Federal Register / Vol. 60, No. 86 / Thursday, May 4, 1995 / Rules and Regulations 22223

individuals) and businesses and farms of

different sizes that is reasonable given the

demographics of the savings association’s

assessment area(s);

(iv) A record of taking appropriate action,

as warranted, in response to written

complaints, if any, about the savings

association’s performance in helping to meet

the credit needs of its assessment area(s); and

(v) A reasonable geographic distribution of

loans given the savings association’s

assessment area(s).

(2) Eligibility for an outstanding rating. A

savings association that meets each of the

standards for a ‘‘satisfactory’’ rating under

this paragraph and exceeds some or all of

those standards may warrant consideration

for an overall rating of ‘‘outstanding.’’ In

assessing whether a savings association’s

performance is ‘‘outstanding,’’ the OTS

considers the extent to which the savings

association exceeds each of the performance

standards for a ‘‘satisfactory’’ rating and its

performance in making qualified investments

and its performance in providing branches

and other services and delivery systems that

enhance credit availability in its assessment

area(s).

(3) Needs to improve or substantial

noncompliance ratings. A savings association

also may receive a rating of ‘‘needs to

improve’’ or ‘‘substantial noncompliance’’

depending on the degree to which its

performance has failed to meet the standards

for a ‘‘satisfactory’’ rating.

(e) Strategic plan assessment and rating.

(1) Satisfactory goals. The OTS approves as

‘‘satisfactory’’ measurable goals that

adequately help to meet the credit needs of

the savings association’s assessment area(s).

(2) Outstanding goals. If the plan identifies

a separate group of measurable goals that

substantially exceed the levels approved as

‘‘satisfactory,’’ the OTS will approve those

goals as ‘‘outstanding.’’

(3) Rating. The OTS assesses the

performance of a savings association

operating under an approved plan to

determine if the savings association has met

its plan goals:

(i) If the savings association substantially

achieves its plan goals for a satisfactory

rating, the OTS will rate the savings

association’s performance under the plan as

‘‘satisfactory.’’

(ii) If the savings association exceeds its

plan goals for a satisfactory rating and

substantially achieves its plan goals for an

outstanding rating, the OTS will rate the

savings association’s performance under the

plan as ‘‘outstanding.’’

(iii) If the savings association fails to meet

substantially its plan goals for a satisfactory

rating, the OTS will rate the savings

association as either ‘‘needs to improve’’ or

‘‘substantial noncompliance,’’ depending on

the extent to which it falls short of its plan

goals, unless the savings association elected

in its plan to be rated otherwise, as provided

in § 25.27(f)(4).

Appendix B to Part 563e—CRA Notice

(a) Notice for main offices and, if an

interstate savings association, one branch

office in each state.

Community Reinvestment Act Notice

Under the Federal Community

Reinvestment Act (CRA), the Office of Thrift

Supervision (OTS) evaluates our record of

helping to meet the credit needs of this

community consistent with safe and sound

operations. The OTS also takes this record

into account when deciding on certain

applications submitted by us.

Your involvement is encouraged.

You are entitled to certain information

about our operations and our performance

under the CRA, including, for example,

information about our branches, such as their

location and services provided at them; the

public section of our most recent CRA

Performance Evaluation, prepared by the

OTS; and comments received from the public

relating to our performance in helping to

meet community credit needs, as well as our

responses to those comments. You may

review this information today.

At least 30 days before the beginning of

each quarter, the OTS publishes a nationwide

list of the savings associations that are

scheduled for CRA examination in that

quarter. This list is available from the

Regional Director (address). You may send

written comments about our performance in

helping to meet community credit needs to

(name and address of official at savings

association) and OTS (address). Your letter,

together with any response by us, will be

considered by the OTS in evaluating our CRA

performance and may be made public.

You may ask to look at any comments

received by the Regional Director. You may

also request from the Regional Director an

announcement of our applications covered

by the CRA filed with the OTS. We are an

affiliate of (name of holding company), a

savings and loan holding company. You may

request from the Regional Director an

announcement of applications covered by the

CRA filed by savings and loan holding

companies.

(b) Notice for branch offices.

