Is anyone else so swamped with getting their HMDA and CRA registers filed that they haven't had and won't have time to really study the HMDA/Reg C and HOEPA/Reg Z proposals? I keep hearing that these will affect my bank and that I need to analyze them and file a comment letter. But my first duty is to ensure my HMDA and CRA filings are complete, accurate, on time. At a small bank, everything rests on one person. Is it possible that the Federal Reserve would extend the comment deadlines? How do we get that done?

Extensions are not likely at this point, but you do have better than a week after HMDA and CRA are sent in. I am in the same boat.

Also, if you miss the deadline, I'd still send in my comments. I have heard that will generally not impose any "throw these away if they are late" rules.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

I will be working on my comment letter this weekend. I would be happy to share my comments with anyone who is interested.

You can e-mail me at mizrahib@partnershipbanking.com

Two areas that I wish to point out are:

1. The invasion of privacy for borrowers that the new HMDA proposal represents.

2. The increasing cost and compliance burden for both HMDA and HOEPA have driven many main stream lenders out of the market. This leaves the market more vulnerable to Predatory Lenders who don't obey the rules and have almost no one reviewing their transactions. (Case in point is my fruitless search for an FHA Title 1 loan for myself!)

And as a further comment on HMDA, I think that the Income reporting should be changed to codes much like CRA Revenue Codes.

I think the Income levels should be broken down into 3 strata - an example would be Code 1 = 0 to 49 thousand; Code 2 = 50 to 99 thousand, and Code 3 = 100 thousand and above.

IMHO, this would do two things: 1) protect the income information of individual borrowers while still giving a broad picture of Low, Middle and Upper incomes; and 2) Lesson the risk for criticism when an examiner re-underwrites a file and determines that you should have reported 112 thousand in income instead of 111.

A further comment on HOEPA, we don't need NEW laws, we need better, and more even, enforcement of existing laws. Many predatory lenders would only be examined by state agencies. What if the banking agencies offer to provide exam teams (with the cost compensated by the state) to review lenders that don't come under a Bank exam? What if individual county or state D.A.'s office require to be notified of all foreclosures on 1-4 family dwellings? The D.A. could send a notice to the owner asking if they would like a local legal help clinic to review their loan for any predatory or illegal terms?

FYI a request has been made to the Fed by the ABA, CBA, MBA, ACB, and ICBA for an extension. I don't know how long it will take to decide nor how long they'll give us if approved, but they are trying.

[Now maybe I can help my son with that science project. : ) ]

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

The FRB will read and consider late letters as long as the letters arrive in time for consideration without setting their schedule back. If you are swamped with the LAR deadlines, a good strategy would be to send in a short comment letter in which you raise several of your biggest concerns -- and also ask for an extension. Then work on a more detailed letter and get it in late. Late is better than never.

The latest word from those comment gurus at the ABA is that while this extension request on C and Z will not be approved, comments received by the month's end will be considered.

I don't believe this is far from what is generally done as they truly do want our comments.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.