[Federal Register Volume 69, Number 243 (Monday, December 20, 2004)]
[Notices]
[Pages 76190-76296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27425]



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Part III





Federal Reserve System





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Home Mortgage Disclosure; Notice

  Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / 
Notices  

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FEDERAL RESERVE SYSTEM

[Regulation C; Docket No. R-1186]


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Publication of revised formats for public disclosure of lending 
data.

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SUMMARY: The Board is publishing 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. These revisions to the formats for public disclosures do not 
affect requirements applicable to financial institutions subject to 
Regulation C; the new requirements applicable to financial institutions 
have already taken effect (on January 1, 2004). 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 the summer or fall of 
2005.

DATES: The new disclosure formats set forth in this notice are expected 
to be used for the first time in summer or fall 2005.

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 mortgage and home improvement 
loans. 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 
or fall 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 are being revised. The Board and the 
other regulatory agencies requested public comment on proposed formats 
for the revised disclosure statements (69 FR 15469, March 25, 2004). 
The proposed changes included revisions to some of the existing 
disclosure tables, deletion of one set of existing tables, and the 
addition of new tables. Approximately 30 comments were received. In 
response to the comments, some changes to the proposed disclosure table 
formats have been made; the Board is now publishing the table formats 
in final form.
    The 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) will be deleted. The new tables reflect new 
data on rate spread, HOEPA status, lien status, preapproval requests, 
and manufactured housing.

II. Explanation of 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 changes that are being made to the basic individual 
institution tables (1 through 8-6) are also being made to the aggregate 
and supplemental versions. For example, Table 1, Aggregate Table 1, and 
Supplemental Table 1 are 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 state, county, and 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).

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    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 change proposed for Table 1 (and Aggregate Table 1 and 
Supplemental Table 1) was 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. In the 
proposal, the revised table continued 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 was changed to reflect this fact. The final 
changes to Table 1 are identical to the proposal.
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 state, county, and 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 proposed for Table 2 (and Aggregate Table 2 and 
Supplemental Table 2) were the same as for 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. The final changes to Table 
2 are identical to the proposal.
3. Table 3 Series--Loans Sold, by Type of Purchaser
    Existing Table 3 shows loans sold by the institution, detailed by 
the race or national origin, sex, and income of the borrower; by the 
race/national origin 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. Existing Table 3 is renumbered Table 3-1; new Table 3-2 is 
added, as discussed later.
    As proposed, the types of purchasers shown in Table 3-1 are 
conformed to the revised categories for type of purchaser used under 
the amended Regulation C. The changes include 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.
    Also as proposed, Table 3-1 reflects 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 Table 3-1 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'' is added. Where the applicant chooses white and 
one minority race category (for example, Asian) the loan will be 
reflected in the data for the minority race (Asian, in this example). 
Ethnicity will 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)'' applies 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 of a minority race and the 
other is white.
    In the proposal, white was divided into ``White--Hispanic or 
Latino'' and ``White--Not Hispanic or Latino,'' to provide better data 
about lending to minorities 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 appeared to be 
substantially equivalent to ``White'' in the existing disclosures). For 
similar reasons, the proposed revised Table 3 contained a data line 
entitled ``Total Minority,'' consisting of data on situations where the 
applicant is of a minority race, of Hispanic or Latino origin, or both. 
In final Table 3-1, in order to keep the race and ethnicity categories 
more distinct, the white race category is not divided, and instead the 
white non-Hispanic category is shown in a new section entitled 
``Minority Status,'' which is displayed separately from both the race 
and the ethnicity categories. ``Minority Status'' also includes a 
category entitled ``Others, Including Hispanic,'' which is the same as 
the ``Total Minority'' category in the proposal.
    As proposed, the section of Table 3 detailing loans sold by sex of 
the borrower--users--is being deleted. The information can be derived 
from the institution's modified HMDA-LAR data, which are publicly 
available.
    The section of Table 3-1 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 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 therefore will be revised to show the data.
    In addition, 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. In the 
proposal, comment was solicited on whether the national aggregate 
tables should include or exclude the Puerto Rico census tract data; the 
issue was whether inclusion of the Puerto Rico census tract data would 
make trend analysis at the national level more difficult. Most 
commenters addressing this issue stated that the advantages of 
inclusion of the Puerto Rico data `` more complete data `` would 
outweigh the disadvantages. The final national aggregate tables, 
accordingly, will include the Puerto Rico data.

