Full text of Federal Reserve Bank of New York Circulars : 10627. Regulation C - Home Mortgage Disclosure

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FEDERAL RESERVE BANK
OF NEW YORK

[

Circular No. 10627
March 19, 1993

REGULATION C — HOME MORTGAGE DISCLOSURE
— Disclosure of Loan Application Register Data
— Use of MSA Designations During 1993
— Correction of Regulation C Pamphlet

To All Depository Institutions in the Second
Federal Reserve District, and Others Concerned:

Loan Application Register Data
Following is the text of a statement issued by the Board of G overnors of the Federal Reserve
System:
T h e F ed eral R e se r v e B oard has p u b lish ed a fin a l ru le to am en d R eg u la tio n C (H o m e M o rtg a g e
D isc lo su r e ) to carry o u t p rovision s o f th e H o u sin g and C o m m u n ity D e v e lo p m e n t A c t o f 1 9 9 2 .
T hat A ct co n ta in s am en d m en ts to H M D A that require fin a n c ia l in stitu tio n s to m ak e th eir loan
ap p lication r eg ister data available to the p u b lic b e g in n in g M arch 3 1 , 1 9 9 3 . T h is reg ister m u st b e
m o d ifie d in a cco rd a n ce w ith B oard regu lation s b efo re release to th e p u b lic.
T h e A ct a lso requires in stitu tio n s to m ak e their d isc lo su r e statem en t availab le to th e p u b lic w ith in
three b u sin e ss d ays o f re c e iv in g it from th e F ed eral F in an cial In stitu tio n s E x a m in a tio n C o u n c il.
C urrently, th ey h ave 3 0 days to d o so.
T h e rev ised ru les w ill ap p ly b e g in n in g w ith loan and ap p lication data c o lle c te d for calen d ar year
1 9 9 2 . T h e n ew rule b e c a m e e ffe c tiv e M arch 1, 1 9 9 3 .

Enclosed, for depository institutions and others maintaining sets of the B oard’s regulations,
is the text of the B oard’s final rule, as published in the Federal Register of M arch 1 1 ,1 9 9 3 . Questions
regarding this matter may be directed to our Com pliance Exam inations D epartm ent (Tel. No.
2 1 2 -7 2 0 -5 9 1 4 ).

MSA Designations
The Board of Governors has also ruled that lenders covered by Regulation C should continue
to use, through 1993 , the MSA (m etropolitan statistical area) designations that were in place during
m ost of 1992. The following is from the B oard’s statement on this matter:
T h e O ffic e o f M a n a g em en t and B u d g et issu e d n ew d e sig n a tio n s b efo re year-end 1 9 9 2 and len d ers
co v e r e d b y H M D A ord in arily w o u ld b e required to u se th e n ew M S A b o u n d a ries for id e n tify in g p rop erty
lo c a tio n s b e g in n in g on January 1, 1 9 9 3 . T h e B oard , how ever, has d e c id e d to d elay im p lem en tin g th is
c h a n g e in M S A d esig n a tio n s so that lenders m ay h ave adequate tim e to m ak e th e n e c e ss a r y p rogram m in g
c h a n g e s for data c o lle c tio n .




(OVER)

Enclosed, for depository institutions and others m aintaining sets of the B oard’s regulations,
is the text of the B oard’s official notice, as published in the Federal Register of February 1, 1993.
Questions regarding this matter may also be directed to our Compliance Exam inations Departm ent
(Tel. No. 2 1 2 -7 2 0 -5 9 1 4 ).

Correction
Also enclosed, for depository institutions and others m aintaining sets of the B oard’s
regulations, is a copy of a form that was inadvertently om itted by the Board from the Regulation
C pam phlet, as am ended effective january 1, 1992. The form should be inserted in the pam phlet
following page 13.

Additional, single copies of the enclosures can be obtained at this Bank (3 3 Liberty Street)
from the Issues Division on the first floor, or by calling the Circulars Division (Tel. No.
2 1 2 -7 2 0 -5 2 1 5 or 5 2 1 6 ).




E G erald
.

C o rrig an,

President.

FEDERAL RESERVE BANK
OF NEW YORK

[

Circular No.

