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f\ i _ I Q(j U>l Septem ber 29, 1993 To All Depository Institutions in the Second Federal Reseive District, and Others Maintaining Sets o f Board Regulations: Enclosed is a copy o f a revised Regulation C pamphlet, "Home Mortgage Disclosure," as amended effective March 1, 1993 of the Board of Governors o f the Federal Reserve System. The revised pamphlet supersedes the previous printing o f this regulation and any subsequent amendments thereto. Circulars Division FEDERAL RESERVE BANK OF NEW YORK B o ard o f G overn ors o f the F ed eral R eserve System Regulation C Home Mortgage Disclosure 12 C F R 203; as amended effective M arch 1, 1993 Any inquiry relating to this regulation should be addressed to the Federal Reserve Bank of the D istrict in which the inquiry arises. July 1993 Contents Page Section 203.1— Authority, purpose, and scope .................................................................. (a ) A u th o rity .............................................. (b ) P urpose................................................... (c ) Scope........................................................ (d ) Loan aggregation and central data depositories ......................................... Section 203.2— Definitions............................. Secton 203.3— Exem pt institu tion s............ (a ) Exemption based on location, asset size, or number of homepurchase lo a n s ..................................... (b ) Exemption based on state la w . . . . (c ) Loss of exem p tio n ............................. Section 203.4— Compilation of loan data . (a ) D ata format and item ization.......... (b ) Collection of data on race or national origin, sex, and income . . ( c ) Optional d a t a ....................................... (d ) Excluded d a t a ..................................... Section 203.5— Disclosure and reporting . Page (a ) 1 1 1 1 Reporting to agency ......................... 3 (b ) Public disclosure of statement . . . 3 (c ) Public disclosure of loan application r e g is te r ........................... 3 (d ) Availability of d a t a ........................... 4 (e ) 1 1 2 2 2 2 2 2 3 3 3 3 Notice of availability......................... 4 Section 203.6— E n fo rcem en t......................... 4 Administrative en forcem ent.......... 4 (b ) Bona fide e r r o r s .................................. (a ) 4 Appendix A — Form and instructions for completion of H M D A loan/application reg ister............................................................... 4 Appendix B— Form and instructions for data collection on race or national origin and s e x ................................................. 17 STATUTORY PROVISIONS Home Mortgage Disclosure A c t ............... 19 Public Law 96-399, Title III, Section 340 . 26 Regulation C H om e M ortgage D isclosure 12 CFR 203*; as amended effective March 1, 1993 SECTION 203.1— Authority, Purpose, and Scope (a ) Authority. This regulation is issued by the Board of Governors of the Federal Reserve System ( “Board” ) pursuant to the Home Mortgage Disclosure A ct (1 2 USC 2801 et seq.), as amended. The information-collection requirements have been approved by the U.S. Office of Management and Budget under 44 USC 3501 et seq. and have been assigned OM B No. 7100-0247. (b ) Purpose. ( 1 ) This regulation implements the Home Mortgage Disclosure A ct, which is intended to provide the public with loan data that can be used— (i) to help determine whether financial institutions are serving the housing needs of their communities; (ii) to assist public officials in distribut ing public-sector investments so as to at tract private investment to areas where it is needed; and (iii) to assist in identifying possible dis criminatory lending patterns and enforc ing antidiscrimination statutes. (2 ) Neither the act nor this regulation is intended to encourage unsound lending practices or the allocation of credit. ( c ) Scope. This regulation applies to certain financial institutions, including banks, saving associations, credit unions, and other m ort gage lending institutions, as defined in section 2 0 3 .2 (e ). It requires an institution to report data to its supervisory agency about homepurchase and home-improvement loans it originates or purchases, or for which it re ceives applications; and to disclose certain data to the public. (d ) Loan aggregation and central data depos itories. Using the loan data made available by financial institutions, the Federal Financial Institutions Examination Council will prepare disclosure statements and will produce vari* Code of Federal Regulations, title 12, chapter II, part 203. ous reports for individual institutions for each metropolitan statistical area (M S A ), showing lending patterns by location, age of housing stock, income level, sex, and racial character istics. The disclosure statements and reports will be available to the public at central data depositories located in each MSA. A listing of central data depositories can be obtained from the Federal Financial Institutions Exam ina tion Council, Washington, D .C. 20006. SECTIO N 203.2— Definitions In this regulation— (a ) Act means the Home Mortgage Disclo sure A ct (12 USC 2801 et seq.), as amended. (b ) Application means an oral or written re quest for a home-purchase or home-improve ment loan that is made in accordance with procedures established by a financial institu tion for the type of credit requested. ( c ) Branch office means— ( 1 ) any office of a bank, savings associa tion, or credit union that is approved as a branch by a federal or state supervisory agency, but excludes free-standing electron ic terminals such as automated teller machines; (2 ) any office of a mortgage-lending insti tution (other than a bank, savings associa tion, or credit union) that takes applica tions from the public for home-purchase or home-improvement loans. A mortgage lending institution is also deemed to have a branch office in an M SA if, in the preceding calendar year, it received applications for, originated, or purchased five or more homepurchase or home-improvement loans on property located in that MSA. (d ) Dwelling means a residential structure (whether or not it is attached to real proper ty) located in a state of the United States of America, the D istrict of Columbia, or the Commonwealth of Puerto Rico. The term in cludes an individual condominium unit, coop erative unit, or mobile or manufactured home. 1 § 203.2 (e ) Financial institution means— (1 ) a bank, savings association, or credit union that originated in the preceding cal endar year a home-purchase loan (other than temporary financing such as a con struction loan) secured by a first lien on a one- to four-family dwelling if— (i) the institution is federally insured or regulated; or (ii) the loan is insured, guaranteed, or supplemented by any federal agency; or (iii) the institution intended to sell the loan to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; (2 ) a for-profit mortgage-lending institu tion (other than a bank, savings associa tion, or credit union) whose home-purchase loan originations equaled or exceeded 10 percent of its loan-origination volume, mea sured in dollars, in the preceding calendar year. (f) Home-improvement loan means any loan that— (1 ) is stated by the borrower (at the time of the loan application) to be for the pur pose of repairing, rehabilitating, or remod eling a dwelling; and ( 2 ) is classified by the financial institution as a home-improvement loan. (g ) Home-purchase loan means any loan se cured by and made for the purpose of pur chasing a dwelling. (h ) Metropolitan statistical area or MSA means a metropolitan statistical area or a pri mary metropolitan statistical area, as defined by the U.S. Office of Management and Budget. SECTIO N 203.3— Exempt Institutions (a ) Exemption based on location, asset size, or number o f home-purchase loans. (1 ) A bank, savings association, or credit union is exempt from the requirements of this regulation for a given calendar year if on the preceding December 31— (i) the institution had neither a home office nor a branch office in an MSA; or (ii) the insitution’s total assets were $10 million or less. 2 Regulation C (2 ) A for-profit mortgage lending institu tion (other than a bank, savings associa tion, or credit union) is exempt from the requirements of this regulation for a given calendar year if— (i) the institution had neither a home office nor a branch office in an M SA on the preceding December 31; or (ii) the institution’s total assets com bined with those of any parent corpora tion were $10 million or less on the pre ceding December 31, and the institution originated fewer than 100 home-purchase loans in the preceding calendar year. (b ) Exem ption based on state law. ( 1 ) A state-chartered or state-licensed financial institution is exempt from the requirements of this regulation if the Board determines that the institution is subject to a state dis closure law that contains requirements sub stantially similar to those imposed by this regulation and contains adequate provisions for enforcement. (2 ) Any state, state-chartered, or statelicensed financial institution, or association of such institutions may apply to the Board f o r a n y e x e m p tio n u n d e r th is p a r a g r a p h . ( 3 ) An institution that is exempt under this paragraph shall submit the data re quired by the state disclosure law to its state supervisory agency for purposes of aggregation. ( c ) Loss o f exemption. (1 ) An institution los ing an exemption that was based on the criteria set forth in paragraph (a ) of this section shall comply with this regulation beginning with the calendar year following the year in which it lost its exemption. (2 ) An institution losing an exemption that was based on state law under para graph (b ) of this section shall comply with this regulation beginning with the calendar year following the year for which it last re ported loan data under the state disclosure law. SECTIO N 203.4— Compilation of Loan Data (a ) D ata fo rm a t and itemization. A financial institution shall collect data regarding appli Regulation C cations for, and originations and purchases of, home-purchase and home-improvement loans (including refinancings of both) for each cal endar year. These data shall be presented on a register in the format prescribed in appendix A and shall include the following items: ( 1 ) A number for the loan or loan applica tion, and the date the application was received. (2 ) The type and purpose of the loan. (3 ) The owner-occupancy status of the property to which the loan relates. (4 ) The amount of the loan or application. ( 5 ) The type of action taken, and the date. ( 6 ) The location of the property to which the loan relates, by