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U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

February 13, 1992
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
MORTGAGEE LETTER 92-6
    TO:       ALL APPROVED MORTGAGEES
    SUBJECT:  HOME MORTGAGE DISCLOSURE ACT (HMDA) UPDATE
 
         In the last few weeks, the Federal Reserve printed and
    distributed the 1990 Home Mortgage Disclosure Act Loan
    Application Registers (HMDA-LARs) report to all mortgagees that
    participated in the program.  This year the Department reported
    on 409 mortgagees.  As part of the Financial Institutions Reform,
    Recovery and Enforcement Act of 1989 (FIRREA) the Department has
    been designated as the HMDA regulator for mortgagees unaffiliated
    with financial institutions.  The purpose of this letter is to
    clarify the Department's position on this issue and its
    expectations for the 1991 HMDA reporting cycle.
 
                                OVERVIEW
 
         HMDA is a law which requires most mortgagees and lenders
    that make home purchase, home improvement, or home refinancing
    loans to disclose information to the public about their lending
    patterns for such loans.  Mortgagees are required to report if
    they have consolidated assets of more than $10 million and have
    home or branch offices in an Metropolitan Statistical Areas
    (MSAs).  Many FHA mortgagees mistakenly believe that they are
    exempt from reporting the kind of information required in HMDA
    reports.  Section 311 of HMDA requires HUD to make data in its
    possession with regard to insured loans publicly available.  Such
    data is to be comparable to the data to be disclosed for
    mortgagees reporting under other sections of HMDA.  The Secretary
    of HUD's authority to collect this information from mortgagees is
    derived from laws other than HMDA, such as  808 of the Fair
    Housing Act and  3(b) of the Department of HUD Act and, more
    generally, the National Housing Act.  All FHA mortgagees are
    required to submit this information to HUD for all insured loans,
    whether or not they are otherwise exempted from HMDA.
 
                        IMPORTANT PROGRAM CHANGES
 
         The Department is no longer automatically accepting the
    reports on paper.  The preferred methodology is magnetic tape or
    diskette.  If a mortgagee is unable to produce a report on
    magnetic tape or diskette, it will need to contact the Department
    immediately.
 
_____________________________________________________________________
                                   2
 
Only under extenuating circumstances will the Department grant
permission for submission of paper reports.  Mortgagees should
recognize that submission of HMDA-LARs in machine-readable format
is more efficient and less costly.
 
     Hardcopy HMDA-LARs are frequently carelessly prepared or
illegible and are prone to errors which delays the HMDA
disclosure.  Mortgagees should be aware they may be subject to
civil money penalties in cases where they fail to submit timely
or accurate information.  The HMDA-LARs 1991 report will be due
March 1, 1992.  There have been no changes to the magnetic tape
layout.  However, variable block records will not be accepted.
Magnetic tape should be fixed length and 304 character records.
Also, the Department provides a microcomputer program upon
request.
 
     The Department requests that all magnetic tapes and
diskettes be identified with an external label.  External labels
must include the following information:  Institution's name,
address, phone number, contact person and total record count.
 
     The package containing the tapes and diskettes must include
the institution's transmittal slip.  Please do not include a
hardcopy report.
 
                  ***IMPORTANT ADDRESS CHANGE***
 
ALL AUTOMATED DATA SHOULD BE SENT TO THE ATTENTION OF:
 
     HUD DATA CENTER
     COMPUTER MANAGEMENT DIVISION, ROOM 4135
     THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
     451 7TH STREET, SW
     WASHINGTON, D.C.  20410
     ATTN: HMDA
 
Small institutions which report 70 loan applications and fewer,
may submit a typed hardcopy report.
 
ALL HARDCOPY REPORTS SHOULD BE SENT TO THE ATTENTION OF:
 
     THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
     451 7TH STREET, SW
     WASHINGTON, D.C.  20410
     ATTN: HMDA
     ROOM 9241
 
_____________________________________________________________________
                                  3
 
     Tighter controls are now being developed for the 1991 HMDA.
Upon submission of the 1991 HMDA report, your institution will
receive an acknowledgement letter from the Department.  Please
allow two weeks to pass before calling.
 
     At this time, the Department encourages all mortgagees who
are reporting in machine-readable format to send in a test tape.
Please follow the above directions and mark the package TEST
TAPE.  We will be accepting test tapes from now until the end of
February.
 
     HMDA 1991 will be the last year utilizing 1980 census
tracts.  Beginning in January 1992 all mortgagees will be
requested to capture the 1990 census tracts.  All mortgagees who
participated in the 1990 HMDA report should have been contacted
by the Federal Reserve with an order form regarding the new
census tracts.  The attached form is designed to obtain the
necessary 1990 census materials.  All inquiries should be made to
Customer Services, Bureau of Census (301) 763-4100.  Please allow
six weeks for delivery.
 
     Also, the Department is completing its survey panel for the
Federal Reserve.  If your institution has not completed the
attached, please complete it and send it in.
 
     If you have any questions about this matter, please direct
your inquiries to Dr. William F. Shaw, Director, Office of
Evaluation.  The telephone number is 202-708-5852.
 
                              Sincerely yours,
 
                              Arthur J. Hill
                              Assistant Secretary for
                                Housing-Federal Housing Commissioner
 
Attachments
 
_____________________________________________________________________
                    Appendix A (Revised 1/24/92)
 
Automation instructions for Home Mortgage Disclosure Act (HMDA)
reporting to U.S. Department of Housing and Urban Development
 
                         HMDA Tape Attributes
 
The tape file consists of two record types:
 
      The first record type is the transmittal sheet with 304 bytes
      and is identified as record type "1".
 
      The other record type contains detail line item data from the
      Loan Application Register and consists of 304 bytes and is
      identified as record type "2".
 
      EBCDIC fixed blocked -- IBM recording mode "F" unlabeled
 
      9 track 1600 or 6250 BPI 1/2 inch tape or 3480
      compatible low density cartridge
 
      Block contains 100 records (30,400 characters)
 
                                   or
 
      Since a fixed length format is used then the type 2 record(s)
      should include an extra 152 bytes of filler space (bytes 153
      304).  This tape/cartridge must be in an EBCDIC format.
 
      The detail layout for these two records types follow:
 
  Note:  Reported income must be annual income
 
_____________________________________________________________________
                      FEDERAL RESERVE SYSTEM
 
                         12 CFR Part 203
 
                   Regulation C; Docket No. R-0736
 
                      HOME MORTGAGE DISCLOSURE
 
AGENCY:  Board of Governors of the Federal Reserve System.
 
ACTION:  Final rule.
 
SUMMARY:  The Board is publishing revisions to Regulation C (Home
 
Mortgage Disclosure), including the instructions and reporting
 
form that financial institutions must use in complying with the
 
annual reporting requirements.  The major substantive change
 
requires financial institutions to begin using 1990 census tract
 
numbers (instead of 1980) to identify and report property
 
locations beginning on January 1, 1992.
 
EFFECTIVE DATE:  January 1, 1992.
 
FOR FURTHER INFORMATION CONTACT:  W. Kurt Schumacher, Staff
 
Attorney, Division of Consumer and Community Affairs, Board of
 
Governors of the Federal Reserve System, Washington, DC 20551, at
 
202-452-2412; for the hearing impaired only, contact Dorothea
 
Thompson, Telecommunications Device for the Deaf, at 202-452-3544.
 
For information regarding the Board's approval of the
 
reporting form under the Paperwork Reduction Act only, contact
 
Frederick J. Schroeder, Federal Reserve Board Clearing Officer,
 
Division of Research and Statistics, Board of Governors of the
 
Federal Reserve System, Washington, DC 20551, at 202-452-3829, or
 
Gary Waxman, OMB Desk Officer, Office of Information and
 
Regulatory Affairs, Office of Management and Budget, New
 
_____________________________________________________________________
                                2
 
Executive Office Building, Room 3208, Washington, DC 20503, at
 
202-395-7340.
 
SUPPLEMENTARY INFORMATION:
 
(1) Background.
 
