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12 CFR Ch. II (1–1–12 Edition)
under § 202.13(d) may use the form as issued,
in compliance with that substitute program.
for the National Credit Union Administration is 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 investment 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, savings associations, credit
unions, and other mortgage lending institutions, as defined in § 203.2(e). The
regulation requires an institution to
report data to its supervisory agency
about home purchase loans, home improvement loans, and refinancings that
it originates or purchases, or for which
it receives applications; and to disclose
certain data to the public.
APPENDIX C—SAMPLE NOTIFICATION FORMS
1. Form C–9. Creditors may design their
own form, add to, or modify the model form
to reflect their individual policies and procedures. For example, a creditor may want to
add:
i. A telephone number that applicants may
call to leave their name and the address to
which an appraisal report should be sent.
ii. A notice of the cost the applicant will
be required to pay the creditor for the appraisal or a copy of the report.
[Reg. B, 68 FR 13161, Mar. 18, 2003, as amended at 72 FR 63451, Nov. 9, 2007; 72 FR 71057,
Dec. 14, 2007; 76 FR 41602, July 15, 2011]
PART 203—HOME MORTGAGE
DISCLOSURE (REGULATION C)
Sec.
203.1 Authority, purpose, and scope.
203.2 Definitions.
203.3 Exempt institutions.
203.4 Compilation of loan data.
203.5 Disclosure and reporting.
203.6 Enforcement.
APPENDIX A TO PART 203—FORM AND INSTRUCTIONS FOR COMPLETION OF HMDA LOAN/
APPLICATION REGISTER
APPENDIX B TO PART 203—FORM AND INSTRUCTIONS FOR DATA COLLECTION ON ETHNICITY, RACE, AND SEX
SUPPLEMENT I TO PART 203—STAFF COM-
§ 203.2 Definitions.
In this regulation:
(a) Act means the Home Mortgage
Disclosure Act (‘‘HMDA’’) (12 U.S.C.
2801 et seq.), as amended.
(b) Application—(1) In general. Application means an oral or written request for a home purchase loan, a home
improvement loan, or a refinancing
that is made in accordance with procedures used by a financial institution
for the type of credit requested.
(2) Preapproval programs. A request
for preapproval for a home purchase
loan is an application under paragraph
(b)(1) of this section if the request is reviewed under a program in which the
financial institution, after a comprehensive analysis of the creditworthiness of the applicant, issues a
written commitment to the applicant
valid for a designated period of time to
extend a home purchase loan up to a
specified amount. The written commitment may not be subject to conditions
other than:
MENTARY
AUTHORITY: 12 U.S.C. 2801–2810.
SOURCE: Reg. C, 67 FR 7236, Feb. 15, 2002,
unless otherwise noted.
§ 203.1 Authority, purpose, and scope.
(a) Authority. This regulation is
issued by the Board of Governors of the
Federal Reserve System (‘‘Board’’) pursuant to the Home Mortgage Disclosure Act (‘‘HMDA’’) (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 (‘‘OMB’’) under 44
U.S.C. 3501 et seq. and have been assigned OMB numbers for institutions
reporting data to the Office of the
Comptroller of the Currency (1557–0159),
the Federal Deposit Insurance Corporation (3064–0046), the Office of Thrift Supervision (1550–0021), the Federal Reserve System (7100–0247), and the Department of Housing and Urban Development (‘‘HUD’’) (2502–0529). A number
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Federal Reserve System
§ 203.2
(i) Conditions that require the identification of a suitable property;
(ii) Conditions that require that no
material change has occurred in the
applicant’s financial condition or creditworthiness prior to closing; and
(iii) Limited conditions that are not
related to the financial condition or
creditworthiness of the applicant that
the lender ordinarily attaches to a traditional home mortgage application
(such as certification of a clear termite
inspection).
(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 freestanding electronic terminals such as
automated teller machines; and
(2) Any office of a for-profit mortgage-lending institution (other than a
bank, savings association, or credit
union) that takes applications from the
public for home purchase loans, home
improvement loans, or refinancings. A
for-profit mortgage-lending institution
is also deemed to have a branch office
in an MSA or in a Metropolitan Division, if, in the preceding calendar year,
it received applications for, originated,
or purchased five or more home purchase loans, home improvement loans,
or refinancings related to property located in that MSA or Metropolitan Division, respectively.
(d) Dwelling means a residential
structure (whether or not 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:
(i) On the preceding December 31 had
assets in excess of the asset threshold
established and published annually by
the Board for coverage by the act,
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;
(ii) On the preceding December 31,
had a home or branch office in an MSA;
(iii) In the preceding calendar year,
originated at least one home purchase
loan (excluding temporary financing
such as a construction loan) or refinancing of a home purchase loan, secured by a first lien on a one-to fourfamily dwelling; and
(iv) Meets one or more of the following three criteria:
(A) The institution is federally insured or regulated;
(B) The mortgage loan referred to in
paragraph (e)(1)(iii) of this section was
insured, guaranteed, or supplemented
by a federal agency; or
(C) The mortgage loan referred to in
paragraph (e)(1)(iii) of this section was
intended by the institution for sale to
Fannie Mae or Freddie Mac; and
(2) A for-profit mortgage-lending institution (other than a bank, savings
association, or credit union) that:
(i) In the preceding calendar year, either:
(A) Originated home purchase loans,
including refinancings of home purchase loans, that equaled at least 10
percent of its loan-origination volume,
measured in dollars; or
(B) Originated home purchase loans,
including refinancings of home purchase loans, that equaled at least $25
million; and
(ii) On the preceding December 31,
had a home or branch office in an MSA;
and
(iii) Either:
(A) On the preceding December 31,
had total assets of more than $10 million, counting the assets of any parent
corporation; or
(B) In the preceding calendar year,
originated at least 100 home purchase
loans, including refinancings of home
purchase loans.
(f) Home-equity line of credit means an
open-end credit plan secured by a
dwelling as defined in Regulation Z
(Truth in Lending), 12 CFR part 226.
(g) Home improvement loan means:
(1) A loan secured by a lien on a
dwelling that 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
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§ 203.3
12 CFR Ch. II (1–1–12 Edition)
(3) An institution that is exempt
under paragraph (a) of this section
shall use the disclosure form required
by its state law and shall submit the
data required by that law to its state
supervisory agency for purposes of aggregation.
(b) Loss of exemption. An institution
losing a state-law exemption under
paragraph (a) 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.
(2) A non-dwelling secured loan that
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 that is classified by the financial
institution as a home improvement
loan.
(h) Home purchase loan means a loan
secured by and made for the purpose of
purchasing a dwelling.
(i) Manufactured home means any residential structure as defined under regulations of the Department of Housing
and Urban Development establishing
manufactured home construction and
safety standards (24 CFR 3280.2).
(j)(1) Metropolitan Statistical Area
or MSA means a metropolitan statistical area as defined by the U.S. Office
of Management and Budget.
(2) Metropolitan Division or MD
means a metropolitan division of an
MSA, as defined by the U.S. Office of
Management and Budget.
(k) Refinancing means a new obligation that satisfies and replaces an existing obligation by the same borrower,
in which:
(1) For coverage purposes, the existing obligation is a home purchase loan
(as determined by the lender, for example, by reference to available documents; or as stated by the applicant),
and both the existing obligation and
the new obligation are secured by first
liens on dwellings; and
(2) For reporting purposes, both the
existing obligation and the new obligation are secured by liens on dwellings.
§ 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
loans, home improvement loans, and
refinancings for each calendar year. An
institution is required to collect data
regarding requests under a preapproval
program (as defined in § 203.2(b)) only if
the preapproval request is denied or results in the origination of a home purchase loan. All reportable transactions
shall be recorded, within thirty calendar days after the end of the 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. The data recorded shall include
the following items:
(1) An identifying number for the
loan or loan application, and the date
the application was received.
