The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK
OF NEW YORK
C ircu lar N o.
[
10311 ”1
O cto b er 17, 1 9 8 9
j
PROPOSED REVISIONS TO REGULATION C
Implementing Amendments to the Home Mortgage Disclosure Act
Comments Invited by November 3
To A ll Institutions Subject to the Home Mortgage Disclosure Act in the Second
Federal Reserve District, and Others Concerned:
T he Board o f G overnors o f the Federal R eserv e S y stem has issu ed p rop osed revision s to its
R egulation C , “H om e M ortgage D isc lo su r e ,” d esig n ed to im plem ent am endm ents to the H om e
M ortgage D isclo su re A ct (H M D A ) enacted into law earlier this year as part o f the F inancial In sti
tutions R eform , R ecovery and E nforcem ent A ct (F IR R E A ). T h e fo llo w in g statem ent w as issu ed by
the Board o f G overnors announcing the p rop osed revisions:
In general, the amendments to HMDA:
1.
2.
3.
4.
5.
expand its coverage to include mortgage lenders that are not affiliated with depository insti
tutions or holding companies;
require disclosure of data on loan applications and their disposition;
require disclosure of the race, sex, and income of borrowers and applicants;
require disclosure of the type of purchaser of loans that are sold; and
permit institutions to report the reasons for their loan decisions.
Under the revised regulation, institutions would record the required information, on a loan-by-loan
basis, using a loan/application register, and submit the register to their supervisory agency. The Federal
Financial Institutions Examination Council (FFIEC) would then aggregate and cross-tabulate the data
and produce several reports which would be made available to the public by the institution. The Board
seeks comment on how to clarify the requirements for the loan/application register and on the output
that should be produced by the FFIEC.
Institutions must collect the new data beginning January 1, 1990 and it must be reported in early
1991. Reports for calendar year 1989, which are due on March 31,1990, are not affected by the revisions.
P rinted on the fo llo w in g p ages is the text o f the prop osal, w h ich has been reprinted from the
Federal Register o f
O ctober 6 , 1989. C om m ents thereon should b e subm itted b y N ovem b er 3 , and
m ay be sent to the Board o f G overnors, as sp ecified in the n otice, or to our C om p lian ce E xam in ation s
D epartm ent. P lea se note that the com m en t p eriod in this matter i 5 very short in order to enable the
Board to issu e final regulations by D ecem b er 19 8 9 so that in stitu tion s w ill be able to b eg in co lle c tin g
inform ation b y January 1, 1990.
E. G e r a l d C o r r ig a n ,
President.
Federal Register / Vol. 54, No. 193 ( Friday, October 6, 1989 / Proposed Roles
FEDERAL R E SE R V E SYSTEM
1 2 C F R Part 203
l Reg. C; Docket No. R-0674}
RiN 710G-ABG4
H om e M o rtg a g e D isclo su re
a g e n c y : Board of Governors of the
Federal Reserve System.
a c t i o n : Proposed rule.
The Board is publishing for
public comment a revised Regulation C
(Home Mortgage Disclosure). The
revised regulation implements
amendments to the Home Mortgage
Disclosure Act (HMDA) contained in the
Financial Institutions Reform, Recovery
and Enforcement Act (FIRREA). The
FIRREA amendments expand the
coverage of HMDA to include mortgage
lenders that are not affiliated with
depository institutions or holding
companies, and require covered
institutions to report data regarding
mortgage and home improvement loan
applications they receive in addition to
data regarding loan originations and
purchases. Most institutions will now
also be required to report the race, sex
and income of mortgage and home
improvement loan applicants and
borrowers
The Board is proposing to adopt a
"loan/application register’' form for
11MDA reporting, on which institutions
would record the required information
for applications completed, loans
actually made, and loans purchased. In
particular, the Board is seeking public
comment on the layout and categories of
the loan/application register and on the
summary tables that would be produced
by the Federal Financial Institutions
Examination Council (FFIEC) from the
data submitted.
The FIRREA amendments are
effective on January 1,1990, and the first
set of reports in the new register format
will be due in early 1991. Reports of 1989
loan data, which, are due on March 31.
1990. remain subject to the existing
provisions of the regulation; and
institutions must use the current Form
SU M M ARY:
HMDA-1 or HMDA-2 as appropriate.
Comments must be received on
or before November 3, 1989.
a d d r e s s e s : Comments should be
mailed to William W. Wiles, Secretary,
Board of Governors of the Federal
Reserve System, Washington, DC 20551,
or delivered to the Mail Services
courtyard entrance on 20th Street,
between C Street and Constitution
Avenue, NW„ Washington, DC between
8:45 a.m. and 5:15 p.nv weekdays.
Comments should include a reference to
Docket No. R-0674. Comments may be
inspected m Room B-1122 between 8:45
a.m. and 5:15 p.m. weekdays.
dates:
FOR FURTHER INFORMATION CONTACT:
Thomas J. Noto or W. Kurt Schumacher,
Staff Attorneys, Division of Consumer
and Community Affairs, Board of
Governors of the Federal Reserve
System, Washington, DC 20551, at 202452-2412 or 202-452-3667: for the
hearing impaired only, contact
Eamestine Hill or Dorothea Thompson,
Telecommunications Device for the
Deaf, at 202-452-3544.
SUPPLEMENTARY INFORMATION:
(1) Background
The Board'3 Regulation C (12 CFR part
203) implements the Home Mortgage
Disclosure Act of 1975 (HMDA) (12
U.S.C. 2801 et seq.). The regulation
currently requires depository
institutions, mortgage banking
subsidiaries of holding companies, and
savings and loan service corporations
that have over $10 million in assets and
have offices in metropolitan statistical
areas (MSAs) or primary metropolitan
statistical areas (PMSAs), to disclose
annually their originations and
purchases of mortgage and home .
improvement loans. Data must be
itemized by census tract (or by county,
in some instances} and also by type of
loan. A disclosure statement covering
the data on a calendar-year basis
currently must be made available to the
public and sent to the institution’s
federal supervisory agency by March 31
following the calendar year for which
the data are compiled.
The Financial Institutions Reform,
P R I N T E D IN N E W Y O R K , FR O M
FEDERAL REGISTER,
Recovery and Enforcement Act
(FIRREA), which was signed into law on
August 9.1989, made a number of
significant amendments to HMDA.
(FIRREA. Pub. L No. 101-73. section
1211, 103 Stat. 183, 524-526 (1989).) First,
the coverage of HMDA was expanded to
include mortgage lenders that are not
affiliated with depositary institutions or
holding companies. Second, the FIRREA
amendments require that institutions
report data regarding loan applications^
currently, only data regarding loans
originated or purchased are reported.
Third, the FIRREA amendments require
most covered lenders to report the race,
sex, and income of mortgage applicants
and borrowers: depository institutions
with assets under $30 million are
exempt from this particular requirement.
Fourth, the FIRREA amendments require
that lenders identify the class of
purchaser for loans that they sell.
Finally, the amendments permit lenders
to explain the basis for their lending
decisions to their supervisory agency.
The FIRREA amendments apply
beginning with calendar year 1990, and
data consistent with the new
requirements will be due on the reports
filed by institutions in early 1991. The
FIRREA amencfaaents do not affect the
requirements for reports of calendar
year 1989 data. The current provisions of
Regulation C govern these reports,
which are due by March 31.1990: for
these reports, institutions should use
Form HMDA-1 or HMDA-2 as
appropriate. (The current edition of A
Guide to HMDA Reporting, published
by the FFIEC in January 1989, provides
guidance on complying with the current
Regulation C and can be used in
reporting on the 1989 data. The guide
will be rewritten to reflect the FIRREA
amendments.)
To implement the FIRREA
amendments, the Board is publishing
proposed revisions to Regulation C. The
proposed revisions provide for a
“register” form of reporting. Under the
proposed arrangement, lenders would
record data on a loan-by-lcran and
applieation-by-applicaticm basis and
submit their registers to their
supervisory agency. The Board believes
V O L . 5 4 , NO. 1 9 3 , pp. 4 1 2 5 5 - 4 1 2 7 4
41256
Federal Register /
Vol. 54, N a 193 / Friday, October 6, 1989 / Proposed Rules
that institutions would have to maintain
detailed information, given the FIRREA
requirements, under any reporting
arrangement that the Board might adopt.
Under the Board’s proposal, however,
institutions would not have to undertake
the additional step and cost of crosstabulating the data. The register should
therefore keep the n ew reporting burden
to a minimum.
T he B oard is pu b lish in g a rev ise d
reg u latio n in its e n tire ty in o rd er to
fac ilita te rev ie w by co m m en ters.
H ow ever, the m a jo r chan g es, a sid e from
the e x p a n sio n in co v e rag e of le n d ers,
affect the d a ta to b e co llec te d a n d the
form in w h ich the d a ta w ill b e re p o rte d
(see § 203.4 of th e p ro p o se d regulation).
T he fo rm at for d a ta su b m issio n is
b eing d e v e lo p e d in co n su lta tio n w ith the
ag en cies re sp o n sib le fo r enforcing
HM DA, n am ely th e F e d e ra l D eposit
In su ra n ce C o rp o ratio n (FDIC), the
D ep a rtm en t of H ousing a n d U rb an
D evelopm ent (HUD), the N atio n al C redit
U nion A d m in istra tio n (NCUA), th e
O ffice o f the C o m p tro ller of the
C urrency (OCC), a n d th e O ffice o f T hrift
S u p erv isio n (OTS). S ev eral of th e se
ag en cies cu rren tly req u ire u se o f a
register. It is c o n te m p la te d th a t a d o p tio n
o f th e reg ister a p p ro a c h u n d e r HM DA
could le a d to elim in a tio n o f d u p lic ativ e
reg ister req u irem en ts, alth o u g h a n
ag en cy m ight co llect d a ta , in ad d itio n to
th a t req u ired by HM DA, a s a n
ad d e n d u m to the H M D A register.
T he com m ent p e rio d e n d s on
N ovem ber 3,1989. B ecau se p ro m p t
im p lem en tatio n of th e sta tu to ry
am en d m e n ts is in the p u b lic in te re st, the
B oard h a s se t th is co m m en t p erio d in
p la ce of th e 60 d a y s n o rm ally c a lle d for
in the B o ard ’s policy sta te m e n t on
rulem aking (44 FR 3957, Ja n u ary 19,
1979). T he B oard b e lie v e s a n
a b b re v ia te d co m m en t p erio d is
n e c e s sa ry to e n su re th a t a fin al rule is in
p la c e a s quickly a s p o ssib le to p ro v id e
g u id an ce to c o v e re d le n d ers.
T he in fo rm atio n th a t m u st b e
co llected is m a n d a te d b y th e C ongress.
H ow ever, th e B o ard d o e s in v ite
com m ent on th e la y o u t o f th e re g iste r
a n d o n w h e th e r a d d itio n a l o r d iffe ren t
ca te g o rie s a n d c o d e s sh o u ld b e u se d to
co llect the req u ire d in fo rm atio n . It also
in v ites co m m en t on th e su m m ary ta b le s
(d iscu ssed u n d e r “A g g reg ated d a ta ”
b e lo w ) th a t w o u ld b e p ro d u c e d b y the
FFIEC from d a ta su b m itte d b y c o v e red
in stitu tio n s.
In a c c o rd a n c e w ith se ctio n 3507 o f the
P ap erw o rk R ed u ctio n A ct o f 1980, 44
U.S.C. Ch. 35, a n d 5 CFR 1320.13, th e
p ro p o sed rev isio n s to th e rep o rtin g form
w ill b e rev ie w e d by the B oard u n d e r the
a u th o rity d ele g a te d to th e B o ard b y the
O ffice o f M an ag e m en t a n d B udget a fte r
c o n sid e ra tio n of th e co m m en ts receiv ed
during the public com m ent period.
(2) S ectio n -b y -S ectio n S u m m ary
The proposed changes to each section
of the regulation are discussed below.
Section 203.1— Authority, Purpose, and
Scope
A n ew p ara g ra p h in § 203.1(b) reflects
the p u rp o se of the e x p a n d e d rep o rtin g
req u irem en ts, s ta te d in the FIRREA
am en d m e n ts, of iden tify in g p o ssib le
d isc rim in a to ry lending p a tte rn s. S ection
203.1 (c) a n d (d) h a v e b e e n re v ise d to
clarify th e co v erag e a n d sc o p e of the
reg u la tio n a n d to se t fo rth the role of the
FFIEC in p ro d u cin g re p o rts from d a ta
su b m itte d by in stitu tio n s.