     The Board's Regulation C (12 CFR Part 203) implements the
 
Home Mortgage Disclosure Act of 1975 (HMDA) (12 U.S.C.   2801 et
 
seq.).  The Financial Institutions Reform, Recovery, and
 
Enforcement Act of 1989 (FIRREA) made a number of significant
 
amendments to HMDA.  (Pub. L. No. 101-73,   1211, 103 Stat. 183,
 
524-526.)  These changes were reflected in amendments to Regulation
 
C that took effect on January 1, 1990.  (See 54 FR 51356,
 
December 15, 1989.)  The regulation requires depository and
 
nondepository financial institutions that have over $10 million
 
in assets and have offices in metropolitan statistical areas
 
(MSAs) to disclose annually their originations and purchases of
 
mortgage and home improvement loans, as well as applications they
 
have received for such loans.
 
    Under Appendix A to the regulation, data must be recorded on
 
a Loan/Application Register (HMDA-LAR) that reporting
 
institutions must send to their regulatory agency no later than
 
March 1 following the calendar year for which they are reporting.
 
The Federal Financial Institutions Examination Council (FFIEC)
 
compiles the HMDA data for each institution and then issues
 
annual disclosure statements to the reporting institutions.
 
Within 30 days after receiving their statements from the FFIEC,
 
institutions must make them available to the public for
 
_____________________________________________________________________
                                 3
 
inspection and copying at their home office and in at least one
 
branch office in each MSA.
 
    The FFIEC also compiles the HMDA data for all institutions
 
in each MSA and sends aggregate reports to central data
 
depositories located in each MSA.
 
    In processing and reviewing the HMDA-LARs submitted by
 
financial institutions for the 1990 calendar year (which was the
 
first year reflecting the FIRREA amendments to HMDA), the Board
 
and the other regulatory agencies (the Office of the Comptroller
 
of the Currency, Federal Deposit Insurance Corporation, Office of
 
Thrift Supervision, National Credit Union Administration, and
 
Department of Housing and Urban Development) identified the need
 
for certain changes to the instructions and form used in
 
reporting HMDA data.  The Board published a proposed rule in the
 
Federal Register detailing these changes (56 FR 47703, September
 
20, 1991).  This final rule incorporates many of the proposed
 
changes, which will allow for the more efficient and accurate
 
collection and submission of home mortgage data by financial
 
institutions.
 
    The final rule's major change relates to census tract
 
numbers.  For loan applications received and actions taken on or
 
after January 1, 1992, the regulation requires that financial
 
institutions report property location using 1990 census tracts.
 
The HMDA-LARs containing these new census data will be due to the
 
supervisory agencies by March 1, 1993.
 
     Institutions are reminded that for 1991 lending activity,
 
they are required to use 1980 census tract numbers in reporting
 
_____________________________________________________________________
                                 4
 
property location information on the HMDA-LARs; these HMDA-LARs
 
are to be submitted to regulators by March 1, 1992.
 
     Changing to 1990 census tracts will make the HMDA data more
 
useful.  Many of the output tables that comprise the disclosure
 
statement rely on population and other characteristics for given
 
census tracts (for example, composition of the tract by
 
residents' income level, and age of housing stock).  Because many
 
changes have occurred since 1980, use of 1990 census tracts and
 
demographics will produce more accurate and useful data in the
 
HMDA disclosure statements and aggregate reports.
 
     To ensure that institutions covered by HMDA are able to
 
obtain the necessary materials to comply beginning January 1992,
 
the HMDA supervisory agencies are working closely with the Bureau
 
of the Census in seeking ways to expedite the distribution of
 
census materials.  These materials consist of:  (1) an index of
 
street addresses-census tract numbers, and (2) outline maps to
 
locate properties not listed on the index.  The maps are
 
available now and the index will be available by year-end, both
 
in automated and hard-copy form, from the Census Bureau.  A
 
direct mailing to all lenders that reported HMDA data for
 
calendar year 1990 will inform them of the change to 1990 census
 
tracts and will provide Census Bureau order forms for obtaining
 
the necessary census materials.
 
     (2) Revisions.
 
     This section describes the more significant changes that
 
have been made to the regulatory provisions and instructions for
 
completing the HMDA-LAR.  Other changes are self-explanatory and
 
_____________________________________________________________________
                                   5
 
are simply stylistic in nature.  In addition, many of the
 
headings and subheadings found in the instructions in Appendix A
 
have been redesignated.
 
  203.2 Definitions.
 
203.2(c)(2)
 
     The Board has made a technical change to subsection (c)(2)
 
of the definition of branch office.  A misspelling has been
 
corrected to reflect that this subsection applies to mortgage
 
lending institutions that take applications from the public for
 
home "purchase" or home improvement loans -- not home "purchases"
 
as was previously stated.
 
203.2(e)(2)
 
     The Board has revised subsection (e)(2) of the definition of
 
financial institution to clarify that the loan volume used to
 
determine coverage for nondepository mortgage lenders refers to
 
loan origination volume.  Thus, the test measures the percentage
 
of an institution's home purchase loan originations against its
 
total loan origination volume -- not total loan volume.
 
  203.4 Compilation of loan data.
 
203.4(a) Data format and itemization.
 
     As addressed in the proposal, this section has been amended
 
to reflect that home improvement loans that are refinanced are to
 
be reported, as are refinancings of home purchase loans.  (See
 
also the revisions to the instructions at paragraph IV.A.1.,
 
below.)
 
_____________________________________________________________________
                                6
 
  203.6 Enforcement.
 
203.6(a) Administrative enforcement.
 
     Given the importance of accurate and timely submissions of
 
HMDA data, the Board has adopted the proposed language and has
 
revised this section to make clear that civil money penalties are
 
part of the administrative sanctions that section 305 of the Home
 
Mortgage Disclosure Act authorizes for violations of HMDA
 
reporting requirements.
 
APPENDIX A to Part 203 -- Form and Instructions for Completion of
 
Loan/Application Register
 
I.  WHO MUST FILE A REPORT
 
     Paragraph C.  In keeping with the revision to section
 
203.2(e)(2), the Board has revised paragraph C to read "total
 
loan origination volume."
 
II. REQUIRED FORMAT AND REPORTING PROCEDURES
 
     Paragraph A.  Paragraph A has been revised to indicate that
 
financial institutions generally are expected to submit their
 
HMDA-LARs in automated format.  In response to comments received,
 
the Board has increased the number of HMDA-LAR transactions
 
qualifying for non-automated submission from 70 to 100.  This
 
paragraph also specifies that in the case of hard copy
 
submissions, the two copies submitted must be typed, not
 
handwritten.
 
     Each of the agencies has issued technical specifications for
 
the institutions they supervise to use in submitting HMDA data in
 
automated form.  Various vendor packages are available on the
 
market for collecting HMDA data.  To assist institutions that
 
_____________________________________________________________________
                                   7
 
have not purchased or have not developed their own software
 
program for data entry, several of the agencies provide software
 
programs on PC diskettes, free of charge, that institutions may
 
use for this purpose.  For further information regarding
 
automated submission, lenders should contact their HMDA
 
supervisory agency.
 
IV. TYPES OF LOANS AND APPLICATIONS COVERED AND EXCLUDED BY HMDA
 
     A.  Types of loans and applications to be reported.
 
     Paragraph 1.  In keeping with the revisions to section
 
203.4(a) of the regulation, paragraph 1 has been revised to
 
indicate that refinancings of home improvement loans are to be
 
reported, as are refinancings of home purchase loans.
 
     Paragraph 3.  The Board has added language to the
 
instructions concerning brokered loan applications and applications
 
received through correspondent lenders.  Given the
 
frequency of questions received by the regulatory agencies, the
 
Board has clarified reporting responsibilities for these types of
 
transactions.  Language has been added to remind reporters that
 
the race or national origin, sex and income data -- items
 
required of most institutions when reporting the denial of
 
applications -- are required for these applications as well.
 
