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F e d e r a l R e s e r v e Ba n k
of
N e w Yo rk
t
Circular No. 9 0 2 8
M arch 2, 1981
]
HOME MORTGAGE DISCLOSURE
Proposed Revisions to Simplify Regulation C
To All Institutions Subject to the Home Mortgage Disclosure Act, and
Others Concerned, in the Second Federal Reserve District:
T he B o ard of G overnors of the F ed eral R eserve System has announced a prop osed revision of its
R egulation C , “H om e M ortgage D isclosure,” design ed to sim plify the regulation and further im plem ent
the H om e M ortgage D isclosure Act.
T he follow ing is q u oted from the text of the B o ard ’s announcem ent:
HMDA requires financial institutions located in standard metropolitan statistical areas (SM SA s) to
disclose publicly the location of their residential mortgage loans.
The Boards proposal followed action by the Congress in October 1980 amending the Act, and
extending its life by five years. The amendments to the Act require (1 ) compilation and disclosure of
mortgage loan data on a calendar (rather than fiscal) year basis; (2) itemization of data by census tract
and county (rather than by census tract and ZIP C od e); (3) the use of a standard disclosure format to be
prescribed by the Federal Reserve; (4) a system of central data repositories in each SMS A, and (5) aggre
gation of mortgage loan data to cover all institutions in each SMS A.
The Board in November amended Regulation C to implement the changeover to calendar year compila
tion of the data required by the Act. The Board’s proposed further revisions of Regulation C implement
the other changes in the Act. At the same time, the Board proposes revisions — in keeping with the Board’s
Regulatory Improvement Project for review and simplification of all of its regulations — to simplify
Regulation C, focus disclosure requirements on those that are most useful and that can be provided at
reasonable cost, and make the regulation more concise. The proposed regulation is nearly a third shorter
than the existing regulation.
The principal proposed revisions of Regulation C would:
— Permit institutions that have been exempt ( on grounds of size, location or provisions of State law,
as provided in the Act) but which lose their exemption, to begin compiling data for the year following the
year in which the exemption is lost (rather than for the year preceding the loss).
— Require disclosures of conventional loans and of FHA, FMHA (Farm ers Home Administration)
and VA loans, but not (as previously required) the sum of the conventional and other types of loans.
__Permit branches of institutions to cease making disclosures of loans in the SMSA in which the home
office is located (avoiding duplicate disclosures in the home office SM SA ).
— Permit, but not require, branch office disclosures to omit all data relating to loans in SMSAs other
than that in which the branch office is located.
— Permit institutions to omit the presently required annual notice to the public concerning the avail
ability of m ortgage loan data (a requirement that is not called for in the Act).
The Board wishes particularly to receive comment on these proposed revisions of the regulation.
Printed on the follow ing p ag es is the sum m ary portion of the text of the B o ard ’s proposal, which has
been reprin ted from the Federal Register. E n closed — for State m em ber banks — is a copy of the
com plete text of the proposal, w hich includes a section-by-section explanation of the proposal, an extensive
regu lato ry analysis, an d the F e d e ral F in an cial Institutions E xam ination C ou n cil’s proposal regard in g the
developm en t of ag gregatio n tables of residential loan d ata to be prod uced for each SM SA ; it will be
fu rn ish ed to others upon requ est directed to the C irculars D ivision of this Bank (T el. No. 212-791-5216).
In connection w ith the B o ard ’s prop osal, p lease note that those States that have alread y b een exem pted
from the requirem ents of the regu lation , includin g the States of C onnecticut, N ew Je rsey , an d N ew York,
m ay b e req u ired to reapply to the B o ard of G overnors in order to retain their exem ptions under a revised
R egu lation C.
C om m ents on the p rop osal sh ould be su bm itted by A pril 15, an d m ay be sent to our C onsum er
Affairs an d B an k R egulation s D epartm ent.
A
n t h o n y
M . S
o l o m o n
,
President.
2
ADDRESS: Comments may be mailed to
FEDERAL RESERVE SYSTEM
12 CFR Part 203
[Regulation C; Docket No. R-0350]
Home Mortgage Disclosure; Revision
of Regulation C and Aggregation
Tables
AGENCY: Board of Governors of the
Federal Reserve System.
Proposed rule.
FOR FURTHER INFORMATION CONTACT:
a c t io n :
summary: The Board’s Regulation C
implements the Home Mortgage
Disclosure Act (HMDA) and requires
depository institutions with offices in
standard metropolitan statistical areas
(SM SAs) to disclose data about their
home mortgage and home improvement
loans each year. The Board is publishing
for comment a revised version of
Regulation C to implement certain
amendments to the act that are
contained in the Housing and
Community Development Act of 1980
(Pub. L 96-399). The statutory
amendments require compilation and
disclosure of loan data by calendar
year, in place of fiscal y e a r itemization
of data by census tract and county,
rather than by census tract and ZIP
code; the use of a standard disclosure
format as prescribed by the Federal
Reserve Board: and a system of central
data repositories in each SMSA.
The am endm ent to the act re q u irin g a
changeover to ca le n d a r year
c o m p ila tio n o f d a ta w as im p lem e nted b y
an am endm ent to R e gu latio n C
p u b lish e d b y the B oard on D ecem ber 8,
1980 (45 FR 80813). T he pro po sal th a t
fo llo w s im p lem e nts the r e m a i n i n g
changes. It in clu d e s an exte nsive
re g u la to ry analysis, to c o m p ly b o th w ith
the exp an de d ru le m a kin g procedures set
fo rth in the B o a rd ’s p o lic y statem e nt o f
January 19,1979 ( 44 FR 3957) an d w ith
the requirem ents o f the R e gu latory
F le x ib ility A c t (Pub. L. 96-354).
The amended act also requires the
Federal Financial Institutions
Examination Council (FFIEC) to
produce, for each SM SA, aggregate
residential loan data by census tract for
all depository institutions covered by
HMDA or sim ilar state regulations. The
Board’s proposal contains a section
(which it is publishing on behalf of the
FFIEC) relating to the aggregation of the
HMDA data; the package includes a
proposed format for the basic
aggregation tables that will be produced
for each SM SA (with various groupings
of the loan data by age of housing stock,
income level, and racial characteristics).
DATE: Comments must be received on or
before April 15,1981.
the Secretary, Board of Governors of the
Federal Reserve System, Washington.
D.C. 20551, or delivered to Room B-2223,
20th & Constitution Avenue. N.W.,
Washington, D.C. between 8:45 a.m. and
5:15 p.m. Comments may be inspected at
Room B-1122 between 8:45 a.m. and 5:15
p.m. All m aterial submitted should refer
to Docket No. R-0350.
Regarding the regulation, contact: John
C. Wood, Senior Attorney (202-4522412), Claudia Yarns, Staff Attorney
(202-452-3667), Jesse Filkins, Staff
Attorney (202-452-3867), or Lyn
Goldfaden, Staff Attorney (202-4523867), Division of Consumer and
Community Affairs, Board of Governors
of the Federal Reserve System,
Washington, D.C. 20551. Regarding the
HMDA-1 disclosure form, contact: Tim
Bumiston, Review Examiner, Division of
Consumer and Community Affairs,
Board of Governors of the Federal
Reserve System, Washington, D.C. 20551
(202-452-3946). Regarding the Board’s
regulatory analysis or the FFIEC’s
proposed aggregation tables, contact:
Glenn Canner, Economist, Division of
Research and Statistics, Board of
Governors of the Federal Reserve
System, Washington, D.C. 20551 (202452-2503).
SUPPLEMENTARY INFORMATION: (1)
G eneral. Regulation C implements the
Home Mortgage Disclosure Act
(HMDA), 12 U.S.C. 2801 et seq., and
requires depository institutions that
have offices in SM SA s and that have
more than $10 million in asse ts to make
annual disclosure of their mortgage
lending activity. On October 8,1980,
provisions of the Housing and
Community Development Act extended
HMDA for a five-year period and made
certain changes in its requirements. The
1980 amendments to HMDA require (1)
that depository institutions change their
data compilation and disclosure from a
fiscal to a calendar year basis,
beginning with 1980 data: (2) that
disclosures be m ade by census tract and
county, rather than by census tract and
ZIP code; (3) that the Federal Reserve
Board prescribe a standard format for
disclosures; (4) that disclosure
statements be made available at central
data repositories: and (5) that aggregate
data tables, covering all institutions in
each SMSA, be prepared and made
available by the Federal Financial
Institutions Examination Council
(FFIEC).
On D ecem ber 8,1980, the Board
p u b lish e d an am endm ent to R egulation
C to im p le m e n t ca le n d a r year
disclosures fo r 1980. T h is means th a t a
covered in s titu tio n w h ic h p re v io u s ly
com p lie d data on a n o n -c a le n d a r year
basis m ust con ert its data c o m p ila tio n
and d isclosu re fro m a fis c a l to a
ca le n d a r ye a r basis b e g in n in g w ith 1980
data. In a d d itio n , such an in s titu tio n w ill
need to prepare a p a rtia l-y e a r d isclosu re
statem ent fo r th a t p o rtio n o f 1979, if any,
w h ic h w as no t cove red b y the
in s titu tio n ’s la s t fis c a l ye a r statem ent.
For exam ple, an in s titu tio n th a t
c o m p ile d and d isclo se d da ta fo r its
1979-80 fis c a l y e a r w i ll need to
red isclo se the 1980 lo a n da ta in a 1980
ca le n d a r y e a r statem ent. H o w e v e r, it
need m ake no n e w d isclo su re o f its 1979
lo a n data. If, on the o th e r hand, the
in s titu tio n ’s la s t fis c a l y e a r statem e nt
w a s fo r 1978-79 lo a n data, then the
in s titu tio n m ust p ro v id e a p a rtia l-y e a r
statem e nt fo r 1979 (fo r th a t p o rtio n o f
1979 not covered by the 1976-79 fiscal
year report) in addition to the statement
for calendar year 1980.
The Board is now publishing a
proposed revision of Regulation C to
implement the remaining statutory
changes. The Board has taken this
opportunity to redraft the regulation in a
simplified, more concise form— in
keeping with the objectives of its
Regulatory Improvement Project—and
believes that the regulation ultimately
adopted will be easier to use. The
proposed regulation is approxim ately 30
percent shorter than the current version.
Because of the statutory requirement
regarding aggregation of data,
institutions will be subject to certain
reporting requirements with respect to
data for 1980 and subsequent years.
Reporting procedures are being worked
out among the Board, the Federal
Reserve Banks, the FFIEC, and the other
financial institution regulatory
agencies— the Comptroller of the
Currency, the Federal Home Loan Bank
Board, the Federal Deposit Insurance
Corporation, and the National Credit
Union Administration. It is envisioned
that the reporting requirement will
involve a depository institution’s
submitting two copies of its disclosure
statement to its HMDA supervisory
agency. One copy will be transmitted by
the agency to the central repository that
will be established in each SM SA, and
the other copy will be sent to the
Federal Reserve Board, which will
aggregate the data on behalf of the
FFIEC. It is anticipated that specific
instructions on procedures for reporting
1980 data w ill be sent b y each
su p e rviso ry agency to the in s titu tio n s
un de r its ju ris d ic tio n b y the end o f
F ebru ary.
A s re q u ire d b y the act, the B oa rd w ill
prescribe, w ith the fin a l a d o p tio n o f a
PKINTED LN MEW YORK, FROM FEDERAL REGISTER, VOL. 46, NO. 27
3
revised Regulation C, a mandatory
disclosure format to be used by
depository institutions for reporting 1981
loan data. A proposed form, included as
Appendix A, is being published for
comment at this time.
Institutions are reminded that while a
standard form is not required for the
disclosure of 1980 data, in order to
facilitate the Board’s aggregation of 1980
data they should use a format sim ilar to
HMDA-1. (It is the Board’s
understanding that most institutions
already do so.)
(2)
P roposed revision. In revising
Regulation C, the Board has attempted
to weigh the compliance costs to
institutions against the benefits to the
public of each regulatory requirement. In
a number of instances where the act
allows exercise of discretion, the Board
proposes to delete or reduce current
regulatory requirements accordingly.
Other requirements have been modified
to ensure that data will be compiled and
reported on a uniform b asis so as to
facilitate aggregation of data.
Some of the principal changes to the
regulation that appear in the proposal
are as follows. First, an institution that
has exempt status and that subsequently
loses its exemption must begin to
compile and report data only for the
calendar year follow ing the loss of
exemption (rather than for the preceding
year, as in the present regulation).
Second, the “ total residential mortgage
loan s” category (that is, the sum of the
FH A /Fm H A /V A loan category and the
conventional loan category) would no
longer be required. Third, geographic
breakdow ns would be given in terms of
census tracts or counties; ZIP codes
could no longer be used. Fourth,
disclosure would no longer be required
at a branch office in the SM SA where
the institution’s home office is located.
Fifth, disclosures at other branch offices
would only be required to give data
about loans on property in the SM SA
where the branch is located. (The home
office disclosure and disclosures at
central data repositories would,
however, contain complete data for all
SM SA s in which the institution has
offices.) Finally, the publicizing of loan
data availability (for example, by
posting a notice in lobbies or by
publication in a newspaper) would no
longer be required.
■
Tuesday
February 10,1981
-
Part II
Federal Reserve
System
Home Mortgage Disclosure, Revision of
Regulation C and Aggregation Tables
[Ref. Cir. No. 9028]
11780
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
FEDERAL RESERVE SYSTEM
12 CFR Part 203
[Regulation C; Docket No. R-0350]
Home Mortgage Disclosure; Revision
of Regulation C and Aggregation
Tables
AGENCY: B oard o f G ove rn ors o f the
F ederal Reserve System.
a c t io n :
Proposed rule.
SUMMARY: The Board’s Regulation C
implements the Home Mortgage
Disclosure Act (HMDA) and requires
depository institutions with offices in
standard metropolitan statistical areas
(SM SAs) to disclose data about their
home mortgage and home improvement
loans each year. The Board is publishing
for comment a revised version of
Regulation C to implement certain
amendments to the act that are
contained in the Housing and
Community Development Act of 1980
(Pub. L. 96-399). The statutory
amendments require compilation and
disclosure of loan data by calendar
year, in place of fiscal year; itemization
of d ata by census tract and county,
rather than by census tract and ZIP
code: the use of a standard disclosure
format a s prescribed by the Federal
Reserve Board; and a system of central
data repositories in each SMSA.
The amendment to the act requiring a
changeover to calendar year
compilation of data w as implemented by
an amendment to Regulation C
published by the Board on December 8,
1980 (45 FR 80813). The proposal that
follows implements the remaining
changes. It includes an extensive
regulatory analysis, to comply both with
the expanded rulemaking procedures set
forth in the Board’s policy statement of
January 19,1979 ( 44 FR 3957) and with
the requirements of the Regulatory
Flexibility Act (Pub. L. 96-354).
T he am ended act also req uire s the
F ederal F in a n c ia l In s titu tio n s
E x a m in a tio n C o u n cil (FFIEC) to
produce, fo r each SM SA, aggregate
re s id e n tia l lo a n da ta b y census tra c t fo r
a ll d e p o sito ry in s titu tio n s covered b y
H M D A o r s im ila r state reg ulation s. The
B o a rd ’s p ro p o sa l co n ta in s a section
(w h ic h it is p u b lis h in g on b e h a lf o f the
FFIEC) re la tin g to the aggregation o f the
H M D A data; the package in clu d e s a
proposed fo rm a t fo r the ba sic
aggregation tables th a t w ill be pro du ced
fo r each S M S A (w ith va rio u s groupings
o f the lo an data b y age o f housing stock,
incom e level, and ra c ia l ch a ra cte ristics).
DATE: Com m ents m ust be rece ive d on o r
before A p r il 15,1981.
ADDRESS: Comments may be mailed to
the Secretary, Board of Governors of the
Federal Reserve System, Washington,
D.C. 20551, or delivered to Room B-2223,
20th & Constitution Avenue, N.W.,
Washington, D.C. between 8:45 a.m. and
5:15 p.m. Comments may be inspected at
Room B-1122 between 8:45 a.m. and 5:15
p.m. All material submitted should refer
to Docket No. R-0350.
