55734 Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations
1 82 FR 43910 (Sept. 20, 2017).
2 See 80 FR 66127 (Oct. 28, 2015), as amended by
82 FR 19142 (Aug. 24, 2017).
(1) On or before the acreage reporting
date, you may elect to insure all acreage
of the crop in the county in one
enterprise unit provided you meet the
requirements in section 34(a)(4), or your
unit division will be based on basic or
optional units, whichever you report on
your acreage report and qualify for; or
(2) At any time after the acreage
reporting date, your unit structure will
be one enterprise unit provided you
meet the requirements in section
34(a)(4). Otherwise, we will assign the
basic unit structure.
(D) If you elected an enterprise unit
on one practice (irrigated or non-
irrigated) and a different unit structure
on the other practice and we discover
you do not qualify for an enterprise unit
for the irrigated or non-irrigated practice
and such discovery is made:
(1) On or before the acreage reporting
date, your unit division will be based on
basic or optional units, whichever you
report on your acreage report and
qualify for; or
(2) At any time after the acreage
reporting date, we will assign the basic
unit structure.
* * * * *
Signed in Washington, DC, on November
16, 2017.
Heather Manzano,
Acting Manager, Federal Crop Insurance
Corporation.
[FR Doc. 2017–25330 Filed 11–22–17; 8:45 am]
BILLING CODE 3410–08–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 25 and 195
[Docket ID OCC–2017–0008]
RIN 1557–AE15
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Docket No. R–1574]
RIN 7100–AE84
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 345
RIN 3064–AE58
Community Reinvestment Act
Regulations
AGENCY: Office of the Comptroller of the
Currency, Treasury; Board of Governors
of the Federal Reserve System; and
Federal Deposit Insurance Corporation.
ACTION: Joint final rule.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), the Board of
Governors of the Federal Reserve
System (Board), and the Federal Deposit
Insurance Corporation (FDIC)
(collectively, the Agencies) are
amending their regulations
implementing the Community
Reinvestment Act (CRA). The Agencies
are modifying the existing definitions of
‘‘home mortgage loan’’ and ‘‘consumer
loan,’’ related cross references, and the
public file content requirements to
conform to recent revisions made by the
Consumer Financial Protection Bureau
(Bureau) to Regulation C, which
implements the Home Mortgage
Disclosure Act (HMDA). This final rule
also removes obsolete references to the
Neighborhood Stabilization Program
(NSP).
DATES: This rule is effective on January
1, 2018.
FOR FURTHER INFORMATION CONTACT:
OCC: Emily R. Boyes, Attorney,
Community and Consumer Law
Division, (202) 649–6350; Allison
Hester-Haddad, Counsel, Legislative and
Regulatory Activities Division, (202)
649–5490; for persons who are deaf or
hearing impaired, TTY, (202) 649–5597;
or Vonda J. Eanes, Director for CRA and
Fair Lending Policy, Compliance Risk
Policy Division, (202) 649–5470, Office
of the Comptroller of the Currency, 400
7th Street SW., Washington, DC 20219.
Board: Amal S. Patel, Senior
Supervisory Consumer Financial
Services Analyst, Division of Consumer
and Community Affairs, (202) 912–
7879; Cathy Gates, Senior Project
Manager, Division of Consumer and
Community Affairs, (202) 452–2099,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
FDIC: Patience R. Singleton, Senior
Policy Analyst, Supervisory Policy
Branch, Division of Depositor and
Consumer Protection, (202) 898–6859;
Sharon B. Vejvoda, Senior Examination
Specialist, Examination Branch,
Division of Depositor and Consumer
Protection, (202) 898–3881; Richard M.
Schwartz, Counsel, Legal Division, (202)
898–7424; or Sherry Ann Betancourt,
Counsel, Legal Division, (202) 898–
6560, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
The OCC, the Board, and the FDIC
implement the CRA (12 U.S.C. 2901 et
seq.) through their CRA regulations. See
12 CFR parts 25, 195, 228, and 345. The
CRA is designed to encourage regulated
financial institutions to help meet the
credit needs of the local communities in
which an institution is chartered. The
CRA regulations establish the
framework and criteria by which the
Agencies assess a financial institution’s
record of helping to meet the credit
needs of its community, including low-
and moderate-income neighborhoods,
consistent with safe and sound
operations. Under the CRA regulations,
the Agencies apply different evaluation
standards for financial institutions of
different asset sizes and types.
