[Federal Register Volume 69, Number 58 (Thursday, March 25, 2004)]
[Proposed Rules]
[Pages 15470-15559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6316]



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Part III





Federal Reserve System





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12 CFR Part 203



Home Mortgage Disclosure; Proposed Rule

  Federal Register / Vol. 69, No. 58 / Thursday, March 25, 2004 / 
Proposed Rules  

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FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-1186]


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Proposed rule; request for comment on revised formats for 
public disclosure of lending data.

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SUMMARY: The Board is soliciting comment on revised formats for public 
disclosure of mortgage lending data reported pursuant to the Home 
Mortgage Disclosure Act and Regulation C, in light of revisions to 
Regulation C requiring lending institutions to report new loan pricing 
and other loan data. The first year for which the new data will be 
reported is 2004; data from institutions are due no later than March 1, 
2005, and the data will be reflected in the public disclosures 
scheduled to be released in summer 2005.

DATES: Comments must be received by May 10, 2004.

ADDRESSES: Comments should refer to Docket No. R-1186 and may be mailed 
to Jennifer J. Johnson, Secretary, Board of Governors of the Federal 
Reserve System, 20th Street and Constitution Avenue, NW., Washington, 
DC 20551. Please consider submitting your comments through the Board's 
Web site at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm, 
by e-mail to [email protected], or by fax to the Office 
of the Secretary at 202/452-3819 or 202/452-3102. Rules proposed by the 
Board and other federal agencies may also be viewed and commented on at 
www.regulations.gov.
    All public comments are available from the Board's Web site at 
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
except as necessary for technical reasons. Accordingly, your comments 
will not be edited to remove any identifying or contact information. 
Public comments may also be viewed electronically or in paper in Room 
MP-500 of the Board's Martin Building 20th and C Streets, NW.) between 
9 a.m. and 5 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Glenn Canner, Senior Adviser, Division 
of Research and Statistics, at (202) 452-2910; or John C. Wood or 
Kathleen C. Ryan, Counsel, 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), 12 U.S.C. 2801 et seq., 
requires certain depository and for-profit nondepository institutions 
to collect, report, and publicly disclose data about applications for, 
and originations and purchases of, home purchase and certain other 
home-secured loans (such as refinanced home purchase loans) and home 
improvement loans (whether secured or unsecured). The Board's 
Regulation C, 12 CFR Part 203, implements HMDA. The data reported 
include the application date; the type, purpose, and amount of the loan 
or application; the date and type of action taken on the application; 
the location of the property to which the loan relates; the race, 
ethnicity, sex, and income of the applicant or borrower; the type of 
purchaser if the loan is sold; and the reasons for denial if the 
application is denied.
    Pursuant to section 304(h) of HMDA, lending institutions subject to 
the act report data on the HMDA Loan/Application Register (HMDA-LAR) in 
a loan-by-loan and application-by-application form. The data are then 
submitted to the federal financial regulatory agencies. Sections 304 
and 310 of HMDA direct the Federal Financial Institutions Examination 
Council (FFIEC) to edit and process the data and to produce public 
disclosure statements, which are sent back to the reporting 
institutions to be made available to the public upon request. In 
addition, the FFIEC sends the institutions' public disclosure 
statements to central depositories (such as public libraries) in each 
metropolitan statistical area (MSA), along with aggregate disclosures 
covering all reporting institutions in that MSA. Under section 304(h) 
of HMDA, the Board--in cooperation with the Office of the Comptroller 
of the Currency (OCC), the Office of Thrift Supervision (OTS), the 
Federal Deposit Insurance Corporation (FDIC), the National Credit Union 
Administration (NCUA), and the Department of Housing and Urban 
Development (HUD)--is directed to develop the format for the public 
disclosures.
    The Board recently completed a review of Regulation C (see 67 FR 
7222, February 15, 2002, and 67 FR 43217, June 27, 2002). Amendments to 
the regulation adopted as a result of the review require institutions 
to report new items, including a rate spread between the annual 
percentage rate (APR) on the loan and the yield on Treasury securities 
of comparable maturity; whether the loan is subject to the Home 
Ownership and Equity Protection Act (HOEPA); whether manufactured 
housing is involved; the type of lien on the property (first, 
subordinate, or none); and certain information about requests for 
preapproval. In addition, the regulation was amended to conform to 
changes in standards for collection of applicant data on race and 
ethnicity adopted by the Office of Management and Budget (OMB). The 
first year for which the new data will be reported is 2004; data from 
institutions must be submitted to the appropriate federal financial 
regulatory agency no later than March 1, 2005, and the data will be 
reflected in the public disclosures scheduled to be released in summer 
2005.
    To facilitate public access to the new information that will be 
reported, in keeping with the purposes of the act, the formats for the 
public HMDA disclosure statements will be revised. The Board and the 
other regulatory agencies seek public comment on the proposed formats 
for the revised disclosure statements. The proposed changes include 
revisions to some of the existing disclosure tables, deletion of one 
set of existing tables, and the addition of new tables.
    The proposed revisions to the existing tables are primarily to 
reflect the changes to the race and ethnicity categories adopted by OMB 
and the itemization of data on manufactured housing. One series of 
tables (Tables 6-1 through 6-6) would be deleted because of their 
perceived lack of utility to HMDA data users. The proposed new tables 
reflect new data on rate spread, HOEPA status, lien status, preapproval 
requests, and manufactured housing. Comment is solicited on these 
proposed revisions, deletions, and additions.

