Home Mortgage Disclosure (Regulation C) Data Points and Coverage, 20049-20053 [2019-08979]
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Federal Register / Vol. 84, No. 89 / Wednesday, May 8, 2019 / Proposed Rules
Ms.
Jennifer Tiedeman, U.S. Department of
Energy, Office of the General Counsel,
GC–33, 1000 Independence Avenue SW,
Washington, DC 20585–0121.
Telephone: (202) 287–6111. Email:
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Steven Chalk,
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Efficiency, Energy Efficiency and Renewable
Energy.
[FR Doc. 2019–09437 Filed 5–7–19; 8:45 am]
BILLING CODE 6450–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1003
[Docket No. CFPB–2019–0020]
RIN 3170–AA97
Home Mortgage Disclosure
(Regulation C) Data Points and
Coverage
Bureau of Consumer Financial
Protection.
ACTION: Advance notice of proposed
rulemaking.
AGENCY:
The Bureau of Consumer
Financial Protection (Bureau) is issuing
this Advance Notice of Proposed
Rulemaking (ANPR) to solicit comments
relating to whether to make changes to
the data points that the Bureau’s
October 2015 final rule implementing
the Home Mortgage Disclosure Act
(HMDA) added to Regulation C or
revised to require additional
information. Additionally, the Bureau is
issuing this ANPR to solicit comments
relating to the requirement that
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SUMMARY:
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institutions report certain business- or
commercial-purpose transactions under
Regulation C.
DATES: Comments must be received by
July 8, 2019.
ADDRESSES: You may submit responsive
information and other comments,
identified by Docket No. CFPB–2019–
0020, by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email: 2019-ANPR-HMDA@
cfpb.gov. Include Docket No. CFPB–
2019–0020 in the subject line of the
message.
• Mail: Comment Intake, Bureau of
Consumer Financial Protection, 1700 G
Street NW, Washington, DC 20552.
• Hand Delivery/Courier: Comment
Intake, Bureau of Consumer Financial
Protection, 1700 G Street NW,
Washington, DC 20552.
Instructions: When responding to a
particular question, please note the
question number at the top of the
response.
You are not required to answer all
questions to receive consideration of
your comments. The Bureau encourages
the early submission of comments. All
submissions must include the document
title and docket number.
Because paper mail in the
Washington, DC area and at the Bureau
is subject to delay, commenters are
encouraged to submit comments
electronically. In general, all comments
received will be posted without change
to https://www.regulations.gov. In
addition, comments will be available for
public inspection and copying at 1700
G Street NW, Washington, DC 20552, on
official business days between the hours
of 10:00 a.m. and 5:00 p.m. eastern
daylight time. You can make an
appointment to inspect the documents
by telephoning 202–435–7275.
All submissions, including
attachments and other supporting
materials, will become part of the public
record and subject to public disclosure.
Sensitive personal information, such as
account numbers or Social Security
numbers, or names of other individuals,
should not be included. Submissions
will not be edited to remove any
identifying or contact information.
The Bureau invites comment on all
aspects of the ANPR from all interested
parties. In the event that a respondent
may have concerns about revealing
proprietary or personal information, the
Bureau welcomes comments from
attorneys, consumer advocacy
organizations, trade associations, or
other representatives that do not
identify their clients.
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20049
FOR FURTHER INFORMATION CONTACT:
Jaydee DiGiovanni or Shaakira GoldRamirez, Counsels; or Amanda Quester
or Alexandra Reimelt, Senior Counsels,
Office of Regulations, at 202–435–7700
or https://
reginquiries.consumerfinance.gov. If
you require this document in an
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
The
Bureau is issuing this ANPR to solicit
information relating to whether to make
changes to the data points that the
Bureau’s October 2015 final rule
implementing HMDA (2015 HMDA
Rule) added to Regulation C or revised
to require additional information. The
Bureau also seeks comments relating to
the requirement that institutions report
certain business- or commercial-purpose
transactions under Regulation C.
SUPPLEMENTARY INFORMATION:
I. Background
A. HMDA and Regulation C
HMDA requires certain depository
institutions and for-profit nondepository
institutions to collect, record, and report
data about originations and purchases of
mortgage loans, as well as mortgage loan
applications that do not result in
originations (for example, applications
that are denied or withdrawn).1 By its
statutory terms, HMDA defines
‘‘mortgage loan’’ as (1) ‘‘a loan which is
secured by residential real property,’’ or
(2) a ‘‘home improvement loan.’’ 2 The
purposes of HMDA are to provide the
public with loan data that can be used:
(i) To help determine whether financial
institutions are serving the housing
needs of their communities; (ii) to assist
public officials in distributing publicsector investment so as to attract private
investment to areas where it is needed;
and (iii) to assist in identifying possible
discriminatory lending patterns and
enforcing antidiscrimination statutes.3
Prior to the enactment of the DoddFrank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act),
Regulation C required reporting of 22
data points and allowed for optional
reporting of reasons an institution
denied an application.4
1 To simplify review of this document, the Bureau
generally refers herein to the obligation to report
data instead of listing all of these obligations in
each instance.
2 12 U.S.C. 2802(a)(2).
3 12 CFR 1003.1.
4 As used in this document, the term ‘‘data point’’
refers to items of information that entities are
required to compile and report, generally listed in
separate paragraphs in Regulation C. Some data
points are reported using multiple data fields.
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B. Dodd-Frank Act
In 2010, Congress enacted the DoddFrank Act, which amended HMDA and
transferred HMDA rulemaking authority
and other functions from the Board of
Governors of the Federal Reserve
System (Board) to the Bureau.5 Among
other changes, the Dodd-Frank Act
expanded the scope of information
relating to mortgage applications and
loans that institutions must compile,
maintain, and report under HMDA.
Specifically, the Dodd-Frank Act
amended HMDA section 304(b)(4) by
adding one new data point, the age of
loan applicants and mortgagors. The
Dodd-Frank Act also added new HMDA
section 304(b)(5) and (6), which requires
the following additional new data
points: Information relating to the total
points and fees payable at origination
(total loan costs or total points and fees);
the difference between the annual
percentage rate (APR) associated with
the loan and a benchmark rate or rates
for all loans (rate spread); the term of
any prepayment penalty; the value of
real property to be pledged as collateral;
the term of the loan and of any
introductory interest rate on the loan;
the presence of contract terms allowing
non-amortizing payments; the channel
through which the application was
made; and the credit scores of
applicants and mortgagors.6 New
HMDA section 304(b)(6) in addition
authorizes the Bureau to require, ‘‘as [it]
may determine to be appropriate,’’ a
unique identifier that identifies the loan
originator, a universal loan identifier
(ULI), and the parcel number that
corresponds to the real property pledged
as collateral for the mortgage loan.7 New
HMDA section 304(b)(5)(D) and (6)(J)
further provides the Bureau with the
authority to mandate reporting of ‘‘such
other information as the Bureau may
require.’’ 8
C. 2015 HMDA Rule, 2017 HMDA Rule,
December 2017 Statement, and
EGRRCPA
In October 2015, the Bureau issued
the 2015 HMDA Rule.9 Most of the 2015
HMDA Rule took effect on January 1,
2018.10 The 2015 HMDA Rule, among
other things, implemented the new data
points specified in the Dodd-Frank Act
and re-adopted certain pre-existing data
points added to Regulation C by the
5 Public Law 111–203, 124 Stat. 1376, 1980,
2035–38, 2097–101 (2010).
