81 FR 8667 - Regulation C Home Mortgage Disclosure

FEDERAL RESERVE SYSTEM

Federal Register Volume 81, Issue 34 (February 22, 2016)

Page Range		8667-8668
FR Document		2016-03229

The Board of Governors of the Federal Reserve System (Board) is proposing to repeal its Regulation C, which was issued to implement the Home Mortgage Disclosure Act (HMDA). Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority for a number of consumer financial protection laws, including HMDA, from the Board to the Bureau of Consumer Financial Protection (Bureau). In December 2011, the Bureau published an interim final rule establishing its own Regulation C to implement HMDA, which substantially duplicated the Board's Regulation C. In October 2015, the Bureau finalized the interim final rule and expanded and revised its Regulation C, pursuant to the Dodd-Frank Act. HMDA requires covered financial institutions to collect and report loan data in connection with residential mortgage applications and loans. Although the Board retains authority to issue some consumer financial protection rules, all rulemaking authority under HMDA concerning mortgage loan transactions was transferred to the Bureau. Accordingly, the Board is proposing to repeal its Regulation C and the Official Staff Commentary that accompanies the regulation.

Federal Register, Volume 81 Issue 34 (Monday, February 22, 2016)

[Federal Register Volume 81, Number 34 (Monday, February 22, 2016)]
[Proposed Rules]
[Pages 8667-8668]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03229]


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FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Docket No. R-1532]
RIN 7100 AE-46


Regulation C Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of proposed rulemaking; request for public comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is proposing to repeal its Regulation C, which was issued to implement 
the Home Mortgage Disclosure Act (HMDA). Title X of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred 
rulemaking authority for a number of consumer financial protection 
laws, including HMDA, from the Board to the Bureau of Consumer 
Financial Protection (Bureau). In December 2011, the Bureau published 
an interim final rule establishing its own Regulation C to implement 
HMDA, which substantially duplicated the Board's Regulation C. In 
October 2015, the Bureau finalized the interim final rule and expanded 
and revised its Regulation C, pursuant to the Dodd-Frank Act.
    HMDA requires covered financial institutions to collect and report 
loan data in connection with residential mortgage applications and 
loans. Although the Board retains authority to issue some consumer 
financial protection rules, all rulemaking authority under HMDA 
concerning mortgage loan transactions was transferred to the Bureau. 
Accordingly, the Board is proposing to repeal its Regulation C and the 
Official Staff Commentary that accompanies the regulation.

DATES: Comments must be received on or before April 27, 2016.

ADDRESSES: You may submit comments, identified by Docket No. R-1532 and 
RIN 7100 AE-46, by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the 
docket number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper form in Room MP-500 of the Board's Martin Building (20th and C 
Streets, NW.) between 9:00 a.m. and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Nikita M. Pastor, Counsel, Division of 
Consumer and Community Affairs, at (202) 452-3667, Board of Governors 
of the Federal Reserve System, 20th and C Streets NW., Washington, DC 
20551. For users of Telecommunications Device for the Deaf (TDD) only, 
contact (202) 263-4869.

SUPPLEMENTARY INFORMATION:

I. Background

    The Home Mortgage Disclosure Act (HMDA), 12 U.S.C. 2801 et seq., 
historically was implemented by the Board's Regulation C, published at 
12 CFR part 203. The purpose of the act and regulation is to provide 
the public with sufficient information about mortgage loans to 
determine whether financial institutions are serving the housing credit 
needs of their communities; encourage private investments to areas in 
need; and collect and report applicant and borrower characteristic data 
to identify potential lending discrimination. Accordingly, HMDA 
requires covered financial institutions to report loan data in 
connection with mortgage loan applications.
    Title X of the Dodd-Frank Act transferred rulemaking authority for 
a number of consumer financial protection laws from the Board to the 
Bureau, effective July 21, 2011, with some exceptions. In connection 
with the transfer of the Board's rulemaking authority for HMDA, the 
Bureau published an interim final rule to establish its own Regulation 
C, 12 CFR part 1003, to implement HMDA (Bureau Interim Final Rule).\1\ 
In October 2015, the Bureau finalized its own Regulation C, including 
rules that expand and revise the data collection and reporting regime 
required under HMDA, as amended by the Dodd-Frank Act.\2\
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    \1\ 76 FR 78465 (Dec. 19, 2011).
    \2\ See Home Mortgage Disclosure (Regulation C), 80 FR 66128 
(Oct. 28, 2015).
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    Under Section 1029(a) of the Dodd-Frank Act, the Board generally 
retains authority to issue rules for certain motor vehicle dealers that 
are predominantly engaged in the sale and servicing of motor vehicles, 
the leasing and servicing of motor vehicles, or both. For purposes of 
Section 1029, a ``motor vehicle'' is defined to include, among other 
things, motor homes, recreational vehicle trailers (RVs) and 
recreational boats.\3\ The Dodd-Frank Act also provided several 
exceptions to the Board's rulemaking authority over motor vehicle 
dealers. Specifically, Section 1029(b)(1) of the Dodd-Frank Act 
provides that the Board's rulemaking authority does not apply to any 
motor vehicle dealer to the extent that the motor vehicle dealer 
``provides consumers with any services related to residential or 
commercial mortgages or self-financing transactions involving real 
property.'' \4\ Accordingly, all rulemaking authority under HMDA 
concerning mortgage loan transactions was transferred to the Bureau.
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    \3\ Dodd-Frank Act, Public Law 111-2033, Section 1029(f)(1).
    \4\ Dodd-Frank Act, Public Law 111-2033, Section 1029(b)(1).
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II. Discussion

