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FEDERAL RESERVE BANK OF NEW YORK [ Circular No. 10613 January 11, 1993 "I HOME MORTGAGE DISCLOSURE Proposed Amendments to Regulation C Comments Due January 29 To All Depository Institutions in the Second Federal Reserve District, and Others Concerned: The following statement has been issued by the Board of Governors of the Federal Reserve System: The Federal Reserve Board has issued for public comment a proposal to amend Regulation C, which carries out the Home Mortgage Disclosure Act (HMDA), to incorporate new statutory provisions. The Housing and Community Development Act of 1992 contains amendments to HMDA that will require financial institutions to make their loan application register data available to the public beginning March 31, 1993. This register must be modified in accordance with Board regulations before release to the public. The Act also requires institutions to make their disclosure statement available to the public within three business days of receiving it from the Federal Financial Institutions Examinations Council. Currently, they have 30 days to do so. The revised rules will apply beginning with loan and application data collected for calendar year 1992. Comment on the proposal is requested by January 29, 1993. Printed on the following pages is the text of the Board’s proposal, as published in the of January 4. Comments thereon should be submitted by January 29, and may be sent to the Board, as specified in the notice, or to our Compliance Examinations Department. Federal Register E. G erald C o r r ig a n , President. 31 Proposed Rules Federal Register Vol. 58. No. 1 Monday, January 4, 1993 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. FEDERAL RESERVE SYSTEM 12 CFR Part 203 [Docket No. R-0789; Regulation C ] Home Mortgage Disclosure; Proposed Regulatory Amendments Board of Governors of the Federal Reserve System. ACTION: Proposed rule. AGENCY: Freedom of Information Office, room B1122 of the Eccles Building, between 9 a.m. and 5 p.m. weekdays. FOR FURTHER INFORMATION CONTACT: Jane Jensen Gell or W. Kurt Schumacher, Staff Attorneys, or John C. Wood, Senior Attorney, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, DC 20551, at (202) 4522412 or (202) 452-3667. For the hearing impaired only, contact Dorothea Thompson, Telecommunications Device for the Deaf (TDD), at (202) 452-3544. SUPPLEMENTARY INFORMATION: (1) Background The Home Mortgage Disclosure Act (HMDA) requires certain depository and nondepository mortgage lenders that SUMMARY: The Board is publishing for have offices in metropolitan areas to comment a proposal to amend disclose their housing-related lending Regulation C, which implements the activity each year. The Housing and Home Mortgage Disclosure Act, to Community Development Act of 1992 incorporate new statutory provisions. (Pub. L. 102-550,106 Stat. 3672) The Housing and Community amends HMDA in several respects. The Development Act of 1992 contains statutory amendments require amendments that will require financial institutions to make modified versions institutions to make their loan of their loan application registers application register data available to the available to the public; the modified public beginning March 31,1993; the registers must be available before April register must be modified in accordance 1 for requests made on or before March with Board regulations before release to 1 following the year for which the data the public. The act also requires are compiled, and within 30 days for institutions to make their disclosure requests made after March 1. The statement—as compiled by the Federal amendments require the Board to Financial Institutions Examination deletions or modifications from Council—available to the public within specify institutions’ registers needed to protect three business days of receiving it from the privacy interest of any applicant or the Examination Council; they currently borrower, and to protect an institution have 30 days to do so. The revised rules from liability under federal or state will apply to the disclosure of the loan privacy laws. and application data collected for HMDA and Regulation C currently calendar year 1992. require financial institutions to make DATES: Comments must be received on their mortgage loan disclosure statement or before January 31,1993. publicly available no later than 30 ADDRESSES: Comments should refer to calendar days after they receive the Docket No. R-0789 and be mailed to statement from their supervisory William W. Wiles, Secretary, Board of agency. The statutory revisions amend Governors of the Federal Reserve HMDA to require institutions to make System, Washington, DC 20551. They the disclosure statement publicly may also be delivered to the guard available, upon request, within three station in the Eccles Building Courtyard business days after receiving it from the on 20th Street, NW. (between Federal Financial Institutions Constitution Avenue and C Street, NW.) Examination Council (FFIEC). The statutory provisions contain between 8:45 a.m. and 5:15 p.m. weekdays. Except as provided in § 261.8 additional amendments relating to the of the Board’s rules regarding the time periods within which the federal availability of information (12 CFR supervisory agencies must make disclosure statements and aggregate 261.8), comments received will be available for inspection and copying by tables available to financial institutions and the public. The statute requires that any member of the public in the for data collected