(2) The type of loan or application.
(3) The purpose of the loan or application.
(4) Whether the application is a request for preapproval and whether it
resulted in a denial or in an origination.
(5) The property type to which the
loan or application relates.
(6) The owner-occupancy status of
the property to which the loan or application relates.
(7) The amount of the loan or the
amount applied for.
(8) The type of action taken, and the
date.
(9) The location of the property to
which the loan or application relates,
by MSA or by Metropolitan Division,
[67 FR 7236, Feb. 15, 2002, as amended at 68
FR 74830, Dec. 29, 2003]
§ 203.3 Exempt institutions.
(a) 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 that 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 paragraph (a) of this section.
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Federal Reserve System
§ 203.5
by state, by county, and by census
tract, if the institution has a home or
branch office in that MSA or Metropolitan Division.
(10) The ethnicity, race, and sex of
the applicant or borrower, and the
gross annual income relied on in processing the application.
(11) The type of entity purchasing a
loan that the institution originates or
purchases and then sells within the
same calendar year (this information
need not be included in quarterly updates).
(12)(i) For originated loans subject to
Regulation Z, 12 CFR part 226, the difference between the loan’s annual percentage rate (APR) and the average
prime offer rate for a comparable
transaction as of the date the interest
rate is set, if that difference is equal to
or greater than 1.5 percentage points
for loans secured by a first lien on a
dwelling, or equal to or greater than 3.5
percentage points for loans secured by
a subordinate lien on a dwelling.
(ii) ‘‘Average prime offer rate’’ means
an annual percentage rate that is derived from average interest rates,
points, and other loan pricing terms
currently offered to consumers by a
representative sample of creditors for
mortgage loans that have low-risk
pricing characteristics. The Board publishes average prime offer rates for a
broad range of types of transactions in
tables updated at least weekly, as well
as the methodology the Board uses to
derive these rates.
(13) Whether the loan is subject to
the Home Ownership and Equity Protection Act of 1994, as implemented in
Regulation Z (12 CFR 226.32).
(14) The lien status of the loan or application (first lien, subordinate lien,
or not secured by a lien on a dwelling).
(b) Collection of data on ethnicity, race,
sex, and income. (1) A financial institution shall collect data about the ethnicity, race, and sex of the applicant or
borrower as prescribed in Appendix B
of this part.
(2) Ethnicity, race, sex, and income
data may but need not be collected for
loans purchased by the financial institution.
(c) Optional data. A financial institution may report:
(1) The reasons it denied a loan application;
(2) Requests for preapproval that are
approved by the institution but not accepted by the applicant; and
(3) Home-equity lines of credit made
in whole or in part for the purpose of
home improvement or home purchase.
(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,
mortgagebacked securities, or real estate mortgage investment conduits);
(5) The purchase solely of the right to
service loans; or
(6) Loans acquired as part of a merger or acquisition, or as part of the acquisition of all of the assets and liabilities of a branch office as defined in
§ 203.2(c)(1).
(e) Data reporting for banks and savings associations that are required to report data on small business, small farm,
and community development lending
under CRA. Banks and savings associations that are required to report data
on small business, small farm, and
community development lending under
regulations that implement the Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) shall also collect the
location of property located outside
MSAs and Metropolitan Divisions in
which the institution has a home or
branch office, or outside any MSA.
[67 FR 7236, Feb. 15, 2002, as amended at 67
FR 43223, June 27, 2002; 68 FR 74830, Dec. 29,
2003; 73 FR 63335, Oct. 24, 2008]
§ 203.5 Disclosure and reporting.
(a) Reporting to agency. (1) 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. The institution shall retain a
copy for its records for at least three
years.
(2) A subsidiary of a bank or savings
association shall complete a separate
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§ 203.6
12 CFR Ch. II (1–1–12 Edition)
loan/application register. The subsidiary shall submit the register, directly or through its parent, to the
agency that supervises its parent.
(b) Public disclosure of statement. (1)
The Federal Financial Institutions Examination Council (‘‘FFIEC’’) will prepare a disclosure statement from the
data each financial institution submits.
(2) An institution shall make its disclosure statement (prepared by the
FFIEC) available to the public at its
home office no later than three business days after receiving it from the
FFIEC.
(3) In addition, an institution shall
either:
(i) Make its disclosure statement
available to the public, within ten business days of receiving it, in at least one
branch office in each other MSA and
each other Metropolitan Division
where the institution has offices (the
disclosure statement need only contain
data relating to the MSA or Metropolitan Division where the branch is located); or
(ii) Post the address for sending written requests in the lobby of each
branch office in other MSAs and Metropolitan Divisions 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 or Metropolitan Division 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 modified loan/
application register. A financial institution shall make its loan/application
register available to the public after
removing the following information regarding each entry: the application or
loan number, the date that the application was received, and the date action
was taken. 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 thirty calendar days for a
request received after March 1. The
modified register need only contain
data relating to the MSA or Metropoli-
tan Division 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 and Metropolitan Division. An institution shall provide promptly upon
request the location of the institution’s offices where the statement is
available for inspection and copying, or
it may include the location in the
lobby notice.
(f) Loan aggregation and central data
depositories. Using the loan data submitted by financial institutions, the
FFIEC will produce reports for individual institutions and reports of aggregate data for each MSA and Metropolitan Division, showing lending patterns by property location, age of housing stock, and income level, sex, ethnicity, and race. These reports will be
available to the public at central data
depositories located in each MSA and
Metropolitan Division. A listing of central data depositories can be obtained
from the Federal Financial Institutions Examination Council, Washington, DC 20006.
[67 FR 7236, Feb. 15, 2002, as amended at 68
FR 74830, Dec. 29, 2003]
§ 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 section 305(b) of the Act (12 U.S.C.
2804(b).
(b) Bona fide errors. (1) An error in
compiling or recording loan data is not
a violation of the act or this regulation
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Federal Reserve System
Pt. 203, App. A
2. Date Application Received
if the error was unintentional and occurred despite the maintenance of procedures reasonably adapted to avoid
such errors.
(2) An incorrect entry for a census
tract number is deemed a bona fide
error, and is not a violation of the act
or this regulation, provided that the
institution maintains procedures reasonably adapted to avoid such errors.
(3) If an institution makes a goodfaith effort to record all data concerning covered transactions fully and
accurately within thirty calendar days
after the end of each calendar quarter,
and some data are nevertheless inaccurate or incomplete, the error or
omission is not a violation of the act or
this regulation provided that the institution corrects or completes the information prior to submitting the loan/application register to its regulatory
agency.
a. Enter the date the loan application was
received by your institution by month, day,
and year. 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. For paper submissions only, use numerals in the form MM/DD/CCYY (for example,
01/15/2003). For submissions in electronic
form, the proper format is CCYYMMDD.
3. Type of Loan or Application
Indicate the type of loan or application by
entering the applicable code from the following:
Code 1—Conventional (any loan other than
FHA, VA, FSA, or RHS loans)
Code 2—FHA-insured (Federal Housing Administration)
Code 3—VA-guaranteed (Veterans Administration)
Code 4—FSA/RHS-guaranteed (Farm Service
Agency or Rural Housing Service)
4. Property Type
Indicate the property type by entering the
applicable code from the following:
Code 1—One-to four-family dwelling (other
than manufactured housing)
Code 2—Manufactured housing
Code 3—Multifamily dwelling
a. Use Code 1, not Code 3, for loans on individual condominium or cooperative units.
b. If you cannot determine (despite reasonable efforts to find out) whether the loan or
application relates to a manufactured home,
use Code 1.
APPENDIX A TO PART 203—FORM AND INSTRUCTIONS FOR COMPLETION OF
HMDA
LOAN/APPLICATION
REGISTER
PAPERWORK REDUCTION ACT NOTICE
This report is required by law (12 U.S.C.