The Agencies also publish the
Interagency Questions and Answers
Regarding Community Reinvestment to
provide guidance on the interpretation
and application of the CRA regulations
to agency personnel, financial
institutions, and the public.
On September 20, 2017, the Agencies
published a joint notice of proposed
rulemaking to amend their regulations
implementing the CRA.1 The Agencies
proposed to amend the definitions of
‘‘home mortgage loan’’ and ‘‘consumer
loan’’ and the public file content
requirements to conform to revisions
made by the Bureau to its Regulation C,
which implements HMDA (2015 HMDA
Rule).2 The Agencies also proposed to
make technical amendments to remove
unnecessary cross references as a result
of the proposed amended definitions,
and to remove an obsolete reference to
the NSP. The comment period for the
Agencies’ joint proposed rulemaking
ended on October 20, 2017.
Together, the Agencies received two
comment letters on the proposed
amendments. One comment was from a
community organization and the other
from a financial institution. Both
commenters supported the changes
proposed by the Agencies. The
commenters also made additional
suggestions not related to the proposal.
These comments are explained in more
detail in the sections they relate to. As
explained below, the Agencies are
finalizing the amendments as proposed.
II. Amendments To Conform the CRA
Regulations to Recent Revisions to the
Bureau’s Regulation C
Definition of ‘‘Home Mortgage Loan’’
The CRA regulations specify the type
of lending and other activities that
examiners evaluate to assess a financial
institution’s CRA performance. The
regulations provide several categories of
VerDate Sep<11>2014 16:12 Nov 22, 2017 Jkt 244001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\24NOR1.SGM 24NOR1
sradovich on DSK3GMQ082PROD with RULES
1 82 FR 43910 (Sept. 20, 2017).
2 See 80 FR 66127 (Oct. 28, 2015), as amended by
82 FR 19142 (Aug. 24, 2017).
(1) On or before the acreage reporting
date, you may elect to insure all acreage
of the crop in the county in one
enterprise unit provided you meet the
requirements in section 34(a)(4), or your
unit division will be based on basic or
optional units, whichever you report on
your acreage report and qualify for; or
(2) At any time after the acreage
reporting date, your unit structure will
be one enterprise unit provided you
meet the requirements in section
34(a)(4). Otherwise, we will assign the
basic unit structure.
(D) If you elected an enterprise unit
on one practice (irrigated or non-
irrigated) and a different unit structure
on the other practice and we discover
you do not qualify for an enterprise unit
for the irrigated or non-irrigated practice
and such discovery is made:
(1) On or before the acreage reporting
date, your unit division will be based on
basic or optional units, whichever you
report on your acreage report and
qualify for; or
(2) At any time after the acreage
reporting date, we will assign the basic
unit structure.
* * * * *
Signed in Washington, DC, on November
16, 2017.
Heather Manzano,
Acting Manager, Federal Crop Insurance
Corporation.
[FR Doc. 2017–25330 Filed 11–22–17; 8:45 am]
BILLING CODE 3410–08–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 25 and 195
[Docket ID OCC–2017–0008]
RIN 1557–AE15
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Docket No. R–1574]
RIN 7100–AE84
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 345
RIN 3064–AE58
Community Reinvestment Act
Regulations
AGENCY: Office of the Comptroller of the
Currency, Treasury; Board of Governors
of the Federal Reserve System; and
Federal Deposit Insurance Corporation.
ACTION: Joint final rule.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), the Board of
Governors of the Federal Reserve
System (Board), and the Federal Deposit
Insurance Corporation (FDIC)
(collectively, the Agencies) are
amending their regulations
implementing the Community
Reinvestment Act (CRA). The Agencies
are modifying the existing definitions of
‘‘home mortgage loan’’ and ‘‘consumer
loan,’’ related cross references, and the
public file content requirements to
conform to recent revisions made by the
Consumer Financial Protection Bureau
(Bureau) to Regulation C, which
implements the Home Mortgage
Disclosure Act (HMDA). This final rule
also removes obsolete references to the
Neighborhood Stabilization Program
(NSP).