Section 203.2—Definitions
S ectio n 203.2 c o n ta in s d efin itio n s of
term s u se d in th e reg u latio n , a n d h a s
b e e n re v ise d a s follow s.
Act. T he d efin itio n of “a c t” in
§ 203.2(a) is u n ch an g ed .
Application. U n d er se ctio n 1211(c) of
th e FIRREA a m en d m e n ts, in stitu tio n s
a re re q u ire d to re p o rt d a ta for
co m p leted lo a n a p p lic a tio n s, in a d d itio n
to d a ta for lo a n s o rig in a te d or
p u rc h a se d . A d efin itio n of “a p p lic a tio n ”
h a s b e e n a d d e d a s p ro p o se d S203.2(b);
su c ce ed in g p ro v isio n s h a v e b e e n
re n u m b e re d acco rd in g ly .
F or p u rp o se s o f co v erag e, a n
a p p lic a tio n re su lts w h e n a n in stitu tio n
h a s c o lle c te d th e in fo rm atio n n o rm ally
o b ta in e d in ev a lu a tin g b o rro w e rs for th e
ty p e o f cre d it re q u e ste d . T h is tre a tm e n t
of “a p p lic a tio n ” in th e p ro p o se d
reg u la tio n a n d o f “c o m p le te d
a p p lic a tio n ” in th e B o a n i’s R e g u latio n B
(E qual C red it O p p o rtu n ity ) (12 CFR
20Z2{{]) a re sim ilar. T h ey d iffer in th a t
th e R eg u latio n B d efin itio n re q u ire s th a t
th e in stitu tio n h a v e re c e iv e d all th e
in fo rm atio n fo r ev a lu a tin g a p p lic a tio n s
for th e a m o u n t a n d ty p e o f cre d it
re q u e ste d , in clu d in g su c h item s a s cre d it
re p o rts a n d in su ra n c e ap p ro v a ls, w h ile
to m e e t th e re q u ire m e n t for R egulation
C, th e a p p lic a tio n is to b e tre a te d a s
co m p lete e v e n if in stitu tio n h a s n o t
rec eiv e d re p o rts o r a p p ro v a ls by
se c o n d a ry m a rk e t en titie s, g o v ern m en t
en titie s, o r p riv a te m ortgage in su rers.
(The tre a tm e n t u n d e r R eg u latio n C is in
k eep in g w ith c o n g re ssio n a l in te n t a s
reflec te d in th e leg isla tiv e history.) A
co m p leted a p p lic a tio n w o u ld a lso e x ist
for p u rp o se s of R e g u latio n C in
in sta n c e s w h ere, though the ap p lic a tio n
is te ch n ic ally in co m p lete, th e le n d e r h a s
a su fficien t b a s is on w h ich to a p p ro v e o r
d en y th e re q u e st for cred it. In a d d itio n ,
u n d e r R eg u latio n B, a n in stitu tio n m ay
in c e rta in in sta n c e s se n d th e a p p lic a n t a
n o tic e o f in c o m p le ten e ss, a n d if th e
a p p lic a n t fails to re sp o n d w ith in a
re a so n a b le p erio d s ta te d in the notice,
the in stitu tio n h a s no fu rth er oblig atio n
to a c t on the crd it req u est. (R efer to
R egulation B, § 202.9(c)(2).) T he B oard
so licits co m m en t on w h eth e r this
situ a tio n sh o u ld b e d ee m ed a
w ith d ra w n a p p lic a tio n for p u rp o ses of
H M DA rep o rtin g (an d id en tified a s such
on the register) or w h e th e r a s e p a ra te
cate g o ry (such a s "file clo sed for
in c o m p le te n e ss” ) sh o u ld be used.
Branch office. T he b ran c h office
d efin itio n h a s se v e ra l im plications. F irst,
in stitu tio n s th a t do no t h av e a hom e or
b ra n c h office in an M SA a re co m p letely
ex em p t from HM DA. S econd,
in stitu tio n s m u st id en tify th e ce n su s
tra c t for lo a n s o n p ro p erty lo c ate d in
a n y M SA in w h ich th e in stitu tio n h a s a
hom e o r b ra n c h office. T hird, lo an d a ta
m u st b e m a d e a v a ila b le to th e public a t
o n e b ra n c h office (or the hom e office) in
e a c h M SA w h e re th e in stitu tio n h a s a
hom e o r b ra n c h office. Finally, the
in stitu tio n m u st p o st n o tic es in all
b ra n c h offices lo c a te d in M SA s to
inform th e p u b lic o f th e av a ila b ility of
th e H M D A d a ta .
S ectio n 203.2(c)(1) o f the p ro p o sed
reg u la tio n reta in s, for dep o sito ry
in stitu tio n s, th e b ra n c h office definition
c u rre n tly se t fo rth in 8 203.2(b)(l)(i)
w ith o u t su b sta n tiv e change. A b ran c h
office for b a n k s, sa v in g s a n d lo an
a s so c ia tio n s, a n d c re d it u n io n s is an
office a p p ro v e d a s a b ra n c h b y a
F e d e ra l o r s ta te su p e rv iso ry agency.
Just la st y ear, th e C ongress ex p a n d e d
H M D A c o v e rag e to in stitu tio n s o th e r
th a n d e p o sito ry in stitu tio n s, n am ely to
m ortgage b an k in g su b sid ia rie s o f b a n k
a n d th rift h o lding co m p an ies a n d to
sa v in g s a n d lo a n se rv ice co rp o ratio n s.
A s d isc u sse d in m ore d etail b elow , the
FIRREA am e n d m e n ts fu rth er ex p a n d the
c o v e rag e o f HM D A to “o th e r lending
in stitu tio n s." F o r all o f th e se entities,
d e sig n a te d a s “m o rtg age lending
in stitu tio n s” in th e p ro p o sed regulation,
th e B oard p ro p o se s to re ta in the
d efin itio n o f b ra n c h office cu rren tly in
S203.2(b)(l)(ii), m oving it to p ro p o sed
8 203.2(c)(2). A b ra n c h office is an y
p h y sic a l office o f th e in stitu tio n th a t
re c e iv e s a p p lic a tio n s from the public for
ho m e p u rc h a se o r ho m e im provem ent
lo an s.
In ad d itio n , u n d e r se ctio n 1211(f) of
th e FIRREA a m e n d m e n ts, “o th e r lending
in stitu tio n s”— w h ich is to sa y an y
c o v e re d in stitu tio n o th e r th a n a b an k ,
sa v in g s a s so c ia tio n , o r cre d it union— a re
d e e m e d to h a v e a b ra n c h office in an y
M SA in w h ich th ey receiv e ap p lic a tio n s
for, o rig in ate, o r p u rc h a se five o r m ore
ho m e p u rc h a se o r hom e im provem ent
lo a n s. P ro p o se d 8 203.2(c)(2)
Federal Register / VoL 54, No. 193 / Friday, October 6, 1989 / Proposed Rules
in c o rp o ra te s th is rule. T h e five-or-m orelo an rule w ill ap p ly for p u rp o se s of
d eterm in in g co v erag e a n d o f g eo g rap h ic
item izatio n , b u t it is c o n te m p la te d th a t
lending in stitu tio n s w ill b e re q u ire d to
m ak e d isc lo su re s ta te m e n ts a v a ila b le
a n d to p o s t H M D A n o tic e s o n ly in th o se
M SA s w h ere th ey h a v e a p h y sic a l
p resen ce.
Dwelling.. In th e c u rre n t reg u latio n ,
p a re n th e tic a l m a te ria l in th e d efin itio n s
of hom e p u rc h a se a n d ho m e
im p ro v em en t lo a n s in d ic a te s w h a t is
in c lu d e d in th e term “d w ellin g .’"
P ro p o se d § 203.2(d) a d d s a d efin itio n of
“d w ellin g ”' th a t c o n so lid a te s th is
m a te ria l a s w ell a s th e d e fin itio n o f
“sta te ."’
FHA, FmHA, and VA Ivans. T h e
defin itio n o f th e s e lo an s, c u rre n tly
c o n ta in e d in $203.2fc), h a s b e e n d e le te d
from 1 203-2 o f th e re g u la tio n a n d p la c e d
in the in stru c tio n s for co m p letin g th e
re p o rtin g fo rm { appendix A to th e
regulation).
Financial institution. C u rren t
§ 203.2(e) d e fin e s th e in s titu tio n s su b je c t
to R eg u latio n C a s “fin a n c ia l
i n s t i t u t i o n ^ " w h ic h in c lu d e d e p o sito ry
in s titu tio n s (b an k s, sa v in g s a n d lo a n
a sso c ia tio n s , and c re d it u n io n s a n d th e ir
m a jo rity -o w n e d su b sid ia rie s), m ortgage
b an k in g s u b s id ia rie s o f b a n k a n d
sa v in g s a n d lo a n hold in g co m p an ie s,
a n d sav in g s a n d lo a n s e rv ic e
c o rp o ratio n s.
In th e proposed? re v isio n to §?203.2(e),.
the term “fin a n c ia l in stitu tio n ” is
d efin ed to refer to a h in stitu tio n s
co v e re d b y th e reg u la tio n . In c lu d e d in
the d efin itio n a re b an k s, sa v in g s a n d
lo a n a sso cia tio n s, a n d c r e d it u n io n s a s
w e ll a s “m o rtg a g e le a d in g in stitu tio n s"
(a s d isc u sse d below , s u b sid ia rie s of
d e p o s ito ry in s titu tio n s w o u ld fall in th e
la tte r ca teg o ry ).
U n d er th e c u rre n t reg u la tio n ,
d ep o sito ry in stitu tio n s su c h a s b a n k s
a n d sa v in g s a s s o c ia tio n s a re c o v e re d
p ro v id e d th e y o rig in a te “fe d e ra lly
r e la te d m ortgages- Loans." d e fin e d in
c u rre n t § 203.2(d). T h e te rm “fe d e ra lly
re la te d m o rtg ag e lo a n " is re le v a n t o n ly
for d eterm in in g w h e th e r a d e p o sito ry
in stitu tio n is c o v e re d b y HMDA.
P ro p o se d & 203.2(e)(1) co m b in es, in
su b sta n c e , the d efin itio n o f "fin a n c ia l
in stitu tio n " cu rren tly c o n ta in e d in
§ 203.2(e)(ll(i) a n d th e c u rre n t d efin itio n
of “fed e ra lly re la te d m ortgage lo a n .”
T he B oard h a s found th a t h av in g
s e p a ra te defifwtiorrs c a u s e s co n fu sio n
reg a rd in g coverage* A cc o rd in g ly , b an k s,
sa v in g s a s s o c ia tio n s , and. c re d it u n io n s
a re d e fin e d a s fin a n c ia l in stitu tio n s
u n d e r § 2Q32J(e)(l) if th e y w rite hom ep u rc h a s e lo a n s a n d a r e fe d e ra lly in su re d
or re g u la te d , o r if th e y w rite hom ep u rc h a se Loans th a t a r e fe d e ra lly
in su re d o r su p p le m e n te d or w ill b e so ld
to FN M A . G N M A, or FHLM C. T h e
B o ard se e k s co m m en t o n w h e th e r th is
d efin itio n co u ld b e sim p lified by
p ro v id in g m e re ly th a t fe d e ra lly in su re d
in stitu tio n s m a k in g h o m e -p u rch a se
lo a n s a re co v ered .
In se c tio n 1211(d) o f th e FIRREA
a m en d m e n ts, th e C o n g ress e x p a n d e d
th e c o v e ra g e of H M D A to in c lu d e “o th e r
le n d in g in stitu tio n s." A n “o th e r le n d in g
in s titu tio n " is d e fin e d m se c tio n
1211(e)(2) of th e arct a s “a n y p e rso n
en g a g ed fo r p ro fit in th e b u s in e s s o f
m o rtg ag e fen d in g ." T h e p ro p o se d
re g u la tio n re fe rs to th e se e n titie s a s
“m o rtg a g e le n d in g in stitu tio n s" in
§ 203.2(e)(2); th e term a lso co v e rs
mortgage- b a n k in g su b sid ia rie s o f b a n k
a n d sa v in g s a n d lo a n hold in g c o m p an ie s
a n d s a v in g s a n d lo a n se rv ic e
c o rp o ra tio n s (an d , a s d isc u sse d b elo w ,
m o rtg ag e b a n k in g s u b s id ia rie s o f
d ep o sito ry institutions,).
