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FEDERAL RESERVE BANK OF NEW YORK [ 9395 ~| Circular No. November 5, 1982 J HOME MORTGAGE DISCLOSURE Renewal of Exemptions from Disclosure Requirements T o A ll I n stitu tio n s S u b je c t to th e H o m e M o r tg a g e D is c lo s u r e A c t, a n d O th e rs C o n c e r n e d , in th e S e c o n d F e d e r a l R e s e r v e D is tr ic t: The following statement has been issued by the Board of Governors of the Federal Reserve System: The Federal Reserve Board has granted applications for renewal of exemptions from the disclosure requirements of the Federal Home Mortgage Disclosure Act, as amended in 1980, and of the Board’s Regulation C, which implements the Act, to the States of Connecticut, Massachusetts, New Jersey, and New York, effective November 5, 1982. The exemptions were granted based upon the Board’s determination that the states ’ laws provide for substantially similar disclosures and that there are adequate provisions for enforcement by these states. The Board also terminated the existing exemption for the State of California* which discontinued administration of the state’s mortgage disclosure laws. Printed on the following pages is the text of the Board’s orders. Questions regarding this matter may be directed to our Consumer Affairs and Bank Regula tions Department (Tel. No. 212-791-5914). A nthony M . So l o m o n , President. F E D E R A L R E S E R V E S YS T E M 12 CFR Part 203 [Reg. C; Docket No. R-0406] HOME MORTGAGE DISCLOSURE Order Approving Continuation of Exemption; Connecticut, Massachusetts, New Jersey, and New York AGENCY: Board of Governors of the Federal Reserve System. ACTION: Order. SUMMARY: The Board is approving applications for renewal of the exemptions of Connecticut, Massachusetts, New Jersey, and New York from the disclosure require ments of the federal Home Mortgage Disclosure Act, as amended in 1980, and the Board's Regulation C implementing the act. The exemptions are based upon the determination that state law provides for su bs ta n ti all y s im il ar disclosures and that there is adequate provision for enforcement of the state law. The approval is subject to certain conditions. EFFECTIVE DATE: November 5, 1982. FOR FURTHER INFORMATION CONTACT: John C. Wood, Senior Attorney, or Claudia Yarus or Clarence B. Cain, S ta f f Attorneys, Division of Consumer and Community A f f a i r s , Board of Governors of the Federal Reserve System, Washington, D.C. 20551 (202-452-2412). SUPPLEMENTARY INFORMATION: (1) Introduction. The Home Mortgage Disclosure Act (12 U.S.C. 2801 et seq. ), as implemented by Regulation C (12 CFR Part 203), requires depository in s t i t u t i o n s that have more than $10 m ill io n in assets and that are located in standard metropolitan s t a t i s t i c a l areas (SMSAs) to compile and disclose information on the geographic d is tr ib u ti o n of t h e ir mortgage and home improvement loans. The act and regulation permit the Board to grant exemptions'to statechartered depository i n s t i t u t i o n s subject to state mortgage disclosure laws that impose requirements su bs ta n ti al ly sim il ar to those of the federal law and that contain adequate provision for enforcement. The exemptions are subject to revocation i f the Board at any time determines that state law does not impose requirements s u bs ta n ti al ly s im il a r to federal law or does not adequately ensure enforcement. Because of changes in the requirements. of the federal act and regula tion in 1980 and 1981, res pe ct ivel y, the Board requested a reapplication from each of the currently exempt states as a condition of continuation of the exemp t io n s . Four of the presently exempt states (or fi nancial in s t i t u t i o n s in those states) reapplied, pursuant to § 306(b) of the act (12 U.S.C. 2805(b)) and § 203.3(b) of the regulation. The Board published a not ice, in v i t i n g public comment on the a p p li c a ti o n s , on May 24, 1982 (47 FR 22370). A number of com ments were received, a ll of them favoring renewal of the exemptions either unconditionally or with certain conditions. http://fraser.stlouisfed.org/ k Federal Reserve Bank of St. Louis - 2 After analysis of the ap pli cat io ns , the state law provisions, and the comments, the Board has determined that the standards for exemption have been met and, accordingly, that a ll four exemptions should be renewed, subject to certain conditions. (2) Order of exemption. The following order sets forth the terms of the Connecticut, Massachusetts, New Jersey, and New York exemptions. ORDER The states of Connecticut, Massachusetts, New Jersey, and New York (or fi nancial i n s t i t u t i o n s in those four states) have applied to the Board, pur suant to § 306(b) of the Home Mortgage Disclosure Act, for renewal of th eir exemptions from the act and the Board's Regulation C. On the basis of the record, the Board finds that the mortgage d i s c l o sure laws and regulations of those four states impose requirements subs ta nti all y s im il ar to those of the Home Mortgage Disclosure Act and Regulation C, and that the state laws and regulations contain adequate provision for enforcement. Based on that fi nd ing , the Board approves the applications for continuation of the exemptions, subject to the conditions set forth in the following paragraphs applicable to a l l four states, and, in the case of Connecticut and Massachusetts, subject to the further conditions set forth in the separate discussion of each st at e' s exemption below. Continuation of each exemption is granted on the condition that the state banking department wil l submit to the Federal Financial Institutions Examination Council (FFIEC), no la te r than the date sp ecified by the FFIEC each