[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR203.3]

[Page 77-78]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)--Table of Contents
 
Sec. 203.3  Exempt institutions.

    (a) Exemption based on location, asset size, or number of home 
purchase loans. (1) A bank, savings association, or credit union is 
exempt from the requirements of this part for a given calendar year if 
on the preceding December 31:
    (i) The institution had neither a home office nor a branch office in 
an MSA; or
    (ii) The institution's total assets were at or below the asset 
threshold established by the Board. The asset threshold was adjusted 
from $10 million to $28 million as of December 31, 1996. For subsequent 
years, the Board will adjust the threshold based on the year-to-year 
change in the average of the Consumer Price Index for Urban Wage Earners 
and Clerical Workers, not seasonally adjusted, for each twelve-month 
period ending in November, with rounding to the nearest million. The 
Board will publish any adjustment to the asset figure in December in the 
staff commentary.
    (2) A for-profit mortgage lending institution (other than a bank, 
savings association, or credit union) is exempt from the requirements of 
this part for a given calendar year if:
    (i) The institution had neither a home office nor a branch office in 
an MSA on the preceding December 31; or
    (ii) The institution's total assets combined with those of any 
parent corporation were $10 million or less on the preceding December 
31, and the institution originated fewer than 100 home purchase loans 
(including refinancings of home purchase loans) in the preceding 
calendar year.
    (b) Exemption based on state law. (1) A state-chartered or state-
licensed financial institution is exempt from the requirements of this 
regulation if the Board determines that the institution is subject to a 
state disclosure law that contains requirements substantially similar to 
those imposed by this regulation and contains adequate provisions for 
enforcement.
    (2) Any state, state-chartered or state-licensed financial 
institution, or association of such institutions may apply to the Board 
for an exemption under this paragraph.
    (3) An institution that is exempt under this paragraph shall submit 
the data required by the state disclosure law to its state supervisory 
agency for purposes of aggregation.
    (c) Loss of exemption. (1) An institution losing an exemption that 
was based on the criteria set forth in paragraph (a) of this section 
shall comply with this part beginning with the calendar year following 
the year in which it lost its exemption.
    (2) An institution losing an exemption that was based on state law 
under paragraph (b) of this section shall comply with this regulation 
beginning with

[[Page 78]]

the calendar year following the year for which it last reported loan 
data under the state disclosure law.

[Reg. C, 54 FR 51362, Dec. 15, 1989, as amended at 57 FR 56965, Dec. 2, 
1992; 62 FR 28623, May 27, 1997; 63 FR 52142, Sept. 30, 1998]