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    In response to comments, new Table 3-2 is being added to show loan 
pricing data for loans sold. Table 3-2 shows rate spread (between the 
APR on the loan and the yield on Treasury securities of comparable 
maturity) and HOEPA status (whether the loan is subject to the Home 
Ownership and Equity Protection Act) for loans sold, by type of 
purchaser of the loan and by lien status. The rate spread is shown 
using the same categories (no reported pricing data; reported pricing 
data; ranges of rate spreads above the comparable Treasury yield; and 
mean and median rate spread) as in the new Table 11 and Table 12 
series, discussed later.
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 are substantially 
the same as proposed, and parallel changes to Table 3 with regard to 
the race and ethnicity categories, as described above. In the final 
version of the Table 4 series, the same adjustments as in Table 3 are 
made to the proposed version (showing white as a single category, 
rather than divided into ``White--Hispanic or Latino'' and ``White--Not 
Hispanic or Latino,'' and instead showing the white non-Hispanic 
category under ``Minority Status,'' which also includes ``Others, 
Including Hispanic''). Within each of these categories, itemized data 
are also shown for Male, Female, and Joint (applying where one joint 
applicant is male and the other is female).
    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 substantially unchanged. ``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, to make clear that these 
tables 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 is being added, entitled ``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 are the same as in the other tables in the 
Table 4 series, as revised, except that the data relate only 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.
    One additional change that was not proposed but responds to 
comments is the addition of a ``Total'' line at the end of each table 
in the Table 4 series, including new Table 4-7. The figures in each 
column of this line will show the total of all applications or loans, 
for the particular institution and MSA covered by the table, for the 
category represented by the column. For example, the total line for the 
first column in Table 4-7 will show total applications received for 
manufactured housing loans by that institution in that MSA.
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 income of 
applicants and further itemized by race/national origin 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 final changes are substantially the same as proposed, and 
mirror those made to the Table 4 series. The racial categories are 
changed, ethnicity placed in a separate section of data, and the table 
titles conformed, in the same manner as in the Table 4 series. Also 
paralleling the Table 4 series, a new Table 5-7 is added to show data 
for manufactured home loan applications, and ``Total'' lines are added 
at the end of each table.
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 proposal was to eliminate the Table 6 series as redundant, on 
the basis that the Table 6 series is used very infrequently. Most 
commenters addressing this issue supported the proposal, and 
accordingly the Table 6 series will be eliminated. Information on 
lending patterns by income and by 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 housing loan applications and the 
inclusion of data from census tracts in Puerto Rico, as proposed, and 
the addition of a ``Total'' line as in the Table 4 and Table 5 series.
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 
or national origin, 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 Tables 
3, 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 housing loan applications.