DATES: This rule is effective on January
1, 2018.
FOR FURTHER INFORMATION CONTACT:
OCC: Emily R. Boyes, Attorney,
Community and Consumer Law
Division, (202) 649–6350; Allison
Hester-Haddad, Counsel, Legislative and
Regulatory Activities Division, (202)
649–5490; for persons who are deaf or
hearing impaired, TTY, (202) 649–5597;
or Vonda J. Eanes, Director for CRA and
Fair Lending Policy, Compliance Risk
Policy Division, (202) 649–5470, Office
of the Comptroller of the Currency, 400
7th Street SW., Washington, DC 20219.
Board: Amal S. Patel, Senior
Supervisory Consumer Financial
Services Analyst, Division of Consumer
and Community Affairs, (202) 912–
7879; Cathy Gates, Senior Project
Manager, Division of Consumer and
Community Affairs, (202) 452–2099,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW., Washington,
DC 20551.
FDIC: Patience R. Singleton, Senior
Policy Analyst, Supervisory Policy
Branch, Division of Depositor and
Consumer Protection, (202) 898–6859;
Sharon B. Vejvoda, Senior Examination
Specialist, Examination Branch,
Division of Depositor and Consumer
Protection, (202) 898–3881; Richard M.
Schwartz, Counsel, Legal Division, (202)
898–7424; or Sherry Ann Betancourt,
Counsel, Legal Division, (202) 898–
6560, Federal Deposit Insurance
Corporation, 550 17th Street NW.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
The OCC, the Board, and the FDIC
implement the CRA (12 U.S.C. 2901 et
seq.) through their CRA regulations. See
12 CFR parts 25, 195, 228, and 345. The
CRA is designed to encourage regulated
financial institutions to help meet the
credit needs of the local communities in
which an institution is chartered. The
CRA regulations establish the
framework and criteria by which the
Agencies assess a financial institution’s
record of helping to meet the credit
needs of its community, including low-
and moderate-income neighborhoods,
consistent with safe and sound
operations. Under the CRA regulations,
the Agencies apply different evaluation
standards for financial institutions of
different asset sizes and types.
The Agencies also publish the
Interagency Questions and Answers
Regarding Community Reinvestment to
provide guidance on the interpretation
and application of the CRA regulations
to agency personnel, financial
institutions, and the public.
On September 20, 2017, the Agencies
published a joint notice of proposed
rulemaking to amend their regulations
implementing the CRA.1 The Agencies
proposed to amend the definitions of
‘‘home mortgage loan’’ and ‘‘consumer
loan’’ and the public file content
requirements to conform to revisions
made by the Bureau to its Regulation C,
which implements HMDA (2015 HMDA
Rule).2 The Agencies also proposed to
make technical amendments to remove
unnecessary cross references as a result
of the proposed amended definitions,
and to remove an obsolete reference to
the NSP. The comment period for the
Agencies’ joint proposed rulemaking
ended on October 20, 2017.
Together, the Agencies received two
comment letters on the proposed
amendments. One comment was from a
community organization and the other
from a financial institution. Both
commenters supported the changes
proposed by the Agencies. The
commenters also made additional
suggestions not related to the proposal.
These comments are explained in more
detail in the sections they relate to. As
explained below, the Agencies are
finalizing the amendments as proposed.
