[Federal Register Volume 69, Number 247 (Monday, December 27, 2004)]
[Rules and Regulations]
[Pages 77139-77140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-28215]


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FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-1219]


Home Mortgage Disclosure

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 staff commentary is amended to increase 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 from $33 million to $34 
million reflects the increase of that index by 2.45 percent during the 
twelve-month period ending in November 2004. Thus, depository 
institutions with assets of $34 million or less as of December 31, 
2004, are exempt from data collection in 2005.

DATES: Effective January 1, 2005. This rule applies to all data 
collection in 2005.

FOR FURTHER INFORMATION CONTACT: John C. Wood or Kathleen C. Ryan, 
Counsels, or Dan S. Sokolov, Senior Attorney, Division of Consumer and 
Community Affairs, at (202) 452-3667; for users of Telecommunications 
Device for the Deaf (TDD) only, contact (202) 263-4869.

SUPPLEMENTARY INFORMATION: The Home Mortgage Disclosure Act (HMDA; 12 
U.S.C. 2801 et seq.) requires most mortgage lenders located in 
metropolitan areas to collect data about their housing-related lending 
activity. Annually, lenders must report that data to their federal 
supervisory agencies and make the data 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 (codified at 12 U.S.C. 2808(b)) 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 a one-time 
adjustment of the $10 million figure based on the percentage by which 
the Consumer Price Index for Urban Wage Earners and Clerical Workers 
(CPIW) for 1996 exceeded the CPIW for 1975, and provided for annual 
adjustments thereafter based on the annual percentage increase in the 
CPIW. The one-time adjustment increased the exemption threshold to $28 
million for 1997 data collection.
    Section 203.2(e)(1)(i) of Regulation C 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. Pursuant to this section, 
the Board raised the threshold to $29 million for 1998 data collection, 
raised it to $30 million for 1999 data collection, and kept it at that 
level for data collection in 2000. The Board raised the threshold to 
$31 million for data collection in 2001, to $32 million for data 
collection in 2002, kept the threshold at $32 million in 2003, and 
raised the threshold to $33 million for 2004.
    During the period ending November 2004, the CPIW increased by 2.45 
percent. As a result, the exemption threshold is raised to $34 million. 
Thus, depository institutions with assets of $34 million or less as of 
December 31, 2004, are exempt from data collection in 2005. An 
institution's exemption from collecting data in 2005 does not affect 
its responsibility to report the data it was required to collect in 
2004.
    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Board finds that notice and 
public comment are unnecessary. 5 U.S.C. 553(b)(3)(B). Comment 2(e)-2 
to section 203.2 of the regulation is amended to implement the increase 
in the exemption threshold. This amendment merely applies the formula 
established by Regulation C for determining adjustments to the 
exemption threshold. For these reasons, the Board has determined that 
publishing a notice of proposed rulemaking and providing opportunity 
for public comment are unnecessary. Therefore, the amendment is adopted 
in final form.

List of Subjects in 12 CFR Part 203

    Banks, Banking, Mortgages, Reporting and recordkeeping 
requirements.

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

PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)

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

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

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2. In Supplement I to part 203, under section 203.2--Definitions, under 
2(e) Financial Institution, paragraph 2. is revised.

SUPPLEMENT I TO PART 203--STAFF COMMENTARY

* * * * *

Section 203.2--Definitions

* * * * *

2(e) Financial Institution

* * * * *
    2. Adjustment of exemption threshold for depository institutions. 
For data collection in 2005, the asset-size

[[Page 77140]]

exemption threshold is $34 million. Depository institutions with assets 
at or below $34 million are exempt from collecting data for 2005.
* * * * *
    By order of the Board of Governors of the Federal Reserve System, 
acting through the Director of the Division of Consumer and Community 
Affairs under delegated authority, December 21, 2004.

Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 04-28215 Filed 12-23-04; 8:45 am]
BILLING CODE 6210-01-P