10627 ”1

March 19, 1993

REGULATION C — HOME MORTGAGE DISCLOSURE
— Disclosure of Loan Application Register Data
— Use of MSA Designations During 1993
— Correction of Regulation C Pamphlet

To All Depository Institutions in the Second
Federal Reserve District, and Others Concerned:

Loan Application Register Data
Following is the text o f a statement issued by the Board of Governors of the Federal Reserve
System:
T h e F ed eral R e se r v e B oard has p u b lish ed a fin a l rule to am en d R eg u la tio n C (H o m e M o rtg a g e
D isc lo su r e ) to carry o u t p rovision s o f the H o u sin g and C o m m u n ity D e v e lo p m e n t A c t o f 1 9 9 2 .
T hat A ct c o n ta in s am en d m en ts to H M D A that require fin a n cia l in stitu tio n s to m ak e th eir loan
ap p lication reg ister data available to th e p u b lic b e g in n in g M arch 3 1 , 1 9 9 3 . T h is reg ister m u st b e
m o d ifie d in a cco rd a n ce w ith B oard regu lation s b efo re relea se to th e p u b lic.
T h e A ct a lso req u ires in stitu tio n s to m ak e their d isc lo su r e statem en t availab le to th e p u b lic w ith in
three b u sin e ss d ays o f re c e iv in g it from th e F ed eral F in an cial In stitu tio n s E x a m in a tio n C o u n c il.
C urrently, th ey h ave 3 0 days to d o so.
T h e rev ised ru les w ill ap p ly b e g in n in g w ith loan and ap p lication data c o lle c te d for calen d ar year
1 9 9 2 . T h e n ew ru le b e c a m e e ffe c tiv e M arch 1, 1 9 9 3 .

Enclosed, for depository institutions and others m aintaining sets of the B oard’s regulations,
is the text of the B oard’s final rule, as published in the Federal Register of M arch 11, 1993. Questions
regarding this m atter may be directed to our Com pliance Exam inations D epartm ent (Tel. No.
2 1 2 -7 2 0 -5 9 1 4 ).

MSA Designations
The Board of G overnors has also ruled that lenders covered by Regulation C should continue
to use, through 1993, the MSA (m etropolitan statistical area) designations that were in place during
m ost of 1992. The following is from the B oard’s statement on this matter:
T h e O ffic e o f M a n a g em en t and B u d g et issu e d n ew d e sig n a tio n s b efo re year-end 1 9 9 2 and len d ers
c o v ered b y H M D A ord in arily w o u ld be required to u se the n ew M S A b o u n d a ries for id e n tify in g prop erty
lo ca tio n s b e g in n in g on January 1, 1 9 9 3 . T h e B oard , how ever, has d e c id e d to d ela y im p lem en tin g th is
ch a n g e in M S A d e sig n a tio n s so that len d ers m ay h ave adequate tim e to m ak e th e n e c e ss a r y p rogram m in g
c h a n g e s for data c o lle c tio n .




(OVER)

Enclosed, for depository institutions and others maintaining sets of the B oard’s regulations,
is the text of the B oard’s official notice, as published in the Federal Register of February 1, 1993.
Questions regarding this m atter may also be directed to our Com pliance Exam inations Departm ent
(Tel. No. 2 1 2 -7 2 0 -5 9 1 4 ).

C orrection
Also enclosed, for depository institutions and others m aintaining sets of the B oard’s
regulations, is a copy of a form that was inadvertently om itted by the Board from the Regulation
C pam phlet, as am ended effective january 1, 1992. The form should be inserted in the pam phlet
following page 13.

Additional, single copies of the enclosures can be obtained at this Bank (3 3 Liberty Street)
from the Issues Division on the first floor, or by calling the Circulars Division (Tel. No.
2 1 2 -7 2 0 -5 2 1 5 or 5216 ).




E G erald
.

C o rrig an,

President.

P a g e ______ o f ______ _

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Correction to Regulation C, Home Mortgage Disclosure

R E G IS T E R

October 1992

L O A N /A P P L IC A T IO N

N a m e of R e p o rtin g In stitu tio n

6601

Rules and Regulations

Federal Register
VoL 5 8 , N o. 1 9
M onday, February 1, 1 9 9 3

rWs section of the FEDERAL REGISTER
x>ntains regulatory documents having general
ipplicability and legal effect most of which
ire keyed to and codified in the Code of
federal Regulations, which is published under
>0 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
he Superintendent of Documents. Prices of
tew books are listed in the first FEDERAL
REGISTER issue of each week.

