Title 12--Banks and Banking CHAPTER II--FEDERAL RESERVE SYSTEM PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C) |
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
(a) Authority. This regulation is issued by the Board of Governors
of the Federal Reserve System (``Board'') pursuant to the Home Mortgage
Disclosure Act (12 U.S.C. 2801 et seq.), as amended. The information-
collection requirements have been approved by the U.S. Office of
Management and Budget under 44 U.S.C. 3501 et seq. and have been
assigned OMB Numbers 1557-0159, 3064-0046, 1550-0021, and 7100-0247 for
institutions reporting data to the
[[Page 71]]
Office of the Comptroller of the Currency, the Federal Deposit Insurance
Corporation, the Office of Thrift Supervision, and the Federal Reserve
System, respectively; numbers for the National Credit Union
Administration and the Department of Housing and Urban Development are
pending.
(b) Purpose. (1) This regulation implements the Home Mortgage
Disclosure Act, which is intended to provide the public with loan data
that can be used:
(i) To help determine whether financial institutions are serving the
housing needs of their communities;
(ii) To assist public officials in distributing public-sector
investments so as to attract private investment to areas where it is
needed; and
(iii) To assist in identifying possible discriminatory lending
patterns and enforcing antidiscrimination statutes.
(2) Neither the act nor this regulation is intended to encourage
unsound lending practices or the allocation of credit.
(c) Scope. This regulation applies to certain financial
institutions, including banks, saving associations, credit unions, and
other mortgage lending institutions, as defined in Sec. 203.2(e). It
requires an institution to report data to its supervisory agency about
home purchase and home improvement loans it originates or purchases, or
for which it receives applications; and to disclose certain data to the
public.
(d) Loan aggregation and central data depositories. Using the loan
data made available by financial institutions, the Federal Financial
Institutions Examination Council will prepare disclosure statements and
will produce various reports for individual institutions for each
metropolitan statistical area (MSA), showing lending patterns by
location, age of housing stock, income level, sex, and racial
characteristics. The disclosure statements and reports will be available
to the public at central data depositories located in each MSA. A
listing of central data depositories can be obtained from the Federal
Financial Institutions Examination Council, Washington, DC 20006.
[Reg. C, 54 FR 51362, Dec. 15, 1989, as amended at 63 FR 52142, Sept.
30, 1998]
|
||||||||||||||||||||||||||||
In this regulation:
(a) Act means the Home Mortgage Disclosure Act (12 U.S.C. 2801 et
seq.), as amended.
(b) Application means an oral or written request for a home purchase
or home improvement loan that is made in accordance with procedures
established by a financial institution for the type of credit requested.
(c) Branch office means: (1) Any office of a bank, savings
association, or credit union that is approved as a branch by a federal
or state supervisory agency, but excludes free-standing electronic
terminals such as automated teller machines;
(2) Any office of a mortgage lending institution (other than a bank,
savings association, or credit union) that takes applications from the
public for home purchase or home improvement loans. A mortgage lending
institution is also deemed to have a branch office in an MSA if, in the
preceding calendar year, it received applications for, originated, or
purchased five or more home purchase or home improvement loans on
property located in that MSA.
(d) Dwelling means a residential structure (whether or not it is
attached to real property) located in a state of the United States of
America, the District of Columbia, or the Commonwealth of Puerto Rico.
The term includes an individual condominium unit, cooperative unit, or
mobile or manufactured home.
(e) Financial institution means:
(1) A bank, savings association, or credit union that originated in
the preceding calendar year a home purchase loan (other than temporary
financing such as a construction loan), including a refinancing of a
home purchase loan, secured by a first lien on a one- to four-family
dwelling if:
(i) The institution is federally insured or regulated; or
(ii) The loan is insured, guaranteed, or supplemented by any federal
agency; or
(iii) The institution intended to sell the loan to the Federal
National Mortgage Association or the Federal Home Loan Mortgage
Corporation;
(2) A for-profit mortgage lending institution (other than a bank,
savings
[[Page 72]]
association, or credit union) whose home purchase loan originations
(including refinancings of home purchase loans) equaled or exceeded ten
percent of its loan origination volume, measured in dollars, in the
preceding calendar year.
(f) Home improvement loan means any loan that:
(1) Is for the purpose, in whole or in part, of repairing,
rehabilitating, remodeling, or improving a dwelling or the real property
on which it is located; and
(2) Is classified by the financial institution as a home improvement
loan.
(g) Home purchase loan means any loan secured by and made for the
purpose of purchasing a dwelling.
(h) Metropolitan statistical area or MSA means a metropolitan
statistical area or a primary metropolitan statistical area, as defined
by the U.S. Office of Management and Budget.
[Reg. C, 54 FR 51362, Dec. 15, 1989, as amended at 56 FR 59857, Nov. 26,
1991; 59 FR 63704, Dec. 9, 1994] |
||||||||||||||||||||||||||||
(a) Exemption based on location, asset size, or number of home
purchase loans. (1) A bank, savings association, or credit union is
exempt from the requirements of this part for a given calendar year if
on the preceding December 31:
(i) The institution had neither a home office nor a branch office in
an MSA; or
(ii) The institution's total assets were at or below the asset
threshold established by the Board. The asset threshold was adjusted
from $10 million to $28 million as of December 31, 1996. For subsequent
years, the Board will adjust the threshold based on the year-to-year
change in the average of the Consumer Price Index for Urban Wage Earners
and Clerical Workers, not seasonally adjusted, for each twelve-month
period ending in November, with rounding to the nearest million. The
Board will publish any adjustment to the asset figure in December in the
staff commentary.
(2) A for-profit mortgage lending institution (other than a bank,
savings association, or credit union) is exempt from the requirements of
this part for a given calendar year if:
(i) The institution had neither a home office nor a branch office in
an MSA on the preceding December 31; or
(ii) The institution's total assets combined with those of any
parent corporation were $10 million or less on the preceding December
31, and the institution originated fewer than 100 home purchase loans
(including refinancings of home purchase loans) in the preceding
calendar year.
(b) Exemption based on state law. (1) A state-chartered or state-
licensed financial institution is exempt from the requirements of this
regulation if the Board determines that the institution is subject to a
state disclosure law that contains requirements substantially similar to
those imposed by this regulation and contains adequate provisions for
enforcement.
(2) Any state, state-chartered or state-licensed financial
institution, or association of such institutions may apply to the Board
for an exemption under this paragraph.
(3) An institution that is exempt under this paragraph shall submit
the data required by the state disclosure law to its state supervisory
agency for purposes of aggregation.
(c) Loss of exemption. (1) An institution losing an exemption that
was based on the criteria set forth in paragraph (a) of this section
shall comply with this part beginning with the calendar year following
the year in which it lost its exemption.
(2) An institution losing an exemption that was based on state law
under paragraph (b) of this section shall comply with this regulation
beginning with the calendar year following the year for which it last
reported loan data under the state disclosure law.
[Reg. C, 54 FR 51362, Dec. 15, 1989, as amended at 57 FR 56965, Dec. 2,
1992; 62 FR 28623, May 27, 1997; 63 FR 52142, Sept. 30, 1998]
|
||||||||||||||||||||||||||||
|
Sec. 203.4 Compilation of loan data. |
||||||||||||||||||||||||||||
(a) Data format and itemization. A financial institution shall
collect data regarding applications for, and originations and purchases
of, home purchase and home improvement loans (including refinancings of
both) for each calendar year. These transactions shall be
[[Page 73]]
recorded, within thirty calendar days after the end of each calendar
quarter in which final action is taken (such as origination or purchase
of a loan, or denial or withdrawal of an application), on a register in
the format prescribed in Appendix A of this part and shall include the
following items:
(1) A number for the loan or loan application, and the date the
application was received.
(2) The type and purpose of the loan.
(3) The owner-occupancy status of the property to which the loan
relates.
(4) The amount of the loan or application.
(5) The type of action taken, and the date.
(6) The location of the property to which the loan relates, by MSA,
state, county, and census tract, if the institution has a home or a
branch office in that MSA.
(7) The race or national origin and sex of the applicant or
borrower, and the gross annual income relied upon in processing the
application.
(8) The type of entity purchasing a loan that the institution
originates or purchases and then sells within the same calendar year.
(b) Collection of data on race or national origin, sex, and income.
(1) A financial institution shall collect data about the race or
national origin and sex of the applicant or borrower as prescribed in
appendix B. If the applicant or borrower chooses not to provide the
information, the lender shall note the data on the basis of visual
observation or surname, to the extent possible.
(2) Race or national origin, sex, and income data may but need not
be collected for:
(i) Loans purchased by the financial institution; or
(ii) Applications received or loans originated by a bank, savings
association, or credit union with assets on the preceding December 31 of
$30 million or less.
(c) Optional data. A financial institution may report the reasons it
denied a loan application.
(d) Excluded data. A financial institution shall not report:
(1) Loans originated or purchased by the financial institution
acting in a fiduciary capacity (such as trustee);
(2) Loans on unimproved land;
(3) Temporary financing (such as bridge or construction loans);
(4) The purchase of an interest in a pool of loans (such as
mortgage-participation certificates); or
(5) The purchase solely of the right to service loans.
(e) Data reporting under CRA for banks and savings associations with
total assets of $250 million or more and banks and savings associations
that are subsidiaries of a holding company whose total banking and
thrift assets are $1 billion or more. As required by agency regulations
that implement the Community Reinvestment Act, banks and savings
associations that had total assets of $250 million or more (or are
subsidiaries of a holding company with total banking and thrift assets
of $1 billion or more) as of December 31 for each of the immediately
preceding two years, shall also collect the location of property located
outside the MSAs in which the institution has a home or branch office,
or outside any MSAs.
