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FED ER A L RESERVE BANK
O F N EW YORK
Circular No. 8026
January 3, 1977
HOME MORTGAGE DISCLOSURE
Approval of Exemptions from Requirements of the Home Mortgage Disclosure
Act of 1975 and Regulation C
To All Institutions Subject to the Home Mortgage Disclosure Act o f 1975.
and Others Concerned, in the Second Federal Reserve District:
Following is the text of a statement issued December 9, 1976 by the Board of Governors of the Federal
Reserve System:
The Board of Governors of the Federal Reserve System today approved, with certain conditions, applica
tions from California, Illinois, Massachusetts and New York for limited exemptions from the requirements of
the Home Mortgage Disclosure Act and the Board’s implementing Regulation C.
The Act, which became effective last June 28, requires a number of disclosures concerning the location of
properties on which residential mortgage loans are made by depository institutions with $10 million or more
assets, with offices in principal metropolitan areas and that make first mortgage loans on one- to four-family
residences that are Federally insured or regulated.
The Board approved the applications under provisions of the Act specifying that where State law imposes
mortgage and home improvement loan disclosure requirements substantially similar to the requirements of the
Federal Act, the Board may grant exemptions from the requirements of the Home Mortgage Disclosure Act and
Regulation C.
The Board considered, in particular, whether — as required by the Act for exemptions — State law
provides depositors, citizens and public officials
with sufficient information to enable them to determine whether depository institutions are filling their
obligations to serve the housing needs of the communities and neighborhoods where they are located
and to assist public officials in their decisions as to the investment of public funds, with the objective of
improving the private investment environment.
The California exemption — requested by the California Savings and Loan League — applies to Statechartered savings and loan institutions that are subject to the Loan Register and Fair Lending regulations and
directives of the California Department of Savings and Loan. The exemption is subject to revocation if the Board
finds that State law does not impose requirements for data compilation and disclosure that are substantially
similar to the requirements of the Home Mortgage Disclosure Act, or that the State law does not contain
adequate provision for enforcement.
Continuation of the exemption was made dependent upon fulfillment of several conditions set forth in the
Board’s order.
(Over)
The Illinois exemption applies to all State-chartered commercial banks, savings banks and savings and loan
institutions that are subject to the Illinois Financial Institutions Disclosure Act. It is subject to the same
provisions for revocation as the California exemption and its continuation was made subject to two conditions
set forth in the Board’s order.
The Illinois Disclosure Act applies only to counties of more than 100,000 population. The Board’s exemp
tion, therefore, does not apply in counties in standard metropolitan areas with population of 100,000 or less.
The Massachusetts exemption applies to all State-chartered banks and thrift institutions that are subject to
the directives of the Massachusetts Commissioner of Banks. The exemption is subject to the same provisions for
revocation as in the cases of California and Illinois. The Board’s order set forth two conditions for continuation
of the exemption.
At the present time, the Massachusetts Commissioner’s directives apply only in the Boston and Springfield
metropolitan areas, and the Board’s exemption, consequently, applies only to lending institutions in those areas.
The New York exemption applies to all State-chartered commercial banks, mutual savings banks and
savings and loan institutions that are subject to the Department's Supervisory Procedure G 107. It is subject to
revocation on the same grounds as the other exemptions granted today. Its continuation was made subject to an
amendment to the State’s Supervisory Procedure G 107 specified in the Board’s order.
Printed below is an excerpt from the Federal Register of December 21, 1976, containing the text of the
Board of Governors’ Order approving the exemption for New York.
The texts of the Board of Governors’ Orders approving the exemptions for California, Illinois, and
M assachusetts also appear in the December 21 Federal Register; copies of those excerpts will be made
available by our Bank Regulations Department upon request.
PAUL A. VOLCKER,
President.
N ew Y ork
| Docket No. R -0047]
The State of New York, through the
Banking Department, has applied to the
Board for an exemption from the dis
closure requirements of the Home Mort
gage Disclosure Act of 1975 (12 U.S.C.
2801 -2809), as implemented by Regula
tion C (12 CFR 203). The Department’s
application was filed pursuant to section
306'b) of the Act (12 U.S.C. 2805(b))
and section 203.3(a) <3) and the Supple
ment to Regulation C (12 CFR 202.3(a)
(3 >), and is based upon the require
ments of the Department’s Supervisory
Procedure G 107. In its application, the
Department claims that its disclosure
regulations contain requirements that
are substantially similar to those im
posed under the Federal Act and that
State law contains adequate provisions
for the enforcement of the State dis
closure requirements.
Notice of the application, affording
opportunity for interested persons to
submit comments, was published in the
F ed e r a l R e g is t e r on July 20, 1976 (41
FR 29917). The time for filing comments
has expired, and the Board has consid
ered the application and the comments
received in view of the requirements set
forth in section 306(b) of the Act and
section 203.3(a) (3) and the Supplement
of Regulation C.
On the basis of the record and the
condition specified in this Order, the
Board has determined that the regula
tions of the Banking Department impose
disclosure requirements that are sub
stantially similar to those imposed under
the Federal Act and that applicable New
York law contains adequate provisions
for the enforcement of the Department’s
disclosure requirements. Accordingly,
the application Is hereby approved, and
all New York-chartered commercial
banks, mutual savings banks, and sav
ings and loan associations that are sub
ject to the Department's Supervisory
Procedure G 107 are hereby exempted
from the data compilation and disclosure
requirements of the Home Mortgage Dis
closure Act, as Implemented by §§ 203.4
and 203.5 of Regulation C. This determi
nation Is subject to the condition set
forth below and to the provisions of
paragraph (e) of the Supplement to
Regulation C regarding the Board’s righ{
to revoke any exemption if at any time
it determines that applicable State law
in fact does not impose requirements that
are substantially similar to those im
posed under the Home Mortgage Dis
closure Act or that such law does not
contain adequate provision for enforce
ment.
The continuation of the exemption
granted by this Order is subject to the
fulfillment of the following condition:
that the New York State Banking De
partment promulgate an amendment to
the provisions of its Supervisory Pro
cedure G 107 to require depository insti
tutions subject to that Procedure to dis
close all mortgage loans acquired by any
means during each fiscal year, commenc
ing with the last full fiscal year ending
prior to July 1, 1976, in at least the de
tail required pm-suant to Section I of
Appendix 8 of the Procedure. Any
amendments to comply with this condi
tion must become effective by June 1,
1977, and a copy of the amendments
must be filed with the Secretary, Board
of Governors of the Federal Reserve Sys
tem, Washington, D.C. 20551, by April 1,
1977.
By order of the Board of Governors, ef
fective December 8,1976.
T h eodore E. A l l is o n ,
Secretary of the Board.
| FR Doc.76-37461 Filed 12-20-76; 8:45 a m |
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