FOR FURTHER INFORMATION CONTACT:
Regarding the regulation, contact: John
C. Wood, Senior Attorney (202-4522412), Claudia Y am s, Staff Attorney
(202-452-3667), Je sse Filkins, Staff
Attorney (202-452-3867), or Lyn
Goldfaden, Staff Attorney (202-4523867), Division of Consumer and
Community Affairs, Board of Governors
of the Federal Reserve System,
Washington, D.C. 20551. Regarding the
HMDA-1 disclosure form, contact: Tim
Bumiston, Review Examiner, Division of
Consumer and Community Affairs,
Board of Governors of the Federal
Reserve System, Washington, D.C. 20551
(202-452-3946). Regarding the Board’s
regulatory analysis or the FFIEC’s
proposed aggregation tables, contact:
Glenn Canner, Economist, Division of
Research and Statistics, Board of
Governors of the Federal Reserve
System, Washington, D.C. 20551 (202452-2503).
SUPPLEMENTARY INFORMATION: (1)
G eneral. Regulation C implements the
Home Mortgage Disclosure Act
(HMDA), 12 U.S.C. 2801 et seq., and
requires depository institutions that
have offices in SM SA s and that have
more than $10 million in asse ts to make
annual disclosure of their mortgage
lending activity. On October 8,1980,
provisions of the Housing and
Community Development Act extended
HMDA for a five-year period and made
certain changes in its requirements. The
1980 amendments to HMDA require (1)
that depository institutions change their
data compilation and disclosure from a
fiscal to a calendar year basis,
beginning with 1980 data; (2) that
disclosures be made by census tract and
county, rather than by census tract and
ZIP code; (3) that the Federal Reserve
Board prescribe a standard format for
disclosures; (4) that disclosure
statem ents be m ade available at central
data repositories; and (5) that aggregate
data tables, covering all institutions in
each SMSA, be prepared and made
available by the Federal Financial
Institutions Examination Council
(FFIEC).
O n D ecem ber 8,1980, the Board
p u b lish e d an am endm ent to R egulation
C to im p le m e n t ca le n d a r year
disclosures fo r 1980. T h is means th a t a
covered institution which previously
complied data on a non-calendar year
b asis must conert its data compilation
and disclosure from a fiscal to a
calendar year b asis beginning with 1980
data. In addition, such an institution will
need to prepare a partial-year disclosure
statement for that portion of 1979, if any,
which w as not covered by the
institution’s last fiscal year statement.
For example, an institution that
compiled and disclosed data for its
1979-80 fiscal year will need to
redisclose the 1980 loan data in a 1980
calendar year statement. However, it
need make no new disclosure of its 1979
loan data. If, on the other hand, the
institution’s last fiscal year statement
w as for 1978-79 loan data, then the
institution must provide a partial-year
statement for 1979 (for that portion of
1979 not covered by the 1978-79 fiscal
year report) in addition to the statement
for calendar year 1980.
The Board is now publishing a
proposed revision of Regulation C to
implement the remaining statutory
changes. The Board has taken this
opportunity to redraft the regulation in a
simplified, more concise form—in
keeping with the objectives of its
Regulatory Improvement Project—and
believes that the regulation ultimately
adopted will be easier to use. The
proposed regulation is approximately 30
percent shorter than the current version.
Because of the statutory requirement
regarding aggregation of data,
institutions will be subject to certain
reporting requirements with respect to
data for 1980 and subsequent years.
Reporting procedures are being worked
out among the Board, the Federal
Reserve Banks, the FFIEC, and the other
financial institution regulatory
agencies—the Comptroller of the
Currency, the Federal Home Loan Bank
Board, the Federal Deposit Insurance
Corporation, and the National Credit
Union Administration. It is envisioned
that the reporting requirement will
involve a depository institution’s
submitting two copies of its disclosure
statement to its HMDA supervisory
agency. One copy will be transmitted by
the agency to the central repository that
will be established in each SM SA, and
the other copy will be sent to the
Federal Reserve Board, which will
aggregate the data on behalf of the
FFIEC. It is anticipated that specific
instructions on procedures for reporting
1980 data will be sent by each
supervisory agency to the institutions
under its jurisdiction by the end of
February.
A s required by the act, the Board will
prescribe, with the final adoption of a
11781
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
r e v is e d R e g u la tio n C , a m a n d a t o r y
d is c lo s u r e fo r m a t to b e u s e d b y
§ 203.1
Authority, purpose, an d scope.
S e c t i o n 2 0 3 .1 o f t h e p r o p o s a l
d e p o s it o r y in s titu tio n s fo r r e p o r tin g 1981
c o r r e s p o n d s t o § 2 0 3 .1 ( a ) o f t h e e x i s t i n g
lo a n d a ta . A p r o p o s e d fo r m , in c lu d e d a s
r e g u l a t i o n . C u r r e n t § 2 0 3 .1 ( b ) , d e a l i n g
A p p e n d i x A , is b e i n g p u b l i s h e d f o r
w it h a d m in is t r a t iv e e n fo r c e m e n t , h a s
c o m m e n t a t t h is t im e .
b e e n i n c o r p o r a t e d i n t o p r o p o s e d § 2 0 3 .6 .
In s tit u t io n s a r e r e m in d e d th a t w h ile a
P a r a g r a p h (a ) o f th e p r o p o s a l
s t a n d a r d fo r m is n o t r e q u ir e d f o r th e
e s t a b lis h e s th e a u th o r it y fo r th e
d i s c l o s u r e o f 1 9 8 0 d a t a , in. o r d e r t o
r e g u la t io n . P a r a g r a p h (b ) d e fin e s th e
fa c ilit a t e th e B o a r d ’ s a g g r e g a tio n o f 19 80
p u r p o s e o f th e r e g u la t io n ; th e n e w
d a t a t h e y s h o u ld u s e a fo r m a t s im ila r to
m a t e r ia l is d r a w n fr o m th e s t a t e m e n t o f
H M D A - 1 . (It is t h e B o a r d ’ s
u n d e r s t a n d in g th a t m o s t in s tit u t io n s
p u r p o s e in t h e a c t .
P r o p o s e d p a r a g r a p h (c ) s u m m a r iz e s
a lr e a d y d o s o .)
w h ic h in s titu tio n s a r e c o v e r e d b y th e
(2 )
Proposed revision.
In r e v is in g
R e g u la tio n C , th e B o a r d h a s a tte m p te d
to w e ig h th e c o m p lia n c e c o s t s to
in s titu tio n s a g a in s t th e b e n e fit s to th e
p u b l i c o f e a c h r e g u la t o r y r e q u ir e m e n t . In
a n u m b e r o f in s ta n c e s w h e r e th e a c t
a llo w s e x e r c is e o f d is c r e tio n , th e B o a rd
p r o p o s e s to d e le te o r r e d u c e cu rre n t
r e g u la to r y r e q u ir e m e n ts a c c o r d in g ly .
O th e r r e q u ir e m e n ts h a v e b e e n m o d ifie d
r e g u la t io n a n d g e n e r a lly d e s c r i b e s th e ir
d is c lo s u r e a n d r e p o r tin g r e s p o n s ib ilit ie s .
P r o p o s e d p a r a g r a p h (d ) r e f e r e n c e s th e
c o n te m p la te d s y s te m o f c e n tra l d a ta
r e p o s it o r ie s a n d o f d a ta a g g r e g a tio n ;
t h is i n f o r m a t i o n i s r e l a t e d t o s o m e o f t h e
r e g u la t o r y r e q u ir e m e n ts . T h e B o a r d
b e l i e v e s t h a t i n c l u d i n g it h e r e m a y h e l p
fa c ilit a t e a g g r e g a tio n o f d a ta .
S o m e o f th e p r in c ip a l c h a n g e s to th e
fe d e r a l a g e n c y , o r th a t a r e in t e n d e d to
b e s o ld to F N M A , G N M A , o r F H L M C .
F ed eral H ousing A uthority (FHA),
Farm ers Hom e A dm inistration (FmHAJ,
or V eterans A dm inistration (V A ) loans.
T h e r e a r e n o s u b s t a n t i v e c h a n g e s in t h is
d e fin itio n .
Hom e im provem ent loan.
T h is
d e f i n i t i o n h a s b e e n c h a n g e d in s e v e r a l
w a y s . T h e c u r r e n t r e q u ir e m e n t th a t a
s e c u r e d h o m e im p r o v e m e n t lo a n b e
s e c u r e d b y c o l l a t e r a l o t h e r t h a n a fir s t
lie n o n r e s id e n t ia l r e a l p r o p e r t y h a s
b e e n e lim in a te d . U n d e r th e p r o p o s a l,
fir s t-lie n lo a n s w o u ld b e r e p o r t e d a s
h o m e im p r o v e m e n t lo a n s if th e y
o t h e r w is e m e e t th e h o m e im p r o v e m e n t
lo a n d e fin it io n . T h e B o a r d b e lie v e s th a t
t h is c l a s s i f i c a t i o n i s m o r e m e a n i n g f u l
t h a n th e ir c la s s if ic a t io n a s " r e s id e n t ia l
m o r t g a g e l o a n s ” u n d e r th e e x is t in g
r e g u l a t i o n . H o w e v e r , c o m m e n t is
e x p la in s o m e o f th e r e g u la to r y
s o l i c i t e d o n w h e t h e r t h is c h a n g e w o u l d
r e q u ir e m e n ts a n d m a k e th e r e g u la tio n
m a k e d a ta c o m p ila t io n m o r e d iffic u lt o r
e a s ie r to u s e .
th e d is c lo s u r e s le s s u s e fu l.
to e n s u r e th a t d a ta w ill b e c o m p ile d a n d
r e p o r t e d o n a u n ifo r m b a s is s o a s to
g u a ra n te e d b y H U D , V A , o r a n o th e r
§ 203.2 D efinitions.
S e c t i p n 2 0 3 .2 c o n t a i n s , in a l p h a b e t i c a l
o r d e r , th e d e fin it io n s th a t a p p ly to th e
L a n g u a g e h a s b e e n a d d e d to in c lu d e
r e f i n a n c e d l o a n s in th e d e f in it io n . T h is
m e a n s th a t a r e fin a n c in g fo r h o m e
im p r o v e m e n t p u r p o s e s w o u ld b e
r e g u l a t i o n t h a t a p p e a r in t h e p r o p o s a l
e n tir e r e g u la t io n . S e v e r a l o f th e d e fin e d
r e p o r te d a s a h o m e im p r o v e m e n t lo a n
a r e a s f o l l o w s . F ir s t , a n i n s t i t u t i o n t h a t
t e r m s in t h e c u r r e n t r e g u l a t i o n h a v e
w h e th e r th e o r ig in a l lo a n w a s fo r h o m e
h a s e x e m p t sta tu s a n d th at s u b s e q u e n t ly
b e e n d e le te d o r in c o r p o r a t e d in to oth e r
im p r o v e m e n t, p u r c h a s e o f a d w e llin g , o r
l o s e s it s e x e m p t i o n m u s t b e g i n t o
d e fin itio n s .
Act. This definition cites the original
and the amended statute.
Branch office. A specific exclusion
has been added to this definition for
automated teller machines and other
electronic terminals. Although such
machines may require approval as
branches, they are not offices for
purposes of this regulation.
Administrative offices, data processing
offices, and loan production offices are
not covered because they are not
approved as branches.
D epository institution. T h i s d e f i n i t i o n
s o m e o th e r p u r p o s e . A n e x c lu s io n fo r
c o m p ile a n d r e p o r t d a ta o n ly fo r th e
c a le n d a r y e a r
follow ing
th e lo s s o f
e x e m p t io n (ra th e r th a n fo r th e p r e c e d in g
y e a r , a s in t h e p r e s e n t r e g u l a t i o n ) .
S e c o n d , th e “ to ta l r e s id e n tia l m o r tg a g e
l o a n s ” c a t e g o r y (t h a t is , t h e s u m o f t h e
F H A /F m H A / V A lo a n c a t e g o r y a n d th e
c o n v e n t io n a l lo a n c a t e g o r y ) w o u ld n o
lo n g e r b e r e q u ir e d . T h ir d , g e o g r a p h ic
b r e a k d o w n s w o u l d b e g i v e n in t e r m s o f
c e n s u s tra cts o r c o u n tie s ; Z IP c o d e s
c o u ld n o lo n g e r b e u s e d . F o u rth ,
d is c lo s u r e w o u ld n o lo n g e r b e r e q u ir e d
a t a b r a n c h o f f i c e in t h e S M S A w h e r e
t h e i n s t i t u t i o n ’ s h o m e o f f i c e is l o c a t e d .
F ift h , d i s c l o s u r e s a t o t h e r b r a n c h o f f i c e s
w o u ld o n ly b e r e q u ir e d to g iv e d a ta
a b o u t l o a n s o n p r o p e r t y in t h e S M S A
w h e r e th e b r a n c h is l o c a t e d . (T h e h o m e
o ffic e d is c lo s u r e a n d d is c lo s u r e s at
c e n tr a l d a ta r e p o s it o r ie s w o u ld ,
h o w e v e r , c o n t a i n c o m p l e t e d a t a f o r a ll
S M S A s in w h i c h t h e i n s t i t u t i o n h a s
o f f i c e s .) F in a lly , th e p u b lic iz in g o f lo a n
d a ta a v a ila b ilit y (fo r e x a m p le , b y
p o s t i n g a n o t i c e in l o b b i e s o r b y
p u b l i c a t i o n in a n e w s p a p e r ) w o u l d n o
lo n g e r b e r e q u ir e d .
T h e s e p r o p o s e d c h a n g e s are
c e r t a in t y p e s o f r e f i n a n c e d l o a n s is
c o n t a i n e d i n p r o p o s e d § 2 0 3 .4 ( c ) ( 3 ) .
L ik e t h e e x is t in g d e f in it io n , th e
p r o p o s a l r e q u ir e s b o t h th a t th e p u r p o s e
o f th e lo a n b e fo r h o m e im p r o v e m e n t
an d
th a t th e lo a n b e r e c o r d e d a s a h o m e
im p r o v e m e n t lo a n o n th e in s tit u t io n ’ s
b o o k s . (T h e r e c o r d i n g r e q u ir e m e n t is
s a t is fie d e v e n if th e in s titu tio n u s e s
s o m e o th e r term — s u ch a s
“ m o d e r n iz a tio n lo a n s ” — to id e n tify
lo a n s th a t fa ll w ith in th e d e fin it io n o f
h o m e im p r o v e m e n t lo a n s .) W it h r e g a r d
to th e s ta te d p u r p o s e o f a lo a n , th e w o r d
h a s b e e n r e v i s e d . F ir s t , a r e f e r e n c e t o
“ a p p lic a t io n ” r e p la c e s th e w o r d
fe d e r a lly r e la te d m o rtg a g e lo a n s h a s
“ t r a n s a c t io n .” T h e B o a r d b e l i e v e s th a t
b e e n a d d e d . A s e c o n d c h a n g e is th e
" a p p lic a t io n ” m o r e p r e c is e ly d e fin e s th e
in c o r p o r a t io n o f B o a r d I n te r p r e ta tio n
t im e a t w h ic h th e in t e n t o f th e b o r r o w e r
is e x p r e s s e d .