year, the data collected from the in s t i t u t i o n s subject to the state mortgage disclosure law pertaining to lending a c t i v i t y during the preceding calendar year. Each exemption is also conditioned upon the state banking department's following the procedures established by the FFIEC for transmittal of disclosure statements of those i n s t i t u t i o n s to the central repository for each standard metropolitan s t a t i s t i c a l area (SMSA) in the sta te , as required by § 304(f) of the act. These exemptions remain subject to revocation by the Board, pursuant to paragraph (e) of Appendix B to the regulation, i f at any time the Board determines that applicable state law does not in fact impose requirements that are subs tan tial ly s im il a r to those of the Home Mortgage Disclosure Act, or that the state is not adequately enforcing the state law. As required by paragraph (b)(3) of Appendix B, each applicant undertakes to inform the Board of any change in applicable state law or regulations within 30 days of such change. Connecticut. The Board granted the original Connecticut exemption by an order e f f e c t iv e September 11, 1978. The Connecticut Banking Department has applied to the Board, on behalf of state-chartered depository i n s t i t u t io n s - 3 - in Connecticut, for continuation of that exemption. The application is based upon the requirements of the Connecticut Home Mortgage Disclosure Act (Pub. Act No. 77-153), as amended by Pub. Act No. 81-128, and implementing regulations. In addition to the matters stated above, the continuation of the Connecticut exemption is conditioned upon the adoption by the banking depart ment, without substantial change, of certain proposed revisions (as submitted to the Board on August 5, 1982) to regulations promulgated under the Connecticut Home Mortgage Disclosure Act (§§ 36-455-1, 36-455-2, and 36-455-4 to 36-455-6 of the Regulations of Connecticut State Agencies). The f in a l revisions must be e f f e c t iv e with respect to loans made during calendar year 1982. The exemption will continue to apply to a ll Connecticut-chartered depository in s t i t u t i o n s that are subject to the Connecticut law. Massachusetts. The Board granted the original Massachusetts exemption by an order e f f e c t iv e December 8, 1976. The Commonwealth of Massachusetts, through i t s Division of Banks, has applied for a continuation of the exemption on behalf of banks and cr e d it unions in the Boston and Springfield-ChicopeeHolyoke SM.SAs. The application is based upon the requirements of the mortgage disclosure d ir e ct iv e s in the Massachusetts Banking D i v i s i o n ' s Administrative Bu l le ti n 18-2C, dated February 5, 1982. In addition to the matters stated above, the continuation of the Massachusetts exemption is subject to the condition that any subsequent Massa chusetts disclosure d ir e ct iv e s contain requirements su bs ta n ti all y identical to those set forth in the d ir e c ti v e referred to above. The exemption wil l continue to apply to a l l Massachusetts-chartered depository in s t i t u t i o n s that are subject to the Massachusetts mortgage d i s c l o sure d i r e c t i v e s , but applies only in part i f the i n s t i t u t i o n has a branch o f f i c e (as defined in Regulation C) located in any SMSA that is not covered by the state d i r e c t i v e s . In these circumstances, the i n s t i t u t i o n is exempt from the federal law with respect to loans rel at ing to property located in SMSAs covered by the Massachusetts d i r e c t i v e , but remains subject to the federal laws with respect to loans on property in other SMSAs in which i t has branch offices. The l a t t e r category of loans shall be disclosed in accordance with Regulation C. New Jersey. The Board granted the original New Jersey exemption by an order e f f e c t i v e April 1, 1978. United Jersey Banks (Princeton), Heritage Bancorporation (Cherry H i l l ) , and Princeton Bank (Princeton) have applied to the Board for continuation of the exemption. The applications are based upon the requirements of the New Jersey Home Mortgage Disclosure Act (N.J.S.A. 17:16F-1 et seq.) and the implementing regulations of the New Jersey Department of Banking. The exemption wil l continue to apply to a l l i n s t i t u t i o n s subject to the New Jersey law. New Jersey-chartered New York. The Board granted the original New York exemption by an order e f f e c t iv e December 8, 1976, as supplemented by an order dated May 9, 1977. The New York Banking Department has applied to the Board for continuation of the exemption. The application is based upon the requirements of New York Banking Law §§ 10, 36, and 125, as implemented by Supervisory Procedure G107 of the New York Banking Department. Supervisory Procedure G107 currently requires that loan data for any area not census tracted be reported by ZIP code. The Home Mortgage Disclosure Act and Regulation C, on the other hand, require that loan data for such areas be reported by county. The Board has been informed that a ll portions of a ll SMSAs in New York State are currently census tracted; therefore, th is discrepancy between G107 and the federal law is not of concern at present. The Board notes, however, that i f SMSAs in New York should change in the future so that some loan data become reportable under G107 by ZIP code, the discrepancy could aff ect the uniformity of the data to be aggregated by the FFIEC. In these circumstances, New York might be required to revise G107 to eliminate t h is problem as a condi tion of further continuation of i t s exemption. The exemption will continue to apply to a ll tory in s t i t u t i o n s subject to the New York law. New York-chartered deposi By order of the Board of