6 Dodd-Frank Act section 1094(3), amending
HMDA section 304(b), 12 U.S.C. 2803(b).
7 Id.
8 Id.
9 Home Mortgage Disclosure (Regulation C), 80 FR
66128 (Oct. 28, 2015).
10 Id. at 66128, 66256–58.
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Board. The 2015 HMDA Rule also added
a number of additional data points
pursuant to the Bureau’s discretionary
authority under HMDA section 304(b)(5)
and (6) and revised certain pre-existing
data points to provide for greater
specificity or additional information in
reporting.
The Bureau added the following data
points to Regulation C to implement
specific provisions added by the DoddFrank Act in HMDA section 304(b)(4),
(5)(A) through (C), and (6)(A) through
(I): ULI; 11 property address; age; rate
spread for all loans; 12 credit score; total
loan costs or total points and fees;
prepayment penalty term; loan term;
introductory rate period; non-amortizing
features; property value; application
channel; and mortgage loan originator
identifier.13
The Bureau also re-adopted certain
data points in the 2015 HMDA Rule that
are substantially similar or identical to
pre-existing data points added to
Regulation C by the Board. These data
points include the following:
Application date; loan type; whether the
application or covered loan involved a
request for a preapproval of a home
purchase loan under a preapproval
program; construction method for the
dwelling related to the subject
property; 14 the amount of the covered
loan or the amount applied for; the
action taken by the financial institution
and the date of the action taken; State;
county; census tract; sex; income; type
of purchaser; whether the loan is subject
to the Home Ownership and Equity
Protection Act of 1994 (HOEPA); lien
status of the subject property; 15 and the
total number of individual dwelling
11 Prior to the passage of the Dodd-Frank Act, the
Board required reporting of an identifying number
for the loan or application but did not require that
the identifier be universal. HMDA section
304(b)(6)(G) requires reporting of, ‘‘as the Bureau
may determine to be appropriate, a universal loan
identifier.’’
12 Prior to the passage of the Dodd-Frank Act, the
Board required financial institutions to report rate
spread for higher-priced mortgage loans. 67 FR 7222
(Feb. 15, 2002); 67 FR 43218 (June 27, 2002). HMDA
section 304(b)(5)(B) requires reporting of rate spread
for all loans.
13 12 CFR 1003.4(a)(1)(i), (a)(9)(i), (a)(10)(ii), and
(a)(12), (15), (17), (22), (25) through (28), and (33)
and (34).
14 Construction method and number of units,
together, replaced property type, the pre-existing
Regulation C data point; the information required
by the new data points is very similar to what the
Board required, but institutions now must report
the precise number of units rather than categorizing
dwellings into one-to-four family dwellings and
multifamily dwellings.
15 The 2015 HMDA Rule extends the requirement
to report lien status to purchased loans. 80 FR
66128, 66201 (Oct. 28, 2015).
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units contained in the dwelling related
to the loan (number of units ).16
In other instances, the 2015 HMDA
Rule revised pre-existing Regulation C
data points established by the Board to
require additional information be
reported for those data points. Such
revised data points include the
following: The purpose of the loan or
application; occupancy type; ethnicity;
race; and legal entity identifier (LEI).17
Additionally, the Bureau added the
following new data points in the 2015
HMDA Rule pursuant to its
discretionary authority under HMDA
section 304(b)(5) and (6): Reasons for
denial of a loan application, which were
optionally reported under the Board’s
rule but became mandatory in the 2015
HMDA Rule; 18 the total origination
charges associated with the loan; the
total points paid to the lender to reduce
the interest rate of the loan (discount
points); the amount of lender credits;
the interest rate applicable at closing or
account opening; the debt-to-income
ratio; the ratio of the total amount of
debt secured by the property to the
value of the property (combined loan-tovalue ratio); for transactions involving
manufactured homes, whether the loan
or application is or would have been
secured by a manufactured home and
land or by a manufactured home and
not land (manufactured home secured
property type); the land property
interest for loans or applications related
to manufactured housing (manufactured
home land property interest); the
number of individual dwellings units
that are income-restricted pursuant to
Federal, State, or local affordable
housing programs (multifamily
affordable units); information related to
the automated underwriting system
used in evaluating an application and
the result generated by the automated
underwriting system; whether the loan
is a reverse mortgage; whether the loan
is an open-end line of credit; and
whether the loan is primarily for a
business or commercial purpose.19
16 12 CFR 1003.4(a)(1)(ii), (a)(2), (4), (5), and (7),
(a)(8)(i) and (ii), (a)(9)(ii), (a)(10)(i) and (iii), and
(a)(11), (13) and (14), and (31).
17 12 CFR 1003.4(a)(3), (a)(6), (a)(10)(i); 12 CFR
1003.5(a)(3).
18 Financial institutions regulated by the Office of
the Comptroller of the Currency (OCC) are also
required to report reasons for denial on their HMDA
loan/application registers pursuant to 12 CFR
27.3(a)(1)(i) and 128.6. Similarly, pursuant to
regulations transferred from the Office of Thrift
Supervision, certain financial institutions
supervised by the Federal Deposit Insurance
Corporation (FDIC) are required to report reasons
for denial on their HMDA loan/application
registers. 12 CFR 390.147.
19 12 CFR 1003.4(a)(16), (18) through (21), (23)
and (24), (29) and (30), (32), and (35) through (38).
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The 2015 HMDA Rule also requires
reporting of applications for, and
originations of, dwelling-secured
business- or commercial-purpose
closed-end mortgage loans and openend lines of credit for home purchase,
refinancing, or home improvement
purposes.20 Prior to the 2015 HMDA
Rule, Regulation C covered closed-end,
business- or commercial-purpose loans
made to purchase, refinance, or improve
a dwelling. Thus, the 2015 HMDA Rule
revised coverage of business- or
commercial-purpose transactions by: (1)
Adding the dwelling-secured test, and
(2) requiring reporting of dwellingsecured, business- or commercialpurpose open-end lines of credit for the
purpose of home purchase, refinancing,
or home improvement.
Before institutions had to comply
with the new and revised data reporting
requirements in 2015 HMDA Rule, the
Bureau in September 2017 issued a final
rule amending certain aspects of the
2015 HMDA Rule (2017 HMDA Rule).21
Among other things, the 2017 HMDA
Rule addressed certain technical errors
in the 2015 HMDA Rule, eased the
burden of reporting certain data
requirements, and clarified key terms to
facilitate compliance with Regulation C.
The Bureau issued a statement in
December 2017 (December 2017
Statement) in which it indicated that it
intended to engage in a rulemaking to
reconsider various aspects of the 2015
HMDA Rule, such as the institutional
and transactional coverage tests and the
rule’s discretionary data points.22 This
ANPR is part of that rulemaking.