§ 2 0 3 .0 0 1 , c o n c e r n i n g t h e t r e a t m e n t o f
m a jo r it y -o w n e d s u b s id ia r ie s (b o th
E x is tin g R e g u la t io n C p r o v id e d a
d e p o s ito r y a n d n o n -d e p o s ito r y ) o f a n
s p e c ia l t r a n s it io n ru le , a p p l i c a b l e o n l y
in s tit u t io n .
t o t h e fir s t d i s c l o s u r e y e a r , th a t a l l o w e d
“ F e d e r a lly r e la t e d m o r t g a g e l o a n ” is
u s e o f a sta te la w d e fin itio n o f h o m e
d e f i n e d in a f o o t n o t e (it a p p e a r s a s a
im p r o v e m e n t lo a n s . T h e B o a r d b e lie v e s
s e p a r a t e l y d e f i n e d t e r m in t h e e x i s t i n g
it is n o t n e c e s s a r y t o i n c l u d e a s p e c i a l
r e g u la t io n ) a n d is s u b s t a n t ia lly s im ila r
r u l e o f . t h i s s o r t in t h e r e v i s e d r e g u l a t i o n .
t o t h e d e f i n i t i o n in t h e R e a l E s t a t e
H o w e v e r , c o m m e n t is s o l i c i t e d o n
S e tt le m e n t P r o c e d u r e s A c t . A n
w h e t h e r a n y p r o b l e m s c u r r e n t l y e x i s t in
t h is a r e a .
in s tit u t io n q u a lif ie s a s a d e p o s i t o r y
in s tit u t io n fo r R e g u la t io n C p u r p o s e s i f
Home p u rch ase loan.
T h is d e fin it io n
d i s c u s s e d in g r e a t e r d e t a i l b e l o w , a l o n g
(1 ) it m a k e s f i r s t - l i e n m o r t g a g e l o a n s o n
c o r r e s p o n d s to th e e x is t in g d e fin it io n o f
w i t h o t h e r c h a n g e s c o n t a i n e d in t h e
l - t o - 4 f a m i l y d w e l l i n g s in t h e U n i t e d
r e s i d e n t i a l m o r t g a g e l o a n . It h a s b e e n
p r o p o s e d r e v is io n . T h e d is c u s s io n
S t a t e s o r P u e r t o R i c o , a n d (2 ) it is
s u b s t a n t ia lly r e w r it t e n a n d r e s t r u c t u r e d ;
f o l l o w s th e o r d e r o f s e c t io n s o f th e
fe d e r a lly in s u r e d o r r e g u la te d , o r
th e fir s t s e n t e n c e s t a t e s w h a t is i n c l u d e d
p r o p o s e d r e g u la t io n .
o r ig in a te s lo a n s th a t a r e in s u r e d o r
a n d th e s e c o n d w h a t is e x c lu d e d .
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
11782
P a r a g r a p h (a )(1 ) e x e m p t s a n y
T h e r e a re s ix r e v is io n s w o r th y o f
I n t e r p r e t a t i o n § 2 0 3 .0 0 2 w o u l d n o l o n g e r
n o t e . F ir s t , t h e d e f i n i t i o n i n i t i a l l y
d e p o s it o r y in s titu tio n w ith a s s e ts o f $10
b e a p p l ic a b l e . I f th e r u le is a d o p t e d a s
e s t a b lis h e s th a t o n ly lo a n s fo r th e
m illio n o r l e s s . T h e o n l y c h a n g e fr o m th e
p r o p o s e d , t h is i n t e r p r e t a t i o n w i l l b e
p u r c h a s e o f r e s i d e n t i a l d w e l l i n g s fa l l
c u r r e n t r e g u la t io n is th e s u b s t it u t io n o f
r e s c in d e d .
w i t h i n t h is c a t e g o r y . A s n o t e d a b o v e ,
D e c e m b e r 3 1 f o r “ t h e l a s t d a y o f it s l a s t
fir s t -lie n lo a n s fo r r e p a ir o r r e m o d e lin g
fu l l f i s c a l y e a r ” a s t h e d a t e f o r
p u r p o s e s w o u l d n o w b e i n c l u d e d in t h e
d e t e r m in in g th e in s tit u t io n ’ s a s s e t s iz e .
d e fin it io n o f h o m e im p r o v e m e n t lo a n s .
P a r a g r a p h (a )(2 ) p r o v id e s a n
T h e r e is n o e x p r e s s p r o v i s i o n o n
w h e n a n e x e m p t io n , o n c e a p p lic a b le ,
t a k e s e f f e c t . T h e in te n t, h o w e v e r , is th a t
a n e x e m p tio n w o u ld b e c o m e e ffe c tiv e
e x e m p t io n fo r a n y d e p o s it o r y in s tit u t io n
im m e d ia t e ly . T h e r e fo r e , th e in s titu tio n
i n c o r p o r a t e s c u r r e n t § 2 0 3 .2 ( i ), d e f i n i n g
th a t d o e s n o t h a v e a h o m e o r b r a n c h
w o u l d n o t r e p o r t it s d a t a f o r t h a t y e a r o r
r e s id e n t ia l r e a l p r o p e r t y . T h ir d , th e
o f f i c e in a n S M S A . T h e s u b s t i t u t i o n o f
f o r s u b s e q u e n t y e a r s , s o l o n g a s it
cu r r e n t r e q u ir e m e n t th a t a h o m e
t h e U .S . D e p a r t m e n t o f C o m m e r c e f o r
r e m a in s e x e m p t.
p u r c h a s e lo a n b e s e c u r e d b y a fir s t lie n
th e O f f ic e o f M a n a g e m e n t a n d B u d g e t
h a s b e e n e lim in a te d ; a n y s e c u r e d h o m e
r e fle c t s th e fa c t th a t th e D e p a r tm e n t o f
S e c o n d , a p a r e n th e tica l p h ra s e
§
203.4
Compilation o f loan data.
S e c t i o n 2 0 3 .4 s e t s f o r t h t h e r u l e s f o r
p u r c h a s e lo a n , r e g a r d le s s o f th e ty p e o f
C o m m e r ce , ra th er th a n O M B , n o w
lie n , w o u ld b e c o v e r e d b y th e d e fin it io n .
d e fin e s S M S A s .
T h e e x e m p t i o n s e t f o r t h in p a r a g r a p h
th e c o m p ila t io n o f lo a n d a ta a n d
§ 2 0 3 .2 ( h ) ( i ii ) , o f l o a n s f o r b u s i n e s s o r
(b )
s e c tio n h a s b e e n re stru cte re d a n d
F o u r t h , t h e e x c l u s i o n in e x i s t i n g
c o r r e s p o n d s t o e x i s t i n g § 2 0 3 .3 ( a ) ( 3 ) .
d e s c r i b e s w h a t d a t a a r e in c lu d e d . T h is
c o n s u m e r p u r p o s e s u n r e la t e d to th e
It i s a v a i l a b l e t o s t a t e - c h a r t e r e d
s ig n ific a n t ly r e w r it t e n , a n d c o n t a in s
p u r c h a s e o r im p r o v e m e n t o f re s id e n tia l
d e p o s it o r y in s titu tio n s th at a r e s u b je c t
s o m e s u b s ta n tiv e c h a n g e s . C u rren t
re a l p ro p e r ty , h a s b e e n d e le te d . T h e
to s ta te la w s c o n t a in in g r e q u ir e m e n t s
§ 2 0 3 .4 ( a ) ( 2 ) (i) a n d ( ii) a n d ( a ) ( 4 ) ( i i )
B o a r d b e lie v e s th a t a n e x p r e s s
s u b s t a n t ia lly s im ila r to R e g u la tio n C
h a v e b e e n d e le te d a s o b s o le t e , s in ce
e x c l u s i o n is u n n e c e s s a r y b e c a u s e o f t h e
a n d m a k in g a d e q u a t e p r o v is io n fo r
t h e y a r e t r a n s it io n r u le s r e la t e d to th e
c h a n g e in t h e d e f i n i t i o n l i m i t i n g it t o
e n fo rc e m e n t. T h e p r o c e d u r e s fo r
o r ig in a l im p le m e n t a t io n o f th e
lo a n s fo r th e p u r c h a s e o f r e s id e n tia l
a p p ly in g to th e B o a r d fo r e x e m p t s ta tu s
r e g u la tio n .
p ro p e rty .
a r e s e t f o r t h in p r o p o s e d § 2 0 3 .3 0
F if t h ,t h e t e m p o r a r y - f i n a n c i n g
e x c lu s io n — fo r s h o r t-te r m le n d in g w h e r e
a s o u r c e o f p e rm a n e n t fin a n c in g w ill
l a t e r b e r e q u i r e d — h a s b e e n fu r t h e r
c la r ifie d . In th e c a s e o f c o n s t r u c t io n
l o a n s , o n l y t e m p o r a r y f i n a n c i n g is
e x c lu d e d fr o m c o v e r a g e . A r e fe r e n c e to
b r id g e lo a n s m a k e s c le a r th a t th e
e x c lu s io n a p p lie s to lo a n s fo r th e
p u r c h a s e o f a n e w h o m e p e n d in g r e c e ip t
o f p r o c e e d s fr o m th e s a le o f a p r io r
r e s i d e n c e . W h e t h e r o r n o t t h e r e i s a fi r m
ta k e -o u t c o m m itm e n t fo r p e rm a n e n t
fin a n c in g , th e B o a r d c o n s id e r s th e s e
te m p o r a r y lo a n s to b e o th e r th a n
m o r t g a g e lo a n s , a n d b e l i e v e s th e ir
in c lu s io n a s h o m e p u r c h a s e lo a n s w o u ld
d is to r t th e d a ta , c o n t r a r y to th e
p u r p o s e s o f th e a c t
S ix th , th e r e fe r e n c e to r e fin a n c e d
( S u p p l e m e n t I).
The amended act requires that loan
data for all depository institutions,
including those which receive an
exemption from the federal law, be
aggregated and that disclosure
statem ents be made available at the
central repository in each SM SA. To
implement these requirements,
§ 2 0 3 .3 ( b ) limits the state law exemption
by providing that exempt institutions
shall submit the data required by their
state law to their state supervisory
agencies, which in turn will forw ard the
data to the appropriate central
repositories and, for aggregation, to the
Federal Reserve.
E x i s t i n g § 2 0 3 .3 ( b ) r e q u i r e s t h a t a n
P a r a g r a p h (a ) o f th e p r o p o s a l
d e s c r ib e s th e m o r t g a g e lo a n d a ta to b e
c o m p i l e d . It r e q u i r e s d a t a c o m p i l a t i o n
o n a c a le n d e r y e a r b a s is , ra th e r th a n
fis c a l y e a r , to im p le m e n t a s t a t u t o r y
c h a n g e . T h e e x is t in g r e g u la tio n a lr e a d y
r e f l e c t s t h i s c h a n g e in § 2 0 3 .4 ( d ) ( 1 ) ,
w h ic h w a s p u b lis h e d b y th e B o a r d o n
D e c e m b e r 8 , 1 9 8 0 (4 5 F R 8 0 8 1 3 ) .
The proposal (like the existing
regulation) requires that loan data be
shown in terms of the number of loans
and the total dollar amount of loans.
T h e d e fin it io n o f “ t o ta l d o lla r a m o u n t ,”
s e t f o r t h i n e x i s t i n g § 2 0 3 .4 ( a ) ( 3 ) ,
a p p e a r s a s f o o t n o t e 2 in t h e p r o p o s a l .
P a r a g r a p h (b ) o f th e p r o p o s a l,
c o n c e r n in g fo r m a t a n d it e m iz a tio n o f
d a ta , in c o r p o r a t e s p o r t io n s o f e x is t in g
i n s t i t u t i o n l o s i n g it s e x e m p t i o n b e g i n
§ 2 0 3 .4 ( a ) a n d ( c ) a n d c o n t a i n s a
c o m p lia n c e b y c o m p ilin g a n d d is c lo s in g
n u m b e r o f c h a n g e s . It r e q u i r e s t h a t d a t a
b e c o m p ile d s e p a r a te ly fo r o r ig in a tio n s
lo a n s h a s b e e n c h a n g e d . T h e cu rren t
d a t a f o r t h e y e a r p r e c e d i n g t h e y e a r in
d e fin it io n in c lu d e s o n ly fir s t -lie n
w h ic h th e e x e m p t io n w a s lo s t . P r o p o s e d
a n d p u r c h a s e s (a s d o e s th e p r e s e n t
r e fin a n c in g s . T h e p r o p o s e d d e fin itio n
p a r a g r a p h ( c ) w o u l d c h a n g e th is ru le . A n
r e g u la tio n ), a n d r e q u ir e s th e u s e o f a
w o u ld in c lu d e a ll r e fin a n c in g s f o r h o m e
in s tit u t io n w o u ld in s t e a d r e p o r t
s t a n d a r d fo r m a t fo r d is c lo s u r e s . (T h e
p u r ch a se p u rp o s e s, o th e r th an th o se
b e g i n n i n g w i t h t h e d a t a f o r t h e fi r s t
p r o p o s e d fo r m a p p e a r s a s A p p e n d i x A .)
e x p r e s s ly e x c lu d e d u n d e r p r o p o s e d
c a l e n d e r y e a r a f t e r t h e e x e m p t i o n is
N o t e t h a t t h is w o u l d b e a r e q u i r e d f o r m ,
§ 2 0 3 .4 ( c ) ( 3 ) .
T h e B o a r d s o lic it s c o m m e n t o n th e
lo s t . F o r e x a m p le , i f o n A p r il 1 ,1 9 8 2 , a n
u n l i k e F o r m H M D A - 1 in e x i s t i n g
in s tit u t io n o p e n s a h o m e o r b r a n c h
R e g u la tio n C . T h e u se o f a s ta n d a r d
e x te n t to w h ic h a n y o f th e s e p r o p o s e d
o f f i c e in a n S M S A , a n d t h e r e b y l o s e s it s
r e p o r t i n g f o r m a t is n e c e s s a r y t o
c h a n g e s w o u ld in c r e a s e in s titu tio n s ’
e x e m p t i o n , it w o u l d h a v e t o c o m p i l e a n d
fa c ilit a t e th e a g g r e g a tio n o f d a ta
c o s t s , c r e a t e d i f f i c u l t i e s in d a t a
r e p o r t it s 1 9 8 3 d a t a . T h i s r e p o r t w o u l d
m a n d a t e d b y th e a m e n d e d a c t.
c o m p ila t io n , o r d im in is h th e u tility o f th e
h a v e t o b e a v a i l a b l e b y M a r c h 3 1 ,1 9 8 4 ,
d is c lo s u r e s .
State. T h e d e f i n i t i o n i s u n c h a n g e d
in a c c o r d a n c e w i t h § 2 0 3 .5 ( a ) a n d ( d ) .
r e q u ir e d g e o g r a p h ic it e m iz a tio n o f d a ta .
S im ila r ly , if o n D e c e m b e r 3 1 ,1 9 8 2 , a n
A s in t h e e x i s t i n g r e g u l a t i o n , t h e g e n e r a l
fr o m th e c u r r e n t r e g u la tio n .
in s t it u t io n ’ s a s s e t s e x c e e d $ 1 0 m illio n
r u l e is t h a t d a t a m u s t b e b r o k e n d o w n
f o r t h e f i r s t t im e , t h e i n s t i t u t i o n w o u l d
b y th e S M S A w ith in w h ic h th e p r o p e r t y
b e r e q u i r e d t o c o m p i l e it s 1 9 8 3 d a t a a n d
th a t s e c u r e s th e lo a n ( o r th a t is t o b e
r e p o r t it b y M a r c h 3 1 , 1 9 8 4 . T h e B o a r d
i m p r o v e d ) is l o c a t e d ; w i t h i n e a c h S M S A
o f d e p o s it o r y in s titu tio n s th a t w o u ld b e
b e l i e v e s t h a t t h e h ig h c o s t o f c o m p i l i n g
th e d a t a is to b e fu r t h e r i t e m iz e d b y th e
e x e m p t fr o m th e r e q u ir e m e n ts o f
d a t a f o r a p e r i o d a l r e a d y e n d e d ju s t i f i e s
c e n s u s t r a c t in w h i c h t h e p r o p e r t y is
R e g u la tio n C . T h e c a t e g o r ie s are
th e p r o p o s e d c h a n g e .
lo c a t e d .
e s s e n t i a l l y t h e s a m e a s in t h e e x i s t i n g
Because of the revision regarding loss
of exemption, existing Board
r e p o r t in g ; t h e s e d iffe r to s o m e e x t e n t
§
203.3
Exemptions.
T h is s e c t io n e s t a b lis h e s th e c a t e g o r ie s
r e g u la tio n .