Community Reinvestment Act Notice

Under the Federal Community

Reinvestment Act (CRA), the Office of Thrift

Supervision (OTS) evaluates our record of

helping to meet the credit needs of this

community consistent with safe and sound

operations. The OTS also takes this record

into account when deciding on certain

applications submitted by us.

Your involvement is encouraged.

You are entitled to certain information

about our operations and our performance

under the CRA. You may review today the

public section of our most recent CRA

evaluation, prepared by the OTS, and a list

of services provided at this branch. You may

also have access to the following additional

information, which we will make available to

you at this branch within five calendar days

after you make a request to us: (1) A map

showing the assessment area containing this

branch, which is the area in which the OTS

evaluates our CRA performance in this

community; (2) information about our

branches in this assessment area; (3) a list of

services we provide at those locations; (4)

data on our lending performance in this

assessment area; and (5) copies of all written

comments received by us that specifically

relate to our CRA performance in this

assessment area, and any responses we have

made to those comments. If we are operating

under an approved strategic plan, you may

also have access to a copy of the plan.

[If you would like to review information

about our CRA performance in other

communities served by us, the public file for

our entire savings association is available at

(name of office located in state), located at

(address).]

At least 30 days before the beginning of

each quarter, the OTS publishes a nationwide

list of the savings associations that are

scheduled for CRA examination in that

quarter. This list is available from the

Regional Director (address). You may send

written comments about our performance in

helping to meet community credit needs to

(name and address of official at savings

association) and the Regional Director

(address). Your letter, together with any

response by us, will be considered by the

OTS in evaluating our CRA performance and

may be made public.

You may ask to look at any comments

received by the Regional Director. You may

also request from the Regional Director an

announcement of our applications covered

by the CRA filed with the OTS. We are an

affiliate of (name of holding company), a

savings and loan holding company. You may

request from the Regional Director an

announcement of applications covered by the

CRA filed by savings and loan holding

companies.

§§ 563e.1, 563e.2, and 563e.8 [Removed]

3. Sections 563e.1, 563e.2, and 563e.8

are removed effective July 1, 1995.

§§ 563e.3, 563e.4, 563e.5, 563e.6, and 563e.7

and Subpart D [Removed]

4. Sections 563e.3, 563e.4, 563e.5,

563e.6 and 563e.7, and subpart D,

consisting of 563e.51 are removed

effective July 1, 1997.

Dated: April 19, 1995.

By the Office of Thrift Supervision.

Jonathan L Fiechter,

Acting Director.

[FR Doc. 95–10503 Filed 5–3–95; 8:45 am]

BILLING CODES 4810–33–P, 6210–01–P, 6714–01–P,

6720–01–P

FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R–0848]

Home Mortgage Disclosure

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Final rule.

SUMMARY: The Board is publishing a

final rule to amend Regulation C (Home

Mortgage Disclosure) and the

instructions that financial institutions
22224 Federal Register / Vol. 60, No. 86 / Thursday, May 4, 1995 / Rules and Regulations

must use to comply with the annual

reporting requirements under the

regulation. The amendments conform

Regulation C to reflect revisions adopted

by the Board, the Office of the

Comptroller of the Currency, the Federal

Deposit Insurance Corporation, and the

Office of Thrift Supervision to their

regulations implementing the

Community Reinvestment Act (CRA).

Under the joint CRA rule (published

elsewhere in today’s Federal Register),

banks or savings associations that report

data about their home mortgage lending

pursuant to the Home Mortgage

Disclosure Act (HMDA)—and that have

assets of $250 million or more, or that

are subsidiaries of a holding company

with total banking and thrift assets of $1

billion or more—will collect and report

geographic information on loans and

loan applications relating to property

located outside the Metropolitan

Statistical Areas (MSAs) in which the

institution has a home or branch office,

or outside any MSA. Currently,

geographic identification is required

only within MSAs where these lenders

have a home or branch office. Data will

be collected and reported in accordance

with the instructions in Regulation C.

The agencies believe that these data will

provide geographic detail on home

mortgage lending that will facilitate

more complete CRA assessments for

institutions that do not qualify as small

banks or thrifts.

