82 FR 60673 - Home Mortgage Disclosure

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 245 (December 22, 2017)

The Board of Governors of the Federal Reserve System (Board) is repealing 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). 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. In December 2011, the Bureau published an interim final rule establishing its own Regulation C to implement HMDA, which superseded the Board's Regulation C. In October 2015, the Bureau revised its own Regulation C to expand and revise the data collection and reporting regime required under HMDA, as amended by the Dodd-Frank Act. In April 2016, the Bureau published a final rule adopting the December 2011 interim final rule, as revised by the October 2015 final rule. Accordingly, the Board is repealing its Regulation C and the Official Staff Commentary that accompanies the regulation.

[Federal Register Volume 82, Number 245 (Friday, December 22, 2017)]
[Rules and Regulations]
[Pages 60673-60674]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27491]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 82, No. 245 / Friday, December 22, 2017 / 
Rules and Regulations

[[Page 60673]]



FEDERAL RESERVE SYSTEM

12 CFR Part 203

[Regulation C; Docket No. R-1590]
RIN 7100 AE-92


Home Mortgage Disclosure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is repealing 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). 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. In December 2011, the Bureau published 
an interim final rule establishing its own Regulation C to implement 
HMDA, which superseded the Board's Regulation C. In October 2015, the 
Bureau revised its own Regulation C to expand and revise the data 
collection and reporting regime required under HMDA, as amended by the 
Dodd-Frank Act. In April 2016, the Bureau published a final rule 
adopting the December 2011 interim final rule, as revised by the 
October 2015 final rule. Accordingly, the Board is repealing its 
Regulation C and the Official Staff Commentary that accompanies the 
regulation.

DATES: The final rule is effective January 22, 2018.

FOR FURTHER INFORMATION CONTACT: Nikita M. Pastor, Senior 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\ In April 
2016, the Bureau published a final rule adopting the December 2011 
interim final rule, as revised by the October 2015 final rule. 
Accordingly, the Board is repealing its Regulation C and the Official 
Staff Commentary that accompanies the regulation.\3\
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    \1\ 12 CFR part 1003. See 76 FR 78465 (Dec. 19, 2011).
    \2\ See Home Mortgage Disclosure (Regulation C), 80 FR 66128 
(Oct. 28, 2015), as amended by 82 FR 43088 (Sept. 13, 2017).
    \3\ See 81 FR 25323 (April 28, 2016).
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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.\4\ 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.'' \5\ Thus, all rulemaking authority under HMDA concerning 
mortgage loan transactions was transferred to the Bureau. Accordingly, 
on February 22, 2016 (81 FR 8667), the Board published a proposal to 
repeal its Regulation C (Proposed Rule).
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    \4\ Dodd-Frank Act, Public Law 111-2033, Section 1029(f)(1).
    \5\ Dodd-Frank Act, Public Law 111-2033, Section 1029(b)(1).
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II. Discussion

    Two commenters responded to the proposed repeal of the Board's 
Regulation C. These commenters supported the Board's proposal to repeal 
its Regulation C in order to avoid confusion and simplify compliance. 
The Board is finalizing the repeal of Regulation C, as proposed.
    As discussed in the proposal, entities that are subject to HMDA 
must collect and report loan data to the appropriate federal agency on 
its housing-related 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.\6\ The Dodd-Frank

[[Page 60674]]

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, however, does not 
extend to residential or commercial mortgages or self-financing 
transactions involving real property.\7\ Thus, all rulemaking authority 
under HMDA, which pertains only to mortgage loan transactions, was 
transferred to the Bureau. The repeal of the Board's Regulation C, 12 
CFR part 203, also repeals the Official Staff Commentary that 
accompanies the regulations.
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    \6\ 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).
    \7\ 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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III. Final 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 final rule 
will not have a significant economic impact on a substantial number of 
small entities.
    1. Statement of the need for, and objectives of, the proposed rule. 
As noted above, 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. 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. In December 2011, the 
Bureau issued an Interim Final Rule to implement HMDA pursuant to the 
transfer of rulemaking authority, as amended further by final rules 
issued by the Bureau in October 2015, pursuant to the Dodd-Frank Act. 
Accordingly, the Board is repealing the Board's Regulation C, 12 CFR 
part 203, and the Official Staff Commentary that accompanies the 
regulation, which has been superseded by the final rules issued by the 
Bureau.
    2. Summary of issues raised by comments in response to the initial 
regulatory flexibility analysis. The Board did not receive any comments 
on the initial regulatory flexibility analysis.
    3. Small entities affected by the final 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 believes the repeal of 
its Regulation C will not affect any entity, including any small 
entity.
    4. Recordkeeping, reporting, and compliance requirements. The final 
rule repeals the Board's Regulation C, 12 CFR part 203, and therefore 
does not impose any recordkeeping, reporting, or compliance 
requirements on any entities.
    5. Significant alternatives to the final revisions. Because the 
repeal of Regulation C will have no impact, there are no alternatives 
that would further minimize the economic impact of the final rule on 
small entities.

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 final 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 final rule.

List of Subjects in 12 CFR Part 203

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

PART 203--[REMOVED AND RESERVED]

0
For the reasons set forth in the preamble, under the authority of 12 
U.S.C. 5581, the Board removes and reserves Regulation C, 12 CFR part 
203.

    By order of the Board of Governors of the Federal Reserve 
System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-27491 Filed 12-21-17; 8:45 am]
 BILLING CODE 6210-01-P