MSA, state, county, and census tract, if the institution has a home or branch office in that MSA. (7 ) The race or national origin and sex of the applicant or borrower, and the income relied upon in processing the loan application. (8 ) The type of entity purchasing a loan that the institution originates or purchases and then sells within the same calendar year. (b ) Collection o f data on race or national ori gin, sex, and income. (1 ) A financial institution shall collect data about the race or national origin and sex of the applicant or borrower as pre scribed in appendix B. If the applicant or borrower chooses not to provide the infor mation, the lender shall note the data on the basis of visual observation or surname, to the extent possible. (2 ) R ace or national origin, sex, and in come data may but need not be collected for— (i) loans purchased by the financial in stitution; or (ii) applications received or loans origi nated by a bank, savings association, or credit union with assets on the preceding December 31 of $30 million or less. (c ) Optional data. A financial institution may report the reasons it denied a loan application. (d ) Excluded data. A financial institution shall not report— (1 ) loans originated or purchased by the § 203.5 financial institution acting in a fiduciary ca pacity (such as trustee); ( 2 ) loans on unimproved land; ( 3 ) temporary financing (such as bridge or construction loans); ( 4 ) the purchase of an interest in a pool of loans (such as mortgage-participation cer tificates); or (5 ) the purchase solely of the right to serv ice loans. S E C T I O N 2 0 3 .5 — D isclo su re and R e p o rtin g (a ) Reporting to agency. By M arch 1 follow ing the calendar year for which the loan data are compiled, a financial institution shall send two copies of its complete loan application register (if submitted in paper form ) to the agency office specified in appendix A of this regulation, and shall retain a copy for its rec ords for a period of not less than three years. A financial institution need only submit one copy when the submission is on computer tape or diskette. (b ) Public disclosure o f statement. A financial institution shall make its mortgage loan dis closure statement (to be prepared by the Fed eral Financial Institutions Examination Coun cil) available to the public at its home office no later than three business days after receiv ing it from the Examination Council. A finan cial institution shall also make its disclosure statement available to the public within ten business days in at least one branch office in each additional M SA where it has offices. The disclosure statement at a branch office need only contain data relating to properties in the M SA where the branch office is located. (c ) Public disclosure o f loan application regis ter. A financial institution shall make its loan application register available to the public af ter modifying it in accordance with appendix A. An institution shall make its modified reg ister available following the calendar year for which the data are compiled, by M arch 31 for a request received on or before M arch 1, and within 30 days for a request received after M arch 1. The modified register made avail able at a branch office need only contain data ' 3 § 203.5 relating to properties in the M SA where the branch office is located. (d ) Availability o f data. A financial institu tion shall make its modified register available to the public for a period of three years and its disclosure statement available for a period of five years. An institution shall make the data available for inspection and copying during the hours the office is normally open to the public for business. It may impose a reason able fee for any cost incurred in providing or reproducing the data. (e ) Notice o f availability. A financial institu tion shall post a general notice about the availability of its disclosure statement in the lobbies of its home office and any physical branch offices located in an MSA. Upon re quest, it shall promptly provide the location of the institution’s offices where the statement is available. A t its option, an institution may in clude the location in its notice. SECTIO N 203.6— Enforcement (a ) Administrative enforcement.. A violation of the act or this regulation is subject to ad ministrative sanctions as provided in section 305 of the act, including the imposition of civ il money penalties, where applicable. Compli ance is enforced by the agencies listed in ap pendix A of this regulation. (b ) Bona fide errors. An error in compiling or recording loan data is not a violation of the act or this regulation if it was unintentional and occurred despite the maintenance of pro cedures reasonably adopted to avoid such errors. A P P E N D IX A — Form and Instructions for Completion of HMD A L o an / Application Register Paperwork Reduction A ct Notice Public reporting burden for collection of this information is estimated to vary from 10 to 10,000 hours per response, with an average of 200 hours per response, including time to gather and maintain the data needed and to review instructions and complete the informa4 Regulation C tion collection. Send comments regarding this burden estimate or any other aspect of this collection of information, including sugges tions for reducing the burden, to Secretary, Board of Governors of the Federal Reserve System, Washington, D .C. 20551; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washing ton, D .C. 20503. I. Who Must File a Report A. Depository institutions. Subject to the ex ception discussed below, banks, savings asso ciations, and credit unions must complete a register listing data about loan applications re ceived, loans originated, and loans purchased if on the preceding December 31 an institu tion— 1. had assets of more than $10 million, and 2. had a home or a branch office in a “met ropolitan statistical area” or a “primary metropolitan statistical area” (both are re ferred to in these instructions by the term “ M SA ” ). Example: If on December 31 you had a home or a branch office in an M SA and your assets exceeded $10 million, you must com plete a register that lists the home-purchase and home-improvement loans that you origi nate or purchase (and also lists applications that did not result in an origination) begin ning January 1. B. Depository institutions— exception. You need not complete a register— even if you meet the tests for asset size and location— if your institution is a bank, savings association, or credit union that made no first-lien homepurchase loans (including refinancings) on one- to four-family dwellings in the preceding calendar year. This exception does not apply in the case of nondepository institutions. C. Other lending institutions. Subject to the exception discussed below, for-profit m ort gage lending institutions (other than banks, savings associations, and credit unions) must complete a register listing data about loan ap plications received, loans originated, and loans purchased if the institution had a home or branch office in an M SA on the preceding December 31, and— Appendix A Regulation C 1. had assets of more than $10 million (based on the combined assets of the insti tution and any parent corporation) on the preceding December 31, or 2. originated 100 or more home-purchase loans (including refinancings of such loans) during the preceding calendar year, regard less of asset size. D. Other lending institutions— exception. You need not complete a register— even if you meet the tests for location and asset size or number of home-purchase loans— if your in stitution is a for-profit mortgage lender (other than a bank, savings association, or credit un ion) and the home-purchase loans that you originated in the preceding calendar year (in cluding refinancings) came to less than 10 percent of your total loan-origination volume, measured in dollars. E. If you are the subsidiary of a bank or sav ings association, you must complete a separate register for your institution. You will submit the register, directly or through your parent, to the agency that supervises your parent. (See paragraph V I.) F . Institutions that are specifically exempted by the Federal Reserve Board from complying with the federal Home Mortgage Disclosure A ct because they are covered by a similar state law on mortgage loan disclosures must use the disclosure form required by their state law and submit the data to their state supervi sory agency.I. II. Required Form at and Reporting Procedures A . Institutions are expected to submit data to their supervisory agencies in an automated, machine-readable form unless 100 or fewer application and loan entries are reported. The format must conform exactly to the form F R H M D A -L A R , including the order of col umns, column headings, etc. Contact your federal supervisory agency for information regarding procedures and technical specifica tions for automated data submission. An insti tution that submits its register in nonautomated form must send two copies that are typed or computer printed. You must use the format of the loan/application register but are not required to use the form itself. E ach page must be numbered, and the total number of pages must be given (for example, “ Page 1 of 3”). B. The required data are to be entered in the register for each loan origination, each appli cation acted on, and each loan purchased dur ing the calendar year. Y ou r institution should decide on the procedure it wants to follow— for example, whether to begin entering the re quired data when an application is received, or to wait until final action is taken (such as when a loan goes to closing or an application is denied). Keep in mind that an application is to be reported in the calendar year when final action is taken. Report loan originations in the year they go to closing; if an application has been approved but has not yet gone to closing at year-end, report it the following year. C. Y ou r institution may collect the data on separate registers at different branches, or on separate registers for different loan types (such as for home-purchase or homeimprovement loans, or for loans on multifami ly dwellings). But make sure the application or loan numbers (discussed under paragraph V .A .I., below) are unique. D. Entries need not be grouped on your regis ter by MSA, or chronologically, or by census tract numbers, or in any other particular order. III. Submission of H M D A -L A R and Public Release of Data A. You must submit the data for your institu tion to the office specified by your supervisory agency no later than M arch 1 following the calendar year for which the data are com piled. A list of the agencies appears at the end of these instructions. B. You must submit all required data to your supervisory agency in one complete package, with the prescribed transmittal sheet. An offi cer of your institution must certify to the ac curacy of the data. C. You are encouraged to provide in a cover letter an approximate count of the total num ber of line entries contained in your data sub mission. If you are a depository institution, 5 Appendix A you also are asked to include a list of the MSAs where you have a home or branch office. D. Availability o f disclosure statement. The Federal Financial Institutions Examination Council (F F I E C ) will prepare a disclosure statement from the date you submit. Y ou r dis closure statement will be returned to the name and address indicated on the transmittal sheet. Within three business days of receiving the disclosure statement, you must make a copy available at your home office for inspec tion by the public. You also must make the disclosure statement available, within 10 busi ness days after receiving it from the F F IE C , in at least one branch office in each additional M SA where you have physical offices. F o r these purposes, a business day is any calendar day other than a Saturday, Sunday, or legal public holiday. Availability o f modified loan application register. E. 1. To protect the privacy of applicants and borrowers, an institution must modify its loan application register by removing the following information before releasing it to the public: the application or loan number, date application received, and date of action taken. 