a copy of the notice to the appropriate state official and 5 Regulation C Appendix B to the regulatory authorities specified in section 305(b) of the act. (5) The Board may dispense with the pro cedures set forth in this section in any case in which it finds such procedures unnecessary. 3. Data for loans originated by the institution are to be shown in part A and data for loans purchased in part B. 4. Dollar amounts are to be rounded to the nearest thousand ($500 will be rounded up) and shown in terms of thousands. Data to Be Excluded Appendix C— Mortgage Loan Disclosure Statement Who Must File 1. This form must be filed by depository insti tutions that— a. have assets of more than $10 million, b. make first-lien loans on one- to fourfamily residential real property, and c. are located in standard metropolitan sta tistical areas (SMSAs). 2. Institutions that have been exempted by the Federal Reserve Board because they are covered by a similar state mortgage loan dis closure law will instead complete and file the disclosure form required by their state law. When and Where to File 1. The institution must send two copies of the disclosure statement to the regional office of its federal enforcement agency no later than March 31 following the calendar year for which the loan data were compiled. 2. The institution also must make its disclo sure statement available no later than March 31 for examination by the public. Instructions for Completion o f Form Data to Be Shown 1. The institution must show the data on resi dential mortgage and home improvement loans that were originated and purchased dur ing the calendar year covered by the statement. 2. Data for each category on the statement must show both the number of loans and the total dollar amount of loans. 6 1. Do not report loans that, although secured by real estate, are made for purposes other than the purchase of residential real estate or home improvement (for example, a loan se cured by residential real property for purposes of financing education, a vacation, or business operations). 2. Also exclude from disclosure: construction loans and other temporary financing; loans made or purchased by the institution acting in a fiduciary capacity (by the institution’s trust department, for example); loans on unim proved land; and refinancings of loans origi nated by the institution that involve no in crease in the outstanding principal (provided the parties to the loan remain the same). Geographic Itemization (Grouping o f loan data by SMSA, census tract or county, and outsideSMSA) 1. Loan data are to be itemized separately for each SMSA in which the institution has a home or branch office. A separate page must be used for each SMSA. (See item 4 below for treatment of loans on property outside such SMSAs.) The institution must use the SMSA boundaries as defined by the U.S. Department of Commerce on January 1 of the calendar year for which the loan data are compiled. 2. Loan data on property within an SMSA shall be further itemized by the census tract in which the property is located, except that the loan data shall be itemized by county instead of census tract when the property to which the loan relates is located— a. in an area that is not divided into census tracts on the Census Bureau’s census tract outline maps or b. in a county with a population of 30,000 or less. (Note: To determine population, use the Census Bureau’s PC80-1-A popula Regulation C tion series. If that series is not yet available for a particular county, use the PHC80-V series.) 3. To determine census tract numbers and SMSA boundaries, the institution should con sult the Census Bureau’s census tract outline maps. (The institution should use the Census Bu reau’s PHC80-2 series for the 1980 census if it is available for the particular SMSA. Until the series is available, the institution may use the Census Bureau’s P H C (l) series maps for 1970, or it may use 1980 data from the Census Bureau (such as the G BF/DIM E files) or from a private publisher. The institution should indicate on the state ment whether it has used 1970 or 1980 census tracts. An institution using 1970 census tracts for a given SMSA must use them for the en tire calendar year, even if the PHC80-2 maps for that SMSA become available during the year.) 4. If the property to which the loan relates is located outside SMSAs in which the reporting institution has a home or branch office, or out side any SMSA, the loan data should be listed as an aggregate sum in section 2 of the form; no geographic itemization is necessary. 