Full text of Home Mortgage Disclosure Act

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

89 STAT. 1124

PUBLIC LAW 94-200—DEC. 31, 1975

Public Law 94-200
94th Congress
An Act
Dec. 61, 1975
[S. 1281]

Depository
institutions,
interest rates;
National
Commission on
Electronic Fund
Transfers,
extension; home
mortgage
disclosure.
12 u s e 461 note.
12 u s e 461 note.

rp^^ extend the authority for the flexible regulation of interest rates on deposits
and share accounts in depository institutions, to extend the National Commission on Electronic Fund Transfers, and to provide for home mortgage
disclosure.

Be it enacted hy the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I—REGULATIOX OF I N T E R E S T RATES
SEC. 101. Section 7 of the Act of September 21, 1966 (Public Law
89-597), is amended by striking out "December 31,1975-' and inserting
in lieu thereof "March 1,1977*'.
SEC. 102. (a) An interest rate differential for any category of
deposits or accounts which is in effect on December 10, 1975, between
(1) any bank (other than a savings bank) the deposits of which are
insured by the Federal Deposit Insurance Corporation and (2) any
savings and loan, building and loan, or homestead association (including cooperative banks) the deposits or accounts of which are insured
by the Federal Savings and Loan Insurance Corporation or any mutual
savings bank as defined in section 3(f) of the Federal Deposit Insurance Act (12 U.S.C. 1813(j)) may not be eliminated or reduced
unless—•
(A) written notification is given by the Board of Governors of
the Federal Reserve System to the Congress; and
(B) the House of Representatives and the Senate approve, by
concurrent resolution, the proposed elimination or reduction of
the interest rate differential.
(b) In the case of the elimination or reduction of any interest rate
differential under subsection (a) with respect to any category of
deposits or accounts between (1) any bank (other than a savings
bank) the deposits of which are insured by the Federal Deposit Insurance Corporation and (2) any savings and loan, building and loan, or
homestead association (including cooperative banks) the deposits or
accounts of which are insured by the Federal Savings and Loan Insurance Corporation or any mutual savings bank as defined in section
3(f) of the Federal Deposit Insurance Act (12 U.S.C. 1813(f)),
the maximum rate of interest which shall be established for such category of deposits for banks (other than savings banks) the deposits of
which are insured by the Federal Deposit Insurance Corporation shall
be equal to the highest rate of interest which savings and loan associations the deposits or accounts of which are insured by the Federal
Savings and Loan Insurance Corporation were permitted to charge
for such category of deposits immediately prior to the elimination or
reduction of such interest rate differential.

TITLE II—ELECTRONIC FUND TRANSFERS
12 u s e 2403.

SEC. 201. Section 203(b) of title I I of the Act of October 28, 1974
(Public Law 93^95), is amended by—
(1) striking out "within one year of its findings and recommendations" and inserting in lieu thereof "within one year of the date

PUBLIC LAW 94-200—DEC. 31, 1975

89 STAT. 1125

of the confirmation by the Senate of the Chairperson or the
appointment by the President of an acting Chairperson"; and
(2) striking out "not later than two years after the date of
enactment of this Act" and inserting in lieu thereof "not later
than two years after the date of the confirmation by the Senate
of the Chairperson or the appointment by the President of an
acting Chairperson".
TITLE III—HOME MORTGAGE DISCLOSURE
SHORT TITLE

Home Mortgage
Disclosure Act of
1975.

