2 AGENDA AGENDA HMDA – Background & Purpose HMDA – Background & Purpose The Review – Goals & Process The Review – What’s New and Why Transition Rules

Revisions to Regulation C(Home Mortgage Disclosure)

22

AGENDAAGENDA

HMDA HMDA –– Background & PurposeBackground & Purpose

The Review – Goals & ProcessThe Review – Goals & Process

The Review – What’s New and WhyThe Review – What’s New and Why

Transition Rules – 2003 2004Transition Rules – 2003 2004

Census 2000Census 2000

FAQs & AnswersFAQs & Answers

Sources of InformationSources of Information

Questions?Questions?

33

BACKGROUND & PURPOSEBACKGROUND & PURPOSE

HMDA data can be used toHMDA data can be used to: :

help determine whether institutions are meeting help determine whether institutions are meeting the housing credit needs of their communitiesthe housing credit needs of their communities

identify possible discriminatory lending patterns identify possible discriminatory lending patterns and help enforce antidiscrimination lawsand help enforce antidiscrimination laws

help public officials target investments to attract help public officials target investments to attract private investment to areas where it is needed private investment to areas where it is needed

44

DATA REPORTED BY LENDERSDATA REPORTED BY LENDERS

LENDERS MUST REPORT DATA ABOUT:LENDERS MUST REPORT DATA ABOUT: EACH APPLICATION OR LOANEACH APPLICATION OR LOAN

Application date, action taken and date of that Application date, action taken and date of that action, loan amount, loan type and purpose, and, if action, loan amount, loan type and purpose, and, if the loan is sold, type of purchaser the loan is sold, type of purchaser

EACH APPLICANT OR BORROWEREACH APPLICANT OR BORROWER Ethnicity, race, sex, and incomeEthnicity, race, sex, and income

EACH PROPERTYEACH PROPERTY Location and occupancy statusLocation and occupancy status

55

THE REVIEW : GOALSTHE REVIEW : GOALS

Respond to technological and other Respond to technological and other changes in the mortgage marketchanges in the mortgage market

Improve quality and utility of dataImprove quality and utility of data Minimize undue lender burdenMinimize undue lender burden Clarify and simplify the ruleClarify and simplify the rule

66

THE REVIEW: PROCESSTHE REVIEW: PROCESS

Effective date: delayed until January 1, Effective date: delayed until January 1, 20042004 Exceptions: telephone applications rule and Exceptions: telephone applications rule and

2000 Census information, which took effect 2000 Census information, which took effect January 1, 2003January 1, 2003

77

THE REVIEW:THE REVIEW:WHAT’S NEW & WHYWHAT’S NEW & WHY

88

WHAT’S NEWWHAT’S NEW

Broader coverageBroader coverage: $25 million loan : $25 million loan volume test for nondepositories added to volume test for nondepositories added to current loan percentage testcurrent loan percentage test

Why? Why? Ensures coverage of companies Ensures coverage of companies “in the business of mortgage lending” that “in the business of mortgage lending” that also have large volumes of non-mortgage also have large volumes of non-mortgage lending lending

99


Preapprovals Manufactured Homes Revised definitionsRevised definitions

Home improvement loans Refinancings

1010


New racial & ethnic designations New racial & ethnic designations Requirement to ask applicants about Requirement to ask applicants about

their race and national origin in their race and national origin in telephone applications (telephone applications (as of as of January 1, 2003January 1, 2003))

1111

WHAT’S NEWWHAT’S NEW Loan Pricing Information:Loan Pricing Information:

Rate SpreadRate Spread HOEPA StatusHOEPA Status

Lien StatusLien Status

1212

PreapprovalsPreapprovalsA request for preapproval is an application A request for preapproval is an application

for credit if there is a ...for credit if there is a ... ProgramProgram Comprehensive analysis of Comprehensive analysis of

creditworthiness of applicantcreditworthiness of applicant Written commitment to lendWritten commitment to lend

Specific amountSpecific amount Specific time periodSpecific time period Limited conditionsLimited conditions