2. A financial institution must make its modified register available following the calendar year for which the data are com piled, by M arch 31 for a request received on or before M arch 1, and wthin 30 days for a request received after M arch 1. F . Location and format o f disclosed data. A financial institution must make a complete copy of its disclosure statement and modified register available to the public at its home of fice. Institutions may make these data avail able in hard copy or in automated form (such as by floppy disk or computer tap e). A l though you are not required to make the mod ified loan application register available in cen sus-tract order, you are strongly encouraged to do so in order to enhance its utility to users. If you have physical branch offices in other MSAs, you must make available, in at least one branch office in each of those MSAs, either a complete copy of the disclosure state6 Regulation C ment or the portion of it that relates to prop erties in that MSA. Similarly, a modified reg ister at a branch office need only reflect data concerning properties within the M SA where the branch is located. You are not required to prepare a modified loan application register in advance of receiv ing a request from the public for this informa tion, but must be able to respond to a request within 30 days. G. Posters. Y o u r agency can provide you with H M D A posters that you can use to inform the public of the availability of your disclosure statement, or you may print your own posters. IV. Types of Loans and Applications Covered and Excluded by H M D A Types o f loans and applications to be reported. A. 1. Report the data on home-purchase and home-improvement loans that you originat ed (th at is, loans that were closed in your nam e) and loans that you purchased during the calendar year covered by the report. Report these data even if the loans were subsequently sold by your institution. In clude refinancings of home-purchase and home-improvement loans. 2. Report the data for applications for home-purchase and home-improvement loans that did not result in originations— for example, applications that your institu tion denied or that the applicant withdrew during the calendar year covered by the report. 3. In the case of brokered loan applications or applications forwarded to you through a correspondent, report as originations loans that you approved and subsequently ac quired according to a preclosing arrange ment (whether or not they closed in your institution’s nam e). Additionally, report the data for all applications that did not re sult in originations— for example, applica tions that your institution denied or that the applicant withdrew during the calendar year covered by the report (whether or not they would have closed in your institution’s nam e). F o r all of these loans and applica tions, report the race or national origin, sex, and income information, unless your insti- Appendix A Regulation C tution is a bank, savings association, or credit union with assets of $30 million or less on the preceding December 31. 4. Originations are to be reported only once. If you are the loan broker or corre spondent, do not report as originations loans that you forwarded to another lender for approval prior to closing, and that were approved and subsequently acquired by that lender (whether or not they closed in your nam e). 5. Report applications that were received in the previous calendar year but were act ed upon during the calendar year covered by the current register. B. D ata to be excluded. Do not report loans or applications for loans of the following types: 1. Loans that, although secured by real es tate, are made for purposes other than home purchase, home improvement, or refi nancing (F o r example, do not report a loan secured by residential real property for pur poses of financing college tuition, a vaca tion, or goods for business inventory.) 2. Loans made in a fiduciary capacity (for example, by your trust department) 3. Loans on unimproved land 4. Construction or bridge loans and other temporary financing 5. The purchase of an interest in a pool of loans (such as mortgage-participation certificates) 6. The purchase solely of the right to serv ice loansV . V . In s tru ctio n s fo r C o m p letion o f L o a n / A p p licatio n R e g iste r A . Application o r loan inform ation 1. Application o r loan number. Enter an identifying number that can be used later to retrieve the loan or application file. It can be any number of your choosing (not ex ceeding 25 characters). You may use let ters, numerals, or a combination of both. Make sure that all numbers are unique within your institution. If your register con tains data for branch offices, for example, you could use a letter or a numerical code to identify the loans or applications of dif ferent branches, or could assign a certain series of numbers to particular branches to avoid duplicate numbers. You are strongly encouraged not to use the applicant’s or borrower’s name or Social Security number, for privacy reasons. 2. Date application received. Enter the date the loan application was received by your institution by month, day, and year, using numerals in the form M M /D D /YY (for example, 01/15/92). If your institution normally records the date shown on the ap plication form, you may use that date in stead. Enter “NA” for loans purchased by your institution. 3. Type. Indicate the type of loan or appli cation by entering the applicable code from the following: 1— Conventional (any loan other than FHA, VA or FmHA loans) 2— FHA-insured (Federal Housing Administration) 3— VA-guaranteed (Veterans Admini stration) 4— FmHA-insured (Farmers Home Administration) 4. Purpose. Indicate the purpose of the loan or application by entering the applicable code from the following: 1— Home purchase (one- to four-family) 2— Home improvement (one- to fourfamily) 3— Refinancing (home purchase or home improvement, one- to four-family) 4— Multifamily dwelling (home pur chase, home improvement, and refinancings) 5. Explanation o f purpose codes Code 1: Home purchase a. This code applies to loans and ap plications made for the purpose of pur chasing a residential dwelling for one to four families, if the loan is to be se cured by the dwelling being purchased or by another dwelling. b. At your option, you may use code 1 for loans that are made for homeimprovement purposes but are secured by a first lien, if you normally classify such first-lien loans as home-purchase loans. Code 2: Home improvement a. Code 2 applies to loans and applica7 Appendix A tions for loans that (1 ) the borrowers have said will be used for repairing, re habilitating, or remodeling one- to four-family residential dwellings, and ( 2 ) are recorded on your books as home-improvement loans. b. Report both secured and unsecured loans. c. A t your option, you may report data about home-equity lines of cred it— even if the credit line is not record ed on your institution’s books as a home-improvement loan. If you choose to do so, you may report a home-equity line of credit as a homeimprovement loan if the borrower or applicant indicates, at the time of ap plication or when the account is opened, that some portion of the pro ceeds will be used for home improve ment. (See paragraph 8, “ Loan amount,” below.) If you report origi nations of home-equity lines of credit, you must also report applications for such loans that did not result in originations. Code 3: Refinancings a. Use this code for refinancings (and applications for refinancings) of homepurchase or home-improvement loans on one- to four-family residential dwellings. A refinancing involves the satisfaction of an existing obligation that is replaced by a new obligation undertaken by the same borrower. But do not report a refinancing if, under the loan agreement, you are uncondi tionally obligated to renew or refinance the obligation, or you are obligated to renew or refinance the obligation sub ject to conditions within the borrow er’s control. b. Use this code whether or not you were the original creditor on the loan being refinanced, and whether or not the refinancing involves an increase in the outstanding principal. c. Report a refinancing if the amount outstanding on the original loan, plus the amount of new money (if any) that is for home-purchase or home-im provement purposes, is more than 50 8 Regulation C percent of the total new loan amount. Do not report a refinancing if 50 per cent or less of the loan proceeds or the amount applied for is for home pur chase or home improvement. Code 4: Multifamily dwelling a. Use this code for loans and loan ap plications on dwellings for five or more families, including home-purchase loans, refinancings, and loans for re pairing, rehabilitation, and remodeling purposes. b. Do not use this code for loans on individual condominium or coopera tive units; use codes 1, 2, or 3 for such loans, as applicable. 