5. Institutions that have a home or branch of fice in the New York City/New Jersey SMSA should note that there are duplicate census tract numbers in New York City. There may also be duplicate numbers in other SMSAs. When reporting loan data relating to property in these SMSAs, the institutions must indicate the county name in addition to the tract number. Type-of-Loan Itemization (Itemization o f each geographic grouping into loan categories) 1. Column A: FHA, FmHA, and VA loans on one- to fourfamily dwellings. This category includes loans that are secured by liens (both first and junior liens) and that are made for the purpose of purchasing residential real property and that have FHA, FmHA, and VA insurance or guarantee. It includes refinancings (but see item 2 under Data to Be Excluded). It may include, at an institution’s option, first-lien Appendix C loans for home improvement purposes if the institution normally classifies first-lien loans as purchase loans. It does not include FHA title I loans, which are to be entered in col umn C. 2. Column B: Other home purchase loans (“conventional” loans) on one- to four-family dwellings. This category includes loans secured by liens (both first and junior liens) and made for the pur pose of purchasing residential real property, other than FHA, FmHA, and VA loans. It includes refinancings (but see item 2 under Data to Be Excluded). It may include, at an institution’s option, first-lien loans for home improvement purposes if the institution nor mally classifies first-lien loans as purchase loans. 3. Column C: Home Improvement loans on one- to four-fam ily dwellings. This category is limited to any loan, including a refinancing, that is to be used for repairing, rehabilitating, or remodel ing a residential dwelling and that is recorded on the institution’s books as a home improve ment loan. It includes both secured and unse cured loans. 4. Column D: Loans on multifamily dwellings (five or more families). This category includes home pur chase and home improvement loans—that is, it covers the same types of loans as are cov ered in columns A, B, and C. The difference is that those columns relate to loans on one- to four-family dwellings, whereas column D re lates to loans on dwellings for five or more families. 5. Column E: Non-occupant loans on one- to four-family dwellings. This is an addendum category for reporting those home purchase and home im provement loans on one- to four-family dwell ings (recorded in columns A, B, and C) that were made to a borrower who did not, at the time of the loan application, intend to use the property as a principal dwelling. A depository institution may assume, unless its records con tain information to the contrary, that a loan it purchases does not fall within this category. 7 Report for loans m ade In 1 9 _____ Appendix C ♦Actual size 8^x14 inches. FR B HMDA-1 OMB No. 71004090 Approval ex p ire s S e p te m b e r 19C MORTGAGE LOAN DISCLOSURE STATEMENT T h is report Is required by law (12 U.S.C. 2801-28 11 and 12 C F R 203). E nforcem ent AQency for th is In stitution Depository In stitu tio n Census tra ct series used: _ N am * S M S A (lo catio n o f property) _ PA R T A — O R IG IN A T IO N S S E C T IO N 1- L O A N S O N PR OPER TY LO C A TE D W IT H IN T H O S E S M S A s IN W H IC H IN S T IT U T IO N H A S H O M E O R B R A N C H O F F IC E S Loans on 1 • to - 4 fam ily d w ellings C E N S U S TR A C T (In num erical sequence) w h ere property lo cated or C O U N T Y (name) w h e re property located H o m e Purchase Loans H o m e Im provem ent Loans F H A , F m H A , and VA O th er (“ Conventional") B A No. of Loans Principal A m ount (Thousands) No. of Loans Principal A m ount (Thousands) Loans on M ulti-fam ily D w e llin g s for 5 or more fa m ilie s (hom e purchases an d hom e Im provem ent) Principal A m ount (Thousands) E D C No. of Loans A ddendum Item: Non-occupant Loans on 1 • to • 4 fam ily d w ellings No . of Loans Principal A m ount (Thousands) No. of Loans Principal A m ount (Thousands) S M S A TO T A L Regulation C S E C T IO N 2 - L O A N S O N ALL PR O PER TY LO C A TED E L S E W H ER E Regulation C PA R T B— P U R C H A SES SE C T IO N 1 — DATA FO R PR O PER TY LO C A TED W IT H IN T H O S E S M S A s IN W H IC H IN S T IT U T IO N H A S H O M E OR B R A N C H O F F IC E S Loans on 1 • to • 4 fa m ily d w ellings C E N S U S TR A C T (In num erical sequence) w h ere property located or C O U N T Y (name) w h ere property located H om e Purchase Loans H o m e Im provem ent Loans F H A , F m H A , and VA O th er (“C o n ven tio n al”) A No. of Loans B Principal A m ount (Thousands) No. of Loans Principal A m ount (Thousands) Loans on M u lti-fam ily D w ellin g s fo r 5 or more fam ilie s (home purchases an d hom e Improvem ent) C No. of Loans Principal A m ount (Thousands) A ddendum Item: N on-occupant Loans on 1 - to - 4 fa m ily dw ellin g s D No . of Loans Principal A m ount (Thousands) E No. of Loans P rincipal A m ount (Thousands) S M S A TO T A L S E C T IO N 2 — LO A N S O N ALL PRO PERTY LO C A TED ELSEW H ER E Appendix C Home Mortgage Disclosure Act 12 USC 2801 et seq.; 89 Stat. 1125; Pub. L. 94-200, Title III (Decem ber 31, 1975); as amended October 8, 1980 TITLE III— HOM E M ORTGAGE DISCLOSURE Section 301 Short title 302 Findings and purposes 303 Definitions 304 Maintenance of records and public disclosure 305 Enforcement 306 Relation to state laws 307 Research and improved methods 308 Study 309 Effective date 310 Compilation of aggregate data 311 Disclosure by the secretary 312 Termination of authority SECTION 303— Definitions For purposes