II. Amendments To Conform the CRA
Regulations to Recent Revisions to the
Bureau’s Regulation C
Definition of ‘‘Home Mortgage Loan’’
The CRA regulations specify the type
of lending and other activities that
examiners evaluate to assess a financial
institution’s CRA performance. The
regulations provide several categories of
VerDate Sep<11>2014 16:12 Nov 22, 2017 Jkt 244001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\24NOR1.SGM 24NOR1
sradovich on DSK3GMQ082PROD with RULES
55735Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations
3 Amended Regulation C retains existing
categories of excluded transactions, clarifies some
categories of excluded transactions, and expands
the existing exclusion for agricultural-purpose
transactions. Effective January 1, 2018, the
following transactions will not be reportable under
Regulation C:
1. A closed-end mortgage loan or open-end line
of credit originated or purchased by a financial
institution acting in a fiduciary capacity;
2. A closed-end mortgage loan or open-end line
of credit secured by a lien on unimproved land;
3. Temporary financing;
4. The purchase of an interest in a pool of closed-
end mortgage loans or open-end lines of credit;
5. The purchase solely of the right to service
closed-end mortgage loans or open-end lines of
credit;
6. The purchase of closed-end mortgage loans or
open-end lines of credit as part of a merger or
acquisition, or as part of the acquisition of all of the
assets and liabilities of a branch office as defined
in 12 CFR 1003.2(c);
7. A closed-end mortgage loan or open-end line
of credit, or an application of a closed-end mortgage
loan or open-end line of credit, for which the total
dollar amount is less than $500;
8. The purchase of a partial interest in a closed-
end mortgage loan or open-end line of credit;
9. A closed-end mortgage loan or open-end line
of credit used primarily for agricultural purposes;
10. A closed-end mortgage loan or open-end line
of credit that is or will be made primarily for a
business or commercial purpose, unless the closed-
end mortgage loan or open-end equity line of credit
is a home improvement loan under § 1003.2(i), a
home purchase under § 1003.2(j), or a refinancing
under § 1003.2(p);
11. A closed-end mortgage loan, if the financial
institution originated fewer than 25 closed-end
mortgage loans in either of the two preceding
calendar years; a financial institution may collect,
record, report, and disclose information, as
described in §§ 1003.4 and 1003.5, for such an
excluded closed-end mortgage loan as though it
were a covered loan, provided that the financial
institution complies with such requirements for all
applications for closed-end mortgage loans that it
receives, closed-end mortgage loans that it
originates, and closed-end mortgage loans that it
purchases that otherwise would have been covered
loans during the calendar year during which final
action is taken on the excluded closed-end
mortgage loan; or
12. An open-end equity line of credit, if the
financial institution originated fewer than 500
open-end equity lines of credit in either of the two
preceding calendar years; a financial institution
may collect, record, report, and disclose
information, as described in §§ 1003.4 and 1003.5,
for such an excluded open-end line of credit as
though it were a covered loan, provided that the
financial institution complies with such
requirements for all applications for open-end lines
of credit that it receives, open-end lines of credit
that it originates, and open-end lines of credit that
it purchases that otherwise would have been
covered loans during the calendar year during
which final action is taken on the excluded open-
end line of credit (the threshold of 500 open-end
lines of credit is temporary and applies only to
calendar years 2018 and 2019; absent action from
the Bureau, the threshold for reporting open-end
lines of credit reverts to 100 such lines effective
January 1, 2020); or
13. A transaction that provided or, in the case of
an application, proposed to provide new funds to
the applicant or borrower in advance of being
consolidated in a New York State consolidation,
extension, and modification agreement classified as
a supplemental mortgage under New York Tax Law
section 255; the transaction is excluded only if final
action on the consolidation was taken in the same
calendar year as final action on the new funds
transaction.
4 On September 13, 2017, the Bureau published
in the Federal Register a final rule (2017 HMDA
Rule) amending the 2015 HMDA Rule. The 2017
HMDA Rule finalizes a proposal issued by the
Bureau on April 25, 2017 (82 FR 19142) to address
technical errors, ease the burden associated with
certain reporting requirements, and to clarify some
key terms. The 2017 HMDA Rule also finalizes a
proposal issued by the Bureau on July 14, 2017 (82
FR 33455), to temporarily increase the institutional
and transactional coverage thresholds for open-end
lines of credit. See http://
files.consumerfinance.gov/f/documents/201708_
cfpb_final-rule_home-mortgage-disclosure_
regulation-c.pdf. The 2017 HMDA Rule adds a new
exclusion from reporting HMDA data for certain
transactions concerning New York consolidation,
extension, and modification agreements (also
known as NY CEMAs) under new § 1003.3(c)(13).