6. Owner occupancy. Indicate whether the property to which the loan or loan applica tion relates is to be owner-occupied as a principal dwelling by entering the applica ble code from the following: 1— Owner-occupied as a principal dwelling 2— N ot owner-occupied 3— N ot applicable 7. Explanation o f codes a. Use code 2 for second homes or vaca tion homes, as well as rental properties. b. Use code 2 only for nonoccupant loans, or applications for nonoccupant loans, related to one- to four-family dwellings (including individual condo minium or cooperative units). c. Use code 3 if the property to which the loan relates is a multifamily dwelling; is not located in an MSA; or is located in an M SA in which your institution has neither a home nor a branch office. d. F o r purchased loans, you may assume that the property will be owner-occupied as a principal dwelling (code 1) unless the loan documents or application con tain information to the contrary. 8. Loan amount. Enter the amount of the loan or application. Do not report loans be low $500. Show the amount in thousands, rounding to the nearest thousand ($ 5 0 0 should be rounded up to the next $ 1 ,0 0 0 ). F o r example, a loan for $167,300 should be entered as 167 and one for $15,500 as 16. a. F o r home-purchase loans that you Appendix A Regulation C originate, enter the principal amount of the loan as the loan amount. F o r homepurchase loans that you purchase, enter the unpaid principal balance of the loan at the time of purchase as the loan amount. b. F o r home-improvement loans (both originations and purchases), you may in clude unpaid finance charges in the loan amount if that is how you reecord such loans on your books. c. F o r home-equity lines of credit (if you have chosen to report them ), enter as the loan amount only that portion of the line that the applicant or borrower has indi cated, at the time the application is made or when the account is opened, as being for home improvement. Report the loan amount for applications that did not re sult in originations in the same manner. Report only in the year the line is established. d. F o r refinancings that are to be report ed, indicate the total amount of the refi nancing, including the amount outstand ing on the original loan and the amount of new money (if any). e. F o r a loan application that was denied or withdrawn, enter the amount applied for. f. If you offered to lend less than the ap plicant applied for, enter the amount of the loan if the offer was accepted by the applicant. If the offer was not accepted, enter the amount that the applicant ap plied for. B. Action taken 1. Type o f action. Indicate the type of ac tion taken on the application or loan by us ing one of the following codes. Do not re port any loan application still pending at the end of the calendar year. You will re port that application on your register for the year in which final action is taken. 1— Loan originated 2— Application approved but not accepted 3— Application denied 4— Application withdrawn 5— File closed for incompleteness 6— Loan purchased by your institution 2. Explanation o f codes. a. Use code 2 when an application is ap proved but the applicant (o r a loan bro ker or correspondent) fails to respond to your notification of approval or your commitment letter within the specified time. b. Use code 4 only when an application is expressly withdrawn by the applicant before a credit decision was made. c. Use code 5 if you sent a written notice of incompleteness under section 2 0 2 .9 ( c ) ( 2 ) of Regulation B (Equal Credit Opportunity) and the applicant failed to respond to your request for ad ditional information within the period of time specified in your notice. 3. Date o f action. Enter the date by month, day, and year, using numerals in the form M M /D D /Y Y (for example, 0 2 /2 2 / 9 2 ) . a. F o r loans originated, enter the settle ment or closing date. F o r loans pur chased, enter the date of purchase by your institution. b. F o r applications denied, applications approved but not accepted by the appli cant, and files closed for incompleteness, enter the date that the action was taken by your institution or the date the notice was sent to the applicant. c. F o r applications withdrawn, enter the date you received the applicant’s express withdrawal; or you may enter the date shown on the notification from the appli cant, in the case of a written withdrawal. C. Property location. In these columns enter the applicable codes for the M SA, state, coun ty, and census tract for the property to which a loan relates. F o r home-purchase loans se cured by one dwelling, but made for the pur pose of purchasing another dwelling, report the property location for the property in which the security interest is to be taken. If the home-purchase loan is secured by more than one property, report the location data for the property being purchased. (See para graphs 5 and 6 below for treatm ent of loans on property outside the MSAs in which you have offices.) 1. MSA. F o r each loan or loan application, indicate the location of the property by the 9 Appendix A M SA number. Enter only the MSA num ber, not the MSA name. M SA boundaries are defined by the U.S. Office of Manage ment and Budget; use the boundaries that were in effect on January 1 of the calendar year for which you are reporting. A listing of MS As is available from your regional su pervisory agency or the F F IE C . (In these instructions, the term M SA refers to both metropolitan statistical area and primary metropolitan statistical area.) 2. State and county. You must use the Fed eral Information Processing Standard (F IP S ) two-digit numerical code for the state and the three-digit numerical code for the county. These codes are available from your regional supervisory agency or the F F IE C . Do not use the letter abbreviations used by the U.S. Postal Service. 3. Census tract. Indicate the census tract where the property is located. a. Enter the code “N A ” if the property is located in an area not divided into cen sus tracts on the U.S. Census Bureau’s census-tract outline maps (see paragraph 4 below). b. If the property is located in a county with a population of 30,000 or less in the 1990 census (as determined by the Cen sus Bureau’s 1990 C P H -2 population se ries), enter “N A ” (even if the population has increased above 30,000 since 1990), or you may enter the census tract number. 4. Census-tract number. F o r the censustract number, consult the U.S. Census Bu reau’s Census T ract/S treet Index for 1990, and for addresses not listed in the index, consult the Census Bureau’s census-tract outline maps. Y ou must use the maps from the Census Bureau’s 1990 CPH -3 series, or equivalent 1990 census data from the Cen sus Bureau (such as the Census T I G E R / Line File) or from a private publisher. 5. Outside MSA. F or loans on property lo cated outside the MSAs in which you have a home or branch office (o r outside any M S A ), you may enter the MSA, state, county, and census-tract numbers or you may enter the code “N A ” in each of these columns. 6. Nondepository lenders. If you are a for- 10 Regulation C profit mortgage lending institution (other than a bank, savings association, or credit union), and in the preceding calendar year you received applications for, or originated or purchased, loans for home purchase or home improvement adding up to a total of five or more for a given M SA, you are deemed to have a branch office in that M SA, whether or not you have a physical office there. As a result, you will have to enter the MSA, state, county, and censustract numbers for any transactions in that MSA. Because you must keep accurate rec ords about lending within MSAs in the cur rent calendar year in order to report data accurately the following year, to comply with this rule you may find it easier to enter the geographic information routinely for any property located within any MSA. D. Applicant information—race or national origin, sex, and income. Appendix B of Regu lation C contains instructions for the collec tion of data on race or national origin and sex, and also contains a sample form for data col lection. The form is substantially similar to the form prescribed by section 202.13 of Reg ulation B (Equal Credit Opportunity) and contained in appendix B to that regulation. You may use either form. 1. Applicability. You must report this appli cant information for loans that you origi nate as well as for applications that do not result in an origination. a. You need not collect or report this in formation for loans purchased. If you choose not to, enter the codes specified in paragraphs 3, 4, and 5 below for “not applicable.” b. If your institution is a bank, savings association, or credit union that had as sets of $30 million or less on the preced ing December 31, you may— but need not— collect and report these data. If you choose not to, enter the codes specified in paragraphs 3, 4, and 5 below for “not applicable.” c. If the borrower or applicant is not a natural person (a corporation or partner ship, for exam ple), use the codes speci fied in paragraphs 3, 4, and 5 below for “not applicable.” Regulation C Appendix A a. Round all dollar amounts to the near 2. Mail and telephone applications. Any est thousand (round $500 up to the next loan applications mailed to applicants must $ 1 ,0 0 0 ), and show in terms of thousands. contain a collection form similar to that F o r example, $35,500 should be reported shown in appendix B, and you must record as 36. on your register the data on race or national b. F o r loans on multifamily dwellings, origin and sex if the applicant provides it. If enter “N A .” the applicant chooses not to provide the c. If no income information is asked for data, enter the code for “information not or relied on in the credit decision (such provided by applicant in mail or telephone as in “no income verification” type application” specified in paragraphs 3 and 4 loans), enter “N A .” below. If an application is taken entirely by telephone, you need not request this infor E. Type o f purchaser mation. (See appendix B for complete in 1. Enter the applicable code to indicate formation on the collection of this data in whether a loan that your institution origi mail or telephone applications.) nated or purchased was then sold to a sec 3. Race or national origin o f borrower or ap ondary market entity within the same cal plicant. Use the following codes to indicate endar year: the race or national origin of the applicant 0— Loan was not originated or was not or borrower under column “A ” and of any sold in calendar year covered by co-applicant or co-borrower under column register “C A .” If there is more than one co-appli 1— F N M A (Federal National Mortgage cant, provide this information only for the Association) first co-applicant listed on the application 2— G N M A (Government National form. If there are no co-applicants or co Mortgage Association) borrowers, enter code 8 for “not applica 3— F H L M C (Federal Home Loan M ort ble” in the co-applicant column. gage Corporation) 1— American Indian or Alaskan Native 4— Fm H A (Farm ers Home 2— Asian or Pacific Islander Administration) 3— Black 5— Commercial bank A— Hispanic 6— S av in g s b an k o r sav in g s a s s o c ia tio n 5— White 7— Life insurance company 6— Other 8— Affiliate institution 7— Information not provided by appli 9— Other type of purchaser cant in mail or telephone application 2. Explanation o f codes 8— Not applicable a. Enter the code 0 for applications that 4. Sex o f borrower or applicant. Use the fol were denied, withdrawn, or approved but lowing codes to indicate the sex of the ap plicant or borrower under column “A ” and not accepted by the applicant; and for files closed for incompleteness. of any co-applicant or co-borrower under column “C A .” If there is more than one co b. If you originated or purchased a loan applicant, provide this information only for and did not sell it during that same calen dar year, enter the code 0. If you sell the the first co-applicant listed on the applica loan in a succeeding year, you need not tion form. If there are no co-applicants or co report the sale. borrowers, enter code 4 for “not applicable.” c. If you conditionally assign a loan to 1— Male G N M A in connection with a mortgage2— Female backed security transaction, use code 2. 