Governors of the Federal Reserve System, October 29, 1982. (signed) Wi11iam W. Wiles William W. Wiles Secretary of the Board [SEAL] F E D E R A L R ES ER V E SYSTEM 12 CFR Part 203 [Reg. C; Docket No. R-0434] HOME MORTGAGE DISCLOSURE Order Terminating C a l i f o r n i a Exemption AGENCY: Board of Governors of the Federal Reserve System. ACTION: Order. SUMMARY: State-licensed savings and loan associations in C a l if o r n ia were granted an exemption from the federal Home Mortgage Disclosure Act in 1976, based upon the Board's determination that state law provides for substan tially sim il ar disclosures and that there is adequate provision for enforcement of the state law. The C a l i f o r n i a Department of Savings and Loan has informed the Board that, due to fi nancial considerations, the state is no longer able to ensure adequate enforcement of the state home mortgage disclosure requirements for state-licensed savings and loan associations, and that i t has decided not to seek an extension of the exemption. The Board is therefore terminating the exemption. State-licensed savings and loans must comply with the federal act and Regulation C beginning with the reporting of data on loans made in calendar year 1982. EFFECTIVE DATE: November 5, 1982. FOR FURTHER INFORMATION CONTACT: John C. Wood, Senior Attorney, or Clarence B. Cain, S ta f f Attorney, Di vision of Consumer and Community A f f a i r s , Board of Governors of the Federal Reserve System, Washington, D.C. 20551 (202-452-2412). SUPPLEMENTARY INFORMATION: (1) Introduction. The Home Mortgage Disclosure Act (12 U.S.C. 2801 et seq. ), as implemented by Regulation C (12 CFR Part 203), requires depository in s t i t u t i o n s that have more than $10 m ill io n in assets and that are located in standard metropolitan s t a t i s t i c a l areas (SMSAs) to compile and disclose information on the geographic d is tr ib u ti o n of t h e ir mortgage and home improvement loans. The act and regulation permit the Board to grant exemptions to statechartered depository i n s t i t u t i o n s subject to state mortgage disclosure laws that impose requirements su bs ta n ti all y s im il ar to those of the federal law and that contain adequate provision for enforcement. The exemptions are subject to revocation i f the Board at any time determines that state law does not impose requirements su bs ta n ti al ly s im il a r to federal law or does not adequately ensure enforcement. On December 8, 1976, the Board granted an exemption from the disclosure requirements of the act and Regulation C to state-licensed savings and loan associations subject to the C a l i f o r n i a Administrative Code (Subchapter 20). The exemption was based on the requirements of that code and the implementing d ir e c ti v e s of the C a l i f o r n i a Department of Savings and Loan, which the Board determined to be su bs ta n ti al ly s i m i l i a r to the requirements imposed under the federal Home Mortgage Disclosure Act. Th^* Board also determined that there was adequate provision for enforcement of the state law. \ The federal act was amended in 1980 (Pub. L. 96-399, October 8, 1980), and the Board implemented the statutory amendments by revising Regulation C. Because of these changes in the federal law, the Board requested a reapplication from Ca l if o r n ia and from the other exempt states. The C a l if o r n ia Department of Savings and Loan submitted but l a t e r withdrew an application for continuation of the exemption for state-licensed savings and loan associations. The Department has informed the Board that, because of fi na ncial considerations, i t can no longer ensure compliance with the state law or produce mortgage disclosure statements for these associations. Accordingly, the Board has determined that revocation of the C a l if o r n ia exemp tion is mandated by the statute.. Notice of th is action has not been published for comment. Under para graph (e) of Appendix B to Regulation C, the Board may omit procedures i t finds unnecessary. Publication for comment is unnecessary in th is case because, given discontinuation of C a l i f o r n i a ' s mortgage loan disclosure program, there is no longer any basis for the exemption. (2) Order of termination. tion of the C a l if o r n ia exemption. The following order sets forth the termina ORDER The Board granted an exemption to C a l if o r n ia state-licensed savings and loan associations from the federal Home Mortgage Disclosure Act in 1976, based on the existence of subs tan tial ly s im il ar requirements imposed by state law, and on the existence of adequate provision for enforcement of that law by state a u th or it ie s . Following amendment of the federal act and Regulation C, the C a l if o r n ia Department of Savings and Loan submitted an application for continued exemption. That application has been withdrawn. The Department has informed the Board that, due to fi nancial considerations, i t can no longer ensure adequate enforcement of the state law and regulation or produce mortgage disclosure statements for state-licensed savings and loan associations, and that i t has decided not to seek an extension of the exemption. The Board is therefore terminating the C a l if o r n ia exemption. State-licensed savings and loan associations that were previously exempted from the federal law on the basis of the C a l if o r n ia act henceforth shall comply with the federal act and regulation, beginning with the data required by the act and Regulation C for loans originated or purchased in calendar year 1982. By order of the Board of Governors of the Federal Reserve System, October 29, 1982. (signed) William W. Wiles Will i am W. Wiles Secretary of the Board [SEAL]
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