2801–2810 and 12 CFR 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 valid Office of
Management and Budget (OMB) Control
Number. See 12 CFR 203.1(a) for the valid
OMB Control Numbers, applicable to this information collection. 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 OMB, Office of Information and Regulatory Affairs,
Paperwork Reduction Project, Washington,
DC 20503. Be sure to reference the applicable
agency and the OMB Control Number, as
found in 12 CFR 203.1(a), when submitting
comments to OMB.
5. Purpose of Loan or Application
Indicate the purpose of the loan or application by entering the applicable code from the
following:
Code 1—Home purchase
Code 2—Home improvement
Code 3—Refinancing
a. Do not report a refinancing if, under the
loan agreement, you were unconditionally
obligated to refinance the obligation, or you
were obligated to refinance the obligation
subject to conditions within the borrower’s
control.
I. INSTRUCTIONS FOR COMPLETION OF LOAN/
APPLICATION REGSITER
6. Owner Occupancy
Indicate whether the property to which the
loan or loan application relates is to be
owner-occupied as a principal residence by
entering the applicable code from the following:
Code 1—Owner-occupied as a principal dwelling
Code 2—Not owner-occupied as a principal
dwelling
Code 3—Not applicable
A. Application or Loan Information
1. Application or Loan Number
a. Enter an identifying loan number that
can be used later to retrieve the loan or application file. It can be any number of your
institution’s choosing (not exceeding 25 characters). You may use letters, numerals, or a
combination of both.
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Pt. 203, App. A
12 CFR Ch. II (1–1–12 Edition)
B. Action Taken
a. For purchased loans, use Code 1 unless
the loan documents or application indicate
that the property will not be owner-occupied
as a principal residence.
b. Use Code 2 for second homes or vacation
homes, as well as for rental properties.
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
or an MD in which your institution has neither a home nor a branch office. Alternatively, at your institution’s option, you
may report the actual occupancy status,
using Code 1 or 2 as applicable.
1. Type of Action
Indicate the type of action taken on the
application or loan by using one of the following codes.
Code 1—Loan originated
Code 2—Application approved but not accepted
Code 3—Application denied
Code 4—Application withdrawn
Code 5—File closed for incompleteness
Code 6—Loan purchased by your institution
Code 7—Preapproval request denied
Code 8—Preapproval request approved but
not accepted (optional reporting)
a. Use Code 1 for a loan that is originated,
including one resulting from a request for
preapproval.
b. For a counteroffer (your offer to the applicant to make the loan on different terms
or in a different amount from the terms or
amount applied for), use Code 1 if the applicant accepts. Use Code 3 if the applicant
turns down the counteroffer or does not respond.
c. Use Code 2 when the application is approved but the applicant (or the loan broker
or correspondent) fails to respond to your
notification of approval or your commitment
letter within the specified time. Do not use
this code for a preapproval request.
d. Use Code 4 only when the application is
expressly withdrawn by the applicant before
a credit decision is made. Do not use code 4
if a request for preapproval is withdrawn;
preapproval requests that are withdrawn are
not reported under HMDA.
e. Use Code 5 if you sent a written notice
of incompleteness under § 202.9(c)(2) of Regulation B (Equal Credit Opportunity) and the
applicant did not respond to your request for
additional information within the period of
time specified in your notice. Do not use this
code for requests for preapproval that are incomplete; these preapproval requests are not
reported under HMDA.
7. 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 (round $500 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 a home purchase loan that you
originated, enter the principal amount of the
loan.
b. For a home purchase loan that you purchased, enter the unpaid principal balance of
the loan at the time of purchase.
c. For a home improvement loan, enter the
entire amount of the loan—including unpaid
finance charges if that is how such loans are
recorded on your books—even if only a part
of the proceeds is intended for home improvement.
d. If you opt to report home-equity lines of
credit, report only the portion of the line intended for home improvement or home purchase.
e. For refinancings, indicate the total
amount of the refinancing, including both
the amount outstanding on the original loan
and any amount of ‘‘new money.’’
f. For a loan application that was denied or
withdrawn, enter the amount applied for.
8. Request for Preapproval of a Home Purchase Loan
Indicate whether the application or loan
involved a request for preapproval of a home
purchase loan by entering the applicable
code from the following:
2. 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/
2003). For submissions in electronic form, the
proper format is CCYYMMDD.
a. For loans originated, enter the settlement or closing date.
b. For loans purchased, enter the date of
purchase by your institution.
c. For applications and preapprovals denied, applications and preapprovals 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.
Code 1—Preapproval requested
Code 2—Preapproval not requested
Code 3—Not applicable
a. Enter code 2 if your institution has a
covered preapproval program but the applicant does not request a preapproval.
b. Enter code 3 if your institution does not
have a preapproval program as defined in
§ 203.2(b).
c. Enter code 3 for applications or loans for
home improvement or refinancing, and for
purchased loans.
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d. For applications withdrawn, enter the
date you received the applicant’s express
withdrawal, or enter the date shown on the
notification from the applicant, in the case
of a written withdrawal.
e. For preapprovals that lead to a loan
origination, enter the date of the origination.
ment Lending Under the CRA Regulations. If
your institution is a bank or savings association that is required to report data under the
regulations that implement the CRA, you
must enter the property location on your
HMDA/LAR even if the property is outside
the MSAs or MDs in which you have a home
or branch office, or is not located in any
MSA.
C. Property Location. Except as otherwise
provided, enter in these columns the applicable codes for the MSA, or the MD if the MSA
is divided into MDs, state, county, and census tract to indicate the location of the property to which a loan relates.
1. MSA or Metropolitan Division. For each
loan or loan application, enter the MSA, or
the MD number if the MSA is divided into
MDs. MSA and MD boundaries are defined by
OMB; use the boundaries that were in effect
on January 1 of the calendar year for which
you are reporting. A listing of MSAs and
MDs is available from your supervisory agency or the FFIEC.
7. Requests for Preapproval
Notwithstanding paragraphs 1 through 6, if
the application is a request for preapproval
that is denied or that is approved but not accepted by the applicant, you may enter
‘‘NA’’ in all four columns.
D. Applicant Information—Ethnicity, Race, Sex,
and Income
Appendix B contains instructions for the
collection of data on ethnicity, race, and sex,
and also contains a sample form for data collection.
2. State and County
1. Applicability
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 supervisory agency or the
FFIEC.
3. Census Tract. Indicate the census tract
where the property is located. Notwithstanding paragraph 6, if the property is located in a county with a population of 30,000
or less in the 2000 Census, enter ‘‘NA’’ (even
if the population has increased above 30,000
since 2000), or enter the census tract number.
County population data can be obtained from
the U.S. Census Bureau.
4. Census Tract Number. For the census
tract number, consult the resources provided
by the U.S. Census Bureau or the FFIEC.
5. Property Located Outside MSAs or Metropolitan Divisions. For loans on property located outside the MSAs and MDs in which an
institution has a home or branch office, or
for property located outside of any MSA or
MD, the institution may choose one of the
following two options. Under option one, the
institution may enter the MSA or MD, state
and county codes and the census tract number; and if the property is not located in any
MSA or MD, it may enter ‘‘NA’’ in the MSA
or MD column. (Codes exist for all states and
counties and numbers exist for all census
tracts.) Under this first option, the codes and
census tract number must accurately identify the property location. Under the second
option, which is not available if paragraph 6
applies, an institution may enter ‘‘NA’’ in all
four columns, whether or not the codes or
numbers exist for the property location.
6. Data Reporting for Banks and Savings Associations Required to Report Data on Small
Business, Small Farm, and Community Develop-
Report this 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, use the Codes for ‘‘not applicable.’’
b. If the borrower or applicant is not a natural person (a corporation or partnership, for
example), use the Codes for ‘‘not applicable.’’
