There were certain definitions revised in the regulation including the definition of an application to include a request for preapproval as defined in the regulation, for purposes of reporting denials of such requests; and the definition of a refinancing and home improvement loan.
In addition, the amendments conform the collection of data on race and ethnicity to standards established by the U. OMB in In June , OMB released the list of metropolitan statistical areas and metropolitan divisions, micropolitan statistical areas, and combined statistical areas, based on the application of the standards to data from the Census.
OMB Bulletin No. In December of , the Board published a final rule amending Regulation C and the staff commentary that interprets the requirements of Regulation C. The regulation and staff commentary are amended to conform them to changes in the Standards for OMB. The asset threshold for nondepository institutions for the collection remained unchanged.
Institutions should make their disclosure statements available to the public within three business days of receipt. Furthermore, each reporting institution must maintain a complete copy of its disclosure statement for public use in its home office. In December , the Board published a final rule to amend Regulation C to revise the rules for reporting price information on higher-priced loans.
The rules are being conformed to the definition of "higher-priced mortgage loan'' adopted by the Board under Regulation Z Truth in Lending in July of Since , Regulation C has required lenders to collect and report the spread between the annual percentage rate APR on a loan and the yield on Treasury securities of comparable maturity if the spread is equal to or greater than 3.
Under the final rule, a lender will report the spread between the loan's APR and a survey-based estimate of APRs currently offered on prime mortgage loans of a comparable type if the spread is equal to or greater than 1.
The final rule is effective October 1, Compliance is mandatory for loan applications taken on and after that date and for loans that close on and after January 1, regardless of their application dates.
It is the most secure and more efficient than the Internet e-mail submission option or preparing and mailing a diskette or CD-ROM. The Submission via Web option is now the preferred option an institution should choose when exporting HMDA data; it offers a single step submission process which provides confirmation that the HMDA file was received successfully at the Federal Reserve Board.
As a consequence of changes to the loan price rate spread reporting rules made under Regulation C in , the HMDA data reflect price information reported under two different methodologies. The changes to the disclosure statements and reports were made to help ensure the accuracy of the information provided to the public. The changes only affected tables that included loan pricing information. In addition, the raw data made available to the public by the FFIEC contained pricing information for all loans and included a field that indicated whether or not the application for the loan was taken prior to October 1, Effective January 1, , did the credit union originate at least closed-end mortgage loans in each of the two preceding calendar years, or originate at least open-end lines of credit in each of the two preceding calendar years?
Stop here. Note: If all of the answers to questions 1, 2, 3, and 4 are "Yes," the credit union is subject to HMDA in the current year and the remainder of the checklist should be completed unless exempt by virtue of similar state law.
In that situation, data collection should begin on January 1 of the following calendar year. If a reporting institution merged with a non-reporting institution, and the non-reporting institution is the surviving institution, or a new institution is formed, for the year of the merger, data collection is required for the reporting institution for transactions that occurred prior to the merger; data collection is optional for transactions that occurred after the merger date.
If both institutions were HMDA reporters, data collection is required for the entire year of the merger. The merged institution may file either a consolidated submission or separate submissions.
Print Feedback opens new window. The purpose of Regulation C is to provide the public with data that can be used to: Help determine whether credit unions are serving the housing needs of their communities; Assist public officials in distributing public-sector investments so as to attract private investment to areas where it is needed; and Assist in identifying possible discriminatory lending patterns and enforcing compliance with anti-discrimination statutes.
Regulation C is not intended to encourage unsound lending practices or the allocation of credit. Examination Procedures Initial Procedures A. Asset-Size Threshold Test. Location Test. Determine whether, on the preceding December 31, the credit union had a home or branch office located in an MSA.
Loan Activity Test. Determine whether the credit union originated at least one home purchase loan or refinancing of a home purchase loan secured by a first lien on a one-to-four-unit dwelling during the preceding calendar year.
Federally Related Test. Loan-Volume Threshold Test. Effective January 1, , and through June 30, , determine whether the credit union originated at least 25 closed-end mortgage loans in each of the two preceding calendar years, or originated at least open-end lines of credit in each of the two preceding calendar years.
Effective July 1, , and through December 31, , determine whether the credit union originated at least closed-end mortgage loans in each of the two preceding calendar years, or originated at least open-end lines of credit in each of the two preceding calendar years. Effective January 1, , determine whether the credit union originated at least closed-end mortgage loans in each of the two preceding calendar years, or originated at least open-end lines of credit in each of the two preceding calendar years.
The list of excluded transactions and definitions for closed-end mortgage loans and open-end lines of credit are described below in the Transactional Coverage section of these procedures. Covered Loan. A covered loan is a closed-end mortgage loan or an open-end line of credit that is not a transaction specifically excluded from the reporting requirements of the regulation. Note: Further, a covered loan secured by five or more separate dwellings, which are not multifamily dwellings, in more than one location is not a loan secured by a multifamily dwelling.
For example, assume a landlord uses a covered loan to improve five or more dwellings, each with one individual dwelling unit, located in different parts of a town, and the loan is secured by those properties. The covered loan is not secured by a multifamily dwelling as defined by Likewise, a covered loan secured by five or more separate dwellings that are located within a multifamily dwelling, but which is not secured by the entire multifamily dwelling e.
For example, assume that an investor purchases 10 individual unit condominiums in a unit condominium complex using a covered loan. Comment 2 n -3 opens new window. Excluded Transactions. Closed-End Mortgage Loans. Determine whether the credit union originated fewer than closed-end mortgage loans in each of the two preceding calendar years thereby qualifying for a partial exemption for closed-end mortgage loans; and Open-End Lines of Credit.
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Regulation C Regulation C is a regulation that orders depository institutions to annually disclose loan data about the communities they serve.
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