P a r a g r a p h (b )(1 ) d e s c r ib e s th e
T h e r e a re e x c e p t io n s to c e n s u s tra ct
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
from the existing regulation. First, loans
relating to property in any county
having a population of 30,000 or less
must be itemized by county rather than
by census tract. (The term “county”
includes similar state political
subdivisions such a s parishes.) This
exception implements an amendment to
the act.
Second, loans on property located in
an area that has not been census tracted
(even if in a county with a population
over 30,000) also must be itemized by
county. The second exception, made
necessary by the fact that some areas
have not been assigned census tract
numbers, corresponds to the current
provision in Regulation C permitting
compilation on the b asis of ZIP codes
for untracted areas. The Board believes
that compilation of data for untracted
areas by county rather than by ZIP code
will result in simpler compilation
procedures and in more understandable
mortgage loan disclosures. If the ZIP
code provision were carried over from
the existing regulation, the resulting
disclosures might well contain three
different types of geographic
breakdow ns—census tracts, counties,
and ZIP codes.
The rule set forth in proposed
paragraph (b)(l)(ii) is unchanged f^om
present Regulation C. For loans on
property located outside any S M S A in
which the institution has a home or
branch office, the data need not be
broken down but m ay simply be
reported a s a lump sum figure covering
all such loans. This category includes
both loans on property outside any
S M S A and loans on property in an
S M S A where the institution has no
home or branch office.
Paragraph (b)(2) requires that, for
each geographic category (census tract,
county, SM SA total, and outside-SMSA),
loan data must be further itemized by
type of loan. The loan categories are
substantively unchanged from those in
the existing regulation except that the
“ all residential mortgage loans”
category, described in existing
§ 203.4(a)(l)(iii), has been deleted. Since
that category represents the sum of the
preceding two home purchases
categories (FH A /Fm H A/VA loans and
conventional mortgage loans), it does
not provide new or different
information, and hence is unnecessary.
In addition, deletion of this category will
simplify the required aggregation of
data.
Paragraph (b)(2)(v) generally requires
an institution to present, a s an
addenduim item, data about loans made
to non-occupant borrowers. The second
sentence of this paragraph expressly
excludes loan data in the outside-SM SA
category from this requirement.
Footnote 3 to paragraph (b)(2)(v)
incorporates part of existing § 203.4(c).
The footnote permits an institution to
assum e, unless its records on a
particular loan contain information to
the contrary, that a purchased loan w as
made to an occupant borrower. The
phrase in existing paragraph (c) limiting
this presumption to loans on l-to-4
family dwellings is believed to be
unnecessary, since paragraph (b)(2)(v)
applies only to such loans. The portion
of existing paragraph (c) relating to
loans originated prior to June 28,1976,
has been deleted a s obsolete.
Paragraph (c) lists certain mortgage
loan data that are to be excluded from
d ata compilation; it corresponds to
existing § 203.4(a)(4)(i). Paragraphs (c)
(1) and (3), regarding loans on which the
institution acts in a fiduciary capacity
and certain refinancings That involve no
increase in the outstanding principal
balance, are carried over without
change from the existing regulation.
Paragraph (c)(2) specifically excludes
loans on unimproved land, and
corresponds to a limitation to improved
real property contained in the existing
definition of residential real property. A
specific exclusion is necessary because
the proposed definition of “home
purchase loan” (which incorporates the
existing residential real property
definition) contains no such limitation.
Paragraph (d), defining geographic
units for compilation purposes, parallels
§ 203.4(b) of the existing regulation. The
U.S. Department of Commerce is now
responsible for defining SM SA
boundaries and the reference to the
Office of Management and Budget has
been changed accordingly.
The proposed regulation provides that
for compilation purposes, SM SA
boundaries are those in effect on
January 1 of the year to which the data
relate, reflecting the statutory change
from fiscal to calendar year compilation.
Thus, even if a county becom es part of
an SM SA during a reporting year, all
loans m ade in the county are to be
reported fo r that y e ar as being outside
the SM SA.
Paragraph (d)(2) requires that 1980
census tract m aps be used for
compilation purposes. Because tract
m aps for the 1980 census are not yet
available, however, footnote 4 provides
that the 1970 census tract m aps shall be
used until the complete 1980 series is
available.
Footnote 4 also requires that, for any
p reviou sly untracted area, an institution
use the census tract update available on
January 1 of the year in which the loan
w as made. This requirement applies
11783
only with respect to areas that becam e
tracted for the first time after the 1970
census. A reas that were tracted for the
1970 census are to be reported using
1970 census tracts, not any later
updates. This rule is necessary to permit
preparation of aggregate data tables
using demographic data obtained in the
census. The sam e rule will apply to the
1980 census tracts when institutions
begin using 1980 census tracts.
Section 203.4(b)(3) of the existing
regulation, dealing with applicable ZIP
codes, has been deleted a s unnecessary.
Section 203.4(b)(4) of the existing
regulation permitted a depository
institution to use m aps, directories, or
computer programs that contained more
recent definitions of SM SA areas than
those in effect on the first day of the
reporting year. This option w as
available if the depository institution
met certain other reporting
specifications and disclosed that an
updated SM SA definition w as used.
Because of the need for uniformity in
aggregation, the Board has eliminated
this option from the proposed regulation.
A s noted above, the proposed regulation
instead requires that depository
institutions all use the SM SA definition
in effect on January 1 of the calendar
year to which the disclosure statement
relates, so that all the reports for a given
SM SA will be consistent with each
other.
A depository institution may still use
directories or computer programs
instead of m aps to tabulate loans by
SM SA, census tract, or county, provided
the correct SM SA and census tract
definitions have been incorporated into
the directory or program.
§ 203.5 D isclosu re an d reporting
requirem ents.
The title of § 203.5 h as been changed
to reflect that, under the am ended act,
depository institutions are required not
only to disclose mortgage loan data at
certain offices, but also to report the
data for purposes of availability at
central data repositories and for multiinstitutional data aggregation.
Paragraph (a) deals with timing and
retention requirements for disclosures,
and reflects the change in b asis for
compilation from fiscal year to calendar
year. It sets March 31 a s the due date for
the annual disclosure statements, thus
retaining the 90-day interval currently
provided by the regulation.
Paragraphs (a)(l)(i) and (2) of the
existing regulation contain special rules
dealing with the first-year disclosures
under Regulation C. They are obsolete,
and have been deleted. Paragraph
(a)(l)(iii) of the existing regulation
provides a special rule on the due date
11784
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
fo r disclosu res w h e n an in s titu tio n loses
an exe m ptio n. It is no lo ng er needed
u n d e r the proposal, since a n y in s titu tio n
th a t loses its e xe m p tio n w o u ld com p ile
da ta b e ginning w ith the fo llo w in g
c a le n d a r year.
The proposal describes the retention
period a s five years from the disclosure
due date. The retention period applies
only to the disclosure statements at the
depository institutions. The act and
regulation do not set a retention period
for data on file at the central data
repositories.
Paragraph (b), concerning the offices
at which disclosure statements are to be
m ade available, h as been revised
substantially. Proposed paragraph (b)(2)
would no longer require that a
disclosure statement be made available
at a branch office that is in the sam e
SM SA a s the home office. The Board
believes that this requirement is not
m andated by the statute, and is
unnecessary, given the new provision
for central data repositories.
Proposed paragraph (b)(1), concerning
the disclosures at the home office,
requires availability of the entire
statement, a s does existing Regulation
C. However, paragraph (b)(2) would
permit a branch office disclosure
statement to omit all the data relating to
property located outside its SM SA. The
proposal thus differs from the rule in
existing § 203.5(b)(l)(ii), which requires
at a branch office either (1) the entire
disclosure statement or (2) a statement
showing complete itemization by census
tract or ZIP code for the SM SA where
that branch office is located, total
figures by SM SA for other SM SA s in
which the institution has offices, and a
total figure for all loans outside such
SM SA s.
The Board believes that the proposed
rule is easier to understand and might
make preparation of disclosures easier
for institutions, without diminishing the
utility of the data disclosure. It would
cut down to some extent the length of
the disclosure statem ents at branch
offices. Information concerning
mortgage loans outside a particular
SM SA will be available both at the
institution’s home office and at the
central data repository for any SM SA in,
which the institution has offices.
Under the proposal, institutions would
continue to have the option to make the
entire disclosure statement available at
branch offices, or to provide more than
the minimum disclosures required.
Paragraph (b)(3) is substantively
unchanged from existing § 203.5(b)(4). It
requires an institution to respond
promptly to requests for information
about the offices where its disclosure
statem ents are available.
“ Existing § 203.5(b)(2) has been
deleted. That paragraph sets forth
special requirements for public
availability of disclosures of depository
institutions with offices inaccessible to
the general public (such a s some credit
unions). The intent of the act, in part, is
to provide consumers with information
to aid them in deciding where to deposit
their funds. The Board believes that
when an institution does not accept
deposits from the general public, it is
le ss essential to m ake its statements
available in a public place. In addition,
the disclosure statem ents o f these
institutions will now be available to the
general public at the central data
repositories. (These institutions are
subject, of course, to the general
requirements on location of disclosure
statem ents at home and branch offices.)
Existing § 203.5(b)(3), which requires a
depository institution to notify its
depositors at least once each year of the
availability of its mortgage loan data,
has also been deleted. The notification
is not required by the act and the Board
believes it is not necessary in light of the
establishment of the central data
repositories. It is contemplated that the
availability of mortgage loan data at the
central data repositories, and their
location, will be publicized.
Paragraph (c), concerning
photocopying and hours of availability,
incorporates minor language changes for
clarification but is substantively
unchanged from the current regulation.
Paragraph (d) has no counterpart in
the current regulation. It provides that a
depository institution must send two
copies of its entire disclosure statement
to the appropriate regional office of its
supervisory agency (as listed in
appendix BJ.This transmittal to the
supervisory agency would be the first
step in the process by which disclosure
statem ents will become available at
central data repositories and data will
be aggregated to cover all reporting
institutions in each SMSA.
§ 203,6 A dm inistrative enforcem ent an d
san ction s fo r violations.
A side from minor editorial changes,
these provisions mirror their
counterparts in §§ 203.1(b) and 203.6 of
the existing regulation. Paragraph (a),
which sets forth the agencies
responsible for enforcing the act and
Regulation C, has been placed in this
section to make its structure consistent
with other recent Board regulations.
Paragraph (b) corresponds to existing
§ 203.6. It notes that depository
institutions found to be in violation are
subject to administrative sanctions as
set forth in § 305 of the act. It also
provides relief for an unintentional error
in c o m p ila tio n as long as the d e p o sito ry
in s titu tio n m a in ta in s procedures
re a so n a b ly ad ap te d to a v o id an y such
error.
§ 203.30 Procedures fo r an exem ption
application pursuant to § 203.3(b) o f
R egulation C (Supplem ent I).
The act and § 203.3(b) of the
regulation provide an exemption for
state-chartered institutions in cases
where the Board determines that the
state law contains requirements
substantially similar to those imposed
by Regulation C, with adequate
provision for enforcement. This
supplement describes the procedures for
seeking a Board determination. The
changes made to paragraphs (a),(b), and
(c) simplify and shorten the text. The
few substantive changes to the
supplement will be discussed below.
Paragraph (d) corresponds to a
portion of paragraph (d) of the current
supplement, and is unchanged except for
editorial revisions and the insertion of a
parenthetical reference to the fact that,
under proposed § 203.3(B), an exempt
institution is required to send the staterequired mortgage loan data to its state
supervisory agency.
Paragraph (e) corresponds to existing
paragraphs (d)(2) and (e). A new
provision clarifies that the Board may
require a reapplication for an exemption
because of amendments to the act or
regulation. Depending upon the
circumstances, the Board may require a
complete reapplication, or m ay simply
require updating of information in the
areas affected by the amendments. (The
Board is currently considering which of
these actions would be appropriate with
regard to the presently exempt states in
view of the recent amendments to the
act and these proposed amendments to
the regulation.)
The remainder of proposed paragraph
(e) is substantively unchanged, except
for the addition of paragraph (e)(5) to
address situations when certain of the
revocation procedures would be
inappropriate.
A ppendix A—Form HM DA-1 (revised)
an d instructions.
The proposed s ta n d a rd re p o rtin g and
disclosu re fo rm is s im ila r to the
g u id e lin e fo rm th a t appears as an
a p p e n d ix to e x is tin g R egu latio n C. Some
o f the colum n headings have been
re vised to re fle c t changes in te rm in o lo g y
in the re g u la tio n its e lf, and the e xistin g
“ to ta l re s id e n tia l m ortgage lo a n s”
co lum n has been de le te d becaused o f a
proposed change in the re g u la to ry
req uire m en t.
T he in s tru c tio n s have been changed to
re fle ct changes in the re g u la to ry
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
requirements, and are more detailed
than the existing instructions. The
purpose of this change is to make the
form easier to use.
A ppendix B—F ed eral enforcem ent
agencies.
Proposed Appendix B lists the federal
enforcement agencies for each type of
depository institution covered by the
regulation. There is no substantive
change from the correspondihg list in the
present regulation.
(3)
R egulatory an aly sis. The
regulatory analysis that follows is
published pursuant to the Board’s policy
statement of January 19,1979 (44 FR
3957), concerning expanded rulemaking
procedures. It also satisfies the
requirement for an initial regulatory
flexibility analysis under the Regulatory
Flexibility Act, 5 U.S.C. 603.
The Home Mortgage Disclosure Act
amendments of 1980 extend with
amendments and a five-year sunset
provision the Home Mortgage Disclosure
Act of 1975 (HMDA). HMDa w as
motivated by congressional concern that
within each SM SA, and the production
of a variety of tables showing the
relationship between the geographic
distribution of disclosed loans and
census tract income level, racial
composition, location, and age of
housing stock.
O verview o f the HMDA am endm ents
The 1980 amendments, as
implemented by revised Regulation C,
require depository institutions with
offices located within SM SA s annually
to compile and disclose to the public the
geographic location of the number and
dollar value of the residential loans they
either originate or purchase during each
calendar year. This residential loan data
must be disclosed by census tract
number for counties within SM SA s that
have populations exceeding 30,000.
Residential loans extended on
properties within SM SA counties that do
not exceed 30,000 residents must be
disclosed by county name. The home
mortgage disclosure data that are
compiled are to be made available to the
public and the appropriate supervisory
agency by the reporting institution
* * * some depository institutions have
sometimes contributed to the decline of
within 90 days of the end of the relevant
certain geographic areas by their failure
calendar year. Each institution reporting
pursuant to their chartering responsibilities to
under the provisions of the act is
provide adequate home financing to qualified
required to m aintain the disclosure
applicants on reasonable terms and
statement in at least one office in each
conditions.*1
SM SA in which it does business.
The purpose of HMDA w as
B enefits, accu racy an d costs. A basic
* * * to provide the citizens and public
input in the regulatory an alysis of
officials of the United States with sufficient
revised Regulation C is a review of the
information to enable them to determine
Federal Home Loan Bank Board/Federal
whether depository institutions are filling
Deposit Insurance Corporation (FHLBB/
their obligations to serve the housing needs
FDIC) study commissioned to evaluate
of the communities and neighborhoods in
which they are located and to assist public
the 1975 Home Mortgage Disclosure
officials in their determination of the
A ct.3 Although the FHLBB/FDIC study
distribution of public sector investments in a
focused on the 1975 Home Mortgage
manner designed to improve the private
Disclosure Act and w as carried out in
investment environment.*
1977, the study remains highly relevant
The 1980 HMDA amendments to the
to an evaluation of the benefits,
1975 act impose substantial additional
accuracy, and costs of the 1980 act
costs. However, these additional costs
because very few fundamental
largely fall upon either the financial
provisions of the original law have been
institution regulatory agencies or other
amended. The following section reviews
federal agencies. The key amendments
the basic findings of the FHLBB/FDIC
include: (1) mandatory disclosure of
study. The economic impact of the
HMDA data on a calendar year basis;
central repository system and HMDA
(2) establishment by the Federal Reserve aggregation are also reviewed.