3— Information not provided by appli d. Loans “swapped” for mortgagecant in mail or telephone application A— Not applicable backed securities are to be treated as 5. Income. Enter the gross annual income sales; enter the type of entity receiving that your institution relied upon in making the loans that are swapped as the purchaser. the credit decision. 11 Appendix A e. Use code 8 for loans sold to an institu tion affiliated with you, such as your sub sidiary or a subsidiary of your parent corporation. F . Reasons fo r denial 1. Y ou are not required to enter the rea sons for the denial of an application. But if you choose to do so, you may indicate up to three reasons by using the following codes: 1— Debt-to-income ratio 2— Employment history 3— Credit history 4— Collateral 5— Insufficient cash (downpayment, closing costs) 6— Unverifiable information 7— Credit application incomplete 8— Mortgage insurance denied 9— Other 2. Leave this column blank if the “action taken” on the application is not a denial. F o r example, do not complete this column if the application was withdrawn or the file was closed for incompleteness. 3. If your institution uses the model form for adverse action contained in the appen dix to Regulation B (F o rm C -l in appendix C, Sample Notification Form , which offers some 20 reasons for denial), the following list shows which codes to enter. a. Code 1 corresponds to: Income insuffi cient for amount of credit requested, and Excessive obligations in relation to income. b. Code 2 corresponds to: Temporary or irregular employment, and Length of employment. c. Code 3 corresponds to: Insufficient number of credit references provided; Unacceptable type of credit references provided; No credit file; Limited credit experience; Poor credit performance with us; Delinquent past or present credit obli gations with others; Garnishment, at tachment, foreclosure, repossession, col lection action, or judgment; and Bankruptcy. d. Code 4 corresponds to: Value or type of collateral not sufficient. e. Code 6 corresponds to: Unable to veri fy credit references, Unable to verify em 12 Regulation C ployment, Unable to verify income, and Unable to verify residence. f. Code 7 corresponds to: Credit applica tion incomplete. g. Code 9 corresponds to: Length of resi dence, Temporary residence, and Other reasons specified on notice. VI. Federal Supervisory Agencies Send your loan/application register and direct any questions to the office of your federal su pervisory agency as specified below. If you are the nondepository subsidiary of a bank, sav ings association, or credit union, send the reg ister to the supervisory agency for your parent institution. Term s that are not defined in the Federal Deposit Insurance A ct (1 2 U SC 1813 ( s ) ) shall have the meaning given to them in the International Banking A ct of 1978 (1 2 USC 3 1 0 1 ). A. National banks and their subsidiaries and federal branches and federal agencies o f for eign banks. District office of the Office of the Comptroller of the Currency for the district in which the institution is located. B. State member banks o f the Federal Reserve System, their subsidiaries, subsidiaries o f bank holding companies, branches and agencies o f foreign banks (other than federal branches, federal agencies, and insured state branches o f foreign banks), commercial lending companies owned or controlled by foreign banks, and or ganizations operating under section 25 or 25A o f the Federal Reserve Act. Federal Reserve Bank serving the District in which the state member bank is located; for institutions other than state member banks, the Federal Reserve Bank specified by the Board of Governors. C. Nonmember insured banks (except for fed eral savings banks) and their subsidiaries and insured state branches o f foreign banks. R e gional director of the Federal Deposit Insur ance Corporation for the region in which the institution is located. D. Savings institutions insured under the Sav ings Association Insurance Fund o f the FDIC, federally chartered savings banks insured un der the Bank Insurance Fund o f the FDIC (but not including state-chartered savings Regulation C banks insured under the Bank Insurance Fund), their subsidiaries, and subsidiaries o f savings institution holding companies. Region al or other office specified by the Office of Thrift Supervision. E. Credit unions. National Credit Union A d ministration, Office of Examination and In surance, 1776 G Street, N .W ., Washington, D .C. 20456. Appendix A F . Other depository institutions. Regional di rector of the Federal Deposit Insurance C or poration for the region in which the institu tion is located. G. Other mortgage-lending institutions. A s sistant Secretary for Housing, H M D A R e porting— Room 9233, U.S. Department of Housing and Urban Development, 451 7th Street, S.W ., Washington, D .C. 20410. 13 Regulation C Appendix A Form FR HMDA-LAR OMB No. 7100-0247. Approval expires December 31. 1992 Hours per response: 10 to 10.000 (200 average) This report is required by law (12 USC 2801-2810 and 12 CFR 203) LOAN/APPLICATION REGISTER TRANSMITTAL SHEET You must complete this transmittal sheet (please type or print) and attach it to the Loan/Application Register, required by the Home Mortgage Disclosure Act, that you submit to your supervisory agency. Agency Code Reporter's Identification Number I I I I I I I I I I l-i Reporter’s Tax Id en tificatio n Number I I I I~ l l I .I I L . L. I The Loan/Application Register that is attached covers activity during 19_____ and contains a total o f ______ pages. Enter the name and address of your institution. The disclosure statement that is produced by the Federal Financial Institutions Examination Council will be mailed to the address you supply below: Name of Institution Address City. State. ZIP Enter the name and telephone number of a person who may be contacted about questions regarding your register: _________________________ !____l_____________________ Name Telephone Number If your institution is a subsidiary of another institution or corporation, enter the name of your parent: Name Address City. State, ZIP Enter the name and address of your supervisory agency (or your parent's supervisory agency): Name Address City. State, ZIP An officer of your institution must complete the following section. I certify to the accuracy of the data contained in this register. Name of officer 14 Signature Date Form FR H M D A -L A R P a g e ____ o f _____ Agency Reporter's Identification Number Name of Reporting Institution Code City, State, ZIP All columns (except R easons for Denial) must be completed for each entry. See the instructions for details. Application or Loan Information Action Taken Date Application Received (mm/dd/yy) Application or Loan Number Race or National Origin Loan amount Owner Pur Occu Type pose pancy Applicant Information A = Applicant CA = Co-Applicant Property Location in thou sands Type Date (mm/dd/yy) Regulation C LOAN/APPLICATION REGISTER Sex Digit MSA Number Digit State Code ThreeDigit County Code Six-Digit Census Tract A CA A CA Income Type of Pur- thou- Reasons for Denial (Optional) E x a m p le o f L o a n O r i g i n a t e d | L | B | -| 6 | 8 | 7 | 4 | 3 | 9 | | | | | | | | | | | | , p , 0 1 /1 5 /9 2 2 1 1 65 1 0 2 /2 2 /9 2 8840 51 059 4 | 2 |1 | 9 | . | 8 | 5 3 8 1 4 24 7 \ 0 3 /2 0 /9 2 1 1 1 125 3 0 4 /3 0 /9 2 0450 01 015 0 |0 |2 |1 | . |0 |0 5 4 2 1 55 0 E x a m p le o f A p p l i c a t i o n D e n ie d | \ 1 1 1 1 1 1 1 1 1 1 1 .1 1 1 1 1 1 1 1 1 1 1 l 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0|1|2|3|4 | 5 | 6 | 7 | 8 | 9 | *| 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 | 0 | 1 1 1 1 1 1 1 1 1 1 1 1 1 1 .1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1- 1 —1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1• 1 1 1 1 1 1• 1 1 4 1 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 J. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l 1 1 1 l 1 1 l l l 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 —1__1 1 1 1 1 1__1 1 1__1 1 1 1 1 L 1 1 1 1 1 1 1 1 i i i i i i i i i i i i i i i 1 1 1 1• 1 1 Appendix A 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ........................................................... Regulation C Appendix A Loan/Application Register Code Sheet Use the following codes to complete the loan / application register. The instructions to the H M D A -L A R explain the proper use of each code. Application or Loan Information Black Hispanic White Other Information not provided by applicant in mail or telephone application 8— Not applicable Sex: 1— other than 2— 3— Housing Type: 1— Conventional (any loan F H A , VA or Fm H A loans) 2— FHA-insured (Federal Administration) 3— VA-guaranteed (Veterans istration) 4 — FmHA-insured (Farm ers Administration) Admin Home Purpose: 1— Home purchase (one- to four-family) 2— Home improvement (one- to fourfamily) 3— Refinancing (home purchase or home improvement, one- to four-family) 4 — Multifamily dwelling (home purchase, home improvement, and refinancings) Owner 1— 2— 3— 3— 4— 5— 6— 7— Occupancy: Owner-occupied as a principal dwelling Not owner-occupied Not applicable Action Taken: 1— Loan originated 2— Application approved but not accepted 3— Application denied by financial institution 4 — Application withdrawn by applicant 5— File closed for incompleteness 6— Loan purchased by your institution Applicant Information Race or National Origin: 1— American Indian or Alaskan Native 2— Asian or Pacific Islander 16 Male Female Information not provided by applicant in mail or telephone application 4— Not applicable Type o f Purchaser 0— Loan was not sold in calendar year cov ered by register 1— F N M A (Federal National M ortgage Association) 2— G N M A (Government National M ort gage Association) 3— F H L M C (Federal Home Loan M ort gage Corporation) 4— Fm H A (Farm ers Home Admini stration) 5— Commercial bank 6— Savings bank or savings association 7— Life insurance company 8— Affiliate institution 9— Other type of purchaser Reasons for Denial (optional) 1— 2— 3— 4— 5— 6— 7— 8— 9— Debt-to-income ratio Employment history Credit history Collateral Insufficient cash (downpayment, clos ing costs) Unverifiable information Credit application incomplete Mortgage insurance denied Other Regulation C A P P E N D I X B — F o r m an d In stru ctio n s fo r D a ta C o llectio n on R a c e o r N atio n al O rigin and Sex I. Instructions on Collection o f Data on Race or National Origin and Sex A. Format. You may list questions regarding the race or national origin and sex of the ap plicant on your loan application form, or on a separate form that refers to the application. (See the sample form below for recommended language.) B. Procedures. 