II. Explanation of Proposed Revised Disclosure Formats

A. Revisions to Existing Tables and Series of Tables

    The existing tables for each reporting financial institution are 
Tables 1, 2, 3, 4-1 through 4-6, 5-1 through 5-6, 6-1 through 6-6, 7-1 
through 7-6, and 8-1 through 8-6, and Supplemental Tables 1 and 2. 
There are also aggregate versions of Tables 1 through 8-6, reflecting 
the aggregated data of all reporting financial institutions in each 
MSA. In addition, there are Aggregate Tables 9 and 10, but no versions 
of these tables for individual financial institutions. In each case, 
the same

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changes that would be made to the basic individual institution tables 
(1 through 8-6) would also be made to the aggregate and supplemental 
versions. For example, Table 1, Aggregate Table 1, and Supplemental 
Table 1 would be revised in the same way.
1. Table 1 and Supplemental Table 1--Disposition of Loan Applications, 
by Location of Property and Type of Loan
    Existing Table 1 shows action taken on loan applications (such as 
loan originated, application approved but not accepted, application 
denied), detailed by the census tract in which a property is located. 
The table also shows the type of loan (government-backed 1-to-4 family 
home purchase loans, conventional 1-to-4 family home purchase loans, 1-
to-4 family refinancings, 1-to-4 family home improvement loans, 
multifamily loans, and loans on 1-to-4 family non-owner-occupied 
property).
    Institutions are required to report property location (generally 
MSA, state, county, and census tract) for loans on property located in 
MSAs in which they have home or branch offices. Therefore, for each 
reporting institution, Table 1 is produced for each MSA in which the 
institution has offices. In addition, some institutions are required by 
the regulations implementing the Community Reinvestment Act (12 U.S.C. 
2901 et seq.) to report property location for all loans, no matter 
where the property is located, and some institutions voluntarily choose 
to do so. In these cases, Supplemental Table 1 is produced to reflect 
the same information as Table 1 for loans on property not located in 
MSAs where the institution has offices.
    The only substantive change to Table 1 (and Aggregate Table 1 and 
Supplemental Table 1) is the addition of a new column G to provide 
separately itemized data for loan applications for manufactured 
housing. Existing Table 1 shows combined data covering both 
manufactured housing loans and 1-to-4 family housing loans. The revised 
table would continue to include manufactured housing loans along with 
1-to-4 family loans in columns A, B, C, and D, and the heading for 
these columns would be changed to reflect this fact.
2. Table 2 and Supplemental Table 2--Loans Purchased, by Location of 
Property and Type of Loan
    Existing Table 2 shows loans purchased by the institution, detailed 
by census tract and by type of loan, using the same loan types as in 
Table 1. As with Table 1, Table 2 is produced for each MSA in which the 
institution has offices. Supplemental Table 2 reflects the same 
information as Table 2, for loans on property not located in MSAs where 
the institution has offices.
    The only changes to Table 2 (and to Aggregate Table 2 and 
Supplemental Table 2) would be the same as to Table 1: The addition of 
a column G for manufactured housing loans and the change in the heading 
for columns A, B, C, and D to reflect the fact that data in those 
columns include manufactured housing loans.
3. Table 3--Loans Sold, by Characteristics of Borrower and of Census 
Tract in Which Property Is Located and by Type of Purchaser
    Existing Table 3 shows loans sold by the institution, detailed by 
the race, sex, and income of the borrower; by the racial and income 
characteristics of the census tract in which the property is located; 
and by the type of entity that purchased the loan (such as Fannie Mae, 
commercial bank, or affiliate of the institution). Table 3 is produced 