     B.  Data to be excluded.
 
     Paragraph 1.  The Board has amended the parenthetical
 
language to provide a more straightforward example of a type of
 
business-related loan that is not reported under HMDA.
 
_____________________________________________________________________
                                   8
 
V. INSTRUCTIONS FOR COMPLETION OF LOAN/APPLICATION REGISTER
 
     A.  Application or loan information.
 
     1.  Application or loan number.
 
     In response to comments received on the proposal, the Board
 
has decided against barring at this time the use of an
 
applicant's name or social security number as part of the
 
identification number.  Commenters noted that many lenders'
 
systems use this type of information internally to identify
 
applications and loan accounts, and that implementing a different
 
system for purposes of HMDA would be disruptive.
 
     Nonetheless, because of privacy considerations, the Board
 
and other agencies encourage reporters to refrain from using the
 
names or social security numbers of borrowers or applicants in
 
this manner.  Though lenders are not required to release the
 
HMDA-LAR data to persons other than their supervisory agencies,
 
neither are they prohibited by Regulation C from doing so.  There
 
is, however, potential for damage or misuse resulting from the
 
intentional or inadvertent release of this privacy-sensitive
 
information by a financial institution.  Thus, institutions
 
should have appropriate safeguards to ensure that the sensitive
 
data (application or loan number, date of application, and date
 
of action taken) are not released to the public.
 
     2.  Date application received.
 
     The Board had proposed adopting a uniform code of "0" (zero)
 
to be used in this date field and in other fields on the HMDA-LAR
 
whenever the correct entry is "not applicable."  Although the
 
Board believes that establishing a single code for this purpose
 
_____________________________________________________________________
                                9
would be beneficial in reducing errors, it appears that
 
implementation of this change would cause an unwarranted
 
disruption of established computer or automated reporting
 
systems.  Therefore, the Board has retained the existing codes
 
for "not applicable" in this and other data fields.
 
     5.  Explanation of purpose codes.
 
     Code 1:  Home purchase.
 
     Paragraph a.  The Board has revised this paragraph, in line
 
with the proposal, to indicate that a loan secured by a dwelling
 
and made for the purpose of purchasing a second dwelling is
 
subject to reporting under HMDA.  The Board believes that these
 
transactions, though relatively uncommon, are within the ambit of
 
the statutory provisions that speak generally of the reporting of
 
mortgage loans "secured by property" either within or outside an
 
MSA.  Paragraph V.C. of the instructions ("Property location")
 
has similarly been changed.
 
     Code 2:  Home improvement.
 
     Paragraph c.  Language has been added to address the
 
reporting of home equity lines of credit.  Normally a home
 
improvement loan must be reflected as a home improvement loan on
 
an institution's records to be covered by HMDA; the new language
 
clarifies that this particular requirement does not apply in the
 
case of home equity lines of credit.  In order to report a credit
 
line, however, the lender must have determined that the applicant
 
intends to use a portion of the line for home improvement
 
purposes.  The lender will report only that portion, not the
 
entire line of credit.  Paragraph c. has likewise been revised to
 
_____________________________________________________________________
                                  10
 
make clear that a lender reporting originations must also report
 
the disposition of applications for such home equity credit lines
 
that do not result in originations (for example, denials).
 
     Code 3:  Refinancings.
 
     Paragraph a.  Paragraph a. has been revised to give guidance
 
to lenders regarding a "refinancing" -- the satisfaction of an
 
existing obligation that is replaced by a new obligation.  The
 
language has been modified from that proposed to delete a
 
reference to short-term balloon-payment loans.  Instead, the
 
Board has added language to specify that refinancings (regardless
 
of the term of the borrower's previous obligation) are not
 
reported on the HMDA-LAR if the lender is unconditionally
 
obligated to refinance or renew the loan, or is obligated to
 
refinance or renew it subject to conditions within the borrower's
 
control.
 
     Paragraph c.  New language clarifies that lenders are to
 
report a refinancing if the outstanding loan balance, plus any
 
new funds earmarked by the consumer for home purchase or home
 
improvement, exceed 50 percent of the total loan amount requested
 
or approved.
 
     8.  Loan amount.
 
     Paragraph 8. has been revised to make clear that loan
 
amounts of less than $500 should not be reported.  A number of
 
commenters expressed interest in reporting such transactions.
 
The Board believes, however, that a distortion in the data would
 
result if institutions were permitted to "round up" to $1,000
 
application requests or loans of less than $500.  Moreover, given
 
_____________________________________________________________________
                                  11
 
the volume of data being reported, the Board does not find it
 
feasible to have lenders report loan amounts in smaller
 
increments than in thousands.  The Board notes, however, that an
 
institution that wants to make the full extent of its home
 
improvement lending known in its community, for purposes of the
 
Community Reinvestment Act, has the option of providing data
 
about such lending as part of its CRA public file.
 
     The Board has revised subparagraph c. to clarify that the
 
loan amount reported for home equity credit lines should be only
 
that portion earmarked by the applicant for home improvement
 
regardless of the type of action taken (whether the application
 
resulted in a loan origination or denial, for example.)
 
     C.  Property location.
 
     Paragraph C. has been revised (in line with the changes
 
adopted in paragraph V.A.5.) to cover instances in which a home
 
purchase loan secured by one dwelling is made for the purpose of
 
purchasing another dwelling.  As was stated in the proposal, the
 
geographic data generally should be recorded for the property in
 
which the security interest is taken.  However, if a home
 
purchase loan is secured by both properties, the institution
 
should report the geographic data for the property being
 
purchased.
 
     Note that, for reasons discussed above, the Board decided
 
against requiring the use of the code "0" (zero) instead of "NA"
 
for "not applicable," as had been proposed.  Thus, institutions
 
will continue to enter "NA" for instances in which a financial
 
institution is not required to provide the property location.
 
_____________________________________________________________________
                                  12
 
     Paragraphs 3. and 4. Census tract and Census tract number.
 
     Revisions in paragraphs 3. and 4. require the use of 1990
 
census data to identify property locations beginning January 1,
 
1992.  As discussed in the proposal, the 1980 census data are in
 
many instances significantly out of date.  The Board believes
 
that moving to the 1990 census data is therefore essential given
 
the need to provide greater accuracy and meaning to analyses
 
performed using HMDA data.  (The 1980 census tract numbers are
 
still required on the HMDA-LARs for the 1991 reporting year,
 
which are due to the supervisory agencies by March 1, 1992.)
 
     The Board and the other supervisory agencies are working
 
closely with the Bureau of the Census to ensure that institutions
 
can obtain the appropriate 1990 census tract materials in time
 
for use in 1992.  A direct mailing to all lenders that reported
 
HMDA data for calendar year 1990 will inform them of the change
 
to 1990 census tracts and will provide order forms for obtaining
 
the necessary census materials from the Census Bureau.
 
     6.  Nondepository lenders.
 
     A new paragraph has been added to alert nondepository
 
institutions of the need to monitor loan activity within MSAs.
 
The statute and regulation provide that a nondepository mortgage
 
lender is deemed to have a branch office in any MSA where it
 
received five or more loan applications, or originated or
 
purchased five or more home purchase or home improvement loans,
 
during the preceding calendar year.  This means that, to
 
establish its compliance with this "five or more loan" rule, an
 
institution must have kept complete records on the geographic
 
_____________________________________________________________________
                                 13
 
distribution of its lending activity for the previous calendar
 
year.  Nondepository mortgage lenders may find it easier, and are
 
encouraged, to give the property location data for all loans
 
relating to property located within any MSA.  In that way they
 
can be assured of being in compliance with the regulation.
 
     D.  Applicant information -- race or national origin, sex
 
         and income.
 
     5.  Income.
 
     The Board has amended this paragraph to clarify that
 
institutions must report the total amount of the gross annual
 
income (of the applicant and any co-applicant) that they rely on
 
in making their credit decision.  Monthly or net income figures
 
are not to be entered in this column.
 