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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 homes 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.
    As proposed, the 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 is 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, is deleted; and 
the range 1950-1959 in the existing table is changed to 1959 or 
earlier. (The updated ranges of median ages have already been put into 
use, for the disclosures covering 2003 lending data.)
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 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.
    As proposed, the changes 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 will be produced to reflect new data items 
that are being collected under revised Regulation C on loan pricing 
(rate spread and HOEPA status), lien status, and preapproval requests. 
The new tables will also reflect manufactured home lending in more 
detail than is given in the revised existing tables.
1. Table 11 Series--Pricing Information for Loans on 1-to-4 Family 
Owner-Occupied Dwellings
    The new Table 11 series provides loan pricing information (rate 
spread and HOEPA status). 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 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, as proposed, focuses on this category of loans. (Loans on 
owner-occupied manufactured homes are also generally subject to TILA, 
and are covered in the Table 12 series, as discussed below.)
    In the proposal, the Table 11 series tables focused on conventional 
loans, on the basis that concern about loan pricing problems has 
centered on conventional, rather than government-backed, lending. Many 
commenters, however, urged that comparable tables be produced to show 
loan pricing information for government-backed lending. Accordingly, 
the final Table 11 series includes tables relating to Federal Housing 
Administration (FHA) and Veterans Administration (VA) loans.
    In the proposal, the Table 11 series comprised Tables 11-1 through 
11-6; the final version comprises Tables 11-1 through 11-10. The new 
final tables that have been added are Table 11-1 for FHA first-lien 
home purchase loans, Table 11-2 for VA first-lien home purchase loans, 
Table 11-5 for FHA first-lien refinancings, and Table 11-6 for VA 
first-lien refinancings. Proposed Tables 11-1, 11-2, 11-3, 11-4, 11-5, 
and 11-6 (covering conventional home purchase, refinancing, and home 
improvement loans) have been renumbered as Tables 11-3, 11-4, 11-7, 11-
8, 11-9, and 11-10, respectively.
    Each of the tables shows, as in the proposal, 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 or five percentage point 
reporting threshold for first-lien or subordinate-lien loans, 
respectively, or because no APR was available to calculate the rate 
spread. Each table also shows the number of such loans for which the 
institution did report rate spread data. The table then shows 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 for first-lien 
loans, and 5-5.99, 6-6.99, and so on up to 10 percentage points or more 
above Treasury for subordinate-lien loans. Each table also shows, for 
loans on which the institution reported rate spread data, the mean and 
median percentage points above the Treasury yield.
    The final tables differ from the proposal in that they show rate 
spread data in terms of not only number of loans, but also dollar 
amount of loans, for consistency with other tables. Also, the banner 
heading above the columns showing ranges of rate spreads and mean and 
median spreads has been changed to make clear that the data shown 
include only loans with APRs above the applicable thresholds (3 or 5 
percentage points over the comparable Treasury yields). Some commenters 
expressed concern that, without such clarification, some users of the 
data might believe that the mean and median rate spreads were 
calculated based on all loans made by the institution, including those 
with APRs below the applicable thresholds. In addition, a footnote has 
been added to the ``no reported pricing data'' column, to clarify the 
content of the data in the column.
    As mentioned above, a loan will be reflected in the ``no reported 
pricing data'' column because the difference between the APR on the 
loan and the yield on the applicable Treasury security was below the 
reporting threshold or because no APR was available to calculate the 
rate spread. No APR will be available when the loan (for example, a 
loan for business purposes) was not subject to Regulation Z (Truth in 
Lending) and therefore the lender was not required to calculate and 
disclose an APR. Purchased loans and applications not resulting in loan 
originations also will not have APRs; however, these types of 
transactions will not be reflected in the ``no reported pricing data'' 
column, because the Table 11 series covers only loan originations. 
Also, for the 2004 data year, loans with application dates on or before 
December 31, 2003, will be excluded from the Table 11 series, because 
under the special rules for such loans, the rate spread is not required 
to be reported if the rate was set on or before that date. (These loans 
will also be excluded, for the 2004 data year, from all other tables 
containing loan pricing data, i.e., Tables 3-2 and 12-2 and Summary 
Table B.)
    As in the proposal, the data in the Table 11 series are 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 same changes to the race and ethnicity 
categories have been made in the Table 11 series as in the final

[[Page 76194]]