    HMDA and Regulation C apply to covered financial institutions. For 
this purpose, financial institutions include depository institutions, 
such as a bank, savings institution, or credit union that meet certain 
coverage tests. Financial institutions also include non-depository, 
mortgage lending institutions that have an office in a metropolitan 
statistical area and meet certain asset and home lending thresholds. 
See 12 U.S.C. 2802; 12 CFR 203.2 and 12 CFR 1003.2. Entities that are 
subject to HMDA must collect and report loan data to the appropriate 
federal agency on its housing-related

[[Page 8668]]

loan activities (i.e., mortgage loan applications). HMDA's requirements 
concerning mortgage loans were implemented in Regulation C to apply to 
home purchase loans secured by a dwelling (or refinancings) and home 
improvement loans.\5\
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    \5\ Regulation C covers loans secured by a ``dwelling,'' which 
is defined as any residential structure, whether or not it is 
attached to real property, which would include mobile homes or 
manufactured homes. 12 CFR 1003.2. Under the Bureau's 2015 final 
rule, however, recreational vehicles used as a residence are not 
covered as dwellings for purposes of HMDA. See 80 FR 66128, 66145 
(Oct. 28, 2015).
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    As noted above, the Dodd-Frank Act transferred the Board's 
rulemaking authority under HMDA and other enumerated consumer 
protection laws to the Bureau, but Section 1029 of the Dodd-Frank Act 
also preserved the Board's rulemaking authority over certain motor 
vehicle dealers, with some exceptions. The rulemaking authority 
retained by the Board under Section 1029 does not extend to residential 
or commercial mortgages or self-financing transactions involving real 
property.\6\ Thus, all rulemaking authority under HMDA, which pertains 
only to mortgage loan transactions, was transferred to the Bureau. 
Consequently, the Board is publishing a proposal to repeal the Board's 
Regulation C, 12 CFR part 203.
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    \6\ Section 1029(b)(1) of the Dodd-Frank Act states: Subsection 
(a) shall not apply to any person, to the extent such person (1) 
provides consumers with any services related to residential or 
commercial mortgages or self-financing transaction involving real 
property. . . .'' 12 U.S.C. 5519(b).
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    The Board requests comment on any technical issues raised by the 
proposed repeal of the Board's Regulation C.

