engaged in enforcement, and a description of this procedures under which such State law is to be administratively enforced, including, if relevant, administrative enforcement regarding Federally-chartered creditors.1

The statement should also include reasons to support the claim that there is adequate provision for enforcement of such State law. (c) Criteria for determination. The Board will consider the criteria set forth below, and any other relevant information, in determining whether the law of a State is substantially similar to, or provides greater protection to applicants than, the provisions of sections 701 and 702 of the Act regarding the class of action transactions within that State, and whether there is adequate provision for State enforcement of such law. In making that determination, the Board primarily will consider each provision of the State law in comparison with each corresponding provision in sections 701 and 702 of the Act, and not the State law as a whole in comparison with the Act as a whole.

(1) In order for provisions of State law to be substantially similar to, or provide greater protection to applicants than the provisions of sections 701 and 702 of the Act, the provisions of State law at least shall provide that:

(i) Definitions and rules of construction, as applicable, import the same meaning and have the same application as those prescribed by sections 701 and 702 of the Act.

(ii) Creditors provide all of the applicable notifications required by the provisions of sections 701 and 702 of the Act, with the content and in the terminology, form, and time periods prescribed by this Part pursuant to sections 701 and 702; however, required references to State law may be substituted for the references to Federal law required in this Part. Notification requirements under State law in additional circumstances or with additional detail that does

"Transactions within a State in which a Federally-chartered institution is a creditor shall not be considered subject to exemption, and such Federally-chartered creditors shall remain subject to the requirements of the Act and administrative enforcement by the appropriate Federal authority under section 704 of the Act, unless a State establishes to the satisfaction of the Board that appropriate arrangements have been made with such Federal authorities to assure effective enforcement of the requirements of State laws regarding such creditors.

"This subsection is not to be construed as indicating that the Board would consider adversely any additional requirements of State law that are not inconsistent with the purpose of the Act or the requirements imposed under sections 701 and 702 of the Act.

not frustrate any of the purpose may be determined by the Boar sistent with sections 701 and 701

(iii) Creditors take all affirma and abide by obligations substa lar to or more extensive than scribed by sections 701 and 702 under substantially similar or gent conditions and within th more stringent time periods a scribed in sections 701 and 702 of (iv) Creditors abide by the sa stringent prohibitions as are pr sections 701 and 702 of the Act.

(v) Obligations or responsibilit on applicants are no more cost) or burdensome relative to applic cising any of the rights or gainin fits of the protections provided i law than corresponding obligati sponsibilities imposed on applica tions 701 and 702 of the Act.

(vi) Applicants' rights and prot substantially similar to, or more than, those provided by sections 7 of the Act under conditions or w periods that are substantially sim more favorable to applicants th prescribed by sections 701 and 7 Act.

(2) In determining whether pro enforcement of the State law refe subsection (b)(1) of this supplemer quate, consideration will be give extent to which, under State law, is made for:

(i) Administrative enforcement, necessary facilities, personnel, and

(ii) Civil liability for a failure t with the requirements of such a that is substantially similar to, or tensive than, that provided unde 706 of the Act.

(iii) A statute of limitations for ci ity of substantially similar or long tion as that provided under sectio the Act; and

(iv) A scope of discovery relati creditor's credit granting standard: substantially similar to, or more e than, that provided under section the Act.

(d) Public notice of filing and 1 rule making. In connection with ar Ication that has been filed in acc with the requirements of subsect and (b) of this Supplement and f initial review of the application, a r such filing and proposed rule maki be published by the Board in the REGISTER, and a copy of such app shall be made available for examina interested persons during business h the Board and at the Federal Reserv for each Federal Reserve District in the State making the application is si

A period of time shall be allowed from the date of such publication for interested parties to submit written comments to the Board regarding that application.