20 80 FR 66128, 66169–72 (Oct. 28, 2015). As used
in Regulation C, the term dwelling includes a
multifamily residential structure or community. 12
CFR 1003.2(f); comment 2(f)–2.
21 Home Mortgage Disclosure (Regulation C), 82
FR 43088 (Sept. 13, 2017).
22 Bureau of Consumer Fin. Prot., ‘‘Statement
with Respect to HMDA Implementation’’ (Dec. 21,
2017), https://files.consumerfinance.gov/f/
documents/cfpb_statement-with-respect-to-hmdaimplementation_122017.pdf. Additionally, in
recognition of the significant systems and
operations challenges needed to adjust to the
revised regulation, the December 2017 Statement
indicated that, for HMDA data collected in 2018
and reported in 2019, the Bureau does not intend
to require data resubmission unless data errors are
material. The December 2017 Statement also
explained that the Bureau does not intend to assess
penalties with respect to errors in data collected in
2018 and reported in 2019. As explained in the
statement, any supervisory examinations of 2018
HMDA data will be diagnostic to help institutions
identify compliance weaknesses and will credit
good-faith compliance efforts. The statement also
indicated that collection and submission of the
2018 HMDA data will provide financial institutions
an opportunity to identify any gaps in their
implementation of amended Regulation C and make
improvements in their HMDA compliance
management systems for future years. The Board,
the FDIC, the National Credit Union
Administration, and the OCC released similar
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On May 24, 2018, the President
signed the Economic Growth,
Regulatory Relief, and Consumer
Protection Act (EGRRCPA) into law.23
Section 104(a) of the EGRRCPA amends
section 304(i) of HMDA by adding
partial exemptions from HMDA’s
requirements for certain transactions of
insured depository institutions and
insured credit unions. Certain of the
data points about which the Bureau is
soliciting information in this ANPR are
covered under the EGRRCPA partial
exemptions.24
D. Feedback Since Issuing 2015 HMDA
Rule and 2017 HMDA Rule
Since issuing the 2015 HMDA Rule
and 2017 HMDA Rule, the Bureau has
heard concerns about the burden
associated with reporting certain of the
new or revised data points relative to
the value of the information in serving
HMDA’s purposes. The Bureau has also
heard continuing concerns about
Regulation C’s coverage of certain
business- or commercial-purpose loans.
In addition, although the 2015 HMDA
Rule was outside the scope of the
Bureau’s Call for Evidence series of
Requests for Information (RFIs) 25 issued
in spring 2018, the Bureau received
several comments regarding HMDA in
response to the RFIs. The Bureau has
considered those comments as well as
other input it has received from
stakeholders through its efforts to
monitor and support industry
implementation of the 2015 HMDA Rule
and the 2017 HMDA Rule in developing
this document.
Among other things, some industry
stakeholders have advised the Bureau
that it is more burdensome to report
information about whether a borrower
owns or leases the land on which a
manufactured home is located 26 than
the Bureau anticipated in 2015 because
such information is not generally
collected in the ordinary course of
business. Additionally, prior to the 2015
HMDA Rule, financial institutions were
required to ask loan applicants to
statements relating to their supervisory
examinations. Id.
23 Public Law 115–174, 132 Stat. 1296 (2018).
24 See Partial Exemptions from the Requirements
of the Home Mortgage Disclosure Act under the
Economic Growth, Regulatory Relief, and Consumer
Protection Act (Regulation C), 83 FR 45325, 45328–
29 (Sept. 7, 2018) (Bureau’s Interpretive and
Procedural Rule clarifying and implementing
EGRRCPA).
25 E.g., Request for Information Regarding the
Bureau’s Adopted Regulations and New
Rulemaking Authorities, 83 FR 12286 (Mar. 21,
2018); Request for Information Regarding the
Bureau’s Inherited Regulations and Inherited
Rulemaking Authorities, 83 FR 12881 (Mar. 26,
2018).
26 80 FR 66128, 66226–27 (Oct. 28, 2015).
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20051
identify their ethnicity using aggregate
categories (Hispanic or Latino, not
Hispanic or Latino) and to do the same
for race (e.g., Asian). Pursuant to the
2015 HMDA Rule, institutions are now
required to request that the applicant
self-identify their ethnicity using
disaggregated categories (e.g., Cuban or
Mexican) and their race using
disaggregated categories (e.g., Chinese or
Korean) in addition to the pre-existing
aggregate categories.27 Some financial
institutions have stated that these new
requirements can prolong and
complicate the application process. In
response to the Bureau’s RFIs, one
credit union expressed concern about
complying with the new disaggregated
data field requirements. On the other
hand, one community group stated that
disaggregated data on race and ethnicity
helps to identify predatory lending and
that such data could have helped to
avoid the negative impacts on many
communities resulting from the housing
crisis that began in 2007.
The 2015 HMDA Rule also requires
financial institutions to complete freeform text fields for certain data points
if certain circumstances are met. For
example, the 2015 HMDA Rule made
reporting of reasons for denial
mandatory and provides various
reporting options from which financial
institutions may choose.28 The 2015
HMDA Rule requires that financial
institutions include a reason for loan
denial in a free-form text data field if the
institution chooses the option of
‘‘Other.’’ 29 Several financial institutions
have expressed that using this free-form
text field can be a cumbersome process.
Additionally, in the past year the
Bureau has heard from several industry
stakeholders requesting that the Bureau
should exclude from Regulation C’s
coverage business- or commercialpurpose loans made to a non-natural
person and secured by a multifamily
dwelling. For example, in response to
the Bureau’s RFIs a few industry
commenters stated that requiring
reporting of such transactions is not
necessary to fulfilling the purposes of
HMDA and that the burden of reporting
them does not outweigh the benefits of
doing so.
II. Request for Comment
The Bureau is issuing this ANPR to
solicit comments relating to whether to
make changes to (1) the data points that
the 2015 HMDA Rule added to
Regulation C or revised to require
additional information, and (2)
27 Id.
at 66187–94.
at 66205.
29 Id. at 66205–6.
28 Id.
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relating to whether to make changes to
the data points that the 2015 HMDA
Rule added to Regulation C or revised
to require additional information.30 One
of the Bureau’s goals in gathering
information in this ANPR is to ensure
that the data requirements established
in the 2015 HMDA Rule appropriately
balance the benefits and burdens
associated with data reporting.
Financial institutions were required to
report their first data pursuant to the
2015 HMDA Rule by March 1, 2019.
Now that financial institutions have
completed their first submissions of the
additional information required under
Regulation C’s coverage of business- or
commercial-purpose loans made to a
non-natural person and secured by a
multifamily dwelling. The Bureau will
carefully consider the public’s input as
it determines whether to formulate a
proposed rule relating to changing any
of these data points from the 2015
HMDA Rule and in deciding whether to
address certain business- or
commercial-purpose transactions as part
of any upcoming rulemaking.
A. Data Points Required by 2015 HMDA
Rule
The Bureau is soliciting comment,
data, and information from the public
the 2015 HMDA Rule and institutionspecific submissions are available to the
public, the Bureau believes that they
and other stakeholders may have
additional and more accurate
information to offer relating to the
benefits and burdens associated with
the data points required by the 2015
HMDA Rule. Below is a table that lists
the data points that the Bureau added or
revised to require additional
information pursuant to the 2015
HMDA Rule.