[54 FR 51362, Dec. 15, 1989; 55 FR 695, Jan. 8, 1990, as amended at 56
FR 59857, Nov. 26, 1991; 56 FR 66343, Dec. 23, 1991; Reg. C, 59 FR
63704, Dec. 9, 1994; 60 FR 22225, May 4, 1995]
|
||||||||||||||||||||||||||||
|
Sec. 203.5 Disclosure and reporting. |
||||||||||||||||||||||||||||
(a) Reporting to agency. By March 1 following the calendar year for
which the loan data are compiled, a financial institution shall send its
complete loan application register to the agency office specified in
Appendix A of this part, and shall retain a copy for its records for a
period of not less than three years.
(b) Public disclosure of statement. (1) A financial institution
shall make its mortgage loan disclosure statement (to be prepared by the
Federal Financial Institutions Examination Council) available to the
public at its home office no later than three business days after
receiving it from the Examination Council.
(2) In addition, a financial institution shall either:
(i) Make its disclosure statement available to the public (within
ten business days of receiving it) in at
[[Page 74]]
least one branch office in each additional MSA where the institution has
offices (the disclosure statement need only contain data relating to the
MSA where the branch is located); or
(ii) Post the address for sending written requests for the
disclosure statement in the lobby of each branch office in an MSA where
the institution has offices, and mail or deliver a copy of the
disclosure statement, within fifteen calendar days of receiving a
written request (the disclosure statement need only contain data
relating to the MSA for which the request is made). Including the
address in the general notice required under paragraph (e) of this
section satisfies this requirement.
(c) Public disclosure of loan application register. A financial
institution shall make its loan application register available to the
public after modifying it in accordance with appendix A. An institution
shall make its modified register available following the calendar year
for which the data are compiled, by March 31 for a request received on
or before March 1, and within 30 days for a request received after March
1. The modified register need only contain data relating to the MSA for
which the request is made.
(d) Availability of data. A financial institution shall make its
modified register available to the public for a period of three years
and its disclosure statement available for a period of five years. An
institution shall make the data available for inspection and copying
during the hours the office is normally open to the public for business.
It may impose a reasonable fee for any cost incurred in providing or
reproducing the data.
(e) Notice of availability. A financial institution shall post a
general notice about the availability of its HMDA data in the lobby of
its home office and of each branch office located in an MSA. It shall
promptly upon request provide the location of the institution's offices
where the statement is available for inspection and copying, or it may
include the location in the notice.
[58 FR 13405, Mar. 11, 1993, as amended at Reg. C, 59 FR 63704, Dec. 9,
1994; 62 FR 28623, May 27, 1997]
|
||||||||||||||||||||||||||||
|
Sec. 203.6 Enforcement |
||||||||||||||||||||||||||||
(a) Administrative enforcement. A violation of the act or this
regulation is subject to administrative sanctions as provided in section
305 of the act, including the imposition of civil money penalties, where
applicable. Compliance is enforced by the agencies listed in appendix A
of this regulation.
(b) Bona fide errors. An error in compiling or recording loan data
is not a violation of the act or this regulation if it was unintentional
and occurred despite the maintenance of procedures reasonably adapted to
avoid such errors.
[54 FR 51362, Dec. 15, 1989, as amended at 56 FR 59857, Nov. 26, 1991]
Appendix A to Part 203--Form and Instructions for Completion of HMDA
Loan/Application Register
Return to top
Paperwork Reduction Act Notice
This report is required by law (12 U.S.C. 2801-2810 and 12 CFR part
203). An agency may not conduct or sponsor, and an organization is not
required to respond to, a collection of information unless it displays a
currently valid OMB Control Number. The OMB Control Numbers for this
information collection are 1557-0159, 3064-0046, 1550-0021, and 7100-
0247 for institutions reporting data to the Office of the Comptroller of
the Currency, the Federal Deposit Insurance Corporation, the Office of
Thrift Supervision, and the Federal Reserve System, respectively;
numbers for the National Credit Union Administration and the Department
of Housing and Urban Development are pending. Send comments regarding
this burden estimate or any other aspect of this collection of
information, including suggestions for reducing the burden, to the
respective agencies and to the Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503.
I. Who Must File a Report
A. Depository Institutions
1. Subject to the exception discussed below, banks, savings
associations, and credit unions must complete a register listing data
about loan applications received, loans originated, and loans purchased
if on the preceding December 31 an institution:
a. Had assets of more than the asset threshold for coverage as
published by the Board each year in December, and
b. Had a home or a branch office in a ``metropolitan statistical
area'' or a ``primary
[[Page 75]]
metropolitan statistical area'' (both are referred to in these
instructions by the term ``MSA'').
2. The asset threshold was adjusted from $10 million to $28 million
as of December 31, 1996. Any adjustment to the asset threshold for
depository institutions will be published by the Board in December in
the staff commentary.
3. Example. If on December 31 you had a home or branch office in an
MSA and your assets exceeded the asset threshold, you must complete a
register that lists the home-purchase and home-improvement loans that
you originate or purchase (and also lists applications that did not
result in an origination) beginning January 1.
B. Depository Institutions--Exception
You need not complete a register--even if you meet the tests for
asset size and location--if your institution is a bank, savings
association, or credit union that made no first-lien home purchase loans
(including refinancings) on one-to-four-family dwellings in the
preceding calendar year. This exception does not apply in the case of
nondepository institutions.
C. Other Lending Institutions
Subject to the exception discussed below, for-profit mortgage
lending institutions (other than banks, savings associations, and credit
unions) must complete a register listing data about loan applications
received, loans originated, and loans purchased if the institution had a
home or branch office in an MSA on the preceding December 31, and
1. Had assets of more than $10 million (based on the combined assets
of the institution and any parent corporation) on the preceding December
31, or
2. Originated 100 or more home purchase loans (including
refinancings of such loans) during the preceding calendar year,
regardless of asset size.
D. Other Lending Institutions--Exception
You need not complete a register--even if you meet the tests for
location and asset size or number of home purchase loans--if your
institution is a for-profit mortgage lender (other than a bank, savings
association, or credit union) and home purchase loans that you
originated in the preceding calendar year (including refinancings) came
to less than 10 percent of your total loan origination volume, measured
in dollars.
E. If you are the subsidiary of a bank or savings association you
must complete a separate register for your institution. You will submit
the register, directly or through your parent, to the agency that
supervises your parent. (See paragraph VI.)
F. Institutions that are specifically exempted by the Federal
Reserve Board from complying with the federal Home Mortgage Disclosure
Act because they are covered by a similar state law on mortgage loan
disclosures must use the disclosure form required by their state law and
submit the data to their state supervisory agency.
II. Required Format and Reporting Procedures
A. Institutions must submit data to their supervisory agencies in an
automated, machine-readable form. The format must conform exactly to
that of form FR HMDA-LAR, including the order of columns, column
headings, etc. Contact your federal supervisory agency for information
regarding procedures and technical specifications for automated data
submission; in some cases, agencies also make software for automated
data submission available to institutions. The data must be edited
before submission, using the edits included in the agency-supplied
software or equivalent edits in software available from vendors or
developed in-house. (Institutions that report 25 or fewer entries on
their HMDA-LAR may collect and report the data in paper form. An
institution that submits its register in nonautomated form must send two
copies that are typed or computer printed, and must use the format of
form FR HMDA-LAR (but need not use the form itself). Each page must be
numbered, and the total number of pages must be given (for example,
``Page 1 of 3'').)
B. The required data are to be entered in the register for each loan
origination, each application acted on, and each loan purchased during
the calendar year. Your institution should decide on the procedure it
wants to follow--for example, whether to begin entering the required
data when an application is received, or to wait until final action is
taken (such as when a loan goes to closing or an application is denied).
Keep in mind that an application is to be reported in the calendar year
when final action is taken. Report loan originations in the year they go
to closing; if an application has been approved but has not yet gone to
closing at year-end, report it the following year.
C. Your institution may collect the data on separate registers at
different branches, or on separate registers for different loan types
(such as for home purchase or home improvement loans, or for loans on
multifamily dwellings). But make sure the application or loan numbers
(discussed under paragraph V.A.1., below) are unique.
D. Entries need not be grouped on your register by MSA, or
chronologically, or by census tract numbers, or in any other particular
order.
E. Applications and loans must be recorded on your register within
thirty calendar days after the end of the calendar quarter in which
final action (such as origination or purchase of a loan, or denial or
withdrawal
[[Page 76]]
of an application) is taken. The type of purchaser for loans sold need
not be included in these quarterly updates.
III. Submission of HMDA-LAR and Public Release of Data
A. You must submit the data for your institution to the office
specified by your supervisory agency no later than March 1 following the
calendar year for which the data are compiled. A list of the agencies
appears at the end of these instructions.
B. You must submit all required data to your supervisory agency in
one complete package, with the prescribed transmittal sheet. An officer
of your institution must certify to the accuracy of the data. Any
additional data submissions that become necessary (for example, because
you discover that data were omitted from the initial submission, or
because revisions are called for) also must be accompanied by a
transmittal sheet.
C. The transmittal sheet must state the total number of line entries
contained in the accompanying data submission. If the data submission
involves revisions or deletions of previously submitted data, state the
total of all line entries contained in that submission, including both
those representing revisions or deletions of previously submitted
entries, and those that are being resubmitted unchanged or are being
submitted for the first time. If you are a depository institution, you
also are asked to provide a list of the MSAs where you have a home or
branch office.
D. Availability of disclosure statement. 1. The Federal Financial
Institutions Examination Council (FFIEC) will prepare a disclosure
statement from the data you submit. Your disclosure statement will be
returned to the name and address indicated on the transmittal sheet.