(e) Exemption from requirements. If the Board determines on the basis of the information before it that, under the law of a State, a class of credit transactions is subject to requirements substantially similar to, or that provide greater protection to applicants than, those imposed under section 701 and 702 of the Act and that there is adequate provision for State enforcement, the Board will exempt the class of credit transactions in that State from the requirements of sections 701 and 702 of the Act in the following manner and subject to the following conditions:

(1) Notice of the exemption shall be published in the FEDERAL REGISTER, and the Board shall furnish a copy of such notice to the State official who made application for such exemption, to each Federal authority responsible for administrative enforcement of the requirements of sections 701 and 702 of the Act, and to the Attorney General of the United States. Additionally, the Board shall include any exemption granted in an appropriate listing in Supplement II to this Part. Any exemption granted shall be effective 90 days after the date of publication of such notice in the FEDERAL REGISTER.

(2) The appropriate official of any State that receives an exemption shall inform the Board in writing within 30 days of any change in the State laws referred to in subsections (b)(1) and (b)(3) of this supplement. The report of any such change shall contain copies of the full text of that change, together with statements setting forth the information and opinions regarding that change that are specified in subsections (b)(2) and (b)(4) of this supplement. The appropriate official of any State that has received such an exemption also shall file with the Board from time to time such reports as the Board may require.

(3) The Board shall inform the appropriate official of any State that receives such an exemption of any subsequent amendments of the Act (including the implementing provisions of this Part, the Board's formal interpretations, and interpretations or approvals issued by an authorized official or employee of the Federal Reserve System) that might necessitate the amendment of State law for the exemption to continue.

(4) No exemption shall extend to the administrative enforcement or civil liability provisions of sections 704 and 706 of the Act. After an exemption is granted, the requirements of the applicable State law shall constitute the requirements of sections 701 and 702 of the Act, except to the extent such State law imposes requirements not imposed by the Act or this Part.

(f) Adverse determination. (1) If, after publication of a notice in the FEDERAL REGISTER as provided under section (d) of this supplement, the Board finds on the basis of the information before it that it cannot make a favorable determination in connection with the application, the Board shall notify the appropriate State official of the facts upon which such findings are based and shall afford that State authority a reasonable opportunity to demonstrate or achieve compliance.

(2) If, after having afforded the State authority such opportunity to demonstrate or achieve compliance, the Board finds on the basis of the information before it that it still cannot make a favorable determination in connection with the application, the Board shall publish in the FEDERAL REGISTER a notice of its determination regarding the application and shall furnish a copy of such notice to the State official who made application for such exemption.

(g) Revocation of exemption. (1) The Board reserves the right to revoke any exemption granted under the provisions of this Supplement if at any time it determines that the State law does not, in fact, impose requirements that are substantially similar to, or that provide greater protection to applicants than, those imposed under sections 701 and 702 of the Act or that there is not, in fact, adequate provision for State enforcement.

(2) Before revoking any such exemption, the Board shall notify the appropriate State official of the facts or conduct that, in the Board's opinion, warrants such revocation, and shall afford that State such opportunity as the Board deems appropriate in the circumstances to demonstrate or achieve compliance.

(3) If, after having been afforded the opportunity to demonstrate or achieve compliance, the Board determines that the State has not done so, notice of the Board's intention to revoke such exemption shall be published as a notice of proposed rule making in the FEDERAL REGISTER. A period of time shall be allowed from the date of such publication for the Board to receive written comments from interested persons to submit written comments to the Board regarding the proposed rule making.

(4) If such exemption is revoked, notice of such revocation shall be published by the Board in the FEDERAL REGISTER, and a copy of such notice shall be furnished to the appropriate State official, to the Federal authorities responsible for enforcement of the requirements of the Act, and to the Attorney General of the United States. The revocation shall become effective, and the class of transactions affected within that State shall become subject to the requirements of sections 701 and 702 of the Act, 90 days

§ 203.1 Authority, purpose and scope.

(a) Authority. This regulation is issued by the Board of Governors of the Federal Reserve System pursuant to the Home Mortgage Disclosure Act of 1975, as amended (Title 12 U.S.C. 2801 through 2811).

