OCC 94-36	
OCC Bulletin

Subject:      Fair Housing Home Loan Data System
Description:  Final Rule

Date:         May 31, 1994

To:  Chief Executive Officers and Compliance Officers of all National Banks, 
     Department and Division Heads, and all Examining Personnel

This issuance announces the Office of the Comptroller of the Currency’s (OCC) 
final rule, published in the Federal Register on May 20, 1994, which eliminates 
a duplicative recordkeeping requirement on home mortgage lending.  A copy of 
the Federal Register notice is attached.

The final rule will eliminate the need for a national bank subject to the Home
Mortgage Disclosure Act (HMDA) to also maintain home mortgage loan information
under the Fair Housing Home Loan Data System (FHHLDS).  HMDA reporting is 
required for national banks with total assets exceeding $10 million that 
originate mortgage loans and have a main office or branch located in a 
metropolitan statistical area (MSA).  FHHLDS recordkeeping applies to national 
banks with 50 or more home loan applications annually.

National banks subject to the FHHLDS but not the HMDA will have an option to 
maintain home loan information under either the FHHLDS or the HMDA loan/
application register (HMDA-LAR).  All national banks will be required to update 
the information within 30 calendar days after the end of each calendar quarter.  
The OCC had proposed monthly updates but changed the final rule to quarterly 
updates in response to commenter concerns about the burden of monthly updates.

To assist OCC’s efforts to detect lending discrimination, national banks subject 
to HMDA will also be required to record the reason(s) for denying a mortgage 
loan application on HMDA-LARs and to report their completed HMDA-LARs in 
accordance with the reporting requirement of Regulation C (See 12 CFR 203.5(a)).  
Recording the reason(s) for denial was previously optional, but most national 
banks voluntarily reported the reason(s) for denial.

The final rule is effective June 20, 1994, and implementation of the final rule 
should occur as follows: 

·  June 1994 is the last month that national banks subject to the FHHLDS are 
   required to maintain the old report on “Monthly home loan activity” in 12 
   CFR 27.3(a). 

·  Beginning June 20, 1994, national banks subject to the new 12 CFR 27.3(a)(1) 
   shall record the reason(s) for denial on their HMDA-LARs for all applications 
   for, and origination and purchases of, home purchase and home improvement 
   loans obtained by the bank on or after June 20, 1994. 

·  National banks subject to the HMDA shall report their 1994 home loan data in 
   accordance with 12 CFR 203.5(a) and should include the reason(s) for denial 
   for all loan applications denied on or after June 20, 1994. 

·  National banks subject to the quarterly recordkeeping requirements in the new 
   12 CFR 27.3(a)(1) or (a)(2) shall begin maintaining records in accordance 
   with those requirements on January 1, 1995, and shall complete the first 
   quarterly update by April 30, 1995.

Questions concerning this bulletin should be directed to the Compliance 
Management Division, 202-874-4446.




Stephen M. Cross
Deputy Comptroller for Compliance Management


Attachment:
	Final Rule
	[http://www.occ.treas.gov/ftp/bulletin/94-36a.txt]

		Form: Fair Housing Inquiry/Application Log Sheet
		[http://www.occ.treas.gov/ftp/bulletin/94-36aforma.doc]
		[http://www.occ.treas.gov/ftp/bulletin/94-36aforma.pdf]

		Form: Home Loan Data Submission
		[http://www.occ.treas.gov/ftp/bulletin/94-36aformb.doc]
		[http://www.occ.treas.gov/ftp/bulletin/94-36aformb.pdf]