Tables 3, 4, 5, and 8 series, discussed above.
    As in the proposal, the tables covering refinancings and home 
improvement loans (Tables 11-5 through 11-10 in the final version) each 
include an additional column showing the number (and in the final 
version, dollar amount) 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 final Tables 11-1 through 11-4, 
covering home purchase loans.) 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 or dollar amount of HOEPA 
loans, there could be some similarity between the data in that column 
and the data in the column showing number or dollar amount 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 as of the 15th day of the 
calendar month preceding the month in which the lender received the 
loan application; the Treasury yield for HMDA rate spread purposes is 
the yield as of the 15th day of a given month, if the interest rate on 
the loan was set on or after that day through the 14th day of the 
following month. 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 another trigger for HOEPA coverage, based on the 
loan's points and fees.
2. Table 12 Series--Disposition of Applications and Pricing Information 
for Conventional Manufactured Home Purchase Loans, First Lien, Owner-
Occupied Dwelling, by Borrower or Census Tract Characteristics
    In the proposal, new Table 12 focused on manufactured home lending 
and showed two types of information: action taken on applications, and 
rate spread data for originated loans. In the final version, there are 
two tables, Table 12-1 which provides data on action taken, and Table 
12-2 which provides rate spread data in more detail than proposed. The 
Table 12 series is limited, as proposed, to conventional first-lien 
home purchase loans on owner-occupied manufactured homes because the 
majority of manufactured home loan applications likely fall into this 
category. In addition, loans on non-owner-occupied properties are 
generally not subject to TILA and thus will not have an APR available 
for calculating rate spread.
    In final Table 12-1, the action taken data are itemized 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 applicant and census tract 
characteristics are identical to those used in the revised existing 
tables and in the new Table 11 series. Proposed Table 12 showed the 
data in terms of number of applications or loans; final Table 12-1 
displays the data in terms of both numbers and dollar amounts, for 
consistency with other tables.
    Table 12-1 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 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.
    In the proposal, the format of the rate spread section of Table 12 
was similar to the Table 11 series, except that the columns showing the 
numbers of loans with rate spreads falling into various ranges were 
omitted. Thus, the proposed rate spread section of Table 12 included 
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. In response to comment, final Table 12-2 
includes columns covering various ranges of rate spreads. The ranges 
are the same as in the tables in the 11 series relating to first-lien 
loans, except that instead of the highest range being 8 or more 
percentage points over the comparable Treasury yield, a range of 8-9.99 
is added, and the highest range accordingly is 10 or more.
    Like final Table 12-1, final Table 12-2 displays the data in terms 
of both numbers and dollar amounts, for consistency with other tables. 
Also, as in the Table 11 series, the banner heading above the columns 
showing ranges of rate spreads and mean and median spreads has been 
changed to make clear that the data shown include only loans with APRs 
above the applicable threshold, and a footnote has been added to the 
``no reported pricing data'' column to clarify the content of the data 
in the column. (The content of the data in this column parallels that 
of the ``no reported pricing data'' column in the Table 11 series, 
discussed above.)
    Although Table 12-2 on manufactured home loans is limited to home 
purchase loans, while the Table 11 series on 1-to-4 family home loans 
also has tables covering refinancings and home improvement loans, 
Summary Table B, discussed later, 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 and Disposition of Preapprovals by Borrower or Census 
Tract Characteristics
    The new Summary Table A series provides an overview of actions 
taken by an institution on loan applications, including actions taken 
on preapproval requests, with detailed itemizations by type of loan. As 
in the proposal, Summary Table A-1 shows action taken on applications 
for loans on 1-to-4 family dwellings; Summary Table A-2 shows the same 
data for applications on manufactured home loans; and Summary Table A-3 
shows the same data for applications relating to multifamily housing, 
except that it does not contain data on preapproval requests; lending 
on multifamily housing likely does not generally involve preapproval 
requests as defined in Regulation C.
    The tables 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, VA, 
and FSA/RHS (Farm Service Agency or Rural Housing Service)); and (4) 
action taken. Summary Tables A-1, A-2, and A-3 do not show itemization 
by applicant or census tract characteristics; tables in the 4, 5, and 7 
series serve that purpose. Rather, these summary tables detail at a 
glance the types of lending in which an institution is engaged. (New 
Summary Table A-4, added in the final version and focusing on 
preapprovals, does contain an itemization by applicant and census tract 
characteristics. See below for further discussion of Summary Table A-
4.)