1313

PreapprovalsPreapprovals Report home purchase loans onlyReport home purchase loans only Report originations that began as Report originations that began as

preapproval requestspreapproval requests Report denials of preapproval requestsReport denials of preapproval requests OptionalOptional: report requests that were : report requests that were

approved but not acceptedapproved but not accepted Do not report requests that were Do not report requests that were

withdrawn or incompletewithdrawn or incomplete

1414

PreapprovalsPreapprovals

WHY CAPTURE PREAPPROVALS?WHY CAPTURE PREAPPROVALS? HMDA requires data on “applications”HMDA requires data on “applications” Preapproval as defined = applicationPreapproval as defined = application Use of preapprovals growing since Use of preapprovals growing since

early 1990searly 1990s Reflects change in mortgage marketReflects change in mortgage market

1515

Manufactured HomesManufactured HomesWHAT’S NEW? WHAT’S NEW? Lenders must identify applications for loans Lenders must identify applications for loans

to purchase manufactured homesto purchase manufactured homes Use HUD standard: ready for occupancy at Use HUD standard: ready for occupancy at

factory (can include modular homes)factory (can include modular homes) Make reasonable effortsMake reasonable efforts Report 1- to 4-family when unable to Report 1- to 4-family when unable to

determine through reasonable effortsdetermine through reasonable efforts

1616

Manufactured HomesManufactured Homes

WHY?WHY? Identifying loans involving manufactured Identifying loans involving manufactured

homes will help explain higher denial homes will help explain higher denial rates and pricesrates and prices

1717

RefinancingRefinancing

What’s new? What’s new? New definition for reporting purposesNew definition for reporting purposes

Why?Why? Clearer definition yields more consistent Clearer definition yields more consistent

and reliable dataand reliable data

1818

Refinancing, cont.Refinancing, cont. Current definitionCurrent definition: New loan that satisfies and : New loan that satisfies and

replaces existing loan, if replaces existing loan, if Lender determines purpose of existing loan, Lender determines purpose of existing loan,

oror Lender relies on applicant’s statement about Lender relies on applicant’s statement about

existing loan, orexisting loan, or Existing loan is dwelling secured, orExisting loan is dwelling secured, or New loan will be dwelling securedNew loan will be dwelling secured

1919

Refinancing, cont.Refinancing, cont.

New definition (for New definition (for reportingreporting)) New loan satisfies and replaces New loan satisfies and replaces

existing loan; andexisting loan; and Both existing loan and new loan Both existing loan and new loan

secured by lien on dwellingsecured by lien on dwelling

2020

Refinancing, cont.Refinancing, cont. Coverage test (Coverage test (unchangedunchanged))

The existing obligation is a home purchase The existing obligation is a home purchase loan (as determined by lender or as stated loan (as determined by lender or as stated by applicant)), and by applicant)), and

Both the existing obligation and the new Both the existing obligation and the new obligation are secured by obligation are secured by first liensfirst liens on on dwellings dwellings

Remember to distinguish definition for Remember to distinguish definition for reporting reporting from definition for from definition for coveragecoverage

2121

Refinancing, cont.Refinancing, cont.

NO purpose test NO purpose test MECAs (modification, extension, and MECAs (modification, extension, and

consolidation agreements) continue to consolidation agreements) continue to not be reportednot be reported

2222

Home ImprovementHome Improvement

Current rule:Current rule: report loan if report loan if Any part of proceeds for home Any part of proceeds for home

improvement andimprovement and Lender classifies loan as home Lender classifies loan as home

improvementimprovement For For unsecuredunsecured, continue to use current , continue to use current

rule (purpose plus classification)rule (purpose plus classification)

2323

Home ImprovementHome ImprovementWHAT’S NEW?WHAT’S NEW? New definition for New definition for dwelling-secured dwelling-secured

loansloans Report as home improvement loan if any Report as home improvement loan if any

part of proceeds will be used for home part of proceeds will be used for home improvementimprovement

WHY?WHY? A clearer definition yields better dataA clearer definition yields better data

2424

HELOCsHELOCs

Reporting HELOCs is optional (but be Reporting HELOCs is optional (but be consistent)consistent)

HELOCs may be for home purchase or HELOCs may be for home purchase or home improvementhome improvement

Report only amount of line used for Report only amount of line used for HMDA purposeHMDA purpose

2525

MULTIPLE PURPOSE LOANSMULTIPLE PURPOSE LOANS

What if ??What if ??