of this title— (1) the term “mortgage loan” means a loan which is secured by residential real property or a home improvement loan; (2) the term “depository institution” means any commercial bank, savings bank, savings and loan association, building and loan association, or homestead association (including cooperative banks) or credit un ion which makes federally related mortgage loans as determined by the Board; (3) the term “Board” means the Board of Governors of the Federal Reserve System; and (4) the term “Secretary” means the Secre tary of Housing and Urban Development. SECTION 301— Short Title This title may be cited as the “Home Mort gage Disclosure Act of 1975.” SECTION 302— Findings and Purposes (a) The Congress finds that some depository institutions have sometimes contributed to the decline of certain geographic areas by their failure pursuant to their chartering responsi bilities to provide adequate home financing to qualified applicants on reasonable terms and conditions. (b) The purpose of this title is to provide the citizens and public officials of the United States with sufficient information to enable them to determine whether depository institu tions are filling their obligations to serve the housing needs of the communities and neigh borhoods in which they are located and to as sist public officials in their determination of the distribution of public sector investments in a manner designed to improve the private in vestment environment. (c) Nothing in this title is intended to, nor shall it be construed to, encourage unsound lending practices or the allocation of credit. SECTION 304— Maintenance of Records and Public Disclosure (a) (1) Each depository institution which has a home office or branch office located with in a standard metropolitan statistical area, as defined by the Department of Commerce shall compile and make available, in ac cordance with regulations of the Board, to the public for inspection and copying at the home office, and at least one branch office within each standard metropolitan statisti cal area in which the depository institution has an office the number and total dollar amount of mortgage loans which were (A) originated, or (B) purchased by that insti tution during each fiscal year (beginning with the last full fiscal year of that institu tion which immediately preceded the effec tive date of this title.) (2) The information required to be main tained and made available under paragraph (1) shall also be itemized in order to clearly and conspicuously disclose the following: (A) The number and dollar amount for each item referred to in paragraph (1), by census tracts for mortgage loans se cured by property located within any county with a population of more than 11 §304 Regulation C (Statutory Provisions) 30,000, within that standard metropoli depository institution which is required to tan statistical area, otherwise, by county, make disclosures under this section but which for mortgage loans secured by property has been making disclosures on some basis located within any other county within other than a calendar year basis shall make that standard metropolitan statistical available a separate disclosure statement con taining data for any period prior to calendar area. (B) The number and dollar amount for year 1980 which is not covered by the last full each item referred to in paragraph (1) year report prior to the 1980 calendar year for all such mortgage loans which are se report. cured by property located outside that (e) The Board shall prescribe a standard for standard metropolitan statistical area. mat for the disclosures required under this For the purpose of this paragraph, a deposi section. tory institution which maintains offices in more than one standard metropolitan statis (f) The Federal Financial Institutions Exam tical area shall be required to make the in ination Council in consultation with the Sec formation required by this paragraph avail retary, shall implement a system to facilitate able at any such office only to the extent access to data required to be disclosed under that such information relates to mortgage this section. Such system shall include ar loans which were originated or purchased rangements for a central depository of data in by an office of that depository institution each standard metropolitan statistical area. located in the standard metropolitan statis Disclosure statements shall be made available tical area in which the office making such to the public for inspection and copying at such central depository of data for all deposi information available is located. tory institutions which are required to dis (b) Any item of information relating to close information under this section (or which mortgage loans required to be maintained un are exempted pursuant to section 306(b)) and der subsection (a) shall be further itemized in which have a home office or branch office order to disclose for each such item— within such standard metropolitan statistical (1) the number and dollar amount of area. mortgage loans which are insured under ti tle II of