for each MSA in which the institution has offices.
    The types of purchasers shown in Table 3 would be conformed to the 
revised categories for type of purchaser used under the amended 
Regulation C. The changes included combining the commercial bank and 
savings institution categories; adding credit unions, mortgage banks, 
and finance companies to the life insurance company category; adding a 
new category for private securitization; and nonsubstantive terminology 
changes.
    Table 3 would also reflect the changes in borrower characteristics 
collected under the Regulation C revisions. The Regulation C revisions 
conform to standards for collection of data on race and ethnicity 
adopted by OMB. The OMB standards allow individuals to self-identify 
using more than one racial category, treat ethnicity and race as 
separate items of information, separate ``Asian or Pacific Islander'' 
into two categories (``Asian'' and ``Native Hawaiian or Other Pacific 
Islander,'') eliminate the category ``Other,'' and make nonsubstantive 
terminology changes.
    The racial categories in revised Table 3 follow the new categories 
adopted in revised Regulation C. To reflect loans where the applicant 
has marked more than one minority race, a new category entitled ``2 or 
More Minority Races'' would be added. Where the applicant chose white 
and one minority race category (for example, Asian) the loan would be 
reflected in the data for the minority race (Asian, in this example). 
Ethnicity would be shown separately from race, using the categories 
``Hispanic or Latino,'' ``Not Hispanic or Latino,'' ``Joint (Hispanic 
or Latino/ Not Hispanic or Latino),'' and ``Ethnicity Not Available'' 
(paralleling ``Race Not Available''). ``Joint (Hispanic or Latino/ Not 
Hispanic or Latino)'' would apply where one joint applicant is Hispanic 
or Latino and the other is not, paralleling the ``Joint'' category 
under race which applies where one applicant is minority and the other 
is white.
    In the racial categories in revised Table 3, white is divided into 
``White--Hispanic or Latino'' and ``White--Not Hispanic or Latino,'' to 
allow data users to better focus on data about lending to minorities 
more generally, and to provide some continuity with data generated 
under the existing HMDA disclosures (in that ``White--Not Hispanic or 
Latino'' in the proposed revised disclosures appears to be 
substantially equivalent to ``White'' in the existing disclosures). For 
similar reasons, revised Table 3 contains a data line entitled ``Total 
Minority,'' which aggregates loan data from all categories except 
``White--Not Hispanic or Latino'' and ``Race Not Available.''
    The section of Table 3 detailing loans sold by sex of the 
borrower--which appears not to have great utility for most data users--
would be deleted. The information can be derived from the institution's 
HMDA-LAR, which is available to the public directly from the 
institution.
    The section of Table 3 showing loans sold by income of the borrower 
remains unchanged. The section showing loans sold by racial/ethnic 
composition of census tracts and by income of census tracts also 
remains unchanged, except for a possible change affecting loans on 
property in the Commonwealth of Puerto Rico.
    The existing public disclosure tables for MSAs in Puerto Rico 
contain no data in the section on racial/ethnic composition of census 
tracts, because in the decennial censuses up to and including 1990, 
this information was not collected for areas in Puerto Rico. In the 
2000 census, information was collected on the racial and ethnic 
composition of census tracts in Puerto Rico, and Table 3 for MSAs in 
Puerto Rico could be revised to show the data. The census tract data 
from all MSAs are rolled up into national aggregates, which are not 
part of the public HMDA disclosures sent to central depositories, but 
are available from the FFIEC. Inclusion of the Puerto Rico census tract 
data now, after excluding them in the past, could make trend analysis 
at the national level more difficult.