Within three business days of receiving the disclosure statement, you
must make a copy available at your home office for inspection by the
public. For these purposes a business day is any calendar day other than
a Saturday, Sunday, or legal public holiday. You also must either:
a. Make your disclosure statement available to the public, within
ten business days of receiving it from the FFIEC, in at least one branch
office in each additional MSA where you have offices (the disclosure
statement need only contain data relating to properties in the MSA where
the branch office is located); or
b. Post in the lobby of each branch office in an MSA the address
where a written request for the disclosure statement may be sent, and
mail or deliver a copy of the statement to any person requesting it,
within fifteen calendar days of receiving a written request. The
disclosure statement need only contain data relating to the MSA for
which the request is made.
2. You may make the disclosure statement available in paper form or,
if the person requesting the data agrees, in automated form (such as by
PC diskette or computer tape).
E. Availability of modified loan application register.
1. To protect the privacy of applicants and borrowers, an
institution must modify its loan application register by removing the
following information before releasing it to the public: the application
or loan number, date application received, and date of action taken.
2. You may make the modified register available in paper or
automated form (such as by PC diskette or computer tape). Although you
are not required to make the modified loan application register
available in census-tract order, you are strongly encouraged to do so in
order to enhance its utility to users.
3. You must make your modified register available following the
calendar year for which the data are complied, by March 31 for a request
received on or before March 1, and within 30 days for a request received
after March 1. You are not required to prepare a modified loan
application register in advance of receiving a request from the public
for this information, but must be able to respond to a request within 30
days. A modified register need only reflect data relating to the MSA for
which the request is made.
F. Posters.
1.Suggested language. Some of the agencies provide HMDA posters that
you can use to inform the public of the availability of your HMDA data,
or you may create your own posters. If you print your own, the following
language is suggested but is not required:
Home Mortgage Disclosure Act Notice
The HMDA data about our residential mortgage lending are available
for review. The data show geographic distribution of loans and
applications; race, gender, and income of applicants and borrowers; and
information about loan approvals and denials. Inquire at this office
regarding the locations where HMDA data may be inspected.
2. Additional language for institutions making the disclosure
statement available upon request. For an institution that makes its
disclosure statement available upon request instead of at branch offices
must post a notice informing the public of the address to which a
request should be sent. For example, the institution could include the
following sentence in its general notice: ``To receive a copy of these
data send a written request to [address].''
[[Page 77]]
IV. Types of Loans and Applications Covered and Excluded by HMDA
A. Types of Loans and Applications to be Reported
1. Report the data on home purchase and home improvement loans that
you originated (that is, loans that were closed in your name) and loans
that you purchased during the calendar year covered by the report.
Report these data even if the loans were subsequently sold by your
institution. Include refinancings of home purchase and home improvement
loans.
2. Report the data for applications for home purchase and home
improvement loans that did not result in originations--for example,
applications that your institution denied or that the applicant withdrew
during the calendar year covered by the report.
3. In the case of brokered loan applications or applications
forwarded to you through a correspondent, report as originations loans
that you approved and subsequently acquired according to a pre-closing
arrangement (whether or not they closed in your institution's name).
Additionally, report the data for all applications that did not result
in originations--for example, applications that your institution denied
or that the applicant withdrew during the calendar year covered by the
report (whether or not they would have closed in your institution's
name). For all of these loans and applications, report the race or
national origin, sex, and income information, unless your institution is
a bank, savings association, or credit union with assets of $30 million
or less on the preceding December 31.
4. Originations are to be reported only once. If you are the loan
broker or correspondent, do not report as originations loans that you
forwarded to another lender for approval prior to closing, and that were
approved and subsequently acquired by that lender (whether or not they
closed in your name).
5. Report applications that were received in the previous calendar
year but were acted upon during the calendar year covered by the current
register.
B. Data To Be Excluded
Do not report loans or applications for loans of the following
types:
1. Loans that, although secured by real estate, are made for
purposes other than home purchase, home improvement, or refinancing (for
example, do not report a loan secured by residential real property for
purposes of financing college tuition, a vacation, or goods for business
inventory).
2. Loans made in a fiduciary capacity (for example, by your trust
department).
3. Loans on unimproved land.
4. Construction or bridge loans and other temporary financing.
5. The purchase of an interest in a pool of loans (such as mortgage-
participation certificates).
6. The purchase solely of the right to service loans.
V. Instructions for Completion of Loan/Application Register
A. Application or Loan Information
1. Application or Loan Number
Enter an identifying number that can be used later to retrieve the
loan or application file. It can be any number of your choosing (not
exceeding 25 characters). You may use letters, numerals, or a
combination of both.
Make sure that all numbers are unique within your institution. If
your register contains data for branch offices, for example, you could
use a letter or a numerical code to identify the loans or applications
of different branches, or could assign a certain series of numbers to
particular branches to avoid duplicate numbers. You are strongly
encouraged not to use the applicant's or borrower's name or social
security number, for privacy reasons.
2. Date application received. For paper submissions only, enter the
date the loan application was received by your institution by month,
day, and year, using numerals in the form MM/DD/CCYY (for example, 01/
15/1999). For institutions submitting data in electronic form, the
proper format is CCYYMMDD. If your institution normally records the date
shown on the application form, you may use that date instead. Enter
``NA'' for loans purchased by your institution.
3. Type. Indicate the type of loan or application by entering the
applicable code from the following:
1--Conventional (any loan other than FHA, VA, FSA, or RHS loans)
2--FHA-insured (Federal Housing Administration)
3--VA-guaranteed (Veterans Administration)
4--FSA/RHS-guaranteed (Farm Service Agency or Rural Housing Service)
4. Purpose
Indicate the purpose of the loan or application by entering the
applicable code from the following:
1--Home purchase (one-to-four family)
2--Home improvement (one-to-four family)
3--Refinancing (home purchase or home improvement, one-to-four family)
4--Multifamily dwelling (home purchase, home improvement, and
refinancings)
5. Explanation of Purpose Codes
Code 1: Home purchase.
[[Page 78]]
a. This code applies to loans and applications made for the purpose
of purchasing a residential dwelling for one to four families, if the
loan is to be secured by the dwelling being purchased or by another
dwelling.
b. At your option, you may use code 1 for loans that are made for
home improvement purposes but are secured by a first lien, if you
normally classify such first-lien loans as home purchase loans.
Code 2: Home improvement.
a. Code 2 applies to loans and applications for loans if (i) a
portion of the proceeds is to be used for repairing, rehabilitating,
remodeling, or improving a one- to four-family residential dwelling, or
the real property upon which it is located, and (ii) the loan is
classified as a home improvement loan.
b. Report both secured and unsecured loans.
c. At your option, you may report data about home-equity lines of
credit--even if the credit line is not classified as a home improvement
loan. If you choose to do so, you may report a home-equity line of
credit as a home improvement loan if some portion of the proceeds will
be used for home improvement. (See Paragraph 8. ``Loan amount.'') If you
report originations of home-equity lines of credit, you must also report
applications for such loans that did not result in originations.
Code 3: Refinancings.
a. Use this code for refinancings (and applications for
refinancings) of loans secured by one- to four-family residential
dwellings. A refinancing involves the satisfaction of an existing
obligation that is replaced by a new obligation undertaken by the same
borrower. But do not report a refinancing if, under the loan agreement,
you are unconditionally obligated to refinance the obligation, or you
are obligated to refinance the obligation subject to conditions within
the borrower's control.
b. Use this code whether or not you were the original creditor on
the loan being refinanced, and whether or not the refinancing involves
an increase in the outstanding principal.
c. You may report all refinancings of loans secured by one- to four-
family residential dwellings, regardless of the purpose of or amount
outstanding on the original loan, and regardless of the amount of new
money (if any) that is for home purchase or home improvement purposes.
Code 4: Multifamily dwelling.
a. Use this code for loans and loan applications on dwellings for
five or more families, including home purchase loans, refinancings, and
loans for repairing, rehabilitation, and remodeling purposes.
b. Do not use this code for loans on individual condominium or
cooperative units; use codes 1, 2, or 3 for such loans, as applicable.
6. Owner Occupancy
Indicate whether the property to which the loan or loan application
relates is to be owner-occupied as a principal dwelling by entering the
applicable code from the following:
1--Owner-occupied as a principal dwelling
2--Not owner-occupied
3--Not applicable
7. Explanation of Codes
a. Use code 2 for second homes or vacation homes, as well as rental
properties.
b. Use code 2 only for nonoccupant loans, or applications for
nonoccupant loans, related to one-to-four family dwellings (including
individual condominium or cooperative units).
c. Use code 3 if the property to which the loan relates is a
multifamily dwelling; is not located in an MSA; or is located in an MSA
in which your institution has neither a home nor a branch office.
d. For purchased loans, you may assume that the property will be
owner-occupied as a principal dwelling (code 1) unless the loan
documents or application contain information to the contrary.
8. Loan Amount
Enter the amount of the loan or application. Do not report loans
below $500. Show the amount in thousands rounding to the nearest
thousand ($500 should be rounded up to the next $1,000). For example, a
loan for $167,300 should be entered as 167 and one for $15,500 as 16.
a. For home purchase loans that you originate, enter the principal
amount of the loan as the loan amount. For home purchase loans that you
purchase, enter the unpaid principal balance of the loan at the time of
purchase as the loan amount.
b. For home improvement loans (both originations and purchases), you
may include unpaid finance charges in the loan amount if that is how you
record such loans on your books. For a multiple purpose loan classified
by you as a home improvement loan because it involves a home improvement
purpose, enter the full amount of the loan, not just the amount
specified for home improvement.
c. For home-equity lines of credit (if you have chosen to report
them), enter as the loan amount only that portion of the line that is
for home improvement purposes. Report the loan amount for applications
that did not result in originations in the same manner. Report only in
the year the line is established.
d. For refinancings of dwelling-secured loans, indicate the total
amount of the refinancing, including the amount outstanding on the
original loan and the amount of new money (if any).