     E.  Type of purchaser.
 
     Paragraph 1.  Institutions will continue to use code "0" in
 
situations where a loan is originated or purchased but not sold
 
in the calendar year covered by the report.  As the revision to
 
this paragraph makes clear, lenders should also use this code
 
whenever the action taken on an application is something other
 
than an origination (for example, a loan denial).
 
     F.  Reasons for denial.
 
     Paragraph 2.  This paragraph has been revised to make clear
 
that the "reasons for denial" column should be left blank if the
 
action taken was anything other than a loan denial.
 
     In processing the 1990 data, the agencies noted apparent
 
confusion among some reporters concerning the similarity of terms
 
relating to incompleteness.  Code 5 under the "Action Taken"
 
_____________________________________________________________________
                                 14
 
column is entitled "file closed for incompleteness."  When Code 5
 
is used to describe the action taken, the reasons for denial
 
column must be left blank.
 
     Code 5 under "Action Taken" applies to a transaction in
 
which the financial institution has requested additional
 
information from the applicant pursuant to section 202.9(c) of
 
Regulation B (Equal Credit Opportunity, 12 CFR 202 et sect.), has
 
given the applicant time to respond, and has not received the
 
information within the time specified.  In contrast, code 7 under
 
reasons for denial (phrased "credit application incomplete")
 
applies when a loan application has been denied outright by the
 
financial institution because the required credit materials were
 
not complete.  Thus, code 7 may only be used when code 3,
 
"application denied by financial institution," has been entered
 
in the action taken column.
 
Loan/Application Register Transmittal Sheet, Loan/Application
 
Register, and Loan/Application Register Code Sheet.
 
     In addition to minor editorial changes, the Board has
 
revised the transmittal sheet that accompanies an institution's
 
data submission to require that institutions supply their tax
 
identification number.  This information will assist the agencies
 
in identifying any duplicate submissions among covered
 
institutions.  The change takes effect with the transmittal sheet
 
that will accompany the 1992 reports to be submitted in 1993.
 
     The Loan/Application Register has been reformatted to
 
illustrate more clearly the information that lenders must
 
provide.  These editorial and technical changes should help
 
_____________________________________________________________________
                                  15
 
reduce data entry errors.  Text has been added to the top of the
 
form advising reporters that "All columns (except Reasons for
 
Denial) must be completed for each entry.  See the instructions
 
for details."  This addition will alert financial institutions of
 
the need to consult the instructions before attempting to
 
complete entries on the register, and to leave no columns blank
 
(with the possible exception of the reasons for denial).
 
     The income column under the "Applicant Information" heading
 
has been relabeled "Gross Annual Income in thousands," to avoid a
 
problem that was encountered in the reporting of 1990 data,
 
whereby some lenders mistakenly reported monthly income.
 
     As discussed elsewhere, the Board decided against the
 
adopting of a uniform code for the response "not applicable."
 
Thus, institutions must refer to the codes listed on the code
 
sheet and in the instructions to determine the applicable code
 
for each column.
 
     (3)  Paperwork Reduction Act.
 
     In accordance with Section 3507 of the Paperwork Reduction
 
Act of 1980, 44 U.S.C. Chapter 35, and 5 CFR 1320.13, the
 
revisions to Regulation C that relate to reporting requirements
 
were approved under authority delegated to the Board by the
 
Office of Management and Budget.  The Board has determined that
 
the revisions do not significantly increase the burden on the
 
reporting institutions.  However, the burden hours have been
 
adjusted to reflect the actual number of covered lenders
 
supervised by the Federal Reserve and the loan transactions they
 
reported for the 1990 calendar year.
 
_____________________________________________________________________
                                   16
 
     The following information relates only to the effect of the
 
reporting requirements on state member banks and mortgage banking
 
subsidiaries that are supervised by the Federal Reserve.  As
 
indicated elsewhere in this notice, the Board's Regulation C
 
applies to all depository and nondepository mortgage lenders that
 
had an office in a metropolitan statistical area and had assets
 
of more than $10 million on the preceding December 31.
 
     Institutions other than state member banks are supervised by
 
other federal agencies: the Office of Comptroller of the
 
Currency, the Federal Deposit Insurance Corporation, National
 
Credit Union Administration, Office of Thrift Supervision, and
 
Department of Housing and Urban Development.  For purposes of the
 
Paperwork Reduction Act, these agencies report their own
 
estimates of the paperwork burden imposed by the HMDA reporting
 
requirements.
 
Approval Under OMB Delegated Authority for the Following
 
Information Collection:
 
     Report title:  HMDA Loan/Application Register
 
     Agency form number:  FR HMDA-LAR
 
     OMB docket number:  7100-0247
 
     Reporters:  State member banks and mortgage banking
 
     subsidiaries of bank holding companies
 
                   Number of                          Avg. hours
Reporters:        respondents        Frequency       per response
 
State member
banks               486              Annually             50
 
Mortgage banking
subsidiaries        125              Annually            850
 
_____________________________________________________________________
                                   17
 
Annual reporting hours:  130,550
 
Small businesses are not affected.
 
     General description of report.  This information collection
 
is mandatory (12 U.S.C. 2801-2810, 12 CFR Part 203).  The report
 
collects information on applications for, and originations and
 
purchases of, home purchase and home improvement loans, as
 
discussed elsewhere in this notice.  State member banks and
 
mortgage banking subsidiaries of bank holding companies are
 
required to complete the HMDA Loan/Application Register for a
 
given calendar year and to send it to the Federal Reserve System
 
by March 1 of the following calendar year.  Other lending
 
institutions submit their data through their respective federal
 
supervisory agencies, with the exception of state chartered
 
institutions in Connecticut and Massachusetts, which submit data
 
through their state banking agencies.
 
     (4) List of Subjects in 12 CFR Part 203.
 
     Banks, Banking, Consumer protection, Federal Reserve System,
 
Home mortgage disclosure, Mortgages, Reporting and recordkeeping
 
requirements.
 
     (5) Text of revisions.
 
     Because few changes to the regulation itself have been made,
 
the Board is publishing only those regulatory sections that have
 
been affected.  Appendix A (which contains the instructions and
 
the HMDA reporting form), on the other hand, is published in its
 
entirety following the regulatory provisions.  Appendix B (which
 
contains the form and instructions for data collection on race or
 
_____________________________________________________________________
                                   18
 
national origin and sex) is not being republished, as no changes
 
were made to those items.
 
     For the reasons set forth in this notice and pursuant to the
 
Board's authority under section 305(a) of the Home Mortgage
 
Disclosure Act (12 U.S.C. 2804(a)), the Board amends part 203,
 
Home Mortgage Disclosure (12 CFR Part 203) and the form and
 
instructions thereto (Appendix A to Part 203) as follows:
 
PART 203 -- HOME MORTGAGE DISCLOSURE  AMENDED)
 
     1.  The authority citation for part 203 continues to read:
 
     AUTHORITY:  12 U.S.C. 2801-2810.
 
     2.  Section 203.2(c)(2) has been revised by deleting the
 
word "purchases" and adding in its place the word "purchase" in
 
the first sentence, to read as follows:
 
  203.2 Definitions.
 
*  *  *  *  *
 
     (c)  Branch office means:
 
*  *  *  *  *
 
     (2) Any office of a mortgage lending institution (other than
 
a bank, savings association, or credit union) that takes
 
applications from the public for home purchase or home
 
improvement loans. *  *  *
 
*  *  *  *  *
 
     3.  Section 203.2(e)(2) has been revised to read as follows:
 
  203.2 Definitions.
 
*  *  *  *  *
 
     (e) Financial institution means:
 
*  *  *  *  *
 
_____________________________________________________________________
                                  19
 
      (2) A for-profit mortgage lending institution (other than a
 
bank, savings association, or credit union) whose home purchase
 
loan originations equaled or exceeded ten percent of its loan
 
origination volume, measured in dollars, in the preceding calendar
 
year.
 