loans that may be evaluated to
determine a financial institution’s
performance under the retail lending
test, one of which is home mortgage
loans. 12 CFR ll.22. The current CRA
regulations define a ‘‘home mortgage
loan’’ to mean a ‘‘home improvement
loan,’’ ‘‘home purchase loan,’’ or a
‘‘refinancing’’ as those terms are
currently defined in 12 CFR 1003.2 of
the Bureau’s Regulation C. 12 CFR l
l.12(l). However, effective January 1,
2018, the 2015 HMDA Rule revises the
scope of loans reportable under
Regulation C. In some cases, the revised
scope of loans under Regulation C is
broader, and in other cases more
limited. Effective January 1, 2018,
Regulation C will require covered
financial institutions to report
applications for, and originations and
purchases of, ‘‘covered loans’’ that are
secured by a dwelling. A ‘‘covered loan’’
is defined in 12 CFR 1003.2(e) to mean
a closed-end mortgage loan, as defined
in § 1003.2(d), or an open-end line of
credit, as defined in § 1003.2(o), that is
not an excluded transaction under 12
CFR 1003.3(c).3
To conform the CRA definition of
‘‘home mortgage loan’’ to the revisions
in Regulation C that will become
effective on January 1, 2018, the
Agencies proposed to revise the current
definition of ‘‘home mortgage loan’’ in
their CRA regulations to mean a
‘‘closed-end mortgage loan’’ or an
‘‘open-end line of credit,’’ as those terms
are defined under new 12 CFR 1003.2(d)
and (o), respectively, and as may be
amended from time to time, and that is
not an excluded transaction under new
12 CFR 1003.3(c)(1)–(10) and (13), as
may be amended from time to time.4
As a result of the revisions to the
‘‘home mortgage loan’’ definition, the
manner in which some loan transactions
are considered under CRA will be
affected. As the Agencies explained in
the proposed rule, effective January 1,
2018, home improvement loans that are
not secured by a dwelling, which are
currently required to be reported under
Regulation C, will no longer be
reportable transactions under the 2015
HMDA Rule. Therefore, also effective
January 1, 2018, for purposes of CRA,
home improvement loans that are not
secured by a dwelling may be
considered at the option of the financial
institution. A financial institution that
opts to have its home improvement
loans considered would need to collect
and maintain data on these loans in
machine-readable form under the
category of ‘‘other secured consumer
loan’’ or ‘‘other unsecured consumer
loan,’’ as appropriate. See 12 CFR
ll.12(j)(3) or (4). Notwithstanding an
institution’s option, home improvement
loans that are not secured by a dwelling
may still be evaluated by the Agencies
under the lending test set out under 12
CFR ll.22(a)(1), in circumstances
where consumer lending is so
significant a portion of an institution’s
lending by activity and dollar volume of
loans that the lending test evaluation
would not meaningfully reflect lending
performance if consumer loans were
excluded.
Home equity lines of credit secured
by a dwelling, which are currently
reported at the option of the financial
institution under Regulation C, will be
covered loans under the 2015 HMDA
Rule. Effective January 1, 2018, financial
institutions that meet the reporting
requirements under the 2015 HMDA
Rule will be required to collect,
maintain, and report data on home
equity lines of credit secured by a
dwelling. For purposes of CRA
consideration, in the case of financial
institutions that report closed-end
mortgage loans and/or home equity
lines of credit under the 2015 HMDA
Rule, those loans would be considered
as home mortgage loans under the
amended definition of ‘‘home mortgage
loan.’’ The effect of this revision to the
home mortgage loan definition will vary
depending upon the amount and
characteristics of the financial
institution’s mortgage loan portfolio. As
with all aspects of an institution’s CRA
performance evaluation, the
performance context of the institution
will affect how the Agencies will
consider home equity lines of credit. For
financial institutions that would not be
required to report these transactions
under Regulation C, examiners may
review the relevant files and consider
these loans for CRA performance on a
sampling basis under the home
mortgage loan category.