(b) Purpose. The purpose of this regulation is to provide the public with loan data to determine whether depository institutions are serving the housing needs of the communities and neighborhoods in which they are located. The purpose is also to assist public officials in distributing public sector investments so as to attract private investment to neighborhoods where it is needed. This regulation is not intended to encourage unsound lending practices or the allocation of credit.

(c) Scope. This regulation applies to depository institutions that make federally related mortgage loans. It requires a covered depository institution to disclose loan data at certain of its offices and to report the data to its supervisory agency.

(d) Central data repositories. The act requires that the loan data be made available at central data repositories located within each standard metropolitan statistical area. It also

For the purposes of this reg the following definitions apply

(a) Act means the Home M Disclosure Act of 1975 (Title Public Law 94-200), as ame 1980 (Title III of Public Law codified in Title 12 U.S. through 2811.

(b) Branch office means an of proved as a branch of the de institution by its federal or s pervisory agency, but exclude tanding automated teller m and other electronic terminals.

(c) Depository institution m commercial bank, savings bar ings and loan association, build loan association, homestead ation (including a cooperative or credit union, that makes fe related mortgage loans.1 A ma

"Federally related mortgage loan any loan (other than temporary fi such as a construction loan) that

(i) Is secured by a first lien on res real property (including individual condominiums and cooperatives) tha signed principally for the occupancy 1 to 4 families and is located in a sta

(ii)(A) Is made in whole or in part || pository institution the deposits or a of which are insured by an agency federal government, or by a depositor tution that is regulated by an agency federal government; or

(B) Is made in whole or in part, o sured, guaranteed, supplemented or a in any way, by the Secretary of Housi Urban Development or any other off agency of the federal government or or in connection with a housing or url velopment program administered b such officer or agency; or

Co

owned non-depository subsidiary is deemed to be part of its parent depository institution for the purposes of this regulation. A majority-owned depository subsidiary may, at the parent depository institution's option, be treated as part of its parent or as a distinct entity.

Authority

(d) Federal Housing (FHA), Farmers Home Administration (FmHA), or Veterans Administration (VA) loans means mortgage loans insured under Title II of the National Housing Act or under Title V of the Housing Act of 1949 or guaranteed under Chapter 37 of Title 38 of the United States Code.

(e) Home improvement loan means any loan, including a refinancing, (i) whose proceeds, as stated by the borrower to the lender at the time of the loan application, are to be used for repairing, rehabilitating, or remodeling a residential dwelling located in a state; and (ii) that is recorded on the depository institution's books as a home improvement loan.2

(f) Home purchase loan means any loan, including a refinancing, secured by and made for the purpose of purchasing residential real property located in a state (including single-family homes, dwellings for from 2 to 4 families, other multi-family dwellings, and individual units of condominiums or cooperatives).3 The term does not include temporary financing (such as a bridge loan or a construction loan) or the purchase of an interest in a pool of mortgage loans (such as mortgage participation certificates issued guaranteed by the Federal Home Loan Morgage Corporation, the Government National Mortgage Association, or the Farmers Home Administration).

or

(C) Is intended to be sold by the depository institution that originates the loan to the Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or to a financial institution from which it is to be purchased by the Federal Home Loan Mortgage Corporation. 2See footnote 3.

'An institution may categorize a first-lien loan made for home improvement purposes as a home purchase loan if that is the manner in which it normally records firstlien loans.

(g) State means any state of the United States of America, the district of Columbia, and the Commonwealth of Puerto Rico.

§ 203.3 Exemptions.

(a) Asset size and location. A depository institution is exempt from all requirements of this regulation

(1) If its total assets on December 31 are $10,000,000 or less; or

(2) If it has neither a home office nor a branch office in a standard metropolitan statistical area (SMSA) as defined by the U.S. Department of Commerce.

