The Federal Reserve Board published revisions to Regulation C, which implements the Home Mortgage Disclosure Act, on June 21, 2002. As a result of some industry commenters' concerns about the proposed changes, the Board delayed the effective date of some aspects of the final rule to January 1, 2004.
These revisions to Regulation C:
Compliance with the amendments relating to thresholds and lien status is mandatory on January 1, 2004. The amendment requiring lenders to ask telephone applicants for monitoring information is effective for applications taken on and after January 1, 2003.
In addition, effective January 1, 2003 financial institutions are required to use 2000 census data for all HMDA reportable loans. Given the many changes that have occurred since the 1990 census, the use of 2000 census tracts and demographics will produce more accurate and useful data in the HMDA disclosure statements and aggregate reports.
The Federal Reserve Bank of Philadelphia will be conducting training on the changes to HMDA as part of its outreach program for 2003. In the interim, if you have any questions about these amendments and the effective dates, please contact Connie Wallgren, Consumer Compliance/CRA Examinations Unit Manager at (215) 574-6217.
The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.