1. You must ask for this information, but cannot require the applicant to provide it. 2. If the applicant chooses not to provide the information for an application taken in person, note this fact on the form and note the data, to the extent possible, on the basis of visual observation or surname. 3. Inform the applicant that the federal government is requesting this information in order to monitor compliance with federal statutes that prohibit lenders from discrimi nating against applicants on these bases. In form the applicant that if the information is not provided where the application is taken in person, you are required to note the data on the basis of visual observation or surname. 4. If an application is made entirely by tele phone, you need not request this informa tion. And you need not provide the data when you take an application by mail, if the applicant fails to answer these questions on the application form. You should indicate whether an application was received by mail or telephone, if it is not otherwise evi dent on the face of the application. 5. The “other” block is available only to the applicant who chooses to indicate some other appropriate category for race or na tional origin. If completing the form based on visual observation, do not use this cate gory; use one of the other five categories. Appendix B S am p le D a ta -C o lle c tio n F o r m IN FO R M A T IO N F O R G O V E R N M E N T M O N ITO R IN G PU R PO SES The following information is requested by the federal government for certain types of loans related to a dwelling in order to monitor the lender’s compliance with equal credit oppor tunity, fair housing, and home mortgage dis closure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not dis criminate on the basis of this information, or on whether you choose to furnish it. However, if you choose not to furnish the information and you have made this application in person, under federal regulations the lender is re quired to note race or national origin and sex on the basis of visual observation or surname. If you do not wish to furnish the information, please check below. A P P L IC A N T : | I do not wish to furnish this information. Race or National Origin: ] American Indian, Alaskan Native | | Asian, Pacific Islander □ Black | Hispanic | | White ] Other (specify) ________________________ Sex: | | Female | | Male C O -A P P L IC A N T : | I do not wish to furnish this information. Race or National Origin: ] American Indian, Alaskan Native ] Asian, Pacific Islander Q Black ] Hispanic Q White | | Other (specify) ________________________ Sex: | | Female | | Male 17 H om e M ortgage D isclosure A ct 12 U SC 2801 et seq.; 89 Stat. 1125; Pub. L . 9 4 -2 0 0 , Title III (D ecem ber 31, 1975) T IT L E III— H O M E M O RTG A G E D ISC LO SU RE Section 301 Short title 302 Findings and purposes 303 Definitions 304 Maintenance of records and public disclosure 305 Enforcement 306 Relation to state laws 307 Research and improved methods 308 Study 309 Effective date 310 Compilation of aggregate data 311 Disclosure by the secretary SECTION 301— Short Title This title may be cited as the “Home M ort gage Disclosure A ct of 1975.” [12 USC 2801 note.] SECTIO N 302— Findings and Purposes (a ) The Congress finds that some depository institutions have sometimes contributed to the decline of certain geographic areas by their failure pursuant to their chartering responsi bilities to provide adequate home financing to qualified applicants on reasonable terms and conditions. (b ) The purpose of this title is to provide the citizens and public officials of the United States with sufficient information to enable them to determine whether depository institu tions are filling their obligations to serve the housing needs of the communities and neigh borhoods in which they are located and to as sist public officials in their determination of the distribution of public sector investments in a manner designed to improve the private in vestment environment. (c ) Nothing in this title is intended to, nor shall it be construed to, encourage unsound lending practices or the allocation of credit. [12 USC 2801.] SECTIO N 303— Definitions F o r purposes of this title— ( 1 ) the term “mortgage loan” means a loan which is secured by residential real property or a home improvement loan; (2 ) the term “depository institution”— (A ) means— (i) any bank (as defined in section 3 ( a ) ( 1 ) of the Federal Deposit Insur ance A c t); (ii) any savings association (as de fined in section 3 ( b ) ( 1 ) of the Federal Deposit Insurance A c t); and (iii) any credit union, which makes federally related mortgage loans as determined by the Board; and ( B ) includes any other lending institu tion (as defined in paragraph ( 4 ) ) other than any institution described in subpara graph ( A ) ; ( 3 ) the term “completed application” means an application in which the creditor has received the information that is regular ly obtained in evaluating applications for the amount and type of credit requested; ( 4 ) the term “other lending institutions” means any person engaged for profit in the business of mortgage lending; (5 ) the term “ Board” means the Board of Governors of the Federal Reserve System; and (6 ) the term “Secretary” means the Secre tary of Housing and Urban Development. [12 USC 2802. As amended by acts of Feb. 5, 1988 (101 Stat. 1945) and Aug. 9, 1989 (103 Stat. 525).] SECTIO N 304— Maintenance of Records and Public Disclosure ( a ) ( 1 ) E ach depository institution which has a home office or branch office located with in a primary metropolitan statistical area, metropolitan statistical area, or consolidat ed metropolitan statistical area that is not comprised of designated primary metropoli tan statistical areas, as defined by the De partment of Commerce shall compile and make available, in accordance with regula19 Statutory Provisions tions of the Board, to the public for inspec tion and copying at the home office, and at least one branch office within each primary metropolitan statistical area, metropolitan statistical area, or consolidated metropoli tan statistical area that is not comprised of designated primary metropolitan statistical areas in which the depository institution has an office the number and total dollar amount of mortgage loans which were (A ) originated (o r for which the institution re ceived completed applications), or (B ) pur chased by that institution during each fiscal year (beginning with the last full fiscal year of that institution which immediately pre ceded the effective date of this title.) (2 ) The information required to be main tained and made available under paragraph (1 ) shall also be itemized in order to clearly and conspicuously disclose the following: (A ) The number and dollar amount for each item referred to in paragraph ( 1 ) , by census tracts for mortgage loans se cured by property located within any county with a population of more than 30,000, within that primary metropolitan statistical area, metropolitan statistical area, or consolidated metropolitan statis tical area that is not comprised of desig nated primary metropolitan statistical ar eas, otherwise, by county, for mortgage loans secured by property located within any other county within that primary met ropolitan statistical area, metropolitan statistical area, or consolidated metropol itan statistical area that is not comprised of designated primary metropolitan sta tistical areas. ( B ) The number and dollar amount for each item referred to in paragraph (1 ) for all such mortgage loans which are se cured by property located outside that primary metropolitan statistical area, metropolitan statistical area, or consoli dated metropolitan statistical area that is not comprised of designated primary metropolitan statistical areas. F o r the purpose of this paragraph, a deposi tory institution which maintains offices in more than one primary metropolitan statis tical area, metropolitan statistical area, or consolidated metropolitan statistical area 20 Regulation C that is not comprised of designated primary metropolitan statistical areas shall be re quired to make the information required by this paragraph available at any such office only to the extent that such information relates to mortgage loans which were originated or purchased (o r for which com pleted applications were received) by an of fice of that depository institution located in the primary metropolitan statistical area, metropolitan statistical area, or consolidat ed metropolitan statistical area that is not comprised of designated primary metropoli tan statistical areas in which the office mak ing such information available is located. F o r purposes of this paragraph, other lend ing institutions shall be deemed to have a home office or branch office within a pri mary metropolitan statistical area, m etro politan statistical area, or consolidated met ropolitan statistical area that is not com prised of designated primary metropolitan statistical areas if such institutions have originated or purchased or received com pleted applications for at least 5 mortgage loans in such area in the preceding calendar year. (b ) Any item of information relating to mortgage loans required to be maintained un der subsection (a ) shall be further itemized in order to disclose for each such item— (1 ) the number and dollar amount of mortgage loans which are insured under ti tle II of the National Housing A ct or under title V of the Housing A ct of 1949 or which are guaranteed under chapter 37 of title 38, United States Code; (2 ) the number and dollar amount of mortgage loans made to mortgagors who did