A n en tity is a “m o rtg ag e lending;
in stitu tio n ” u n d e r p ro p o se d §■200.2(e)(2)
if, in th e preceding, c a le n d a r y e a r, 10
p e rc e n t or m o re o f its lo a n v o lu m e
c o n siste d o f h o m e p u rc h a s e lo a n s . T h is
th re sh o ld m irro rs th e rale, c u rre n tly u se d
in § 203-2(e)(ll(ii) to- d e fin e w h e th e r a
h o ld in g co m p an y s u b sid ia ry is a
“m o rtg ag e b a n k in g " s u b sid ia ry .
U n d er c u rre n t 1203.2(e)(2), m a jo rity o w n e d su b sid ia rie s o f b a n k s a n d
sa v in g s a sso c ia tio n s a re tre a te d a s p a rt
o f th e ir p a re n t in stitu tio n . A cco rd in g ly ,
d a ta su b m itte d b y th e p a re n t in s titu tio n
c u rre n tly in clu d e t h a t o f th e su b sid ia ry
a n d a re ite m iz e d b y ce n su s tra c t o n ly if
th e lo a n s re la te to p ro p e rty in a n M SA
w h e re th e p a re n t h a s a hom e o r b ra n c h
office. In li^ h to f th e clefinition o f “o th e r
le n d in g in stitu tio n " c o n ta in e d in th e
FIRREA a m en d m e n ts, th e B o a rd
b e lie v e s th is tre a tm e n t rs no lo n g e r
a p p ro p ria te .
G iv e n th e s ta tu te ’s fiv e-o r-m o re-lo an
ru le for b ra n c h offices, d is c u s s e d a b o v e ,
to c o n tin u e th e c u rre n t rep o rtin g
a rra n g e m e n t for su b sid ia rie s o f
d e p o s ito ry in stitu tio n s w o u ld m a g n ify
th e d iffe ren ce in tre a tm e n t a c c o rd e d to
su b sid ia rie s b a s e d cm c o rp o ra te
s tru c tu re . A h o ld in g co m p an y su b sid ia ry
w o u ld b e re q u ire d to p ro v id e c e n su s
tr a c t in fo rm atio n fo r Loans in M S A s
w h e re it to o k a p p lic a tio n s far,
o rig in a te d , o r p u rc h a s e d fiv e o r m o re
m o rtg ag e le a n s , w h ile th e d a ta o f b a n k
su b sid ia rie s, for ex a m p le , w o u ld c o n ta in
th is in fo rm atio n o n ly fo r M S A s in w h ich
th e p a r e n t in stitu tio n h a s a p h y sic a l
b ra n c h Location. The; B o ard b e lie v e s th a t
a d iffe re n c e to c o rp o ra te s tru c tu re d o e s
n o t ju stify su c h m a rk e d ly d iffe ren t
resu lts.
Consequently, the Board proposes to
treat mortgage lending subsidiaries of
41257
depository institutions a s independent
corporate entities under the definition of
“other lending institution.” As such, they
will comply with HMDA in their own
right a s mortgage lending institutions if
they meet the 10-percent threshold,
under proposed § 2032.(e)(2).
H ow e improvement and home
purchase loans. Institutions are required
to report data regarding home
improvement and home purchase loans.
The definitions of these terms are
incorporated in proposed § 203.2(f) and
§ 203.2(g). W ith the added definition of
“dwelling" in proposed § 203.2(d), the
parenthetical references to
condominiums, cooperatives, and
mobile and manufactured homes have
been deleted.
Metropolitan statistical area.
Institutions are required to specify the
location of the property to which a loan
relates if the property is located in a
Metropolitan Statistical A rea (MSA) in
which the institution has a home or a
branch office. The definition of MSA in
proposed § 203-2(j) is unchanged.
State. The definition of “state,”
currently contained in § 203.2(i); has
been eliminated a s unnecessary in light
of its inclusion in the proposed
definition of “dwelling,”
Section 203.3—Exem pt Institutions
Section 203.3 excludes from the
coverage of the regulation small
institutions!, institutions th at d o not haveoffices to MSAs, and institutions that
have been granted an exemption
because they are subject to a similar
state law. A new § 2033(e)(2) has been
added to provide that institutions which
become subject to HMDA during the
course of a given year—ior example, by
exceeding the 10 percent threshold for
coverage a s a "mortgage lending
institution”—shall report data beginning
w ith the following calendar year.
Current &200.2(c)(2) h as been
redesignated §• 2033(c)(3).
Section 203.4—Comnifation o f Loan
Data
Section 209.4 sets forth the
requirements for reporting of loan data
and has been revised extensively. The
FIRREA amendments require
institutions to report data on all foam
applications, not merely on originations
and purchases of loans a s is currently
the case. The FIRREA amendments also
require repotting of data: of the Face, sex,
and income of applicants and
borrowers, to addition to the geographic
information diet is currently required to
view of thas increase in the d ata to be
reposted, the Board believes the crosstabulated reposting format currently to
41258
Federal Register /
Vol. 54, No. 1193 / Friday, October
use is impractical. The Board is
proposing, instead, a register form of
reporting.
•; "Currently, institutions report data in a
summary format, cross-tabulated by
census tract and type of loan, and reflect
the number and dollar amount of loans
in five loan categories. For loans in
MSAs where the institution has a home
or a branch office, these data are
subtotalled separately for each census
tract in which loans are originated or
purchased. If this summary format were
to be rented, multiple reporting forms
would be needed to capture all the data
called for by the FIRREA amendments.
Institutions would use one form to
report loan originations, applications
denied, and applications withdrawn
within each census tract for the five loan
categories. Another form would be
required for data on loan purchases. Still
another would identify the type of
purchaser of loans that are sold. Finally,
three sets of multiple forms—one page
for each of the five loan categories—
would be required for cross-tabulating
the data on race, sex, and income with
type of loan.
In rev iew in g th e o p tio n s, th e B oard
h a s d eterm in e d th a t co n tin u in g th e
c ro ss-ta b u la te d form o f rep o rtin g
cu rren tly in u se w o u ld b e ex tre m ely
confusing a n d b u rd e n so m e for rep o rtin g
in stitu tio n s. In th e C o n fere n ce R ep o rt to
th e FIRREA am e n d m e n ts, th e C o n g ress
g av e th e B oard flex ib ility to e s ta b lish a
rep o rtin g fo rm a t th a t w ill m ax im ize th e
u tility o f th e d a ta w h ile m inim izing, to
th e e x te n t p o ssib le, th e rep o rtin g b u rd e n
for c o v e red in stitu tio n s. (H.R. Rep. No.
10 1 -2 2 2 ,101st Cong., 1 st S ess. 459).
A ccordingly, th e B o ard is p ro p o sin g in
§ 203.4 th a t in stitu tio n s re p o rt b y m e a n s
o f a lo a n /a p p lic a tio n reg ister, usin g a
form like th a t se t fo rth in a p p e n d ix A of
th e p ro p o se d reg u la tio n . U n d e r th is
arran g e m en t, in stitu tio n s w o u ld re c o rd
d a ta on a lo a n -b y -lo a n a n d a p p lica tio n b y -ap p licatio n b a s is a n d w o u ld su b m it
th e co m p leted re g iste r to th e ir
su p e rv iso ry agency. T h e FFIEC w o u ld
p ro d u ce in d iv id u al re p o rts for e a c h
in stitu tio n a n d ag g reg ate ta b le s for e a c h
M SA using th e d a ta from th e re g iste rs
(see th e d isc u ssio n s b e lo w u n d e r
“A g gregated d a ta ”).
T he B oard b e lie v e s th a t th e re g iste r
a p p ro a c h p re se n ts a n u m b e r o f
a d v a n ta g e s. In stitu tio n s w o u ld co llect
th e d e ta ile d in fo rm atio n c a lle d for b y
th e FIRREA am en d m e n ts, b u t w o u ld n o t
h a v e to u n d e rta k e th e a d d itio n a l ste p of
p rep a rin g c ro ss-ta b u la te d H M D A
re p o rts. T h e B o ard b e lie v e s th a t a
re g iste r is th e re fo re e a s ie r a n d le ss
co stly for in stitu tio n s to co m p lete. In
a d d itio n , m a n y in stitu tio n s a re a lre a d y
0, 19B9 /
fa m ilia r w ith th e re g iste r fo rm a t sin ce
th e y h a v e co m p lie d w ith sim ila r
re q u ire m e n ts o f th e O TS, th e OCC, a n d
th e FDIC. T h e se a g e n c ie s a re
u n d e rta k in g to re v ie w th e ir cu rre n t
req u ire m e n ts to d e te rm in e th e e x te n t to
w h ic h th e re g iste r ca lle d for b y
R eg u latio n C co u ld se rv e a s a s u b stitu te
fo r th e o n e s th e y n o w req u ire. A n d
w h ile th e su p e rv iso ry a g e n cies w o u ld
in c u r sig n ific an t a d d e d c o sts in en terin g
th e in c re a se d a m o u n t o f d a ta th a t w o u ld
b e su b m itte d , th e b u rd e n on c o v e re d
in stitu tio n s w o u ld b e e a se d . T he
rep o rtin g o f ra w d a ta a lso w o u ld p erm it
th e FFIEC to p ro d u c e re p o rts b a s e d on a
v a rie ty o f d iffe re n t b re a k d o w n s o f th e
d a ta . T h e sp e cific req u ire m e n ts fo r th e
re g iste r a n d th e su m m ary ta b le s th a t th e
FFIEC w o u ld p ro d u c e a re d isc u sse d
b e lo w in th e se c tio n s on a p p e n d ix A
a n d "A g g reg a ted d a ta .”
P ro p o se d § 203.4(a) c o n ta in s, am ong
o th e r things, a re q u ire m e n t th a t
in stitu tio n s co llec t d a ta on th e ra c e a n d
se x of a p p lic a n ts, a n d p ro p o se d
§ 203.4(b)(1) te lls h o w ra c e a n d se x
in fo rm atio n m a y b e co llected .
S ectio n 203.13 o f th e B o a rd ’s .
R eg u latio n B (E qual C red it O p p o rtu n ity )
re q u ire s th a t d a ta a b o u t ra c e or n a tio n a l
origin a n d se x b e c o lle c te d on
a p p lic a tio n s for lo a n s to fin a n c e th e
p u rc h a se of a p rin c ip a l re sid e n c e ;
§ 202.5(d) o f R eg u latio n B g e n e ra lly
p ro h ib its le n d e rs from re q u e stin g it in
o th e r c irc u m sta n c e s. O n e e x c ep tio n ,
u n d e r § 202.5(b)(2), is th a t le n d e rs a re
p e rm itte d to re q u e st th e in fo rm atio n if
th e y a re re q u ire d to do so b y a F e d e ra l
reg u latio n . W ith th e a d d itio n o f
§ 203.4(b)(1) to R e g u latio n C, le n d e rs
m u st co llect th is in fo rm atio n fo r ho m e
im p ro v e m en t lo a n s a n d h o m e p u rc h a se
lo a n s on p ro p e rty n o t in te n d e d a s th e
b o rro w e r’s p rin c ip a l re sid e n c e — lo a n s
n o t co v e red b y § 202.13— w ith o u t
v io latin g R eg u latio n B. A form a n d
in stru c tio n s for co llectin g d a ta on ra c e
a n d se x is c o n ta in e d in a p p e n d ix B of
th e p ro p o se d reg u latio n .
T h e FIRREA a m e n d m e n ts req u ire th e
rep o rtin g of d a ta on ra c e , sex, a n d
incom e for a p p lic a tio n s a n d o rig in atio n s
b u t n o t p u rc h a se d lo a n s. D esp o sito ry
in stitu tio n s w ith a s s e ts o f $30 m illion o r *
le ss a re n o t re q u ire d to re p o rt this
in fo rm atio n . P ro p o se d § 203.4(b)(2)
p ro v id e s fo r o p tio n a l rep o rtin g of th e se
d a ta for lo a n p u rc h a se s a n d by
d e p o sito ry in stitu tio n s w ith a s s e ts of $30
m illion o r less. U n d e r th e FIRREA
am en d m e n ts, m ortgage len d in g
in stitu tio n s do n o t q u alify for th e $30
m illion e x c e p tio n a n d h e n c e m u st
in c lu d e d a ta on rac e, sex, a n d incom e
for all a p p lic a tio n s a n d lo a n
Proposed Rules
o rig in a tio n s, th ough n o t for p u rc h a se d
lo a n s.
