Another FRB Proposal!
Like Truth in Lending, the rules on HMDA never seem to stay put for more than a year. Keeping up the tradition of annual changes, the Federal Reserve Board has proposed changes to Regulation C. The proposal would implement the provisions in the Economic Growth and Regulatory Paperwork Reduction Act of 1996 ("EGRPRA") that increase the exemption based on asset size. Under the new formula, institutions with $28 million or less in assets would be exempt from HMDA reporting.
The other principal change would be to the regulation's disclosure requirements. The EGRPRA also simplifies branch disclosure requirements to provide that an institution does not to make HMDA information available in a designated each branch for each MSA if the institution posts a notice and makes the information available upon a written request sent to the home office.
The proposal would also require an institution to respond to public disclosure requests by providing HMDA information on paper unless the person requesting the data agrees to receive the data in electronic format.
Finally, the proposal makes minor revisions to the loan application register dealing with the cover sheet and the OMB control number. Comments are due by February 25, 1997.
Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 20, 12/96
First published on 12/01/1996