[Federal Register Volume 83, Number 167 (Tuesday, August 28, 2018)]
[Notices]
[Pages 43868-43870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18542]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, with revision, 
the Reporting, Recordkeeping, and Disclosure Requirements Associated 
with the Home Mortgage Disclosure Act (HMDA) and Loan/Application 
Register (LAR) required by Regulation C (FR HMDA LAR, OMB No. 7100-
0247).

DATES: Comments must be submitted on or before October 29, 2018.

ADDRESSES: You may submit comments, identified by FR HMDA LAR, by any 
of the following methods:
     Agency website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified 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 form in Room 
3515, 1801 K Street NW (between 18th and 19th Streets NW), Washington, 
DC 20006 between 9:00 a.m. and 5:00 p.m. on weekdays. For security 
reasons, the Board requires that visitors make an appointment to 
inspect comments. You may do so by calling (202) 452-3684. Upon 
arrival, visitors will be required to present valid government-issued 
photo identification and to submit to security screening in order to 
inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory 
Affairs, Office of Management and Budget, New Executive Office 
Building, Room 10235, 725 17th Street NW, Washington, DC 20503, or by 
fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Board's public website at: http://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears below.
    Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of 
the Chief Data Officer, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202) 452-3829. Telecommunications Device 
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors 
of the Federal Reserve System, Washington, DC 20551.

SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management 
and

[[Page 43869]]

Budget (OMB) delegated to the Board authority under the Paperwork 
Reduction Act (PRA) to approve and assign OMB control numbers to 
collection of information requests and requirements conducted or 
sponsored by the Board. In exercising this delegated authority, the 
Board is directed to take every reasonable step to solicit comment. In 
determining whether to approve a collection of information, the Board 
will consider all comments received from the public and other agencies.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal prior to giving final approval.

Proposal To Approve Under OMB Delegated Authority the Extension for 
Three Years, With Revision, of the Following Report

    Report title: Reporting, Recordkeeping, and Disclosure Requirements 
Associated with the Home Mortgage Disclosure Act (HMDA) and Loan/
Application Register (LAR) required by Regulation C.
    Agency form number: FR HMDA LAR.
    OMB control number: 7100-0247.
    Frequency: Annually and quarterly.
    Respondents: State member banks (SMBs), their subsidiaries, 
subsidiaries of bank holding companies, U.S. branches and agencies of 
foreign banks (other than federal branches, federal agencies, and 
insured state branches of foreign banks), commercial lending companies 
owned or controlled by foreign banks, and organizations operating under 
section 25 or 25A of the Federal Reserve Act.
    Estimated number of respondents: Update policies, procedures, and 
systems (one-time), 505 respondents; Reporting--Tier 1 (annual 
reporter), 2 respondents; Tier 1 (quarterly reporter), 1 respondent; 
Tier 2, 148 respondents; Tier 2 (Crapo), 300 respondents; and Tier 3 
(Crapo), 54 respondents; Recordkeeping--Tier 1 (annual reporter), 2 
respondents; Tier 1 (quarterly reporter), 1 respondent; Tier 2, 448 
respondents; and Tier 3, 54 respondents; and Disclosure--Tier 1 (annual 
reporter), 2 respondents; and Tier 1 (quarterly reporter), 1 
respondent.
    Estimated average hours per response: Update policies, procedures, 
and systems (one-time), 176 hours; Reporting--Tier 1 (annual reporter), 
5,969 hours; Tier 1 (quarterly reporter), 6,903 hours; Tier 2, 1,232 
hours; Tier 2 (Crapo), 986 hours; and Tier 3 (Crapo), 64 hours; 
Recordkeeping--Tier 1 (annual reporter), 4,130 hours; Tier 1 (quarterly 
reporter), 4,130 hours; Tier 2, 83 hours; and Tier 3, 27 hours; and 
Disclosure--Tier 1 (annual reporter), 5 hours; and Tier 1 (quarterly 
reporter), 5 hours.
    Estimated annual burden hours: Update policies, procedures, and 
systems (one-time), 88,880 hours; Reporting--Tier 1 (annual reporter), 
11,938 hours; Tier 1 (quarterly reporter), 27,612 hours; Tier 2, 
182,336 hours; Tier 2: Crapo, 295,800 hours; and Tier 3: Crapo, 3,456 
hours; Recordkeeping--Tier 1 (annual reporter), 8,260 hours; Tier 1 
(quarterly reporter), 16,520 hours; Tier 2, 37,184 hours; and Tier 3, 
1,458 hours; and Disclosure--Tier 1 (annual reporter), 10 hours; and 
Tier 1 (quarterly reporter), 20 hours.
    General description of report: HMDA was enacted in 1975 and is 
implemented by Regulation C. Generally, HMDA requires certain 
depository and non-depository institutions that make certain mortgage 
loans to collect, report, and disclose data about originations and 
purchases of mortgage loans, as well as loan applications that do not 
result in originations (for example, applications that are denied or 
withdrawn). HMDA was enacted to provide regulators and the public with 
loan data that can be used to: (1) Help determine whether financial 
institutions are serving the housing needs of their communities, (2) 
assist public officials in distributing public-sector investments so as 
to attract private investment to areas where it is needed, and (3) 
assist in identifying possible discriminatory lending patterns and 
enforcing anti-discrimination statutes.\1\ Supervisory agencies, state 
and local public officials, and members of the public use the data to 
aid in the enforcement of the Community Reinvestment Act, the Equal 
Credit Opportunity Act, and the Fair Housing Act and to aid in 
identifying areas for residential redevelopment and rehabilitation.
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    \1\ 12 CFR 1003.1(b).
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    Proposed revisions: Consistent with the Bureau of Consumer 
Financial Protection's (Bureau) final rules amending Regulation C, 
effective January 1, 2018, as well as recent statutory amendments to 
HMDA that were enacted on May 24, 2018,\2\ the Board proposes to revise 
the FR HMDA-LAR by expanding the data reported and by modifying the 
types of institutions required to report and the types of loans 
required to be reported. Beginning January 1, 2018, an institution that 
is otherwise not eligible for a partial exemption under section 104(a) 
of the Economic Growth, Regulatory Relief, and Consumer Protection Act 
(EGRRCPA), as discussed further below, is required to collect and 
report all required data points required under HMDA if it either 
originates 25 or more \3\ closed-end mortgage loans or 500 or more 
open-end lines of credit \4\ secured by a dwelling in each of the two 
preceding years, in addition to meeting other applicable coverage 
criteria.\5\ For these institutions, the final rules standardize the 
loan volume threshold used to determine coverage of both depository and 
non-depository institutions. An institution will only