••
IJ
A n e w § 203.4(c) h a s b e e n a d d e d to
im p lem e n t se c tio n 1211(b) o f th e
FIRREA a m en d m e n ts, w h ich p erm its
in stitu tio n s, a t th e ir o p tio n, to re p o rt
re a s o n s for th e ir lo a n d ec isio n s.
P ro p o se d § 203.4(c) a u th o riz e s o p tio n a l
re p o rtin g o f su c h d a ta . C u rren t
§ 203.4(c), rela tin g to e x c lu d e d d a ta , h a s
b e e n re d e sig n a te d § 203.4(d).
P ro p o se d § 203.4(d) re la te s to d a ta
th a t is n o t to b e rep o rted . T w o c h a n g es
h a v e b e e n m a d e to th is p rovision. First,
th e B o ard p ro p o se s to elim in ate th e rule
th a t m o rtg ag e b a n k in g s u b sid ia rie s of,
b a n k a n d sa v in g s arid lo a n holding
co m p a n ie s a re n o t to re p o rt FH A lo a n s,
cu rre n tly c o n ta in e d in § 203.4(c)(2). D ata
on F H A lo a n s b y th e se in stitu tio n s w a s
o rig in ally c o lle c te d b y HUD o u tsid e of
H M D A. N o w th a t HUD is a d irec t
p a rtic ip a n t in th e im p le m e n ta tio n of
H M D A, it a p p e a rs a p p ro p ria te to collect
a n d d isc lo se th e se d a ta on th e H M D A
re p o rts. D ropping th e c u rre n t p ro v isio n
w ill a lso re su lt in a un ifo rm rule for
re p o rtin g o f th e se lo a n s b y all
in stitu tio n s a n d av o id co nfusion.
O th e rw ise , d a ta w o u ld b e in co m p lete a s
to len d in g b y n o n d e p o sito ry in stitu tio n s,
a re su lt th a t is in c o n siste n t w ith the
c o n g re ssio n a l in te n t re fle c te d in th e
FIRREA a m e n d m e n ts.
T he e x c lu sio n fo r refin an cin g s
b e tw e e n th e o riginal p a rtie s, cu rren tly
c o n ta in e d in § 203.4(c)(l)(iii), h a s b ee n
d e le te d . T h e B o ard p ro p o se s th a t
refin an c in g s of ho m e p u rc h a se lo a n s b e
tre a te d a s h o m e p u rc h a se o r hom e
im p ro v e m en t lo an s, a s a p p lica b le , ev e n
w h e n th e y in v o lv e th e o riginal b o rro w e r
a n d o rig in al le n d er. T h e B oard h a s
fo u n d th a t th e e x c lu sio n of refin an cin g s
b e tw e e n o riginal p a rtie s h a s b e e n a
so u rce o f confusion. W h ile refin an cin g s
b e tw e e n o riginal p a rtie s m a y n o t
te c h n ic a lly re su lt in n e w m o n ey being
d isb u rse d in to th e com m unity, th e B oard
b e lie v e s th a t th e se tra n s a c tio n s do
p ro v id e a n in d ic a tio n of a n in stitu tio n ’s
w illin g n ess to m e e t c re d it n eed .
A ccordingly, th e c u rre n t e x c lu sio n h a s
b e e n d e le te d a n d refin an cin g s b e tw e e n
th e o rig in al p a rtie s, if th e y o th e rw ise
m e e t th e d efin itio n o f h o m e p u rc h a se or
ho m e im p ro v e m en t lo a n s, w o u ld b e
re p o rte d in full u n d e r th e p ro p o se d
reg u latio n .
Section 203.5—Disclosure and Reporting
S ectio n 203.5 se ts th e ru les fo r m aking
lo a n d a ta a v a ila b le a t offices o f a n
in stitu tio n a n d rep o rtin g th e d a ta to
su p e rv iso ry ag e n cies. T h e B oard
p ro p o se s to re q u ire th a t in stitu tio n s
su b m it re g iste rs for a g iven c a le n d a r
y e a r to th e ir su p e rv iso ry ag en cy b y the
41259
Federal Register / VoL 54, Nos. 193 / Friday, October 0* 198ft / Proposed Rules
follow ing F eb ru ary 15* C u rren tly ,
d isc lo su re sta te m e n ts a re d u e b y M arch
31. A n e a rlie r rep o rtin g d a te is
n e c e s sa ry to en su re th a t d isc lo su re
s ta te m e n ts bait b e p re p a re d b y th e
FFIEC in a tim ely fash io n . T h e B oard
also b eliev e s a n e a rlie r d a te is
re a s o n a b le given th a t m in im al
p ro cessin g on th e p a rt o f in stitu tio n s
w ill b e req u ired . A lso, th e re g iste r
fo rm at w ill n o t req u ire in stitu tio n s to
c ro ss-ta b u la te lo a n a n d a p p lic a tio n
in fo rm atio n for the e n tire c a le n d e a r y e a r
in o rd e r to p re p a re th e ir HM D A
*
su b m issio n s, as is p re se n tly th e case.
S ectio n 203.5 o f th e p ro p o se d
reg u latio n also p ro v id e s th a t in stitu tio n s
m ak e a v a ila b le d isc lo su re s ta te m e n ts
w ith in 15 b u sin e ss d a y s a fte r receiv in g
them from th e FFIEC. A s d isc u sse d
below , th e FFIEC w ill b e p ro d u cin g th e
d isc lo su re sta te m e n ts from th e re g iste rs
th a t a re su b m itte d a n d w ill p ro v id e
th o se s ta te m e n ts to th e rep o rtin g
in stitu tio n s. T he B o ard c o n sid e re d
w h e th e r the reg isters th e m se lv e s sh o u ld
b e d isc lo se d to th e public. C u rren tly ,
th o se ag en cies th a t req u ire re g iste rs do
n o t m ak e the reg iste rs pu b lic, d u e to
p riv ac y a n d o th e r co n c ern s, a n d th e
B oard p ro p o se s to fo llo w th is a p p ro a c h
in R eg ulation C.
O th e r p ro v isio n s in § 203.5, su c h a s
th o se co n cern in g n o tic e s a n d tim es of
av a ila b ility , a re un ch a n g ed .
Section 203.6—Enforcement
S ectio n 203.6 s e ts fo rth ru le s rela tin g
to a d m in istra tiv e e n fo rc e m e n t a n d b o n a
fid e errors. T h e p ro v isio n s o f th is
se ctio n a re e s se n tia lly u n c h a n g ed .
Appendix A —Forms and Instructions
A p p en d ix A c o n ta in s th e lo a n /
ap p lic a tio n reg ister a n d in stru c tio n s for
its com pletion. In stitu tio n s m u st u se th e
p re sc rib e d fo rm at b u t a re n o t re q u ire d
to u se th e form itself. A n in stitu tio n
m ay, for ex am p le, ch o o se to p ro d u ce a
co m p u ter p rin to u t o f its re g iste r in ste a d .
D ue to the volum e o f d a ta being
su b m itted , th e B oard en c o u ra g e s
co v e re d in stitu tio n s to d ev e lo p
co m p u ter p ro g ram s th a t w ill e n a b le
them to su b m it th e d a ta in m ach in ere a d a b le form at. T he B o ard p la n s to
p u b lish s ta n d a rd s to fa c ilita te e le c tro n ic
su b m issio n w h e n it p u b lish e s the
am e n d e d reg u latio n in fin al form.
The following is a summary of the
information that would be provided on
the register and the number of
characters to be allotted for each data
item. The instructions contained in
proposed Appendix A provide guidance
on the requirements for the register and
answ er more detailed questions. *
Application or loan number. A-unique
number identifying the application or
transaction. For FHA loans, it must be
the FHA case number; otherwise any
number the institution chooses to use.
reporting fprm, in appendix A.
Independent mortgage lending
institutions will submit their registers to
HUD while subsidiaries of depository
institutions or theirfiolding companies
will submit their registers to the FDIC.
Federal Reserve, or OTS.
(25 c h a ra c te rs)
P ro p o se d a p p e n d ix B c o n ta in s a form
th a t c a n b e u se d t<J co llec t d a ta on ra c e
a n d sex, a n d in stru c tio n s f o r its use. It is
id e n tic a l to th e form p re sc rib e d in
R e g u latio n B for d a ta co llec tio n re la te d
to a p p lic a tio n s for ho m e p u rc h a se lo an s,
e x c e p t for th e a d d e d re fe re n c e to
Date o f application. For applications,
the date the application was submitted
by year, month, and day. (6 characters)
Application or loan information.
C o d e s in d ic a tin g th e ty p e o f lo an , th e
p u rp o se o f th e lo an , a n d w h e th e r the
p ro p e rty is o w n er-o c cu p ied , p lu s th e
a m o u n t of th e lo a n (or th e am o u n t
a p p lie d for) in th o u s a n d s o f d o lla rs. (1
c h a ra c te r e a c h for type, p u rp o se, a n d
o c c u p a n c y sta tu s; 5 c h a ra c te rs for
am o u n t)
’
Action taken and date. A co d e
in d ic atin g w h e th e r th e e n try re la te s to
a n ap p ro v e d , re je c te d , o r w ith d ra w n
a p p lica tio n , o r to a lo a n p u rc h a se . A lso,
th e d a te th e a c tio n o cc u rre d . (1
c h a ra c te r for a c tio n tak en ; 4 c h a ra c te rs
for m o n th a n d day)
Location o f the property. F o r lo a n s
w ritte n on p ro p e rty in M S A s w h e re th e
in stitu tio n h a s a ho m e o r b ra n c h office,
th e lo c a tio n o f th e p ro p erty . (4
c h a ra c te rs for M SA, 2 for s ta te , 3 for
co u n ty , a n d 6 fo r c e n su s trac t)
Applicant characteristics. A co d e '
in d ic atin g th e ra c e a n d se x of th e
a p p lic a n t a n d a n y co a p p lic a n t, a n d th e
in co m e re lie d u p o n in th o u sa n d s o f
d o lla rs. T h is se c tio n n e e d n o t b e ‘
c o m p le te d (by a n y in stitu tio n ) fo r lo a n
p u rc h a se s; a n d it n e e d n o t b e co m p le te d
b y a n y b an k , sa v in g s a n d lo a n o r c re d it
u n io n w ith $30 m illion o r le ss in a s s e ts .:
(1 c h a ra c te r e a c h fo r ra c e a n d se x o f
a p p lic a n t a n d of c o a p p lic an t; 4
c h a ra c te rs for in co m e)
HMDA.
;
(3)
Aggregated data. T h e FFIEC (w ith
su p p o rt fro m e a c h o f th e fe d e ra l
re g u la to rs w ith H M D A re sp o n sib ilities)
ag g re g ate s th e lo a n d a ta re c e iv e d from
all re p o rtin g in stitu tio n s in e a c h M SA.
T h e FFIEC a lso p ro d u c e s ta b le s for e a c h
M SA sh o w in g le n d in g p a tte rn s
ac c o rd in g to d em o g ra p h ic
c h a ra c te ristic s su c h a s in co m e level a n d age o f h o u sin g sto ck . T h e se ta b les,
to g e th er w ith d isc lo su re sta te m e n ts of
th e in d iv id u a l in stitu tio n s, a re s e n t to
c e n tra l d a ta d e p o s ito rie s in e a c h M SA,
w h e re th e y a re a v a ila b le to th e public.