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    The revised format for Table 3 contained in this proposal includes 
the census tract data for MSAs in Puerto Rico. Comment is solicited on 
whether the national aggregate tables should include or exclude the 
Puerto Rico census tract data.
4. Table 4 Series--Disposition of Applications, by Race, Ethnicity, 
Gender and Income of Applicant
    The existing tables in the Table 4 series show action taken on 
applications for various types of loans, detailed by race/national 
origin of applicants and further itemized by sex of applicants, and 
detailed by income of applicants. There is one table for each type of 
loan, using the same loan types as in Table 1. Thus, Table 4-1 shows 
disposition of applications for government-insured and government-
guaranteed home purchase loans on 1-to-4 family dwellings; Table 4-2 
shows disposition of applications for conventional home purchase loans 
on 1-to-4 family dwellings; Table 4-3 shows disposition of applications 
for refinancings on 1-to-4 family dwellings; Table 4-4 shows 
disposition of applications for home improvement loans on 1-to-4 family 
dwellings; Table 4-5 shows disposition of applications for loans on 
multifamily dwellings; and Table 4-6 shows disposition of applications 
for loans on 1-to-4 family non-owner-occupied property. Each of these 
tables is produced for each MSA in which the institution has offices.
    The changes to the tables in the Table 4 series parallel changes to 
Table 3 with regard to the race and ethnicity categories, as described 
above. Within each of these categories, itemized data would also be 
shown for Male, Female, and Joint (applying where one joint applicant 
is male and the other is female). A section with data on ``Total 
Minority'' would be calculated the same way as in Table 3 and would 
include detail on Male, Female, and Joint.
    As in Table 3, the section in the Table 4 series showing action 
taken on applications by income of applicants remains unchanged. The 
titles of the tables also remain unchanged except that ``1-to-4 Family 
and Manufactured Home Dwellings'' replaces ``1-to-4 Family Homes'' in 
Tables 4-1, 4-2, 4-3, 4-4, and 4-6, which continue to include 
manufactured homes along with 1-to-4 family homes. ``Ethnicity'' is 
added to the titles on each of the tables, since ethnicity is now 
treated as a separate item of data from race.
    A new Table 4-7 would be added, titled ``Disposition of 
Applications for Home Purchase, Home Improvement, or Refinancing Loans, 
Manufactured Home Dwellings, by Race, Ethnicity, Gender and Income of 
Applicant.'' The data shown would be the same as in the other tables in 
the Table 4 series, as revised, except that the data would relate to 
manufactured home loan applications. Thus, the data in Table 4-7 will 
be a subset of the data in Tables 4-1, 4-2, 4-3, and 4-4. In this 
respect, new Table 4-7 parallels the new columns covering manufactured 
home loans and applications in Tables 1 and 2.
5. Table 5 Series--Disposition of Applications, by Income, Race and 
Ethnicity of Applicant
    The existing tables in the Table 5 series show action taken on 
applications for various types of loans, detailed by race/national 
origin of applicants and further itemized by income of applicants. 
There is one table for each type of loan, using the same loan types as 
in the Table 4 series; the two series of tables differ only in how the 
data are itemized.
    The changes mirror those made to the Table 4 series. The race/
national origin categories are changed, and ethnicity added in a 
separate section of data; the table titles are conformed; and a new 
Table 5-7 shows data for manufactured home loan applications.
6. Table 6 Series--Disposition of Applications, by Income and Gender of 
Applicant
    The existing tables in the Table 6 series show action taken on 
applications for various types of loans, detailed by income of 
applicants and further itemized by sex of applicants. Again, there is 
one table for each type of loan. The Table 6 series parallels the 4 and 
5 series; the only difference is in how the data are itemized.
    The agencies propose to eliminate the Table 6 series as redundant. 
The agencies believe that the Table 6 series is used very infrequently. 
Information on lending patterns by income and sex of loan applicants 
remains available in the 4 and 5 series of tables, as well as through 
the modified HMDA-LAR data that are also publicly available.
7. Table 7 Series--Disposition of Applications, by Characteristics of 
Census Tract in Which Property is Located
    The existing tables in the Table 7 series show action taken on 
applications, using the same types of loans as in the 4, 5, and 6 
series, but in this case detailed by the racial/ethnic composition and 
median family income of the census tract in which the property is 
located.
    The Table 7 series remains unchanged, except for the addition of a 
Table 7-7 to reflect manufactured home loan applications, and the 
inclusion of data from census tracts in Puerto Rico. The issues for the 
Table 7 series with regard to the Puerto Rico census tract data are the 
same as for Table 3; refer to the discussion of Table 3 above.
8. Table 8 Series--Reasons for Denial of Applications, by Race, 
Ethnicity, Gender, and Income of Applicant
    The existing tables in the Table 8 series cover applications that 
have been denied, and show the reasons for denial detailed by the race, 
sex, and income of the loan applicant. As in the other series, there is 
one table for each type of loan, using the same loan types.
    The changes made to the Table 8 series mirror those in the 4 and 5 
series in regard to the race/ethnicity categories and inclusion of 
ethnicity as a separate item of data. A new Table 8-7 shows reasons for 
denial of manufactured home loan applications.
9. Aggregate Table 9--Disposition of Loan Applications, by Median Age 
of Homes in Census Tract in Which Property Is Located and Type of Loan
    Existing Aggregate Table 9 shows action taken on loan applications, 
by median age of properties within census tracts where the subject 
property is located and by type of loan. The Aggregate Table 9 for each 
MSA covers the aggregated data for all reporting institutions in that 
MSA; no Table 9 is produced for individual financial institutions.
    Proposed changes to Aggregate Table 9 include adding a column to 
reflect data on manufactured home loan applications and updating the 
ranges of median ages of homes by ten years. A section of data covering 
median ages from 1990 through March 2000 will be added at the beginning 
of the table; the section covering median ages of 1949 or earlier, at 
the end of the existing Aggregate Table 9, will be deleted; and the 
range 1950-1959 in the existing table will be changed to 1959 or 
earlier. The updated ranges will be used beginning with the disclosures 
covering 2003 lending data, scheduled to be published in summer 2004.
10. Aggregate Table 10--Disposition of Loan Applications, by Principal 
City versus Non-Principal City Property Location and Type of Loan
    Existing Aggregate Table 10 shows action taken on loan 
applications, by property location and by type of loan. The property 
location itemization consists of only two categories: Central