DATES: This final rule is effective May 1,

1995. Compliance is mandatory for loan

and application data collected

beginning January 1, 1996.

FOR FURTHER INFORMATION CONTACT: Jane

Jensen Gell or W. Kurt Schumacher,

Staff Attorneys, Division of Consumer

and Community Affairs, Board of

Governors of the Federal Reserve

System, Washington, DC 20551, at (202)

452–2412 or (202) 452–3667. For the

hearing impaired only, contact Dorothea

Thompson, Telecommunications Device

for the Deaf (TDD), at (202) 452–3544.

SUPPLEMENTARY INFORMATION:

I. 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). HMDA

requires most mortgage lenders located

in metropolitan areas to collect data

about their housing-related lending

activity. Annually, lenders must report

that data to their federal supervisory

agencies and disclose the data to the

public. The reports and disclosures

cover loan originations, applications

that do not result in originations (for

example, applications that are denied or

withdrawn), and loan purchases.

Information reported includes the

location of the property to which the

loan or application relates; the race or

national origin, gender, and gross

annual income of the borrower or

applicant; and the type of purchaser for

loans sold in the secondary market.

II. Summary of Amendment

In October 1994 (59 FR 51232,

October 7, 1994), the federal financial

regulatory agencies proposed

amendments to their CRA regulations

requiring banks or savings associations

that report data about their home

mortgage lending pursuant to HMDA—

and that have assets of $250 million or

more, or that are subsidiaries of a

holding company with total banking

and thrift assets of $250 million or

more—to collect and report geographic

information on loans and applications

relating to property located in

metropolitan areas whether or not the

institution has a home or branch office

there. They also would report

geographic information for property

located outside any MSA. (This

proposal did not affect the current

exemption in § 203.3 of Regulation C for

banks and savings associations;

institutions whose assets are $10

million or less remain exempt.)

Currently, lenders have the option of

collecting this information but are not

required to do so. The agencies believed

that these data would provide

geographic detail on home mortgage

lending that would facilitate more

complete CRA assessments for

institutions that do not qualify as small

banks or thrifts.

Commenters were divided on the

proposal. Several commenters expressed

concern about the administrative

burden and costs of complying with the

expanded reporting requirements. Many

of those commenters asserted that

comprehensive, accurate geographic

information often is difficult to obtain.

Other commenters indicated that the

regulatory burden of the expanded

reporting requirements would not be

significant and noted that the additional

data would facilitate a more precise and

quantifiable CRA assessment process.

Several commenters believed that it

would be difficult to comply with the

proposed amendment by July 1995 and

that half-year data would be of limited

usefulness. These commenters

suggested that expanded data collection

requirements should go into effect on

January 1, 1996. A number of

commenters addressed the reporting

exemption for small banks, with some

suggesting that assets should be

measured at the level of the financial

institution, not the bank holding

company.

The Board believes that the expanded

reporting requirements will provide

information about lenders’ overall

mortgage lending activity that will assist

in developing a more accurate CRA

assessment. The final amendments

address concerns expressed by

commenters. As required by agency

regulations implementing CRA, bank

and savings associations that are

subsidiaries of a holding company with

total banking and thrift assets of $1

billion or more are covered by the

reporting rules; the proposal would

have covered such subsidiaries of a

holding company with total assets of

$250 million or more. Institutions must

collect these data if the bank or savings

association had assets of $250 million or

more (or are subsidiaries of a holding

company with total banking and thrift

assets of $1 billion or more) for the prior

two consecutive years (as of December

31). The data collection requirements go

into effect for calendar year 1996, with

institutions required to report the data

in 1997.

The Board believes that the benefits of

this additional information outweigh

any additional compliance burdens.

Based on the comments received and

further analysis, the Board is adopting

final amendments to Regulation C. Set

forth below is a discussion of the final

rule.