(b) State law. A state-chartered depository institution is exempt from the requirements of this regulation if it is subject to state laws that contain, as determined by the Board in accordance with Appendix B, (1) requirements substantially similar to those imposed by this regulation, and (2) adequate provisions for enforcement. For purposes of data aggregation, however, an institution exempted under this paragraph shall submit the data required by the disclosure laws of its state to its state supervisory

agency.

(c) Change of status. (1) An institution that becomes subject to the requirements of this regulation shall compile loan data beginning with the calendar year following the year in which it becomes subject, except that:

(2) An institution that is exempt under § 203.3(b) and that subsequently loses its exemption shall compile loan data in compliance with this regulation beginning with the calendar year following the year for which it last reported loan data under the state disclosure law.

§ 203.4 Compilation of loan data.

(a) Data to be included. A depository institution shall compile data on the number and total dollar amount of

4 "Total dollar amount" means (i) the original principal amount of loans originated by the depository institution (to the extent of its ownership interest, when the loan is made jointly or cooperatively) and (ii) the unpaid balance of loans purchased by the depository institution (to the extent Continued

90-035 0-82--5

home purchase and home improvement loans that it originates and purchases, for each calendar year beginning with calendar year 1981.

(b) Format. The loan data shall be compiled separately for originations and purchases, using the form set forth in Appendix C, and shall be itemized as follows:

(1) Geographic itemization. The loan data shall be itemized by standard metropolitan statistical area (SMSA). Within each SMSA, the data shall be further itemized by the census tract in which the property to be purchased or improved is located, except that

(i) If the property is located in a county with a population 5 of 30,000 or less or in an area that has not been assigned census tracts, itemization by county shall be used instead of itemization by census tract.

(ii) If the property is located outside any SMSA, or is located in an SMSA in which the institution has neither a home nor a branch office, no itemization (by SMSA, county, or census tract) is required and the data for all such loans shall instead be listed as an aggregate sum.

(2) Type-of-loan itemization. The loan data within each geographic category described in paragraph (b)(1) of this section shall be further itemized as follows:

(i) FHA, FmHA, and VA loans on 1to-4 family dwellings;

(ii) Other home purchase (conventional) loans on 1-to-4 family dwellings;

(iii) Home improvement loans on 1to-4 family dwellings;

of its ownership interest in such purchased loans). For home improvement loans, whether originated or purchased, the amount to be reported may include unpaid finance charges.

5 The population is to be determined by reference to the "1980 Census of Population, NUMBER OF INHABITANTS, PC801-A" series prepared by the Bureau of the Census, U.S. Department of Commerce, Washington, D.C. 20233. Until this publication becomes available, county population shall be determined using the "1980 Census of Population and Housing, FINAL POPULATION AND HOUSING UNIT COUNTS (Advance Reports), PHC80-V" series, also prepared by the Bureau of the Census.

(c) Excluded data. A depository tution shall not disclose loan da

(1) Loans originated and pur by the depository institution act trustee or in some other fiducia pacity;

(2) Loans on unimproved land;

(3) Refinancings that the depo institution originates, if there is crease in the principal that is standing on the existing loan a time of the refinancing and if t stitution and the borrower ar same parties on the existing loa the refinancing.

(d) SMSAs and census tracts purposes of geographic itemizatio

(1) A depository institution sha the SMSA boundaries defined b U.S. Department of Commerce, V ington, D.C. 20233, as of the firs of the calendar year for which data are compiled.

(2) A depository institution shal the census tract numbers and bc aries on the census tract maps ir "1980 Census of Population and E ing, CENSUS TRACTS, PHC8 series prepared by the Bureau of Census. If a census tract numb duplicated within an SMSA, then census tract shall also be identifie county, city, or town name.

6 A depository institution may ass unless its records contain information to contrary, that a loan that it purchases not fall within this category.

'An institution may use either 197 1980 census tract boundaries in geoco loans in an SMSA until the 1980 cel tract outline maps for that SMSA bec available from the Bureau of the Census