[[Page 79]]
e. For a loan application that was denied or withdrawn, enter the
amount applied for.
f. If you make a counteroffer for an amount different from the
amount initially applied for, and the counteroffer is accepted by the
applicant, report it as an origination for the amount of the loan
actually granted. If the applicant turns down the counteroffer or fails
to respond, report it as a denial for the amount initially requested.
B. Action Taken
1. Type of action. Indicate the type of action taken on the
application or loan by using one of the following codes. Do not report
any loan application still pending at the end of the calendar year; you
will report that application on your register for the year in which
final action is taken.
1--Loan originated
2--Application approved but not accepted
3--Application denied
4--Application withdrawn
5--File closed for incompleteness
6--Loan purchased by your institution
2. Explanation of Codes
a. Use code 1 for a loan that is originated, including one resulting
from a counteroffer (your offer to the applicant to make the loan on
different terms or in a different amount than initially applied for)
that the applicant accepts.
b. Use code 2 when an application is approved but the applicant (or
a loan broker or correspondent) fails to respond to your notification of
approval or your commitment letter within the specified time.
c. Use code 3 when an application is denied. This includes the
situation when an applicant turns down or fails to respond to your
counteroffer. Do not report as a withdrawn application or as an
application that was approved but not accepted.
d. Use code 4 only when an application is expressly withdrawn by the
applicant before a credit decision was made.
e. Use code 5 if you sent a written notice of incompleteness under
Sec. 202.9(c)(2) of Regulation B (Equal Credit Opportunity) and the
applicant failed to respond to your request for additional information
within the period of time specified in your notice.
3. Date of Action
For paper submissions only, enter the date by month, day, and year,
using numerals in the form MM/DD/CCYY (for example, 02/22/1999). For
institutions submitting data in electronic form, the proper format is
CCYYMMDD.
a. For loans originated, enter the settlement or closing date. For
loans purchased, enter the date of purchase by your institution.
b. For applications denied, applications approved but not accepted
by the applicant, and files closed for incompleteness, enter the date
that the action was taken by your institution or the date the notice was
sent to the applicant.
c. For applications withdrawn, enter the date you received the
applicant's express withdrawal; or you may enter the date shown on the
notification from the applicant, in the case of a written withdrawal.
C. Property Location
In these columns enter the applicable codes for the MSA, state,
county, and census tract for the property to which a loan relates. For
home purchase loans secured by one dwelling, but made for the purpose of
purchasing another dwelling, report the property location for the
property in which the security interest is to be taken. If the home
purchase loan is secured by more than one property, report the location
data for the property being purchased. (See paragraphs 5., 6., and 7. of
paragraph V.C. of this appendix for treatment of loans on property
outside the MSAs in which you have offices.)
1. MSA
For each loan or loan application, indicate the location of the
property by the MSA number. Enter only the MSA number, not the MSA name.
MSA boundaries are defined by the U.S. Office of Management and Budget;
use the boundaries that were in effect on January 1 of the calendar year
for which you are reporting. A listing of MSAs is available from your
regional supervisory agency or the FFIEC. (In these instructions, the
term MSA refers to both metropolitan statistical area and primary
metropolitan statistical area.)
2. State and County
You must use the Federal Information Processing Standard (FIPS) two-
digit numerical code for the state and the three-digit numerical code
for the county. These codes are available from your regional supervisory
agency or the FFIEC. Do not use the letter abbreviations used by the
U.S. Postal Service.
3. Census Tract
Indicate the census tract where the property is located.
a. Enter the code ``NA'' if the property is located in an area not
divided into census tracts on the U.S. Census Bureau's census-tract
outline maps (see paragraph 4. below).
b. If the property is located in a county with a population of
30,000 or less in the 1990 census (as determined by the Census Bureau's
1990 CPH-2 population series), enter ``NA'' (even if the population has
increased above 30,000 since 1990), or you may enter the census tract
number.
[[Page 80]]
4. Census Tract Number
For the census tract number, consult the U.S. Census Bureau's Census
Tract/Street Index for 1990, and for addresses not listed in the index,
consult the Census Bureau's census tract outline maps. You must use the
maps from the Census Bureau's 1990 CPH-3 series, or equivalent 1990
census data from the Census Bureau (such as the Census TIGER/Line File)
or from a private publisher.
5. Outside-MSA
For loans on property located outside the MSAs in which you have a
home or branch office (or outside any MSA), you have two options. Under
option 1, you may enter the MSA, state, and county codes and the census
tract number. You may enter ``NA'' in the MSA or census tract column if
no code or number exists for the property. (Codes exist for all states
and counties.) If you choose option 1, the codes and tract number must
accurately identify the location for the property in question. Under
option 2, you may enter ``NA'' in all four columns, whether or not the
codes or number exist for the property.
6. Nondepository Lenders
If you are a for-profit mortgage lending institution (other than a
bank, savings association, or credit union), and in the preceding
calendar year you received applications for, or originated or purchased,
loans for home purchase or home improvement adding up to a total of five
or more for a given MSA, you are deemed to have a branch office in that
MSA, whether or not you have a physical office there. As a result, you
will have to enter the MSA, state, county, and census tract numbers for
any transactions in that MSA. Because you must keep accurate records
about lending within MSAs in the current calendar year in order to
report data accurately the following year, to comply with this rule you
may find it easier to enter the geographic information routinely for any
property located within any MSA.
7. Data Reporting Under CRA for Banks and Savings Associations With
Total Assets of $250 Million or More and Banks and Savings Associations
That Are Subsidiaries of a Holding Company Whose Total Banking and
Thrift Assets Are $1 Billion or More
If you are a bank or savings association with total assets of $250
million or more as of December 31 for each of the immediately preceding
two years, you must also enter the location of property located outside
the MSAs in which you have a home or branch office, or outside any MSA.
You must also enter this information if you are a bank or savings
association that is a subsidiary of a holding company with total banking
and thrift assets of $1 billion or more as of December 31 for each of
the immediately preceding two years.
D. Applicant Information--Race or National Origin, Sex, and Income
Appendix B of Regulation C contains instructions for the collection
of data on race or national origin and sex, and also contains a sample
form for data collection. The form is substantially similar to the form
prescribed by Sec. 202.13 of Regulation B (Equal Credit Opportunity) and
contained in appendix B to that regulation. You may use either form.
1. Applicability
You must report this applicant information for loans that you
originate as well as for applications that do not result in an
origination.
a. You need not collect or report this information for loans
purchased. If you choose not to, enter the codes specified in paragraphs
3., 4., and 5. below for ``not applicable.''
b. If your institution is a bank, savings association, or credit
union that had assets of $30 million or less on the preceding December
31, you may--but need not--collect and report these data. If you choose
not to, enter the codes specified in paragraphs 3., 4., and 5. below for
``not applicable.''
c. If the borrower or applicant is not a natural person (a
corporation or partnership, for example), use the codes specified in
paragraphs 3., 4., and 5. below for ``not applicable.''
2. Mail and Telephone Applications
Any loan applications mailed to applicants must contain a collection
form similar to that shown in appendix B, and you must record on your
register the data on race or national origin and sex if the applicant
provides it. If the applicant chooses not to provide the data, enter the
code for ``information not provided by applicant in mail or telephone
application'' specified in paragraphs 3. and 4. below. If an application
is taken entirely by telephone, you need not request this information.
(See appendix B for complete information on the collection of this data
in mail or telephone applications.)
3. Race or National Origin of Borrower or Applicant
Use the following codes to indicate the race or national origin of
the applicant or borrower under column ``A'' and of any co-applicant or
co-borrower under column ``CA.'' If there is more than one co-applicant,
provide this information only for the first co-applicant listed on the
application form. If there are no co-applicants or co-borrowers,
[[Page 81]]
enter code 8 for ``not applicable'' in the co-applicant column.
1--American Indian or Alaskan Native
2--Asian or Pacific Islander
3--Black
4--Hispanic
5--White
6--Other
7--Information not provided by applicant in mail or telephone
application
8--Not applicable
4. Sex of Borrower or Applicant
Use the following codes to indicate the sex of the applicant or
borrower under column ``A'' and of any co-applicant or co-borrower under
column ``CA.'' If there is more than one co-applicant, provide this
information only for the first co-applicant listed on the application
form. If there are no co-applicants or co-borrowers, enter code 4 for
``not applicable.''
1--Male
2--Female
3--Information not provided by applicant in mail or telephone
application
4--Not applicable
5. Income
Enter the gross annual income that your institution relied upon in
making the credit decision.
a. Round all dollar amounts to the nearest thousand (round $500 up
to the next $1,000), and show in terms of thousands. For example,
$35,500 should be reported as 36.
b. For loans on multifamily dwellings, enter ``NA.''
c. If no income information is asked for or relied on in the credit
decision, enter ``NA.''