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    The summary tables will be produced in two versions for each 
reporting institution. One version reflects activity for each MSA for 
which the institution reports data, and the other shows the 
institution's total activity nationwide. Both versions itemize data by 
type of action taken (such as loans originated, applications approved 
but not accepted, and applications denied). In addition, both versions 
show the number of preapproval requests that resulted in loan 
originations and the number of originated loans sold by the 
institution.
    Only the nationwide version shows 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 the MSA-
based tables, an application 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.
    Summary Tables A-1, A-2, and A-3 are unchanged from the proposal, 
except that a footnote has been added to clarify that reporting of 
preapproval requests approved but not accepted is optional. Some 
commenters were concerned that the data might be misleading to data 
users who did not realize the optional nature of reporting of this 
item.
    Summary Table A-4 was not in the proposal, but has been added in 
the final version to address comments suggesting that information be 
shown on action taken on preapproval requests, itemized by applicant 
and census tract characteristics. The table covers conventional first-
lien home purchase loans on 1-to-4 family dwellings, and shows 
preapprovals resulting in originations, preapprovals approved but not 
accepted, and preapprovals denied, itemized by the race, ethnicity, 
income, and sex of the applicant and by the racial/ethnic composition 
and income of the census tract in which the property is located. The 
categories used for the applicant and census tract characteristics are 
identical to those used in the revised existing tables and in the new 
Tables 11 and 12 series.
    As in the case of Summary Tables A-1, A-2, and A-3, Summary Table 
A-4 will be produced in two versions for each reporting institution, 
one version reflecting activity for each MSA for which the institution 
reports data and the other showing the institution's total activity 
nationwide. However, only the nationwide version shows preapproval 
requests denied and preapproval requests approved but not accepted, for 
the same reason as discussed above with regard to the other summary 
tables.
4. Summary Table B--Loan Pricing Information for Conventional Loans by 
Incidence and Level
    New Summary Table B shows 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 covers conventional loans on 1-to-4 family owner-occupied 
dwellings and on manufactured housing owner-occupied dwellings (shown 
in separate sections of the table). Summary Table B does 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 Summary Table A series, Summary Table B will 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.
    Summary Table B is unchanged from the proposed version, except that 
a footnote has been added to the ``no pricing reported'' data and 
explanatory text has been added to the mean and median rate spread 
data, in both cases to clarify the content of the data, as has been 
done in other tables containing loan pricing data. (The content of the 
``no pricing reported'' data parallels that of the ``no reported 
pricing data'' column in the Table 11 series, discussed above.)
    Summary Table B shows data that in some respects are comparable to 
data shown in the Tables 11 and 12 series. Both the Table 11 series and 
the first section of Summary Table B display loan pricing information 
on 1-to-4 family dwellings. For example, Table 11-3 shows rate spread 
data for conventional first-lien home purchase loans on owner-occupied 
1-to-4 family dwellings; the first column of the first section in 
Summary Table B shows the same type of data. Table 11-4 provides rate 
spread data on conventional subordinate-lien home purchase loans on 
owner-occupied 1-to-4 family dwellings, as does the second column of 
the first section 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, but no itemization by borrower 
and census tract characteristics. In addition, the nationwide version 
of Summary Table B includes 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.
    The second section of Summary Table B and Table 12-2 both provide 
loan pricing data for manufactured housing, but again, 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 12-2 includes the 
itemization but not the totals. In addition, Table 12-2 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, as well as HOEPA status for 
the refinancings and home improvement loans.

Text of Proposed Revisions

    For the reasons set forth in the preamble, the Board adopts 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, December 10, 2004.
Jennifer J. Johnson,
Secretary of the Board.
BILLING CODE 6210-01-P

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[FR Doc. 04-27425 Filed 12-17-04; 8:45 am]
BILLING CODE 6210-01-C