Section 203.4—Compilation of Loan

Data

Paragraph (e)—Data Reporting Under

CRA

The final rule adds a new paragraph

to implement revisions to the agencies’

CRA regulations. Under the joint CRA

rule, banks or savings associations that

report data about their home mortgage

lending pursuant to HMDA—and have

assets of $250 million or more, or are

subsidiaries of a holding company with

total banking and thrift assets of $1

billion or more—will collect and report

geographic information for all loans and

applications, not just for loans and

applications relating to property in

MSAs where the institution has a home

or branch office. The requirement also

applies to property located outside any

MSA. The agencies believe that

incorporating these reporting

requirements in Regulation C will

facilitate compliance for lenders.
Federal Register / Vol. 60, No. 86 / Thursday, May 4, 1995 / Rules and Regulations 22225

Appendix A—Form and Instructions for

Completion of HMDA Loan/Application

Register

V. Instructions for Completion of Loan/

Application Register

C. Property Location

The Board is adding a new paragraph

to conform Regulation C to the CRA

reporting requirements for banks and

savings associations with assets of $250

million or more and banks and savings

associations that are subsidiaries of a

holding company with total banking

and thrift assets of $1 billion or more.

III. Regulatory Flexibility Analysis

The Board’s Office of the Secretary

has prepared an economic impact

analysis of the amendments to

Regulation C. A copy of the analysis

may be obtained from Publications

Services, Board of Governors of the

Federal Reserve System, Washington,

D.C. 20551, or by telephone at (202)

452–3245.

IV. Paperwork Reduction Act

In accordance with section 3507 of

the Paperwork Reduction Act of 1980

(44 U.S.C. Ch. 35; 5 CFR 1320.13), the

amended information collection has

been reviewed by the Board under the

authority delegated to the Board by the

Office of Management and Budget after

consideration of comments received

during the public comment period.

The collection of information in this

rule is in 12 CFR 203.4. This additional

information will provide geographic

detail on home mortgage lending that

will facilitate more complete CRA

assessments for institutions that do not

qualify as small banks or thrifts.

The estimated annual burden per

respondent varies from 10 to 10,000

hours, depending on individual

circumstances, with an estimated

average of 200 hours. The revision is

expected to affect about 5 percent of the

loans reported by large state members

banks, adding approximately 5 minutes,

on average, to the time required to

complete the report. There will be an

estimated 507 state member bank

reporters, averaging 202 hours and an

estimated 84 mortgage banking

subsidiaries, averaging 160 hours.

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 to read as set forth below:

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. Section 203.4 is amended by

adding a new paragraph (e) to read as

follows:

§ 203.4 Compilation of loan data.

* * * * *

(e) Data reporting under CRA for

banks and savings associations with

total assets of $250 million or more and

banks and savings associations that are

subsidiaries of a holding company

whose total banking and thrift assets are

$1 billion or more. As required by

agency regulations that implement the

Community Reinvestment Act, banks

and savings associations that had total

assets of $250 million or more (or are

subsidiaries of a holding company with

total banking and thrift assets of $1

billion or more) as of December 31 for

each of the immediately preceding two

years, shall also collect the location of

property located outside the MSAs in

which the institution has a home or

branch office, or outside any MSAs.

3. Appendix A to Part 203 is amended

by revising the introductory text of

paragraph V.C. and by adding a new

paragraph V.C.7. to read as follows:

Appendix A to Part 203—Form and

Instructions for Completion of HMDA

Loan/Application Register

* * * * *

V. * * *

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 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.,

6., and 7. of paragraph V.C. of this appendix

for treatment of loans on property outside the

MSAs in which you have offices.)

* * * * *

7. Data Reporting Under CRA for Banks and

Savings Associations With Total Assets of

$250 Million or More and Banks and Savings

Associations That Are Subsidiaries of a

Holding Company Whose Total Banking and

Thrift Assets Are $1 Billion or More

If you are a bank or savings association

with total assets of $250 million or more as

of December 31 for each of the immediately

preceding two years, you must also enter the

location of property located outside the

MSAs in which you have a home or branch

office, or outside any MSA. You must also

enter this information if you are a bank or

savings association that is a subsidiary of a

holding company with total banking and

thrift assets of $1 billion or more as of

December 31 for each of the immediately

preceding two years.

* * * * *

By order of the Board of Governors of the

Federal Reserve System, April 24, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–10475 Filed 5–3–95; 8:45 am]

BILLING CODE 6210–01–P