III. Initial Regulatory Flexibility Analysis

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA) 
generally requires an agency to perform an assessment of the impact a 
rule is expected to have on small entities. Based on its analysis, and 
for the reasons stated below, the Board believes that this proposed 
rule will not have a significant economic impact on a substantial 
number of small entities. A final regulatory flexibility analysis will 
be conducted after consideration of comments received during the public 
comment period.
    1. Statement of the need for, and objectives of, the proposed rule. 
Title X of the Dodd-Frank Act transferred rulemaking authority for HMDA 
and other enumerated consumer financial protection laws from the Board 
to the Bureau, effective July 21, 2011. In December 2011, the Bureau 
issued an Interim Final Rule to implement HMDA pursuant to the transfer 
of rulemaking authority. Although the Board retains authority to issue 
some consumer financial protection rules, all rulemaking authority 
under HMDA concerning mortgage loan transactions was transferred to the 
Bureau. Consequently, the Board is proposing to repeal the Board's 
Regulation C, 12 CFR part 203.
    2. Small entities affected by the proposed rule. Any entity that is 
currently covered by HMDA is subject to the rules issued by the Bureau, 
located in 12 CFR part 1003. Therefore the Board's repeal of its 
Regulation C would not affect any entity, including small entities.
    3. Recordkeeping, reporting, and compliance requirements. The 
proposed rule would repeal the Board's Regulation C, 12 CFR part 203, 
and would therefore not impose any recordkeeping, reporting, or 
compliance requirements on any entities.
    4. Other federal rules. The Board has not identified any federal 
rules that duplicate, overlap, or conflict with the proposed repeal of 
the Board's Regulation C, 12 CFR part 203.
    5. Significant alternatives to the proposed revisions. The Board is 
not aware of any significant alternatives that would further minimize 
the impact on small entities of the proposed repeal, but solicits 
comment on this approach.

IV. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (PRA) of 1995 (44 
U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board reviewed the rule 
under the authority delegated to the Federal Reserve by the Office of 
Management and Budget (OMB). The proposed rule contains no collections 
of information under the PRA. See 44 U.S.C. 3502(3). Accordingly, there 
is no paperwork burden associated with the proposed rule.

List of Subjects in 12 CFR Part 203

    Banks, Banking, Federal Reserve System, Mortgages, and Reporting 
and recordkeeping requirements.

Authority and Issuance

    For the reasons set forth in the preamble, the Board proposes to 
amend Regulation C, 12 CFR part 203, and the Official Staff Commentary, 
as set forth below:

PART 203--HOME MORTGAGE DISCLOSURE (REGULATION C)

0
1. Part 203 is removed and reserved.

    By order of the Board of Governors of the Federal Reserve 
System, February 11, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-03229 Filed 2-19-16; 8:45 am]
 BILLING CODE P