:EDERAL RESERVE SYSTEM
I2 CFR Part 203
Regulation C; Docket No. R-0794]

tome Mortgage Disclosure; Use of
ASA Designations for 1993 Data
tollection and for Determining
Coverage for 1993

Board of Governors of the
’ederal Reserve System.
tCTTON: MSA designations to be used for
:ollecting 1993 HMDA data and for
letermining coverage under HMDA for
.993.

iGENCY:

SUMMARY: The

Federal Reserve Board
nnounces that lenders should continue
o use, through 1993, the MSA
lesignations that were in place prior to
he Office of Management and Budget’s
ecent redesignation of areas
toundaries, for collecting HMDA data
nd for determining coverage under
JMDA. The Board has delayed
mplementing these designations in
rder to provide adequate time for
anders to make the necessary changes
or data collection.
FFECT1VE DATES: January 1,1993,
tirough December 31,1993.
OR FURTHER INFORMATION CONTACT: Jane
ansen Gell or W. Kurt Schumacher,
>taff Attorneys, Division of Consumer
nd Community Affairs, Board of
kjvemors of the Federal Reserve
lystem, Washington, DC 20551, at (202)
52-2412 or (202) 452-3667. For the
earing impaired only, contact Dorothea
'hompson, Telecommunications Device
ar the Deaf (TDD), at (202) 452-3544.
UPPLEMENTARY INFORMATION: The
card’s Regulation C (12 CFR part 203)
nplements the Home Mortgage
lisclosure Act of 1975 (HMDA) (12
I.S.C. 2801 et seq.). HMDA requires
anders located in metropolitan
tatistical areas (MSAs) to annually
sport information on the geographic
inc. Cir. No. 10627]




distribution of their home mortgage and
home improvement loans, and to
provide information on the race or
national origin, sex, and income of
applicants and borrowers for such loans.
Regulation C requires institutions
covered by HMDA to give the location
of the property to which the loan or
application relates (MSA, state, county,
and census tract) for MSAs in which
they have an office. These requirements
apply to depository institutions that
have more than $10 million in assets
and to nondepository lenders that either
meet the $10 million asset test or that
originated 100 or more home purchase
loans in the preceding calendar year.
The instructions to the HMDA loan
application register (HMDA-LAR) direct
lenders to use the MSA boundaries that
are in effect on January 1 of the calendar
year covered by the data. On December
28,1992, the Office of Management and
Budget (OMB) issued a revised list of
metropolitan areas, having redefined
their boundaries based on changes in
population and economic patterns
revealed in the 1990 decennial census.
Given that OMB’s designations were
issued before year-end 1992, lenders
covered by HMDA ordinarily would be
required to use the new designations
beginning on January 1,1993.
The Federal Reserve Board has
decided to delay implementing the
numerous boundary changes in OMB’s
new MSA designations until calendar
year 1994 because of the general
difficulty that lenders would have in
doing so for 1993 in a timely and
orderly fashion. Because of the need to
provide guidance to lenders as quickly
as possible, this Board action is being
taken without notice and comment
rulemaking.
This delayed implementation of
reporting and coverage requirements
will reduce the overall compliance
burden for lenders. Many lenders use
software packages that have built-in
edit-checks to help catch erroneous
entries by identifying all “valid” codes
for counties and census tracts located in
MSAs. The HMDA software developed
and distributed by the FF1EC is among
those that incorporate these edit-checks.
The software already distributed by
the agencies for lenders to use in the
geocoding of 1993 loan activity does not
reflect the revised MSA designations.
Comparable software packages provided
by vendors alsomay not reflect the new

boundaries. Modifying and replacing
geocoding software is a costly and timeconsuming process. Moreover, lenders
and appraisers who rely on census tract
maps for geocoding purposes would
face difficulties in obtaining the
necessary information from the
Government Printing Office as quickly
as they need it.
Given the importance of data quality
in the collection and reporting of HMDA
data, the Board believes it is necessary
to provide adequate time for lenders to
implement the required changes to
ensure that data are accurate and
complete. When the regulatory
provision was first enacted, geocoding
typically was done at year-end. Covered
lenders are now encouraged (and in the
case of one agency are required) to
geocode as loan and application
information is entered in the HMDALAR. It would be difficult for lenders to
obtain the necessary information to
begin coding immediately, and
inefficient to delay coding until the
information became available.
The new MSA designations also affect
lenders who were previously exempt
from HMDA because they did not have
an office in an MSA pursuant to
§ 203.3(a). Under HMDA, an institution
with an office in a newly-designated
MSA on December 31,1992, would be
required to begin collecting data on
January 1,1993. Because the HMDA
data collected and compiled by lenders
for 1993 will be based on previous MSA
designations and not the newlydesignated boundaries, the Board sees
little purpose in covering for 1993
institutions whose coverage came about
as a result of the new designations.
These institutions will be required to
collect data beginning January 1,1994.
This delay in coverage applies only in
regard to newly designated areas.
Institutions that established or acquired
offices during calendar year 1992 in
other MSAs are required to comply
beginning January 1,1993.
By order o f the Board o f G overnors o f the
F ederal R eserve S ystem , January 2 6 , 1 9 9 3 .
W illia m W . W iles,