The Agencies received one comment
addressing the proposed revision. This
commenter supported amending the
VerDate Sep<11>2014 16:12 Nov 22, 2017 Jkt 244001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\24NOR1.SGM 24NOR1
sradovich on DSK3GMQ082PROD with RULES
3 Amended Regulation C retains existing
categories of excluded transactions, clarifies some
categories of excluded transactions, and expands
the existing exclusion for agricultural-purpose
transactions. Effective January 1, 2018, the
following transactions will not be reportable under
Regulation C:
1. A closed-end mortgage loan or open-end line
of credit originated or purchased by a financial
institution acting in a fiduciary capacity;
2. A closed-end mortgage loan or open-end line
of credit secured by a lien on unimproved land;
3. Temporary financing;
4. The purchase of an interest in a pool of closed-
end mortgage loans or open-end lines of credit;
5. The purchase solely of the right to service
closed-end mortgage loans or open-end lines of
credit;
6. The purchase of closed-end mortgage loans or
open-end lines of credit as part of a merger or
acquisition, or as part of the acquisition of all of the
assets and liabilities of a branch office as defined
in 12 CFR 1003.2(c);
7. A closed-end mortgage loan or open-end line
of credit, or an application of a closed-end mortgage
loan or open-end line of credit, for which the total
dollar amount is less than $500;
8. The purchase of a partial interest in a closed-
end mortgage loan or open-end line of credit;
9. A closed-end mortgage loan or open-end line
of credit used primarily for agricultural purposes;
10. A closed-end mortgage loan or open-end line
of credit that is or will be made primarily for a
business or commercial purpose, unless the closed-
end mortgage loan or open-end equity line of credit
is a home improvement loan under § 1003.2(i), a
home purchase under § 1003.2(j), or a refinancing
under § 1003.2(p);
11. A closed-end mortgage loan, if the financial
institution originated fewer than 25 closed-end
mortgage loans in either of the two preceding
calendar years; a financial institution may collect,
record, report, and disclose information, as
described in §§ 1003.4 and 1003.5, for such an
excluded closed-end mortgage loan as though it
were a covered loan, provided that the financial
institution complies with such requirements for all
applications for closed-end mortgage loans that it
receives, closed-end mortgage loans that it
originates, and closed-end mortgage loans that it
purchases that otherwise would have been covered
loans during the calendar year during which final
action is taken on the excluded closed-end
mortgage loan; or
12. An open-end equity line of credit, if the
financial institution originated fewer than 500
open-end equity lines of credit in either of the two
preceding calendar years; a financial institution
may collect, record, report, and disclose
information, as described in §§ 1003.4 and 1003.5,
for such an excluded open-end line of credit as
though it were a covered loan, provided that the
financial institution complies with such
requirements for all applications for open-end lines
of credit that it receives, open-end lines of credit
that it originates, and open-end lines of credit that
it purchases that otherwise would have been
covered loans during the calendar year during
which final action is taken on the excluded open-
end line of credit (the threshold of 500 open-end
lines of credit is temporary and applies only to
calendar years 2018 and 2019; absent action from
the Bureau, the threshold for reporting open-end
lines of credit reverts to 100 such lines effective
January 1, 2020); or
13. A transaction that provided or, in the case of
an application, proposed to provide new funds to
the applicant or borrower in advance of being
consolidated in a New York State consolidation,
extension, and modification agreement classified as
a supplemental mortgage under New York Tax Law
section 255; the transaction is excluded only if final
action on the consolidation was taken in the same
calendar year as final action on the new funds
transaction.
4 On September 13, 2017, the Bureau published
in the Federal Register a final rule (2017 HMDA
Rule) amending the 2015 HMDA Rule. The 2017
HMDA Rule finalizes a proposal issued by the
Bureau on April 25, 2017 (82 FR 19142) to address
technical errors, ease the burden associated with
certain reporting requirements, and to clarify some
key terms. The 2017 HMDA Rule also finalizes a
proposal issued by the Bureau on July 14, 2017 (82
FR 33455), to temporarily increase the institutional
and transactional coverage thresholds for open-end
lines of credit. See http://
files.consumerfinance.gov/f/documents/201708_
cfpb_final-rule_home-mortgage-disclosure_
regulation-c.pdf. The 2017 HMDA Rule adds a new
exclusion from reporting HMDA data for certain
transactions concerning New York consolidation,
extension, and modification agreements (also
known as NY CEMAs) under new § 1003.3(c)(13).