in 1993, disclosure statements must be publicly available for September 1,1994. The aggregate data that are compiled by the FFIEC are to be publicly available (in central data depositories) before December 1,1994. For data collected in 1994 and subsequent years, federal supervisory agencies must make every effort to ensure that disclosure statements are publicly available before July 1, and aggregate disclosure reports before September 1, following the year for which the data are compiled. In addition, the statutory revisions make various other amendments to HMDA that are discussed below. The comment period ends on January 31,1993. Because prompt implementation of the statutory amendments is in the public interest, the Board has set a 30-day comment period in place of the 60 days normally called for in the Board’s policy statement on rulemaking (44 FR 3957, January 19,1979). The Board believes an abbreviated comment period is necessary to ensure that a final rule is in place as quickly as possible to provide guidance to covered lenders. In accordance with section 3507 of the Paperwork Reduction Act of 1980 (44 U.S.C. ch. 35; 5 CFR 1320.13), the proposed revisions will be reviewed by the Board under the authority delegated to the Board by the Office of Management and Budget after consideration of the comments received during the public comment period. (2) Summary o f Proposed Regulatory Amendments The following discussion summarizes the proposed amendments to Regulation C section by section. Heading changes and certain other changes that are selfevident are not discussed. Section 203.5 Disclosure and Reporting Section 203.5(a) Reporting to Agency The Board proposes to revise this section to require institutions to retain copies of their complete loan application register for a minimum period of three years, not two years as presently required. This change is consistent with the provisions in the new law (see proposed $ 203.5(d)). 32 Federal Register / Vol. 58, No. 1 / Monday, January 4, 1993 / Proposed Rules Section 203.5(b) Public Disclosure of Statement The statutory revisions require institutions to make their disclosure statement publicly available, upon request, no later than three business days after they receive the statement from the FFIEC. The Board proposes to incorporate this requirement into this subsection, in lieu of the current 30 calendar days for public data availability. However, the Board proposes to limit the three-business day requirement for availability to the institution *s home office. Because of the need for duplication and distribution, many institutions could find it difficult to make disclosure statements available in a branch office in other MSAs within three business days after receipt. Therefore, the Board proposes that institutions have ten business days in which to make their disclosure statements available in these MSAs. The Board solicits comments on this proposed timing. Section 203.5(c) Public Disclosure of Loan Application Register The statutory revisions require institutions to make their loan application registers available to the public upon request, and require the Board to specify deletions or modifications from institutions’ registers to protect the privacy interests of applicants and borrowers, and to protect institutions from liability under federal or state privacy laws. The Board proposes to add this new subsection to reflect this requirement. The three items to be deleted (application or loan number, date application received, and elate of action taken) are specified in the instructions to the HMDA-LAR found in appendix A; they correspond to the items specified by the statutory amendments. The proposed language also incorporates the statutorily mandated time periods by which an institution must make its modified register publicly available. Section 203.5(d) Availability of Data The proposed revisions to paragraph (d) reflect the amendments to the statute requiring that modified loan application register information be retained by institutions and made publicly available for a period of three years. The Board proposes to use the existing rule concerning the availability of disclosure statements at the branch office level as the rule governing the availability of an institution's modified register data. The Board also proposes to incorporate language from the statutory amendments regarding the imposition of fees by an institution for providing or reproducing the modified loan application register or the disclosure statement. Appendix A to Part 203—Form and Instructions for Completion of HMDA Loan/Application Register III. Submission of HMDA-LAR and Public Release of Data D. Availability of disclosure statement. The proposal would incorporate the new rule discussed above that an institution must make its disclosure statement available at its home office within three business days of receiving it from the FFIEC. The Board proposes to specify that disclosure statements must be made available in at least one branch office in each additional MSA within ten business days after receipt from the FFIEC. As mentioned above, the Board solicits comment on this proposed timing. As an alternative, the Board solicits comment on the feasibility of specifying that copies of disclosure statements must be made available at the applicable branch offices, upon request, within a "reasonable tune" of an institution’s receipt of the statements from the FFIEC. E. Availability of modified loan application register. Paragraph 1 of this subsection would incorporate the