Board of a uniform disclosure format; (3)
The benefits of HMDA are not
disclosure by census tract for standard
quantifiable in dollar terms.
metropolitan statistical area (SM SA)
However,the FHLBB/FDIC study
counties with populations that exceed
identified a number of u ses that have
30,000, and disclosure by county name
been m ade of the disclosure
for SM SA counties with 30,000 or fewer
information. First, HMDA has been
residents; (4) establishment of a central
useful to the financial institution
repository in each SM SA for HMDA
regulatory agencies in fulfilling their
disclosure statements; (5) aggregation of
statutory responsibilities under the
HMDA data for all covered institutions
1Home Mortgage Disclosure Act, Pub. L 94-200,
12 U.S.C. 2801-2809, Sec. 302.
1Ibid., Sec. 302.
’ "Analysis of the Home Mortgage Disclosure Act
data fromthree Standard Metropolitan Statistical
Areas,” JRBAssociates. McLean, Virginia,
November 1979.
11785
Community Reinvestment Act (CRA)
and civil rights law s. In this context,
HMDA data have been used to identify
possible discriminatory lending
practices related to the geographic
location of the dwelling. The disclosure
data have also been employed to alert
regulators to possible discriminatory
lending practices b ased upon the
applicant’s race, color, or national
origin. Second, HMDA data have been
used by local public officials to help
determine target areas for public
investment. Third, community and
public interest groups have m ade use of
HMDA data in evaluating depository *
institutions’ CRA records and have
b ased most CRA protests of depository
institution applications on lending
patterns developed from the data.
Despite their usefulness for CRA protest
purposes, relatively few community
groups have sought to obtain the
information.4 Moreover, the reporting
institutions have received virtually no
benefits from HMDA.
In summary, HMDA d ata have been
primarily useful to the regulatory
agencies in carrying out their
responsibilities under the antidiscrimination regulations and have
been of some value to community
groups and local public officials.
Although community groups have m ade
limited use of HMDA data to date, it is
possible that they will increase their
utilization of the disclosure information
in the future.
Accuracy of the disclosure statem ents
is critical to their utility. The FHLBB/
FDIC study found that a significant
percentage of the depository institution
disclosure statem ents were too
inaccurate to be used for their intended
purpose. B ased on a survey of a sam ple
of lending institutions from three
SM SA s, the study found that: (1) those
institutions that failed to use an ad d ress
coding guide to identify property census
tract numbers achieved a poor level of
geocoding accuracy; (2) 25 of 43
institutions sam pled (58 percent) made
aggregation errors in more than 50
percent of the census tract lines; (3) 29 of
43 institutions in the sam ple (87 percent)
had aggregation errors that were so
severe that their statem ents were
considered too inaccurate to be used for
their intended purpose.
A number of recommendations were
offered in the FHLBB/FDIC study to
rectify the accuracy problem. One
recommendation, adopted as an
amendment to the 1975 act, directs the
4A United States League of Savings Associations
survey of 2,800 savings and loans found that 71
percent of the respondents had not received a single
request for their 1977 fiscal year disclosure
statements. American Banker, August 28,1978.
11786
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
Federal Reserve Board to prescribe a
standard format for disclosures required
under HMDA.5The standard format
should eliminate some errors with very
little additional cost to the institutions.
However, the predominant source of
disclosure errors—aggregation
inaccuracy—is not addressed in the
regulation. The study recommended that
examination procedures be implemented
to a s s e ss and improve the accuracy of
the geocoding and aggregation of
disclosure data. Moreover, the study
suggested that additional examination
time be established for accuracy
reviews of the disclosure statements. It
w as estim ated that implementation of
this recommendation would cost
approxim ately 20 additional man-years
(at least $300,000 in the first year) of
examination time per year.
The FHLBB/FDIC study asse sse d the
annual costs of HMDA compliance. Cost
estim ates were calculated on both a per
loan and aggregate basis. The study
found that nationwide HMDA cost the
8,138 reporting institutions
approximately $5.8 million in 1977.
B ased on these estim ates, reporting
institutions incurred an average cost of
$713 to compile and disclose their
HMDA data in 1977. The 44 depository
institutions in the study incurred an
average cost per loan of $1.42. A cross
section analysis of these lenders
revealed that: the 13 institutions with
automated residential loan files and
more than 1,000 loans in their disclosure
statem ents bore an average per-loan
cost of $1.36; the 13 institutions with
between 200 and 1,000 loans in their
HMDA statem ents incurred an average
cost of $1.68 per loan; and, the 11
lenders with fewer than 200 loans
incurred an average cost of $3.67 per
loan.
In general, the costs of HMDA
compliance fall disproportionately on
those lenders that are marginally in the
residential real estate market.
Commercial banks incur a greater
average cost per loan than other types of
covered lenders because banks typically
extend fewer residential loans than
other types of covered lenders.
According to the FHLBB/FDIC study,
institutions that disclose fewer than 200
loans per year incur an average cost per
loan that is 2.7 times as great a s the
average cost per loan of lenders
reporting over 1,000 loans per year.
Moreover, those institutions least active
in residential finance are likely to be the
sm aller depository institutions. A s a4
4Section 203.4(b) of the regulation specifies the
reporting format the Board is proposing to adopt.
The prescribed formin revised Regulation C is
substantially similar to the formcurrently employed
by the vast majority of covered institutions.
result, the costs of HMDA compliance
are borne disproportionately by the
sm aller depository institutions.
E stablish m ent o f cen tral repositories.
The 1980 amendments to HMDA direct
the Federal Financial Institutions
Exam ination Council (FFIEC) in
consultation with the Secretary of the
Department of Housing and Urban
Development (HUD) to establish a
central repository for HMDA data for
each SM SA. The central data repository
will receive and maintain all HMDA
statem ents of the covered institutions
with offices located in its SM SA. The
statem ents on file at the central
repository will be m ade available to the
public for inspection and copying.
T he p rin c ip a l b e n e fit o f the c e n tra l
re p o s ito ry system is th a t users o f H M D A
d a ta w ill be a b le to o b ta in a ll o f the
va rio u s in s titu tio n s ’ d isclosu re
statem ents at one lo ca tio n . T he cu rre n t
system req uire s users to c o n ta ct the
in s titu tio n s on an in d iv id u a l ba sis to
o b ta in the d isclosu re data.
The reporting requirements of the
central repository system are
implemented by § 203.5(d) of the
regulation. The reporting institution will
incur a slight increase in costs under this
section of the regulation. Incremental
costs will be those incurred to make two
additional copies of the HMDA
statement and handling and postage
costs to mail the statem ents to the
appropriate supervisory agency.
Assuming the typical HMDA statement
contains approxim ately 20 pages, it is
estim ated that it will cost the average
institution approximately $8.00 annually
to copy and forward the statem ents to
the appropriate supervisory agency.
B ased on 8,138 reporting institutions, the
aggregate annual cost to the covered
institutions will be approximately
$65,100.
O th e r costs th a t arise fro m the
e sta b lish m e n t o f the ce n tra l re p o s ito ry
system w i ll be b o rne b y the c e n tra l
re p o s ito ry and the re g u la to ry agencies.
These costs con sist o f some ha n d lin g ,
tra in in g , storage and p u b lic in fo rm a tio n
costs. A lth o u g h the costs to the ce n tra l
re p o s ito ry system are n o t lik e ly to be
excessive, the b e n e fits are also lik e ly to
be sm all. T he system does n o t p ro v id e
a n y n e w in fo rm a tio n and is so le ly a
convenience fo r users. G ive n the lim ite d
nu m b e r o f users, it is d iffic u lt to ju s tify
even the re la tiv e ly sm a ll a d d itio n a l
expense o f e sta b lish in g and m a in ta in in g
th is system .
A ggregation o f HMDA data. The 1980
amendments direct the FFIEC to compile
annually for each SM SA aggregate data
by census tract for all depository
institutions that are required to disclose
data under the act. In addition, the
FFIEC is directed to produce tables for
each SM SA that aggregate covered
institutions’ lending patterns for various
categories of census tracts grouped
according to location, age of housing
stock, income level and racial
characteristics. According to the act, the
Federal Reserve Board is required to
provide the resources necessary to
perform the aggregation. Tables
generated from the aggregation process
are to be made available to the public
by December 31 of the year following
the calendar year on which the data are
based.
Aggregation of HMDA data will
involve substantial costs. The FDIC/
FHLBB HMDA study estimated
aggregation costs to be approximately
$1 million annually with a possible
variation in actual costs of anywhere
from —30 percent to 50 percent of that
estimate. Since the estimate w as based
on a 1977 survey, it is likely that the
actual dollar costs will be
approximately 30 percent higher due to
the effects of general inflation.
Aggregation will impose minor
burdens on the reporting institutions.
The only aggregation costs imposed on
the covered institutions will be those
that arise from sending two additional
copies of their disclosure statem ents to
the appropriate supervisory agency. In
addition, some institutions will bear
costs that arise from having to correct
incomplete or inaccurate statements
that are uncovered in the editing
process.
Although the costs of aggregation are
quantifiable, the benefits cannot be
m easured in dollar terms. Two principal
benefits were cited to support
aggregation. First, it w as argued that the
utility of using and evaluating individual
institutions’ HMDA statements will be
enhanced if com parisons can be made to
aggregate SM SA lending patterns.
Second, aggregate lending patterns can
be used by public officials to aid in the
determination of target areas for public
investment.
Although the benefits of aggregation
are not quantifiable, it seem s unlikely
that the first suggested use will actually
provide significant benefits. Experience
with enforcement of the CRA and antidiscrimination law s suggests that
aggregation will not materially aid
regulators in their enforcement
responsibilities. Home loan information
currently is proposed on an individual
institution b asis and that is the form in
which it is principally used. When
comparing one institution’s record with
others, com parisons must be between
institutions of similar types and sizes to
be meaningful. Having an overall view
of SM SA lending patterns will not be
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
particularly helpful in evaluating the
CRA or civil rights records of individual
lenders. Aggregate HMDA lending
patterns may be a useful tool for public
officials efforts to target public
investment. However, there is simply no
w ay to determine if the substantial costs
of aggregation are outweighed by the
benefits some public officials will
receive from the availability of the
aggregated data. Moreover, if individual
states or localities find aggregate
lending information valuable for
planning purposes, they probably can
compile the information more quickly
and perhaps in a more useful format
than can be done in Washington.
Econom ic im pact an aly sis o f revised
R egulation C
Section 203.2 of the regulation
provides definitions (for example, of the
types of depository institutions that are
covered by the regulation and of the
types of residential loans that must be
disclosed). The definitions of home
improvement loan and home purchase
loan in § 203.2 have been revised in the
proposed regulation to reflect more
accurately the actual purpose for which
the loan w as made. In the original
regulation, the home improvement loan
category did not include first-lien loans
that were for the purpose of improving
an existing residential structure. In
addition, the original regulation did not
categorize a loan, whose purpose w as to
purchase residential property, as a home
purchase loan unless the loan w as
secured by a first lien. The revised
definitions may impose some minor
additional costs on the institution in
terms of retraining staff personnel.
However, the new definitions are
intuitively appealing and will provide
more accurate information about the
residential credit activity of covered
lenders.
Section 203.3 of the revised regulation
includes the sam e exemption standards
as existed under previous Regulation C.
These standards provide a blanket
exemption for any depository institution
that does not have an office in a
designated SM SA area. In addition, any
depository institution, regardless of
location, is exempt if it has year-end
assets of less than $10 million.
The exemption standards in § 203.3 of
the revised regulation are identical to
those m andated by the statute. These
exemption standards appear to reflect
several congressional perceptions. The
exemption for non-SMSA located
institutions reflects the perception that
disinvestment by depository institutions
is largely an urban problem. The $10
million asset examination standard w as
adopted primarily in recognition of the
fact that HMDA disclosure requirements
impose a disproportionate burden on
small depository institutions.
A s noted, the FHLBB/FDIC study of
HMDA found that the costs of
compliance fall disproportionately on
those lenders marginally active in the
home loan market. The FHLBB/FDIC
study found that the costs of
compliance, on a per loan basis, were
approximately two times as high for
institutions reporting fewer than 200
loans per year than they were for
institutions extending between 200 and
1,000 loans per year. The study also
found that institutions disclosing fewer
than 200 loans per year incur an average
cost per loan that is approximately three
times higher than the average cost per
loan of lenders reporting over 1,000 per
year.
While the $10 million asset exemption
does reduce the number of small
depository institutions in SM SA s that
must comply with HMDA, it results in as
inequitable treatment of the different
types of institutions covered by the act.6
The current exemption standards fail to
recognize the specialization that exists
in the residential loan market between
commercial banks and thrift institutions.
A comparison between the typical
commercial bank and thrift institution,
of any similar asset size, will reveal a
large disparity in the percentage of
lendable funds devoted to home loans.
A s a result, the $10 million asset
exemption standard allow s many thrift
institutions that are relatively active
residential lenders to be exempt from
disclosure requirements and hence
public review of their lending activity.
At the sam e time, this exemption
standard requires many commercial
banks with asse ts in excess of $10
million, but many fewer home loans
than the sm aller exempt thrift
institutions, to compile and disclose
their home loan activity. Since the
reporting costs per loan rise as the
number of loans disclosed declines, it
follows that smaller-sized commercial
banks bear a disproportionate share of
the total cost of HMDA reporting.
An alternative exemption standard
that is more equitable than the asset
size exemption standard would base
exemption upon the size of an
institution’s home purchase and home
improvement loan portfolio and the
number of loans made by the lender in a
‘ The $10 million asset standard exempts
approximately 826 (14 percent) of the SMSA based
commercial banks and 160 (7 percent) of the savings
and loan associations with offices indesignated
SMSA areas.
11787
calendar year.7 This two-part test is
better adapted than an asset-size
standard to m easuring whether an
institution is sufficiently active in the
home loan market to justify the costs of
reporting.
An exemption standard that requires
a lender to report if it has a home loan
portfolio of more than $10 million or
extends 200 or more home loans in a
calendar year is a cost-effective
standard to establish. This specific
alternative exemption standard reflects
the cost findings of the FHLBB/FDIC
study. The Board considered
incorporating a portfolio exemption in
this propoosal, in light of its goal to
reduce regulatory burdens and of its
responsibilities under the new
Regulatory Flexibility Act (Pub. L. 96354).8 Such an exemption standard
would substantially reduce the number
of institutions required to report under
the act.9 However, the impact on the
proportion of residential loans disclosed
would be less substantial since the
excluded institutions are the least active
home lenders.
The alternative exemption standard
would reduce the number of commercial
banks required to file disclosure
statements by approxim ately 69 percent
(from 5,160 reporting banks to
approximately 1,612 covered
commercial ban ks).10 Although the
exemption standard would result in a
substantial reduction in the number of
reporting commercial banks, it would
continue to require the major bank
lenders in the residential loan market to
file disclosure statements. Under this
exemption standard, at least 88 percent
of the dollar value of all home purchase
and home improvement loans held by
commercial banks headquartered in
SM SA s would be held by banks subject
to reporting requirements.
7A similar exemption standard was proposed by
the Federal Reserve Board in hearings before
Congress on the HMDA amendments in May 1980.
‘ The cutoff of 200 loans is based upon the finding
of the FHLBB/FDIC study that per-loan reporting
costs escalate sharply when fewer than 200 loans
are to be reported. This portion of the exemption
standard would be necessary to ensure that
institutions extending a significant number of home
loans in a given calendar year cannot avoid
reporting requirements by selling these loans in the
secondary market, thereby keeping their year-end
home loan portfolio below $10 million.
‘ Estimates of the number of covered institutions
that would be required to report under this
exemption standard are based on December 1979
call report data.
10The 1,612 estimate represents the minimum
number of commercial banks that would be required
to report. At least some banks that originate and
sell their residential loans on a regular basis would
be excluded under the portfolio exemption but
would be required to report because they extend
more than 200 home purchase and home
improvement loans in a calendar year.