[[Page 43870]]

report a covered loan if it has met the loan origination threshold for 
that loan category (open-end or closed-end).
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    \2\ On May 24, 2018, the President signed into law the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). In 
relevant part, section 104(a) of EGRRCPA amends HMDA to exempt 
certain insured depository institutions and insured credit unions 
from collecting and reporting those data fields that were required 
by HMDA sections 304(b)(5) and (6), as implemented by the Bureau's 
final rules.
    \3\ Small depository institutions that originated fewer than 25 
closed-end mortgage loans in either 2015 or 2016 ceased HMDA data 
collection on January 1, 2017.
    \4\ Under the 2015 final rules, financial institutions would 
have been required to report home-equity lines of credit if they 
made 100 or more such loans in each of the last two years. On August 
24, 2017, the Bureau amended the final rules to increase the 
institutional coverage and loan threshold from 100 to 500 or more 
loans through calendar years 2018 and 2019. See 82 FR 43088 (Sept. 
13, 2017). This temporary increase in the threshold will provide 
time for the Bureau to consider whether to initiate another 
rulemaking to address the appropriate level for the threshold for 
data collected beginning January 1, 2020.
    \5\ Asset size and geographic location coverage tests also 
apply. See 12 CFR FR 1003.2(g).
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    The final rules generally will require covered institutions to 
collect and report any mortgage loan secured by a dwelling, including 
open-end lines of credit, regardless of the loan's purpose. However, 
the final rules exclude unsecured home-improvement loans (which 
historically were required to be reported), dwelling-secured loans that 
are made principally for a commercial or business purpose, 
agricultural-purpose loans, and other specifically excluded loans.\6\
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    \6\ 12 CFR 1003.2(e).
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    The final rules also will require collection of additional data 
points. For covered institutions that are otherwise not eligible for 
the partial exemption under section 104(a) of EGRRCPA, as discussed 
further below, these additional data points will be reported in 2019.
    These new fields include

 additional information about the applicant or borrower, such 
as age and credit score
 information about the loan pricing, such as the borrower's 
total cost to obtain a mortgage, temporary introductory rates, and 
borrower-paid origination charges
 information about loan features, such as the loan term, 
prepayment penalties, or non-amortizing features (such as interest only 
or balloon payments)
 additional information about property securing the loan, such 
as property value and property type