TABLE 1—DATA POINTS ADDED OR REVISED TO REQUIRE ADDITIONAL INFORMATION PURSUANT TO THE 2015 HMDA
RULE
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•
•
•
•
•
•
•
•
•
•
•
•
•
Data points added by 2015 HMDA Rule to
implement Dodd-Frank Act requirements
Data points added by 2015 HMDA Rule pursuant
to discretionary authority
Universal Loan Identifies (ULI)
Property Address
Age
Rate Spread for all loans
Credit Score
Total Loan Cost or Total Points and Fees
Prepayment Penalty Term
Loan Term
Introductory Rate Period
Non-Amortizing Features
Property Value
Application Channel
Mortgage Loan Originator Identifier
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Reasons for Denial
Origination Charges
Discount Points
Lender Credits
Interest Rate
Debt-to-Income Ratio
Combined Loan to Value Ratio
Manufactured Home Secured Property Type
Manufactured Home Land Property Interest
Multifamily Affordable Units
Automated Underwriting System
Reverse Mortgage Flag
Open-End Line of Credit Flag
Business or Commercial Purpose Flag
Data points revised by 2015 HMDA Rule to
require additional information
•
•
•
•
•
Loan Purpose
Occupancy Type
Ethnicity
Race
Legal Entity Identifier (LEI)
The Bureau encourages commenters
to be specific and, where possible, to
include any relevant empirical
evidence. Comment is requested from
all interested parties on the following
four topics:
1. Please identify any new data point
or any data point revised to require
additional information from the table
above for which the cost of collecting
and reporting the information does not
justify the benefit that the information
collected and reported provides in
furthering the purposes of HMDA. For
each such data point:
i. Please describe the nature and
magnitude of any operational challenges
in collecting and reporting the required
information.
ii. What ongoing costs are incurred in
collecting and reporting the required
information? Has the Bureau’s new webbased data submission and edit-check
system affected ongoing costs of
collecting and reporting the required
information? If so, how and how much?
To what extent are the data point’s
requirements aligned with industry
standards, and how does that affect
ongoing costs of collecting and reporting
the required information?
iii. Would financial institutions
generally collect the required
information in the ordinary course of
business absent Regulation C
requirements? If so, what are the
incremental costs associated with
reporting the required information? If
not, what are the costs associated with
collecting and reporting the required
information?
iv. How much value does the data
point provide in furthering the purposes
of HMDA?
2. The 2015 HMDA Rule requires
financial institutions to complete freeform text fields for certain data points
when certain circumstances are met. For
each free-form text field required by the
2015 HMDA Rule:
i. What are the costs of providing
information through the free-form text
field?
ii. What are the benefits of providing
information through the free-form text
field?
iii. Are there better alternatives to
providing information than through the
free-form text field?
3. Are there other considerations the
Bureau should take into account in
deciding whether to propose to
eliminate or revise any new data point
or revised data point from the 2015
HMDA Rule?
4. Are there new or revised data
points under the 2015 HMDA Rule for
which more explanation is needed to
clarify the collection and reporting
requirements? If so, please identify any
data point for which additional clarity
could reduce the costs associated with
collecting and reporting the data and
improve the value of the data in
furthering the purposes of HMDA.
30 As discussed above in part I.C, many of the
data points in the 2015 HMDA Rule implement data
points specified in the Dodd-Frank Act or re-adopt
pre-existing data points added to Regulation C by
the Board. Other data points, however, were added
pursuant to the Bureau’s discretionary authority
provided by the Dodd-Frank Act or revise preexisting data points to require additional
information. The type or extent of changes the
Bureau may propose relating to any of these data
points in a future notice of proposed rulemaking
may vary depending on the category under which
the data point falls.
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Federal Register / Vol. 84, No. 89 / Wednesday, May 8, 2019 / Proposed Rules
B. Coverage of Certain Business- or
Commercial-Purpose Transactions
The Bureau seeks to assess the extent
to which requiring reporting of
information on business- or commercialpurpose loans made to a non-natural
person and secured by a multifamily
dwelling imposes burdens on financial
institutions and furthers HMDA’s
purposes.31
The Bureau seeks information that
might assist the Bureau in deciding
whether to propose to exclude such
transactions from HMDA’s
requirements, including information
about the following:
5. The value that data on such
transactions provides in serving
HMDA’s purposes;
6. Other benefits associated with
reporting such transactions; and
7. The burden imposed by the
requirement to report data on such
transactions.
Dated: April 26, 2019.
Kathleen L. Kraninger,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2019–08979 Filed 5–7–19; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 25
[Docket No. FAA–2018–1016; Notice No. 25–
19–06–SC]
Special Conditions: The Boeing
Company Model 777–9 Airplane;
Electronic Flight-Control System and
Control-Surface-Position Awareness
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed special
conditions.
AGENCY:
This action proposes special
conditions for The Boeing Company
(Boeing) Model 777–9 airplane. This
airplane will have a novel or unusual
design feature when compared to the
state of technology envisioned in the
airworthiness standards for transportcategory airplanes. This design feature
is an electronic flight-control system
requiring control-surface-position
khammond on DSKBBV9HB2PROD with PROPOSALS
SUMMARY:
31 HMDA’s purposes are: (i) To help determine
whether financial institutions are serving the
housing needs of their communities; (ii) to assist
public officials in distributing public-sector
investment so as to attract private investment to
areas where it is needed; and (iii) to assist in
identifying possible discriminatory lending patterns
and enforcing antidiscrimination statutes. 12 CFR
1003.1.
VerDate Sep<11>2014
16:31 May 07, 2019
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awareness. The applicable airworthiness
regulations do not contain adequate or
appropriate safety standards for this
design feature. These proposed special
conditions contain the additional safety
standards that the Administrator
considers necessary to establish a level
of safety equivalent to that established
by the existing airworthiness standards.
DATES: Send comments on or before
June 24, 2019.
ADDRESSES: Send comments identified
by Docket No. FAA–2018–1016 using
any of the following methods:
• Federal eRegulations Portal: Go to
https://www.regulations.gov/ and follow
the online instructions for sending your
comments electronically.
• Mail: Send comments to Docket
Operations, M–30, U.S. Department of
Transportation (DOT), 1200 New Jersey
Avenue SE, Room W12–140, West
Building Ground Floor, Washington, DC
20590–0001.
• Hand Delivery or Courier: Take
comments to Docket Operations in
Room W12–140 of the West Building
Ground Floor at 1200 New Jersey
Avenue SE, Washington, DC, between 9
a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
• Fax: Fax comments to Docket
Operations at 202–493–2251.
Privacy: The FAA will post all
comments it receives, without change,
to https://www.regulations.gov/,
including any personal information the
commenter provides. Using the search
function of the docket website, anyone
can find and read the electronic form of
all comments received into any FAA
docket, including the name of the
individual sending the comment (or
signing the comment for an association,
business, labor union, etc.). DOT’s
complete Privacy Act Statement can be
found in the Federal Register published
on April 11, 2000 (65 FR 19477–19478).