requirement in the new provisions that the Board specify deletions or modifications from an institution's register to protect the privacy interests of applicants and borrowers. (See also the proposed revisions to § 203.5(c).) The deletions that the Board proposes to require are specified by the newly enacted statute. These items are those that the FFIEC presently deletes prior to the public release of the edited raw data that it makes available. F. Location and format of disclosed data. The statutory amendments encourage institutions to make their modified register data available in census tract order, and allow the public release of this information (and of disclosure statements) in any media— including hard copy or in automated form—that is not prohibited by the Board. Hie statute makes clear, however, that aside from making the specified deletions, institutions are not required to change the format of the data from that used by institutions to internally maintain this information. The Board’s proposed paragraph F. in the appendix reflects these statutory provisions. Additionally, the revisions to HMDA require institutions' disclosure statements to be accompanied by a clear and conspicuous notice that the statement is subject to final review and revision, if necessary. Given that the FFIEC compiles the disclosure statements of financial institutions for public release by the institutions, the Board proposes that the FFIEC add this notice on the disclosure statements, thereby eliminating the need for financial institutions to supply the notice. As mentioned in the supplementary information to § 203.5(d) above, the Board proposes to use the existing rule concerning the availability of disclosure statements at the branch office level as the rule for availability of an institution’s modified register data. (3) Form of Comment Letters Comment letters should refer to Docket No. R-0789. The Board requests that, when possible, comments be prepared using a standard typeface with a type size of 10 or 12 characters per inch. This will enable the Board to convert the text into machine-readable form through electronic, scanning, and will facilitate automated retrieval of comments for review. Comments may also be submitted on 3 Vi inch or 5V« inch computer diskettes in any IBMcoir.patible DOS-based format, but must be accompanied by an original document in paper form. (4) Regulatory Flexibility Analysis HMDA does not cover small depository institutions (those with assets of $10 million or less), or small nondepository mortgage lenders (those with fewer than 100 home purchase loan originations and assets of $10 million or less). HMDA also exempts from coverage institutions that have neither a home nor a branch office in an MSA. Covered institutions currently must provide their loan/application registers to their supervisory agencies by March 1 for the preceding calendar year. Any incremental burden caused by this proposal would result from the requirement that these registers .be modified prior to public release in the manner proposed by the Board. Small financial institutions will likely have fewer modifications to make to their registers (based on their fewer numbers of reportable transactions). This proposal is not expected to have a significant impact on the costs of small institutions. (5) List of Subjects ia l2 CFR Part 263 Banks, banking, Federal Reserve System, Mortgages, Reporting and recordkeeping requirements. Federal Register / Vol. 58, No. 1 / Monday, January 4, 1993 / Proposed Rules (6) Text of Proposed Revisions For the reasons set forth in this proposed rule 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 amend Regulation C, Home Mortgage Disclosure (12 CFR part 203), as set forth below. Certain conventions have been used to highlight the proposed changes to the regulation and the instructions. Language to be added is shown inside bold-faced arrows, while language that would be removed appears within bold faced brackets. The Board is publishing only those sections of the regulation and instructions that would be affected by the changes. PART 203— HOME MORTGAGE DISCLOSURE 1. The authority citation for part 203 continues to read as follows: Authority: 12 U.S.C. 2801-2810. 2. Section 203.5 would be amended by redesignating paragraphs (c) and (d) as (d) and (e), by adding a new paragraph (c), and by revising paragraphs (a) through (e) to read as follows: |203.5 Disclosure and reporting. (a) Reporting to agency. By March 1 following the calendar year for which the loan data are compiled, a financial institution shall send two copies of its complete !loan application! register to the agency office specified in appendix A of this regulation, and shall retain a copy for its records for a period of not less than ! three! [tw o] years. (b) !Public! disclosure !o f statem ent! [to the public}. A financial institution shall make its mortgage loan disclosure statement (to be prepared by the Federal Financial Institutions Examination Council) available to the public !at its home office! no later than ! three business! [30 calendar] days after the institution receives it from its supervisory agency !or from the Examination Council. The disclosure statement also shall be m ade available in at least one branch office in each additional MSA where the institution has offices, w ithin ten business days alter the institution receives it.! [The financial institution shall make the statement available to the public for a period of five years.] !