the National Housing Act or under title V of the Housing Act of 1949 or which are guaranteed under chapter 37 of title 38, SECTION 305— Enforcement United States Code; (2) the number and dollar amount of (a) The Board shall prescribe such regula mortgage loans made to mortgagors who tions as may be necessary to carry out the did not, at the time of execution of the purposes of this title. These regulations may mortgage, intend to reside in the property contain such classifications, differentiations, or other provisions, and may provide for such securing the mortgage loan; and (3) the number and dollar amount of adjustments and exceptions for any class of transactions, as in the judgment of the Board home improvement loans. are necessary and proper to effectuate the pur (c) Any information required to be compiled poses of this title, and prevent circumvention and made available under this section shall be or evasion thereof, or to facilitate compliance maintained and made available for a period of therewith. five years after the close of the first year dur ing which such information is required to be (b) Compliance with the requirements im posed under this title shall be enforced un maintained and made available. der— (d) Notwithstanding the provisions of sub (1) section 8 of the Federal Deposit Insur section (a)(1 ), data required to be disclosed ance Act, in the case of— under this section for 1980 and thereafter (A) national banks, by the Comptroller shall be disclosed for each calendar year. Any of the Currency; 12 Regulation C (Statutory Provisions) (B) member banks of the Federal Re serve System, other than national banks, by the Board; (C) banks insured by the Federal De posit Insurance Corporation (other than members of the Federal Reserve System) and mutual savings banks as defined in section 3(f) of the Federal Deposit In surance Act (12 U.S.C. 1813(f)) and any other depository institution not re ferred to in this paragraph or paragraph (2) or (3) of this subsection, by the Board of Directors of the Federal Depos it Insurance Corporation; (2) section 5(d) of the Home Owners’ Loan Act of 1933, section 407 of the Na tional Housing Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (act ing directly or through the Federal Savings and Loan Insurance Corporation), in the case of any institution subject to any of those provisions; and (3) the Federal Credit Union Act, by the Administrator of the National Credit Un ion Administration with respect to any credit union. (c) For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that sub section, a violation of any requirement im posed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any pro vision of law specifically referred to in subsec tion (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title, any other authority conferred on it by law. SECTION 306— Relation to State Laws (a) This title does not annul, alter, or affect, or exempt any State-chartered depository in stitution subject to the provisions of this title from complying with the laws of any state or subdivision thereof with respect to public dis closure and recordkeeping by depository insti tutions, except to the extent that those laws are inconsistent with any provision of this ti §307 tle, and then only to the extent of the incon sistency. The Board is authorized to deter mine whether such inconsistencies exist. The Board may not determine that any such law is inconsistent with any provision of this title if the Board determines that such law requires the maintenance of records with greater geo graphic or other detail than is required under this title, or that such law otherwise provides greater disclosure than is required under this title. (b) The Board may by regulation exempt from the requirements of this title any statechartered depository institution within any state or subdivision thereof if it determines that, under the law of such state or subdivi sion, that institution is subject to requirements substantially similar to those imposed under this title, and that such law contains adequate provisions for enforcement. Notwithstanding any other provision of this subsection, compli ance with the requirements imposed under this subsection shall be enforced under— (1) Section 8 of the Federal Deposit Insur ance Act in the case of national banks, by the Comptroller of the Currency; and (2) Section 5(d) of the Home Owners’ Loan Act of 1933 in the case of any institu tion subject to that provision, by the Feder al Home Loan Bank Board. SECTION 307— Research and Improved Methods (a) (1) The Federal Home Loan Bank Board, with the assistance of the Secretary, the Di rector of the Bureau of the Census, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and such other persons as the Federal Home Loan Bank Board deems appropri ate, shall develop, or assist in the improve ment of, methods of matching addresses and census tracts to facilitate compliance by depository institutions in as economical a manner as possible with the requirements of this title. (2) There is authorized to be appropriated such sums as may be necessary to carry out this subsection. 