Docket: Background documents or
comments received may be read at
https://www.regulations.gov/ at any time.
Follow the online instructions for
accessing the docket or go to Docket
Operations in Room W12–140 of the
West Building Ground Floor at 1200
New Jersey Avenue SE, Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Joe
Jacobsen, Airplane & Flight Crew
Interface Section, AIR–671, Transport
Standards Branch, Policy and
Innovation Division, Aircraft
Certification Service, Federal Aviation
Administration, 2200 South 216th
Street, Des Moines, Washington 98198;
telephone: 206–231–3158; email:
joe.jacobsen@faa.gov.
PO 00000
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20053
SUPPLEMENTARY INFORMATION:
Comments Invited
We invite interested people to take
part in this rulemaking by sending
written comments, data, or views. The
most helpful comments reference a
specific portion of the special
conditions, explain the reason for any
recommended change, and include
supporting data.
We will consider all comments we
receive by the closing date for
comments. We may change these special
conditions based on the comments we
receive.
Background
On December 6, 2013, Boeing applied
for an amendment to Type Certificate
No. T00001SE to include the new 777–
9 airplane. This airplane, which is a
derivative of the Boeing Model 777
airplane currently approved under Type
Certificate No. T00001SE, is a twinengine, transport-category airplane with
seating for 495 passengers and a
maximum takeoff weight of 775,000
pounds.
Type Certification Basis
Under the provisions of title 14, Code
of Federal Regulations (14 CFR) 21.101,
Boeing must show that the Model 777–
9 airplane meets the applicable
provisions of the regulations listed in
Type Certificate No. T00001SE, or the
applicable regulations in effect on the
date of application for the change,
except for earlier amendments as agreed
upon by the FAA.
If the Administrator finds that the
applicable airworthiness regulations
(i.e., 14 CFR part 25) do not contain
adequate or appropriate safety standards
for the Boeing Model 777–9 airplane
because of a novel or unusual design
feature, special conditions are
prescribed under the provisions of
§ 21.16.
Special conditions are initially
applicable to the model for which they
are issued. Should the type certificate
for that model be amended later to
include any other model that
incorporates the same novel or unusual
design feature, or should any other
model already included on the same
type certificate be modified to
incorporate the same novel or unusual
design feature, these special conditions
would also apply to the other model
under § 21.101.
In addition to the applicable
airworthiness regulations and special
conditions, the Boeing Model 777–9
airplane must comply with the fuel-vent
and exhaust-emission requirements of
14 CFR part 34, and the noise-
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]]>Agencies
[Federal Register Volume 84, Number 89 (Wednesday, May 8, 2019)]
[Proposed Rules]
[Pages 20049-20053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08979]
=======================================================================
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1003
[Docket No. CFPB-2019-0020]
RIN 3170-AA97
Home Mortgage Disclosure (Regulation C) Data Points and Coverage
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Advance notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
issuing this Advance Notice of Proposed Rulemaking (ANPR) to solicit
comments relating to whether to make changes to the data points that
the Bureau's October 2015 final rule implementing the Home Mortgage
Disclosure Act (HMDA) added to Regulation C or revised to require
additional information. Additionally, the Bureau is issuing this ANPR
to solicit comments relating to the requirement that institutions
report certain business- or commercial-purpose transactions under
Regulation C.
DATES: Comments must be received by July 8, 2019.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2019-0020, by any of the following
methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include Docket No. CFPB-
2019-0020 in the subject line of the message.
Mail: Comment Intake, Bureau of Consumer Financial
Protection, 1700 G Street NW, Washington, DC 20552.
Hand Delivery/Courier: Comment Intake, Bureau of Consumer
Financial Protection, 1700 G Street NW, Washington, DC 20552.
Instructions: When responding to a particular question, please note
the question number at the top of the response.
You are not required to answer all questions to receive
consideration of your comments. The Bureau encourages the early
submission of comments. All submissions must include the document title
and docket number.
Because paper mail in the Washington, DC area and at the Bureau is
subject to delay, commenters are encouraged to submit comments
electronically. In general, all comments received will be posted
without change to https://www.regulations.gov. In addition, comments
will be available for public inspection and copying at 1700 G Street
NW, Washington, DC 20552, on official business days between the hours
of 10:00 a.m. and 5:00 p.m. eastern daylight time. You can make an
appointment to inspect the documents by telephoning 202-435-7275.
All submissions, including attachments and other supporting
materials, will become part of the public record and subject to public
disclosure. Sensitive personal information, such as account numbers or
Social Security numbers, or names of other individuals, should not be
included. Submissions will not be edited to remove any identifying or
contact information.
The Bureau invites comment on all aspects of the ANPR from all
interested parties. In the event that a respondent may have concerns
about revealing proprietary or personal information, the Bureau
welcomes comments from attorneys, consumer advocacy organizations,
trade associations, or other representatives that do not identify their
clients.
FOR FURTHER INFORMATION CONTACT: Jaydee DiGiovanni or Shaakira Gold-
Ramirez, Counsels; or Amanda Quester or Alexandra Reimelt, Senior
Counsels, Office of Regulations, at 202-435-7700 or https://reginquiries.consumerfinance.gov. If you require this document in an
alternative electronic format, please contact
[email protected].
SUPPLEMENTARY INFORMATION: The Bureau is issuing this ANPR to solicit
information relating to whether to make changes to the data points that
the Bureau's October 2015 final rule implementing HMDA (2015 HMDA Rule)
added to Regulation C or revised to require additional information. The
Bureau also seeks comments relating to the requirement that
institutions report certain business- or commercial-purpose
transactions under Regulation C.
I. Background
A. HMDA and Regulation C
HMDA requires certain depository institutions and for-profit
nondepository institutions to collect, record, and report data about
originations and purchases of mortgage loans, as well as mortgage loan
applications that do not result in originations (for example,
applications that are denied or withdrawn).\1\ By its statutory terms,
HMDA defines ``mortgage loan'' as (1) ``a loan which is secured by
residential real property,'' or (2) a ``home improvement loan.'' \2\
The purposes of HMDA are to provide the public with loan data that can
be used: (i) To help determine whether financial institutions are
serving the housing needs of their communities; (ii) to assist public
officials in distributing public-sector investment so as to attract
private investment to areas where it is needed; and (iii) to assist in
identifying possible discriminatory lending patterns and enforcing
antidiscrimination statutes.\3\ Prior to the enactment of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),
Regulation C required reporting of 22 data points and allowed for
optional reporting of reasons an institution denied an application.\4\
---------------------------------------------------------------------------
\1\ To simplify review of this document, the Bureau generally
refers herein to the obligation to report data instead of listing
all of these obligations in each instance.
\2\ 12 U.S.C. 2802(a)(2).
\3\ 12 CFR 1003.1.
\4\ As used in this document, the term ``data point'' refers to
items of information that entities are required to compile and
report, generally listed in separate paragraphs in Regulation C.
Some data points are reported using multiple data fields.