Secretary of the Board.
(FR Doc. 9 3 - 2 2 5 3 F iled 1 - 2 9 - 9 3 ; 8:45 am)
BILLING CODE 6210-01-P

13403

Rules and Regulations

Federal Register
Vol. 58. No. 46
T hursday, M arch 1 1 , 1 9 9 3

his section of the FEDERAL REGISTER
ontains regulatory documents having general
ipplicabHity and legal effect, most of which
ire keyed to and codified in the Code of
ederal Regulations, which is published under
• titles pursuant to 44 U.S.C. 1510.
0
ha Code of Federal Regulations Is sold by
Superintendent of Documents. Prices of
ew books are listed in the first FEDERAL
IEGISTER issue of each week.
to

EDERAL RESERVE SYSTEM
2 CFR Part 203

Regulation C ; Docket No. R-078SJ
fome Mortgage Disclosure

.G CY Board of Governors of the
EN :
■ ederal Reserve System.
CH O N : Final rule.
U M ftY The Board is publishing a
MA :
rnal rule to amend Regulation C, which
oiplements the Home Mortgage
Jisclosure Act (HMDA), to incorporate
lew statutory provisions. The Housing
nd Community Development Act of
992 contains amendments to HMDA
hat require financial institutions to
lake their loan application register data
vailable to the public beginning March
1,1993; the register must be modified
i accordance with Board regulations
efore release to the public. The act also
squires institutions to make their
isclosure statement—as compiled by
le Federal Financial Institutions
xamination Council later in the year—
vailable to the public within three
usiness days of receiving it from the
xamination Council; they currently
ave 30 days to do so.
FFECHVE DATE: March 1 ,1993. The
avised rules apply to the disclosure of
le loan and application data collected
ar calendar year 1992.
OR FURTHER INFORMATION CONTACT: jane
rnsen Gell or W. Kurt Schumacher,
taff Attorneys, or John C. Wood, Senior
Lttomey (202/452-2412 or 202/452667), Division of Consumer and
ommunity Affairs, Board of Governors
f the Federal Reserve System. For the
earing impaired only,
elecommunications Device for the Deaf
rDD), Dorothea Thompson (202/452544), Board of Governors of the Federal
eserve System, 20th and C Streets,
fW., Washington, DC 20551.
JPPLEM ENTARY INFORMATION:

Inc. C ir Nn 106971




(1) Background
The Home Mortgage Disclosure Act
(HMDA) requires certain depository and
nondepository mortgage lenders that
have offices in metropolitan areas to
disclose their housing-related lending
activity each year. The Housing and
Community Development Act of 1962
(Pub. L. 102-550,106 Stab 3672)
amended HMDA in several respects.
The statutory amendments require
institutions to make a modified version
of their loan application register,
modified in accordance with Board
regulations, available in response to
requests from the public. The
requirement applies beginning with data
submitted for the 1992 calendar year.
Institutions will have a 30-day period in
which to respond. Hie modified
registers for 1992 must be available by
March 31 for requests received on or
before March 1,1993, and within 30
days for requests made after March 1.
The amendments direct 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 statutory revisions also amend
HMDA to require institutions to make
their mortgage loan disclosure
statements publicly available, upon
request, within three business days after
r e c e iv in g them from the Federal
Financial Institutions Examination
Council (FFIEC) later this year.
Regulation C previously required
financial institutions to make their
disclosure statements publicly available
no later than 30 calendar days after they
received them from the FFIEC.
The statutory provisions also address
the time periods within which the
federal supervisory agencies must
complete processing the HMDA data for
1993 and subsequent years so that
disclosure statements and aggregate
tables can be made available to the
public. For HMDA data collected in
1993, disclosure statements must be
available before September 1,1994. The
aggregate data that are compiled by the
FFIEC for each metropolitan area are to
be available (in central data
depositories) before December 1,1994.
For data collected in 1994 and
subsequent years, the statute directs the
federal supervisory agencies to make
every effort to ensure that disclosure

