Proposed Amendment of Regulation C (Home Mortgage Disclosure Act)
March 4, 2003
Circular No. 11502

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a press release, the Federal Reserve Board announced amendments to the official staff commentary that applies and interprets the requirements of Regulation C (Home Mortgage Disclosure Act).

In 2002, the Board substantially revised Regulation C, effective January 1, 2004. The revisions require lenders to report new data items, including information about loan pricing. The proposed transition rules provide guidance on collecting and reporting this information for applications received before January 1, 2004, upon which final action is taken on or after January 1, 2004. More specifically, the transition rules provide that:

  • Lenders would not have to identify applications or loans involving manufactured homes or requests for preapproval.
  • Lenders could, at their option, continue to apply the current definitions of a home improvement loan and a refinancing.
  • Lenders would report applicant information on ethnicity and race in accordance with the conversion guidance set forth in the proposed comment.

Comments are requested by April 8, 2003. The Board will issue final guidance, after taking into account comments received, soon after the close of the comment period.

The Board's proposed rule is attached.

Questions on this matter may be directed at this Bank to Maryann Campbell, Senior Bank Examiner, Legal and Compliance Risk Department.