loans that may be evaluated to
determine a financial institution’s
performance under the retail lending
test, one of which is home mortgage
loans. 12 CFR ll.22. The current CRA
regulations define a ‘‘home mortgage
loan’’ to mean a ‘‘home improvement
loan,’’ ‘‘home purchase loan,’’ or a
‘‘refinancing’’ as those terms are
currently defined in 12 CFR 1003.2 of
the Bureau’s Regulation C. 12 CFR l
l.12(l). However, effective January 1,
2018, the 2015 HMDA Rule revises the
scope of loans reportable under
Regulation C. In some cases, the revised
scope of loans under Regulation C is
broader, and in other cases more
limited. Effective January 1, 2018,
Regulation C will require covered
financial institutions to report
applications for, and originations and
purchases of, ‘‘covered loans’’ that are
secured by a dwelling. A ‘‘covered loan’’
is defined in 12 CFR 1003.2(e) to mean
a closed-end mortgage loan, as defined
in § 1003.2(d), or an open-end line of
credit, as defined in § 1003.2(o), that is
not an excluded transaction under 12
CFR 1003.3(c).3
To conform the CRA definition of
‘‘home mortgage loan’’ to the revisions
in Regulation C that will become
effective on January 1, 2018, the
Agencies proposed to revise the current
definition of ‘‘home mortgage loan’’ in
their CRA regulations to mean a
‘‘closed-end mortgage loan’’ or an
‘‘open-end line of credit,’’ as those terms
are defined under new 12 CFR 1003.2(d)
and (o), respectively, and as may be
amended from time to time, and that is
not an excluded transaction under new
12 CFR 1003.3(c)(1)–(10) and (13), as
may be amended from time to time.4
As a result of the revisions to the
‘‘home mortgage loan’’ definition, the
manner in which some loan transactions
are considered under CRA will be
affected. As the Agencies explained in
the proposed rule, effective January 1,
2018, home improvement loans that are
not secured by a dwelling, which are
currently required to be reported under
Regulation C, will no longer be
reportable transactions under the 2015
HMDA Rule. Therefore, also effective
January 1, 2018, for purposes of CRA,
home improvement loans that are not
secured by a dwelling may be
considered at the option of the financial
institution. A financial institution that
opts to have its home improvement
loans considered would need to collect
and maintain data on these loans in
machine-readable form under the
category of ‘‘other secured consumer
loan’’ or ‘‘other unsecured consumer
loan,’’ as appropriate. See 12 CFR
ll.12(j)(3) or (4). Notwithstanding an
institution’s option, home improvement
loans that are not secured by a dwelling
may still be evaluated by the Agencies
under the lending test set out under 12
CFR ll.22(a)(1), in circumstances
where consumer lending is so
significant a portion of an institution’s
lending by activity and dollar volume of
loans that the lending test evaluation
would not meaningfully reflect lending
performance if consumer loans were
excluded.
Home equity lines of credit secured
by a dwelling, which are currently
reported at the option of the financial
institution under Regulation C, will be
covered loans under the 2015 HMDA
Rule. Effective January 1, 2018, financial
institutions that meet the reporting
requirements under the 2015 HMDA
Rule will be required to collect,
maintain, and report data on home
equity lines of credit secured by a
dwelling. For purposes of CRA
consideration, in the case of financial
institutions that report closed-end
mortgage loans and/or home equity
lines of credit under the 2015 HMDA
Rule, those loans would be considered
as home mortgage loans under the
amended definition of ‘‘home mortgage
loan.’’ The effect of this revision to the
home mortgage loan definition will vary
depending upon the amount and
characteristics of the financial
institution’s mortgage loan portfolio. As
with all aspects of an institution’s CRA
performance evaluation, the
performance context of the institution
will affect how the Agencies will
consider home equity lines of credit. For
financial institutions that would not be
required to report these transactions
under Regulation C, examiners may
review the relevant files and consider
these loans for CRA performance on a
sampling basis under the home
mortgage loan category.
The Agencies received one comment
addressing the proposed revision. This
commenter supported amending the
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