[Federal Register Volume 63, Number 246 (Wednesday, December 23, 1998)]
[Rules and Regulations]
[Pages 70996-70997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34021]


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FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. [R-1033]]


Home Mortgage Disclosure (Regulation C)

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; staff commentary.

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SUMMARY: The Board is publishing a final rule amending the staff 
commentary that interprets the requirements of Regulation C (Home 
Mortgage Disclosure). The Board is required to adjust annually the 
asset-size exemption threshold for depository institutions based on the 
annual percentage change in the Consumer Price Index for Urban Wage 
Earners and Clerical Workers. The adjustment reflects changes for the 
twelve-month period ending in November. During this period, the index 
increased by 1.3%; as a result, the threshold remains at $29 million. 
Thus, depository institutions with assets of $29 million or less as of 
December 31, 1998 are exempt from data collection in 1999.

EFFECTIVE DATE: January 1, 1999. This rule applies to all data 
collection in 1999.

FOR FURTHER INFORMATION CONTACT: Pamela Morris Blumenthal, Staff 
Attorney, Division of Consumer and Community Affairs, at (202) 452-
3667; for users of Telecommunications Device for the Deaf (TDD) only, 
contact Diane Jenkins at (202) 452-3544.

SUPPLEMENTARY INFORMATION:

I. Background

    The Home Mortgage Disclosure Act (HMDA; 12 U.S.C. 2801 et seq.) 
requires most mortgage lenders located in metropolitan statistical 
areas to collect data about their housing-related lending activity. 
Annually, lenders must file reports with their federal supervisory 
agencies and make disclosures available to the public. The Board's 
Regulation C (12 CFR part 203) implements HMDA. Provisions of the 
Economic Growth and Regulatory Paperwork Reduction Act of 1996 (Pub. L. 
104-208, 110 Stat. 3009) amended HMDA to expand the exemption for small 
depository institutions. Prior to 1997, HMDA exempted depository 
institutions with assets totaling $10 million or less, as of the 
preceding year end. The statutory amendment increased the asset-size 
exemption threshold by requiring annual adjustments based on the annual 
percentage increase in the Consumer Price Index for Urban Wage Earners 
and Clerical Workers (CPIW).
    The statutory amendment is implemented in Sec. 203.3(a)(1)(ii), 
which provides that the Board will adjust the threshold based on the 
year-to-year change in the average of the CPIW, not seasonally 
adjusted, for each twelve-month period ending in November, rounded to 
the nearest million. For 1998 data collection, the exemption threshold 
was $29 million. During the period ending in November 1998, the CPIW 
increased by 1.3%. As a result, the new threshold remains at $29 
million. Thus, depository institutions with assets of $29 million or 
less as of December 31, 1998 are exempt from data collection in 1999. 
An institution's exemption from collecting data in 1999 does not affect 
its responsibility to report the 1998 data it was required to collect.
    The Board is adopting this amendment to the staff commentary to 
implement the fact that the exemption threshold remains at $29 million 
for data collected in 1999. The Administrative Procedure Act provides 
that notice and opportunity for public comment are not required if the 
Board finds that notice and public comment are unnecessary or would be 
contrary to the public interest. 5 U.S.C. 553(b)(B). The Board believes 
such a finding is appropriate in this case. Regulation C establishes a 
formula for determining adjustments to the exemption threshold, if any, 
and the amendment to the staff commentary merely applies the formula. 
This amendment is technical and not subject to interpretation. For 
these reasons, the Board has determined that publishing a notice of 
proposed rulemaking and providing opportunity for public comment for 
the following amendment is unnecessary and would be contrary to the 
public interest. Therefore, the amendment is adopted in final form.

II. Section by Section Analysis

Section 203.3--Exempt Institutions

    Comment 3(a)-2 has been revised to provide that depository 
institutions with assets that are at or below the threshold as of 
December 31, 1998 need not collect data for 1999.

List of Subjects in 12 CFR Part 203

    Banks, banking, Consumer protection, Federal Reserve System, 
Mortgages, Reporting and recordkeeping requirements.
Text of Revisions
    For the reasons set forth in the preamble, the Board amends 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. In Supplement I to Part 203, under Section 203.3--Exempt 
Institutions, under 3(a) Exemption based on location, asset size, or 
number of home-purchase loans, paragraph 2 is revised to read as 
follows:

[[Page 70997]]

Supplement I to Part 203--Staff Commentary

* * * * *
Section 203.3--Exempt Institutions
    3(a) Exemption based on location, asset size, or number of home-
purchase loans.
* * * * *
    2. Adjustment of exemption threshold for depository institutions. 
For data collection in 1999, the asset-size exemption threshold is $29 
million. Depository institutions with assets at or below $29 million 
are exempt from collecting data for 1999.
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, December 17, 1998.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 98-34021 Filed 12-22-98; 8:45 am]
BILLING CODE 6210-01-P