E. Type of Purchaser
1. Enter the applicable code to indicate whether a loan that your
institution originated or purchased was then sold to a secondary market
entity within the same calendar year:
0--Loan was not originated or was not sold in calendar year covered by
register
1--FNMA (Federal National Mortgage Association)
2--GNMA (Government National Mortgage Association)
3--FHLMC (Federal Home Loan Mortgage Corporation)
4--FAMC (Federal Agricultural Mortgage Corporation)
5--Commercial bank
6--Savings bank or savings association
7--Life insurance company
8--Affiliate institution
9--Other type of purchaser
2. Explanation of codes. a. Enter the code 0 for applications that
were denied, withdrawn, or approved but not accepted by the applicant;
and for files closed for incompleteness.
b. If you originated or purchased a loan and did not sell it during
that same calendar year, enter the code 0. If you sell the loan in a
succeeding year, you need not report the sale.
c. If you conditionally assign a loan to GNMA in connection with a
mortgage-backed security transaction, use code 2.
d. Loans ``swapped'' for mortgage-backed securities are to be
treated as sales; enter the type of entity receiving the loans that are
swapped as the purchaser.
e. Use code 8 for loans sold to an institution affiliated with you,
such as your subsidiary or a subsidiary of your parent corporation.
F. Reasons for Denial
1. You are not required to enter the reasons for the denial of an
application. But if you choose to do so, you may indicate up to three
reasons by using the following codes:
1--Debt-to-income ratio
2--Employment history
3--Credit history
4--Collateral
5--Insufficient cash (downpayment, closing costs)
6--Unverifiable information
7--Credit application incomplete
8--Mortgage insurance denied
9--Other
2. Leave this column blank if the ``action taken'' on the
application is not a denial. For example, do not complete this column if
the application was withdrawn or the file was closed for incompleteness.
3. If your institution uses the model form for adverse action
contained in the appendix to Regulation B (Form C-1 in appendix C,
Sample Notification Form, which offers some 20 reasons for denial), the
following list shows which codes to enter.
a. Code 1 corresponds to: Income insufficient for amount of credit
requested, and Excessive obligations in relation to income.
b. Code 2 corresponds to: Temporary or irregular employment, and
Length of employment.
c. Code 3 corresponds to: Insufficient number of credit references
provided; Unacceptable type of credit references provided; No credit
file; Limited credit experience; Poor credit performance with us;
Delinquent past or present credit obligations with others; Garnishment,
attachment, foreclosure, repossession, collection action, or judgment;
and Bankruptcy.
d. Code 4 corresponds to: Value or type of collateral not
sufficient.
e. Code 6 corresponds to: Unable to verify credit references, Unable
to verify employment, Unable to verify income, and Unable to verify
residence.
[[Page 82]]
f. Code 7 corresponds to: Credit application incomplete.
g. Code 9 corresponds to: Length of residence, Temporary residence,
and Other reasons specified on notice.
VI. Federal Supervisory Agencies
Send your loan/application register and direct any questions to the
office of your federal supervisory agency as specified below. If you are
the nondepository subsidiary of a bank, savings association, or credit
union, send the register to the supervisory agency for your parent
institution. Terms that are not defined in the Federal Deposit Insurance
Act (12 U.S.C. 1813(s)) shall have the meaning given to them in the
International Banking Act of 1978 (12 U.S.C. 3101).
A. National Banks and Their Subsidiaries and Federal Branches and
Federal Agencies of Foreign Banks.
District office of the Office of the Comptroller of the Currency for
the district in which the institution is located.
B. State Member Banks of the Federal Reserve System, Their Subsidiaries,
Subsidiaries of Bank Holding Companies, 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.
Federal Reserve Bank serving the district in which the state member
bank is located; for institutions other than state member banks, the
Federal Reserve Bank specified by the Board of Governors.
C. Nonmember Insured Banks (except for federal savings banks) and Their
Subsidiaries and Insured State Branches of Foreign Banks.
Regional Director of the Federal Deposit Insurance Corporation for
the region in which the institution is located.
D. Savings Institutions Insured Under the Savings Association Insurance
Fund of the FDIC, Federally-Chartered Savings Banks Insured Under the
Bank Insurance Fund of the FDIC (But Not Including State-Chartered
Savings Banks Insured Under the Bank Insurance Fund), Their
Subsidiaries, and Subsidiaries of Savings Institution Holding Companies
Regional or other office specified by the Office of Thrift
Supervision.
E. Credit Unions
National Credit Union Administration, Office of Examination and
Insurance, 1776 G Street, NW., Washington, DC 20456.
F. Other Depository Institutions
Regional Director of the Federal Deposit Insurance Corporation for
the region in which the institution is located.
G. Other Mortgage Lending Institutions
Assistant Secretary for Housing, HMDA Reporting--Room 9233, U.S.
Department of Housing and Urban Development, 451 7th Street, SW.,
Washington, DC 20410.
[[Page 83]]
[GRAPHIC] [TIFF OMITTED] TR30SE98.022
[[Page 84]]
[GRAPHIC] [TIFF OMITTED] TR30SE98.023
Loan/Application Register Code Sheet
Use the following codes to complete the Loan/Application Register.
The instructions to the HMDA-LAR explain the proper use of each code.
[[Page 85]]
Application or Loan Information
Type:
1--Conventional (any loan other than FHA, VA, FSA, or RHS loans)
2--FHA-insured (Federal Housing Administration)
3--VA-guaranteed (Veterans Administration)
4--FSA/RHS-guaranteed (Farm Service Agency or Rural Housing Service)
Purpose:
1--Home purchase (one-to-four family)
2--Home improvement (one-to-four family)
3--Refinancing (home purchase or home improvement, one-to-four
family)
4--Multifamily dwelling (home purchase, home improvement, and
refinancings)
Owner-Occupancy:
1--Owner-occupied as a principal dwelling
2--Not owner-occupied
3--Not applicable
Action Taken:
1--Loan originated
2--Application approved but not accepted
3--Application denied by financial institution
4--Application withdrawn by applicant
5--File closed for incompleteness
6--Loan purchased by your institution
Applicant Information
Race or National Origin:
1--American Indian or Alaskan Native
2--Asian or Pacific Islander
3--Black
4--Hispanic
5--White
6--Other
7--Information not provided by applicant in mail or telephone
application
8--Not applicable
Sex:
1--Male
2--Female
3--Information not provided by applicant in mail or telephone
application
4--Not applicable
Type of Purchaser
0--Loan was not originated or was not sold in calendar year covered by
register
1--FNMA (Federal National Mortgage Association)
2--GNMA (Government National Mortgage Association)
3--FHLMC (Federal Home Loan Mortgage Corporation)
4--FAMC (Federal Agricultural Mortgage Corporation)
5--Commercial bank
6--Savings bank or savings association
7--Life insurance company
8--Affiliate institution
9--Other type of purchaser
Reasons for Denial (optional)
1--Debt-to-income ratio
2--Employment history
3--Credit history
4--Collateral
5--Insufficient cash (downpayment, closing costs)
6--Unverifiable information
7--Credit application incomplete
8--Mortgage insurance denied
9--Other
[Reg. C, 56 FR 59857, Nov. 26, 1991, as amended at 57 FR 20400, May 13,
1992; 57 FR 56965, 56967, Dec. 2, 1992; 58 FR 13405, Mar. 11, 1993; 59
FR 63704, Dec. 9, 1994; 60 FR 22225, May 4, 1995; 62 FR 28623, 28624,
May 27, 1997; 62 FR 33340, June 19, 1997; 63 FR 52143-52146, Sept. 30,
1998]
Appendix B to Part 203--Form and instructions for data collection on
race or national origin and sex
Return to top
I. Instructions on collection of data on race or national origin and
sex.
A. Format.
You may list questions regarding the race or national origin and sex
of the applicant on your loan application form, or on a separate form
that refers to the application. (See the sample form below for
recommended language.)
B. Procedures.
1. You must ask for this information, but cannot require the
applicant to provide it.
2. If the applicant chooses not to provide the information for an
application taken in person, note this fact on the form and note the
data, to the extent possible, on the basis of visual observation or
surname.
3. Inform the applicant that the Federal government is requesting
this information in order to monitor compliance with Federal statutes
that prohibit lenders from discriminating against applicants on these
bases. Inform the applicant that if the information is not provided
where the application is taken in person, you are required to note the
data on the basis of visual observation or surname.
4. If an application is made entirely by telephone, you need not
request this information. And you need not provide the data when you
take an application by mail, if the applicant fails to answer these
questions on
[[Page 86]]
the application form. You should indicate whether an application was
received by mail or telephone, if it is not otherwise evident on the
face of the application.
5. The ``other'' block is available only to the applicant who
chooses to indicate some other appropriate category for race or national
origin. If completing the form based on visual observation, do not use
this category; use one of the other five categories.
[GRAPHIC] [TIFF OMITTED] TC24SE91.019
Supplement I to Part 203--Staff Commentary
Return to top
Introduction
1. Status and citations. The commentary in this supplement is the
vehicle by which the Division of Consumer and Community Affairs of the
Federal Reserve Board issues formal staff interpretations of Regulation
C (12 CFR part 203). The parenthetical citations given are references to
Appendix A to Regulation C, Form and Instructions for Completion of the
HMDA Loan/Application Register.
Section 203.1--Authority, Purpose, and Scope
1(c) Scope.
1. General. The comments in this section address issues affecting
coverage of institutions, exemptions from coverage, and data collection
requirements. (Appendix A of this part, I., IV., and V.)
2. Meaning of refinancing. A refinancing of a loan is the
satisfaction and replacement of an existing obligation by a new
obligation by the same borrower. The term ``refinancing'' refers to the
new obligation. If the existing obligation is not satisfied and
replaced, but is only renewed, modified, extended, or consolidated (as
in certain modification, extension, and consolidation agreements), the
transaction is not a refinancing for purposes of HMDA. (Appendix A of
this part, Paragraph V.A.5. Code 3.)