2. Mail, Internet, or Telephone Applications.
All loan applications, including applications
taken by mail, Internet, or telephone must
use a collection form similar to that shown
in appendix B regarding ethnicity, race, and
sex. For applications taken by telephone, the
information in the collection form must be
stated orally by the lender, except for information that pertains uniquely to applications taken in writing. If the applicant does
not provide these data in an application
taken by mail or telephone or on the Internet, enter the code for ‘‘information not provided by applicant in mail, Internet, or telephone application’’ specified in paragraphs
I.D.3., 4., and 5. of this appendix. (See appendix B for complete information on the collection of these data in mail, Internet, or telephone applications.)
3. Ethnicity of Borrower or Applicant
Use the following codes to indicate the ethnicity of the applicant or borrower under
column ‘‘A’’ and of any co-applicant or coborrower under column ‘‘CA.’’
Code 1—Hispanic or Latino
Code 2—Not Hispanic or Latino
Code 3—Information not provided by applicant in mail, Internet, or telephone application
Code 4—Not applicable
Code 5—No co-applicant
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12 CFR Ch. II (1–1–12 Edition)
4. Race of Borrower or Applicant
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.’’
d. If the applicant or co-applicant is not a
natural person or the applicant or co-applicant information is unavailable because the
loan has been purchased by your institution,
enter ‘‘NA.’’
Use the following Codes to indicate the
race of the applicant or borrower under column ‘‘A’’ and of any co-applicant or co-borrower under column ‘‘CA.’’
Code 1—American Indian or Alaska Native
Code 2—Asian
Code 3—Black or African American
Code 4—Native Hawaiian or Other Pacific Islander
Code 5—White
Code 6—Information not provided by applicant in mail, Internet, or telephone application
Code 7—Not applicable
Code 8—No co-applicant
a. If an applicant select more than one racial designation, enter all Codes corresponding to the applicant’s selections.
b. Use code 4 (for ethnicity) and code 7 (for
race) for ‘‘not applicable’’ only when the applicant or co-applicant is not a natural person or when applicant or co-applicant information is unavailable because the loan has
been purchased by your institution.
c. If there is more than one co-applicant,
provide the required information only for the
first co-applicant listed on the application
form. If there are no co-applicants or co-borrowers, use Code 5 (for ethnicity) and Code 8
(for race) for ‘‘no co-applicant’’ in the co-applicant column.
E. Type of Purchaser
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:
Code 0—Loan was not originated or was not
sold in calendar year covered by register
Code 1—Fannie Mae
Code 2—Ginnie Mae
Code 3—Freddie Mac
Code 4—Farmer Mac
Code 5—Private securitization
Code 6—Commercial bank, savings bank or
savings association
Code 7—Life insurance company, credit
union, mortgage bank, or finance company
Code 8—Affiliate institution
Code 9—Other type of purchaser
a. Use Code 0 for applications that were denied, withdrawn, or approved but not accepted by the applicant; and for files closed for
incompleteness.
b. Use Code 0 if you originated or purchased a loan and did not sell it during that
same calendar year. If you sell the loan in a
succeeding year, you need not report the
sale.
c. Use Code 2 if you conditionally assign a
loan to Ginnie Mae in connection with a
mortgage-backed security transaction.
d. Use Code 8 for loans sold to an institution affiliated with you, such as your subsidiary or a subsidiary of your parent corporation.
5. 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.’’
Code 1—Male
Code 2—Female
Code 3—Information not provided by applicant in mail, Internet, or telephone application
Code 4—Not applicable
Code 5—No co-applicant or co-borrower
a. Use code 4 for ‘‘not applicable’’ only
when the applicant or co-applicant is not a
natural person or when applicant or co-applicant information is unavailable because the
loan has been purchased by your institution.
b. If there is more than one co-applicant,
provide the required information only for the
first co-applicant listed on the application
form. If there are no co-applicants or co-borrowers, use Code 5 for ‘‘no co-applicant’’ in
the co-applicant column.
F. Reasons for Denial
1. You may report the reason for denial,
and you may indicate up to three reasons,
using the following codes. 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.
Code 1—Debt-to-income ratio
Code 2—Employment history
Code 3—Credit history
Code 4—Collateral
Code 5—Insufficient cash (downpayment,
closing costs)
Code 6—Unverifiable information
Code 7—Credit application incomplete
Code 8—Mortgage insurance denied
Code 9—Other
6. Income
Enter the gross annual income that your
institution relied on 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 thousands. For example, report
$35,500 as 36.
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2. 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), use the foregoing codes as follows:
a. Code 1 for: Income insufficient for
amount of credit requested, and Excessive
obligations in relation to income.
b. Code 2 for: Temporary or irregular employment, and Length of employment.
c. Code 3 for: 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 for: Value or type of collateral
not sufficient.
e. Code 6 for: Unable to verify credit references; Unable to verify employment; Unable to verify income; and Unable to verify
residence.
f. Code 7 for: Credit application incomplete.
g. Code 9 for: Length of residence; Temporary residence; and Other reasons specified
on notice.
d. Enter the rate spread to two decimal
places, and use a leading zero. For example,
enter 03.29. If the difference between the
APR and the average prime offer rate is a
figure with more than two decimal places,
round the figure or truncate the digits beyond two decimal places.
e. If the difference between the APR and
the average prime offer rate is less than 1.5
percentage points for a first-lien loan and
less than 3.5 percentage points for a subordinate-lien loan, enter ‘‘NA.’’
2. Date the interest rate was set. The relevant date to use to determine the average
prime offer rate for a comparable transaction is the date on which the loan’s interest rate was set by the financial institution
for the final time before closing. If an interest rate is set pursuant to a ‘‘lock-in’’ agreement between the lender and the borrower,
then the date on which the agreement fixes
the interest rate is the date the rate was set.
If a rate is re-set after a lock-in agreement
is executed (for example, because the borrower exercises a float-down option or the
agreement expires), then the relevant date is
the date the rate is re-set for the final time
before closing. If no lock-in agreement is executed, then the relevant date is the date on
which the institution sets the rate for the
final time before closing.
G. Pricing-Related Data
3. HOEPA Status
1. Rate Spread
a. For a home-purchase loan, a refinancing,
or a dwelling-secured home improvement
loan that you originated, report the spread
between the annual percentage rate (APR)
and the average prime offer rate for a comparable transaction if the spread is equal to
or greater than 1.5 percentage points for
first-lien loans or 3.5 percentage points for
subordinate-lien loans. To determine whether the rate spread meets this threshold, use
the average prime offer rate in effect for the
type of transaction as of the date the interest rate was set, and use the APR for the
loan, as calculated and disclosed to the consumer under § 226.6 or 226.18, as applicable, of
Regulation Z (12 CFR part 226). Current and
historic average prime offer rates are set
forth in the tables published on the FFIEC’s
Web site (http://www.ffiec.gov/hmda) entitled
‘‘Average Prime Offer Rates—Fixed’’ and
‘‘Average Prime Offer Rates—Adjustable.’’
Use the most recently available average
prime offer rate. ‘‘Most recently available’’
means the average prime offer rate set forth
in the applicable table with the most recent
effective date as of the date the interest rate
was set. Do not use an average prime offer
rate before its effective date.
b. If the loan is not subject to Regulation
Z, or is a home improvement loan that is not
dwelling-secured, or is a loan that you purchased, enter ‘‘NA.’’
c. Enter ‘‘NA’’ in the case of an application
that does not result in a loan origination.
a. For a loan that you originated or purchased that is subject to the Home Ownership and Equity Protection Act of 1994
(HOEPA), as implemented in Regulation Z
(12 CFR 226.32), because the APR or the
points and fees on the loan exceed the
HOEPA triggers, enter Code 1.
b. Enter code 2 in all other cases. For example, enter code 2 for a loan that you originated or purchased that is not subject to the
requirements of HOEPA for any reason; also
enter code 2 in the case of an application
that does not result in a loan origination.
