[Federal Register Volume 67, Number 124 (Thursday, June 27, 2002)]
[Rules and Regulations]
[Pages 43217-43218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16189]



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  Federal Register / Vol. 67, No. 124 / Thursday, June 27, 2002 / Rules 
and Regulations  

[[Page 43217]]



FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-1120]


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; technical amendment.

-----------------------------------------------------------------------

SUMMARY: The Board is publishing amendments to Regulation C (Home 
Mortgage Disclosure). The amendments require lenders to ask applicants 
their race or national origin and sex in applications taken by 
telephone, conforming the telephone application rule to the rule 
applicable to mail and Internet applications.

DATES: The amendments are effective January 1, 2003.

FOR FURTHER INFORMATION CONTACT: John C. Wood, Counsel, Kathleen C. 
Ryan, Senior Attorney, or Dan S. Sokolov, Attorney, Division of 
Consumer and Community Affairs, Board of Governors of the Federal 
Reserve System, Washington, DC 20551, at (202) 452-3667 or (202) 452-
2412. For users of Telecommunications Device for the Deaf (TDD) only, 
contact (202) 263-4869.

SUPPLEMENTARY INFORMATION:

I. Background

    The Home Mortgage Disclosure Act (HMDA) requires certain depository 
and for-profit nondepository institutions to collect, report, and 
publicly disclose data about originations and purchases of home 
mortgage and home improvement loans. Institutions must also report data 
about applications that do not result in originations. The Board's 
Regulation C implements HMDA.
    On January 23, 2002, the Board approved a final rule amending 
Regulation C, effective January 1, 2003. 67 FR 7222, February 15, 2002. 
The Board subsequently delayed the effective date of the amendments 
from January 1, 2003, until January 1, 2004. 67 FR 30771, May 8, 2002.
    At the same time that the final rule was published, the Board 
issued a proposed rule for comment on three items related to the final 
rule: (1) The appropriate thresholds for purposes of reporting pricing 
data on loan originations; (2) whether lenders should report lien 
status; and (3) whether lenders should be required to ask applicants 
for monitoring information on ethnicity, race, and sex in applications 
taken entirely by telephone. 67 FR 7252, February 15, 2002.
    The Board has issued a final rule, adopting the three proposed 
items, in a notice published elsewhere in today's Federal Register. For 
reasons discussed in that notice, the revised rule regarding the 
collection of monitoring information about ethnicity, race, and sex is 
effective as of January 1, 2003. Because the final rule published today 
amends the revised regulation--which does not take effect until January 
1, 2004--the Board is publishing a rule with respect to monitoring 
information, set forth in this notice, to cover the period from January 
1, 2003, to December 31, 2003. The rule amends the portions of the 
current Appendices A and B to Regulation C that set forth instructions 
for collecting monitoring information in telephone applications.
    Thus, for applications taken beginning January 1, 2003, lenders 
must ask telephone applicants for monitoring information under Appendix 
A, Paragraph V.D.2, and Appendix B, Paragraph I.B.4., as revised by the 
Board in this notice. For these applications, lenders must use the race 
or national origin categories in current Appendix A, Paragraph V.D.3., 
and in the sample data collection form in current Appendix B. For 
applications taken on or after January 1, 2004, lenders are required to 
ask telephone applicants for monitoring information under Appendix A, 
Paragraph I.D.2., and Appendix B, Paragraph II.A., as revised in the 
notice published elsewhere in today's Federal Register, using the 
revised ethnicity and race categories in Appendix A, Paragraphs I.D.3. 
and 4., and the sample data collection form in Appendix B approved by 
the Board on January 23, 2002.

List of Subjects in 12 CFR Part 203

    Banks, banking, Mortgages, Reporting and recordkeeping 
requirements.


    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. Appendix A is amended by revising Paragraph V.D.2. to read as 
follows:

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

* * * * *
    V. Instructions for Completion of Loan/Application Register
* * * * *
    D. Applicant Information--Race or National Origin, Sex, and 
Income
* * * * *
    2. Mail, Internet, or Telephone Applications. All loan 
applications, including applications taken by mail, Internet, or 
telephone, must use a collection form similar to that shown in 
appendix B regarding race or national origin and sex. For 
applications taken by telephone, the information in the collection 
form must be stated orally by the lender, except for information 
that pertains uniquely to applications taken in writing. If the 
applicant does not provide these data in an application taken by 
mail, Internet or telephone, enter the code for ``information not 
provided by applicant in mail or telephone application'' specified 
in paragraphs V.D.3. and 4. of this appendix. (See appendix B for 
complete information on the collection of these data in mail, 
Internet, or telephone applications.)
* * * * *

    3. Appendix B is amended by revising paragraph I.B.4. to read as 
follows:

Appendix B to Part 203--Form and Instructions for Data Collection on 
Race or National Origin and Sex

* * * * *
    I. Instructions on collection of data on race or national origin 
and sex
* * * * *
    B. Procedures
* * * * *
    4. You must ask the applicant for this information (but you 
cannot require the applicant to provide it) whether the application 
is taken in person, by mail or telephone, or on the Internet. For

[[Page 43218]]

applications taken by telephone, the information in the collection 
form must be stated orally by the lender, except for that 
information which pertains uniquely to applications taken in 
writing. You need not provide the data when you take an application 
by mail or telephone or on the Internet, if the applicant fails to 
answer. You should indicate whether an application was received by 
mail, telephone, or the Internet, if it is not otherwise evident on 
the face of the application.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, June 21, 2002.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 02-16189 Filed 6-26-02; 8:45 am]
BILLING CODE 6210-01-P