The 2001 Census has changed many of the census tracts in our lending area. With regards to HMDA, will we have to redo all the census tracts already on our LAR for this year? If not, when would we begin to use the new census tract information?

The new census tract information has not been released for use yet, that I'm aware of. The way it worked with the 1990 census was that information collection using the new census tract numbers didn't begin until the following Jan 1 after the numbers were released. There will be some publication in the Federal Register when the new numbers are officially to be used. I suspect there will be a few discussions on this and other compliance boards when that happens, so stay tuned.

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Jim Bedsole, CRCM, CBA, CFSA

Opinions expressed are my own, and do not necessarily reflect those of my employer.

As I recall, the 1990 census tracts and use of the 1990 demographic data were implemented effective January, 1992. And as I also recall, the data was released very late in 1991 and it was a real scramble for the first few months of that year. Maybe more widespread use of the internet will make things easier this time around.

Oh, the fun things we have to look forward to...

My memory is fading on me. I want to say that Delores Smith from the Fed mentioned this at the ABA Conference and said that the earliest it would be used in reporting was 2003. But I didn't get that tape and didn't take the notes. Anyone?

In any case, I don't believe the regulators will want piecemeal changes. Nationwide that could be extremely difficult to keep up with and it also may depend on the changes software vendors can implement. Perhaps it could be adopted by the regulators state by state, but that remains to be seen.

As of now, I haven't seen anything indicating that we would use the 2000 census for reporting under CRA or HMDA. Using new designations could clog up the works so to speak, if everyone isn't on the same sheet of music. Though I would also have to say that technically, using them would be correct if they are officially released. BB says "Geography means a census tract or a block numbering area delineated by the United States Bureau of the Census in the most recent decennial census.

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

The new 2000 census tract boundaries and numbers have been released, however non of the census data needed for CRA/HMDA reporting has.

In making assessment area maps, we see that there are changes in tract boundaries, but primarily its the tract numbers that have the biggest change. High growth areas like Las Vegas have major changes, while tract boundaries in most of the rural areas I have looked at are not changing at all.

The conversion to 2000 tracts will depened on when the census bureau makes the necessary 2000 census data needed for CRA/HMDA purposes available. There is some speculation that it may be available in the fall, but even so its such a short conversion time that I suspect regulators will not require its use until 2003.

In any event 1990 data will diffinately be used to complete the 2001 year.

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Thanks for your input. I received conflicting information from several sources, so I contacted the Kansas City FDIC. They contacted Washington for the answer. For 2001 continue to use the old census tracts, for 2002 HMDA use the new census tracts.

Our local MSA is being expanded and will now include our bank - making us a HMDA reporter for the first time. I assume that our first reporting year will conincide with the year banks are instructed to begin reporting under the redrawn census tracts discussed in the posts above. Would everyone agree?

I remember from my examining days that the FRB in Kansas City would distributed changes to MSAs and CTs annually. It was very helpful. Unfortunately, I don't believe they do that anymore.

Trent, that sounds logical, which is why I'd verify it with the Fed or your regulator.

The year they initiate use of the new tracts, you would begin collecting information. You would then actually report it the following year.

I suppose the other option is to move the bank back out of the redrawn MSA, though I doubt the bank would accomodate your needs in that.

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

Are there Web sources for info on new tracts? Surfed through the OMB yesterday, and saw nada, bupkes, zilch.

John go to the census bureaus American Factfinder at factfinder.census.gov/servlet/AdvancedGeoSearchMapFrameServlet

Keep clicking on the map to get down to the census tract lecvel. The 2000 boundries are shown.

Or e-mail me and I will send you a map of the 1990 vs 2000 tract boundries for your area.

Rehashing an old thread, I received a letter today from the FFIEC stating, "For CRA and HMDA data reporting and analysis purposes, continue to use the 1990 Census tract and demographic information for 2001 and 2002 calendar year data. We anticipate that we will use the US Census Bureau's 2000 census data for the calendar year 2003 CRA and HMDA data."

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

Yes, Andy you are right. The FFIEC has a memo posted on their sight dated October 3, 2001 stating just what you said.

Pat Field

We utilize CRA WIZ that is a program produced through PCI Services. I believe a majority of the regulators also use CRA WIZ to produce their CRA and fair lending analyses. I inquired as to when the new Census figures would be updated in the software system. PCI stated that the Census will not be releasing the data (which contains income numbers) until June-September 2002. PCI then needs to scrub the numbers and stated that data will not be available until year 2003. Since the regulators also use this same data, they won't have access until it at that time either. We also have appraisers using updated 2000 census tract data. This would present a problem if we are still utilizing 1990 Census data and informed the lending departments to continue to use 1990 Census tracts until we officially begin utilizing 2000 Census data.

CRA Wiz as well as most companies using geocoders including the FFIEC, use data provided by a company called Geographic Data Technology (GDT). This company is probably the primary source of current data used in geocoding products in the U.S.

GDT notified its users that beginning Jan 1, 2001 that they will only provide geocoding using 2000 data.

I started a dialogue with them in July indicating this will be a problem for government required CRA and HMDA purposes. I won't go into the details and politics of the problem in this forum, but one of their comments for doing this, was they did not get any feedback from banking clients that it would be a problem.

I forwarded them a copy of the recent FFIEC memo and was told they would take it under consideration, but still no feedback from bank clients.

Would some of you please indicate that it is a problem to the banking industry, by sending them an e-mail at support@gdt1.com
You may not think you will be effected by this but I assure you it eventually will.

Tele Atlas, formerly Etak, has indicated they would provide both 1990 and 2000 geocoding information

I just received a response from the FFIEC Geocoding site that the geocoder will be using the 1990 Census tract and demographic information for 2001 and 2002 calendar year CRA and HMDA data. GDT will be providing 1990 census tract and demographic information. They anticipate that they will use the U.S. Census Bureau's 2000 census data for calendar year 2003 CRA and HMDA data.

Recently I read something that said we should not start using the revised Census numbers yet. I also read something about changes to MSAs in the CRA/HMDA Reporter. It said the OMB updates the MSA definitions at the end of June each year. They do not want us to use the updates until the following year since we have already collected 6-months of data and should not have to incur the burden in revising the data collected previously. The FFIEC website has great information.

We are opening a new bank (seperate charter not a branch) and I ordered census maps for that area. I received the new tracts which I think are different from the old ones.
Question: Can I set up our CRA Public File using these new 2000 tracts? We will not have to report CRA or HMDA at this time.

I would say, based on the FFIEC letter, that the old materials should be used. The maps came from the Census Bureau, not your regulator. When they evaluate you, they'll be using the 1990 information.

You run dual reporting if you wanted, but that would seem to be creating work to me.

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