U n d e r th e B o a rd ’s p ro p o sal, th e FFIEC
w o u ld g e n e ra te d isc lo su re sta te m e n ts
from th e re g iste r d a ta su b m itte d b y
in stitu tio n s. T h e se sta te m e n ts (in the
form o f su m m ary ta b le s ) w o u ld be
p ro v id e d to th e in stitu tio n s, w h ich
w o u ld in tu rn m a k e th e m a v a ila b le to
th e pu b lic. T h e FFIEC e x p e c ts th a t th e se
s ta te m e n ts w o u ld b e p ro v id e d to
in stitu tio n s b y O c to b e r follow ing
su b m issio n o f th e re g iste r d a ta o n
F e b ru a ry 15. T h is tim e ta b le is d ic ta te d
b y th e larg e v o lu m e of d a ta to b e
p ro c e sse d . T h e su p e rv iso ry ag en cies
a n d th e FFIEC w ill ta k e a p p ro p ria te
ste p s, h o w ev e r, to e n s u re th a t b o th the
Type o f purchaser. For loans that are
in d iv id u a l d isc lo su re s ta te m e n ts a n d the
sold, a code indicating the class of
ag g reg ate ta b le s b e c o m e a v a ila b le to the
purchaser. (1 character)
p u b lic a s e a rly a s p o ssib le. R eporting
Reason for denial. U p to tw o co d e s
in stitu tio n s w ill b e en c o u rag ed , for
in d ic a tin g th e re a s o n s for d en ial. T h is
ex am p le, to su b m it d a ta in m achinein fo rm atio n is o p tio n a l. (2 c h a ra c te rs)
re a d a b le form to fa c ilita te e a rlie r
T h e B o ard is in te re s te d in receiv in g
a v a ila b ility .
p u b lic co m m en t on w h e th e r th e n u m b e r
T h e FFIEC p la n s to p ro d u ce su m m ary
o f re a s o n s for d e n ia l sh o u ld b e
ta b le s a n n u a lly for e a c h in stitu tio n , to
e x p a n d e d to b e m ore specific, p e rh a p s
sh o w le n d in g a c tiv ity in e a c h M SA for
alo n g th e lin es o f th e r e a s o n s id e n tifie d
w
h ich th e in stitu tio n re p o rts d a ta . In
in th e m o d el form s for a d v e rse a c tio n
a d d itio n , a g g re g ate ta b le s b a s e d on lo a n
c o n ta in e d in R eg u latio n B.
d a ta from a ll c o v e re d in stitu tio n s w o u ld
Appendix B—Form and Instructions for
b e p re p a re d fo r e a c h M SA a n d se n t to
Data Collection on Race and Sex > ,
c e n tra l d a ta d ep o sito rie s. T h e B oard
A p p e n d ix B of th e c u rre n t re g u la tio n , e m p h a siz e s th a t th e se ta b le s w o u ld be
p re p a re d b y th e FFIEC from reg ister
p re sc rib e s th e su p e rv iso ry a g e n cies to
d a ta su b m itte d , a n d n o t b y in d iv id u al r;
w h ic h in stitu tio n s m u st su b m it th e ir
in stitu tio n s.
re p o rts. T h is m a te ria l h a s b e e n
B IL L IN G CO D E 6210-01-M
in c o rp o ra te d in to th e in stru c tio n s to th e
41260
(Loans made or applied for in 19_)
1
Name of Institution:_____________________________________________
MSA:.
S ectio n I - L o a n s o n p r o p e rty lo c a te d In M S A /P M S A w h e re In s titu tio n h a s a h o m e o r b r a n c h office
L o a n s o n l-to -4 F a m ily D w ellings
L o a n s on M u ltifa m ily
D w ellin g s fo r 5 o r M o re
F a m ilie s (h o m e p u rc h a s e
H o m e I m p ro v e m e n t L o a n s a n d h o m e im p ro v e m e n t)
H o m e P u rc h a s e L o a n s
CENSUS TRA CT
AND
D ISPO SIT IO N
FHA, Fm H A , and V A
C onventional
A
B
A m ount
(SOOO's)
No. o f
Loans
N o. o f
L oans
>
C
No. o f
Loans
A m ount
(SOOO's)
N o noccupant L oans on
l- to - 4 F a m ily D w ellings
fro m c o lu m n s A , B a n d C
D
A m ount
(SOOO's)
N o. o f
L oans
A m ount
. (SOOO's)
E
No. of
Loans
A m ount
(SOOO's)
C en su s tract:
Loans
A p p licatio n s den ied
A p p licatio n s w ithdraw n
;
■
. /
A.. w
••
>
C en su s tract:
’
L oans
A pp licatio n s den ied
A p p licatio n s w ithdraw n
■
"
x1
'
■
' ' .. ■ ■
v.,
'
T o b e p ro d u c e d b y F f lE C
,
/
* * i ' , ** *
■
Loans
A p p licatio n s den ied
A p p licatio n s w ithdraw n
/
•: . '.;v - v
''
. oS f l T <T I T luI f i T1 <a4H
u iI a
v
i
f"
C en su s tract:
C en su s tract:
.
§
%• ,
■v-:;?- x -:;
':-'v
•* '
•\
■ 'v
’c t
is
■: , ;
/
Loans
A p p licatio n s d en ied
A p p licatio n s w ithdraw n
M SA /PM SA T O T A L
S ectio n 2 - L o a n s o n p r o p e r ty n o t lo cated In M S A s/P M S A s w h e re I n s titu tio n h a s h o m e o r b r a n c h o ffices
Loans
A pp licatio n s d en ied
A pplications w ithdraw n
*
Federal Register / Vol. 54, No. 193 / Friday, October 6,1989 / Proposed Rules
Loan Applications and Originations
Name o f Institution:._______________________________________________ MSA:
S e c tio n 1 - L o a n s o n p ro p e rty lo cated In M S A /P M S A w h e re I n s titu tio n h a s a h o m e o r b r a n c h o ffice
L o a n s o n l-to -4 F a m ily D w elling's
L o a n s o n M u ltifa m ily
D w ellings fo r 5 o r M o re
F a m ilie s (h o m e p u r c h a s e
H o m e Im p ro v e m e n t L o a n s a n d h o m e im p ro v e m e n t)
H o m e P u rc h a s e L o a n s
FH A , F m H A , and V A
C E N SU S T R A C T
(in num erical order)
C onventional
A
N o. o f
Loans
B
A m ount
(SOOO's)
N o. o f
Loans
C
A m ount
(SOOO’s)
N o. o f
L oans
N o n o c c u p a n t L o a n s on
l- to - 4 F am ily D w ellings
fro m c o lu m n s A , B a n d C
D
A m ount
(SOOO’s)
N o. o f
L oans
E
A m ount
(SOOO’s)
N o. o f
Loans
A m ount
(SOOO’s)
Sam ple Table 2
To be produced by FH EC
. . .....
.
..
v
M S A /P M S A T O T A L
S e c tio n 2 •• L o a n s o n p ro p e rty n o t located in M S A s/P M S A s w h e re in s titu tio n h a s h o m e o r b r a n c h o ffices
/.
Federal Register / Vol. 54, No. 193 / Friday, October 0,1989 / Proposed Rules
v
41261
Loan Purchases
(Loans purchased in 19__)
41262
Name o f Institution:
N u m b er o f L oans
T Y PE O F PU RC H A SER
F ederal N ational M o rtg ag e A ssociation
G o v ern m en t N ational M ortgage A ssociation
F ederal H om e L oan M o rtgage C orporation
y- ;
:v:
Farm er's H om e A dm inistration
..
* %
O th er Purchasers
• .... -v.
■:■■■■ • :
,*
L ife In surance C o m p an y
■
7bbeproducedby FFIEC
C o m m ercial B ank
Savings B ank o r S avings and L oan A ssociation
Sample Table 3
w-
v >, S U,
*'
y
•r
.:
, -s'
c \
•,
' •,;. \ y r;, '
• >• • • • •
•• ,
\ :
T otal D ollar A m ount
(T housands)
Federal Register / Vol. 54, No. 193 / Friday, October 6,1989 / Proposed Rules
LoansSold
(Loans sold in 19__)
Conventional Home Purchase Loans
Financial Institution:
,
MSA:
Applications
Received
A P P L IC A N T C H A R A C TER ISTIC S
(# )
IXMM
Applications
Denied
Granted
(% )
(#)
($ )
(S)
(% )
(#)
*
Race of Applicants
A m erican Indian/A laskan N ative
A sian/Pacific Islander
B lack
H ispanic
W hite
O th er
Joint
«rv
:
•
• ' \ .■■>•' ■'.V;
V~V.A<V
; *✓ .
»•'
s
>'
:;•
W >
v^ 4 *+W#*-v* •
* v*
vw
v •:*
To be produced by FF1EC
- '
x» f
' •-■
Male
Female
1
.
'
Jo in t
'
SfliQQQ.flrmorc____________________________________
».....
v fe i' / >
.
2 0 0 0 0 29.999
30DOO-49.999
*&&>:• A y \
Sample Table
4
'<
t ’>:••
Sex of Applicants
Income of Applicants
>?>•.;
•• : •
'
.
' :
-
_.''i: .
•
••
2 -^.1 .
.
Applications
Withdrawn
f$)
(#)
(<*>)
($)
Federal Register / VoL 64, No. 193 / Friday, October 6,1989 / Proposed Rules
DispositionofLoan Applications
Conventional Home Purchase Loans
. . , .
Financial Institution: ________________________________
MSA:
(#)
($)
(#)
(%)
Applications
Withdrawn
Applications
Denied
Loans
Granted
Applications
Received
IN C O M E A N D RA C E
($)
(#)
(%)
(#)
(5)
• i. .
(%)
($)
0-19,999
-
A m erican In dian/A laskan N ative
A sia n /P a cific Islander
B lack
H ispanic
W hite
O th er
Jo in t
.
...
.*.
.
20,000-29,999
^
A m erican Indian /A laskan N ative
A sia n /P a cific Islander
B lack
H ispanic
W hite
O th er
Jo in t
' ' " /•'*
$J-
30,000-49,999
A m erican In dian/A laskan N ative
A sia n /P a cific Islander
B lack
H ispanic
W hite
O th er
Jo in t
%
W
/
V
-
'' ' * •: •• '-s
o am ple labler>
§p N"%
M
H, %" /'
'^rv<
To be produced by FFIEC
' ;v-.' t
i*,■ .
- >.
.. : . • -x•>• •
> -- v -
H
-
'
50,000 or more
-
A m erican In d ian /A laskan N atjvf
A sia n /P a cific Islander
B lack
H ispanic
W h ite
O th e r
--------lu ia t ,
•
•
i- ■.
■■
-----------------------------
Federal Register / Vol. 54, No. 193 / Friday, October 6,1989 / Proposed Rules
DispositionofLoan Applications
................
Conventional Home Purchase Loans
Financial Institution:
_____________________________1
INCOMEANDSEX
.
MSA:
Applications
Received
Loans
Granted
(S)
<#>
(#)
<*>)
Applications
Denied
<s>
(#)
:---- ----
*
(%>
App1lestIons
Withdrawn
(S)
<#>
(S)
(%>
,
™••
•-19,999
Male
Female
Vol. 54, No.
___ Joint___________________________
20,000-29,999
«
ifiM
'
-h:
f*jg.
...... - ■
30,000-49,999
Tb be produced by PFDSC
: /-
J
;•
.
Male
_____Female____________________
.:v .
....
_
- Joint
-
Male
Female
Joint
«■,
— v...
193 / Friday, October 6,1989 / Proposed Rules
«
Male
Female
Joint
50^)00 or more
Federal Register /
DispositionofLoan Applications
DispositionofLoan Applications
Conventional Home Purchase Loans
Financial Institution:_______________________________________
(% )
<#)
($)
(# )
A p p lication s
D enied
L oans
G ran ted
A p p lication s
R eceived
T Y PE O F CEN SU S TRACT
MSA:
■
(# )
($)
A pplications
W ithdraw n
(S)
(% )
(% )
_<#)
($ )
-
R acial C om p osition
L ess than 15% m inority
15-29% m in o rity
30-49% m in o rity
50-64% m in o ritv
65-79% m in o ritv
80-100% m inority
■; •
...
Incom e C h a ra cteristics
Low o r m o d erate incom e
M iddle incom e
^ ^ £ g e rm c o m ^ _
'"
„
>
■■'
;• ;
'
'
<
. ■
' -
In com e an d R acial C om p osition
Low in com e, less than 15% m inoritv
15-29% m inority
3 0-49% m in o rity
50 -6 4 % m in o rity
6 5 -7 9 % m in o rity
8 0 -100% m inoritv
•• r s v 1:
(
\
'
•.&>
'
-
**
■
,
■
.
••
''
,..•
j
...
' -1 '
U o o e r in co m e, less th a n 15% m inoritv
15-29% m in o rity
30 -4 9 % m in o rity
5 0 -6 4 % m in o rity
6 5 -7 9 % m in o rity
8 0 -100% m inority
A ll o th er tr a c ts
S m a ll co u n ty
wunm code saio-oi-c
.