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Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
The exemption standard outlined
above would require approximately
2,255 savings and loan associations and
296 mutual savings banks to file
disclosure statements. This would
reduce the number of savings and loan
associations and mutual savings banks
that are required to report about 3
percent. These 2,551 thrift institutions
held over 99 percent of the dollar value
of all home purchase plus home
improvement loans held by savings and
loan associations and mutual savings
banks headquartered in SM SA s at yearend 1979. Overall, the alternative
exemption standard would reduce the
total number of reporting institutions by
approximately 47 percent. Despite the
sharp drop in the number of reporting
institutions, at least 97 percent of the
dollar value of home purchase and home
improvement loans held by all
commercial banks, savings and loan
associations, and mutual savings banks
with offices in SM SA s would be
disclosed.
The exemption standard outlined
above would significantly reduce the
number of small institutions that must
comply with HMDA. Moreover, the
exemption standard would not result in
a significant reduction in benefits. In
most cases consumer compliance
examiners would be able to judge an
exempt lender’s CRA and civil rights
compliance by reviewing a sam ple of
residential loans from the institution
loan files. The additional examination
burden that results from the alternative
exemption standards would offset some
of the savings that arise from the
reduction in compliance costs.
The B oard u ltim a te ly decided n o t to
propose a p o rtfo lio e xe m ptio n because
o f the fa c t th a t the Senate had
considered, and rejected, a s im ila r
proposed am endm ent.
Section 203.3(b) allow s statechartered institutions, subject to state
regulations substantially sim ilar to
revised Regulation C, to be exempt from
compliance with the federal regulation.
This section requires institutions exempt
from federal regulation to file two copies
of the disclosure statements (prepared
under the provisions of their state law)
with the appropriate state supervisory
agency. This minor additional burden is
necessary because exempt-state
institutions must be included in the
HMDA aggregation process.
Section 203.3(c) allows institutions
that lose their exempt status under
§ 203.3 (a) or (b) of the regulation to
report beginning with data for the first
existing calendar year after the year in
which their exemption w as lost. The
existing regulation required institutions
that lost their exemption to file
disclosure statements not only for the
year in which they lost their exemption,
but also for the prior year. The revised
regulation will reduce compliance
burdens on average by about $1,426 for
each institution that loses its exempt
statu s.11 This figure represents a
conservative estimate because it is more
costly for institutions to compile data
from a prior year than it is to compile
the information on a continuous basis.
This provision should not result in a
significant loss in consumer benefits.
Moreover, the data from the year prior
to the year in which the exemption w as
lost will not be available in time to be
included in the SM SA aggregation
process.
The 1980 HMDA amendments require
covered institutions to compile and
report their HMDA data on a calendar
year basis. Section 203.4(a) of the
regulation implements this provision of
the act. The goal of this regulation is to
establish a uniform reporting period so
that data from all covered institutions in
an SM SA may be compared over an
equivalent time period. The original
Regulation C allow ed institutions to
report on a fiscal year basis. A s a result,
it w as difficult to aggregate and
compare different institutions’ lending
records. The switch to a calendar year
reporting period w as first implemented
by an amendment to Regulation C
adopted in November 1980.*12 A s a result,
the revised regulation does not
technically change the reporting period
from that which is m andated in the
current regulation.13
The 1980 HMDA amendments
authorize the Federal Reserve Board to
“ $1,426 represents the 1977 costs of compiling
home moratgage disclosure statements for two
years for the average institution covered by the act.
1245 FR80813, December 8, 1980.
15The regulatory amendment imposes a one-time
cost on those institutions disclosing data on other
than a calendar year basis. This one-time cost has
two components. First, there is the cost associated
with changing operating methods to conformwith a
calendar reporting requirement. These costs involve
additional training of institution personnel
responsible for preparing the disclosure reports and
some minor computer programming adjustments to
reflect the calendar year reporting data
requirements. These costs are not expected to be
significant. Second is the cost associated with
preparaing a separate disclosure statement
containing data for any period prior to calendar
year 1980 which is not covered by the lsat full year
report prior to the 1980 calendar year report. In
addition, those institutions reporting on a fiscal year
basis which have disclosed their 1980 fiscal year
reports will have to duplicate that portion of their
fiscal 1980 reports that falls in calendar year 1980.
The FHLBBV/FDIC study found that 85 percent of
the covered institutions in their survey currently
report oh a calendar year basis. Therefore, it is
unlikely that this regulation will impose any burden
on the bulk of the reporting institutions. However,
the regulation will impose an additional burden on
those institutions not previously reporting on a
calendar year basis.
prescribe a standard format for
disclosures of HMDA data. Currently,
the vast majority of covered institutions
use a reporting form that is quite similar
to the one set forth in Regulation C.
However, minor variations do exist
across institutions. While such
variations in format are not significant
in a small sample study, they present
costly impediments to a cost-effective
aggregation of HMDA data on an SM SA
basis. Variations in format raise the cost
of using the disclosure data
substantially, perhaps doubling the
costs associated with aggregating the
data. Prescription of a standard format
will impose some minor one-time costs
on the reporting institutions. These one
time costs arise from the need to alter
the institution’s existing format. In some
cases this will impose minor computer
programming changes; in all c ase s it will
involve some additional personnel
training.
The reporting format prescribed in the
revised regulation deletes one column—
total residential mortgage loans on 1-to4 family dwellings—from the HMDA
form in old Regulation C. This column is
not required under the act and is simply
the summation of columns two and
three. Deletion of this column should
reduce both the number of errors in the
institutions’ reports, and on net reduce
the costs of compliance since the new
form will require fewer manual or
computer computations and reduced
paper work. Moreover, deletion of this
column should result in a significant
savings in the aggregation process since
it will reduce by one-seventh the
amount of m aterial that must be
aggregated. Based on the FHLBB/FDIC
study of HMDA aggregation costs,
deletion of one column should result in
an annual cost savings of about
$46,000. 14*
Section 203.3(b) of the regulation
requires exempt-state institutions to
follow the basic reporting format.
Aggregation requirements necessitate
the establishment of a uniform reporting
format because the exempt-state
institutions must be incorporated into
the aggregation process. This
requirement will impose additional costs
on some of these institutions. However,
most of the exempt-state institutions
already compile HMDA data in a format
similar to that prescribed in the
regulation.
Section 203.4 of revised Regulation C
requires covered lenders to compile the
geographic disclosure of loan
originations and purchases on separate
“ This estimate was derived by calculating oneseventh of the statement related and tract line
related costs of aggregation.
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
report forms. The previous regulation
also required separate disclosure reports
for originations and purchases.
Another 1980 amendment to the act
requires lenders to geocode all covered
loans extended within SM SA s on a
census tract b asis unless the loan
involves a property located in an SM SA
county whose population does not
exceed 30,000. Section 203.4(b) of the
revised regulation allows covered loans
extended in the less populous counties
to be geocoded by county name. Based
upon 1970 census data, approximately
19 percent of the counties located in
SM SA s have populations that do not
exceed 30,000.
This amendment m akes two
modifications in the statute. First, it
allows lenders extending credit in
SM SA counties with sm all populations
(30,000 or less) to geocode these loans
by county name. The previous regulation
required lenders to geocode these loans
by either census tract or ZIP code. The
modification in geocoding requirements
for loans extended in these less
populous areas will reduce the costs of
HMDA compliance a s well a s improve
the accuracy of the reports with no
associated loss in the usefulness of the
data. The amendment will not reduce
the usefulness of the data because, in
general, loans in such rural areas are
already aggregated for CRA or civil
rights analysis.
The second modification resulting
from this amendment to the act requires
lenders to geocode loans by census tract
in SM SA counties whose populations
exceed 30,000. Complete compliance
with this amendment is im possible
because there are untracted SM SA
counties with populdtions that exceed
30,000. A s a result, the revised
regulation allow s lenders extending
credit in such untracted areas to report
the data by county name. Disclosure by
county name in these large untracted
counties should marginally reduce the
costs of compliance and improve the
accuracy of the disclosure reports.
According to § 203.4(d) of the revised
regulation, depository institutions must
use the 1970 C ensus o f Population an d
H ousing: C ensus T racts, F in al Reports,
P H C (l) S e rie s prepared by the Bureau of
Census, U.S. Department of Commerce
to determine whether property is in a
particular census tract, until the 1980
census material becom es available. The
1970 census tract m aps for each SM SA
are currently available for purchase at a
nominal fee from the Bureau of the
Census, Washington, D.C.15When the
lsThe 1970 PHC(l) Series reports containing the
census tract maps were priced in the $.45 to $12.75
range in1976. Street address coding guides are also
1980 census material becom es available,
the Federal Reserve System will inform
lenders that they should begin using this
data. At that time the depository
institutions will bear additional
compliance costs associated with
purchasing new geocoding material.
These costs will be nominal for an
institution. The switch to the 1980
census material is necessary in order for
the Federal Reserve to complete the
data aggregation required under the act.
Section 203.5 of the regulation
precribes the date and manner by which
institutions must make their disclosure
statem ents available. Section 203.5(b)
requires that depository institutions
make their disclosure statements
available at their home office and at one
branch in each SM SA in which they
have an office, other than the SM SA in
which the home office is located. This
provision reduces the compliance
burden because under the old regulation
a lender had to make the statements
available at both the home office and at
one branch in every SMSA. The revised
regulation provides for a more liberal
disclosure requirement, because each
lender’s statement will now be available
at the central repository a s well as the
institution’s home office.
Section 203.5(b) of the revised
regulation provides for a more liberal
branch office disclosure requirement
than existing Regulation C. Under the
existing regulation, an institution may
either make the entire institution-wide
disclosure statement available at one
branch in each SMSA, or the institution
may omit detailed geographic
breakdowns for loans on property in
other SM SA s at the local branch office.
In the latter case the institution’s
disclosure statement would include a
complete geographic breakdown for
loans in the local SMSA, a total figure
for each other SM SA in which the
institution has offices, and an aggregate
figure for loans on property located
outside SM SA s in which the institution
has an office. The revised regulation
would permit branch office disclosures
to omit all data relating to SM SA other
than the SM SA in which the particular
branch office is located.
This suggested rule change would
result in some reduction in data
compilation and reproduction costs for
those institutions with branch offices in
more than one SMSA. The rule change
will not reduce the consumer benefits
since the entire disclosure statement
available fromthe Bureau of the Census. These
guides facilitate the intemization of loans by census
tract. The 1980 guides are currently available from
the Bureau of the Census. They range in price from
$.78 to $70.27 for an SMSA with an average price of
$6.54 per SMSA.
11789
will be available at the institution’s
home office and at the central repository
in each SM SA.
The revised regulation no longer
requires covered institutions to annually
notify depositors of the availability of
HDMA data. A notification provision
w as not required by the act but w as
included in the original Regulation C.
The Board believes that such
notification is largely ineffective and
unnecessary. Moreover, the fact that
disclosure data for all institutions in an
SM SA will be available at a central
repository and that this data availability
will presumably be publicized m akes
annual notification even less necessary.
Eliminating this requirement will reduce
annual compliance costs slightly.
Section 205.3(d) requires lenders to
forward two copies of their disclosure
statement each year to their appropriate
supervisory agency. This additional
burden arises from the requirement in
the act that an aggregation of HMDA
data be prepared each year. The
aggregate cost to all covered lenders of
this additional reporting requirement is
estim ated to be about $65,000
annually.16
(4)
Pursuant to the authority granted
in 12 U.S.C. 2804(a), the Board hereby
proposes to revise 12 CFR Part 203, to
read as follows:
PART 203—HOME MORTGAGE
DISCLOSURE
Regulations
Sec.
203.1 Authority, purpose, and scope.
203.2 Definitions.
203.3 Exemptions.
203.4 Compilation of loan data.
203.5 Disclosure and reporting
requirements.
203.6 Administrative enforcement and
sanctions for violations.
Supplement
203.30 Procedures for an exemption
application pursuant to § 203.3(b) of
Regulation C (Supplement I).
Appendix A—Instructions for Completion of
Form HMDA-1 (Revised): “Loan
Disclosure Statement” .
Appendix B— Federal Enforcement Agencies.
Authority: Home Mortgage Disclosure Act
of 1975, as amended, Title III, Pub. L. 94-200,
89 Stat. 1125, et seq. (12 U.S.C. 2801-2811).
Regulations
§203.1 Authority, purpose and scope.
(a)
A u t h o r i t y . T h is re g u la tio n is issued
b y the B oard o f G ove rn ors o f the
F ederal Reserve System pu rsu a n t to the
16This estimate is based on 8,138 reporting
institutions incurring an average cost of $8.00 to
copy and forward two copies of their disclosure
statement to the appropriate supervisory agency.
4
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Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
H om e M ortgage D isclosu re A c t o f 1975,
as am ended (T itle 12, Sections 2801
through 2811 o f the U n ite d States Code).
(b) Purpose. The purpose of this
regulation is to provide the public with
loan data to determine whether
depository institutions are serving the
housing needs of the communities and
neighborhoods in which they are
located. The purpose is also to assist
public officials in distributing public
sector investments so as to attract
private investment to neighborhoods
where it is needed. This regulation is not
intended to, nor shall it be construed to,
encourage unsound lending practices or
the allocation of credit.
(c) Scope. This regulation applies to
depository institutions that make
federally related mortgage loans. It
requires a covered depository institution
to disclose loan data at its offices
located in standard metropolitan
statistical areas and to report the data
to its appropriate supervisory agency.
(d) C entral d ata repositories. The act
requires that the loan data be made
available at central data repositories
located within each standard
metropolitan statistical area. It also
requires that mortgage loan data,
covering all institutions in each
standard metropolitan statistical area
and showing lending patterns by
geographical location, age of housing
stock, income level, and racial
characteristics, be aggregated. A listing
of central data repositories can be
obtained from the Department of
Housing and Urban Development,
Washington, D.C. 20410, or from any of
the agencies listed in Appendix B.
§ 293.2 Definitions.
F or the purposes o f th is reg ulation , the
fo llo w in g d e fin itio n s apply:
A ct m eans the Home Mortgage
Disclosure Act of 1975 (Title III of Pub.
L. 94-200), as am ended in 1980 (T itle III
o f Pub. L. 96-399), c o d ifie d in T itle 12,
sections 2801 through 2811 o f the U n ite d
States Code.
Branch office m eans an office
approved as a branch of the depository
institution by its federal or state
supervisory agency. It excludes free
standing automated teller machines and
other electronic terminals.
D epository institution m eans a
commercial bank, savings bank, savings
and loan association, building and loan
association, homestead association
(including a cooperative bank,), or credit
union, that m akes federally related
mortgage loan s.1A majority-owned non
1 "Federally related mortgage loan” means any
loan (other than temporary financing such as a
construction loan) that
depository subsidiary is deemed to be
part of its parent depository institution
for the purposes of this regulation. A
majority-owned depository subsidiary
may, at the parent depository
institution’s option, be treated as part of
its parent or as a distinct entity.
F ed eral H ousing A uthority (FHA),
Farm ers Home A dm inistration (FmHAJ,
or V eterans A dm inistration (V A) loan s
m eans mortgage loans insured under
Title II of the National Housing Act or
under Title V of the Housing Act of 1949
or guaranteed under Chapter 37 of Title
38 of the United States Code.
Home im provem ent loan m eans any
loan, including a refinancing, (a) whose
proceeds, as stated by the borrower to
the lender at the time of the loan
application, are to be used for repairing,
rehabilitating, or remodeling a
residential dwelling located in a state;
and (b) that is recorded on the
depository institution’s books as a home
improvement loan.
Home p u rch ase loan m eans any loan,
including a refinancing, secured by and
m ade for the purpose of purchasing
residential real property located in a
state (including single-family homes,
dwellings for from 2-to-4 families, other
multi-family dwellings, and individual
units of condominiums or cooperatives).
The term does not include temporary
financing (such as a bridge loan or
temporary construction loan) or the
purchase of an interest in a pool of
mortgage loans (such a s mortgage
participation certificates issued or
guaranteed by the Federal Home Loan
Mortgage Corporation, the Government
National Mortgage Association, or the
Farm ers Home Administration).