*  *  *  *  *
 
      4.  Section 203.4(a) has been revised to read as follows:
 
  203.4 Compilation of loan data.
 
      (a) Data format and itemization.  A financial institution
 
shall collect data regarding applications for, and originations
 
and purchases of, home purchase and home improvement loans
 
(including refinancings of both) for each calendar year.  These
 
data shall be presented on a register in the format prescribed in
 
Appendix A and shall include the following items:
 
*  *  *  *  *
 
      5.  Section 203.6 has been revised to read as follows:
 
  203.6 Enforcement.
 
      (a) Administrative enforcement.  A violation of the act or
 
this regulation is subject to administrative sanctions as
 
provided in section 305 of the act, including the imposition of
 
civil money penalties, where applicable.  Compliance is enforced
 
by the agencies listed in Appendix A of this regulation.
 
*  *  *  *  *
 
      6.  Appendix A to Part 203 has been revised to read as
 
follows:
 
_____________________________________________________________________
                                  20
 
APPENDIX A to Part 203 -- Form and Instructions for Completion of
HMDA Loan/Application Register
 
Paperwork Reduction Act Notice
 
    Public reporting burden for collection of this information is
estimated to vary from 10 to 10,000 hours per response, with an
average of 200 hours per response, including time to gather and
maintain the data needed and to review instructions and complete
the information collection.  Send comments regarding this burden
estimate or any other aspect of this collection of information,
including suggestions for reducing the burden, to Secretary,
Board of Governors of the Federal Reserve System, Washington, DC
20551; and to the Office of Information and Regulatory Affairs,
Office of Management and Budget, Washington, DC 20503.
 
I.   WHO MUST FILE A REPORT
 
     A.  Subject to the exceptions discussed below, banks,
         savings associations, credit unions, and other mortgage
         lending institutions must complete a register listing
         data about loan applications received, loans
         originated, and loans purchased if on the preceding
         December 31 an institution:
 
         1.  Had assets of more than $10 million, and
 
         2.  Had a home or a branch office in a "metropolitan
             statistical area" or a "primary metropolitan
             statistical area" (both are referred to in these
             instructions by the term "MSA").
 
         Example:  If on December 31 you had a home or a branch
         office in an MSA and your assets exceeded $10 million,
         you must complete a register that lists the home
         purchase and home improvement loans that you originate
         or purchase (and also lists applications that did not
         result in an origination) beginning January 1.
 
     B.  You need not complete a register -- even if you meet
         the tests for asset size and location -- if your
         institution is a bank, savings association, or credit
         union that made no first-lien home purchase loans on
 
_____________________________________________________________________
                                  21
 
         one-to-four family dwellings in the preceding calendar
         year.  This exception does not apply in the case of
         nondepository institutions.
 
     C.  You need not complete a register -- even if you meet
         the tests for asset size and location -- if your
         institution is a for-profit mortgage lender (other than
         a bank, savings association, or credit union) and the
         home purchase loans that you originated in the
         preceding calendar year came to less than 10 percent of
         your total loan origination volume, measured in
         dollars.
 
     D.  If you are a for-profit mortgage lender (other than a
         bank, savings association, or credit union) the asset
         test is based on the combined assets of your
         institution and any parent corporation.
 
     E.  If you are the subsidiary of a bank or savings
         association you must complete a separate register for
         your institution.  You will submit the register,
         directly or through your parent, to the agency that
         supervises your parent.  (See paragraph VI.)
 
     F.  Institutions that are specifically exempted by the
         Federal Reserve Board from complying with the federal
         Home Mortgage Disclosure Act because they are covered
         by a similar state law on mortgage loan disclosures
         must use the disclosure form required by their state
         law and submit the data to their state supervisory
         agency.
 
II.  REQUIRED FORMAT AND REPORTING PROCEDURES
 
     A.  Institutions are expected to submit data to their
         supervisory agencies in an automated, machine-readable
         form unless 100 or fewer application and loan entries
         are reported.  The format must conform exactly to the
         form FR HMDA-LAR, including the order of columns,
         column headings, etc.  Contact your federal supervisory
         agency for information regarding procedures and
         technical specifications for automated data submission.
 
_____________________________________________________________________
                                  22
 
          An institution that submits its register in non-automated
          form must send two copies that are typed or
          computer printed.  You must use the format of the
          loan/application register, but are not required to use
          the form itself.  Each page must be numbered, and the
          total number of pages must be given (for example, "Page
          1 of 3").
 
      B.  The required data are to be entered in the register for
          each loan origination, each application acted on, and
          each loan purchased during the calendar year.  Your
          institution should decide on the procedure it wants to
          follow -- for example, whether to begin entering the
          required data when an application is received, or to
          wait until final action is taken (such as when a loan
          goes to closing or an application is denied).  Keep in
          mind that an application is to be reported in the
          calendar year when final action is taken.  Report loan
          originations in the year they go to closing; if an
          application has been approved but has not yet gone to
          closing at year-end, report it the following year.
 
      C.  Your institution may collect the data on separate
          registers at different branches, or on separate
          registers for different loan types (such as for home
          purchase or home improvement loans, or for loans on
          multifamily dwellings).  But make sure the application
          or loan numbers (discussed under paragraph V.A.1.,
          below) are unique.
 
      D.  Entries need not be grouped on your register by MSA, or
          chronologically, or by census tract numbers, or in any
          other particular order.
 
III.  SUBMISSION OF HMDA-LAR AND RELEASE OF DISCLOSURE STATEMENTS
 
      A.  You must submit the data for your institution to the
          office specified by your supervisory agency no later
          than March 1 following the calendar year for which the
          data are compiled.  A list of the agencies appears at
          the end of these instructions.
 
      B.  You must submit all required data to your supervisory
          agency in one complete Package, with the prescribed
 
_____________________________________________________________________
                                   23
 
          transmittal sheet.  An officer of your institution must
          certify to the accuracy of the data.
 
      C.  You are encouraged to provide in a cover letter an
          approximate count of the total number of line entries
          contained in your data submission.  If you are a
          depository institution, you also are asked to include a
          list of the MSAs where you have a home or branch
          office.
 
      D.  The Federal Financial Institution Examination Council
          (FFIEC) will prepare a disclosure statement from the
          data you submit.  Your disclosure statement will be
          returned to the name and address indicated on the
          transmittal sheet.  When you receive that disclosure
          statement you must make a copy available for inspection
          by the public within 30 calendar days of the date the
          statement is received by your institution.  You must
          make a complete copy available at your home office.  If
          you have physical branch offices in other MSAs, you
          must make available, at one branch office in each of
          those MSAs, either the complete statement or the
          portion of the statement relating to that MSA.
 
          Your agency can provide you with HMDA posters that you
          can use to inform the public of the availability of
          your disclosure statement, or you may print your own
          posters.
 
IV.   TYPES OF LOANS AND APPLICATIONS COVERED AND EXCLUDED BY
      HMDA
 
      A.  Types of loans and applications to be reported.
 
          1.  Report the data on home purchase and home improvement
              loans that you originated (that is, loans that
              were closed in your name) and loans that you
              purchased during the calendar year covered by the
              report.  Report these data even if the loans were
              subsequently sold by your institution.  Include
              refinancings of home purchase and home improvement
              loans.
 
_____________________________________________________________________
                                   24
 
          2.  Report the data for applications for home purchase
              and home improvement loans that did not result in
              originations -- for example, applications that your
              institution denied or that the applicant withdrew
              during the calendar year covered by the report.
 
          3.  In the case of brokered loan applications or
              applications forwarded to you through a
              correspondent, show the data for all applications
              -denied by your institution (whether or not they
              would have closed in your institution's name).
              Report the race or national origin, sex, and income
              information, unless your institution is a bank,
              savings association or credit union with assets of
              $30 million or less on the preceding December 31.
 
          4.  Report applications that were received in the
              previous calendar year but were acted upon during
              the calendar year covered by the current register.
 
      B.  Data to be excluded.
 
          Do not report loans or applications for loans of the
          following types:
 
          1.  Loans that, although secured by real estate, are
              made for purposes other than home purchase, home
              improvement, or refinancing (for example, do not
              report a loan secured by residential real property
              for purposes of financing college tuition, a
              vacation, or goods for business inventory).
 
