[Federal Register Volume 59, Number 194 (Friday, October 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24324]


[[Page Unknown]]

[Federal Register: October 7, 1994]


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FEDERAL RESERVE SYSTEM

12 CFR Part 203
[Regulation C; Docket No. R-0848]

 

Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Proposed rule.

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SUMMARY: The Board is publishing for public comment proposed changes to 
Regulation C (Home Mortgage Disclosure) and to the instructions that 
financial institutions must use to comply with the annual reporting 
requirements under the regulation. The amendments reflect revisions 
proposed by the Board, the Office of the Comptroller of the Currency, 
the Federal Deposit Insurance Corporation, and the Office of Thrift 
Supervision to their regulations implementing the Community 
Reinvestment Act (CRA). Under the joint CRA proposal, banks or savings 
associations that report data about their home mortgage lending 
pursuant to HMDA--and that have assets of $250 million or more, or that 
are subsidiaries of a holding company with total banking and thrift 
assets of $250 million or more--would collect and report geographic 
information on loans and loan applications relating to property located 
outside the MSAs in which the institution has a home or branch office. 
Currently, geographic identification is required only within MSAs where 
these lenders have an office. Data would be collected and reported in 
accordance with the instructions in Regulation C. The agencies believe 
that these data would provide more geographic detail on home mortgage 
lending that would facilitate complete CRA assessments for institutions 
that do not qualify as small banks or thrifts.

DATES: Comments must be received on or before November 21, 1994. The 
revised final rules would apply to loan and application data beginning 
July 1, 1995.

ADDRESSES: Comments should refer to Docket No. R-0848 and be sent to 
William W. Wiles, Secretary, Board of Governors of the Federal Reserve 
System, Washington, D.C. 20551. They may also be delivered to Room B-
2222 of the Eccles Building between 8:45 a.m. and 5:15 p.m. weekdays, 
or to the guard station in the Eccles Building courtyard on 20th 
Street, NW, (between Constitution Avenue and C Street) at any time. 
Comments received will be available for inspection in Room MP-500 of 
the Martin Building between 9:00 a.m. and 5:00 p.m. weekdays, except as 
provided in 12 CFR 261.8 of the Board's rules regarding the 
availability of information.

FOR FURTHER INFORMATION CONTACT: Jane Jensen Gell or W. Kurt 
Schumacher, Staff Attorneys, Division of Consumer and Community 
Affairs, Board of Governors of the Federal Reserve System, Washington, 
DC 20551, at (202) 452-2412 or (202) 452-3667. For the hearing impaired 
only, contact Dorothea Thompson, Telecommunications Device for the Deaf 
(TDD), at (202) 452-3544.

SUPPLEMENTARY INFORMATION:

I. Background

    The Board's Regulation C (12 CFR Part 203) implements the Home 
Mortgage Disclosure Act of 1975 (HMDA) (12 U.S.C. 2801 et seq). HMDA 
requires most mortgage lenders located in metropolitan areas to collect 
data about their housing-related lending activity. Annually, lenders 
must report that data to their federal supervisory agencies and 
disclose the data to the public. The reports and disclosures cover loan 
originations, applications that do not result in originations (for 
example, applications that are denied or withdrawn), and loan 
purchases. Information reported includes the location of the property 
to which the loan or application relates; the race or national origin, 
gender, and gross annual income of the borrower or applicant; and the 
type of purchaser for loans sold in the secondary market.
    The federal financial regulatory agencies have proposed amendments 
to the CRA. The CRA proposal would require banks or savings 
associations that report data about their home mortgage lending 
pursuant to HMDA--and that have assets of $250 million or more, or that 
are subsidiaries of a holding company with total banking and thrift 
assets of $250 million or more--to collect and report geographic 
information on loans and applications relating to property located in 
metropolitan areas whether or not the institution has a home or branch 
office there. They will also report geographic information for property 
located outside any MSA. (This proposal does not affect the current 
exemption in Sec. 203.3 of Regulation C for banks and savings 
associations; for example, institutions whose assets are $10 million or 
less remain exempt.) Currently, lenders have the option of collecting 
this information but are not required to do so. The agencies believe 
that these data would provide more geographic detail on home mortgage 
lending that would facilitate complete CRA assessments for institutions 
that do not qualify as small banks or thrifts. The revised final rules 
would apply to loan and application data beginning July 1, 1995.