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city in the given MSA, and any other location in that MSA outside the 
central city. No Table 10 is produced for individual financial 
institutions.
    Changes that would be made to Aggregate Table 10 include adding a 
column for data on manufactured home loan applications and substituting 
``principal city'' for ``central city,'' to reflect terminology adopted 
by OMB.

B. New Tables and Series of Tables

    A number of new tables would be produced to reflect new data items 
that are being collected under revised Regulation C on loan pricing 
(the rate spread), HOEPA status, lien status, and preapproval requests. 
The new tables would also reflect manufactured home lending in more 
detail than is given in the revised existing tables.
1. Table 11 Series--Pricing Information for Conventional Loans on 1-to-
4 Family Owner-Occupied Dwellings
    Under revised Regulation C, institutions must report the rate 
spread between the APR on the loan and the yield on Treasury securities 
of comparable maturity for loans subject to the Truth in Lending Act 
(TILA), since these loans will have an APR for use in calculating the 
rate spread. Loans on 1-to-4 family owner-occupied homes are generally 
subject to TILA, and accordingly the new Table 11 series would focus on 
this category of loans. (Loans for owner-occupied manufactured homes 
are also subject to TILA, and are covered in Table 12, as discussed 
below.) The tables would focus on conventional loans, because concern 
about possible loan pricing problems has centered on conventional, 
rather than government-backed, lending. Loan pricing data on 
government-backed lending are available to the public on institutions' 
HMDA-LARs.
    The Table 11 series comprises Tables 11-1 through 11-6. Table 11-1 
covers conventional first-lien home purchase loans on 1-to-4 family 
owner-occupied dwellings. It would show, for a given reporting 
institution in each of the institution's MSAs, the number of such loans 
for which the institution did not report rate spread data because the 
difference between the APR on the loan and the yield on the applicable 
Treasury security was below the three percentage point reporting 
threshold for first-lien loans. It would also show the number of such 
loans for which the institution reported rate spread data. The table 
would then show the number of loans falling into various ranges of 
percentage points above the applicable Treasury yield, such as 3-3.99, 
4-4.99, and so on up to 8 percentage points or more above the Treasury 
yield. The table would also show, for loans on which the institution 
reported rate spread data, the mean and median percentage points above 
the Treasury yield.
    The data in Table 11-1 would be itemized by the race, ethnicity, 
income, and sex of the borrower, and by the racial/ethnic composition 
and the income of the census tract in which the property is located. 
The categories used for the borrower and census tract characteristics 
will be identical to those used in the other tables, as revised.
    Table 11-2 will show rate spread data on the same types of loans as 
Table 11-1, secured by subordinate liens. Tables 11-3 and 11-4 are 
parallel to Tables 11-1 and 11-2, except that Table 11-3 covers first-
lien refinancings and Table 11-4 covers subordinate-lien refinancings. 
Tables 11-5 and 11-6, likewise, reflect data on first-lien home 
improvement loans and subordinate-lien home improvement loans, 
respectively. There is no table showing rate spread data for unsecured 
home improvement loans; under revised Regulation C, institutions are 
not required to report the rate spread for unsecured home improvement 
loans.
    Tables 11-3 through 11-6 each include an additional column showing 