H. Lien Status
Use the following codes for loans that you
originate and for applications that do not result in an origination:
Code 1—Secured by a first lien.
Code 2—Secured by a subordinate lien.
Code 3—Not secured by a lien.
Code 4—Not applicable (purchased loan).
a. Use Codes 1 through 3 for loans that you
originate, as well as for applications that do
not result in an origination (applications
that are approved but not accepted, denied,
withdrawn, or closed for incompleteness).
b. Use Code 4 for loans that you purchase.
II. FEDERAL SUPERVISORY AGENCIES
A. You are strongly encouraged to submit
your loan/application register via Internet email. If you elect to use this method of
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Processing, (insert name of your institution’s regulatory agency), 20th & Constitution Ave, NW., MS N502, Washington, DC
20551–0001.
B. If your institution is regulated by the
Federal Reserve System, you should use the
Internet e-mail or regular mail address of
your district bank indicated on the Web site
of the FFIEC. If your institution is regulated
by the Department of Housing and Urban Development, then you should use the Internet
e-mail or regular mail address indicated on
the Web site of the FFIEC.
transmission and your institution is regulated by the Office of the Comptroller of the
Currency, the Federal Deposit Insurance
Corporation, the National Credit Union Administration, or the Office of Thrift Supervision, then you should submit your institution’s files to the Internet e-mail address
dedicated to that purpose by the Federal Reserve Board, which can be found on the Web
site of the FFIEC. If your institution is regulated by one of the foregoing agencies and
you elect to submit your data by regular
mail, then use the following address: HMDA,
Federal Reserve Board, Attention: HMDA
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85
Pt. 203, App. B
12 CFR Ch. II (1–1–12 Edition)
B. Inform the applicant that the federal
government requests 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.
C. You must offer the applicant the option
of selecting one or more racial designations.
D. If the applicant chooses not to provide
the information for an application taken in
person, note this fact on the form and then
note the applicant’s ethnicity, race, and sex
on the basis of visual observation and surname, to the extent possible.
E. If the applicant declines to answer these
questions or fails to provide the information
on an application taken by mail or telephone
or on the Internet, the data need not be provided. In such a case, indicate that the application was received by mail, telephone, or
Internet, if it is not otherwise evident on the
face of the application.
[67 FR 7236, Feb. 15, 2002, as amended at 67
FR 43223, June 27, 2002; 68 FR 74831, Dec. 29,
2003; 73 FR 63335, Oct. 24, 2008]
APPENDIX B TO PART 203—FORM AND INSTRUCTIONS FOR DATA COLLECTION
ON ETHNICITY, RACE, AND SEX
I. INSTRUCTIONS ON COLLECTION OF DATA ON
ETHNICITY, RACE, AND SEX
You may list questions regarding the ethnicity, race, 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 model language.)
II. PROCEDURES
A. You must ask the applicant for this information (but you cannot require the applicant to provide it) whether the application is
taken in person, by mail or telephone, or on
the Internet. For applications taken by telephone, the information in the collection
form must be stated orally by the lender, except for that information which pertains
uniquely to applications taken in writing.
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Pt. 203, Supp. I
12 CFR Ch. II (1–1–12 Edition)
[67 FR 7236, Feb. 15, 2002, as amended at 67
FR 43227, June 27, 2002]
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.
5. 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).
6. 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.
7. 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 preclosing
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 some other action reports that action.
8. 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
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.
9. 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.
SUPPLEMENT I TO PART 203—STAFF
COMMENTARY
INTRODUCTION
1. Status. 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).
Section 203.1—Authority, Purpose, and Scope
1(c) Scope. 1. General. The comments in this
section address issues affecting coverage of
institutions and exemptions from coverage.
2. 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. An institution that
makes a credit decision on an application
prior to closing reports that decision regardless of whose name the loan closes in.
3. 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.
4. 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
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 1) are generally applicable
to the definition of an application under
Regulation C. However, under Regulation C
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the definition of an application does not include prequalification requests.
2. Prequalification. A prequalification request is a request by a prospective loan applicant
(other
than
a
request
for
preapproval) for a preliminary determination on whether the prospective applicant
would likely qualify for credit under an institution’s standards, or for a determination
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 for purposes
of adverse action notices.
3. Requests for preapproval. To be a covered
preapproval program, the written commitment issued under the program must result
from a full review of the creditworthiness of
the applicant, including such verification of
income, resources and other matters as is
typically done by the institution as part of
its normal credit evaluation program. In addition to conditions involving the identification of a suitable property and verification
that no material change has occurred in the
applicant’s financial condition or creditworthiness, the written commitment may be
subject only to other conditions (unrelated
to the financial condition or creditworthiness of the applicant) that the lender ordinarily attaches to a traditional home mortgage application approval. These conditions
are limited to conditions such as requiring
an acceptable title insurance binder or a certificate indicating clear termite inspection,
and, in the case where the applicant plans to
use the proceeds from the sale of the applicant’s present home to purchase a new home,
a settlement statement showing adequate
proceeds from the sale of the present home.
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.)
2. Depository institution. A branch of a depository institution does not include a loanproduction office, the office of an affiliate, or
the office of a third party such as a loan
broker. (But see Appendix A, paragraph I.C.6,
which requires certain depository institutions to report property location even for
properties located outside those MSAs or
Metropolitan Divisions in which the institution has a home or branch office.)
3. Nondepository institution. For a nondepository institution, ‘‘branch office’’ does
not include the office of an affiliate or other
third party such as a loan broker. (But note
that certain nondepository institutions must
report property location even in MSAs or
Metropolitan Divisions where they do not
have a physical location.)
2(d) Dwelling. 1. Coverage. 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 multifamily structure such as an
apartment building.
2. Exclusions. Recreational vehicles such as
boats or campers are not dwellings for purposes of HMDA. Also excluded are transitory
residences such as hotels, hospitals, and college dormitories—whose occupants have
principal residences elsewhere.
2(e) Financial institution. 1. General. An institution that met the test for coverage
under HMDA in year 1, and then ceases to
meet the test (for example, because its assets
fall below the threshold on December 31 of
year 2) stops collecting HMDA data beginning with year 3. Similarly, an institution
that did not meet the coverage test for a
given year, and then meets the test in the
succeeding year, begins collecting HMDA
data in the calendar year following the year
in which it meets the test for coverage. For
example, a for-profit mortgage lending institution (other than a bank, savings association, or credit union) that, in year 1, falls
below
the
thresholds
specified
in
§ 203.2(e)(2)(ii)(A) and (B), but meets one of
them in year 2, need not collect data in year
2, but begins collecting data in year 3.
2. Adjustment of exemption threshold for depository institutions. For data collection in
2011, the asset-size exemption threshold is
$40 million. Depository institutions with assets at or below $40 million as of December
31, 2010 are exempt from collecting data for
2011.
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 I of the
following calendar year.
i. Two institutions are not covered by 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
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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. Originations. HMDA coverage depends in
part on whether an institution has originated home purchase loans. To determine
whether activities with respect to a particular loan constitute an origination, institutions should consult, among other parts of
the staff commentary, the discussion of the
broker rule under §§ 203.1(c) and 203.4(a).
5. Branches of foreign banks—treated as
banks. 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 § 203.2(e)(1) of
Regulation C.
6. Branches and offices of foreign banks—
treated as for-profit mortgage lending institutions. 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
25A 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 for-profit nondepository mortgage
lending institution found in § 203.2(e)(2) of
Regulation C.
2(g) Home improvement loan. 1. Classification requirement for loans not secured by a
lien on a dwelling. An institution has ‘‘classified’’ a loan that is not secured by a lien on
a dwelling 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).