---------------------------------------------------------------------------
[[Page 20050]]
B. Dodd-Frank Act
In 2010, Congress enacted the Dodd-Frank Act, which amended HMDA
and transferred HMDA rulemaking authority and other functions from the
Board of Governors of the Federal Reserve System (Board) to the
Bureau.\5\ Among other changes, the Dodd-Frank Act expanded the scope
of information relating to mortgage applications and loans that
institutions must compile, maintain, and report under HMDA.
Specifically, the Dodd-Frank Act amended HMDA section 304(b)(4) by
adding one new data point, the age of loan applicants and mortgagors.
The Dodd-Frank Act also added new HMDA section 304(b)(5) and (6), which
requires the following additional new data points: Information relating
to the total points and fees payable at origination (total loan costs
or total points and fees); the difference between the annual percentage
rate (APR) associated with the loan and a benchmark rate or rates for
all loans (rate spread); the term of any prepayment penalty; the value
of real property to be pledged as collateral; the term of the loan and
of any introductory interest rate on the loan; the presence of contract
terms allowing non-amortizing payments; the channel through which the
application was made; and the credit scores of applicants and
mortgagors.\6\ New HMDA section 304(b)(6) in addition authorizes the
Bureau to require, ``as [it] may determine to be appropriate,'' a
unique identifier that identifies the loan originator, a universal loan
identifier (ULI), and the parcel number that corresponds to the real
property pledged as collateral for the mortgage loan.\7\ New HMDA
section 304(b)(5)(D) and (6)(J) further provides the Bureau with the
authority to mandate reporting of ``such other information as the
Bureau may require.'' \8\
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\5\ Public Law 111-203, 124 Stat. 1376, 1980, 2035-38, 2097-101
(2010).
\6\ Dodd-Frank Act section 1094(3), amending HMDA section
304(b), 12 U.S.C. 2803(b).
\7\ Id.
\8\ Id.
---------------------------------------------------------------------------
C. 2015 HMDA Rule, 2017 HMDA Rule, December 2017 Statement, and EGRRCPA
In October 2015, the Bureau issued the 2015 HMDA Rule.\9\ Most of
the 2015 HMDA Rule took effect on January 1, 2018.\10\ The 2015 HMDA
Rule, among other things, implemented the new data points specified in
the Dodd-Frank Act and re-adopted certain pre-existing data points
added to Regulation C by the Board. The 2015 HMDA Rule also added a
number of additional data points pursuant to the Bureau's discretionary
authority under HMDA section 304(b)(5) and (6) and revised certain pre-
existing data points to provide for greater specificity or additional
information in reporting.
---------------------------------------------------------------------------
\9\ Home Mortgage Disclosure (Regulation C), 80 FR 66128 (Oct.
28, 2015).
\10\ Id. at 66128, 66256-58.
---------------------------------------------------------------------------
The Bureau added the following data points to Regulation C to
implement specific provisions added by the Dodd-Frank Act in HMDA
section 304(b)(4), (5)(A) through (C), and (6)(A) through (I): ULI;
\11\ property address; age; rate spread for all loans; \12\ credit
score; total loan costs or total points and fees; prepayment penalty
term; loan term; introductory rate period; non-amortizing features;
property value; application channel; and mortgage loan originator
identifier.\13\
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\11\ Prior to the passage of the Dodd-Frank Act, the Board
required reporting of an identifying number for the loan or
application but did not require that the identifier be universal.
HMDA section 304(b)(6)(G) requires reporting of, ``as the Bureau may
determine to be appropriate, a universal loan identifier.''
\12\ Prior to the passage of the Dodd-Frank Act, the Board
required financial institutions to report rate spread for higher-
priced mortgage loans. 67 FR 7222 (Feb. 15, 2002); 67 FR 43218 (June
27, 2002). HMDA section 304(b)(5)(B) requires reporting of rate
spread for all loans.
\13\ 12 CFR 1003.4(a)(1)(i), (a)(9)(i), (a)(10)(ii), and
(a)(12), (15), (17), (22), (25) through (28), and (33) and (34).
---------------------------------------------------------------------------
The Bureau also re-adopted certain data points in the 2015 HMDA
Rule that are substantially similar or identical to pre-existing data
points added to Regulation C by the Board. These data points include
the following: Application date; loan type; whether the application or
covered loan involved a request for a preapproval of a home purchase
loan under a preapproval program; construction method for the dwelling
related to the subject property; \14\ the amount of the covered loan or
the amount applied for; the action taken by the financial institution
and the date of the action taken; State; county; census tract; sex;
income; type of purchaser; whether the loan is subject to the Home
Ownership and Equity Protection Act of 1994 (HOEPA); lien status of the
subject property; \15\ and the total number of individual dwelling
units contained in the dwelling related to the loan (number of units
).\16\
---------------------------------------------------------------------------
\14\ Construction method and number of units, together, replaced
property type, the pre-existing Regulation C data point; the
information required by the new data points is very similar to what
the Board required, but institutions now must report the precise
number of units rather than categorizing dwellings into one-to-four
family dwellings and multifamily dwellings.
\15\ The 2015 HMDA Rule extends the requirement to report lien
status to purchased loans. 80 FR 66128, 66201 (Oct. 28, 2015).
\16\ 12 CFR 1003.4(a)(1)(ii), (a)(2), (4), (5), and (7),
(a)(8)(i) and (ii), (a)(9)(ii), (a)(10)(i) and (iii), and (a)(11),
(13) and (14), and (31).
---------------------------------------------------------------------------
In other instances, the 2015 HMDA Rule revised pre-existing
Regulation C data points established by the Board to require additional
information be reported for those data points. Such revised data points
include the following: The purpose of the loan or application;
occupancy type; ethnicity; race; and legal entity identifier (LEI).\17\
---------------------------------------------------------------------------
\17\ 12 CFR 1003.4(a)(3), (a)(6), (a)(10)(i); 12 CFR
1003.5(a)(3).
---------------------------------------------------------------------------
Additionally, the Bureau added the following new data points in the
2015 HMDA Rule pursuant to its discretionary authority under HMDA
section 304(b)(5) and (6): Reasons for denial of a loan application,
which were optionally reported under the Board's rule but became
mandatory in the 2015 HMDA Rule; \18\ the total origination charges
associated with the loan; the total points paid to the lender to reduce
the interest rate of the loan (discount points); the amount of lender
credits; the interest rate applicable at closing or account opening;
the debt-to-income ratio; the ratio of the total amount of debt secured
by the property to the value of the property (combined loan-to-value
ratio); for transactions involving manufactured homes, whether the loan
or application is or would have been secured by a manufactured home and
land or by a manufactured home and not land (manufactured home secured
property type); the land property interest for loans or applications
related to manufactured housing (manufactured home land property
interest); the number of individual dwellings units that are income-
restricted pursuant to Federal, State, or local affordable housing
programs (multifamily affordable units); information related to the
automated underwriting system used in evaluating an application and the
result generated by the automated underwriting system; whether the loan
is a reverse mortgage; whether the loan is an open-end line of credit;
and whether the loan is primarily for a business or commercial
purpose.\19\
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\18\ Financial institutions regulated by the Office of the
Comptroller of the Currency (OCC) are also required to report
reasons for denial on their HMDA loan/application registers pursuant
to 12 CFR 27.3(a)(1)(i) and 128.6. Similarly, pursuant to
regulations transferred from the Office of Thrift Supervision,
certain financial institutions supervised by the Federal Deposit
Insurance Corporation (FDIC) are required to report reasons for
denial on their HMDA loan/application registers. 12 CFR 390.147.