8668 Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Proposed Rules

loan activities (i.e., mortgage loan authority. Although the Board retains By order of the Board of Governors of the
applications). HMDA’s requirements authority to issue some consumer Federal Reserve System, February 11, 2016.
concerning mortgage loans were financial protection rules, all Robert deV. Frierson,
implemented in Regulation C to apply rulemaking authority under HMDA Secretary of the Board.
to home purchase loans secured by a concerning mortgage loan transactions [FR Doc. 2016–03229 Filed 2–19–16; 8:45 am]
dwelling (or refinancings) and home was transferred to the Bureau. BILLING CODE P
improvement loans.5 Consequently, the Board is proposing to
As noted above, the Dodd-Frank Act repeal the Board’s Regulation C, 12 CFR
transferred the Board’s rulemaking part 203.
authority under HMDA and other DEPARTMENT OF TRANSPORTATION
2. Small entities affected by the
enumerated consumer protection laws Federal Aviation Administration
proposed rule. Any entity that is
to the Bureau, but Section 1029 of the
currently covered by HMDA is subject
Dodd-Frank Act also preserved the 14 CFR Part 39
to the rules issued by the Bureau,
Board’s rulemaking authority over
located in 12 CFR part 1003. Therefore
certain motor vehicle dealers, with some [Docket No. FAA–2016–3698; Directorate
exceptions. The rulemaking authority the Board’s repeal of its Regulation C Identifier 2015–NM–138–AD]
retained by the Board under Section would not affect any entity, including
1029 does not extend to residential or small entities. RIN 2120–AA64
commercial mortgages or self-financing 3. Recordkeeping, reporting, and Airworthiness Directives; The Boeing
transactions involving real property.6 compliance requirements. The proposed Company Airplanes
Thus, all rulemaking authority under rule would repeal the Board’s
HMDA, which pertains only to mortgage Regulation C, 12 CFR part 203, and AGENCY: Federal Aviation
loan transactions, was transferred to the would therefore not impose any Administration (FAA), DOT.
Bureau. Consequently, the Board is recordkeeping, reporting, or compliance ACTION: Notice of proposed rulemaking
publishing a proposal to repeal the requirements on any entities. (NPRM).
Board’s Regulation C, 12 CFR part 203. 4. Other federal rules. The Board has
The Board requests comment on any not identified any federal rules that SUMMARY: We propose to adopt a new
technical issues raised by the proposed duplicate, overlap, or conflict with the airworthiness directive (AD) for certain
repeal of the Board’s Regulation C. proposed repeal of the Board’s The Boeing Company Model 767–200
Regulation C, 12 CFR part 203. and –300 series airplanes. This
III. Initial Regulatory Flexibility
Analysis proposed AD was prompted by an
5. Significant alternatives to the evaluation by the design approval
The Regulatory Flexibility Act (5 proposed revisions. The Board is not holder (DAH) indicating that the aft
U.S.C. 601 et seq.) (RFA) generally aware of any significant alternatives that pressure bulkhead at a certain area is
requires an agency to perform an would further minimize the impact on subject to widespread fatigue damage
assessment of the impact a rule is small entities of the proposed repeal, (WFD). This proposed AD would
expected to have on small entities. but solicits comment on this approach. require replacing the aft pressure
Based on its analysis, and for the bulkhead with a new, improved aft
reasons stated below, the Board believes IV. Paperwork Reduction Act
pressure bulkhead, and doing related
that this proposed rule will not have a In accordance with the Paperwork investigative and corrective actions if
significant economic impact on a Reduction Act (PRA) of 1995 (44 U.S.C. necessary. We are proposing this AD to
substantial number of small entities. A 3506; 5 CFR 1320 Appendix A.1), the prevent fatigue cracking in the radial
final regulatory flexibility analysis will Board reviewed the rule under the web lap splices of the aft pressure
be conducted after consideration of authority delegated to the Federal bulkhead. Such cracking could result in
comments received during the public Reserve by the Office of Management rapid decompression and consequent
comment period. and Budget (OMB). The proposed rule reduced structural integrity of the
1. Statement of the need for, and contains no collections of information airplane.
objectives of, the proposed rule. Title X under the PRA. See 44 U.S.C. 3502(3).
of the Dodd-Frank Act transferred DATES: We must receive comments on
Accordingly, there is no paperwork this proposed AD by April 7, 2016.
rulemaking authority for HMDA and
burden associated with the proposed
other enumerated consumer financial ADDRESSES: You may send comments,
rule.
protection laws from the Board to the using the procedures found in 14 CFR
Bureau, effective July 21, 2011. In List of Subjects in 12 CFR Part 203 11.43 and 11.45, by any of the following
December 2011, the Bureau issued an methods:
Interim Final Rule to implement HMDA Banks, Banking, Federal Reserve • Federal eRulemaking Portal: Go to
pursuant to the transfer of rulemaking System, Mortgages, and Reporting and http://www.regulations.gov. Follow the
recordkeeping requirements. instructions for submitting comments.
5 Regulation C covers loans secured by a
Authority and Issuance • Fax: 202–493–2251.
‘‘dwelling,’’ which is defined as any residential
structure, whether or not it is attached to real
• Mail: U.S. Department of
property, which would include mobile homes or For the reasons set forth in the Transportation, Docket Operations, M–
manufactured homes. 12 CFR 1003.2. Under the preamble, the Board proposes to amend 30, West Building Ground Floor, Room
Lhorne on DSK5TPTVN1PROD with PROPOSALS

Bureau’s 2015 final rule, however, recreational Regulation C, 12 CFR part 203, and the W12–140, 1200 New Jersey Avenue SE.,
vehicles used as a residence are not covered as
dwellings for purposes of HMDA. See 80 FR 66128, Official Staff Commentary, as set forth Washington, DC 20590.
66145 (Oct. 28, 2015). below: • Hand Delivery: Deliver to Mail
6 Section 1029(b)(1) of the Dodd-Frank Act states: address above between 9 a.m. and 5
Subsection (a) shall not apply to any person, to the PART 203—HOME MORTGAGE p.m., Monday through Friday, except
extent such person (1) provides consumers with any DISCLOSURE (REGULATION C)
services related to residential or commercial
Federal holidays.
mortgages or self-financing transaction involving For service information identified in
real property. . . .’’ 12 U.S.C. 5519(b). ■ 1. Part 203 is removed and reserved. this NPRM, contact Boeing Commercial

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Document Created: 2016-02-19 23:56:50
Document Modified: 2016-02-19 23:56:50

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of proposed rulemaking; request for public comment.
Dates		Comments must be received on or before April 27, 2016.
Contact		Nikita M. Pastor, Counsel, Division of Consumer and Community Affairs, at (202) 452-3667, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263-4869.
FR Citation		81 FR 8667
RIN Number		7100 AE46
CFR Associated		Banks; Banking; Federal Reserve System; Mortgages and Reporting and Recordkeeping Requirements