, '•• • '•;= i1# ;:
■ /
' ''
c
/M iddle in co m e, less th an 15% m inority
15-29% m in o rity
30-49% m in o rity
50 -6 4 % m in o ritv
65 -7 9 % m in o rity
8 0 -100% m inority
■
V-
■ •••••. - *';>
•••
~
...
■
£
'
. ?■' '
Federal Register / Vol. 54, No. 193 / Friday, October 6,1989 / Proposed Rules
«• ii
Federal Register / Vol. 54, No. 193 / Friday, October 6, 1989 / Proposed Rules
Sample Tables 1 and 2 are similar to
the current HMDA-1 Part A
(Originations) and HMDA-1 Part B
(Purchases) forms. Sample Table 1
would show the disposition of loan
applications (granted, denied, or
withdrawn) by loan category within
each census tract. Sample Table 2 would
show loans purchased by loan category
within each census tract. These two
tables would be produced for each MSA
in which the institution has offices.
Under section 1211(b) of the FIRREA
amendments, institutions are required to
identify the class of purchaser of loans
that are sold. Using these data from
registers, the FIRREA plans to produce a
report similar to that set forth as Sample
Table 3. This sample table would
indicate, for all loans sold by the
institution, the number and dollar
amount sold by class of purchaser. The
table would reflect activity by the
institution in all MSAs, and the classes
would cover all major categories of
purchasers.
The FIRREA also plans to produce
four other tables to reflect the data on
race, sex, and income that must be
reported under section 1211(a) of the
FIRREA amendments—Sample Tables 4,
5, 6, and 7. The FIRREA would prepare
these tables for each loan category.
Sample Table 4 would show dispostion
of applciations by the race, sex and
income of applicants or borrowers.
Disposition cateogories would include
the total number and dollar amount of
applications received, loans granted,
applications denied, and applications
withdrawn. Sample Table 5 would show
the disposition of applications broken
down by the income and by the race of
the applicant or borrower. Sample Table
6 would show disposition of
applications by the income and sex of
the applicant or borrower. Sample Table
7 would show the disposition of
applications within groups of census
tracts, categorized by their race and
income characteristics.
(4) Effective dates. The FIRREA
amendments apply to applications
received, and loans originated or
purchased, on or after January 1,1990.
Under the Board’s proposal, institutions
will be required to report data for
calendar year 1990 in the revised format
by February 15,1991. The current
requirements of Regualtion C apply to
reports of data for calendar year 1989;
accordingly, institutions will use current
forms HMDA-1 or HMDA-2, as
appropriate, for the reports that are due
on March 31,1990.
(5) Economic impact statement. The
Board’s bivision of Research and
Statistics has prepared an economic
inipact statement on the revisions to
Regulation C. A copy of the analysis
may be obtained from Publications
Services, Board of Governors of the
Federal Reserve System, Washington,
DC 20551, at 202-452-3245. I
List of Subjects in 12 CFR Part 203
Banks, Banking, Consumer protection,
Federal Reserve System, Home
mortgage disclosure, Mortgages,
Reporting and recordkeeping
requirements.
For the reasons set forth" in this notice
and pursuant to the Board’s authority
under section 305(a) of the Home
Mortgage Disclosure Act (12 U.S.C.
2804(a)), the Board proposes to revise 12
CFR part 203 as follows:
PART 203— HOME MORTGAGE
D ISCLO SU RE
Sec.
203.1
203.2
203.3
203.4
203.5
203.0
Authority, purpose, and scope.
Definitions.
Exempt institutions.
Compilation of loan data.
Disclosure and reporting.
Enforcement.
Appendix A—Form and Instructions for
Loan /Application Register
Appendix B—Form and Instructions for Data
Collection on Race and Sex
Authority: 12 U.S.C. 2801-2810.
§ 203.1
Authority, purpose and scope.
(a) Authority. This regulation is issued
by the Board of Governors of the
Federal Reserve System ("Board”)
pursuant to the Home Mortgage
Disclosure Act (12 U.S.C. 2801 et se^.),
as amended. The information-collection
requirements have been approved by
the U.S. Office of Management and
Budget under 44 U.S.C. 3501 et seq. and
have been assigned OMB No. 7100-0090.
(b) Purpose. (1) This regulation
implements the Home Mortgage
Disclosure Act, which is intended to
provide the public with loan data that
can be used:
(1) To help determine whether
financial institutions are serving the
housing needs of their communities;
(iij To assist public officials in
distributing public-sector investments so
as to attract private investment to areas
where it is needed; and
(iii)
To assist in identifying possible
discriminatory lending patterns and
enforcing antidiscrimination statutes.
(2) Neither the act nor this regulation
is intended to encourage unsound
lending practices or the allocation of
credit.
(c) Scope. This regulation applies to
any financial institution that had assets
of more than $10,000,000 and had a
home or branch office in a metropolitan
41267
statistical area (MSA) on December 31
of the year preceding. The regulation
requires the institution to report data to
its supervisory agency about homepurchase and home-improvement loans
it originates, purchases, or for which it
receives applications, and to disclose
certain data to the public. "Financial
institution” includes a bank, saving
association, credit union, or other
mortgage lending institution, as defined
in § 203.2(e).
(d)
Loan aggregation and central data
depositories. Using the loan data
submitted by financial institutions, the
Federal Financial Institutions
Examination Council will prepare
disclosure statements for individual
institutions and will aggregate loan data
for each MSA, showing lending patterns
by location, age of housing stock,
income level, sex and racial
characteristics. Loan data are available
to the public at central data depositories
located in each MSA. A listing of central
data depositories can be obtained from
the Federal Financial Institutions
Examination Council, Washington, DC
20006.
§ 203.2
Definitions.
In this regulation:
(a) Act means the Home Mortgage
Disclosure Act (12 U.S.C. 2801 et seq.),
as amended.
(b) Application means a completed
application for a home-purchase or a
home-improvement loan that contains
information the financial institution
regularly obtains in evaluating
applications for the amount and type of
credit requested.
(c) Branch Office means: (1) Any office
of a bank, savings association, or credit
union that is approved as a branch by a
federal or state supervisory agency, but
excludes free-standing electronic
terminals such as automated teller
machines; and
(2) Any office of a mortgage lending
institution (other than a bank, savings
association, or credit union) that takes
applications from the public for homepurchase or home-improvement loans. A
mortgage lending institution is also
deemed to have a branch office in an
MSA if, in the preceding calendar year,
it received applications for, originated,
or purchased five or more homepurchase or home-improvement loans on
property located in that MSA.
(d) Dwelling means a residential
structure (whether or not it is attached
to real property) located in a state of the
United States of America, the District of
Columbia, or the Commonwealth of
Puerto Rico. The term includes an
individual condominium unit,
41268
Federal Register / Vol. 54, No. 193 / Friday, October 6, 1989 / Proposed Rules
cooperative unit, or mobile or
manufactured home.
(e) Financial institution means: (1) A
bank, savings association, or credit
union that originated in the preceding
calendar year a home-purchase loan
(other than temporary financing such a
construction loan) secured by a first lien
on a one-to-four family dwelling if:
(1) The institution is federally insured
or regulated; or
(ii) The loan is insured, guaranteed, or
supplemented by any Federal agency; or
(iii) The institution intended to sell the
loan to the Federal National Mortgage
Association, the Government National
Mortgage Association, or the Federal
Home Loan Mortgage Corporation;
(2) A for-profit mortgage lending
institution (other than a bank, savings
association, or credit union) whose
home-purchase loans equaled or
exceeded ten percent of its loan volume,
measured in dollars, in the preceding
calendar year.
(f) Home-improvement loan means
any loan that: (1) Is stated by the
borrower (at the time of the loan
application) to be for the purpose of
repairing, rehabilitating, or remodeling a
dwelling; and
(2) Is classified by the financial
institution as a home-improvement loan.
(g) Home-purchase loan means any
loan secured by and made for the
purpose of purchasing, or refinancing
the purchase of, a dwelling.
(h) Metropolitan statistical area or
MSA means a metropolitan statistical
area or a primary metropolitan
statistical area, as defined by the U.S.
Office of Management and Budget.
required by the state disclosure law to
its state supervisory agency, for purpose
of aggregation.
(c)
Loss of exemption. (1) An
institution losing an exemption that was
based on asset size or location under
paragraph (a) of this section shall
comply with this regulation beginning
with the calendar year following the
year in which it lost its exemption.
(2) An institution losing an exemption
that was based on § 203.2(e)(1) or (2)
shall comply with this regulation
beginning with the calendar year
following the year in which it lost its
exemption.
(3) An institution losing an exemption
that was based on state law under
paragraph (b) of this section shall
comply with this regulation beginning
with the calendar year following the
year for which it last reported loan data
under the state disclosure law.
§ 203.4
Compilation of loan data.
(a) Data format and itemization. A
financial institution shall compile data
regarding applications for, originations
of, and purchases of home-purchase and
home-improvement loans for each
calendar year. These data shall be
presented on a loan-by-loan basis in the
loan/application register format
prescribed in appendix A. The
institution shall include the following:
(1) A number for the loan or loan
application, and the date of application.
(2) The type and purpose of die loan.
(3) The owner-occupancy status of the
property to which the loan relates.
(4) The amount of the loan or '
application.
(5) The type of action taken, and the
203.3 Exempt institutions.
date.
(a) Exemption based on asset size or
(6) The location of the property to
location. A financial institution is
which the loan relates, by MSA, state,
exempt from the requirements of this
' regulation for a given calendar year if on county, and census tract, if the
institution has a home or a branch office
the preceding December 31:
in that MSA.
(1) Its total assets were $10,000,000 or
(7) The race and sex of the applicant
less; or
^,
or borrower, and the income relied upon
(2) It had neither a home office ;iior a
in processing the loan application.
branch office in an MSA.
(8) The type of entity purchasing a
(b) Exemption based on state law. (1)
loan that was originated or purchased
A state-chartered financial institution is
and then sold by the institution within
exempt from the requirements of this
the same calendar year.
regulation if the Board determines that
(b) Collection of data on race, sex,
the institution is subject to a state
and income. (1) Questions regarding the
disclosure law that contains
race and sex of the applicant or
requirements substantially similar to
borrower may be listed on the loan
those imposed by this regulation and
application or on a separate form. If the
contains adequate provisions for
applicant or borrower chooses not to
enforcement.
(2) Any state, state-chartered Financial provide the information, the lender shall
obtain the data, to the extent possible,
institution, or association of such
on the basis of visual observation or
institutions may apply to the Board for
surname.
an exemption under this paragraph.
(2) Race, sex, and income data need
(3) An institution that is exempt under
not be reported for:
this paragraph shall submit the data
(i) Loans purchased by the financial
institution; or
(ii) Applications received, or loans
originated, by a bank, savings
association, or credit union with assets
on the preceding December 31 of
$30,000,000 or less.
(c) Optional data. A financial
institution may include in the loan/
application register the reason it denied
a loan application.
(d) Excluded data. A financial
institution shall not report:
(1) Loans originated or purchased by
the financial institution acting in a
fiduciary capacity (such as trustee);
(2) Loans on unimproved land;
(3) Temporary financing (such as
bridge or construction loans);
(4) The purchase of an interest in a
pool of mortgage loans (such as
mortgage-participation certificates); or
(5) The purchase solely of the right to
service loans.
§ 203.5
Disclosure and reporting.
(a) R eporting requirem ents. By
February 15 following the calender year
for which the loan data are compiled, a
financial institution shall send two
copies of its loan/application register to
the agency office specified in appendix
A of this regulation.
(b) D isclosure to pu blic. A financial
institution shall make its mortgage loan
disclosure statements (to be prepared by
the Federal Financial Institutions
Examination Council) available to the
public no later than 15 business days
after the statements are received by the
institution from its supervisory agency.
The financial institution shall make
these statements available to the public
for a period of five years.
(c) A v a ila b ility o f disclosu re
statem en ts. A financial institution shall
make the disclosure statements
available at its home office. If it has
branch offices in other MSAs, it shall
also make statements available in at
least one branch office in each of those
MSAs; the statements at branch offices
need only contain data relating to
property in the MSA where that branch
office is located. The institution shall
make the disclosure statements
available for inspection and copying
during the hours the office is normally
open to the public for business. An
institution that provides photocopying
facilities may impose a reasonable
charge for this service.
(d) N otice of a va ila b ility. A financial
institution shall post a general notice
about the availability of its disclosure
statements in the lobbies of its home
office and any branch offices located in
an MSA. Upon request it shall promptly
Federal Register /
Vol. 54, No. 193 / Friday, October
provide the location of the institution’s
offices where the statements are
available. At its option, an institution
may include the location in its notice.