    In addition, the Bureau's final rules amend several existing 
requirements, including the requirements for collection and reporting 
of information regarding an applicant's or borrower's ethnicity, race 
and sex.\7\
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    \7\ For the complete list of data points, see 12 CFR 1003.4.
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    Effective May 24, 2018, an institution that is eligible for the 
partial exemption under section 104(a) of EGRRCPA will only need to 
report a subset of the data points required under HMDA if it originates 
fewer than 500 closed-end mortgage loans in each of the two preceding 
calendar years.\8\ Consistent with section 104(a) of EGRRCPA and the 
Bureau's recent statement addressing the applicability of this 
statutory amendment to HMDA,\9\ the Board estimates that institutions 
eligible for the partial exemption will report approximately half the 
data points currently required by the Bureau's final rules on the loans 
described above.\10\
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    \8\ Section 104(a) of EGRRCPA also provides a partial exemption 
to the data collection and reporting requirements under HMDA for 
institutions that originate fewer than 500 open-end lines of credit 
in each of the two preceding calendar years and otherwise meet the 
applicable performance evaluation rating standards under CRA. 
However, institutions eligible for this partial exemption are 
already completely exempt from all data collection and reporting 
requirements under the temporary exemption provided by the Bureau's 
final rules until January 1, 2020.
    \9\ See Bureau Statement, which provides that for loans subject 
to the partial exemption, ``the requirements of [HMDA section 
304(b)(5) and (6)] shall not apply . . . [therefore,] institutions 
are exempt from the collection, recording, and reporting 
requirements for some, but not all, of the data points specified in 
current Regulation C.''
    \10\ Section 104(a) of EGRRCPA does not define the terms 
``closed-end loan'' or ``open-end line of credit.'' However, for 
purposes of estimating burden, the Board is making the assumption 
that these terms will be used consistent with how they are currently 
defined in Regulation C. See 12 CFR 1002.2(d) and (o), which defines 
the term ``closed-end loan'' and ``open-end line of credit,'' 
respectively. Further, for purposes of estimating burden, the Board 
is making the assumption that the loan volume thresholds for closed-
end loans will be determined consistent with how such loan 
thresholds are currently used under Regulation C to determine if a 
transaction must be reported. See 12 CFR 1003.3(c)(11) and (12), 
which provides how to determine the loan threshold volume for 
closed-end loan reporters and open-end line of credit reporters, 
respectively.
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    The Bureau will collect the HMDA/LAR data on behalf of the 
applicable Federal supervisory agency, and the data will be combined 
and aggregated for each Metropolitan Statistical Area (MSA). Certain 
aggregated data will continue to be publicly available, though the 
Bureau has yet to determine what the information collected in the new 
data fields will be disclosed once the final rules are fully effective.
    Legal authorization and confidentiality: The FR HMDA-LAR is 
authorized pursuant to section 304(j) of HMDA (12 U.S.C. 2803(j)), 
which requires that the Bureau prescribe by regulation the form of loan 
application register information that must be reported by covered 
financial institutions. Section 1003.5 of Regulation C implements this 
statutory provision, and requires covered financial institutions to 
submit reports to their appropriate federal agency. Section 
304(h)(2)(A) of HMDA (12 U.S.C. 2803(h)(2)(A)) designates the Board as 
the appropriate agency with respect to the entities described above. 
The FR HMDA-LAR is mandatory. HMDA requires the information collected 
on the FR HMDA-LAR to be made available to the general public in the 
form proscribed by the Bureau. The Bureau is authorized to redact or 
modify the scope of the information before it is publicly disclosed to 
protect the privacy of loan applicants and to protect depository 
institutions from liability under any federal or state privacy law (12 
U.S.C. 2803(j)(2)(B)). The redacted information may be kept 
confidential under exemption 6 of the Freedom and Information Act, 
which protects from release information that, if disclosed, would 
``constitute a clearly unwarranted invasion of personal privacy'' (5 
U.S.C. 552(b)(6)).
    Consultation outside the agency: The Board consulted with Bureau 
staff regarding the estimated burden of this information collection.

    Board of Governors of the Federal Reserve System, August 22, 
2018.
Ann Misback,
Secretary of the Board.
[FR Doc. 2018-18542 Filed 8-27-18; 8:45 am]
 BILLING CODE 6210-01-P