SEC. 301. This title may be cited as the "Home Mortgage Disclosure 12 USC 2801
Act of 1975".
noteFINDINGS AND PURPOSES

SEC. 302. (a) The Congress finds that some depository institutions 12 USC 2801.
have sometimes contributed to the decline of certain geographic areas
by their failure pursuant to their chartering responsibilities 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 institutions are filling their obligations to serve the housing needs of the communities and neighborhoods
in which they are located and to assist public officials in their determination of the distribution of public sector investments in a manner
designed to improve the private investment environment.
(c) N^othing ill this title is intended to, nor shall it be construed to,
encourage unsound lending practices or the allocation of credit.
DEFINITIONS

SEC. 303. For purposes of this title—
12 USC 2802.
(1) the term "mortgage loan" means a l6an which is secured
by residential real property or a home improvement loan;
(2) the term "depository institution" means any commercial
bank, savings bank, savings and loan association, building and
loan association, or homestead association (including cooperative
banks) or credit union which makes federally related mortgage
loans as determined by the Board;
(3) the term "Board" means the Board of Governors of the Federal Reserve System; and
(4) the term "Secretary" means the Secretary of Housing and
Urban Development.
M A I N T E N A N C E OF RECORDS AND PUBLIC DISCLOSURE

SEC. 304. (a)(1) Each depository institution which has a home 12 USC 2803.,
office or branch office located within a standard metropolitan statistical
area, as defined by the Office of Management and Budget shall compile
and make available, in accordance with regulations of the Board, to
the public for inspection and copying at the home office, and at at least
one branch office within each standard metropolitan statistical area in
which the depository institution has an office the number and total
dollar amount of mortgage loans which were (A) originated, or (B)
purchased by that institution during each fiscal year (beginning with
the last full fiscal year of that institution which immediately preceded
the effective date of this title).

57-194 O - 77 - 75

89 STAT. 1126

12 u s e 1707.
42 u s e 1471.
38 u s e 1801 et
seq.

PUBLIC LAW 94-200—DEC. 3 1 , 1975
(2) The information required to be maintained and made available
under p a r a g r a p h (1) shall also be itemized in order to clearly and
conspicuously disclose the following:
( A ) T h e number and dollar amount for each item referred to
in p a r a g r a p h ( 1 ) , by census tracts, where readily available at a
reasonable cost, as determined by the Board, otherwise by Z I P
code, for borrowers, under mortgage loans secured by property
located within t h a t standard metropolitan statistical area,
( B ) The number and dollar amount for each item referred to
in p a r a g r a p h (1) for all such mortgage loans which are secured
by property located outside t h a t standard metropolitan statistical
area.
F o r the purpose of this p a r a g r a p h , a depository institution which
maintains offices in moie than one standard metropolitan statistical
area shall be required to make the information required by this para g r a p h available at any such office only to the extent t h a t such information relates to mortgage loans which were originated or purchased
by an office of t h a t depository institution located in t h e standard metropolitan statistical area in which the office m a k i n g such information
available is located.
(b) A n y item of information relating to mortgage loans required
to be maintained under 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 title I I of the National Housing Act or under
title V of the Housing Act 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; and
(3) the number and dollar amount of home improvement loans.
(c) A n y information required to be compiled and made available
under this section shall be maintained and made available for a period
of five years after the close of the first year d u r i n g which such information is required to be maintained and made available.
ENFORCEMENT

Regulations.
12 u s e 2804.

eompliance.
12 u s e 1818.

SEC. 305. (a) T h e B o a r d shall prescribe such regulations 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 purposes of this title, and prevent circumvention or evasion thereof, or to facilitate compliance therewith.
(b) Compliance with the requirements imposed under this title
shall be enforced under—
(1) section 8 of the Federal Deposit Insurance Act, in the case
of—
( A ) national banks, by the Comptroller of the Currency;
( B ) member banks of the Federal Reserve System, other
than national banks, by the B o a r d ;
(C) banks insured by the Federal Deposit Insurance Corporation (other t h a n members of t h e Federal Reserve System) and mutual savings banks as defined in section 3 ( f ) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(f)) and