3. Refinancing--coverage. The regulation bases coverage, in part, on
whether an institution originates home purchase loans. For determining
whether an institution is subject to Regulation C or is exempt from
coverage, an origination of a home-purchase
[[Page 87]]
loan includes the refinancing of a home-purchase loan. An institution
may always determine the actual purpose of the existing obligation (for
example, by reference to available documents). (Appendix A of this part,
Paragraphs I.B., I.C., and I.D.) Alternatively, an institution may:
i. Rely on the statement of the applicant that the existing
obligation was (or was not) a home-purchase loan; or
ii. Assume that the new obligation is not a refinancing of a home-
purchase loan if either the existing obligation or the new obligation is
not secured by a first lien on the dwelling.
4. Refinancing--data collection. The regulation requires collection
and reporting of data on refinancings of home-purchase and home-
improvement loans. An institution may always determine the actual
purpose of the existing obligation (for example, by reference to
available documents). (Appendix A of this part, Paragraph V.A.5. Code
3.) Alternatively, an institution may:
i. Rely on the statement of the applicant that the existing
obligation was (or was not) a home-purchase or home-improvement loan; or
ii. Assume that the new obligation is a refinancing of a home-
purchase or home-improvement loan only if the existing obligation was
secured by a lien on a dwelling; or
iii. Assume that the new obligation is a refinancing of a home-
purchase or home-improvement loan only if the new obligation will be
secured by a lien on a dwelling.
5. The broker rule and the meaning of ``broker'' and ``investor.''
For the purposes of the guidance given in this commentary, an
institution that takes and processes a loan application and arranges for
another institution to acquire the loan at or after closing is acting as
a ``broker,'' and an institution that acquires a loan from a broker at
or after closing is acting as an ``investor.'' (The terms used in this
commentary may have different meanings in certain parts of the mortgage
lending industry and other terms may be used in place of these terms,
for example in the Federal Housing Administration mortgage insurance
programs.) Depending on the facts, a broker may or may not make a credit
decision on an application (and thus it may or may not have reporting
responsibilities). If the broker makes a credit decision, it reports
that decision; if it does not make a credit decision, it does not
report. If an investor reviews an application and makes a credit
decision prior to closing, the investor reports that decision. If the
investor does not review the application prior to closing, it reports
only the loans that it purchases; it does not report the loans it does
not purchase. Thus, an institution that makes a credit decision on an
application prior to closing reports that decision regardless of whose
name the loan closes in. (Appendix A of this part, Paragraphs IV.A. and
V.B.)
6. Illustrations of the broker rule. Assume that, prior to closing,
four investors receive the same application from a broker; two deny it,
one approves it, and one approves it and acquires the loan. In these
circumstances, the first two report denials, the third reports the
transaction as approved but not accepted, and the fourth reports an
origination (whether the loan closes in the name of the broker or the
investor). Alternatively, assume that the broker denies a loan before
sending it to an investor; in this situation, the broker reports a
denial. (Appendix A of this part, Paragraphs IV.A. and V.B.)
7. Broker's use of investor's underwriting criteria. If a broker
makes a credit decision based on underwriting criteria set by an
investor, but without the investor's review prior to closing, the broker
has made the credit decision. The broker reports as an origination a
loan that it approves and closes, and reports as a denial an application
that it turns down (either because the application does not meet the
investor's underwriting guidelines or for some other reason). The
investor reports as purchases only those loans it purchases. (Appendix A
of this part, Paragraphs IV.A. and V.B.)
8. Insurance and other criteria. If an institution evaluates an
application based on the criteria or actions of a third party other than
an investor (such as a government or private insurer or guarantor), the
institution must report the action taken on the application (loan
originated, approved but not accepted, or denied, for example).
(Appendix A of this part, Paragraphs IV.A. and V.B.)
9. Credit decision of agent is decision of principal. If an
institution approves loans through the actions of an agent, the
institution must report the action taken on the application (loan
originated, approved but not accepted, or denied, for example). State
law determines whether one party is the agent of another. (Appendix A of
this part, Paragraphs IV.A. and V.B.)
10. Affiliate bank underwriting (250.250 review). If an institution
makes an independent evaluation of the creditworthiness of an applicant
(for example, as part of a pre-closing review by an affiliate bank under
12 CFR 250.250, which interprets section 23A of the Federal Reserve
Act), the institution is making a credit decision. If the institution
then acquires the loan, it reports the loan as an origination whether
the loan closes in the name of the institution or its affiliate. An
institution that does not acquire the loan but takes another action
reports that action. (Appendix A of this part, Paragraphs IV.A. and
V.B.)
11. Participation loan. An institution that originates a loan and
then sells partial interests to other institutions reports the loan as
an origination. An institution that acquires
[[Page 88]]
only a partial interest in such a loan does not report the transaction
even if it has participated in the underwriting and origination of the
loan. (Appendix A of this part, Paragraphs I., II., IV., and V.)
12. Assumptions. An assumption occurs when an institution enters
into a written agreement accepting a new borrower as the obligor on an
existing obligation. An institution reports as a home-purchase loan an
assumption (or an application for an assumption) in the amount of the
outstanding principal. If a transaction does not involve a written
agreement between a new borrower and the institution, it is not an
assumption for HMDA purposes and is not reported. (Appendix A of this
part, Paragraphs IV.A. and V.B.)
Section 203.2--Definitions
2(b) Application.
1. Consistency with Regulation B. Board interpretations that appear
in the official staff commentary to Regulation B (Equal Credit
Opportunity, 12 CFR Part 202, Supplement I) are generally applicable to
the definition of an application under Regulation C. However, under
Regulation C the definition of an application does not include
prequalification requests. (Appendix A of this part, Paragraph IV.A.)
2. Prequalification. A prequalification request is a request by a
prospective loan applicant for a preliminary determination on whether
the prospective applicant would likely qualify for credit under an
institution's standards, or on the amount of credit for which the
prospective applicant would likely qualify. Some institutions evaluate
prequalification requests through a procedure that is separate from the
institution's normal loan application process; others use the same
process. In either case, Regulation C does not require an institution to
report prequalification requests on the HMDA-LAR, even though these
requests may constitute applications under Regulation B. (Appendix A of
this part, Paragraphs I. and IV.A.)
2(c) Branch office.
1. Credit union. For purposes of Regulation C, a ``branch'' of a
credit union is any office where member accounts are established or
loans are made, whether or not the office has been approved as a branch
by a federal or state agency. (See 12 U.S.C. 1752.) (Appendix A of this
part, Paragraphs I., V.A.7., and V.C.)
2. Depository institution. A branch of a depository institution does
not include a loan production office, the office of an affiliate, or the
office of a third party such as a loan broker. (Appendix A of this part,
Paragraphs I., V.A.7., and V.C.) (But see Appendix A of this part,
Paragraph V.C.7., which requires certain depository institutions to
report property location even for properties located outside those MSAs
in which the institution has a home or branch office.)
3. Nondepository institution. A branch of a nondepository
institution does not include the office of an affiliate or other third
party such as a loan broker. (Appendix A of this part, Paragraphs I.,
V.A.7., and V.C.) (But see Appendix A of this part, Paragraph V.C.6.,
which requires certain nondepository institutions to report property
location even in MSAs where they do not have a physical location.)
2(d) Dwelling.
1. Scope. The definition of ``dwelling'' is not limited to the
principal or other residence of the applicant or borrower, and thus
includes vacation or second homes and rental properties. A dwelling also
includes a mobile or manufactured home, a multifamily structure (such as
an apartment building), and a condominium or a cooperative unit.
Recreational vehicles such as boats or campers are not dwellings for
purposes of HMDA. (Appendix A of this part, Paragraphs I.B., IV., and
V.A.5.)
2(e) Financial institution.
1. Branches of foreign banks--treated as a bank. A federal branch or
a state-licensed insured branch of a foreign bank is a ``bank'' under
section 3(a)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1813(a)), and is covered by HMDA if it meets the tests for a depository
institution found in Secs. 203.2(e)(1) and 203.3(a)(1) of Regulation C.
(Appendix A of this part, Paragraphs I.A. and I.B.)
2. Branches and offices of foreign banks--treated as a for-profit
mortgage lending institution. Federal agencies, state-licensed agencies,
state-licensed uninsured branches of foreign banks, commercial lending
companies owned or controlled by foreign banks, and entities operating
under section 25 or 25(a) of the Federal Reserve Act, 12 U.S.C. 601 and
611 (Edge Act and Agreement corporations) are not ``banks'' under the
Federal Deposit Insurance Act. These entities are nonetheless covered by
HMDA if they meet the tests for a nondepository mortgage lending
institution found in Secs. 203.2(e)(2) and 203.3(a)(2) of Regulation C.
(Appendix A of this part, Paragraphs I.C. and I.D.)
2(f) Home-improvement loan.
1. Definition. A home-improvement loan is a loan that is made for
the purpose of home improvement and that is classified by the
institution as a home-improvement loan. (Appendix A of this part,
Paragraphs IV. and V.A.5. Code 2.)
2. Statement of the applicant. An institution may rely on the oral
or written statement of an applicant regarding the proposed use of loan
proceeds. (Appendix A of this part, Paragraphs IV. and V.A.5. Code 2.c.)
3. Home-equity lines. An institution that has chosen to report home-
equity lines of credit reports as a home-improvement loan only
[[Page 89]]
the part of a home-equity line that is intended for home improvement. An
institution that reports home-equity lines reports the disposition of
all applications, not just originations. (Appendix A of this part,
Paragraphs IV. and V.A.5. Code 2.c.)
4. Classification requirement. An institution has ``classified'' a
loan as a home-improvement loan if it has entered the loan on its books
as a home-improvement loan, or has otherwise coded or identified the
loan as a home-improvement loan. For example, an institution that has
booked a loan or reported it on a ``call report'' as a home-improvement
loan has classified it as a home-improvement loan. An institution may
also classify loans as home-improvement loans in other ways (for
example, by color-coding loan files). (Appendix A of this part,
Paragraphs IV. and V.A.5. Code 2.)