statements are available before July 1
(and that aggregate disclosure reports
before September 1) following the year
for which the data are compiled.
In January 1993 the Board published
a proposal to implement these
amendments (58 FR 31, January 4,
1993). The Board received 85 comment
letters on its proposal. After review of
these comments and upon further
analysis, the Board has adopted a final
rule.
(2) Summary of Regulatory
Amendments
The following material discusses the
amendments to Regulation C section by
section.
Section 203.5 Disclosure and Reporting
Section 203.5(a) Reporting to Agency
As revised, this section requires
institutions to retain copies of their
complete loan application register for a
minimum of three years, instead of two
years. This change is consistent with the
statute.
Section 203.5(b) Public Disclosure of
Statement
The amended statute requires an
institution to make its disclosure
statement publicly available, upon
request, no later than three business
da^s after its receipt from the FFIEC
Although many commenters believed
that three business days is not sufficient
time in which to ensure public
availability, the statutory language
requires the adoption of this rule in lieu
of the 30 calendar days previously
allowed. The Board proposed applying
this three-business-day rule only to
disclosures made available at an
institution’s home office. Lenders also
must make statements available in at
least one branch office in each
additional MSA where they have
institutions receive only one set of
disclosures and must produce copies for
public release and for their own use, the
Board proposed allowing 19 business
days for availability at branch offices.
Based on review of the comments and
its own analysis, the Board believes that
it is reasonable to allow the longer time
period for availability of disclosure
statements at branch offices.
Commenters representing several large
institutions (with disclosure statements

13404

Federal Register / Vol. 58, No. 46 / Thursday, March 11, 1993 / Rules and Regulations

between 6,000 and 8,000 pages long)
stated that applying a three-business
day rule to availability at branch offices
would be extremely difficult, because of
the number of pages to be duplicated
and distributed. Smaller institutions
also voiced concerns with a threebusiness day requirement, due to
limited staff and resources. Moreover,
community organizations and other
members of the public are likely to want
an institution’s hill disclosure
statements, which lenders may but are
not required to make available at branch
offices. For this reason, most requests
may in any event be directed to the
home office.
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, modified to protect
the privacy interests of applicants and
borrowers and to protect institutions
from liability under federal or state
privacy laws. The statute specifies three
items to be deleted—application or loan
number, date application received, and
date of action taken. The Board’s rule
conforms to this provision.
Under the final rule, an institution
must make its modified register
available to the public at its home office
beginning March 31,1993. They will
have the option of preparing a modified
loan application register for public
disclosure prior to receiving a request
for the data. Alternatively, they may
wait until they actually receive a
request, as long as they are able to make
necessary modifications in time to meet
the 30-calendar-day requirement.
Section 203.5(d) Availability of Data
In keeping with the statutory changes,
this section requires institutions to
retain modified loan application register
information and to make it publicly
available for a period of three years.
The Board has incorporated statutory
language regarding the imposition of
fees by an institution. The final rule
makes clear that institutions may
impose a reasonable fee for any cost
incurred in providing or reproducing
the modified loan application register or
the disclosure statement.
Section 203.5(e) Notice of availability
Given the fact that there is no
required or model language for the
lobby notice that institutions must
display at home and branch offices, the
Board has not modified this section.
However, if they so desire, institutions
are free to modify the notice to reflect
the fact that the modified loan



application register data will be
available to the public.
Appendix A to Part 203—Form and
Instructions for Completion of HMDA
Loan/Application Register
III. S u b m issio n o f HMDA-LAR an d P u b lic
R elea se o f D ata

