To: All Member Banks and Others Concerned in the Third Federal Reserve District

Attention: Chief Executive Officers and Compliance Officers



On February 7, 2002, the Federal Reserve Board published revisions to its Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The Board approved the revisions at its meeting on January 23, 2002. The final rule:

  • Requires lenders to report the spread between the annual percentage rate (APR) and the yield on the comparable Treasury security for originated loans with APRs that exceed the yield on the security by a certain threshold.
  • Requires lenders to identify loans subject to the Home Ownership and Equity Protection Act (HOEPA).
  • Allows applicants to record more than one race.
  • Requires lenders to report denials of applications for credit received through certain preapproval programs and identify originated loans initiated through preapproval programs.
  • Expands the coverage of nondepository lenders by adding a dollar-volume threshold of $25 million to the current loan-percentage test.
  • Modifies the definitions of "refinancing" and "home-improvement loan" to generate more consistent, accurate, and useful data.
  • Requires lenders to report whether the loan involves a manufactured home.

Effective Date: This rule is effective on January 1, 2003. Compliance is mandatory for collection of data that begins on January 1, 2003, which is to be submitted to supervisory agencies no later than March 1, 2004.

Additional Information: A copy of the final rule and staff interpretation are attached (156 KB, 74 pages). For additional information, contact the Regulations Assistance Unit at this Reserve Bank at (215) 574-6568 or John C. Wood, Counsel, Kathleen C. Ryan, Senior Attorney, or Dan S. Sokolov, Attorney, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C., at (202) 452-3667 or 452-2412.

Attachment: View the attachment (12 KB, 1 page).