5. Improvements to real property. Home improvements include
improvements both to a dwelling and to the real property on which the
dwelling is located (for example, installation of a swimming pool,
construction of a garage, or landscaping). (Appendix A of this part,
Paragraphs IV. and V.A.5. Code 2.)
6. Commercial and other loans. A loan for improvement purposes
originated outside an institution's consumer lending division (such as a
loan to improve an apartment building made through the commercial loan
department) is reported if the institution classifies it as a home-
improvement loan. (Appendix A of this part, Paragraphs IV. and V.A.5.
Code 1.)
7. Multiple-purpose loan. A loan for home improvement and for other
purposes is treated as a home-improvement loan even if less than 50
percent of the total loan proceeds are to be used for improvement,
provided the institution classifies the loan as a home-improvement loan.
(Appendix A of this part, Paragraphs IV. and V.A.5. Code 2.) (But see
comment (2)(f)-3 of this supplement on home-equity lines of credit.)
8. Mixed-use property. A loan to improve property used for
residential and commercial purposes (for example, a building containing
apartment units and retail space) satisfies the purpose requirement if
the loan proceeds are primarily to improve the residential portion of
the property. If the loan proceeds are to improve the entire property
(for example, to replace the heating system), the loan satisfies the
purpose requirement if the property itself is primarily residential. An
institution may use any reasonable standard to determine the primary use
of the property, such as by square footage or by the income generated.
An institution may select the standard to apply on a case-by-case basis.
To report the loan as a home-improvement loan, the institution must also
classify it as such. (Appendix A of this part, Paragraphs IV. and V.A.5.
Code 2.)
2(g) Home-purchase loan.
1. Multiple properties. A home-purchase loan includes a loan secured
by one dwelling and used to purchase another dwelling. (Appendix A of
this part, Paragraphs IV. and V.A.5. Code 1.)
2. Mixed-use property. A loan to purchase property used primarily
for residential purposes (for example, an apartment building containing
a convenience store) is a home-purchase loan. An institution may use any
reasonable standard to determine the primary use of the property, such
as by square footage or by the income generated. An institution may
select the standard to apply on a case-by-case basis. (Appendix A of
this part, Paragraphs IV.A., IV.B.1., and V.A.5. Code 1.)
3. Farm loan. A loan to purchase property used primarily for
agricultural purposes is not a home-purchase loan even if the property
includes a dwelling. An institution may use any reasonable standard to
determine the primary use of the property, such as by reference to the
exemption from Regulation X (Real Estate Settlement Procedures, 24 CFR
3500.5(b)(1)) for a loan on property of 25 acres or more. An institution
may select the standard to apply on a case-by-case basis. (Appendix A of
this part, Paragraphs IV.B.1. and V.A.5. Code 1.)
4. Commercial and other loans. A home-purchase loan includes a loan
originated outside an institution's residential mortgage lending
division (such as a loan for the purchase of an apartment building made
through the commercial loan department). For home-purchase loans, there
is no classification test. (Appendix A of this part, Paragraphs IV. and
V.A.5. Code 1.)
5. Construction and permanent financing. A home-purchase loan
includes both a combined construction/permanent loan and the permanent
financing that replaces a construction-only loan. It does not include a
construction-only loan, which is considered ``temporary financing''
under Regulation C and is not reported. (Appendix A of this part,
Paragraphs IV.A. and B.2, and V.A.5. Code 1.)
6. Home-equity line. An institution that has chosen to report home-
equity lines of credit reports as a home-purchase loan only the part
that is intended for home purchase. An institution may rely on the
applicant's oral or written statement about the proposed use of the
funds. An institution that reports home-equity lines reports the
disposition of all applications, not just the originations. (Appendix A
of this part, Paragraphs IV. and V.A.5. Code 1.)
Section 203.3--Exempt Institutions
3(a) Exemption based on location, asset size, or number of home-
purchase loans.
1. General. An institution that ceases to meet the tests for HMDA
coverage (such as
[[Page 90]]
the 10 percent test for nondepository institutions) or becomes exempt
may stop collecting HMDA data beginning with the next calendar year. For
example, a bank whose assets are at or below the threshold on December
31 of a given year reports data for that full calendar year, in which it
was covered, but does not report data for the succeeding calendar year.
(Appendix A of this part, Paragraph I.)
2. Adjustment of exemption threshold for depository institutions.
For data collection in 2001, the asset-size exemption threshold is $31
million. Depository institutions with assets at or below $31 million are
exempt from collecting data for 2001.
3. Coverage after a merger. Several scenarios of data collection
responsibilities for the calendar year of a merger are described below.
Under all the scenarios, if the merger results in a covered institution,
that institution must begin data collection January 1 of the following
calendar year. (Appendix A of this part, Paragraph I.)
i. Two institutions are exempt from Regulation C because of asset
size. The institutions merge. No data collection is required for the
year of the merger (even if the merger results in a covered
institution).
ii. A covered institution and an exempt institution merge. The
covered institution is the surviving institution. For the year of the
merger, data collection is required for the covered institution's
transactions. Data collection is optional for transactions handled in
offices of the previously exempt institution.
iii. A covered institution and an exempt institution merge. The
exempt institution is the surviving institution, or a new institution is
formed. Data collection is required for transactions of the covered
institution that take place prior to the merger. Data collection is
optional for transactions taking place after the merger date.
iv. Two covered institutions merge. Data collection is required for
the entire year. The surviving or resulting institution files either a
consolidated submission or separate submissions for that year.
4. Mergers versus purchases in bulk. If a covered institution
acquires loans in bulk from another institution (for example, from the
receiver for a failed institution) but no merger or acquisition of an
institution is involved, the institution reports the loans as purchased
loans. (Appendix A of this part, Paragraph V.B.)
Section 203.4--Compilation of Loan Data
4(a) Data format and itemization.
1. Quarterly updating. An institution must make a good-faith effort
to record all data concerning covered transactions--loan originations
(including refinancings), loan purchases, and the disposition of
applications that did not result in originations--fully and accurately
within 30 days after the end of each calendar quarter. If some data are
inaccurate or incomplete despite this good-faith effort, the error or
omission is not a violation of Regulation C provided that the
institution corrects and completes the information prior to reporting
the HMDA-LAR to its regulatory agency. (Appendix A of this part,
Paragraph II.E.)
2. Updating--agency requirements. Certain state or federal
regulations, such as the Federal Deposit Insurance Corporation's
regulations, may require an institution to update its data more
frequently than is required under Regulation C. (Appendix A of this
part, Paragraph II.E.)
3. Form of updating. An institution may maintain the quarterly
updates of the HMDA-LAR in electronic or any other format, provided the
institution can make the information available to its regulatory agency
in a timely manner upon request. (Appendix A of this part, Paragraph
II.E.)
Paragraph 4(a)(1) Application date.
1. Application date--consistency. In reporting the date of
application, an institution reports the date the application was
received or the date shown on the application. Although an institution
need not choose the same approach for its entire HMDA submission, it
should be generally consistent (such as by routinely using one approach
within a particular division of the institution or for a category of
loans). (Appendix A of this part, Paragraph V.A.2.)
2. Application date--application forwarded by a broker. For an
application forwarded by a broker, an institution reports the date the
application was received by the broker, the date the application was
received by the institution, or the date shown on the application.
Although an institution need not choose the same approach for its entire
HMDA submission, it should be generally consistent (such as by routinely
using one approach within a particular division of the institution or
for a category of loans). (Appendix A of this part, Paragraph V.A.2.)
3. Application date--reinstated application. If, within the same
calendar year, an applicant asks an institution to reinstate a
counteroffer that the applicant previously did not accept (or asks the
institution to reconsider an application that was denied, withdrawn, or
closed for incompleteness), the institution may treat that request as
the continuation of the earlier transaction or as a new transaction. If
the institution treats the request for reinstatement or reconsideration
as a new transaction, it report the date of the request as the
application date. (Appendix A of this part, Paragraph V.A.2.)
Paragraph 4(a)(2) Type and purpose.
1. Purpose--multiple-purpose loan. If a loan is for home improvement
and another covered purpose, an institution reports the loan
[[Page 91]]
as a home-improvement loan if the institution classifies it as a home-
improvement loan. Otherwise the institution reports the loan as a home-
purchase loan or a refinancing, as appropriate. An institution may
determine how to report such loans on a case-by-case basis. (Appendix A
of this part, Paragraphs V.A.4. and 5.)
Paragraph 4(a)(3) Occupancy.
1. Occupancy--actual occupancy status. If a loan relates to
multifamily property, property located outside an MSA, or property in an
MSA where the institution has no home or branch office, the institution
may either report the actual occupancy status or report using the code
for ``not applicable.'' (A nondepository institution may be deemed to
have a home or branch office in an MSA under Sec. 203.2(c)(2) of
Regulation C.) (Appendix A of this part, Paragraph V.A.7.)
2. Occupancy--multiple properties. If a loan relates to multiple
properties, the institution reports the owner-occupancy status of the
property for which property location is being reported. (See the
comments to paragraphs 4(a)(6) Property location.) (Appendix A of this
part, Paragraphs V.A.6. and 7.)
Paragraph 4(a)(4) Loan amount.
1. Loan amount--counteroffer. If an applicant accepts a counteroffer
for an amount different from the amount initially requested, the
institution reports the loan amount granted. If an applicant does not
accept a counteroffer or fails to respond, the institution reports the
loan amount initially requested. (Appendix A of this part, Paragraph
V.A.8.f.)