D. Availability of disclosure
statement. The instructions incorporate
the new rule that an institution must
make its disclosure statement available
at its home office within three business
days of receiving it from the FF1EC. The
Board has also specified 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. In the
proposal, the Board solicited comment
on whether the rule could state that
copies of disclosure statements must be
made available at a branch office within
ten business days or within a
“reasonable time’’. The majority of
commenters who addressed the issue
stated that they would need additional
time to ensure availability at branch
offices and favored a precise rule to
provide certainty.
Most commenters believed that ten
business days was an insufficient time
for delivery at the branch offices. Many
requested that the Board retain the
previous 30-calendar-day rule, and a
few believed that no fewer than 15
business days would be necessary for
them to reproduce and deliver the
required copies. Other commenters,
however, objected to allowing longer
than three business days for disclosure
at branch offices. The Board considered
all of these views. Given the clear
Congressional intent to require
availability without undue delay, but at
the same time seeking to minimize costs
and burdens associated with disclosure,
the Board has retained the ten-businessday rule for the disclosure statements at
an institution’s branch offices. Finally,
in the interest of certainty the Board has
defined “business day.”
E. Availability of modified loan
application register. Paragraph 1
specifies the deletions that an
institution must make to its register to
protect the privacy interests of
applicants and borrowers. These
deletions conform to the amended
statute, and correspond to those that the
FFIEC removes in creating the public
tapes of the edited raw data that it
makes available.
F. Location and format of disclosed
data. The statutory amendments
strongly encourage institutions to make
their modified register data available in
census tract order. They allow the
public release of this information (and

of disclosure statements) in any mediaincluding hard copy or in automated
form—that is not prohibited by the
Board. The statute makes clear that
aside from the specified deletions,
institutions are not required to change
the format of the data from that used by
institutions to internally maintain this
information. However, the Board
strongly encourages institutions, when
feasible, to provide these data in the
format requested by the public and in
census tract order.
The agencies make free software
available to covered institutions for
collecting and maintaining their data.
To facilitate compliance with the
disclosure requirement in future years,
the software for use in collecting and
reporting 1993 data allows institutions
to produce modified loan application
registers suitable for public release; it
deletes the applicable fields to protect
the privacy interests of applicants and
borrowers. The software does not sort
the data by census tract, however. Plan;
are under way to add this sorting featur
to the software version thai will be
available for data collection in 1994.
(Software developed by some private
vendors may already offer this
capability.)
The revisions to HMDA require a
clear and conspicuous notice on
disclosure statements that they are
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 FFIEC plans to
add this notice to the disclosure
statements, thus eliminating the need
for financial institutions to supply the
notice.
Several commenters suggested that a
similar notice should be provided on
the modified loan application registers
released by financial institutions, whid
too are subject to review and revision.
Institutions may provide such a notice
on the modified registers, if they wish.
(3) Regulatory Flexibility Act 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 ai
MSA. Covered institutions must provid
their loan/application registers to their
supervisory agencies by March 1 for th(
preceding calendar year. Under this
final rule, they are now also required tc
make a modified version of their registc
available to the public in the manner

Federal Register / Vol. 58, No. 4 6 / Thursday, March 11, 1993 / Rules and Regulations
pecified by the Board. Additionally,
nstitutions must now make their
lisclosure statements available at home
iffices within 3 business days of their
eceipt (and at branch offices, within 10
lusiness day of receipt). Any
ncremental burdens associated with
his final rule result from these statutory
equirements. Small financial
nstitutions will likely have fewer
nodifications to make to their registers,
nd less lengthy registers and disclosure
tatements to make publicly available
Based on their fewer numbers of
Bportable transactions). This rule is
herefore not expected to have a
ignificant impact on the costs of small
nstitutions.
I) Paperwork Reduction Act
In accordance with section 3507 of
lie Paperwork Reduction Act of 1980
14 U.S.C. ch. 35; 5 CFR 1320.13), these
Bvisions have been reviewed by the
loard, under the authority delegated to
ne Board by the Office of Management
nd Budget, after consideration of the
omments received during the public
omment period. The final rule’s
iquirements do not exceed those of the
tatute. Where appropriate, steps have
een taken to minimize any increase in
urden caused by the implementation of
le statute.
ist of Subjects in 12 CFR Part 203
Banks, banking, Mortgages, Reporting
nd recordkeeping requirements.
For the reasons set forth in the
reamble, the Board is amending 12
FR part 203 as follows.