2. 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).
3. Commercial and other loans. A home improvement loan may include a loan originated outside an institution’s residential
mortgage lending division (such as a loan to
improve an apartment building made
through the commercial loan department).
4. Mixed-use property. A loan to improve
property used for residential and commercial
purposes (for example, a building containing
apartment units and retail space) is a home
improvement loan if the loan proceeds are
used primarily to improve the residential
portion of the property. If the loan proceeds
are used to improve the entire property (for
example, to replace the heating system), the
loan is a home improvement loan 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. If
the loan is unsecured, to report the loan as
a home improvement loan the institution
must also have classified it as such.
5. Multiple-category loans. If a loan is a
home improvement loan as well as a refinancing, an institution reports the loan as a
home improvement loan.
2(h) Home purchase loan. 1. Multiple properties. A home purchase loan includes a loan
secured by one dwelling and used to purchase
another dwelling.
2. Mixed-use property. A dwelling-secured
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.
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.
4. Commercial and other loans. A home purchase loan may include 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).
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.
6. Second mortgages that finance the
downpayments on first mortgages. If an institution making a first mortgage loan to a home
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purchaser also makes a second mortgage
loan to the same purchaser to finance part or
all the home purchaser’s downpayment, the
institution reports each loan separately as a
home purchase loan.
7. Multiple-category loans. If a loan is a
home purchase loan as well as a home improvement loan, or a refinancing, an institution reports the loan as a home purchase
loan.
2(i) Manufactured home. 1. Definition of a
manufactured home. The definition in § 203.2(i)
refers to the federal building code for factory-built housing established by the Department of Housing and Urban Development
(HUD). The HUD code requires generally
that housing be essentially ready for occupancy upon leaving the factory and being
transported to a building site. Modular
homes that meet all of the HUD code standards are included in the definition because
they are ready for occupancy upon leaving
the factory. Other factory-built homes, such
as panelized and pre-cut homes, generally do
not meet the HUD code because they require
a significant amount of construction on site
before they are ready for occupancy. Loans
and applications relating to manufactured
homes that do not meet the HUD code should
not be identified as manufactured housing
under HMDA.
2(j) Metropolitan Statistical Areas and Metropolitan Divisions. 1. Use of terms ‘‘Metropolitan
Statistical Area’’ and ‘‘Metropolitan Division.’’
The U.S. Office of Management and Budget
defines Metropolitan Statistical Areas and
Metropolitan Divisions to provide nationally
consistent definitions for collecting, tabulating, and publishing Federal statistics for
a set of geographic areas. OMB divides every
Metropolitan Statistical Area (MSA) with a
population of 2.5 million or more into Metropolitan Divisions (MDs); MSAs with populations under 2.5 million population are not
so divided. 67 FR 82228 (December 27, 2000).
For all purposes under Regulation C, if an
MSA is divided by OMB into MDs, the appropriate geographic unit to be used is the MD;
if an MSA is not so divided by OMB into
MDs, the appropriate geographic unit to be
used is the MSA.
iii. In the case of brokered loan applications or applications forwarded through a
correspondent, the institution reports as
originations the loans that it approved and
subsequently acquired per a pre-closing arrangement (whether or not they closed in
the institution’s name). Additionally, the institution reports the data for all applications
that did not result in originations—for example, applications that the institution denied or that the applicant withdrew during
the calendar year covered by the report
(whether or not they would have closed in
the institution’s name). For all of these
loans and applications, the institution reports the required data regarding the borrower’s or applicant’s ethnicity, race, sex,
and income.
iv. Loan originations are to be reported
only once. If the institution is the loan
broker or correspondent, it does not report
as originations the loans that it 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 the institution’s name).
v. An institution reports applications that
were received in the previous calendar year
but were acted upon during the calendar
year covered by the current register.
vi. A financial institution submits all required data to its supervisory agency in one
package, with the prescribed transmittal
sheet. An officer of the institution certifies
to the accuracy of the data.
vii. The transmittal sheet states the total
number of line entries contained in the accompanying data transmission.
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.
3. Form of quarterly 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.
4. Transition rules for applications received
before January 1, 2004, when final action is
taken on or after January 1, 2004. For applications received before January 1, 2004, on
which final action is taken on or after January 1, 2004, data must be collected and reported on the HMDA/LAR under the revisions to Regulation C that take effect on
January 1, 2004, subject to the exceptions for
property type, loan purpose, requests for
preapproval, applicant information, and rate
spread set forth in this comment.
i. Property type. Lenders need not determine whether an application received before
January 1, 2004, involves a manufactured
home, and may report the property type as 1to 4-family.
Section 203.4—Compilation of Loan Data
4(a) Data Format and Itemization. 1. Reporting requirements.
i. An institution reports data on loans that
it originated and loans that it purchased
during the calendar year described in the report. An institution reports these data even
if the loans were subsequently sold by the institution.
ii. An institution reports the data for loan
applications that did not result in originations—for example, applications that the institution denied or that the applicant withdrew during the calendar year covered by the
report.
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12 CFR Ch. II (1–1–12 Edition)
(2) If the applicant’s race was identified as
Asian or Pacific Islander in 2003, use code 2
(Asian).
(3) If the applicant’s race was identified as
Hispanic in 2003, use code 7 (Not Applicable).
(4) If the applicant’s race was identified as
Other in 2003, use code 7 (Not Applicable).
(5) If the applicant did not provide information on race in a mail, Internet, or telephone application (code 7) in 2003, use code 6
(Information not provided by applicant in
mail, Internet, or telephone application).
(6) If the applicant’s race was identified as
Not Applicable (code 8) in 2003, use code 7
(Not Applicable).
(C) Sex. For applications received before
January 1, 2004, in which there is no co-applicant, the lender may use code 4 (Not Applicable) in the field provided for the co-applicant’s sex.
v. Rate Spread. For applications received
before January 1, 2004, in which the rate lock
occurred before January 1, 2004, lenders may
report NA (Not Applicable) for rate spread.
For applications received before January 1,
2004, for which the rate lock occurred after
January 1, 2004, lenders must calculate and
report the rate spread in accordance with the
rules set forth in new section 202.4(a)(12) (see
67 FR 7222 (Feb. 15, 2002); 67 FR 43223 (June
27, 2002)).
(A) Example: Assume an application is received on December 1, 2003; the rate lock occurs on December 26, 2003, and the loan is
originated on January 15, 2004. The lender
may report NA (Not Applicable) for rate
spread.
(B) Example: Assume an application is received on December 15, 2003; the rate lock occurs on January 3, 2004, and the loan is originated on January 15, 2004. The lender must
calculate and report the rate spread in accordance with the rules in new section
202.4(a)(12) (see 67 FR 7222 (Feb. 15, 2002); 67
FR 43223 (June 27, 2002)).
4(a)(1) Application number and 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).
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
ii. Loan purpose. For applications received
before January 1, 2004, lenders may use the
definitions of a home improvement loan and
a refinancing that were in effect in 2003. For
example, a lender need not report data on an
application received before January 1, 2004,
for a dwelling-secured loan made for the purpose of home improvement, if the lender did
not classify the loan as a home improvement
loan. Similarly, a lender may report data on
an application for a refinancing received in
2003, where the new obligation will be, but
the existing obligation was not, secured by a
lien on a dwelling.
iii. Requests for preapproval. For requests
received before January 1, 2004, lenders need
not report requests for preapproval (as that
term is defined in § 203.2(b)(2) of the revised
Regulation C) that do not result in a traditional loan application. Lenders may, at
their option, report requests for preapproval
that are denied or that are approved but not
accepted. In addition, lenders need not specify whether an application for a home purchase
loan
involved
a
request
for
preapproval, and should use code 3 (Not Applicable) in the preapproval field on the
HMDA/LAR.
iv. Applicant information. For applications
received before January 1, 2004, lenders must
collect data on race or national origin using
the categories in effect in 2003, and must
convert the data to the codes in effect in 2004
for reporting, using the following conversion
guide:
(A) Ethnicity. The revised Regulation C requires lenders to request an applicant’s ethnicity first (Hispanic or Latino, Not Hispanic
or Latino), and then to request the applicant’s race. The HMDA/LAR has been revised
accordingly, so that ethnicity and race are
distinct fields.