• A borrower refinances, uses cash out to A borrower refinances, uses cash out to improve home and buy vacation home?improve home and buy vacation home?

• Report as home purchaseReport as home purchase

• The same borrower uses a HELOC to The same borrower uses a HELOC to achieve her goals?achieve her goals?

• Reporting is optionalReporting is optional

2626

MULTIPLE PURPOSE LOANSMULTIPLE PURPOSE LOANS

Priorities:Priorities: Home purchase trumps home Home purchase trumps home

improvement and refinancingimprovement and refinancing Home improvement trumps refinancingHome improvement trumps refinancing HELOC trumps all--reporting is optionalHELOC trumps all--reporting is optional

2727

ETHNICITY and RACEETHNICITY and RACE

What’s new?What’s new? Applicants will be asked to report race Applicants will be asked to report race

andand ethnicity ethnicity Applicants may report more than one Applicants may report more than one

racerace No “other” category No “other” category

Why?Why? Conform to 1997 OMB guidanceConform to 1997 OMB guidance

2828

Ethnicity and Race - Ethnicity and Race - New CategoriesNew Categories

New CategoriesNew Categories Old CategoriesOld Categories[[]] II ddoo nnoott wwiisshh ttoo ffuurrnniisshhtthhiiss iinnffoorrmmaattiioonnEEtthhnniicciittyy::[[]] HHiissppaanniicc oorr LLaattiinnoo[[]] NNoott HHiissppaanniicc oorr LLaattiinnooRRaaccee::[[]] AAmmeerriiccaann IInnddiiaann oorrAAllaasskkaa NNaattiivvee[[]] AAssiiaann[[]] BBllaacckk oorr AAffrriiccaannAAmmeerriiccaann[[]] NNaattiivvee HHaawwaaiiiiaann oorrOOtthheerr PPaacciiffiicc IIssllaannddeerr[[]] WWhhiittee

[[]] II ddoo nnoott wwiisshh ttoo ffuurrnniisshhtthhiiss iinnffoorrmmaattiioonn

RRaaccee oorr NNaattiioonnaall OOrriiggiinn::[[]]AAmmeerriiccaann IInnddiiaann,,AAllaasskkaann NNaattiivvee[[]] AAssiiaann,, PPaacciiffiicc IIssllaannddeerr[[]] BBllaacckk[[]] HHiissppaanniicc[[]] WWhhiittee[[]] OOtthheerr ((ssppeecciiffyy))________

2929

NATIONAL ORIGIN and NATIONAL ORIGIN and RACERACE

Lenders must request information in Lenders must request information in all all applications (mail, telephone, and applications (mail, telephone, and Internet)Internet)

Lenders may not require applicants to Lenders may not require applicants to provide informationprovide information

If applicant declines to provide If applicant declines to provide information in a face-to-face application, information in a face-to-face application, lenders must identify applicants by visual lenders must identify applicants by visual observation or surnameobservation or surname

3030

NATIONAL ORIGIN and NATIONAL ORIGIN and RACERACE

If applicant declines to provide If applicant declines to provide information (by mail, phone, or Internet), information (by mail, phone, or Internet), do not attempt to identifydo not attempt to identify

Use code 7 (codes 3 & 6 as of January 1, Use code 7 (codes 3 & 6 as of January 1, 2004)2004)

3131

True or False ?True or False ?

Applicant must provide both ethnicity Applicant must provide both ethnicity and and race. race.

If applicant declines to provide data in non-If applicant declines to provide data in non-face-to-face, you must collect at closing. face-to-face, you must collect at closing.

Telephone joint applicants: you must ask co-Telephone joint applicants: you must ask co-applicant. applicant.

FalseFalse

FalseFalse

FalseFalse (Applicant may answer for co-applicant)(Applicant may answer for co-applicant)

3232

ETHNICITY and RACEETHNICITY and RACE

Sources of information (OMB Sources of information (OMB Website Website www.whitehouse.gov/omb/fedreg/directive_15.html)) OMB definitions of race designationsOMB definitions of race designations OMB guidance on using data for civil rights OMB guidance on using data for civil rights

enforcementenforcement OMB guidance on using data for trend OMB guidance on using data for trend

analysisanalysis

3333

OMB GuidanceOMB Guidance American Indian or Alaska NativeAmerican Indian or Alaska Native. . A person A person

having origins in any of the original peoples of North or having origins in any of the original peoples of North or South America (including Central America), and who South America (including Central America), and who maintains tribal affiliation or community attachment.maintains tribal affiliation or community attachment.