2. Loan amount--multiple-purpose loan. Except in the case of a home-
equity line of credit, an institution reports the entire amount of the
loan, even if only a part of the proceeds is intended for home purchase
or home improvement. (Appendix A of this part, Paragraph V.A.8.)
3. Loan amount--home-equity line. An institution that reports home-
equity lines of credit reports only the part that is intended for home-
improvement or home-purchase purposes. An institution may rely on the
applicant's oral or written statement about the proposed use of the loan
proceeds. (Appendix A of this part, Paragraph V.A.8.c.)
4. Loan amount--assumption. An institution that enters into a
written agreement accepting a new party as the obligor on a loan reports
the amount of the outstanding principal on the assumption as the loan
amount. (Appendix A of this part, Paragraphs V.A.8.)
Paragraph 4(a)(5) Type of action taken and date.
1. Action taken--counteroffers. If an institution makes a
counteroffer to lend on terms different from the applicant's initial
request (for example, for a shorter loan maturity) and the applicant
does not accept the counteroffer or fails to respond, the institution
reports the action taken as a denial. (Appendix A of this part,
Paragraph V.B.)
2. Action taken--rescinded transactions. If a borrower rescinds a
transaction after closing, the institution, on a case-by-case basis, may
report the transaction either as an origination or as an application
that was approved but not accepted. (Appendix A of this part, Paragraph
V.B.)
3. Action taken--purchased loans. An institution reports the loans
that it purchased during the calendar year, and does not report the
loans that it declined to purchase. (Appendix A of this part, Paragraph
V.B.)
4. Action taken--conditional approvals. If an institution issues a
loan approval subject to the applicant's meeting underwriting conditions
(other than customary loan commitment or loan closing conditions, such
as a ``clear title'' requirement or an acceptable property survey) and
the applicant does not meet them, the institution reports the action
taken as a denial. (Appendix A of this part, Paragraph V.B.)
5. Action taken date--approved but not accepted. For a loan approved
by an institution but not accepted by the applicant, the institution
reports using any reasonable date, such as the approval date, the
deadline for accepting the offer, or the date the file was closed.
Although an institution need not choose the same approach for its entire
HMDA submission, it should be generally consistent (such as by routinely
using one approach within a particular division of the institution or
for a category of loans). (Appendix A of this part, Paragraph V.B.3.b.)
6. Action taken date--originations. For loan originations, an
institution generally reports the settlement or closing date. For loan
originations that an institution acquires through a broker, the
institution reports either the settlement or closing date, or the date
the institution acquired the loan from the broker. If the disbursement
of funds takes place on a date later than the settlement or closing
date, the institution may use the date of disbursement. For a
construction/permanent loan, the institution reports either the
settlement or closing date, or the date the loan converts to the
permanent financing. Although an institution need not choose the same
approach for its entire HMDA submission, it should be generally
consistent (such as by routinely using one approach within a particular
division of the institution or for a category of loans). (Appendix A of
this part, Paragraph V.B.3.)
Paragraph 4(a)(6) Property location.
1. Property location--multiple properties (home improvement/
refinance of home improvement). For a home-improvement loan, an
institution reports the property being improved. If more than one
property is being improved, the institution reports the location of one
of the properties or reports the loan using multiple entries on its
HMDA-
[[Page 92]]
LAR (with unique identifiers) and allocating the loan amount among the
properties. (Appendix A of this part, Paragraph V.C.)
2. Property location--multiple properties (home purchase/refinance
of home purchase). For a home-purchase loan, an institution reports the
property taken as security. If an institution takes more than one
property as security, the institution reports the location of the
property being purchased if there is just one. If the loan is to
purchase multiple properties and is secured by multiple properties, the
institution reports the location of one of the properties or reports the
loan using multiple entries on its HMDA-LAR (with unique identifiers)
and allocating the loan amount among the properties. (Appendix A of this
part, Paragraph V.C.)
3. Property location--loans purchased from another institution. The
requirement to report the property location by census tract in an MSA
where the institution has a home or branch office applies not only to
loan applications and originations but also to loans purchased from
another institution. This includes loans purchased from an institution
that did not have a home or branch office in that MSA and did not
collect the property location information. (Appendix A of this part,
Paragraph V.C.)
4. Property location--mobile or manufactured home. If information
about the potential site of a mobile or manufactured home is not
available, an institution reports using the code for ``not applicable.''
(Appendix A of this part, Paragraph V.C.)
5. Property location--use of BNA. At its option, an institution may
report property location by using a block numbering area (BNA). The U.S.
Census Bureau, in conjunction with state agencies, has established BNAs
as statistical subdivisions of counties in which census tracts have not
been established. BNAs are generally identified in census data by
numbers in the range 9501 to 9999.99. (Appendix A of this part,
Paragraph V.C.4.)
Paragraph 4(a)(7) Applicant and income data.
1. Applicant data--completion by applicant. An institution reports
the monitoring information as provided by the applicant. For example, if
an applicant checks the ``other'' box the institution reports using the
``other'' code. (Appendix A of this part, Paragraph V.D.)
2. Applicant data--completion by lender. If an applicant fails to
provide the requested information for an application taken in person,
the institution reports the data on the basis of visual observation or
surname. As stated in paragraph I.B.5 to Appendix B of this part, the
institution does not use the ``other'' code, but selects from the
categories listed on the form. (Appendix A of this part, Paragraph V.D.)
3. Applicant data--application completed in person. When an
applicant meets in person with a lender to complete an application that
was begun by mail or telephone, the institution must request the
monitoring information. If the meeting occurs after the application
process is complete, for example, at closing, the institution is not
required to obtain monitoring information. (Appendix A of this part,
Paragraph V.D.)
4. Applicant data--joint applicant. A joint applicant may enter the
government monitoring information on behalf of an absent joint
applicant. If the information is not provided, the institution reports
using the code for ``information not provided by applicant in mail or
telephone application.'' (Appendix A of this part, Paragraph V.D.)
5. Applicant data--video and other electronic application processes.
An institution that accepts applications through electronic media with a
video component treats the applications as taken in person and collects
the information about the race or national origin and sex of applicants.
An institution that accepts applications through electronic media
without a video component (for example, the Internet or facsimile)
treats the applications as accepted by mail. (Appendix A of this part,
Paragraph V.D.) (See Appendix B of this part for procedures to be used
for data collection.)
6. Income data--income relied upon. An institution reports the gross
annual income relied on in evaluating the creditworthiness of
applicants. For example, if an institution relies on an applicant's
salary to compute a debt-to-income ratio, but also relies on the
applicant's annual bonus to evaluate creditworthiness, the institution
reports the salary and the bonus to the extent relied upon. Similarly,
if an institution relies on the income of a cosigner to evaluate
creditworthiness, the institution includes this income to the extent
relied upon. But an institution does not include the income of a
guarantor who is only secondarily liable. (Appendix A of this part,
Paragraph V.D.5.)
7. Income data--co-applicant. If two persons jointly apply for a
loan and both list income on the application, but the institution relies
only on the income of one applicant in computing ratios and in
evaluating creditworthiness, the institution reports only the income
relied on. (Appendix A of this part, Paragraph V.D.5.)
8. Income data--loan to employee. An institution may report ``NA''
in the income field for loans to employees to protect their privacy,
even though the institution relied on their income in making its credit
decisions. (Appendix A of this part, Paragraph V.D.5.)
Paragraph 4(a)(8) Purchaser.
1. Type of purchaser--loan participation interests sold to more than
one entity. An institution that originates a loan, and then sells it to
more than one entity, reports the ``type of purchaser'' based on the
entity purchasing the greatest interest, if any. If an institution
[[Page 93]]
retains a majority interest it does not report the sale. (Appendix A of
this part, Paragraph V.E.)
4(c) Optional data.
1. Agency requirements. Certain state or federal entities, such as
the Office of Thrift Supervision, require institutions to report the
reasons for denial even though this is optional reporting under HMDA and
Regulation C. (Appendix A of this part, Paragraph V.F.)
4(d) Excluded data.
1. Loan pool. The purchase of an interest in a loan pool (such as a
mortgage-participation certificate, a mortgage-backed security, or a
real estate mortgage investment conduit or ``REMIC'') is a purchase of
an interest in a security under HMDA and is not reported on the HMDA-
LAR. (Appendix A of this part, Paragraph IV.B.5.)
Section 203.5--Disclosure and Reporting
5(a) Reporting to agency.
1. Change in supervisory agency. If the supervisory agency for a
covered institution changes (as a consequence of a merger or a change in
the institution's charter, for example), the institution reports data to
its new supervisory agency for the year of the change and subsequent
years. (Appendix A of this part, Paragraphs I., III. and VI.)
2. Subsidiaries. An institution is a subsidiary of a bank or savings
association (for purposes of reporting HMDA data to the parent's
supervisory agency) if the bank or savings association holds or controls
an ownership interest that is greater than 50 percent of the
institution. (Appendix A of this part, Paragraph I.E. and VI.)
5(e) Notice of availability.
1. Poster--suggested text. The suggested wording of the poster text
provided in Appendix A of this part is optional. An institution may use
other text that meets the requirements of the regulation. (Appendix A of
this part, Paragraph III.F.)
Section 203.6--Enforcement
6(b) Bona fide errors.
1. Bona fide error--information from third parties. An institution
that obtains the property location information for applications and
loans from third parties (such as appraisers or vendors of ``geocoding''
services) is responsible for ensuring that the information reported on
its HMDA-LAR is correct. An incorrect entry for a census tract number is
a bona fide error, and is not a violation of the act or regulation,
provided that the institution maintains reasonable procedures to avoid
such errors (for example, by conducting periodic checks of the
information obtained from these third parties). (Appendix A of this
part, Paragraph V.C.)
|
||||||||||||||||||||||||||||