(1) If the applicant’s race was identified as
Hispanic (code 4) in 2003, use code 1 (Hispanic
or Latino) for reporting ethnicity.
(2) If the applicant’s race was identified as
American Indian or Alaskan Native, Asian or
Pacific Islander, Black, White, Other, or Not
Applicable (codes 1, 2, 3, 5, 6, or 8) in 2003, use
code 4 (Not Applicable) for reporting ethnicity.
(3) If the applicant did not provide information on race in a mail, Internet, or telephone application (code 7) in 2003, use code 3
(information not provided by applicant in
mail, Internet, or telephone application) for
reporting ethnicity.
(B) Race.
(1) If the applicant’s race was identified as
American Indian or Alaskan Native, Black,
or White in 2003, use the corresponding code
for 2004. For example, if the applicant’s race
was identified as Black (code 3) in 2003, use
code 3 (Black or African-American) for reporting race in 2004.
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approach within a particular division of the
institution or for a category of loans).
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 reports the
date of the request as the application date.
4. Application or loan number. An institution must ensure that each identifying number is unique within the institution. If an institution’s register contains data for branch
offices, for example, the institution 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. Institutions are strongly
encouraged not to use the applicant’s or borrower’s name or social security number, for
privacy reasons.
5. Application—year action taken. An institution must report an application in the calendar year in which the institution takes
final action on the application.
Paragraph 4(a)(3) Purpose.
1. Purpose—statement of applicant. An institution may rely on the oral or written statement of an applicant regarding the proposed
use of loan proceeds. For example, a lender
could use a check-box, or a purpose line, on
a loan application to determine whether or
not the applicant intends to use loan proceeds for home improvement purposes.
2. Purpose—multiple-purpose loan. If a loan
is a home purchase loan as well as a home
improvement loan, or a refinancing, an institution reports the loan as a home purchase
loan. If a loan is a home improvement loan
as well as a refinancing, an institution reports the loan as a home improvement loan.
Paragraph 4(a)(6) Occupancy.
1. 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 paragraph 4(a)(9), Property location.)
Paragraph 4(a)(7) 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.
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.
3. Loan amount—home-equity line. An institution that has chosen to report home-equity lines of credit reports only the part that
is intended for home-improvement or homepurchase purposes.
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.
Paragraph 4(a)(8) 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 or
in a different amount) and the applicant does
not accept the counteroffer or fails to respond, the institution reports the action
taken as a denial on the original terms requested by the applicant.
2. Action taken—rescinded transactions. If a
borrower rescinds a transaction after closing, the institution may report the transaction either as an origination or as an application that was approved but not accepted.
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.
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.
5. Action taken date—approved but not accepted. For a loan approved by an institution
but not accepted by the applicant, the institution reports 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).
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
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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). Notwithstanding this flexibility regarding the
use of the closing date in connection with reporting the date action was taken, the year
in which an origination goes to closing is the
year in which the institution must report
the origination.
7. Action taken—pending applications. An institution does not report any loan application still pending at the end of the calendar
year; it reports that application on its register for the year in which final action is
taken.
Paragraph 4(a)(9) 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/
LAR (with unique identifiers) and allocating
the loan amount among the properties.
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.
3. Property location—loans purchased from
another institution. The requirement to report
the property location by census tract in an
MSA or Metropolitan Division 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 or Metropolitan Division and did not collect the
property-location information.
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.’’
Paragraph 4(a)(10) Applicant and income
data.
1. Applicant data—completion by applicant.
An institution reports the monitoring information as provided by the applicant. For ex-
ample, if an applicant checks the ‘‘Asian’’
box the institution reports using the
‘‘Asian’’ code.
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.
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, Internet, 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.
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, Internet, or telephone application.’’
5. Applicant data—video and other electronicapplication 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 ethnicity, race, 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.
6. Income data—income relied on. 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 debtto-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.
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.
8. Income data—loan to employee. An institution may report ‘‘NA’’ in the income field for
loans to its employees to protect their privacy, even though the institution relied on
their income in making its credit decisions.
Paragraph 4(a)(11) 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
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purchaser’’ based on the entity purchasing
the greatest interest, if any. If an institution
retains a majority interest, it does not report the sale.
2. Type of purchaser—swapped loans. Loans
‘‘swapped’’ for mortgage-backed securities
are to be treated as sales; the purchaser is
the type of entity receiving the loans that
are swapped.
Paragraph 4(a)(12) Rate spread information.
Paragraph 4(a)(12)(ii).
1. Average prime offer rate. Average prime
offer rates are annual percentage rates derived from average interest rates, points, and
other loan pricing terms offered to borrowers
by a representative sample of lenders for
mortgage loans that have low-risk pricing
characteristics. Other pricing terms include
commonly used indices, margins, and initial
fixed-rate periods for variable-rate transactions. Relevant pricing characteristics include a consumer’s credit history and transaction characteristics such as the loan-tovalue ratio, owner-occupant status, and purpose of the transaction. To obtain average
prime offer rates, the Board uses a survey of
lenders that both meets the criteria of
§ 203.4(a)(12)(ii) and provides pricing terms
for at least two types of variable-rate transactions and at least two types of non-variable-rate transactions. An example of such a
survey is the Freddie Mac Primary Mortgage
Market Survey®.
2. Comparable transaction. The rate spread
reporting requirement applies to a reportable loan with an annual percentage rate
that exceeds by the specified margin (or
more) the average prime offer rate for a comparable transaction as of the date the interest rate is set. The tables of average prime
offer rates published by the Board (see comment 4(a)(12)(ii)–3) indicate how to identify
the comparable transaction.
3. Board tables. The Board publishes on the
FFIEC’s Web site (http://www.ffiec.gov/hmda),
in table form, average prime offer rates for a
wide variety of transaction types. The Board
calculates an annual percentage rate, consistent with Regulation Z (see 12 CFR 226.22
and part 226, appendix J), for each transaction type for which pricing terms are
available from the survey described in comment 4(a)(12)(ii)–1. The Board estimates annual percentage rates for other types of
transactions for which direct survey data are
not available based on the loan pricing terms
available in the survey and other information. The Board publishes on the FFIEC’s
Web site the methodology it uses to arrive at
these estimates.
Paragraph 4(a)(14) Lien status.
1. Determining lien status for applications
and loans originated. i. Lenders are required
to report lien status for loans they originate
and applications that do not result in originations. Lien status is determined by reference to the best information readily avail-
able to the lender at the time final action is
taken and to the lender’s own procedures.
Thus, lenders may rely on the title search
they routinely perform as part of their underwriting procedures—for example, for
home purchase loans. Regulation C does not
require lenders to perform title searches
solely to comply with HMDA reporting requirements. Lenders may rely on other information that is readily available to them at
the time final action is taken and that they
reasonably believe is accurate, such as the
applicant’s statement on the application or
the applicant’s credit report. For example,
where the applicant indicates on the application that there is a mortgage on the property
or where the applicant’s credit report shows
that the applicant has a mortgage—and that
mortgage is not going to be paid off as part
of the transaction—the lender may assume
that the loan it originates is secured by a
subordinate lien. If the same application did
not result in an origination—for example, because the application is denied or withdrawn—the lender would report the application as an application for a subordinate-lien
loan.
ii. Lenders may also consider their established procedures when determining lien status for applications that do not result in
originations. For example, a consumer applies to a lender to refinance a $100,000 first
mortgage; the consumer also has a home equity line of credit for $20,000. If the lender’s
practice in such a case is to ensure that it
will have first-lien position—through a subordination agreement with the holder of the
mortgage on the home equity line—then the
lender should report the application as an
application for a first-lien loan.