AsianAsian.. A person having origins in any of the original A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam. Islands, Thailand, and Vietnam.

3434

OMB GuidanceOMB Guidance

Black or African American. . A person having origins A person having origins in any of the black racial groups of Africa. Terms such as “Haitian” in any of the black racial groups of Africa. Terms such as “Haitian” or “Negro” can be used in addition to “Black or African American.”or “Negro” can be used in addition to “Black or African American.”

Native Hawaiian or Other Pacific Islander. A A person having origins in any of the original peoples of Hawaii, person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands. Guam, Samoa, or other Pacific Islands.

White. A person having origins in any of the original peoples ofA person having origins in any of the original peoples of Europe, the Middle East, or North Africa.

3535

OMB GuidanceOMB Guidance

Hispanic or Latino. A person of A person of Cuban, Mexican, Puerto Rican, South or Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish Central American, or other Spanish culture or origin, regardless of race. The culture or origin, regardless of race. The term “Spanish origin” can be used in term “Spanish origin” can be used in addition to “Hispanic or Latino.” addition to “Hispanic or Latino.”

3636

Rate SpreadRate SpreadWhat’s new?What’s new? Pricing data on mortgage loansPricing data on mortgage loans

Why?Why? Information is critical to Information is critical to Address fair lending concerns related to Address fair lending concerns related to

loan pricing, andloan pricing, and Better understand the mortgage market, Better understand the mortgage market,

especially the subprime marketespecially the subprime market

3737

Rate Spread, cont.Rate Spread, cont.

Report spread between APR and Treasury Report spread between APR and Treasury yield if equals/exceeds thresholdsyield if equals/exceeds thresholds First lien loans First lien loans 3 percentage points3 percentage points Subordinate lien loansSubordinate lien loans 5 percentage points5 percentage points

Thresholds intended to exclude prime loansThresholds intended to exclude prime loans If spread below threshold, use “NA”If spread below threshold, use “NA”

3838

Rate Spread ExamplesRate Spread Examples

APR (10-year first lien mortgage)APR (10-year first lien mortgage) 9.459.45

Yield (10-year Treasury)Yield (10-year Treasury) -5.21-5.21

REPORT REPORT 04.2404.24

3939

Rate Spread ExamplesRate Spread Examples

APR (10 year first lien mortgage)APR (10 year first lien mortgage) 8.00 8.00 Yield (10 year Treasury) Yield (10 year Treasury) -5.21-5.21 Result Result 02.7902.79

REPORT REPORT NANA

4040

Rate Spread Lock DateRate Spread Lock Date

Use date rate was locked for final timeUse date rate was locked for final time AgreementAgreement Float DownFloat Down Last lock before closingLast lock before closing

Use 15Use 15thth-of-month before the date the -of-month before the date the rate was lockedrate was locked

4141

Rate Spread : ExamplesRate Spread : Examples

Rate lock on April 21, 2004Rate lock on April 21, 2004 Use yields on April 15, 2004Use yields on April 15, 2004

Rate lock on April 14, 2004Rate lock on April 14, 2004 Use yields on March 15, 2004Use yields on March 15, 2004

4242

Rate Spread :Rate Spread :Treasury SecuritiesTreasury Securities

To calculate the rate spread, To calculate the rate spread, use Board’s calculator on FFIEC use Board’s calculator on FFIEC websitewebsite

4343

Rate Spread CalculatorRate Spread Calculator http://www.ffiec.gov/ratespread

4444

Rate Spread – Treasury Rate Spread – Treasury YieldsYields http:/www.ffiec.gov/ratespreadhttp:/www.ffiec.gov/ratespread

Lenders must use the Treasury yields stated Lenders must use the Treasury yields stated in the Board’s table, “Treasury Securities of in the Board’s table, “Treasury Securities of Comparable Maturity under Regulation C”.Comparable Maturity under Regulation C”.