§ 203.6
Enforcement
(a) A dm in istrative enforcem ent. A
violation of the act or this regulation is
subject to administrative sanctions as
provided in section 305 of the act.
Compliance is enforced by the agencies
listed in appendix A of this regulation.
(b) Bona fid e errors. An error in
compiling or recording loan data is not a
violation of the act or this regulation if it
was unintentional and occurred despite
the maintenance of procedures
reasonably adapted to hvoid such
errors.
Appendix A—Form and Instructions for
Loan/Application Register
I. Loan/Application Register Form
Public reporting burden for this collection
of information is estimated to vary from 4 to
100 hours per response, with an average of 30
hours per response, including time to gather
and maintain the data needed to review
instructions and complete the information
collection. Send comments regarding this
burden estimate or any other aspect of this
collection of information, including
suggestions for reducing the burden, to
Secretary, Board of Governors of the Federal
Reserve System, Washington, DC 20551; and
to the Office of Information and Regulatory
Affairs, Office of Management and Budget,
Washington, DC 20503.
II. Instructions to Lending Institutions
A. Who Must Use This Form
(1} Banks, savings associations, credit
unions, and other mortgage lending
institutions must complete this loan/
application register to list data about loan
applications received and loans originated
and purchased for a calendar year if on the
preceding December 31 the institution:
(a) Had assets of more than $10,000,000,
and
(b) Had a home or a branch office in a
metropolitan statistical area or a primary
metropolitan statistical area (both referred to
in these instructions by the term MSA).
Example: If on December 31,1989, you had
a home or a branch office in an MSA and
your assets exceeded $10,000,000, you must
complete a register listing all home-purchase
and home-improvement loans you originate
or purchase during calendar year 1990, and
listing also any applications you receive on
which final action was taken by year-end
1990.
(2) However, if your institution is a bank,
savings association or credit union, you need
not complete a register—even if the tests for
asset size and location are met—if you made
no first-lien mortgage loans on one-to-four
family dwellings in the preceding calendar
year.
(3) If your institution is a for-profit
mortgage lender (other than a bank, savings
association, or credit union), you need not
6, 1989
complete a register if your home-purchase
loan originations in the preceding year
totalled less than 10 percent of your loan
volume, measured in dollars.
(4)
You must complete a separate loan/
application register even if you are a
subsidiary of an institution that is also
required to complete a register,
B. Who Must Use Other Forms
Institutions that have been exempted by
the Federal Reserve Board from complying
with Federal law because they are covered
by a similar state law on mortgage-loan
disclosures must use the disclosure form
required by their state law.
C. Format
(1) You must use the format of this loan/
application register, but you are not required
to use the form itself. For example, you may
produce a computer printout instead. But you
must give all the identifying information
asked for at the top of the form, use the
prescribed column headings, provide the
signature of a certifying officer, etc.
(2) If your register is more than one page,
number the pages.
(3) At the top of the first page, type or print
the name and telephone number of the office
for your institution who will be certifying to
the accuracy of the data, the name of your
institution, and the mailing address. Your
supervisory agency will use this name and
address to send completed disclosure
statements to your institution.
D. Submission of Register; Release of
Disclosure Statements
(1) If you submit data in hard copy, you
must send two copies of your loan/
application register to the office specified by
your Federal supervisory agency no later
than February 15 following the calendar year
for which the data are compiled. A list of
agencies appears at the end of these
instructions.
(2) If you submit your register in machinereadable form, you must obtain the required
specifications from your regulatory agency.
(3) Submit only one report for each
institution. The report may consist of
separate registers from your individual
branch offices. However, be certain that the
loan numbers discussed under paragraph F(l)
are unique within your institution (for
example, you could use a letter or number
code for different branches to avoid the
possibility of duplicate loan numbers).
(4) The first page of the register must be
signed by an officer of your institution,
certifying to the accuracy of the data.
(5) The Federal Financial Institutions
Examination Council will prepare disclosure
statements from the data that you submit and
will send you, through your supervisory
agency, a copy for your institution to make
available to the public. You must make these
statements available for inspection by the
ublic at your home office (and, if you have
ranch offices in other MSAs, at one branch
office in each of these MSAs) within 15
business days of receiving them.
E. Data to Be Shown
(1) Show the data on home-purchase and
home-improvement loans that you originated
or purchased during the calendar year
/ Proposed Rules
41269
covered by the report. Report this data even
if the loans were subsequently sold.
(2) Show data for applications received
that your institution denied, or that the
applicant withdrew, by the end of the
calendar year. Report the required data even
if the loan application was received in a
preceding year, as long as the disposition
was made during the year for which you are
reporting.
F. Itemization of Data to be Shown
Your loan/application register must include
the following.
(1) Application or loan number. If the loan
is to be FHA insured, you must enter the FHA
case number. Otherwise, you may enter any
number not exceeding 25 characters (letters
or numerals, or a combination of both) that
would allow retrieval of the loan or
application file to which the number refers.
Make sure that loan or application numbers
are unique within your institution. If your
report contains data for branch offices, for
example, you could add codes to identify the
loans or applications of particular branches.
(2) Date of application. Enter the date the
loan was applied for by year, month and day.
For example, January 31,1990, would be
shown as "90-01-31.” Enter “NA" for loans
purchased by your institution.
(3) Application or loan information.—(a)
Type. Indicate the type of loan for application
for a loan), by entering the applicable code,
as follows:
1— Conventional (any loan other than FHA,
VA or FmHA loans)
2— FHA (Federal Housing Administration)
insured
3— VA (Veterans Administration) guaranteed
4— FmHA (Farmers Home Administration)
insured
(b) Purpose of loan. Indicate the purpose of
the loan by entering the applicable code as
follows:
1— Home purchase (one-to-four family)
2— Home improvement (one-to-four family)
3— Multifamily dwelling (both purchase and
improvement)
(c) Explanation of loan purpose—Code 1:
Home-purchase.
(i) This code applies to loans made, or
applications received, for the purpose of
purchasing a residential dwelling for one-tofour families if the loan is secured by a lien.
(ii) At your option, you may use code 1 for
loans that are made for home-improvement
purposes but are secured by a first lien, if you
normally classify such first-lien loans as
home-purchase loans.
(iii) Use code 1 for refinancings of homepurchase loans on one-to-four family
residential dwellings.
Code 2: Home-improvement, (i) Code 2
applies to loans and applications for loans
that:
(A) The borrowers have said are to be used
for repairing, rehabilitating, or remodeling
one-to-four family residential dwellings, and;
(B) Are recorded on your books as homeimprovement loans.
(ii) You must report both secured and
unsecured loans.
(iii) At your option, you may use code 2 for
home-equity lines of credit if the borrower or
41270
Federal Register / Voi. 54, No. 193 / Friday, October 6, 1989 / Proposed Rules
a home or branch office (or outside any
applicant indicates at the time of application
4—Loan purchased by your institution
or when the account is opened that a portion
MSA), enter the code "NA” in the MSA,
(a) Type, (i) Do not report any loan
of the proceeds will be used for homestate, county, and census tract columns.
application that is still pending at the end of
improvement. For such lines, under “Amount
However, remember that if you are a
the calendar year for which you are
of loan" in paragraph (e) below, enter only
mortgage lending institution (other than a
reporting; instead, report it in the year a
that portion of the line which the borrower or decision is made.
bank, savings association, or credit union)
applicant indicates will be for homeand you received five or more loan
(ii) Indicate as withdrawn any application
improvement purposes. Report only in the
applications or originated or purchased five
that the applicant has expressly withdrawn,
year the line is established.
or more home-purchase loans in an MSA, you
or that meets the conditions specified in
Code 3: M u ltifa m ily dw ellin g, (i) This code
§ 202.9(f) of Regulation B. Do not indicate as
are deemed to have a branch office in that
applies to loans and applications on
withdrawn any applications that are
MSA, whether or not you have an actual
dwellings for five or more families, including
incomplete but do not meet the above
building there.
home-purchase and home-improvement
conditions.
(6)
R ace, se x a n d incom e. (See Appendix B
loans, and refinancings.
(b) D ate. Enter the date (by month and day
of Regulation C for information on the
(ii) Do not use this code for loans or
only) of approval, denial, or withdrawal of
collection of race and sex data, and for a
individual condominium or cooperative units; the loan application, or purchase of the loan,
sample data collection form.)
use codes 1 or 2 for such loans, as applicable.
as applicable. For example, a loan
(a) You must report this information for
(d) O ccu pan cy. Use the applicable code to
application that was approved on January 31,
loans originated and applications received by
indicate whether the property to which the
1990, would be entered as "01-31.” (Because
your institution only where the borrower or
loan or loan application relates is to be
the register will only contain information for
applicant is a natural person (and not a
owner-occupied:
a given calendar year, you will not enter the
corporation or partnership, for example).
1— Owner-occupied
year in this column.)
1
Moreover, if your institution is a bank,
2— Not owner-occupied
(5)
P ro p e rty location . In these columns you savings association, or credit union with
3— Not applicable
will enter the applicable codes for the MSA,
assets of $30,000,000 or less on the preceding
state and county, and census tract locations
(i) Code 2 (“not owner-occupied”) applies
December 31, you may but need not report
for the property to which a loan relates.
to home-purchase or home-improvement
information on race, sex and income. In
(a) M SA . For each loan or application for a
loans or applications on one-to-four family
addition, the reporting of this information is
loan, indicate the location of the property by
dwellings, located within an MSA in which
not required for loans purchased by your
the
MSA
number,
if
you
have
a
home
or
your institution has a home or a branch
institution. If you are not reporting this
branch
office
in
that
MSA.
(See
paragraph
(e)
office, that were made to borrowers or
information, enter the code numbers specified
below
for
treatment
of
loans
on
property
received from applicants who indicated at
in the lists in paragraphs (c) and (d) below for
outside MSAs in which you have offices.) If
the time of the loan application that they did
“not applicable,” and enter "NA” under
you are a mortgage lending institution, you
not intend to use the property as a principal
are also deemed to have a branch office in an income in paragraph (e).
dwelling.
(b) Race and sex data is not required for
MSA if in the previous year you received
(ii) Use code 3 (“not applicable”) if you
applications you receive by telephone or
applications
for,
originated,
or
purchased
five
cannot determine from the load documents
mail; however, you must enter this
or more home-purchase or homewhether the property is to be ownerinformation if it is given to you. If this
improvement loans on property located in
occupied, or if the property to which the loan
information is not obtained by you for
that MSA. Enter only the MSA number, not
relates;
telephone or mail applications, enter the code
the MSA name. MSA boundaries are defined
(A) Is not located in an MSA, or is located
number for the appropriate “information not
by the U.S. Office of Management and
in an MSA in which your institution has
Budget; use the boundaries that were in effect provided by applicant" code from the lists
neither a home nor a branch office; or
provided in paragraphs (c) and (d) below.
on January 1 of the calendar year for which
(B) Is a multifamily dwelling.
(c) Race of borrower or applicant. Use the
(e) A m o u n t o f loan. Enter the amount of the you are reporting.
following codes to indicate the race or
(b) S ta te a n d cou n ty. Use the two-digit
loan or application. Round all dollar amounts
national origin of the applicant or borrower
(state) and three-digit (county) numerical
to the^nearest thousand ($500 should be
under column “A” and of any co-applicant or
codes available from your regional
rounded up to $1,000), and show in terms of
co-borrower under column “CA." If there is
supervisory agency. Use only these
thousands.
more than one co-applicant, provide this
established codes. Do not use the standard
(i) For home-purchase loans that you
information only for the first co-applicant
U.S. Postal Service abbreviations for states.
originate “amount” means the original
listed on the application form.
(c) C en su s tract. Indicate the census tract
principal amount of the loan. For homein which the property is located. Enter the
purchase loans that you purchase, "amount"
1— American Indian or Alaskan Native
code "NA" if the property is located in an
means the unpaid principal balance of the
2— Asian or Pacific Islander
area not divided into census tracts on the
loan at the time of purchase.
3— Black
U.S. Census Bureau’s census-tract outline
(ii) For home-improvement loans (both
4— Hispanic
originations and purchases), you may include maps (see paragraph (d) below). You may
5— White
enter either the tract number or the code
unpaid finance charges in the "amount" if
6— Other
"NA" if the property is located in a county
that is how you record such loans on your
7— Information not provided by applicant;
that had a population of 30,000 or less in the
books.
application made by mail or telephone
(iii) For home-equity lines of credit you
1980 census.