\19\ 12 CFR 1003.4(a)(16), (18) through (21), (23) and (24),
(29) and (30), (32), and (35) through (38).
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[[Page 20051]]
The 2015 HMDA Rule also requires reporting of applications for, and
originations of, dwelling-secured business- or commercial-purpose
closed-end mortgage loans and open-end lines of credit for home
purchase, refinancing, or home improvement purposes.\20\ Prior to the
2015 HMDA Rule, Regulation C covered closed-end, business- or
commercial-purpose loans made to purchase, refinance, or improve a
dwelling. Thus, the 2015 HMDA Rule revised coverage of business- or
commercial-purpose transactions by: (1) Adding the dwelling-secured
test, and (2) requiring reporting of dwelling-secured, business- or
commercial-purpose open-end lines of credit for the purpose of home
purchase, refinancing, or home improvement.
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\20\ 80 FR 66128, 66169-72 (Oct. 28, 2015). As used in
Regulation C, the term dwelling includes a multifamily residential
structure or community. 12 CFR 1003.2(f); comment 2(f)-2.
---------------------------------------------------------------------------
Before institutions had to comply with the new and revised data
reporting requirements in 2015 HMDA Rule, the Bureau in September 2017
issued a final rule amending certain aspects of the 2015 HMDA Rule
(2017 HMDA Rule).\21\ Among other things, the 2017 HMDA Rule addressed
certain technical errors in the 2015 HMDA Rule, eased the burden of
reporting certain data requirements, and clarified key terms to
facilitate compliance with Regulation C.
---------------------------------------------------------------------------
\21\ Home Mortgage Disclosure (Regulation C), 82 FR 43088 (Sept.
13, 2017).
---------------------------------------------------------------------------
The Bureau issued a statement in December 2017 (December 2017
Statement) in which it indicated that it intended to engage in a
rulemaking to reconsider various aspects of the 2015 HMDA Rule, such as
the institutional and transactional coverage tests and the rule's
discretionary data points.\22\ This ANPR is part of that rulemaking.
---------------------------------------------------------------------------
\22\ Bureau of Consumer Fin. Prot., ``Statement with Respect to
HMDA Implementation'' (Dec. 21, 2017), https://files.consumerfinance.gov/f/documents/cfpb_statement-with-respect-to-hmda-implementation_122017.pdf. Additionally, in recognition of
the significant systems and operations challenges needed to adjust
to the revised regulation, the December 2017 Statement indicated
that, for HMDA data collected in 2018 and reported in 2019, the
Bureau does not intend to require data resubmission unless data
errors are material. The December 2017 Statement also explained that
the Bureau does not intend to assess penalties with respect to
errors in data collected in 2018 and reported in 2019. As explained
in the statement, any supervisory examinations of 2018 HMDA data
will be diagnostic to help institutions identify compliance
weaknesses and will credit good-faith compliance efforts. The
statement also indicated that collection and submission of the 2018
HMDA data will provide financial institutions an opportunity to
identify any gaps in their implementation of amended Regulation C
and make improvements in their HMDA compliance management systems
for future years. The Board, the FDIC, the National Credit Union
Administration, and the OCC released similar statements relating to
their supervisory examinations. Id.
---------------------------------------------------------------------------
On May 24, 2018, the President signed the Economic Growth,
Regulatory Relief, and Consumer Protection Act (EGRRCPA) into law.\23\
Section 104(a) of the EGRRCPA amends section 304(i) of HMDA by adding
partial exemptions from HMDA's requirements for certain transactions of
insured depository institutions and insured credit unions. Certain of
the data points about which the Bureau is soliciting information in
this ANPR are covered under the EGRRCPA partial exemptions.\24\
---------------------------------------------------------------------------
\23\ Public Law 115-174, 132 Stat. 1296 (2018).
\24\ See Partial Exemptions from the Requirements of the Home
Mortgage Disclosure Act under the Economic Growth, Regulatory
Relief, and Consumer Protection Act (Regulation C), 83 FR 45325,
45328-29 (Sept. 7, 2018) (Bureau's Interpretive and Procedural Rule
clarifying and implementing EGRRCPA).
---------------------------------------------------------------------------
D. Feedback Since Issuing 2015 HMDA Rule and 2017 HMDA Rule
Since issuing the 2015 HMDA Rule and 2017 HMDA Rule, the Bureau has
heard concerns about the burden associated with reporting certain of
the new or revised data points relative to the value of the information
in serving HMDA's purposes. The Bureau has also heard continuing
concerns about Regulation C's coverage of certain business- or
commercial-purpose loans. In addition, although the 2015 HMDA Rule was
outside the scope of the Bureau's Call for Evidence series of Requests
for Information (RFIs) \25\ issued in spring 2018, the Bureau received
several comments regarding HMDA in response to the RFIs. The Bureau has
considered those comments as well as other input it has received from
stakeholders through its efforts to monitor and support industry
implementation of the 2015 HMDA Rule and the 2017 HMDA Rule in
developing this document.
---------------------------------------------------------------------------
\25\ E.g., Request for Information Regarding the Bureau's
Adopted Regulations and New Rulemaking Authorities, 83 FR 12286
(Mar. 21, 2018); Request for Information Regarding the Bureau's
Inherited Regulations and Inherited Rulemaking Authorities, 83 FR
12881 (Mar. 26, 2018).
---------------------------------------------------------------------------
Among other things, some industry stakeholders have advised the
Bureau that it is more burdensome to report information about whether a
borrower owns or leases the land on which a manufactured home is
located \26\ than the Bureau anticipated in 2015 because such
information is not generally collected in the ordinary course of
business. Additionally, prior to the 2015 HMDA Rule, financial
institutions were required to ask loan applicants to identify their
ethnicity using aggregate categories (Hispanic or Latino, not Hispanic
or Latino) and to do the same for race (e.g., Asian). Pursuant to the
2015 HMDA Rule, institutions are now required to request that the
applicant self-identify their ethnicity using disaggregated categories
(e.g., Cuban or Mexican) and their race using disaggregated categories
(e.g., Chinese or Korean) in addition to the pre-existing aggregate
categories.\27\ Some financial institutions have stated that these new
requirements can prolong and complicate the application process. In
response to the Bureau's RFIs, one credit union expressed concern about
complying with the new disaggregated data field requirements. On the
other hand, one community group stated that disaggregated data on race
and ethnicity helps to identify predatory lending and that such data
could have helped to avoid the negative impacts on many communities
resulting from the housing crisis that began in 2007.
---------------------------------------------------------------------------
\26\ 80 FR 66128, 66226-27 (Oct. 28, 2015).
\27\ Id. at 66187-94.