S tate means an y state o f the U n ite d
States o f A m e rica , the D is tric t o f
C o lum b ia , a n d the C o m m o n w e a lth o f
Puerto Rico.
§ 203.3 Exemptions.
(a) A sset size an d location. A
d e p o sito ry in s titu tio n is exem pt fro m a ll
req uire m en ts o f th is re g u la tio n
(1) If its total asse ts on December 31
are $10,000,000 or less; or
(2) I f it has n e ith e r a hom e o ffic e n o r a
bra n ch o ffice in a sta n d a rd m e tro p o lita n
s ta tis tic a l area (SM SA) as d e fin e d by
the U.S. D e pa rtm e nt o f Com merce.
(b) State law . A state-chartered
depository institution is exempt from the
requirements of this regulation if it is
subject to state law s that contain, as
determined by the Board in accordance
with § 203.30 (Supplement I) of this
regulation: (1) requirements
substantially similar to those imposed
by this regulation, and (2) adequate
provisions for enforcement. For
purposes of data aggregation, however,
an institution exempted under this
paragraph shall submit the data required
by the disclosure law s of its state to its
state supervisory agency.
(c) L oss o f exem ption. A d e p o sito ry
in s titu tio n th a t loses its e xe m p tio n sh a ll
com p ile lo a n data beginning w ith the
ca le n d a r yea r fo llo w in g the ye a r in
w h ic h the e xe m p tio n w as lost.
§ 203.4 Compilation of loan data.
(a) D ata to be included. A depository
institution shall compile data on the
number and total dollar am ount2 of
home purchase and home improvement
loans that it originates and purchases,
for each calendar year beginning with
calendar year 1981.
(b) Form at. The lo a n data sh a ll be
co m p ile d sep ara te ly fo r o rig in a tio n s and
purchases, using the form set fo rth in
A p p e n d ix A , and sh a ll be ite m ize d as
fo llo w s :
(1) G eographic item ization. T he lo an
d a ta sh a ll be ite m ize d b y sta n d a rd
m e tro p o lita n s ta tis tic a l area (SM SA).
W ith in each SM SA, the data sh a ll be
fu rth e r ite m ize d b y the census tra c t in
w h ic h the p ro p e rty to be purchased o r
im p ro v e d is located, except th a t
(i) Is secured by a first lien on residential real
property (including individual units of
(i) If the property is located in a
condominiums and cooperatives) that is designed
principally for the occupancy of froml-to-4 families
county with a population of 30,000 or
and is located in a state; and
less, or in an area that has not been
(ii)
(A) Is made in whole or in part by a depository
assigned census tracts, itemization by
institution the deposits or accounts of which are
county shall be used instead of
insured by an agency of the federal government, or
by a depository institution that is regulated by an
itemization by census tract.
agency of the federal government; or
(ii) I f the p ro p e rty is lo cated outside
(B) Is made in whole or in part, or is insured,
the S M S A s in w h ic h the in s titu tio n has a
guaranteed, supplemented, or assisted in any way,
hom e o r a bra n ch office , no ite m iz a tio n
by the Secretary of Housing and Urban
Development or any other officer or agency of the
federal government or under or in connection with a
2 "Total dollar amount” means (i) the original
housing or urban developement program
principal amount of loans originated by the
administered by any such officer or agency; or
depository institution (to the extent of its ownership
interest, when the loan is made jointly or
(C) Is intended to be sold by the depository
cooperatively) and (ii) the unpaid principal balance
institution that originates the loan to the Federal
of loans purchased by the depository institution (to
National Mortgage Association, the Government
the extent of its ownership interest in such
National Mortgage Association, or the Federal
purchased loans). For purchased home improvement
Home Loan Mortgage Corporation, or to a financial
loans, the amount to be reported may include
institution fromwhich it is to be purchased by the
umpaid finance charges.
Federal Home Loan Mortgage Corporation.
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
(by SMSA, county, or census tract) is
required and the data for such loans
shall instead be listed as an aggregate
sum.
(2) Type-of-loan item ization. The loan
data within each geographic category
described in paragraph (b)(1) of this
section shall be further itemized as
follows:
(i) FHA, FmHA, and VA loans on 1-to4 family dwellings;
(ii) Other home purchase
(conventional) loans on l-to-4 family
dwellings;
(iii) Home improvement loans on 1-to4 family dwellings;
(iv) Total home purchase and home
improvement loans on dwellings for
more than 4 families; and
(v) Total home purchase and home
improvement loans on l-to-4 family
dwellings (from categories (i), (ii), and
(iii) above) made to any borrower who
did not, at the time of the loan
application, intend to use the property
as a principal dwelling.3 This addendum
item is not required for loans on
property in the outside-SM SAs category
described in paragraph (b)(l)(ii) of this
section.
(c) E xcluded data. A depository
institution shall not disclose loan data
for
(1) Loans originated and purchased by
the depository institution acting as
trustee or in some other fiduciary
capacity;
(2) Loans on unimproved land; or
(3) Refinancings that the depository
institution originates, if there is no
increase in the outstanding principal on
the existing loan and if the institution
and the borrower are the sam e parties
on the existing loan and the refinancing.
(d) SM SA s an d census tracts. For
purposes of geographic itemization
(1) A depository institution shall use
the SM SA boundaries defined by the
U.S. Department of Commerce,
Washington, D.C. 20233, as of the first
day of the calendar year for which the
data are compiled.
(2) A depository institution shall use
the census tract numbers and
boundaries on the census tract m aps in
the “ 1980 Census of Population and
Housing: CENSUS TRACTS, Final
Report, PHC(l) Series” prepared by the
Bureau of the Census, U.S. Department
of Commerce, Washington, D.C. 20233.4
If a census tract number is duplicated
within an SM SA, then the census tract
shall also be identified by county, city,
or town name.
§ 203.5 Disclosure and reporting
requirements.
(a) Time requirem ents fo r d isclosu re
statem ents. A depository institution
shall make its loan data disclosure
statements available to the public by
March 31 following the calendar year for
which the data were compiled and shall
continue to make them available for five
years.
(b) O ffices a t which d isclosu re
statem ents are to be m ade av ailab le. (1)
A depository institution shall make a
complete disclosure statement available
at its home office.
(2) A depository institution shall also
make a disclosure statement available
in at least one branch office in each
SM SA where it has offices, other than
the SM SA in which the home office is
located. The statement at a branch
office may omit, at the option of the
institution, all data other than the data
relating to property located in the SM SA
where that branch is located.
(3) Upon request, a depository
institution shall promptly provide
information regarding the office(s) of the
institution where its disclosure
statem ents are available.
(c) M anner o f m aking d isclosu re
statem ents av ailab le. A depository
insitution shall make its loan data
disclosure statem ents available to
anyone requesting them for inspection
or copying during the hours the office is
normally open to the public for business.
A depository institution that provides
photocopying facilities m ay impose a
reasonable charge for this service.
(d) R eporting requirem ents. For
purposes of d ata aggregation, a
depository institution shall send two
copies of its complete disclosure
statement to the regional office of its
enforcement agency by March 31
following the calendar year for which
the data were compiled.
§ 203.6 Administrative enforcement and
sanctions for violations.
(a) A dm inistrative enforcem ent. A s
set forth more fully in § § 305(b) and
306(b) of the act, compliance with the
act and this regulation is enforced by
the Comptroller of the Currency, the
Federal Reserve System , the Federal
3
A depository institution may assume, unless its Deposit Insurance Corporation, the
records contain information to the contrary, that a
Federal Home Loan Bank Board, and the
loan that it purchases does not fall within this
National Credit Union Administration.
category.
(b) San ction s fo r violations. (1) A
* Until the complete 1980 series is available,
violation of the act or this regulation is
institutions shall use the maps in the 1970 series.
A previously untracted area shall be reported by
the most recent census tract update, if any, existing
on January 1 of the year for which the data are
compiled. Updates shall not be used for previously
tracted areas.
11791
subject to adm inistrative sanctions a s
provided in § 305(c) of the act.
(2)
An error in compiling or disclosing
required d ata is not considered a
violation of the act or this regulation if
the error w as unintentional and resulted
from a bona fid e m istake despite the
maintenance of procedures reasonably
adapted to avoid such an error.
S u p p le m e n t
§ 203.30 Procedures for an exemption
application pursuant to § 203.3(b) of
Regulation C (Supplement I).
(a) A pplication. Any state,1 statechartered depository institution, or
association of such depository
institutions m ay apply to the Board
pursuant to this supplement and the
Board's Rules of Procedure (12 CFR 262)
for an exemption from Regulation C
under § 203.3(b). Such an exemption
requires a determination that a statechartered depository institution is
subject to state law requirements 2
substantially sim ilar to those im posed
by Regulation C (12 CFR 203), and that
there is adequate provision for
enforcement of those requirements.
(b) Supporting docum ents. The
application, which m ay be m ade by
letter, shall include
(1) A copy of the full text of the
relevant state law, including provisions
for enforcement;
(2) A statement of reasons why the
state requirements are substantially
sim ilar to those im posed by the act and
Regulation C, including an explanation
why any differences are not significant;
and
(3) An undertaking to inform the
Board within 30 d ay s of the occurrence
of any change in the relevant state law.
(c) Public notice o f filin g. The Board
will publish in the Federal Register
notice of the filing of an application that
com plies with the above requirements.
A copy of the application will be m ade
available for exam ination during
bu siness hours at the Board and at the
Federal Reserve Bank of each Federal
Reserve District in which the applicant
is situated. The Board will provide a
period of time for interested persons to
submit written comments. For multiple
applications concerning the sam e state
law, the Board m ay (1) consolidate the
notice of receipt of all such applications
in one Federal Register notice, and (2)
dispense with publication of notice of
applications subsequently received. *
1 "State" includes any subdivision of a state.
* "State law” includes any regulations which
implement the law, any official interpretations of
the law, and regulations of a state agency or
department that has jurisdiction over a class(es) of
depository institutions.
11792
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
(d) G rant o f exem ption. If the Board
determines that some or all statechartered depository institutions are
subject to requirements substantially
sim ilar to those imposed by Regulation
C, and that there is adequate provision
for enforcement, the Board will exempt
such institution(s) from the requirements
of Regulation C (except as specified in
§ 203.3(b)) by publishing notice of the
exemption in the F ed eral R egister and
furnishing a copy of the notice to the
applicant, to each state authority
responsible for administrative
enforcement of the state law, to the
regulatory authorities specified in
§ 305(b) of the act, and to each
participant in the proceeding.
(e) Subsequent am endm ents;
revocation o f exem ption. (1) The Board
will inform the appropriate state official
o f any subsequent amendments to
Regulation G (including published
interpretations of the Board) that might
require amendment of the state law. The
Board may in certain instances require
reapplication for an exemption.
(2) The Board reserves the right to
revoke an exemption if at any time it
determines that state law does not in
fact impose requirements substantially
similar to those im posed by Regulation
C, or that there is not in fact adequate
provision for enforcement.
(3) The Board will publish notice o f its
intent to revoke an exemption in the
F ed era l R e g iste r and will send the
notice to the appropriate state official. A
period of time will be allowed from the
date of publication for interested
persons to submit written comments.
(4) If an exemption is revoked, the
Board will publish notice of the
revocation in the F ed era l R eg ister and
will send a copy of the notice to the
appropriate state official and to the
regulatory authorities specified in
§ 305(b) of the act.
(5) The Board may dispense with the
procedures set forth in this section in
any case in which it finds such
procedures unnecessary.
Appendix A—Instructions for Completion of
FORM HMDA-1 (revised): “ Loan Disclosure
Statement”
Genera] Instructions
1. Dollar amounts should be rounded to the
nearest thousand ($500 and greater is to be
rounded up), and shown in terms of
thousands.
2. If more than one SMSA is involved, the
relevant SMSA should be indicated next to
the tract number or, preferably, separate
pages should be used for each SMSA.
3. SMSA boundaries are those defined by
the U.S. Department of Commerce as of
January 1 of the calendar year to which the
loan data relates.
4. Institutions should continue to use
census tract numbers appearing on the maps
in the Bureau of the Census 1970 PHC(l)
Series until the 1980 Series is completely
available. A previously untracted area is to
be reported by the most recent census tract
update, if any, existing on January 1 of the
calendar year to which the disclosure
statement relates. Updates are not to be used
for previously traded areas.
5. If the census tract number is duplicated
within an SMSA, the county, city or town
that uniquely identifies the number should be
stated.
6. This statement must be retained and
made available for five years from March 31
following the calendar year for which the
data was compiled.
Specific Instructions
1. Geographic Itemization (first column).
(a) Section 1. Loan data are to be itemized
by SMSA and further itemized within each
SMSA by:
(i) census tract in which the property is
located, or
(ii) if property is located in a county with a
population of 30,000 or less, or in an area that
has not been assigned census tracts on the
Bureau of Census 1970 PHC(l) Series maps,
then itemization must be by county name (not
census tract).
(b) Section 2. If the property is located
outside the SMSAs in which the institution
has a home or branch office, the data for such
loans should be listed as an aggregate sum;
no geographic itemization is necessary.
2. Type-of-Loan Itemization (remaining
columns): Each geographic category is to be
further itemized by loan type as follows:
(a) FHA, FmHA, and VA loans on l-to-4
family dwellings (second column). This
category includes only loans that are secured
by and made for the purpose of purchasing
residential real property. It does not include,
for example, FHA Title I loans, which are to
be classified in category (c).
(b) Other home purchase loans
(“conventional" loans) on l-to-4 family
dwellings (third column).
(c) Home improvement loans on l-to-4
family dwellings (fourth column). This
category is limited to loans recorded on the
institution’s books as home improvement
loans.
(d) Total home purchase and home
improvement loans on dwellings for more
than 4 families (fifth column).
(e) Non-occupant loans on l-to-4 family
dwellings (sixth column). This is an
addendum column; it should include total
home purchase and home improvement loans
on l-to-4 family dwellings (from columns 2, 3,
and 4) made to any borrower who did not, at
the time of the loan application, intend to use
the property as a principal dwelling. A
depository institution may assume, unless its
records contain information to the contrary,
that a loan it purchases does not fall within
this category.
BILLING CODE 6210-01-*!
v
Page 1 of 2
FORM HMDA 1, revised
(Pursuant to Public Laws 94-200 and 96-399)
Loan Disclosure Statement
Federal Enforcement
Agency for this Institution
Name:
Address:
Part A - Originations
Section 1 - Data for Property Located Within SMSAs in Which Institution Has Home or Branch Offices
Addendum Item
| OTHER HOME
| PURCHASE LOANS
| ("conventional"
| loans) (on l-to-4
| family dwellings)
CENSUS TRACT IT FHA, FmHA OR VA
(in numerical || LOANS (on l-to-4
sequence)
II family dwellings)
or
II
COUNTY NAME
II
11
II
II No. of
II loans
Principal
1
amount
1 No. of
(thousands) I loans
| HOME
I
I
I
j
I
I
IMPROVEMENT
LOANS (on l-to-4
| fami ly dwellings)
Principal
amount
I No. of
(thousands) I loans
TOTAL HOME PURCHASE
1|NON-OCCUPANT
AND HOME IMPROVEMENT 1|LOANS (on l-to-4
LOANS (on dwellings
||family dwellings)
for more than 4
II
families)
II
Principal
I No. of
amount
(thousands ) 1 loans
I11|
Principal
II
amount
I|No. of
(thousands) 1|loans
Principal
amount
(thousands)
Column Totals
Section 2 - Data for All Property Located Outside SMSAs in Which Institution Has Home or Branch Offices
iT r r r r r m
i
i / / / / / / ii
i
i
i
it t v / t v
ii/ / / / / / / / / /
11793
i--------------------------------- 1
------------------------------------
Federal Register / Vol. 46, No. 27 / Tuesday, February 10,1981 / Proposed Rules
Name of Depository Institution:
SMS A:
Year:
11794
Page 2 of 2
FORM HMDA 1, revised
(Pursuant to PubLic Laws 94-200 and 96-399)
Loan Disclosure Statement (cont.)
