[Federal Register Volume 72, Number 244 (Thursday, December 20, 2007)]
[Rules and Regulations]
[Pages 72234-72235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-24612]


=======================================================================
-----------------------------------------------------------------------

FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-1303]


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; staff commentary.

-----------------------------------------------------------------------

SUMMARY: The Board is publishing a final rule amending the staff 
commentary that interprets the requirements of Regulation C (Home 
Mortgage Disclosure). The staff commentary is amended to increase the 
asset-size exemption threshold for depository institutions based on the 
annual percentage change in the Consumer Price Index for Urban Wage 
Earners and Clerical Workers. The adjustment from $36 million to $37 
million reflects the increase of that index by 2.70% percent during the 
twelve-month period ending in November 2007. Thus, depository 
institutions with assets of $37 million or less as of December 31, 
2007, are exempt from collecting data in 2008.

DATES: Effective January 1, 2008.

FOR FURTHER INFORMATION CONTACT: Dan S. Sokolov or John C. Wood, 
Counsels, Division of Consumer and Community Affairs, at (202) 452-
3667; for users of Telecommunications Device for the Deaf (TDD) only, 
contact (202) 263-4869.

SUPPLEMENTARY INFORMATION: The Home Mortgage Disclosure Act (HMDA; 12 
U.S.C. 2801 et seq.) requires most mortgage lenders located in 
metropolitan areas to collect data about their housing-related lending 
activity. Annually, lenders must report that data to their federal 
supervisory agencies and make the data available to the public. The 
Board's Regulation C (12 CFR part 203) implements HMDA.
    Prior to 1997, HMDA exempted depository institutions with assets 
totaling $10 million or less, as of the preceding year-end. Provisions 
of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 
(codified at 12 U.S.C. 2808(b)) amended HMDA to expand the exemption 
for small depository institutions. The statutory amendment increased 
the asset-size exemption threshold by requiring a one-time adjustment 
of the $10 million figure based on the percentage by which the Consumer 
Price Index for Urban Wage Earners and Clerical Workers (CPIW) for 1996 
exceeded the CPIW for 1975, and provided for annual adjustments 
thereafter based on the annual percentage increase in the CPIW. The 
one-time adjustment increased the exemption threshold to $28 million 
for 1997 data collection.
    Section 203.2(e)(1)(i) of Regulation C provides that the Board will 
adjust the threshold based on the year-to-year change in the average of 
the CPIW, not seasonally adjusted, for each twelve-month period ending 
in November, rounded to the nearest million. Pursuant to this section, 
the Board has adjusted the threshold annually, as appropriate.
    For 2007, the threshold was $36 million. During the twelve-month 
period ending in November 2007, the CPIW increased by 2.70% percent. As 
a result, the exemption threshold is raised to $37 million. Thus, 
depository institutions with assets of $37 million or less as of 
December 31, 2007, are exempt from collecting data in 2008. An 
institution's exemption from collecting data in 2008 does not affect 
its responsibility to report data it was required to collect in 2007.

Final Rule

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Board finds that notice and 
public comment are unnecessary. 5 U.S.C. 553(b)(B). The amendment in 
this notice is technical. Comment 2(e)-2 to section 203.2 of the 
regulation is amended to implement the increase in the exemption 
threshold. This amendment merely applies the formula established by 
Regulation C for determining adjustments to the exemption threshold. 
For these reasons, the Board has determined that publishing a notice of 
proposed rulemaking and providing opportunity

[[Page 72235]]

for public comment are unnecessary. Therefore, the amendment is adopted 
in final form.

List of Subjects in 12 CFR Part 203

    Banks, Banking, Federal Reserve System, Mortgages, Reporting and 
recordkeeping requirements.

0
For the reasons set forth in the preamble, the Board amends 12 CFR part 
203 as follows:

PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)

0
1. The authority citation for part 203 continues to read as follows:

    Authority: 12 U.S.C. 2801-2810.


0
2. In Supplement I to part 203, under section 203.2 Definitions, 2(e) 
Financial Institution, paragraph 2. is revised.

Supplement I to Part 203--Staff Commentary

* * * * *

    Section 203.2--Definitions
    2(e) Financial Institution
* * * * *
    2. Adjustment of exemption threshold for depository 
institutions. For data collection in 2008, the asset-size exemption 
threshold is $37 million. Depository institutions with assets at or 
below $37 million as of December 31, 2007 are exempt from collecting 
data for 2008.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of the Division of Consumer and 
Community Affairs under delegated authority, December 14, 2007.
Jennifer J. Johnson,
Secretary of the Board.
 [FR Doc. E7-24612 Filed 12-19-07; 8:45 am]
BILLING CODE 6210-01-P