II. Summary of Proposed Amendments

    Set forth below is a section-by-section discussion of the proposed 
amendments to the regulation.

Section 203.4--Compilation of Loan Data

Paragraph (e)--Data Reporting Under CRA
    The proposal would add a new paragraph to implement proposed 
revisions to the agencies' CRA regulations. Under the joint CRA 
proposal, banks or savings associations that report data about their 
home mortgage lending pursuant to HMDA--and that have assets of $250 
million or more, or that are subsidiaries of a holding company with 
total banking and thrift assets of $250 million or more--would collect 
and report geographic information for all loans and applications, not 
just for property in MSAs where the institution has a home or branch 
office. The requirement also would apply to property located outside 
any MSA. The agencies believe that incorporating these reporting 
requirements in Regulation C would facilitate compliance for lenders.

Appendix A--Form and Instructions for Completion of HMDA Loan/
Application Register

V. Instructions for Completion of Loan/Application Register Paragraph C
    The Board proposed to add a new paragraph to reflect the proposed 
CRA reporting requirements for banks and savings associations with 
assets of $250 million or more and banks and savings associations that 
are subsidiaries of a holding company with total banking and thrift 
assets of $250 million or more.

III. Economic Impact Statement

    The Board's Division of Research and Statistics has prepared an 
economic impact analysis of the proposed amendments. A copy of the 
analysis may be obtained from Publications Services, Board of Governors 
of the Federal Reserve System, Washington, DC 20551, or by telephone at 
(202) 452-3245.

IV. Benefit and Burden of Administrative Compliance Requirements

    With respect to the reporting, disclosure, and other administrative 
compliance requirements in the proposal, the Board invites comment on 
(1) Any administrative burdens that these requirements in the proposal 
would place on depository institutions, including small depository 
institutions and customers of depository institutions; and (2) the 
benefits of these requirements in the proposal for depository 
institutions, their customers, and their communities.

List of Subjects in 12 CFR Part 203

    Banks, Banking, Consumer protection, Federal Reserve System, 
Mortgages, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, the Board proposes to 
amend 12 CFR part 203 as follows:

PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)

    1. The authority citation for part 203 continues to read as 
follows:

    Authority: 12 U.S.C. 2801-2810.

    2. Section 203.4 would be amended by adding a new paragraph (e), to 
read as follows:


Sec. 203.4  Compliation of loan data.

* * * * *
    (e) Data reporting under CRA for banks and savings associations 
with total assets of $250 million or more and banks and savings 
associations that are subsidiaries of a holding company whose total 
banking and thrift assets are $250 million or more. As required by 
agency regulations that implement the Community Reinvestment Act, banks 
and savings associations that have total assets of $250 million or more 
on the preceding December 31, or are subsidiaries of a holding company 
with total banking and thrift assets of $250 million or more, shall 
also report the location for property located outside the MSAs in which 
the institution has a home or branch office.

    3. Appendix A to part 203 would be amended by adding a new section 
V.C.7., to read as follows:

Appendix A Part 203--Form and Instructions for Completion HMDA 
Loan/Application Register

* * * * *
    V. * * *
    C. * * *
    7. Data reporting under CRA for banks and savings associations with 
total assets of $250 million or more and banks and savings associations 
that are subsidiaries of a holding company whose total banking and 
thrift assets are $250 million or more. If you are a bank or savings 
association with total assets of $250 million or more on the preceding 
December 31, you must also report the location for property located 
outside the MSAs in which you have a home or branch office. You must 
also report this information if you are a bank or savings association 
that is a subsidiary of a holding company with total banking and thrift 
assets of $250 million or more.
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, September 26, 1994.
William W. Wiles,
Secretary of the Board.
[FR Doc. 94-24324 Filed 10-6-94; 8:45 am]
BILLING CODE 6210-01-P