REGULATION C: REQUEST FOR COMMENT ON PROPOSED REVISIONS.The Federal Reserve Board on November November: see month. 29, 2000, requested comment on proposed revisions to its Regulation C, which implements the Home Mortgage Disclosure Act (HMDA HMDA Hexamethylene Diamine (chemistry) HMDA Hitchhiker Motorized Door Assembly HMDA High Mobility DGM Assemblage HMDA Home Mortgage Disclosure Act of 1974 ). Comments are due by March 9, 2001. HMDA requires depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. and certain for-profit nondepository institutions to collect, report, and disclose data about applications for, and originations and purchases of, home mortgage and home-improvement loans. Data reported include the type, purpose, and amount of the loan; the race or national origin, gender, and income of the loan applicant; and the location of the property. The purposes of HMDA include helping determine whether financial institutions are serving the housing needs of their communities and assisting in fair lending enforcement. The Board's proposal incorporates suggestions received in response to the Advance Notice of Proposed Rulemaking A notice of proposed rulemaking or NPRM is issued by law when a regulatory agency of the United States Federal Government wishes to add, remove, or change a rule (or regulation) as part of the rulemaking process. Outside the USA. published in 1998, as well as suggestions from discussions with a wide range of interested parties, including industry and consumer representatives and officials of financial regulatory and fair lending enforcement agencies. Other suggestions were presented at hearings held in Charlotte, Boston, Chicago, and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden last summer on possible changes in the enforcement of the Home Ownership and Equity Protection Act (HOEPA HOEPA Home Ownership and Equity Protection Act ). In evaluating potential changes to the HMDA reporting requirements, the Board considered whether the changes would improve the quality and utility of the resulting data. The Board took into account changes in the home mortgage market, including growth in areas such as home equity lines of credit and subprime lending  This article or section may deal primarily with the U.S. and may not present a worldwide view. . The objective of the proposed changes is to enhance the public's and agencies' understanding of the home mortgage market generally, and the subprime market in particular, as well as to further fair lending analysis. At the same time, the Board has attempted to minimize the increase in the data collection and reporting burden by limiting proposed changes to those likely to have significant benefit. The proposed changes to Regulation C include the following: * Expand coverage of nondepository lenders by adding a dollar-volume threshold of $50 million to the current loan-percentage test * Simplify the definitions of "refinancing Refinancing An extension and/or increase in amount of existing debt. " and "home-improvement loan" to generate more consistent and accurate data * Require lenders to report home equity lines of credit (such reporting is now optional) * Require lenders to report certain applications for credit received through preapproval programs * Require lenders to report the annual percentage rate of the loan, whether the loan is subject to HOEPA, and whether the loan involves a manufactured home. The Board also proposed a number of clarifications and technical changes, in addition to reorganizing Regulation C to make it easier to use. |
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