IT
CENSUS TRACT
(in numerical
sequence)
or
COUNTY NAME
FHA, FmHA OR VA
LOANS (on l-to-4
family dwellings)
No. of
loans
Principal
amount
(thousands)
OTHER HOME
PURCHASE LOANS
("conventional"
loans) (on l-to-4
family dwellings)
No. of
loans
Principal
amount
(thousands)
HOME IMPROVEMENT
LOANS (on l-to-4
family dwellings)
No. of
loans
Principal
amount
(thousands)
TOTAL HOME PURCHASE
AND HOME IMPROVEMENT
LOANS (on dwellings
for more than 4
families)
No. of
loans
Principal
amount
(thousands)
Addendum Item
NON-OCCUPANT
LOANS (on l-to-4
family dwellings)
No. of
loans
Principal
amount
(thousands)
Column Totals
Section 2 - Data for All Property Located Outside SMSAs in Which Institution Has Home or Branch Offices
TTTTTTTTTTT7
I7T T T T T 7T
\\/ / / / / / / / /
I ////// I
BILLING CODE 6210 - 01 -C
http://fraser.stlouisfed.org/
k Reserve Bank of St. Louis
Federal
1
/
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
Part B - Purchases
Section 1 - Data for Property Located Within SMSAs in Which Institution Has Home or Branch Offices
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
Appendix B—Federal Enforcement Agencies
The following list indicates which federal
agency enforces Regulation C for particular
classes of institutions. Any questions
concerning compliance by a particular
institution should be directed to the
appropriate enforcing agency.
National Banks
Comptroller of the Currency, Office of
C u s to m e r a n d C o m m u n ity P rog ra m s,
Washington, D.C. 20219.
S ta te M e m b e r B a n k s
Federal Reserve Bank serving the district in
which the state member bank is located.
Nonmember Insured Banks and Mutual
Savings Banks
Federal Deposit Insurance Corporation
Regional Director for the region in which the
bank is located.
Savings Institutions Insured by the FSLIC and
Members of the FHLB System (except for
Savings Banks insured by FDIC)
The Federal Home Loan Bank Board
Supervisory Agent in the district in which the
institution is located.
C red it U n io n s
Division of Consumer Affairs, National Credit
Union Administration, 1776 G Street, N.W.,
Washington, D.C. 20456.
O th e r D e p o s it o r y In s titu tion s
Federal Deposit Institution Corporation
Regional Director for the region in which the
institution is located.
(5) FFIEC’s proposed aggregation tables.
General Section 310 of the Home Mortgage
Disclosure Act (HMDA) as amended requires
the Federal Financial Institutions
Examination Council (FFIEC) to compile, for
each standard metropolitan statistical area
(SMSA), aggregate residential loan data by
census tract for all depository institutions
that are required to report under HMDA or
similar state regulations. The FFIEC is also
directed to produce tables for each SMSA
that indicate aggregate residential lending
patterns for various categories of census
tracts grouped according to location, age of
housing stock, income level, and racial
characteristics.
Under HMDA, depository institutions are
required to disclose separately data about
originations and purchases. The FFIEC
proposes to aggregate only the data about
loans originated by lenders (as reported in
the Board’s proposed loan disclosure
statement, Part A—Originations, Section I—
Data for Property Located Within SMSAs in
Which Institution Has Home or Branch
Offices; and equivalent data from exemptstate institutions). The FFIEC is proposing to
aggregate only loan originations since
originations reveal the amount of new funds
loaned in a particular census tract or SMSA.
Aggregated data on purchases could be
misleading, since they could reflect loans
originated in a particular area not only during
the current year, but also during any
preceding year. In addition, aggregation of
purchases could give a false impression of
activity since they often reflect another
lender’s originations and, when aggregated,
result in some duplication. Significant cost
savings can be achieved by aggregating only
origination information. The data on
purchases would, of course, be available from
individual depository institutions and at the
central repository.
The originated loan data reported by
covered depository institutions would be
aggregated for each of the 288 SMSAs in the
country. The tables produced would be
available for review by the public at the
central data repositories to be established in
each SMSA. Copies of the tables would be
available from the FFIEC at cost.
The aggregate residential lending patterns
reflected by the tables can be used to
enhance comparisons of an individual
depository institution’s residential lending
pattern to the aggregate. The aggregate
residential lending patterns can also be used
by public officials to aid in the determination
of target areas for public investment.
Census information to be used initially in
the aggregation of the loan disclosure
statements (or equivalent exempt-state
reports) will be from the 1970 Census of
Population and Housing. The 1980 Census of
Population and Housing material will be used
when the entire series becomes available.
The FFIEC is publishing for comment a
package of proposed tables that would be
produced for each SMSA. The proposed
tables are presented in five sections, each
addressing a specific aggregation requirement
of the act.
Proposed Tables. Section I presents a
proposed format for the basic aggregation
table to be produced for each SMSA. The
table details for each census tract or county
the aggregated HMDA disclosure information
for all covered depository institutions in a
particular SMSA. In addition, the racial,
income, and age of housing stock
characteristics of each census tract are
included.
Section II presents a proposed format to
satisfy the requirement that aggregate lending
patterns be shown for various groups of
census tracts in an SMSA, categorized by the
income characteristics of their population.
Three broad categories are proposed:
(a) Low income census tracts (those tracts
with median family income less than 80
percent of the SMSA median family income),
(b) Middle income census tracts (those
tracts with median family income between 80
and 120 percent of the SMSA median family
income), and
(c) Upper income census tracts (those
tracts with median family income greater
than 120 percent of the SMSA median family
income).
11795
Section III presents a proposed format to
satisfy the requirement that aggregate lending
patterns be shown for various groups of
census tracts in an SMSA, categorized by the
racial characteristics of their population. The
table proposes that the tracts be grouped
within three broad categories:
(a) Census tracts with less than 15 percent
minority population,
(b) Census tracts with between 15 and 75
percent minority population, and
(c) Census tracts with greater than 75
percent minority population.
Section IV presents a proposed format to
satisfy the requirement that aggregate lending
patterns be shown for various groups of
census tracts in an SMSA, categorized
according to their location. Two broad
categories of data aggregation are proposed:
(a) Central city (those census tracts that
comprise the core city of the SMSA), and
(b) SMSA less central city (those census
tracts and small counties that fall outside the
SMSA core city).
Section V presents a proposed format to
satisfy the requirement that aggregate lending
patterns be shown for various groups of
census tracts in an SMSA, categorized by the
age of the housing stock. Three categories are
proposed:
(a) Census tracts whose median housing
stock age is less than the SMSA median
housing stock age,
(b) Census tracts whose median housing
stock age is equal to the SMSA median
housing stock age, and
(c) Census tracts whose median housing
stock age is greater to the SMSA median
housing stock age, and
Comments. The FFIEC is particularly
requesting comments on the proposed tables
grouping census tracts according to income
characteristics (Section II) and racial
characteristics (Section III) of their
population. In the case of income
characteristics, will the census tract
groupings of low, middle, and upper income
using the SMSA median family income as a
base provide users with sufficient data to
analyze aggregate lending patterns? In the
case of racial characteristics, will the
proposed census tract groupings provide
users with sufficient data to analyze
aggregate lending patterns? Specific
comments relating to these two tables should
include suggestions based on the information
available from the 1970 Census of Population
and Housing.
Proposed Aggregation Tables
Section I. Aggregate Data
Aggregation of HMDA data for all covered
depository institutions in each SMSA
disclosed by either census tract or county
name in which an institution has offices.
Tables also provide racial, income, and
11796
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
housing unit age characteristics for each
geographic area.
Section II. Income Categories
Each census tract in an SMSA is
categorized by the relationship between its
median family income and the median family
income of the entire SMSA:
(a) Low income areas— census tracts with
median family income less than 80 percent of
SMSA median family income.
(b) Middle income areas—census tracts
with median family income between 80
percent and 120 percent of SMSA median
family income.
(c) Upper income areas— census tracts with
median family income greater than 120
percent of SMSA median family income.
Section III. Race Categories
Each census tract in an SMSA is
categorized by the racial characteristics of its
population:
(a) Census tracts with less than 15 percent
minority population.
(b) Census tracts with between 15 and 75
percent minority population.
(c) Census tracts with greater than 75
percent minority population.
Section IV. Location Categories
Each census tract in an SMSA is
categorized by its general location; that is
central SMSA city(s) or within the SMSA but
outside the central city:
(a) Central SMSA city(s)— SMSA census
tracts that fall in the core SMSA city(s).
(b) SMSA less central city(s)—all SMSA
census tracts and counties not included in the
core city.
Section V. Age of Housing Stock Categories
Each census tract in an SMSA is
categorized by the median age of its housing
stock relative to the SMSA median housing
stock age:
(a) Census tracts whose median housing
unit age is less than the SMSA median
housing unit age.
(b) Census tracts whose median housing
unit age is equal to the SMSA median
housing unit age.
(c) Census tracts whose median housing
unit age is greater than the SMSA median
housing unit age.
BILLIMQ COOC # 2 1 0 -0 1 -**
Section I
SMSA ’IAMB"
ORIGINATIONS
Other
Census T r s c t
Humber,
or
County
FHA, FmllA o r VA
Loans
(1 -4 fam ily
d w e llin g s)
_______Loans________Amount
T o tal Home
Improvement
Loana
(1-4 fam ily
d w ellin gs)
Ho. o f
P rin cip a l
Loans______ Amount
T o tal Mortgage
Loans on M ultlPamlly
______ Dwellings
Ho. of
P rin cip al
Loans______ Amount
Hon-Occupant
Loans
(1-4 fs n lly
dw ellings)
Ho. o f
P rin cip al
Loans______Amount
Percentage
M inority Population
Median Income
as a
percent of SMSA
Median Income
Percentage_________ Percentage
Median age o f
hou sin g st o c k 2 /
Tears
Census Tract
0001
9999
County Hame
---------------------------------------------------------SN9A percentage of minority population:
IHSA median income:
SMSA median age o f housing sto ck:
m
m
y1/
I f a census tr a c t number I s dup licated within an SMSA, a county d esig n ation w ill be Included.
Because the census data on housing stock age I s c ste g o rlse d In I n t e r e s t s o f se v e ral y e a rs, the median housing stock ags o f a census t r a c t I s determined by c a lc u la tin g the midpoint o f
the In te rv al In which the median un it f a l l s .
11797
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
Name 1/ _________
__
Ho. o f
P r in c ip a l
R e sid e n tia l
Mortgage Loans
("Conventional")
(1-4 fam ily
_____ dw ellings)_____
Ho. of
P rin cip al
Loans_______ Amount
an
_
11798
Fedwml Register / Vol. 46, No. 27 / Tuesday, February 10,1981 / Proposed Rules
S e c t io n I I
SMSA "RAIS"
0K1CIRAXI0H3
Caaaua T r a c t
Income
C atego ry
FHA., FaHA o r VA
Loans
(1 -4 fa m ily
d w e llin g *)
Mo. o f
Loans
P r i n c ip a l
Amount
O ther
H— id a m t i a l
M ortgage Loans
("C o n v e n tio n a l")
(1 - 4 fa m ily
d w e llin g s )
Ko. o f
P r i n c ip a l
Loans
Amount
T o t a l Hama
Improvement
Loaxls
(1 -4 fa m ily
d w e llin g s )
Ko. o f
P r i n c ip a l
L o a n a ____ Amount____
T o t a l M ortgage
Loan s on M u ltiFam ily
D w ellin gs
No. o f
P r i n c ip a l
Loans
Amount
Mon-Occupant
Loans
(1 -4 fa m ily
d w e llin g s)
No. o f
P r in c ip a l
Loans
Amount
Low Income
ftz e e a :
M iddle Incowe
A r e a s:
Upper Income
ir iu a :
Column T o t a l
S e c t io n I I I
swan "HAMS"
OftXSXKmOHS
FHA, FaBA o r VA
Census T r a c t
R a c ia l
C atego ry
(1 -4 f s a l l y
d w e llin g s )
No. o f
Loans
L o ss than 13X
m in o r ity t r a c t s :
15X to 75X
m in o r ity t r a c t s :
g r e a t e r than 73Z
m in o rity t r a c t s :
C o lu sa T o ta l
P rin c ip a l
Amount
O ther
R e sid e n tia l
M ortgage L oan s
("C o n v e n tio n a l")
(1—4 fa m ily
d w e llin g s )
No. o f
P r i n c ip a l
liMtnn
Amount
T o t a l Hama
Improvement
Tj3aqy
(1 -4 fa m ily
.
____
No. o f
P r i n c ip a l
Loams
Amount
T o t a l M ortgage
Loans on M u ltiFam ily
D w ellin g s
No. o f
P r i n c ip a l
Loans
Aeount
Mon-Occupant
Loans
(1 -4 fa m ily
d w e llin g s)
Mo. o f
P r in c ip a l
Loans
Amount
Federal Register / Vol. 46, No. 27 / Tuesday, February 10, 1981 / Proposed Rules
S e c tio n IV
SMSA "NAME”
ORIGINATIONS
L o c atio n
C atego ry
FHA, M IA o r VA
Loans
(1 -4 fa m ily
d w e llin g s )
No. o f
Loans
P r i n c ip a l
Amount
Other
R e s id e n t ia l
M ortgage Loans
("C o n v e n tio n a l")
(1 -4 fa m ily
d w e llin g s }
No. o f
P r i n c ip a l
Loans
Amount
T o t a l Homs
Improvement
Loans
(1 -4 fa m ily
d w e llin g s )
No. o f
P r i n c ip a l
Loans
Amount
T o t a l M ortgage
Loene on M u ltiFam ily
D w ellin gs
No. o f
P r i n c ip a l
Loan s
Amount
Hon-Oc cup ant
Loans
(1 -4 fa m ily
No. o f
P r in c ip a l
Loans______ Amount
C e n tr a l C i t y ( a ) :
SMSA Leaa C e n tr a l
C ity (a ):
T o ta l
-/
a<SA l M * C#ntral cltT includes all cenaua tracte and nontracted count1 m
outside the central city(a) but within the SMSA.
S e c t io n V
Hotiein*
S to c k a g e :
Census T r a c t :
FHA, FaHA o r Ik
Median h o u sin g
Lo o m
a g e g r M te r ,
(1 -4 f s a d ly
le a a th a n , o r
d w e llin g s )
e q u a l to SMSA
m edian h o u sin g
No. o f
P rin c ip a l
u n it a g e 1 /
Loans
Amount
SMSA W
Or.ICUUTI.O*8
Ocher
R e s id e n t ia l
M ortgage Loams
("C o n v e n tio n a l")
( 1 - 4 fa m ily
d w e llin g s )
Ho. o f
P r i n c ip a l
Loans
Amount
T o t a l Home
(1 -4 fa m ily
d w e llin g s )
No. o f
P r i n c ip a l
Loans
Amount
T o t a l M ortgage
Loans on M u ltlF a n il j
D w e llin g s
Ho. o f
P r in c ip a l
Loans
Amount
Non-Occupant
Loans
(1 -4 fa m ily
d w e llin g s )
No. o f
P r in c ip a l
Loans
Amount
L eaa than
SMSA n e d ia n :
E qu al to
SMSA M edian:
G r e a te r than
SMSA n e d ian :
> «c «u ae the cenaua d a t a on b o w in g s to c k a g e i a c a t e g o r is e d in in t e r v a l s o f s e v e r a l y e a r s , th e n ed ian h o u sin g s t o c k a g e o f
a c e n su s t r a c t i a d eterm in ed try c a l c u l a t i n g th e a d d -p o in t o f th e i n t e r v a l in which th e v e i l an u n it f e l l a .
y
By order of the Board of Governors,
February 3, 1981.
James McAfee,
Assistant Secretary of the Board.
|FR Doc. 81-4559 Filed 2-9-81; 8:45 am]
MILLING CODE 6210-01-C
11799
@FedFRASER