(c) Public disclosure o f loan application register. A financial institution shall m ake its loan application register available to the public at its home office after m odifying it in accordance w ith appendix A. An institution shall make its m odified register available follow ing the calendar year for w hich the data are com piled, by March 31 for a request received on or before March 1, and w ithin 30 days for a request received after March 1. The m odified register also shall be made available in at least one branch office in each additional MSA where the institution has offices.! 4(d )! [(c )] Availability of !data! [disclosure statement]. A financial institution shall make !its m odified register available for a period o f three years and its disclosure statem ent available for a period o f five years.! [the disclosure statement available at its home office. If it has a physical branch office in other MSAs, the institution shall also make a statement available in at least one branch office in each of those MSAs; the statement] !The statem ent and register! at a branch office need only contain data relating to property in the MSA where that branch office is located. An institution shall make the !data! [disclosure statement] available for inspection and copying during the hours the office is normally open to the public for business. It may impose a reasonable !fee for providing or reproducing the data! [charge for photocopying services]. !(e )! [(a )] Notice of availability. A financial institution shall post a general notice about the availability of its disclosure statement in the lobbies of its home office and any physical branch offices located in an MSA. Upon request, it shall promptly provide the location of the institution’s offices where the statement is available. At its option, an institution may include the location in its notice. 3. Appendix A to part 203 would be amended by revising the heading of section HI., by revising subsection m.D., and by adding new subsections m.E., F., and G., to read as follows: Appendix A to Part 203—Form and Instructions for Completion o f HMDA Loan/Application Register * * * * * Submission of HMDA-LAR and ^Public! Release of !D a ta ! [Disclosure Statements] * * * * * III. !D . A vailability of disclosure statement. Tim Federal Financial Institutions Examination Council (FFIE C ) w ill prepare a disclosure statement from the data you submit. Your disclosure statement w ill be returned to the name and address indicated on tbe transmittal sheet. W ithin three business days of receiving your disclosure statement, you must make a copy available at your borne office for inspection by the public. You also must make your disclosure statement available, w ithin ten business days after receipt of the statement from tbe 33 FFIE C , in at least one branch office in each additional M SA where you have officea. E. A vailability of modified loan application register. t . T o protect the privacy of applicants and borrowers, an institution must modify its loan application register before release to the public by removing the following information: the application or loan number, date application received, and date of action taken. 2. A financial institution must make its modified register available following the calendar year for w hich the data are compiled, by M arch 31 for a request received on or before M arch 1, and w ithin 30 days for a request received after M arch 1. 1 F. Location and format of disclosed data. You must make a complete copy of your disclosure statement and your modified register available to the public at your home office. You may make these data available in hard copy or in automated form (such as by floppy disk or computer tape). Although you are encouraged to make your modified loan application register available to the public in census-tract order, you are not required to do so. In addition, if you have physical branch offices in other M SAs, you must make available in at least one branch office in each of thoee M SAs either a complete copy of the disclosure statement and of the modified register, or the portion of each that relates to properties in that M SA. G. Posters. Your agency can provide you with HMDA posters that you can use to inform the public of the availability of your disclosure statement, or you may print your own posters.! [D. The Federal Financial Institution Examination Council (FFIEC) will prepare a disclosure statement from the data you subm it. Y our d isc lo su r e statem en t w ill be returned to the name and address indicated on the transmittal sheet. When you receive that disclosure statement you must make a copy available for inspection by the public within 30 calendar days of the date the statement is received by your institution. You must make a complete copy available at your home office. If you have physical branch offices in other MSAs, you must make available, in at least one branch office in each of those MSAs, either the complete statement or the portion of the statement relating to that MSA. Your agency can provide you with HMDA posters that you can use to inform the public of the availability of your disclosure statement, or you may print your own posters.] * * * * * By order of the Board of Governors of the Federal Reserve System, December 28,1992. W illiam W . W iles, Secretary of tbe Board. (FR Doc. 92-31871 Filed 12-31-92; 8:45 am] MUJNQ COO* S210-01-M 34 Federal Register / Vol. 58, No. 1 / Monday, January 4, 1993 / Proposed Rules aspects of the proposal. Communications should identify the Federal Aviation Administration airspace docket number and be