FINAL_3133-0166_ Supporting Statement_033117

SUPPORTING STATEMENT
National Credit Union Administration
Recordkeeping, Reporting, and Disclosure Requirements
Associated with the Home Mortgage Disclosure Act (HMDA), 12 U.S.C. 2801 et seq.,
As implemented by Regulation C, 12 CFR 1003
(OMB Control No. 3133-0166)
INTRODUCTION
NCUA requests OMB approval to extend for three years the currently approved collection
captioned above. The clearance being requested is for the information collection imposed by the
Consumer Financial Protection Bureau’s (CFPB) Regulation C, which implements HMDA, and
applicable to federally insured credit unions supervised by NCUA pursuant to the asset-size
threshold established by Regulation C.
A.

JUSTIFICATION

1.

Necessity of Information Collection
HMDA was enacted in 1975 and requires most mortgage lenders lending in metropolitan
areas to collect data about their housing-related lending activity. Historically, HMDA
has been implemented by the Board of Governors of the Federal Reserve System’s (FRB)
Regulation C, 12 CFR Part 203. Congress has periodically modified the law, and FRB
has routinely updated Regulation C. The Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 transferred FRB’s rulemaking authority for HMDA to CFPB.
Regulation C, 12 CFR Part 1003, requires financial institutions that meet certain
thresholds to report data annually about:
• Each application or loan, including the application date; the action taken and the date
of that action; the loan amount; the loan type (for example, government guaranteed or
not) and purpose (for example, home purchase); and, if the loan is sold, the type of
purchaser;
• Each applicant or borrower, including ethnicity, race, sex, and income; and
• Each property, including location and occupancy status.
A covered lender generally must update information quarterly – all reportable transaction
must be recorded within 30 calendar days after the end of the calendar quarter in which
final action is taken on a loan application register (LAR) – and must submit the
completed LAR annually to the appropriate Federal agency by March 1 of the year
following the year covered by the LAR. Institutions that submit incorrect information
may be required to correct and resubmit the information. The Federal Financial
Institutions Examination Council (FFIEC) then prepares a disclosure statement from data
submitted by the financial institutions, and provides the disclosure statement to the
financial institution. Within three business days of receiving its statement, the financial
institution must make a copy available at its home office. In addition, within ten business

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days of receiving its disclosure statement, the financial institution must either: (1) make
the disclosure statement available in at least one branch office in every Metropolitan
Statistical Area (MSA) and Metropolitan Division (Division) where it has an office or (2)
post a notice in at least one branch office per MSA and Division where it has an office
stating that the disclosure statement is available upon written request. A covered lender
must make each public disclosure statement available to the public for five years.
Each financial institution must retain its completed LAR for three years and during that
period it must make its LAR available to the public after redacting certain information to
protect the privacy of its applicants and borrowers.
2.

Purpose and Use of the Information Collection
HMDA was enacted to provide the public with loan data that can be used to: (1) help
determine whether financial institutions are serving the housing needs of their
communities; (2) assist public officials in distributing public-sector investments so as to
attract private investment to areas where it is needed; and (3) assist in identifying possible
discriminatory lending patterns and enforcing anti-discrimination statutes.
The information collection will assist NCUA’s examiners, and examiners of other federal
supervisory agencies, in determining that the financial institutions they supervise comply
with the applicable provisions of HMDA.

3.

Consideration Given to Information Technology
FFIEC provides credit unions with HMDA Data Entry Software, which can be used to
collect and submit the information. Credit unions may submit the information via the
internet, electronic mail, disk, or paper copy. (Paper copies are permissible only if the
credit union has fewer than 25 reportable loans.)

4.

Duplication
The information collected is not duplicated elsewhere.

5.

Effect on Small Entities
The collection imposes on credit unions, regardless of size, only the minimum burden
necessary for compliance with HMDA.

6.

Consequences of Not Conducting Collection
HMDA requires the annual collection of the information. In the absence of this
collection, the government would not have the information necessary to determine
compliance with HMDA or to prepare the reports required to be provided to the public
under HMDA.

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7.

Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)
There are no special circumstances. This collection is consistent with the guidelines in 5
CFR 1320.5(d)(2).

8.

Consultations Outside the Agency
The required Federal Register notice with a 60-day comment period soliciting comments
on this collection of information was published on January 25, 2017, at 82 FR 8437. No
comments were received in response to this notice.

9.

Payment or Gift
There is no intent by NCUA to provide payments or gifts for information collected.

10.

Confidentiality
There is no assurance of confidentiality other than that provided by law. The records
kept under this information collection are maintained by credit unions and reported
annually. Regulation C requires this information to be made available to the public
except for the fields that are redacted to protect the identities of the individual applicants.

11.

Sensitive Questions
The information collected contains material that might be considered sensitive in nature,
including loan number, Census tract, race and ethnicity, sex, and annual income. When
the information is disclosed to the public, it is redacted to omit the dates of the
application, dates of decisions on applications, and application numbers to prevent
identification of individual applicants. The purpose of collecting this information is to
assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes.

12.

Burden of Information Collection
Averaging the number of federally insured credit union respondents filing HMDA LAR
and the total number of reportable HMDA loans for calendar years 2012 and 2013,
NCUA estimates the following burden hours and cost. The estimated burden arises
exclusively from the regulation and is shown in the table below.

Estimated # of
Respondents

Estimated # of
Loan
Applications

Estimated
Annual
Frequency

Estimated
Avg. Hours
per Response

Estimated
Annual Burden

Estimated
Hourly $
Rate

Total $
Amount

1,967

894,500

1

5 minutes

74,542

$35

$2,608,958

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13.

Costs to Respondents
Other than the costs to respondents that are associated with the usual and customary
business practice, there are no capital start-up costs or ongoing operation and
maintenance costs associated with this information collection.

14.

Costs to Federal Government
The total annual cost, which includes, among other things, processing the information
generated by the collection, producing a disclosure statement for each financial
institution, and producing aggregate data for each MSA, is allocated among the FFIEC
member agencies and the Department of Housing and Urban Development. The cost
allocated to NCUA is approximately $550,000.

15.

Changes in Burden
The number of federally insured credit union filing HMDA LAR and the total number of
reportable HMDA loans have been adjusted to reflect the numbers obtained for calendar
years 2012 and 2013. The decrease of 20,688 burden hours is due to an adjustment.
Total of 74,542 burden hours requested.

16.

Information Collection Planned for Statistical Purposes
The information collected is for use by NCUA’s examination program and for disclosure
to the public upon request after deletion of certain sensitive data elements. The
information is not published by NCUA.

17.

Approval to Omit OMB Expiration Date
The OMB control number and expiration date associated with this PRA submission will
be displayed on the Federal government’s electronic PRA docket at www.reginfo.gov, as
well as in the Federal Register notice of the submission.

18.

Exceptions to Certification for Paperwork Reduction Act Submissions
This collection complies with the requirements in 5 CFR 1320.9.

B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS

This collection does not involve statistical methods.

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