[Federal Register Volume 62, Number 243 (Thursday, December 18, 1997)]
[Rules and Regulations]
[Pages 66259-66260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33036]


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FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-0993]


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

AGENCY: Final rule; staff commentary.

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SUMMARY: The Board is publishing revisions to its 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 adjustment reflects changes for the twelve-month period 
ending in November. In 1998, depository institutions with assets 
totaling $29 million or less are not required to collect data.

DATES: Effective date. This rule is effective January 1, 1998.
    Applicability date. This rule applies to all data collection in 
1998.

FOR FURTHER INFORMATION CONTACT: Pamela C. Morris, Staff Attorney, 
Division of Consumer and Community Affairs, at (202) 452-3667; for 
users of Telecommunications Device for the Deaf (TDD) only, contact 
Diane Jenkins at (202) 452-3544.

SUPPLEMENTARY INFORMATION:

I. Background

    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 (Pub. L. 
104-208, 110 Stat. 3009) amended HMDA to modify the exemption threshold 
for small depository institutions. Until 1997, HMDA exempted depository 
institutions with assets of $10 million or

[[Page 66260]]

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 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.
    To implement the statutory amendment, the Board published an 
interim rule in January 1997. (62 FR 3603, Jan. 24, 1997). The interim 
rule was made final in May. (62 FR 28620, May 27, 1997; correction at 
62 FR 62339, June 19, 1997). 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. During the 
period ending in November 1997, the Consumer Price Index for Urban Wage 
Earners and Clerical Workers increased by 2.4%. As a result, the new 
threshold is $29 million. Thus, depository institutions with assets of 
$29 million or less as of December 31, 1997 are exempt from data 
collection in 1998. An institution's exemption from collecting data in 
1998 does not affect its responsibility to report the 1997 data if it 
was required to collect it.
    The Board is adopting this amendment to the staff commentary to 
implement the annual change in the exemption threshold. The 
Administrative Procedure Act provides that notice and opportunity for 
public comment are not required if an agency 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 a formula 
(adopted by the Board after notice and comment) for determining the 
annual adjustment, if any, to the exemption threshold. The Board's 
amendment to the staff commentary, which merely applies the formula, is 
technical and not subject to interpretation. For these reasons, the 
Board has determined that publishing a notice of proposed rulemaking 
for public comment for the following amendment is unnecessary. 
Therefore, the Board has adopted this amendment, establishing a new 
threshold, in final form. This rule is effective as of January 1, 1998, 
so that institutions that are no longer covered can avoid collecting 
data unnecessarily.

II. Section Analysis

Section 203.3--Exempt Institutions

    Comments 3(a)-2 and 3(a)-3 have been redesignated as comments 3(a)-
3 and 3(a)-4, respectively, and a new comment 3(a)-2 has been added to 
specify the exemption threshold, which is adjusted annually each 
December. Depository institutions with assets that are at or below the 
threshold as of December 31, 1997, need not collect the HMDA data for 
1998.

List of Subjects in 12 CFR Part 203

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

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

PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)

    1. 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, paragraphs 2 and 3 are redesignated as 
paragraphs 3 and 4, respectively; and a new paragraph 2 is added 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 1998, the asset-size exemption 
threshold is $29 million. Depository institutions with assets at or 
below $29 million are exempt from collecting data for 1998.
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, December 12, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-33036 Filed 12-17-97; 8:45 am]
BILLING CODE 6210-01-P