the number of HOEPA loans made by the institution in the particular 
MSA. (Under TILA, home purchase loans on 1-to-4 family owner-occupied 
dwellings are excluded from HOEPA coverage; thus, there is no 
comparable HOEPA column in Tables 11-1 or 11-2.)
    The ranges selected in the table formats for rate spread data are 
intended to focus on the most useful data. The highest range would be 8 
percentage points or more over the comparable Treasury yield for first-
lien loans, and 10 percentage points for subordinate-lien loans. It is 
expected that, for most lenders, the number of loans falling into this 
category would be few or none. Therefore, ranges beyond 8 or 10 
percentage points above the Treasury yield would appear to have little 
utility. In addition, data users will be able to derive data on ranges 
at higher rates from the publicly available HMDA-LAR data.
    One of the triggers for HOEPA coverage is an APR 8 or more 
percentage points over the comparable Treasury yield for first-lien 
loans, and 10 or more percentage points over the comparable Treasury 
yield for subordinate-lien loans. Thus, for the tables with a column 
showing the number of HOEPA loans, there could be some similarity 
between the data in that column and the data in the column showing 
number of loans with an APR of 8 or more (or 10 or more, for 
subordinate-lien loans) percentage points over the comparable Treasury 
yield. However, there are some differences between the two columns. 
First, the Treasury yield for HOEPA trigger purposes is the yield in 
the calendar month before the month in which the lender receives the 
loan application; the Treasury yield for HMDA rate spread purposes is 
the yield in the month before the date on which the interest rate on 
the loan is locked. Therefore, while the two yields may often be 
identical, they may not be in some cases. Second, a loan can be 
classified as a HOEPA loan even though it does not meet the APR 
trigger, if it meets the trigger for HOEPA coverage based on the loan's 
points and fees.
2. Table 12--Disposition of Applications and Pricing Information for 
Conventional Manufactured Home Purchase Loans, First Lien, Owner-
Occupied Dwellings, by Borrower or Census Tract Characteristics
    New Table 12 would focus on manufactured home lending and would 
show two types of information: Information on action taken on 
applications, and rate spread information for originated loans. The 
table would be limited to conventional first-lien home purchase loans 
on owner-occupied dwellings for three reasons. First, it is expected 
that the great majority of manufactured home loan applications fall 
into this category. Second, loans on non-owner-occupied properties are 
generally not subject to TILA and thus will not have an APR available 
for calculating rate spread. And third, with regard to the focus on 
conventional lending, the concern about loan pricing has focused on 
this area rather than on government-backed lending, as in the case of 
loans on 1-to-4 family dwellings discussed above.
    For both the action taken section and the rate spread section, 
Table 12 itemizes the data by the race, ethnicity, income, and sex of 
the applicant, and by the racial/ethnic composition and income of the 
census tract where the property is located. The categories used for the 
borrower and the census tract characteristics are identical to those 
used in the revised existing tables and in the new Table 11 series.
    Table 12's section on action taken bears some similarity to new 
Tables 4-7, 5-7, and 7-7, which also display action taken data relating 
to manufactured home lending, but there are significant differences. 
Tables 4-7, 5-7, and 7-7 show activity on all manufactured home lending 
(home purchase, home improvement, and refinancings; both conventional 
and