          2.  Loans made in a fiduciary capacity (for example, by
              your trust department).
 
          3.  Loans on unimproved land.
 
          4.  Construction or bridge loans and other temporary
              financing.
 
          5.  The purchase of an interest in a pool of loans
              (such as mortgage-participation certificates).
 
          6.  The purchase solely of the right to service loans.
 
_____________________________________________________________________
                                   25
 
  V.   INSTRUCTIONS FOR COMPLETION OF LOAN/APPLICATION REGISTER
 
       A.  Application or loan information.
 
           1.  Application or loan number.  Enter an identifying
               number that can be used later to retrieve the loan
               or application file.  It can be any number of your
               choosing (not exceeding 25 characters).  You may
               use letters, numerals, or a combination of both.
 
               Make sure that all numbers are unique within your
               institution.  If your register contains data for
               branch offices, for example, you could use a letter
               or a numerical code to identify the loans or
               applications of different branches, or could assign
               a certain series of numbers to particular branches
               to avoid duplicate numbers.  You are strongly
               encouraged not to use the applicant's or borrower's
               name or social security number, for privacy
               reasons.
 
          2.   Date application received.  Enter the date the loan
               application was received by your institution by
               month, day, and year, using numerals in the form
               MM/DD/YY (for example, 01/15/92).  If your
               institution normally records the date shown on the
               application form, you may use that date instead.
               Enter "NA" for loans purchased by your institution.
 
          3.   Type.  Indicate the type of loan or application by
               entering the applicable code from the following:
 
               1 --  Conventional (any loan other than FHA, VA or
                     FmHA loans)
               2 --  FHA-insured (Federal Housing Administration)
               3 --  VA-guaranteed (Veterans Administration)
               4 --  FmHA-insured (Farmers Home Administration)
 
          4.   Purpose.  Indicate the purpose of the loan or
               application by entering the applicable code from
               the following:
 
               1 --  Home purchase (one-to-four family)
               2 --  Home improvement (one-to-four family)
 
_____________________________________________________________________
                                  26
 
               3 --  Refinancing (home purchase or home
                     improvement, one-to-four family)
               4 --  Multifamily dwelling (home purchase, home
                     improvement, and refinancings)
 
           5.  Explanation of purpose codes.
 
               Code 1:  Home purchase.
 
               a.   This code applies to loans and applications
                    made for the purpose of purchasing a
                    residential dwelling for one to four families,
                    if the loan is to be secured by the dwelling
                    being purchased or by another dwelling.
 
               b.   At your option, you may use code 1 for loans
                    that are made for home improvement purposes
                    but are secured by a first lien, if you
                    normally classify such first-lien loans as
                    home purchase loans.
 
               Code 2:  Home improvement.
 
               a.   Code 2 applies to loans and applications for
                    loans that (1) the borrowers have said will be
                    used for repairing, rehabilitating, or
                    remodeling one-to-four family residential
                    dwellings, and (2) are recorded on your books
                    as home improvement loans.
 
               b.   Report both secured and unsecured loans.
 
               c.   At your option, you may report data about home
                    equity lines of credit -- even if the credit
                    line is not recorded on your institution's
                    books as a home improvement loan.  If you
                    choose to do so, you may report a home equity
                    line of credit as a home improvement loan if
                    the borrower or applicant indicates, at the
                    time of application or when the account is
                    opened, that some portion of the proceeds will
                    be used for home improvement.  (See Paragraph
                    8. "Loan amount," below.) If you report
                    originations of home equity lines of credit,
 
_____________________________________________________________________
                                   27
 
                you must also report applications for such
                loans that did not result in originations.
 
           Code 3:  Refinancings.
 
           a.   Use this code for refinancings (and
                applications for refinancings) of home
                purchase or home improvement loans on one-to-four
                family residential dwellings.  A
                refinancing involves the satisfaction of an
                existing obligation that is replaced by a new
                obligation undertaken by the same borrower.
                But do not report a refinancing if, under the
                loan agreement, you are unconditionally
                obligated to renew or refinance the
                obligation, or you are obligated to renew or
                refinance the obligation subject to conditions
                within the borrower's control.
 
           b.   Use this code whether or not you were the
                original creditor on the loan being
                refinanced, and whether or not the refinancing
                involves an increase in the outstanding
                principal.
 
           c.   Report a refinancing if the amount outstanding
                on the original loan, plus the amount of new
                money (if any) that is for home purchase or
                home improvement purposes, is more than 50
                percent of the total new loan amount.  Do not
                report a refinancing if 50 percent or less of
                the loan proceeds or the amount applied for is
                for home purchase or home improvement.
 
           Code 4:  Multifamily dwelling.
 
           a.   Use this code for loans and loan applications
                on dwellings for five or more families,
                including home purchase loans, refinancings,
                and loans for repairing, rehabilitation, and
                remodeling purposes.
 
           b.   Do not use this code for loans on individual
                condominium or cooperative units; use codes 1,
                2, or 3 for such loans, as applicable.
 
_____________________________________________________________________
                                  28
 
           6.  Owner occupancy.  Indicate whether the property to
               which the loan or loan application relates is to be
               owner-occupied as a principal dwelling by entering
               the applicable code from the following:
 
               1 -- owner-occupied as a principal dwelling
               2 -- Not owner-occupied
               3 -- Not applicable
 
           7.  Explanation of codes.
 
               a.   Use code 2 for second homes or vacation homes,
                    as well as rental properties.
 
               b.   Use code 2 only for nonoccupant loans, or
                    applications for nonoccupant loans, related to
                    one-to-four family dwellings (including
                    individual condominium or cooperative units).
 
               c.   Use code 3 if the property to which the loan
                    relates is a multifamily dwelling; is not
                    located in an MSA; or is located in an MSA in
                    which your institution has neither a home nor
                    a branch office.
 
               d.   For purchased loans, you may assume that the
                    property will be owner-occupied as a principal
                    dwelling (code 1) unless the loan documents or
                    application contain information to the
                    contrary.
 
           8.  Loan amount.  Enter the amount of the loan or
               application.  Do not report loans below $500.  Show
               the amount in thousands rounding to the nearest
               thousand ($500 should be rounded up to the next
               $1,000).  For example, a loan for $167,300 should
               be entered as 167 and one for $15,500 as 16.
 
               a.   For home purchase loans that you originate,
                    enter the principal amount of the loan as the
                    loan amount.  For home purchase loans that you
                    purchase, enter the unpaid principal balance
                    of the loan at the time of purchase as the
                    loan amount.
 
_____________________________________________________________________
 
                                   29
 
               b.   For home improvement loans (both originations
                    and purchases), you may include unpaid finance
                    charges in the loan amount if that is how you
                    record such loans on your books.
 
               c.   For home equity lines of credit (if you have
                    chosen to report them), enter as the loan
                    amount only that portion of the line that the
                    applicant or borrower has indicated, at the
                    time the application is made or when the
                    account is opened, as being for home
                    improvement.  Report the loan amount for
                    applications that did not result in
                    originations in the same manner.  Report only
                    in the year the line is established.
 
               d.   For refinancings that are to be reported,
                    indicate the total amount of the refinancing,
                    including the amount outstanding on the
                    original loan and the amount of new money (if
                    any).
 
               e.   For a loan application that was denied or
                    withdrawn, enter the amount applied for.
 
               f.   If you offered to lend less than the applicant
                    applied for, enter the amount of the loan if
                    the offer was accepted by the applicant.  If
                    the offer was not accepted, enter the amount
                    that the applicant applied for.
 
       B.  Action taken.
 
           1.  Type of action.  Indicate the type of action taken
               on the application or loan by using one of the
               following codes.  Do not report any loan
               application still pending at the end of the
               calendar year.  You will report that application on
               your register for the year in which final action is
               taken.
 