not, at the time of execution of the mortgage, intend to reside in the property securing the mortgage loan; (3 ) the number and dollar amount of home improvement loans; and (4 ) the number and dollar amount of m ort gage loans and completed applications in volving mortgagors or mortgage applicants grouped according to census tract, income level, racial characteristics, and gender. ( c ) Any information required to be compiled and made available under this section, other Regulation C than loan application register information un der subsection (j), shall be maintained and made available for a period of five years after the close of the first year during which such information is required to be maintained and made available. (d ) Notwithstanding the provisions of sub section ( a ) ( 1 ) , data required to be disclosed under this section for 1980 and thereafter shall be disclosed for each calendar year. Any depository institution which is required to make disclosures under this section but which has been making disclosures on some basis other than a calendar year basis shall make available a separate disclosure statement con taining data for any period prior to calendar year 1980 which is not covered by the last full year report prior to the 1980 calendar year report. (e ) Subject to subsection (h ), the Board shall prescribe a standard format for the disclosures required under this section. (f) The Federal Financial Institutions E xam ination Council in consultation with the Sec retary, shall implement a system to facilitate access to data required to be disclosed under this section. Such system shall include ar rangements for a central depository of data in each primary metropolitan statistical area, metropolitan statistical area, or consolidated metropolitan statistical area that is not com prised of designated primary metropolitan sta tistical areas. Disclosure statements shall be made available to the public for inspection and copying at such central depository of data for all depository institutions which are re quired to disclose information under this sec tion (o r which are exempted pursuant to sec tion 3 0 6 (b )) and which have a home office or branch office within such primary metropoli tan statistical area, metropolitan statistical area, or consolidated metropolitan statistical area that is not comprised of designated pri mary metropolitan statistical areas. (g ) The requirements of subsections (a ) and (b ) shall not apply with respect to mortgage loans that are— ( 1 ) made (o r for which completed applica tions are received) by any mortgage bank ing subsidiary of a bank holding company Statutory Provisions or savings and loan holding company or by any savings and loan service corporation that originates or purchases mortgage loans; and (2 ) approved (o r for which completed ap plications are received) by the secretary for insurance under title I or II of the National Housing A ct. (h ) The data required to be disclosed under subsection ( b ) ( 4 ) shall be submitted to the appropriate agency for each institution report ing under this title. Notwithstanding the re quirement of section 3 0 4 (a ) ( 2 ) ( A ) for disclo sure by census tract, the Board, in cooperation with other appropriate regulators, including— ( 1 ) the Office of the Comptroller of the Currency for national banks and Federal branches and Federal agencies of foreign banks; ( 2 ) the D irector of the Office of Thrift Su pervision for savings associations; (3 ) the Federal Deposit Insurance Corpo ration for banks insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), mutual savings banks, insured State branches of foreign banks, and any other depository institution described in section 3 0 3 ( 2 ) (A ) which is not otherwise referred to in this paragraph; ( 4 ) the National Credit Union Adminis tration Board for credit unions; and (5 ) the Secretary of Housing and Urban Development for other lending institutions not regulated by the agencies referred to in paragraphs (1 ) through ( 4 ) , shall develop regulations prescribing the for mat for such disclosures, the method for sub mission of the data to the appropriate regula tory agency, and the procedures for disclosing the information to the public. These regula tions shall also require the collection of data required to be disclosed under subsection (b ) (4 ) with respect to loans sold by each in stitution reporting under this title, and, in ad dition, shall require disclosure of the class of the purchaser of such loans. Any reporting in stitution may submit in writing to the appro priate agency such additional data or explana tions as it deems relevant to the decision to originate or purchase mortgage loans. 21 Statutory Provisions (i) The requirements of subsection ( b ) ( 4 ) shall not apply with respect to any depository institution described in section 3 0 3 (2 ) ( A ) which has total assets, as of the most recent full fiscal year of such institution, of $30,000,000 or less. (j) Loan application register information. ( 1 ) In addition to the information required to be disclosed under subsections (a ) and (b ), any depository institution which is re quired to make disclosures under this sec tion shall make available to the public, upon request, loan application register in formation (as defined by the Board by regu lation) in the form required under regula tions prescribed by the Board. ( 2 ) (A ) Subject to subparagraph ( B ) , the loan application register information de scribed in paragraph ( 1 ) may be dis closed by a depository institution without editing or compilation and in the format in which such information is maintained by the institution. ( B ) The Board shall require, by regula tion, such deletions as the Board may de termine to be appropriate to protect— (i) any privacy interest of any appli cant, including the deletion of the ap plicant’s name and identification num ber, the date of the application, and the date of any determination by the insti tution with respect to such application; and (ii) a depository institution from lia bility under any Federal or State priva cy law. (C ) It is the sense of the Congress that a depository institution should provide loan register information under this sec tion in a format based on the census tract in which the property is located. ( 3 ) A depository institution meets the dis closure requirement of paragraph (1 ) if the institution provides the information re quired under such paragraph in the form in which the institution maintains such information. ( 4 ) Any depository institution which pro vides information under this subsection may impose a reasonable fee for any cost incurred in reproducing such information. 22 Regulation C ( 5 ) The disclosure of the loan application register information described in paragraph (1 ) for any year pursuant to a request un der paragraph (1 ) shall be made— (A ) in the case of a request made on or before M arch 1 of the succeeding year, before April 1 of the succeeding year; and (B ) in the case of a request made after M arch 1 of the succeeding year, before the end of the 30-day period beginning on the date the request is made. (6 ) Notwithstanding subsection ( c ) , the loan application register information de scribed in paragraph (1 ) for any year shall be maintained and made available, upon re quest, for 3 years after the close of the 1st year during which such information is re quired to be maintained and made available. (7 ) In prescribing regulations under this subsection, the Board shall make every ef fort to minimize the costs incurred by a de pository institution in complying with this subsection and such regulations. (k ) Disclosure o f statements by depository institutions. (1 ) In accordance with procedures estab lished by the Board pursuant to this sec tion, any depository institution required to make disclosures under this section— (A ) shall make a disclosure statement available, upon request, to the public no later than 3 business days after the insti tution receives the statement from the Federal Financial Institutions Exam ina tion Council; and (B ) may make such statement available on a floppy disc which may be used with a personal computer or in any other me dia which is not prohibited under regula tions prescribed by the Board. ( 2 ) Any disclosure statement provided pursuant to paragraph (1 ) shall be accom panied by a clear and conspicuous notice that the statement is subject to final review and revision, if necessary. (3 ) Any depository institution which pro vides a disclosure statement pursuant to paragraph ( 1 ) may impose a reasonable fee for any cost incurred in providing or repro ducing such statement. Regulation C ( /) Prompt disclosures. ( 1 ) Any disclosure of information pursu ant to this section or section 310 shall be made as promptly as possible. (2 ) (A ) Except as provided in subsections ( j ) ( 5 ) and (k ) (1 ) and regulations pre scribed by the Board and subject to subparagraph ( B ) , any information required to be disclosed for any year beginning af ter December 31, 1992, under— (i) this section shall be made available to the public before September 1 of the succeeding year; and (ii) section 310 shall be made avail able to the public before December 1 of the succeeding year. (B ) With respect to disclosures of infor mation under this section or section 310 for any year beginning after December 31, 1993, every effort shall be made— (i) to make information disclosed un der this section or section 310 available to the public before July 1 of the suc ceeding year; and (ii) to make information required to be disclosed under section 310 avail able to the public before September 1 of the succeeding year. (3 ) The Federal Financial Institutions E x amination Council shall make such changes in the system established pursuant to sub section (f) as may be necessary to carry out the requirements of this subsection. [12 USC 2803. As amended by acts of Oct. 8, 1980 (94 Stat. 1657); Nov. 30, 1983 (97 Stat. 1266); Feb. 5, 1988 (101 Stat. 1945, 1950); Aug. 9, 1989 (103 Stat. 524, 525, 526); Dec. 19, 1991 (105 Stat. 2299); and Oct. 28, 1992 (106 Stat. 3889, 3891).] SECTIO N 305— Enforcement (a ) The Board shall prescribe such regula tions as may be necessary to carry out the purposes of this title. These regulations may contain such classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for any class of transactions, as in the judgment of the Board are necessary and proper to effectuate the pur poses of this title, and prevent circumvention or evasion thereof, or to facilitate compliance therewith. Statutory Provisions (b ) Compliance with the requirements im posed under this title shall be enforced un der— ( 1 ) section 8 of the Federal Deposit Insur ance A ct, in the case of— (A ) national banks and Federal branch es