[[Page 15474]]

government-backed; both owner-occupied and non-owner-occupied; and both 
first-lien and subordinate-lien), while Table 12 is limited to 
conventional first-lien home purchase loans on owner-occupied 
manufactured homes.
    The rate spread section of Table 12 is similar to the Table 11 
series, except that the columns showing the numbers of loans with rate 
spreads falling into various ranges are omitted. Thus, the rate spread 
data in Table 12 include columns for the number of loans with no 
reported pricing data, the number of loans with such data reported, and 
the mean and median percentage points over the applicable Treasury 
yield for those loans with pricing data reported. The agencies believe 
that this information would be sufficient for analysis, because it 
appears that on average rates in manufactured housing lending may be 
higher than in other mortgage lending, such that most loans would have 
rate spreads significantly in excess of the thresholds. Again, as in 
other cases, the more detailed information can be derived from the 
publicly available HMDA-LAR data. Comment is solicited, however, on 
whether Table 12 should be modified to display more detailed rate 
spread data.
    Also, the rate spread section of Table 12 is limited to home 
purchase loans, while the Table 11 series also has tables covering 
refinancings and home improvement loans. As noted above, however, the 
majority of manufactured home loan applications may fall within the 
home purchase category. In addition, Summary Table B, discussed below, 
provides some information on rate spreads for refinancings and home 
improvement loans on manufactured housing.
3. Summary Table A Series--Disposition of Applications and Loan Sales 
by Loan Type
    The Summary Table A series would provide an overview of actions 
taken by an institution on loan applications with a detailed 
itemization by type of loan. Summary Table A-1 would show action taken 
on applications for loans on 1-to-4 family dwellings; Summary Table A-2 
would show the same data for applications on manufactured home loans; 
and Summary Table A-3 would show the same data for applications 
relating to multifamily housing, except that it would not contain data 
on preapproval requests; lending on multifamily housing would likely 
not generally involve preapproval requests as defined in Regulation C.
    The tables would itemize lending by (1) loan purpose (home 
purchase, refinancing, and home improvement); (2) lien status (first-
lien, subordinate-lien, and unsecured); (3) loan type (conventional, 
FHA (Federal Housing Administration), VA (Veterans Administration), and 
FSA/RHS (Farm Service Agency or Rural Housing Service)); and (4) action 
taken. The tables would not show itemization by applicant or census 
tract characteristics; tables in the 4, 5, and 7 series serve that 
purpose. Rather, these summary tables would detail at a glance the 
types of lending in which an institution is engaged.
    The summary tables would be produced in two versions for each 
reporting institution. One version would reflect activity for each MSA 
for which the institution reports data and the other would show the 
institution's total activity nationwide. Both versions would itemize 
data by type of action taken (such as loans originated, applications 
approved but not accepted, and applications denied). In addition, both 
versions would show the number of preapproval requests that resulted in 
loan originations and the number of loans sold by the institution.
    Only the nationwide version would show preapproval requests denied 
and preapproval requests approved but not accepted. Data on preapproval 
requests denied and preapproval requests approved but not accepted 
cannot be shown in the MSA version, because to be included in these 
tables a loan must have a property location, and property location is 
not reported on a preapproval request unless the request goes beyond 
the preapproval stage, for example, where it results in a loan 
origination.
4. Summary Table B--Loan Pricing Information for Conventional Loans by 
Incidence and Level
    Summary Table B would show rate spread and HOEPA status information 
for an institution as a whole, itemized in a manner similar to the 
Summary Table A series (by home purchase, refinancing, and home 
improvement; and by first-lien and subordinate-lien status). Summary 
Table B would be limited to conventional loans because concerns about 
loan pricing have focused primarily on this area. Summary Table B would 
not contain data on multifamily housing loans or on unsecured home 
improvement loans, because rate spread and HOEPA status data are not 
available for such loans.
    Like the A series, Summary Table B would be produced in two 
versions for each reporting institution, one version reflecting the 
activity of that institution for each MSA for which the institution 
reports data, and another version showing the institution's total 
activity nationwide.
    In some respects, Summary Table B would display data comparable to 
that shown in the Table 11 series and in Table 12. For example, Table 
11-1 shows rate spread data for conventional first-lien home purchase 
loans on owner-occupied 1-to-4 family dwellings; the first column in 
Summary Table B shows the same type of data. Table 11-2 relates to 
subordinate-lien loans, as does the second column in Summary Table B. 
There are differences, however. First, the tables in the Table 11 
series do not show the total number of loans for the institution, but 
instead provide itemizations by borrower and census tract 
characteristics. Summary Table B provides total loan numbers (in 
various categories of pricing information, such as no pricing reported, 
pricing reported, and so on), both at the MSA level and in total 
activity nationwide. In addition, the nationwide version of Summary 
Table B would include loans for which no property location was reported 
(for example, because the property is located outside the MSAs in which 
the institution has offices), while the Table 11 series does not 
include such loans. Thus, a data user could use Summary Table B to 
determine at a glance the overall level of an institution's loan 
pricing, detailed by loan type.
    While Summary Table B and Table 12 both focus partly or wholly on 
manufactured housing lending data, there are differences. First, 
Summary Table B shows total numbers of loans for an institution (in 
various categories of pricing information) both at the MSA level and 
nationwide, but does not include an itemization by borrower or census 
tract characteristics; Table 12 includes the itemization but not the 
totals. In addition, Table 12 provides data only on first-lien home 
purchase loans on manufactured housing, while Summary Table B also 
provides data on subordinate-lien home purchase loans, first- and 
subordinate-lien refinancings, and first- and subordinate-lien home 
improvement loans. Finally, Summary Table B shows data on HOEPA status 
for first- and subordinate-lien refinancings and for first- and 
subordinate-lien home improvement loans. No data for HOEPA status are 
shown for home purchase loans in either Table 12 or Summary Table B, 
because home purchase loans are excluded from HOEPA coverage under 
TILA.