               1 -- Loan originated
               2 -- Application approved but not accepted by
                    applicant
               3 -- Application denied
 
_____________________________________________________________________
                                  30
 
               4 -- Application withdrawn
               5 -- File closed for incompleteness
               6 -- Loan purchased by your institution
 
           2.  Explanation of codes.
 
               a.   Use code 2 when an application is approved but
                    the applicant fails to respond to your
                    notification of approval or your commitment
                    letter within the specified time.
 
               b.   Use code 4 only when an application is
                    expressly withdrawn by the applicant before a
                    credit decision was made.
 
               c.   Use code 5 if you sent a written notice of
                    incompleteness under section 202.9(c)(2) of
                    Regulation B (Equal Credit Opportunity) and
                    the applicant failed to respond to your
                    request for additional information within the
                    period of time specified in your notice.
 
           3.  Date of action.  Enter the date by month, day, and
               year, using numerals in the form MM/DD/YY (for
               example, 02/22/92).
 
               a.   For loans originated, enter the settlement or
                    closing date.  For loans purchased, enter the
                    date of purchase by your institution.
 
               b.   For applications denied, applications approved
                    but not accepted by the applicant, and files
                    closed for incompleteness, enter the date that
                    the action was taken by your institution or
                    the date the notice was sent to the applicant.
 
               c.   For applications withdrawn, enter the date you
                    received the applicant's express withdrawal;
                    or you may enter the date shown on the
                    notification from the applicant, in the case
                    of a written withdrawal.
 
      C.  Property location.  In these columns enter the
          applicable codes for the MSA, state, county, and census
          tract for the property to which a loan relates.  For
 
_____________________________________________________________________
                                   31
 
          home purchase loans secured by one dwelling, but made
          for the purpose of purchasing another dwelling, report
          the property location for the property in which the
          security interest is to be taken.  If the home purchase
          loan is secured by more than one property, report the
          location data for the property being purchased.  (See
          paragraphs 5. and 6. below for treatment of loans on
          property outside the MSAs in which you have offices.)
 
          1.  MSA.  For each loan or loan application, indicate
              the location of the property by the MSA number.
              Enter only the MSA number, not the MSA name.  MSA
              boundaries are defined by the U.S. Office of
              Management and Budget; use the boundaries that were
              in effect on January 1 of the calendar year for
              which you are reporting.  A listing of MSAs is
              available from your regional supervisory agency or
              the FFIEC.  (In these instructions, the term MSA
              refers to both metropolitan statistical area and
              primary metropolitan statistical area.)
 
          2.  State and county.  You must use the Federal
              Information Processing Standard (FIPS) two-digit
              numerical code for the state and the three-digit
              numerical code for the county.  These codes are
              available from your regional supervisory agency or
              the FFIEC.  Do not use the letter abbreviations
              used by the U.S. Postal Service.
 
          3.  Census tract.  Indicate the census tract where the
              property is located.
 
              a.   Enter the code "NA" if the property is located
                   in an area not divided into census tracts on
                   the U.S. Census Bureau's census-tract outline
                   maps (see paragraph 4. below).
 
              b.   If the property is located in a county with a
                   population of 30,000 or less in the 1990
                   census (as determined by the Census Bureau's
                   1990 CPH-2 population series), enter "NA"
                   (even if the population has increased above
                   30,000 since 1990), or you may enter the
                   census tract number.
 
_____________________________________________________________________
                                   32
 
          4.  Census tract number.  For the census tract number,
              consult the U. S. Census Bureau's Census
              Tract/Street Index for 1990, and for addresses not
              listed in the index, consult the Census Bureau's
              census tract outline maps.  You must use the maps
              from the Census Bureau's 1990 CPH-3 series, or
              equivalent 1990 census data from the Census Bureau
              (such as the Census TIGER/Line File) or from a
              private publisher.
 
          5.  Outside-MSA.  For loans on property located outside
              the MSAs in which you have a home or branch office
              (or outside any MSA), you may enter the MSA, state,
              county, and census tract numbers or you may enter
              the code "NA" in each of these columns.
 
          6.  Nondepository lenders.  If you are a for-profit
              mortgage lending institution (other than a bank,
              savings association, or credit union), and in the
              preceding calendar year you received applications
              for, or originated or purchased, loans for home
              purchase or home improvement adding up to a total
              of five or more for a given MSA, you are deemed to
              have a branch office in that MSA, whether or not
              you have a physical office there.  As a result, you
              will have to enter the MSA, state, county, and
              census tract numbers for any transactions in that
              MSA.  Because you must keep accurate records about
              lending within MSAs in the current calendar year in
              order to report data accurately the following year,
              to comply with this rule you may find it easier to
              enter the geographic information routinely for any
              property located within any MSA.
 
     D.   Applicant information -- race or national origin, sex,
          and income.  Appendix B of Regulation C contains
          instructions for the collection of data on race or
          national origin and sex, and also contains a sample
          form for data collection.  The form is substantially
          similar to the form prescribed by section 202.13 of
          Regulation B (Equal Credit Opportunity) and contained
          in Appendix B to that regulation.  You may use either
          form.
 
_____________________________________________________________________
                                   33
 
          1.  Applicability.  You must report this applicant
              information for loans that you originate as well as
              for applications that do not result in an
              origination.
 
              a.   You need not collect or report this
                   information for loans purchased.  If you
                   choose not to, enter the codes specified in
                   paragraphs 3., 4., and 5. below for "not
                   applicable."
 
              b.   If your institution is a bank, savings
                   association, or credit union that had assets
                   of $30 million or less on the preceding
                   December 31, you may -- but need not -- collect
                   and report these data.  If you choose
                   not to, enter the codes specified in
                   paragraphs 3., 4., and 5. below for "not
                   applicable."
 
              c.   If the borrower or applicant is not a natural
                   person (a corporation or partnership, for
                   example), use the codes specified in
                   paragraphs 3., 4., and 5. below for "not
                   applicable."
 
          2.  Mail and telephone applications.  Any loan
              applications mailed to applicants must contain a
              collection form similar to that shown in Appendix
              B, and you must record on your register the data on
              race or national origin and sex if the applicant
              provides it.  If the applicant chooses not to
              provide the data, enter the code for "information
              not provided by applicant in mail or telephone
              application" specified in paragraphs 3. and 4.
              below.  If an application is taken entirely by
              telephone, you need not request this information.
              (See Appendix B for complete information on the
              collection of this data in mail or telephone
              applications.)
 
          3.  Race or national origin of borrower or applicant.
              Use the following codes to indicate the race or
              national origin of the applicant or borrower under
              column "A" and of any co-applicant or co-borrower
 
_____________________________________________________________________
                                   34
 
              under column "CA."  If there is more than one
              co-applicant, provide this information only for the
              first co-applicant listed on the application form.
              If there are no co-applicants or co-borrowers,
              enter code 8 for "not applicable" in the co-applicant
              column.
 
              1 -- American Indian or Alaskan Native
              2 -- Asian or Pacific Islander
              3 -- Black
              4 -- Hispanic
              5 -- White
              6 -- Other
              7 -- Information not provided by applicant in
                   mail or telephone application
              8 -- Not applicable
 
          4.  Sex of borrower or applicant.  Use the following
              codes to indicate the sex of the applicant or
              borrower under column "A" and of any co-applicant
              or co-borrower under column "CA."  If there is more
              than one co-applicant, provide this information
              only for the first co-applicant listed on the
              application form.  If there are no co-applicants or
              co-borrowers, enter code 4 for "not applicable."
 
              1 -- Male
              2 -- Female
              3 -- Information not provided by applicant in
                   mail or telephone application
              4 -- Not applicable
 
          5.  Income.  Enter the gross annual income that your
              institution relied upon in making the credit
              decision.
 
              a.   Round all dollar amounts to the nearest
                   thousand (round $500 up to the next $1,000),
                   and show in terms of thousands.  For example,
                   $35,500 should be reported as 36.
 
              b.   For loans on multifamily dwellings, enter
                   "NA."
 
_____________________________________________________________________
                                  35
 
              c.   If no income information is asked for or
                   relied on in the credit decision (such as in
                   "no income verification" type loans), enter
                   "NA."
 