To find the yield, identify the relevant date in To find the yield, identify the relevant date in the left-hand column (the 15the left-hand column (the 15 thth of the month of the month before the date the rate was set for the final before the date the rate was set for the final time) and follow the row to the yield time) and follow the row to the yield corresponding to the term of the loan. corresponding to the term of the loan.

4545

Rate SpreadRate Spread

Report “NA” forReport “NA” for purchased loanspurchased loans unsecured home improvement loansunsecured home improvement loans loans not subject to Regulation Zloans not subject to Regulation Z

4646

Rate Spread : Loan TermRate Spread : Loan Term

Use only whole numbers for loan termUse only whole numbers for loan term

ARMs: use loan term, not rate periodARMs: use loan term, not rate period

4747

HOEPA Status :HOEPA Status :APR TriggerAPR Trigger

HOEPA triggers: APR or “points and fees”HOEPA triggers: APR or “points and fees” 1st lien loan, APR at consummation 1st lien loan, APR at consummation

exceeds yield on comparable Treasury by 8 exceeds yield on comparable Treasury by 8 percentage pointspercentage points oror

2nd lien loan, APR at consummation 2nd lien loan, APR at consummation exceeds yield on comparable Treasury by exceeds yield on comparable Treasury by 10 percentage points--OR10 percentage points--OR

4848

HOEPA Status :HOEPA Status :Points and Fees TriggerPoints and Fees Trigger

““Points and fees” triggerPoints and fees” trigger Points and fees exceed greater of 8 percent Points and fees exceed greater of 8 percent

of “loan amount” or $488 (for 2003)of “loan amount” or $488 (for 2003) The dollar figure is adjusted annually by the The dollar figure is adjusted annually by the

Board in November or DecemberBoard in November or December

4949

HOEPA StatusHOEPA Status

Report only for originations and Report only for originations and purchased loanspurchased loans

Report only for loans subject to Report only for loans subject to Regulation ZRegulation Z

RememberRemember: HOEPA does not apply to : HOEPA does not apply to residential mortgage transactions residential mortgage transactions

5050

HOEPA StatusHOEPA Status

How do you check the rate?How do you check the rate? Refer to the H-15 at Refer to the H-15 at

www.federalreserve.gov/releases/h15/updatewww.federalreserve.gov/releases/h15/update

5151

HOEPA StatusHOEPA Status How do you determine which date to use?How do you determine which date to use?

Use the 15Use the 15thth of the month before the month in which of the month before the month in which the application was receivedthe application was received

Examples:Examples:Date of Application Date of Application Date of Treasury SecurityDate of Treasury Security

April 21, 2004April 21, 2004 March15, 2004March15, 2004

April 14, 2004April 14, 2004 March 15, 2004March 15, 2004

April 15, 2004April 15, 2004 March 15, 2004March 15, 2004

5252

Lien StatusLien StatusWHAT’S NEW?WHAT’S NEW? Report as first lien, subordinate lien, or Report as first lien, subordinate lien, or

unsecuredunsecured Report for all loans or applications Report for all loans or applications

(except purchases)(except purchases) Use best information readily available at Use best information readily available at

time of final actiontime of final action

5353

Lien Status, cont.Lien Status, cont.

Why?Why? Information may help explain pricing Information may help explain pricing

discrepancies because interest rates discrepancies because interest rates (and thus APRs) vary according to lien (and thus APRs) vary according to lien statusstatus

5454

Transition RulesTransition RulesWhy?Why? The transition rules … The transition rules … Reduce burden to “look back” Reduce burden to “look back” Apply to applications received in 2003 Apply to applications received in 2003

with final action taken in 2004with final action taken in 2004 Provide flexibility for information captured Provide flexibility for information captured

at applicationat application Require collection of information Require collection of information

captured at final action in 2004captured at final action in 2004

5555

Transition RulesTransition Rules

Requests for preapprovalRequests for preapproval Lenders need not report whether an Lenders need not report whether an

application taken in 2003 involved a request application taken in 2003 involved a request for preapproval for preapproval

Manufactured housingManufactured housing Lenders need not report whether an Lenders need not report whether an

application taken in 2003 involved a application taken in 2003 involved a manufactured homemanufactured home

5656

Transition RulesTransition Rules

Definitions of “home improvement Definitions of “home improvement loan” and “refinancing”loan” and “refinancing”