and Federal agencies of foreign banks, by the Office of Comptroller of the Currency; (B ) member banks of the Federal Re serve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations oper ating under section 25 or 25A of the Fed eral Reserve A ct, by the Board; and (C ) banks insured by the Federal Depo sit Insurance Corporation (other than members of the Federal Reserve Sys tem ), mutual savings banks as defined in section 3 (f ) of the Federal Deposit In surance A ct (1 2 U.S.C. 1 8 1 3 (f )), in sured State branches of foreign banks, and any other depository institution not referred to in this paragraph or para graph (2 ) or (3 ) of this subsection, by the Board of Directors of the Federal De posit Insurance Corporation; ( 2 ) section 8 of the Federal Deposit Insur ance A ct, by the D irector of the Office of Thrift Supervision, in the case of a savings association the deposits of which are in sured by the Federal Deposit Insurance Corporation; (3 ) the Federal Credit Union A ct, by the Adm inistrator of the National Credit U n ion Administration with respect to any credit union; and (4 ) other lending institutions, by the Sec retary of Housing and Urban Development. The terms used in paragraph (1 ) that are not defined in this title or otherwise defined in sec tion 3 (s ) of the Federal Deposit Insurance A ct (1 2 U.S.C. 1813 ( s ) ) shall have the mean ing given to them in section 1 (b ) of the Inter national Banking A ct of 1978 (1 2 U.S.C. 3 1 0 1 ). ( c ) F o r the purpose of the exercise by any 23 Statutory Provisions agency referred to in subsection (b ) of its powers under any A ct referred to in that sub section, a violation of any requirement im posed under this title shall be deemed to be a violation of a requirement imposed under that A ct. In addition to its powers under any pro vision of law specifically referred to in subsec tion (b ), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title, any other authority conferred on it by law. [12 USC 2804. As amended by acts of Aug. 9, 1989 (103 Stat. 440, 526) and Dec. 19, 1991 (105 Stat. 2299).] SECTIO N 306— Relation to State Laws (a ) This title does not annul, alter, or affect, or exempt any State-chartered depository in stitution subject to the provisions of this title from complying with the laws of any state or subdivision thereof with respect to public dis closure and recordkeeping by depository insti tutions, except to the extent that those laws are inconsistent with any provision of this ti tle, and then only to the extent of the incon sistency. The Board is authorized to deter mine whether such inconsistencies exist. The Board may not determine that any such law is inconsistent with any provision of this title if the Board determines that such law requires the maintenance of records with greater geo graphic or other detail than is required under this title, or that such law otherwise provides greater disclosure than is required under this title. (b ) The Board may by regulation exempt from the requirements of this title any statechartered depository institution within any state or subdivision thereof if it determines that, under the law of such state or subdivi sion, that institution is subject to requirements substantially similar to those imposed under this title, and that such law contains adequate provisions for enforcement. Notwithstanding any other provision of this subsection, compli ance with the requirements imposed under this subsection shall be enforced under— (1 ) section 8 of the Federal Deposit Insur ance A ct in the case of national banks, by the Comptroller of the Currency; and 24 Regulation C (2 ) section 8 of the Federal Deposit Insur ance A ct, by the D irector of the Office of Thrift Supervision in the case of a savings association the deposits of which are in sured by the Federal Deposit Insurance Corporation. [12 USC 2805. As amended by act of Aug. 9, 1989 (103 Stat. 440).] SECTIO N 307— Research and Improved Methods ( a ) ( 1 ) The D irector of the Office of Thrift Supervision, with the assistance of the Sec retary, the D irector of the Bureau of the Census, the Comptroller of the Currency, the Board of Governors of the Federal R e serve System, the Federal Deposit Insur ance Corporation, and such other persons as the D irector of the Office of Thrift Su pervision deems appropriate, shall develop, or assist in the improvement of, methods of matching addresses and census tracts to fa cilitate compliance by depository institu tions in as economical a manner as possible with the requirements of this title. (2 ) There is authorized to be appropriated such sums as may be necessary to carry out this subsection. ( 3 ) The D irector of the Office of Thrift Su pervision is authorized to utilize, contract with, act through, or compensate any per son or agency in order to carry out this subsection. (b ) The Director of the Office of Thrift Super vision shall recommend to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate such additional legislation as the Direc tor of the Office of Thrift Supervision deems appropriate to carry out the purpose of this title. [12 USC 2806. As amended by H. Res. 5 of Jan. 4, 1977 and acts of Nov. 7, 1988 (102 Stat. 3280) and Aug. 9, 1989 (103 Stat. 440).] SECTION 308— Study The Board, in consultation with the Secre tary of Housing and Urban Development, shall report annually to the Congress on Regulation C the utility of the requirements of section 3 0 4 ( b ) (4 ) . [12 USC 2807. As amended by acts of Nov. 30, 1983 (97 Stat. 1266) and Aug. 9, 1989 (103 Stat. 526).] SECTION 309— Effective Date This title shall take effect on the one hundred and eightieth day beginning after the date of its enactment. Any institution specified in sec tion 3 0 3 (2 ) ( A ) which has total assets as of its last full fiscal year of $10,000,000 or less is exempt from the provisions of this title. The Board, in consultation with the Secretary, may exempt institutions described in section 3 0 3 (2 ) (B ) that are comparable within their respective industries to institutions that are exempt under the preceding sentence. [12 USC 2808. As amended by act of Dec. 19, 1991 (105 Stat. 2307).] SECTIO N 310— Compilation of Aggregate Data (a ) Beginning with data for calendar year 1980, the Federal Financial Institutions E x amination Council shall compile each year, for each primary metropolitan statistical area, metropolitan statistical area, or consolidated metropolitan statistical area that is not com prised of designated primary metropolitan sta tistical areas, aggregate data by census tract for all depository institutions which are re quired to disclose data under section 304 or which are exempt pursuant to section 3 0 6 (b ). The Council shall also produce tables indicat ing, for each primary metropolitan statistical area, metropolitan statistical area, or consoli dated metropolitan statistical area that is not comprised of designated primary metropoli tan statistical areas, aggregate lending pat terns for various categories of census tracts grouped according to location, age of housing stock, income level, and racial characteristics. (b ) The Board shall provide staff and data processing resources to the Council to enable it to carry out the provisions of subsection (a ). ( c ) The data and tables required pursuant to Statutory Provisions subsection (a ) shall be made available to the public by no later than December 31 of the year following the calendar year on which the data is based. [12 USC 2809. As added by act of Oct. 8, 1980 (94 Stat. 1658) and amended by act of Nov. 30, 1983 (97 Stat. 1266).] SECTIO N 311— Disclosure by the Secretary Beginning with data for calendar year 1980, the Secretary shall make publicly available data in the Secretary’s possession for each mortgagee which is not otherwise subject to the requirements of this title and which is not exempt pursuant to section 3 0 6 (b ) (and for each mortgagee making mortgage loans ex empted under section 3 0 4 ( g ) ) , with respect to mortgage loans approved (o r for which com pleted applications are received) by the Secre tary for insurance under title I or II of the National Housing A ct. Such data to be dis closed shall consist of data comparable to the data which would be disclosed if such mortga gee were subject to the requirements of section 304. Disclosure statements containing data for each such mortgage for a primary metropoli tan statistical area, metropolitan statistical area, or consolidated metropolitan statistical area that is not comprised of designated pri mary metropolitan statistical areas shall, at a minimum, be publicly available at the central depository of data established pursuant to sec tion 3 0 4 (f) for such primary metropolitan statistical area, metropolitan statistical area, or consolidated metropolitan statistical area that is not comprised of designated primary metropolitan statistical areas. The Secretary shall also compile and make publicly available aggregate data for such mortgagees by census tract, and tables indicating aggregate lending patterns, in a manner comparable to the infor mation required to be made publicly available in accordance with section 310. [12 USC 2810. As added by act of Oct. 8, 1980 (94 Stat. 1658) and amended by acts of Nov. 30, 1983 (97 Stat. 1266); Feb. 5, 1988 (101 Stat. 1945); and Aug. 9, 1989 (103 Stat. 525).] 25 Regulation C Statutory Provisions P U B L IC LA W 96-399, T IT L E III SECTIO N 340 (d ) The Federal Financial Institutions E x amination Council, in consultation with the Adm inistrator of the Small Business Adminis tration, shall conduct a study to assess the fea sibility and usefulness of requiring depository institutions which make small business loans to compile and publicly disclose information regarding such loans. The Council shall sub mit a report on the results of such study, to gether with recommendations, to the Commit tee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives not later than M arch 1, 1981. (e ) To promote efficiency and avoid duplica tion to the maximum extent feasible, the Fed eral Financial Institutions Examination Coun cil shall transmit a report to the Congress not later than September 30, 1982, on the feasibili ty and desirability of establishing a unified system for enforcing fair lending laws and reg ulations, implementing the Community Rein vestment A ct of 1977, and satisfying the pub lic disclosure purposes of the Home M ortgage Disclosure A ct of 1975. Such report shall evaluate the status and effectiveness of data collection and analysis systems of such agen cies involving fair lending and community re investment, and shall outline possible specific timetables for implementing such a unified system. [12 USC 3305 note.] [12 use 3305 note.] 26
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