PUBLIC LAW 94-200—DEC. 31, 1975

89 STAT. 1127

any other depository institution not referred to in this paragraph or paragraph (2) or (3) of this subsection, by the
Board of Directors of the Federal Deposit Insurance
Corporation;
(2) section 5(d) of the Home Owners' Loan Act of 1933, sec- 12 USC 1464.
tion 407 of the National Housing Act, and sections 6(i) and 17 12 USC 1730.
of the Federal Home Loan Bank Act, by the Federal Home Loan 12 USC 1426,
Bank Board (acting directly or through the Federal Savings and ^'^^'^•
Loan Insurance Corporation), in the case of any institution subject to any of those provisions; and
(3) the Federal Credit Union Act, by the Administrator of 12 USC 1751.
the National Credit Union Administration with respect to any
credit union,
(c) For the purpose of the exercise by any agency referred to in Violation,
subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall
be deemed to be a violation of a requirement imposed under that Act.
In addition to its powers under any provision of law specifically
referred to in subsection (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.
RELATION TO STATE LAWS

SEC. 306. (a) This title does not annul, alter, or affect, or exempt 12 USC 2805.
any State chartered depository institution subject to the provisions of
this title from complying with the laws of any State or subdivision
thereof with respect to public disclosure and recordkeeping by
depositor institutions, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of
the inconsistency. The Board is authorized to determine 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 w4th greater
geographic 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 State chartered depository institution within any State
or subdivision thereof if it determines that, under the law of such State
or subdivision, 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, compliance with the requirements imposed
under this subsection shall be enforced under—
(1) Section 8 of the Federal Deposit Insurance Act in the 12 USC 1818.
case of national banks, by the Comptroller of the Currency; and
(2) Section o(d) of the Home Owners' Loan Act of 1933 in 12 USC 1464.
the case of any institution subject to that provision, by the Federal Home Loan Bank Board.
RESEARCH AXD IMPROVED METHODS

SEC. 307. (a) (1) The Federal Home Loan Bank Board, with the 12 USC 2806.
assistance of the Secretary, the Director of the Bureau of the Census,
the Comptroller of the Currency, the Board of Governors of the Federal Eeserve System, the Federal Deposit Insurance Corporation, and

89 STAT. 1128

Appropriation
authorization.

Recommendation
to congressional
committees.

PUBLIC LAW 94-200—DEC. 31, 1975
such other persons as the Federal Home Loan Bank Board deems
appropriate, shall develop, or assist in the improvement of, methods
of matching addresses and census tracts to facilitate compliance by
depository institutions 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 Federal Home Loan Bank Board is authorized to utilize,
contract with, act through, or compensate any person or agency in
order to carry out this subsection.
(b) The Federal Home Loan Bank Board shall recommend to the
Committee on Banking, Currency and Housing of the House of Representatives and the Committee on Banking, Housing and Urban Ajffairs
of the Senate such additional legislation as the Federal Home Loan
Bank Board deems appropriate to carry out the purpose of this title.
STUDY

12 use 2807.

Report to
Congress.

SEC. 308. (a) The Board, in consultation with the Secretary of
Housing and Urban Development, is authorized and directed to carry
out a study to determine the feasibility and usefulness of requiring
depository institutions located outside standard metropolitan statistical areas, as defined by the Office of Management and Budget, to make
disclosures comparable to those required by this title,
(b) A report on the study under this section shall be transmitted to
the Congress not later than three years after the date of enactment of
this title.
EFFECTIVE DATE

12 use 2808.

SEC. 309. This title shall take effect on the one hundred and eightieth
day beginning after the date of its enactment. Any depository institution 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.
TERMINATION OF AUTHORITY

12 use 2809,

SEC. 310. The authority granted by this title shall expire four years
after its effective date.
Approved December 31, 1975.

LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 94-561 accompanying H.R. 10024 (Comm. on Banking,
Currency and Housing) and No. 94-726 (Comm. of eonference).
SENATE REPORTS: No. 94-187 (Comm. on Banking, Housing and Urban Affairs) and
No. 94-553 (eomm. of Conference).
CONGRESSIONAL RECORD, Vol. 121 (1975):
July 26, Sept. 4, considered and passed Senate.
Oct. 30, 31, considered and passed House, amended, in lieu of H.R. 10024.
Dec. 15, Senate agreed to conference report.
Dec. 18, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 1:
Jan. 1, Presidential statement.