submitted in triplicate to the address 14 CTO Part 71 listed above. Commenters wishing the FAA to acknowledge receipt of their [Airspace Docket No. 92-ANM-21] comments on this notice must submit with those comments a self-addressed, Proposed Alteration of Jet Route J stamped postcard on which the 151; WA following statement is made: AGENCY: Federal Aviation "Comments to Airspace Docket No. 92Administration (FAA), DOT. ANM-21.” The postcard will be date/ ACTION: Notice of proposed rulemaking. time stamped and returned to the commented All communications SUMMARY: This notice proposes to alter received on or before the specified the description of Jet Route J-151 by closing date for comments will be extending the route segment between considered before taking action on the Whitehall, MT, VHF Omnidirectional proposed rule. The proposal contained Range/Tactical Air Navigation in this notice may be changed in light (VORTAC) direct to Spokane, WA, of comments received. All comments VORTAC. Currently, there is no jet route submitted will be available for from Whitehall, MT, direct to Spokane, examination in the Rules Docket both WA. This jet route extension would before and after the closing date for enhance traffic flow and reduce comments. A report summarizing each controller workload. substantive public contact with FAA DATES: Comments must be received on personnel concerned with this or before February 16,1993. rulemaking will be filed in the docket. ADDRESSES: Send comments on the Availability of NPRM’s proposal in triplicate to; Manager, Air Any person may obtain a copy of this Traffic Division, ANM-500, Docket No. Notice of Proposed Rulemaking (NPRM) 92-ANM—21. Federal Aviation by submitting a request to the Federal Administration, 1601 Line Avenue, Aviation Administration, Office of Southwest, Renton, WA 98055-4056. Public Affairs, Attention: Public Inquiry The official docket may be examined Center. APA-220,800 Independence in the Rules Docket, Office of the Chief Avenue, SW., Washington, DC 20591, or Counsel, room 916,800 Independence by calling (202) 267-3485. Avenue, SW., Washington, DC, Communications must identify the weekdays, except Federal holidays, notice number of this NPRM. Persons between 8:30 a.m. and 5 p.m. interested in being placed on a mailing An informal docket may also be examined during normal business hours list for future NPRM’s should also request a copy of Advisory Circular No. at the office of the Regional Air Traffic 11-2A which describes the application Division. procedure. FOR FURTHER INFORMATION CO NTACT: Norman W. Thomas. Airspace and The Proposal Obstruction Evaluation Brandi (ATPThe FAA is considering an 240), Airspace-Rules and Aeronautical amendment to part 71 of the Federal Information Division, Air Traffic Rules Aviation Regulations (14 CFR part 71) to and Procedures Service, Federal alter Jet Route J-151 by extending this Aviation Administration, 800 route from Whitehall, MTrto Spokane, Independence Avenue, SW., WA. Currently, there is no direct jet Washington, DC 20591; telephone: (202) route segment between these points. 267-9230. This extension would enhance traffic flow and reduce controller workload. Jet SUPPLEMENTARY INFORMATION: routes are published in Section 71.607 Comments Invited of FAA Order 7400.7A dated November Interested parties are invited to 2,1992, and effective November 27, participate in this proposed rulemaking 1992, which is incorporated by by submitting such written data, views, reference in 14 CFR 71.1. The jet route or arguments as they may desire. listed in this document would be Comments that provide die factual basis published subsequently in the Order. supporting the views and suggestions The FAA has determined that this presented are particularly helpful in proposed regulation only involves an established body of technical developing reasoned regulatory dedsions on the proposal. Comments regulations for which frequent and are specifically invited on the overall routine amendments are necessary to regulatory, aeronautical, economic, keep them operationally current It, environmental, and energy-related therefore—(1) is not a "major rule" DEPARTMENT O F TRANSPORTATION under Executive Order 12291; (2) is not a "significant rule" under DOT Regulatory Policies and Procedures (44 FR 11034; February 26,1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. List of Subjects in 14 CFR Part 71 Aviation safety, Incorporation by reference, Jet routes. The Proposed Amendment In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows: PART 71— [AMENDED] 1. The authority citation for 14 CFR part 71 continues to read as follows: Authority: 49 U.S.C. app. 1348(a), 1354(a), 1510; E.O. 10854, 24 FR 9565, 3 CFR, 1 9 5 9 1963 Comp., p. 389: 49 U.S.C. 106(g); 14 CFR 11.69. §71.1 [Am ended] 2. The incorporation by reference in 14 CFR 71.1 of the Federal Aviation Administration Order 7400.7A, Compilation of Regulations, dated November 2,1992, and effective November 27,1992, is amended as follows: Section 71.607 Jet routes. * * * * * 1-151 [Revised] From Cross City, FL; Vulcan, AL; INT Vulcan 335° and Farmington, MO, 139° radials; Farmington; St. Louis, MO; Des Moines, IA; O ’Neill. NE; Rapid City, SD; Billings, MT; INT Billings 266° and W hitehall, MT, 103° radials; to Spokane, WA. * * * * * Issued in Washington, DC, on December 2 1 ,1 9 9 2 . Harold W . Becker, Manager, Airspace-Rules and Aeronautical Information Division. [FR D oc 9 2 -3 1 9 0 8 Filed 12- 31-92; 8:45 am] BILUNG CODE 4M0-13-M
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