For immediate release

The Federal Reserve Board today published an interim rule that amends its Regulation C (Home Mortgage Disclosure). The amendment increases the asset-size exemption threshold for depository institutions from $10 million to $28 million. The rule is effective as of January 1, 1997. The Board's notice is attached.

FEDERAL RESERVE SYSTEM 12 CFR Part 203 [Regulation C; Docket No. R-0951] Home Mortgage Disclosure AGENCY: Board of Governors of the Federal Reserve System. ACTION: Interim rule. SUMMARY: The Board is publishing an interim rule that amends Regulation C (Home Mortgage Disclosure). The amendment increases the asset-size exemption threshold for depository institutions from $10 million to $28 million. EFFECTIVE DATE: February 1, 1997. This rule applies to all data collection in 1997. FOR FURTHER INFORMATION CONTACT: Manley Williams, Staff Attorney, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for the hearing impaired only, Dorothea Thompson, Telecommunications Device for the Deaf, at (202) 452-3544.

Return to top

SUPPLEMENTARY INFORMATION: Amendments to the Home Mortgage Disclosure Act (HMDA) contained in the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (Pub. L. 104-208, 110 Stat. 3009) increased the asset-size exemption threshold for depository institutions, which in the past were exempt from HMDA if they had assets of $10 million or less. The amendments adjust the $10 million figure based on the percentage by which the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW) for 1996 exceeds the CPIW for 1975--rounded to the nearest million. The new threshold is $28 million. Thus depository institutions with assets of $28 million or less as of December 31, 1996, are exempt from data collection in 1997. In December, the Board published proposed amendments to Regulation C (61 FR 68168, December 27, 1996) to implement the new exemption threshold for depository institutions and other statutory changes. The comment period for those amendments ends February 25, 1997. The Board is publishing an interim rule with respect to the new threshold, which is effective as of January 1, 1997, so that institutions that are no longer covered can avoid collecting data unnecessarily. The Board expects to publish a final rule in March that will also address changes to the threshold in future years. Regulatory Flexibility Analysis This interim rule reduces the burden on small entities by increasing the exemption threshold for depository institutions. A final regulatory flexibility analysis of the final rule will be prepared after consideration of comments received during the comment period. Paperwork Reduction Act Analysis In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board reviewed the interim rule under the authority delegated to the Board by the Office of Management and Budget. No collection of information pursuant to the Paperwork Reduction Act is contained in the interim rule. 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 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 section 203.3, paragraph (a)(1)(ii) is amended by revising the figure $10 million to read as $28 million. 3. Appendix A to Part 203 is amended as follows: a. Paragraph I.A.1. is amended by revising the figure $10 million to read as $28 million; and b. The undesignated paragraph EXAMPLE is amended by revising the figure $10 million to read as $28 million. 4. 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, the second sentence of paragraph 1., General is amended by revising the figure $10 million to read as $28 million. By order of the Board of Governors of the Federal Reserve System, January 16, 1997. (signed) William W. Wiles William W. Wiles Secretary of the Board

Return to top

1997 Banking and consumer regulatory policy