Paragraph 4(c)(3) Optional data—home-equity lines of credit.
1. An institution that opts to report homeequity lines reports the disposition of all applications, not just originations.
Paragraph 4(d) Excluded data.
1. Mergers, purchases in bulk, and branch acquisitions. 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 the
institution, or acquisition of a branch, is involved, the institution reports the loans as
purchased loans.
Section 203.5(a)—Disclosure and Reporting
Paragraph 5(a) Reporting to agency.
1. Submission of data. Institutions submit
data to their supervisory agencies in an
automated, machine-readable form. The format must conform to that of the HMDA/
LAR. An institution should contact its federal supervisory agency for information regarding procedures and technical specifications for automated data submission; in
some cases, agencies also make software
available for automated data submission.
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Pt. 203, Supp. I
12 CFR Ch. II (1–1–12 Edition)
The data are edited before submission, using
the edits included in the agency-supplied
software or equivalent edits in software
available from vendors or developed inhouse.
2. Submission in paper form. Institutions
that report twenty-five 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 sends
two copies that are typed or computer printed and must use the format of the HMDA/
LAR (but need not use the form itself). Each
page must be numbered along with the total
number of pages (for example, ‘‘Page 1 of 3’’).
3. Procedures for entering data. The required
data are entered in the register for each loan
origination, each application acted on, and
each loan purchased during the calendar
year. The 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).
4. Options for collection. An institution may
collect 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). Entries need not be
grouped on the register by MSA or Metropolitan Division, or chronologically, or by
census tract numbers, or in any other particular order.
5. 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 must report data to
its new supervisory agency beginning with
the year of the change.
6. 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.
7. Transmittal sheet—additional data submissions. If an additional data submission becomes necessary (for example, because the
institution discovers that data were omitted
from the initial submission, or because revisions are called for, that submission must be
accompanied by a transmittal sheet.
8. Transmittal sheet—revisions or deletions. If
a data submission involves revisions or deletions of previously submitted data, it must
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. Depository institu-
tions must provide a list of the MSAs or
Metropolitan Divisions in which they have
home or branch offices.
Paragraph 5(b) Public disclosure of statement.
1. Business day. For purposes of § 203.5, a
business day is any calendar day other than
a Saturday, Sunday, or legal public holiday.
2. Format. An institution 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 CD Rom).
Paragraph 5(c) Public disclosure of modified
loan/application register.
1. Format. An institution may make the
modified register available in paper or automated form (such as by PC diskette or computer tape). Although institutions are not
required to make the modified register available in census tract order, they are strongly
encouraged to do so in order to enhance its
utility to users.
Paragraph 5(e) Notice of availability.
1. Poster—suggested text. An institution
may use any text that meets the requirements of the regulation. Some of the federal
financial regulatory agencies and HUD provide HMDA posters that an institution can
use to inform the public of the availability of
its HMDA data, or the institution may create its own posters. If an institution prints
its 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; ethnicity, race, sex, 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 on request.
An institution that posts a notice informing
the public of the address to which a request
should be sent could include the following
sentence, for example, in its general notice:
‘‘To receive a copy of these data send a written request to [address].’’
Section 203.6—Enforcement
Paragraph 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)
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Federal Reserve System
§ 204.1
is responsible for ensuring that the information reported on its HMDA/LAR is correct.
AUTHORITY: 12 U.S.C. 248(a), 248(c), 461, 601,
611, and 3105.
[Reg. C, 67 FR 7236, Feb. 15, 2002, as amended
at 67 FR 43227, June 27, 2002; 68 FR 31592, May
28, 2003; 68 FR 74833, Dec. 29, 2003; 69 FR 77139,
Dec. 27, 2004; 70 FR 75719, Dec. 21, 2005; 71 FR
77247, Dec. 26, 2006; 72 FR 72235, Dec. 20, 2007;
73 FR 78616, Dec. 23, 2008; 73 FR 63336, Oct. 24,
2008; 74 FR 68499, Dec. 28, 2009; 75 FR 80675,
Dec. 23, 2010]
§ 204.1
PART 204—RESERVE REQUIREMENTS
OF DEPOSITORY INSTITUTIONS
(REGULATION D)
Sec.
204.1
204.2
204.3
204.4
204.5
204.6
204.7
204.8
204.9
204.10
Authority, purpose and scope.
(a) Authority. This part is issued
under the authority of section 19 (12
U.S.C. 461 et seq.) and other provisions
of the Federal Reserve Act and of section 7 of the International Banking Act
of 1978 (12 U.S.C. 3105).
(b) Purpose. This part relates to reserves that depository institutions are
required to maintain for the purpose of
facilitating the implementation of
monetary policy by the Federal Reserve System.
(c) Scope. (1) The following depository
institutions are required to maintain
reserves in accordance with this part:
(i) Any insured bank as defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)) or any bank
that is eligible to apply to become an
insured bank under section 5 of such
Act (12 U.S.C. 1815);
(ii) Any savings bank or mutual savings bank as defined in section 3 of the
Federal Deposit Insurance Act (12
U.S.C. 1813(f), (g));
(iii) Any insured credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752(7)) or any
credit union that is eligible to apply to
become an insured credit union under
section 201 of such Act (12 U.S.C. 1781);
(iv) Any member as defined in section 2 of the Federal Home Loan Bank
Act (12 U.S.C. 1422(4)); and
(v) Any insured institution as defined
in section 401 of the National Housing
Act (12 U.S.C. 1724(a)) or any institution which is eligible to apply to become an insured institution under section 403 of such Act (12 U.S.C. 1726).
(2) Except as may be otherwise provided by the Board, a foreign bank’s
branch or agency located in the United
States is required to comply with the
provisions of this part in the same
manner and to the same extent as if
the branch or agency were a member
bank, if its parent foreign bank (i) has
total worldwide consolidated bank assets in excess of $1 billion; or (ii) is
controlled by a foreign company or by
a group of foreign companies that own
Authority, purpose and scope.
Definitions.
Reporting and location.
Computation of required services.
Maintenance of required reserves.
Charges for reserve deficiencies.
Supplemental reserve requirement.
International banking facilities.
Emergency reserve requirement.
Payment of interest on balances.
INTERPRETATIONS
204.121 Bankers’ banks.
204.122 Secondary market activities of
international banking facilities.
204.123 Sale of Federal funds by investment
companies or trusts in which the entire
beneficial interest is held exclusively by
depository institutions.
204.124 Repurchase
agreement
involving
shares of a money market mutual fund
whose portfolio consists wholly of United
States Treasury and Federal agency securities.
204.125 Foreign, international, and supranational
entities
referred
to
in
§§ 204.2(c)(1)(iv)(E) and 204.8(a)(2)(i)(B)(5).
204.126 Depository institution participation
in ‘‘Federal funds’’ market.
204.127 Nondepository
participation
in
‘‘Federal funds’’ market.
204.128 Deposits at foreign branches guaranteed by domestic office of a depository
institution.
204.130 Eligibility for NOW accounts.
204.131 Participation by a depository institution in the secondary market for its
own time deposits.
204.132 Treatment of loan strip participations.
204.133 Multiple savings deposits treated as
a transaction account.
204.134 Linked time deposits and transaction accounts.
204.135 Shifting funds between depository
institutions to make use of the low reserve tranche.
204.136 Treatment of trust overdrafts for reserve requirement reporting purposes.
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| File Type | application/pdf |
| File Modified | 2012-12-03 |
| File Created | 2012-12-03 |