Lenders may – at their option– apply the Lenders may – at their option– apply the current definitions to applications taken in current definitions to applications taken in 2003 with final action taken in 20042003 with final action taken in 2004

5757

Transition Rules Transition Rules

Lenders will Lenders will notnot be required to report the be required to report the rate spread for loans in which the lock date rate spread for loans in which the lock date occurs before January 1, 2004occurs before January 1, 2004

WHY?WHY? Staff considered using application or Staff considered using application or

consummation date consummation date But rate lock date provides most accurate But rate lock date provides most accurate

informationinformation

5858

No Transition Rules No Transition Rules

If loan closes in 2004, lender must reportIf loan closes in 2004, lender must report HOEPA statusHOEPA status Lien statusLien status Purchaser typePurchaser type

WHY?WHY? Information about these items isInformation about these items is

available at the time of final action – available at the time of final action – in 2004in 2004

5959

CONVERSION RULES:RACE & ETHNICITY Current Current CategoriesCategories

New CategoriesNew Categories

RaceRace

New CategoriesNew Categories

EthnicityEthnicity

Code 1 – American Code 1 – American Indian or Alaskan Native Indian or Alaskan Native

Code 1 – American Code 1 – American Indian or Alaskan NativeIndian or Alaskan Native

Code 4 – Not ApplicableCode 4 – Not Applicable

Code 2 – Asian or Pacific Code 2 – Asian or Pacific Islander Islander

Code 2 -- AsianCode 2 -- Asian Code 4 – Not ApplicableCode 4 – Not Applicable

Code 3 -- BlackCode 3 -- Black Code 3 – Black or African Code 3 – Black or African AmericanAmerican

Code 4 – Not ApplicableCode 4 – Not Applicable

Code 4 -- HispanicCode 4 -- Hispanic Code 7 – Not ApplicableCode 7 – Not Applicable Code 1 – Hispanic or LatinoCode 1 – Hispanic or Latino

Code 5 -- WhiteCode 5 -- White Code 5 -- WhiteCode 5 -- White Code 4 – Not ApplicableCode 4 – Not Applicable

Code 6 -- OtherCode 6 -- Other Code 7 – Not ApplicableCode 7 – Not Applicable Code 4 – Not ApplicableCode 4 – Not Applicable

Code 7 – Mail or Code 7 – Mail or TelephoneTelephone

Code 6 – Mail, Internet, Code 6 – Mail, Internet, or Telephoneor Telephone

Code 3 –Mail, Internet, or Code 3 –Mail, Internet, or TelephoneTelephone

Code 8 – Not ApplicableCode 8 – Not Applicable Code 7 – NACode 7 – NA Code 4 – NACode 4 – NA

6060

CENSUS 2000CENSUS 2000

Lenders must use census tract numbers Lenders must use census tract numbers and corresponding geographic areas and corresponding geographic areas from the from the 2000 Census2000 Census for all applications for all applications and loans recorded on their 2003 LARand loans recorded on their 2003 LAR

6161

CENSUS 2000CENSUS 2000http://www.census.govhttp://www.census.gov

6262

FAQs & ANSWERSFAQs & ANSWERS

Q.Q. If an applicant declines to provide If an applicant declines to provide information about race, ethnicity, or sex information about race, ethnicity, or sex in an application taken entirely by in an application taken entirely by telephone, Internet, or mail, should the telephone, Internet, or mail, should the lender provide the information – for lender provide the information – for example, based on the applicant’s example, based on the applicant’s surname? surname?

6363


A.A. NO.NO. If an applicant declines to provide If an applicant declines to provide the information, the lender must use the the information, the lender must use the code for “information not provided in mail, code for “information not provided in mail, Internet, or telephone application.”Internet, or telephone application.”

6464


Q.Q. If an applicant declines to provide If an applicant declines to provide information about race, ethnicity, or sex information about race, ethnicity, or sex in an application taken entirely by in an application taken entirely by telephone, Internet, or mail, and the telephone, Internet, or mail, and the lender approves the application, may the lender approves the application, may the lender request the information at closing? lender request the information at closing?