---------------------------------------------------------------------------
The 2015 HMDA Rule also requires financial institutions to complete
free-form text fields for certain data points if certain circumstances
are met. For example, the 2015 HMDA Rule made reporting of reasons for
denial mandatory and provides various reporting options from which
financial institutions may choose.\28\ The 2015 HMDA Rule requires that
financial institutions include a reason for loan denial in a free-form
text data field if the institution chooses the option of ``Other.''
\29\ Several financial institutions have expressed that using this
free-form text field can be a cumbersome process.
---------------------------------------------------------------------------
\28\ Id. at 66205.
\29\ Id. at 66205-6.
---------------------------------------------------------------------------
Additionally, in the past year the Bureau has heard from several
industry stakeholders requesting that the Bureau should exclude from
Regulation C's coverage business- or commercial-purpose loans made to a
non-natural person and secured by a multifamily dwelling. For example,
in response to the Bureau's RFIs a few industry commenters stated that
requiring reporting of such transactions is not necessary to fulfilling
the purposes of HMDA and that the burden of reporting them does not
outweigh the benefits of doing so.
II. Request for Comment
The Bureau is issuing this ANPR to solicit comments relating to
whether to make changes to (1) the data points that the 2015 HMDA Rule
added to Regulation C or revised to require additional information, and
(2)
[[Page 20052]]
Regulation C's coverage of business- or commercial-purpose loans made
to a non-natural person and secured by a multifamily dwelling. The
Bureau will carefully consider the public's input as it determines
whether to formulate a proposed rule relating to changing any of these
data points from the 2015 HMDA Rule and in deciding whether to address
certain business- or commercial-purpose transactions as part of any
upcoming rulemaking.
A. Data Points Required by 2015 HMDA Rule
The Bureau is soliciting comment, data, and information from the
public relating to whether to make changes to the data points that the
2015 HMDA Rule added to Regulation C or revised to require additional
information.\30\ One of the Bureau's goals in gathering information in
this ANPR is to ensure that the data requirements established in the
2015 HMDA Rule appropriately balance the benefits and burdens
associated with data reporting. Financial institutions were required to
report their first data pursuant to the 2015 HMDA Rule by March 1,
2019. Now that financial institutions have completed their first
submissions of the additional information required under the 2015 HMDA
Rule and institution-specific submissions are available to the public,
the Bureau believes that they and other stakeholders may have
additional and more accurate information to offer relating to the
benefits and burdens associated with the data points required by the
2015 HMDA Rule. Below is a table that lists the data points that the
Bureau added or revised to require additional information pursuant to
the 2015 HMDA Rule.
---------------------------------------------------------------------------
\30\ As discussed above in part I.C, many of the data points in
the 2015 HMDA Rule implement data points specified in the Dodd-Frank
Act or re-adopt pre-existing data points added to Regulation C by
the Board. Other data points, however, were added pursuant to the
Bureau's discretionary authority provided by the Dodd-Frank Act or
revise pre-existing data points to require additional information.
The type or extent of changes the Bureau may propose relating to any
of these data points in a future notice of proposed rulemaking may
vary depending on the category under which the data point falls.
Table 1--Data Points Added or Revised To Require Additional Information Pursuant to the 2015 HMDA Rule
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Data points added by 2015 HMDA Rule Data points revised by 2015 HMDA
to implement Dodd-Frank Act Data points added by 2015 HMDA Rule Rule to require additional
requirements pursuant to discretionary authority information
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Universal Loan Identifies Reasons for Denial Loan Purpose
(ULI)
Property Address Origination Charges Occupancy Type
Age Discount Points Ethnicity
Rate Spread for all loans Lender Credits Race
Credit Score Interest Rate Legal Entity Identifier
(LEI)
Total Loan Cost or Total Debt-to-Income Ratio
Points and Fees
Prepayment Penalty Term Combined Loan to Value Ratio
Loan Term Manufactured Home Secured
Property Type
Introductory Rate Period Manufactured Home Land
Property Interest
Non-Amortizing Features Multifamily Affordable Units
Property Value Automated Underwriting System
Application Channel Reverse Mortgage Flag
Mortgage Loan Originator Open-End Line of Credit Flag
Identifier Business or Commercial
Purpose Flag
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The Bureau encourages commenters to be specific and, where
possible, to include any relevant empirical evidence. Comment is
requested from all interested parties on the following four topics:
1. Please identify any new data point or any data point revised to
require additional information from the table above for which the cost
of collecting and reporting the information does not justify the
benefit that the information collected and reported provides in
furthering the purposes of HMDA. For each such data point:
i. Please describe the nature and magnitude of any operational
challenges in collecting and reporting the required information.
ii. What ongoing costs are incurred in collecting and reporting the
required information? Has the Bureau's new web-based data submission
and edit-check system affected ongoing costs of collecting and
reporting the required information? If so, how and how much? To what
extent are the data point's requirements aligned with industry
standards, and how does that affect ongoing costs of collecting and
reporting the required information?
iii. Would financial institutions generally collect the required
information in the ordinary course of business absent Regulation C
requirements? If so, what are the incremental costs associated with
reporting the required information? If not, what are the costs
associated with collecting and reporting the required information?
iv. How much value does the data point provide in furthering the
purposes of HMDA?
2. The 2015 HMDA Rule requires financial institutions to complete
free-form text fields for certain data points when certain
circumstances are met. For each free-form text field required by the
2015 HMDA Rule:
i. What are the costs of providing information through the free-
form text field?
ii. What are the benefits of providing information through the
free-form text field?
iii. Are there better alternatives to providing information than
through the free-form text field?
3. Are there other considerations the Bureau should take into
account in deciding whether to propose to eliminate or revise any new
data point or revised data point from the 2015 HMDA Rule?
4. Are there new or revised data points under the 2015 HMDA Rule
for which more explanation is needed to clarify the collection and
reporting requirements? If so, please identify any data point for which
additional clarity could reduce the costs associated with collecting
and reporting the data and improve the value of the data in furthering
the purposes of HMDA.
[[Page 20053]]
B. Coverage of Certain Business- or Commercial-Purpose Transactions
The Bureau seeks to assess the extent to which requiring reporting
of information on business- or commercial-purpose loans made to a non-
natural person and secured by a multifamily dwelling imposes burdens on
financial institutions and furthers HMDA's purposes.\31\
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\31\ HMDA's purposes are: (i) To help determine whether
financial institutions are serving the housing needs of their
communities; (ii) to assist public officials in distributing public-
sector investment so as to attract private investment to areas where
it is needed; and (iii) to assist in identifying possible
discriminatory lending patterns and enforcing antidiscrimination
statutes. 12 CFR 1003.1.
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The Bureau seeks information that might assist the Bureau in
deciding whether to propose to exclude such transactions from HMDA's
requirements, including information about the following:
5. The value that data on such transactions provides in serving
HMDA's purposes;
6. Other benefits associated with reporting such transactions; and
7. The burden imposed by the requirement to report data on such
transactions.
Dated: April 26, 2019.
Kathleen L. Kraninger,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2019-08979 Filed 5-7-19; 8:45 am]
BILLING CODE 4810-AM-P