8— Not applicable
may include in the amount only that portion
To determine population, use the Census
(d) S e x o f b o rr o w e r o r a p p lica n t. Use the
of the line indicated by the applicant or
Bureau’s PC80-1-A population series even if
following codes to indicate the sex of the
borrower at the time the application is made
the population has increased above 30,000
applicant or borrower under column “A,” and
or when the account is opened as being for
since 1980.
of any co-applicant or co-borrower under
the purpose of home-improvement. Report the
(d) C ensu s tra c t m aps. To determine the
column “CA." If there is more than one co
line only in the year it is established.
census tract number, consult the U.S. Census
applicant, provide this information only for
(iv) In the case of a loan application that is
Bureau's census tract outline maps. You must
the first co-applicant listed on the application
denied or withdrawn, enter the amount of the use the maps of the appropriate MSAs in the
form:
loan applied for.
Census Bureau’s PHC80-2 series for the 1980
1— Male
(4)
A c tio n taken . By using the following
census, or equivalent census data from the
2— Female
codes, indicate the type of action taken on
Census Bureau (such as GBF/DIME files) or
3— Information not provided by applicant;
the application or loan by the end of the
from a private publisher. Use the maps in the
application made by mail or telephone
calendar year for which you are reporting:
1980 series even if more current maps are
4— Not applicable
available.
1— Loan granted
(e) Incom e. Enter the annual income that
(e) Outside-MSA. For loans oh property
2— Application denied
your institution relied upon in processing the
located outside the MSAs in which you have
3— Application withdrawn
Federal Register /
Vol.
loan application. Round all dollar amounts to
the nearest thousand ($500 should be rounded
up to $1,000), and show in terms of
thousands.
(7) Type of purchaser of loan. For loan
originations and purchases, indicate the class
of purchaser of the loan by use of one of the
following codes:
1— Loan has not been sold within calendar
year
2— FNMA (Federal National Mortgage
Association)
3— GNMA (Government National Mortgage
Association)
4— FHLMC (Federal Home Loan Mortgage
Corporation)
5— FmHA (Farmers Home Administration)
6— Commercial Bank
7— Savings Bank or Savings Association
8— Life Insurance Company
9— Other type of purchaser
Use codes 2 through 9 to identify the class
of purchaser only when you either originated
or purchased a loan and then sold it within
the same calendar year. If you originated or
purchased a loan and did not sell the loan
that same calendar year, enter code 1
instead. If you sell a loan in a year following
the year in which it was originated or
purchased, you need not report the sale.
(8) Reason for denial. At your option, you
may enter up to two reasons a loan
application was denied, using die following
codes:
1— Income
2— Collateral
3— Credit history
54, No.
193 / Friday, October 0, 1989 / Proposed Rules
4— Employment history
5— Other
G. Data to be Excluded
Do not report the following:
(1) Loans or applications for loans that,
although secured by real estate, are made for
urposes other than for home-purchase or
ome-improvement (for example, do not
report a loan secured by residential real
property for purposes of financing education,
a vacation, or business operations);
(2) Loans made or applications for loans
received in a fiduciary capacity (for example,
by your trust department);
(3) Loans or applications for loans on
unimproved land;
(4) Construction loans and applications,
and other temporary financing loans and
applications;
(5) The purchase of an interest in a pool of
mortgage loans (such as mortgageparticipation certificates); or
(6) The purchase solely of the right to
service loans.
111. Where to send your register
Send your loan/application registers and
direct any questions to the office of your
federal supervisory agency specified below.
If you are die subsidiary of a bank, savings
association, or credit union, send the register
to the supervisory agency for your parent
institution. Your agency can provide you with
HMDA posters that you can use to inform the
public of the availability of your disclosure
statements.
National banks and their subsidiaries.
District office of the Office of the Comptroller
41271
of the Currency serving the district in which
the national bank or subsidiary is located.
S tate m em ber banks o f the Federal
R eserve System , their subsidiaries, and
su bsidiaries o f bank holding companies.
Federal Reserve Bank serving the district in
which the state member bank or subsidiary is
located.
N onm em ber insured banks (except for
fe d e ra l savings banks) an d their subsidiaries.
Regional Director of the Federal Deposit
Insurance Corporation for the region in which
the bank or subsidiary is located.
Savings Institutions Insured Under the
Savings A ssociation Insurance Fund o f the
FDIC, Federally-chartered Savings Banks
Insured Under the Bank Insurance Fund o f
th e FDIC (But N ot Including State-chartered
Savings Banks Insured Under the Bank
Insurance Fund), their subsidiaries, and
subsidiaries o f savings institution holding
com panies. District Director of the Office of
Thrift Supervision for the district in which the
institution is located.
C redit unions. National Credit Union
Administration, Office of Examination and
Insurance, 1778 G Street, NW., Washington,
DC 2045d
O ther D epository institutions. Regional
Director of the Federal Deposit Insurance
Corporation for the region in which the
institution is located.
O ther m ortgage lending institutions.
Regional office of the Secretary of Housing
and Urban Development for the region in
which the institution is located.
M tXtttQ CODE 6210-01-44
41272
Loan/Application Register
(Activity during 19__)
Name and address of institution:________________________________________________________________ ______________ Control Number
A p p lic a n t I n f o r m a tio n
A p p lic a tio n o r
L oan N u m b er
D a te o f
A p p lic a tio n
A p p lic a tio n o r L o a n I n f o r m a tio n
State County
Type of
P u rc h a se r
o f L oan
Tract
A
Type Date
CA
A
CA
(SOOO's)
1
,>_
l
v A^
* >' \*
> >£
%A%,vs
‘
\>.V » \•
^ ; ^
’
X
S
<' ?v x-.
v <
v
, ' ' .
,
,
v
/
**.' ' y \
> *•'
' ■
Sample Loan/Application Register
j ; • . '' :
:
v
• ■:
l b be completed by Financial Institutions
<• ' *
■■
'■
- ' ,- .
& V
-
>'
•
1.
; y "
'-•■ ; ' v •
Name of Certifying Officer______________________________________
Signature:________________________________________________ Phone:.
for
Denial
(Oplional)
R easo n
Federal Register / Vol. 54, No. 193 / Friday, October 0,1989 / Proposed Rules
MSA
Income
Sex
Race
Type Purpose Occupancy Amount
(SOOO's)
A-Applicant CA-Co-Applicant
P r o p e r ty L o c a tio n
A c tio n
T aken
Application or Loan Information
Applicant Information
T ype:
Race:
1 -- C o n v e n tio n al
2 - FH A
3 - VA
4 » Fm HA
Purpose;
1 -- H o m e p u rc h a se (One-to fo u r fam ily )
2 — H o m e im p ro v e m e n t one*to-four fam ily)
3 -- M u ltifam ily dw ellin g (both p u rc h a se an d
im p ro v e m e n t
1 - A m e ric a n In d ian o r A la sk a n N a tiv e
2 - A sia n o r P acific Isla n d e r
3 - Black
1 - Owner-occupied
2 - N o t ow ner-o c cu p ied
3 - N o t a p p licab le
Action Taken
1
2
3
4
--
L oan g ran ted
A p p licatio n d enied
A p p licatio n w ithdraw n
L o a n p u rc h a se d by institu tio n
B IL L IN G CODE 6210-01-C
t
2
3
4
5
~
-
L o an n o t so ld w ith in c a le n d e r y ear
FN M A
GNMA
FH LM C
FmHA
4 - H isp a n ic
5 - W h ite
6 —Commercial bank
6 -- Other
8 •• Life insurance company
9 - Other type of purchaser
7 - In fo rm a tio n n o t p ro v id ed (m a il o r te le p h o n e
8 - N o t a p p lic a b le o r in fo rm a tio n n o t re q u ire d
7 *• S a v in g s B a n k o r S a v in g s and Iban A ssociation
Reasons for Denial
Sex:
1 - Income
1 - M a la
O ccu p an cy :
Type of Purchaser of Loan
2 — C o lla te ra l
2 - Female
3 — C re d it h isto ry
3 - In fo rm a tio n n o t p ro v id e d (m a il o r te le p h o n e
4 - Employment history
application)
4 - N o t ap p licab le
3 - M o rtg a g e in su ra n c e n o t available
6 -O th e r
Federal Register / Vol. 54, No. 193 / Friday* October 6,1989
J Proposed
Rules_________
41273
Codes for Loan/Application Register
Federal Register /
41274
Vol. 54, No. 193 / Friday, October 6, 1989 / Proposed Rules
Appendix B—Form and Instructions for
Data Collection on Race and Sex
(a) Instructions on Collection o f D ata on
R ace an d Sex
You may list questions regarding the race
and sex of the applicant on your loan
application form, or on a separate form that
refers to the application (see the sample form
below for recommended language). You must
ask for this information, but cannot require
the applicant to provide it
If the applicant chooses not to provide the
information, note this fact on the form, and
note the data, to the extent possible, on the
basis of visual observation or surname.
Inform the applicant that the Federal
government is requesting this information in
order to monitor compliance with Federal
statutes that prohibit lenders from
discriminating against applicants on these
bases. Inform the applicant that if the
information is not provided, you are required
to note the data on the basis of visual
observation or surname.
If an application is made entirely by
telephone, you need not request this
information. Additionally, you need not •.
provide the data when you take an
application by mail, if the applicant fails to
answer these questions on the application
form. If it is not otherwise evident on the face
of an application, you should indicate
whether it was received by mail or telephone.
(b) Sample Race and Sex Data Collection Form
(b )
S a m p le r a c e
and s e x d a ta c o l l e c t i o n
fo r m
INFORMATION FOR GOVERNMENT MONITORING PURPOSES
T he f o llo w in g in f o r m a t io n i s r e q u e s t e d b y th e f e d e r a l g o v er n m en t f o r
c e r t a i n t y p e s o f lo a n s r e l a t e d t o a d w e l l i n g i n o r d e r t o m o n ito r t h e
l e n d e r ' s c o m p l i a n c e w i t h e q u a l c r e d i t o p p o r t u n i t y , f a i r h o u s i n g , a n d h om e
m o r tg a g e d i s c l o s u r e la w s .
Y ou a r e n o t r e q u i r e d t o f u r n i s h t h i s
in fo r m a tio n , b u t a r e e n c o u r a g e d t o do s o .
T h e la w p r o v i d e s t h a t a l e n d e r
m ay n e i t h e r d i s c r i m i n a t e o n t h e b a s i s o f t h i s i n f o r m a t i o n , n o r o n w h e t h e r
you c h o o se t o f u r n is h i t .
H ow ever, i f you c h o o se n o t t o fu r n is h th e
in fo r m a tio n , u n d er f e d e r a l r e g u la t io n s th e le n d e r i s r e q u ir e d t o n o te r a c e
o r n a t i o n a l o r i g i n and s e x o n t h e b a s i s o f v i s u a l o b s e r v a t io n o r su r n a m e .
I f you d o n o t w is h t o f u r n is h t h e in f o r m a t io n , p le a s e c h e c k b e lo w .
BORROWER:
I
A m e r ic a n
RACE OR
□
NATIONAL
CD B l a c k
O th e r
O RIG IN
SEX
□
F e m a le
d o n o t n o t w is h
I n d ia n ,
A la s k a n N a t iv e
CD H i s p a n i c
(s p e c ify )
□
C]
to
CD A s i a n ,
O RIG IN
SEX
CD F e m a le
(s p e c ify )
CD M a le
By order of the Board of Governors of the
Federal Reserve System, October 3,1989.
William W. Wiles,
[FR Doc. 89-23772 Filed 10-8-89; 8:45 amj
BILLING COOt 6210-01-C
to
fu r n is h
A la s k a n N a t iv e
CD H i s p a n i c
Secretary of the Board.
I s la n d e r
_____________________________________________________________
do n o t w is h
A m e r ic a n I n d i a n ,
CD B l a c k
CD o t h e r
P a c ific
in fo r m a tio n
M a le
I
NATIONAL
th is
w h ite
CO-BORROWER:
RACE OR □
fu r n is h
CD
th is
r—.
in fo r m a tio n
A s ia n ,
P a c ific
«— •
I s la n d e r
CD w h i t e
________________________________________________________ ___
□
@FedFRASER