     E.  Type of purchaser.
 
         1.   Enter the applicable code to indicate whether a
              loan that your institution originated or purchased
              was then sold to a secondary market entity within
              the same calendar year:
 
              0 -- Loan was not originated or was not sold in
                   calendar year covered by register
              1 -- FNMA (Federal National Mortgage Association)
              2 -- GNMA (Government National Mortgage
                   Association)
              3 -- FHLMC (Federal Home Loan Mortgage Corporation)
              4 -- FmHA (Farmers Home Administration)
              5 -- Commercial bank
              6 -- Savings bank or savings association
              7 -- Life insurance company
              8 -- Affiliate institution
              9 -- Other type of purchaser
 
         2.   Explanation of codes.
 
              a.   Enter the code 0 for applications that were
                   denied, withdrawn, or approved but not
                   accepted by the applicant; and for files
                   closed for incompleteness.
 
              b.   If you originated or purchased a loan and did
                   not sell it during that same calendar year,
                   enter the code 0.  If you sell the loan in a
                   succeeding year, you need not report the sale.
 
              c.   If you conditionally assign a loan to GNMA in
                   connection with a mortgage-backed security
                   transaction, use code 2.
 
              d.   Loans "swapped" for mortgage-backed securities
                   are to be treated as sales; enter the type of
                   entity receiving the loans that are swapped as
                   the purchaser.
 
_____________________________________________________________________
                                  36
 
              e.   Use code 8 for loans sold to an institution
                   affiliated with you, such as your subsidiary
                   or a subsidiary of your parent corporation.
 
      F.  Reasons for denial.
 
          1.  You are not required to enter the reasons for the
              denial of an application.  But if you choose to do
              so, you may indicate up to three reasons by using
              the following codes:
 
              1 -- Debt-to-income ratio
              2 -- Employment history
              3 -- Credit history
              4 -- Collateral
              5 -- Insufficient cash (downpayment, closing costs)
              6 -- Unverifiable information
              7 -- Credit application incomplete
              8 -- Mortgage insurance denied
              9 -- Other
 
          2.  Leave this column blank if the "action taken" on
              the application is not a denial.  For example, do
              not complete this column if the application was
              withdrawn or the file was closed for
              incompleteness.
 
          3.  If your institution uses the model form for adverse
              action contained in the appendix to Regulation B
              (Form C-1 in Appendix C, Sample Notification Form,
              which offers some 20 reasons for denial), the
              following list shows which codes to enter.
 
              a.   Code 1 corresponds to:  Income insufficient
                   for amount of credit requested, and Excessive
                   obligations in relation to income.
 
              b.   Code 2 corresponds to:  Temporary or irregular
                   employment, and Length of employment.
 
              c.   Code 3 corresponds to:  Insufficient number of
                   credit references provided; Unacceptable type
                   of credit references provided; No credit file;
                   Limited credit experience; Poor credit
                   performance with us; Delinquent past or
 
_____________________________________________________________________
                                   37
 
                   present credit obligations with others;
                   Garnishment, attachment, foreclosure,
                   repossession, collection action, or judgment;
                   and Bankruptcy.
 
              d.   Code 4 corresponds to:  Value or type of
                   collateral not sufficient.
 
              e.   Code 6 corresponds to:  Unable to verify
                   credit references, Unable to verify
                   employment, Unable to verify income, and
                   Unable to verify residence.
 
              f.   Code 7 corresponds to:  Credit application
                   incomplete,
 
              g.   Code 9 corresponds to:  Length of residence,
                   Temporary residence, and Other reasons
                   specified on notice.
 
VI.   FEDERAL SUPERVISORY AGENCIES
 
      Send your loan/application register and direct any
      questions to the office of your federal supervisory agency
      as specified below.  If you are the nondepository subsidiary
      of a bank, savings association, or credit union, send the
      register to the supervisory agency for your parent
      institution.
 
      A.  National banks and their subsidiaries.  District office
          of the Office of the Comptroller of the Currency
          supervising the national bank.
 
      B.  State member banks of the Federal Reserve System, their
          subsidiaries, and subsidiaries of bank holding
          companies.  Federal Reserve Bank serving the district
          in which the state member bank is located; for
          institutions other than state member banks, the Federal
          Reserve Bank specified by the Board of Governors.
 
      C.  Nonmember insured banks (except for federal savings
          banks) and their subsidiaries.  Regional Director of
          the Federal Deposit Insurance Corporation for the
          region in which the bank or the subsidiary is located.
 
_____________________________________________________________________
                                   38
 
      D.  Savings institutions insured under the Savings
          Association Insurance Fund of the FDIC, federally-chartered
          savings banks insured under the Bank
          Insurance Fund of the FDIC (but not including state-chartered
          savings banks insured under the Bank
          Insurance Fund), their subsidiaries, and subsidiaries
          of savings institution holding companies.  Regional or
          other office specified by the Office of Thrift
          Supervision.
 
      E.  Credit unions.  National Credit Union Administration,
          Office of Examination and Insurance, 1776 G Street,
          NW., Washington, DC 20456.
 
      F.  Other depository institutions.  Regional Director of
          the Federal Deposit Insurance Corporation for the
          region in which the institution is located.
 
      G.  Other mortgage lending institutions.  Assistant
          Secretary for Housing, HMDA Reporting -- Room 9233,
          U.S. Department of Housing and Urban Development, 451
          7th Street, SW., Washington, DC 20410.
 
_____________________________________________________________________
 
                                   39
 
LOAN/APPLICATION REGISTER
 
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                                  40
 
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                                   42
 
     By order of the Board of Governors of the Federal
Reserve System, November 20, 1991.
 
                               (signed) William W. Wiles
                                    William W. Wiles
                                Secretary of the Board
 
_____________________________________________________________________
 
                     U. S. Department of Housing and Urban Development
                              Washington, D.C. 20410-8000
 
                               October 2, 1991
 
OFFICE OF THE ASSISTANT SECRETARY
FOR HOUSING-FEDERAL HOUSING COMMISSIONER
 
    SUBJECT:  Home Mortgage Disclosure Act Reporting Panel
 
         The Financial Institutions Reform, Recovery and Enforcement
    Act of 1989 (FIRREA) amended the Home Mortgage Disclosure Act
    (HMDA) to include reporting requirements for certain lending
    institutions which were not previously covered by the Act.  Those
    institutions must report their actions regarding their mortgage
    activity to this Department.
 
         To enable us to establish an accurate reporting panel of those
    institutions which are required to submit such reports, the
    Department needs information concerning your institution.  Some
    lenders, depending on asset size and location, in a metropolitan
    Statistical Area must fully comply with HMDA by reporting all
    application activity while others are partially exempt and only
    have to report FHA activity.  We will assume that your institution
    is required to submit the reports required by HMDA to this
    Department unless you certify that you report to another Federal
    regulatory agency.
 
         Please furnish the information requested on the reverse side
    of this letter.  The information must be certified as being
    accurate by an officer of your institution.  A failure to respond
    will result in the Department enforcing the reporting requirement
    on your institution.
 
         Please return this letter with the required data within 15
    days to:
 
                         Dr. William F. Shaw
                         Room 9241 - HMDA Panel
                         Department of Housing and Urban Development
                         Washington, D.C. 20410
 
_____________________________________________________________________
 
2.
 
      If there are any questions on this matter, please contact
Dr. Shaw at (202) 708-2190.  Also, a list of valid 1980 Census
Tracts is now available, upon request.
 
                                      J. Hill
                              Assistant Secretary for
                                 Housing-Federal Housing Commissioner
 
We currently submit HMDA reports to the agency checked below:
 
     Federal Reserve          FDIC              OCC
 
     NCUA                     HUD               OTS
 
Our asset size (including parent) is $ _______________________
 
I certify to the accuracy of this report.
 
______________________________     _____________________    ______________
       Name (Please Print)         Signature                Date
 
_____________________________________________________________________
 
Federal Financial Institutions Examination Council
___________________________________________________________________________
 
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