III. Issues on Which Comment Is Solicited

    As discussed above, the Board proposes to revise the existing 
public

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disclosure tables; to eliminate the Table 6 series; and to add several 
new tables and series of tables. The Board solicits comment on any 
issues relating to the proposed revisions, deletions, and additions. In 
particular, should any of the existing tables, in addition to the Table 
6 series, be deleted (and if so, why)? Should the Table 6 series be 
retained? Should any of the proposed revisions to the existing tables 
not be made, or should they be made in a different manner (for example, 
to display more, less, or different detail)? Should additional 
revisions to the existing tables be made? With regard to the proposed 
new tables, are any of them unnecessary, or should any of them be 
adopted in a modified form? Are any additional new tables needed?
    The revised and new tables do not, of course, display mortgage 
lending information derived from the new data elements being reported 
in as great a level of detail as would be possible. Commenters are 
requested to bear in mind, however, that modified HMDA-LAR application-
by-application and loan-by-loan data for all reporting institutions are 
available to the public upon request, and that data users thus have the 
ability to prepare analyses of mortgage lending patterns, relating both 
to actions taken on applications and to pricing of originated loans, in 
any way they choose.

List of Subjects in 12 CFR Part 203

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

Text of Proposed Revisions

    For the reasons set forth in the preamble, the Board proposes to 
adopt revised formats for public disclosure of mortgage lending data 
under the Home Mortgage Disclosure Act, as set forth in the attachment 
to this document.

    By order of the Board of Governors of the Federal Reserve 
System, March 16, 2004.
Jennifer J. Johnson,
Secretary of the Board.
BILLING CODE 6210-01-P

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[FR Doc. 04-6316 Filed 3-24-04; 8:45 am]
BILLING CODE 6210-01-C