13405

statement from the data you submit.
Institutions Examination Council)
available to the public at its home office Your disclosure statement will be
no later than three business days after
returned to the name and address
receiving it from the Examination
indicated on the transmittal sheet.
Council. A financial institution shall
Within three business days of receiving
also make its disclosure statement
the disclosure statement, you must
available to the public within ten
make a copy available at your home
business days in at least one branch
office for inspection by the public. You
office in each additional MSA where it
also must make the disclosure statement
has offices. The disclosure statement at available, within ten business days after
a branch office need only contain data
receiving it from the FFIEC, in at least
relating to properties in the MSA where one branch office in each additional
the branch office is located.
MSA where you have physical offices.
(c) Public disclosure of loan
For these purposes, a business day is
application register. A financial
any calendar day other than a Saturday,
institution shall make its loan
Sunday, or legal public holiday.
application register available to the
E. Availability of modified loan
public after modifying it in accordance
application register.
with appendix A. An institution shall
1. To protect the privacy of applicants
make its modified register available
and borrowers, an institution must
following the calendar year for which
modify its loan application register by
the data are compiled, by March 31 for
removing the following information
a request received on or before March 1, before releasing it to the public: the
and within 30 days for a request
application or loan number, date
received after March 1. The modified
application received, and date of action
register made available at a branch
taken.
office need only contain data relating to
2. A financial institution must make
properties in the MSA where the branch its modified register available following
office is located.
the calendar year for which the data are
(d) Availability of data. A financial
compiled, by March 31 for a request
institution shall make its modified
received on or before March 1, and
register available to the public for a
within 30 days for a request received
period of three years and its disclosure
after March 1.
statement available for a period of five
F. Location and format of disclosed
years. An institution shall make the data
data. A financial institution must make
available for inspection and copying
a complete copy of its disclosure
during the hours the office is normally
statement and modified register
open to the public for business. It may
available to the public at its home office.
impose a reasonable fee for any cost
Institutions may make these data
incurred in providing or reproducing
available in hard copy or in automated
the data.
form (such as by floppy disk or
(e) Notice of availability. A financial
computer tape). Although you are not
ART 203— HOME MORTGAGE
institution shall post a general notice
required to make the modified loan
about the availability of its disclosure
fSCLOSURE
application register available in censusstatement in the lobbies of its home
1. The authority citation for part 203
tract order, you are strongly encouraged
office and any physical branch offices
mtinues to read as follows:
to do so in order to enhance its utility
located in an MSA. Upon request, it
to users. If you have physical branch
Authority: 12 U.S.C 2801-2810.
shall promptly provide the location of
offices in other MSAs, you must make
the institution’s offices where the
2. Section 203.5 is revised to read as
available, in at least one branch office in
statement is available. At its option, an
illows:
each of those MSAs, either a complete
institution may include the location in
203.5 Disclosure and reporting.
copy of the disclosure statement or the
its notice.
portion of it that relates to properties in
(a) Reporting to agency. By March 1
3.
Appendix A to part 203 is amended
tllowing the calendar year for which
by revising the heading of section III., by that MSA. Similarly, a modified register
at a branch office need only reflect data
le loan data are compiled, a financial
revising section III.D., and by adding
new sections III.E., F., and G., to read as concerning properties within the MSA
istitution shall send two copies of its
where the branch is located.
follows:
implete loan application register (if
You are not required to prepare a
lbmitted in paper form) to the agency
Appendix A to Part 203— Form and
modified loan application register in
ffice specified in appendix A of this
>gulation, and shall retain a copy for its Instructions for Completion of H M D A Loan/ advance of receiving a request from the
Application Register
public for this information, but must be
icords for a period of not less than
*
*
*
*
*
able to respond to a request within 30
tree years. A financial institution need
III. Submission of HMDA-LAR and Public
days.
ily submit one copy when the
Release of Data
lbmission is on computer tape or
G. Posters. Your agency can provide
*
*
*
*
*
skette.x
you with HMDA posters that you can
(b) Public disclosure of statement. A
D. Availability of disclosure
use to inform the public of the
nancial institution shall make its
statem ent The Federal Financial
availability of your disclosure
ortgage loan disclosure statement (to
Institutions Examination Council
statement, or you may print your own
) prepared by the Federal Financial
(FFIEC) will prepare a disclosure
posters.




134G6

Federal Register / Vol. 58, No. 46 / Thursday, March 11, 1993 / Rules and Regulations

By order of the Board of Governors of the
Federal Reserve System, March 3 ,1 9 9 3 .
W illiam W. Wiles,

Secretary of the Board.

[FR Doc. 9 3 - 5 4 0 8 F iled 3-10-93; 8:45 am)

BILUNG CODE 6210-01-f