13 §307 (3) The Federal Home Loan Bank Board is authorized to utilize, contract with, act through, or compensate any person or agency in order to carry out this subsection. (b) The Federal Home Loan Bank Board shall recommend to the Committee on Bank ing, Currency and Housing of the House of Representatives and the Committee on Bank ing, Housing and Urban Affairs of the Senate such additional legislation as the Federal Home Loan Bank Board deems appropriate to carry out the purpose of this title. SECTION 308— Study (a) The Board, in consultation with the Sec retary of Housing and Urban Development, is authorized and directed to carry out a study to determine the feasibility and usefulness of requiring depository institutions located out side standard metropolitan statistical areas, as defined by the Office of Management and Budget, to make disclosures comparable to those required by this title. (b) A report on the study under this section shall be transmitted to the Congress not later than three years after the date of enactment of this title. SECTION 309— Effective Date This title shall take effect on the one hundred and eightieth day beginning after the date of its enactment. Any depository institution which has total assets as of its last full fiscal year of $10,000,000 or less is exempt from the provisions of this title. SECTION 310— Compilation of Aggregate Data (a) Beginning with data for calendar year 1980, the Federal Financial Institutions Ex amination Council shall compile each year, for each standard metropolitan statistical area, aggregate data by census tract for all de pository institutions which are required to dis close data under section 304 or which are ex empt pursuant to section 306(b). The Council 14 Regulation C (Statutory Provisions) shall also produce tables indicating, for each standard metropolitan statistical area, aggre gate lending patterns for various categories of census tracts grouped according to location, age of housing stock, income level, and racial characteristics. (b) The Board shall provide staff and data processing resources to the Council to enable it to carry out the provisions of subsection (a). (c) The data and tables required pursuant to subsection (a) shall be made available to the public by no later than December 31 of the year following the calendar year on which the data is based. SECTION 311— Disclosure by the Secretary Beginning with data for calendar year 1980, the Secretary shall make publicly available data in the Secretary’s possession for each mortgagee which is not otherwise subject to the requirements of this title and which is notexempt pursuant to section 306(b), with re spect to mortgage loans approved by the Sec retary for insurance under title I or II of the National Housing Act. Such data to be dis closed shall consist of data comparable to the data which would be disclosed if such mortga gee were subject to the requirements of section 304. Disclosure statements containing data for each such mortgage for a standard metropoli tan statistical area shall, at a minimum, be publicly available at the central depository of data established pursuant to section 304(f) for such standard metropolitan statistical area. The Secretary shall also compile and make publicly available aggregate data for such mortgagees by census tract, and tables indicating aggregate lending patterns, in a manner comparable to the information re quired to be made publicly available in ac cordance with section 310. SECTION 312— Termination of Authority The authority granted by this title shall expire on October 1, 1985. Regulation C (Statutory Provisions) PUBLIC LAW 96-399, TITLE III SECTION 340 (d) The Federal Financial Institutions Examination Council, in consultation with the Administrator of the Small Business Administration, shall conduct a study to assess the feasibility and usefulness of requiring depository institutions which make small business loans to compile and publicly disclose information regarding such loans. The Council shall submit a report on the results of such study, together with recommendations, to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives not later than March 1, 1981. P.L. 96-399 (e) To promote efficiency and avoid duplica tion to the maximum extent feasible, the Fed eral Financial Institutions Examination Coun cil shall transmit a report to the Congress not later than September 30, 1982, on the feasibili* and desirability of establishing a unified system for enforcing fair lending laws and regE lio n s, implementing the Community Reinvestment Act of 1977, and satisfying the publlc disclosure purposes of the Home Mortgage Disclosure Act of 1975. Such report shall evaluate the status and effectiveness of data collection and analysis systems of such agencles involving fair lending and community re investment, and shall outline possible specific timetables for implementing such a unified system. [12 USC 2801 note, 2901 note, and 3305 note.] [12 USC 3305 note.] 15
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