6565


A.A. The lender may but need not request The lender may but need not request the information at closing. If the lender the information at closing. If the lender requests the information at closing for requests the information at closing for some applicants, the lender must request some applicants, the lender must request it at closing for all applicants.it at closing for all applicants.

6666


Q.Q. May a lender use the revised race and May a lender use the revised race and ethnicity categories to collect monitoring ethnicity categories to collect monitoring information information beforebefore January 1, 2004? January 1, 2004?

6767


A.A. No.No. Lenders must not use the revised Lenders must not use the revised race and ethnicity categories to collect race and ethnicity categories to collect monitoring information before January 1, monitoring information before January 1, 2004. 2004.

6868


Q.Q. May lenders use the old race and May lenders use the old race and national origin categories on applications national origin categories on applications received after January 1, 2004? received after January 1, 2004?

6969


A.A. No.No. But if a lender provides an But if a lender provides an application form with the old race and application form with the old race and national origin categories to an applicant national origin categories to an applicant prior to January 1, 2004, and the prior to January 1, 2004, and the applicant submits the application on that applicant submits the application on that form in 2004, the lender may consider form in 2004, the lender may consider the application as having been received the application as having been received in 2003 so long as the application is in 2003 so long as the application is dated “2003.” dated “2003.”

7070


Q.Q. May a lender report the rate spread on May a lender report the rate spread on purchased loans? purchased loans?

A. No. A. No. Enter “NA” in the rate spread Enter “NA” in the rate spread column.column.

7171


Q.Q. If a lender chooses to report HELOCs, If a lender chooses to report HELOCs, should the lender report the rate spread? should the lender report the rate spread?

A. No. A. No. Enter “NA” in the rate spread Enter “NA” in the rate spread column.column.

7272


Q.Q. How should a lender report a dwelling-How should a lender report a dwelling-secured loan used to refinance an secured loan used to refinance an existing dwelling-secured loan and to existing dwelling-secured loan and to make home improvements? make home improvements?

7373


A.A. The lender should report the loan as a The lender should report the loan as a home improvement loan, even if it also home improvement loan, even if it also meets the definition of a “refinancing.” meets the definition of a “refinancing.”

7474


Q. Q. When the Board revised the reg and When the Board revised the reg and commentary, the comment on “MECAs” commentary, the comment on “MECAs” (modification, extension, and (modification, extension, and consolidation agreements) was not consolidation agreements) was not retained. Why? retained. Why?

7575


A. A. Dropping the comment was inadvertent. Dropping the comment was inadvertent. The Board’s interpretation remains the The Board’s interpretation remains the same; MECAs are not refinancings under same; MECAs are not refinancings under Regulation C. The comment will be Regulation C. The comment will be restored the next time the commentary is restored the next time the commentary is updated. updated.

7676

SOURCES OF SOURCES OF INFORMATIONINFORMATION

A Guide to HMDA Reporting--Getting it A Guide to HMDA Reporting--Getting it Right! Right! (revised in 2003 and available (revised in 2003 and available online at online at http://www.ffiec.gov/hmda/guide.htm http://www.ffiec.gov/hmda/guide.htm

7777

SOURCES OF SOURCES OF INFORMATIONINFORMATION

FRB Division of Consumer and Community FRB Division of Consumer and Community Affairs, (202) 452-2412 or 3667Affairs, (202) 452-2412 or 3667

Jane Gell, John Wood, Kathleen Ryan, Dan Jane Gell, John Wood, Kathleen Ryan, Dan SokolovSokolov

7878

SOURCES OF INFORMATIONSOURCES OF INFORMATIONhttp://www.stlouisfed.org/hmdaregcamendmentshttp://www.stlouisfed.org/hmdaregcamendments

A new web site to help you A new web site to help you understand understand and implement the latest and implement the latest changes to changes to HMDA reporting.HMDA reporting.

The The HMDA Regulation C AmendmentsHMDA Regulation C Amendments web siteweb site provides timely and relevant information on the provides timely and relevant information on the Regulation C changes.Regulation C changes.

Learn all about these critical changes and their Learn all about these critical changes and their effect on 2004 HMDA reporting. effect on 2004 HMDA reporting.

Documents

2 AGENDA AGENDA HMDA – Background & Purpose HMDA – Background & Purpose The Review – Goals & Process The Review – What’s New and Why Transition Rules