99-32827. Home Mortgage Disclosure

[Federal Register Volume 64, Number 243 (Monday, December 20, 1999)]
[Rules and Regulations]
[Pages 70991-70992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32827]


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FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-1053]


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; staff commentary.

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SUMMARY: The Board is publishing a final rule amending the staff 
commentary that interprets the requirements of Regulation C (Home 
Mortgage Disclosure). The Board is required to adjust annually the 
asset-size exemption threshold for depository institutions based on the 
annual percentage change in the Consumer Price Index for Urban Wage 
Earners and Clerical Workers. The present adjustment reflects changes 
for the twelve-month period ending in November 1999. During this 
period, the index increased by 2.1 percent; as a result, the threshold 
is increased to $30 million. Thus, depository institutions with assets 
of $30 million or less as of December 31, 1999, are exempt from data 
collection in 2000.

EFFECTIVE DATE: January 1, 2000. This rule applies to all data 
collection in 2000.

FOR FURTHER INFORMATION CONTACT: James H. Mann, Staff Attorney, 
Division of Consumer and Community Affairs, at [phone]; for 
users of Telecommunications Device for the Deaf (TDD) only, contact 
Diane Jenkins at [phone].

SUPPLEMENTARY INFORMATION: The Home Mortgage Disclosure Act (HMDA; 12 
U.S.C. 2801 et seq.) requires most mortgage lenders located in 
metropolitan statistical areas to collect data about their housing-
related lending activity. Annually, lenders must file reports with 
their federal supervisory agencies and make disclosures available to 
the public. The Board's Regulation C (12 CFR Part 203) implements HMDA.
    Provisions of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (codified at 12 U.S.C. 2808(b)) amended HMDA to 
expand the exemption for small depository institutions. Prior to 1997, 
HMDA exempted depository institutions with assets totaling $10 million 
or less, as of the preceding year end. The statutory amendment 
increased the asset-size exemption threshold by requiring a one-time 
adjustment of the $10 million figure based on the percentage by which 
the Consumer Price Index for Urban Wage Earners and Clerical Workers 
(CPIW) for 1996 exceeded the CPIW for 1975, and provided for annual 
adjustments thereafter based on the annual percentage increase in the 
CPIW. The one-time adjustment increased the exemption threshold to $28 
million for 1997 data collection.
    Section 203.3(a)(1)(ii) provides that the Board will adjust the 
threshold based on the year-to-year change in the average of the CPIW, 
not seasonally adjusted, for each twelve-month period ending in 
November, rounded to the nearest million. Pursuant to this section, the 
Board raised the threshold to $29 million for 1998 data collection, and 
kept it at that level for data collection in 1999.
    During the period ending in November 1999, the CPIW increased by 
2.1 percent. As a result, the new threshold is increased to $30 
million. Thus, depository institutions with assets of $30 million or 
less as of December 31,

[[Page 70992]]

1999, are exempt from data collection in 2000. An institution's 
exemption from collecting data in 2000 does not affect its 
responsibility to report the data it was required to collect in 1999.
    The Board is amending Comment 3(a)-2 of the staff commentary to 
implement the increase in the exemption threshold. Under the 
Administrative Procedure Act, notice and opportunity for public comment 
are not required if the Board finds that notice and public comment are 
unnecessary or would be contrary to the public interest. 5 U.S.C. 
553(b)(B). Regulation C establishes the formula for determining 
adjustments to the exemption threshold, if any, and the amendment to 
the staff commentary merely applies the formula. This amendment is 
technical and not subject to interpretation. For these reasons, the 
Board has determined that publishing a notice of proposed rulemaking 
and providing opportunity for public comment are unnecessary and would 
be contrary to the public interest. Therefore, the amendment is adopted 
in final form.

List of Subjects in 12 CFR Part 203

    Banks, banking, Consumer protection, Federal Reserve System, 
Mortgages, Reporting and recordkeeping requirements.

Text of Revisions

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

PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)

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

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

    2. In Supplement I to Part 203, under Section 203.3--Exempt 
Institutions, under 3(a) Exemption based on location, asset size, or 
number of home-purchase loans, paragraph 2 is revised to read as 
follows:

Supplement I to Part 203--Staff Commentary

* * * * *
Section 203.3--Exempt Institutions
    3(a) Exemption based on location, asset size, or number of home-
purchase loans.
* * * * *
    2. Adjustment of exemption threshold for depository 
institutions. For data collection in 2000, the asset-size exemption 
threshold is $30 million. Depository institutions with assets at or 
below $30 million are exempt from collecting data for 2000.
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Consumer and 
Community Affairs under delegated authority, December 13, 1999.

    Dated: December 13, 1999.
Dolores S. Smith,
Director, Division of Consumer and Community Affairs.
[FR Doc. 99-32827 Filed 12-17-99; 8:45 am]
BILLING CODE 6210-01-P