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Inactive Financial Institution Letters 

Home Mortgage Disclosure Act
FIL-96-96
December 2, 1996
TO: CHIEF EXECUTIVE OFFICER AND COMPLIANCE OFFICER
SUBJECT: HMDA Data Required for Calendar Year 1997

The Home Mortgage Disclosure Act (HMDA), implemented by the Federal Reserve Board's Regulation C, requires certain institutions to submit annual reports of their mortgage-related lending activity. Your report of loans and applications for home purchases, home improvements and refinancings for calendar year 1997 (CY 1997) must be submitted between January 1, 1998, and Monday, March 2, 1998.

This letter discusses recent changes to Regulation C, and includes updated CY 1997 PC software with a discussion of new features and other information of importance to all FDIC-supervised institutions that must submit CY 1997 HMDA data. The enclosed materials include instructions for the collection and submission of CY 1997 HMDA data. These instructions apply to submissions in all formats.

Changes to HMDA for CY 1997

Congress recently raised HMDA's asset exemption threshold for CY 1997. The asset criteria will be adjusted annually, beginning after December 31, 1996, by the annual percentage increase in the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers published by the Bureau of Labor Statistics. It is expected that by year-end 1996, the asset criteria may be increased to an amount greater than $28 million. Additional information, including a more detailed explanation of these legal and regulatory changes to HMDA and Regulation C, will be provided by the FDIC in a few weeks.

FFIEC Software for CY 1997

The enclosed Federal Financial Institutions Examination Council's (FFIEC) CY 1997 HMDA Data Entry Software, Version 1.00, is provided by the FDIC at no cost. We are pleased to announce two enhancements to this new software:

  • The user interface is based on a Windows operating system architecture, which allows the software to be run in Windows 3.1, Windows 95 or Windows NT.
  • The standard distribution medium is now CD-ROM. If you are unable to use a CD- ROM, return the self-addressed postcard included in the software package to request 3.5" diskettes (5.25" diskettes are no longer available). Diskettes will not be an option in future FFIEC HMDA software releases.

Hardware requirements for CY 1997 HMDA software are: 100% IBM compatible 386 or higher PC, 8MB RAM, hard disk drive with 24 MB free disk space, MPC compatible double-speed CD- ROM drive, and 16 color VGA or SVGA video.

The CY 1997 software offers these new features:

  • Provides a "generic" help button on each screen. You can also get specific help on any of the transmittal sheet and loan/application register (LAR) fields by pressing the F1 key while in that field. Includes instructions for printing the "Help Text," which has been expanded to replace the User Guide from previous releases. Please note that a paper copy of the instructions is not provided. Includes current Metropolitan Statistical Area (MSA) designations that must be used in CY 1997 reports. Two new MSAs are: MSA 3700 for Jonesboro, Arkansas, which includes Craighead County (031); and MSA 6340 for Pocatello, Idaho, which includes Bannock County (005). Also, Chester County (023) has been added to the previously existing Jackson, Tennessee, MSA (3580). Includes census tract and block numbering area (BNA) codes for locations inside and outside MSAs. Allows Internet transmission of your data. Simply install the HMDA Internet Submission software that is included.
  • Provides century date compliance. Although it is not anticipated that you would use the CY 1997 software as late as the year 2000, if you were to use it to review or correct your CY 1997 data, the software is safe for use in and after the year 2000 and would cause no damage to your databases or hardware as a result of the year 2000 date.

Failure to report HMDA data accurately by March 2, 1998, may subject your institution to civil money penalties and/or other administrative sanctions prescribed in Section 305 of the statute. Inaccuracies can be minimized by using the FFIEC software because it contains editing features that will identify certain inaccurate entries.

Choosing Not to Use the FFIEC HMDA Software

Data submission formats other than the enclosed FFIEC software can include: a typed loan application register (LAR) form, if 25 or fewer records are submitted (using the FFIEC's FORM FR HMDA-LAR); magnetic tape; data from a mainframe program; or another software product. If you do not use the enclosed software, you must:

  • Use a program that conforms exactly to the file specifications required for HMDA reporting.
  • Edit the data before submission, using equivalent edits in software available from vendors or developed in-house.
Regulation C requires institutions to include on the Transmittal Sheet a total count of loans and application records for each data submission. This count is computed automatically by the FFIEC software and is included on the Transmittal Sheet each time an institution exports data for submission. If you do not use the FFIEC software, you must include a total count of loan records for each submission on your electronic Transmittal Sheet or on a paper copy of each Transmittal Sheet.

Getting Help

The FDIC has again contracted with the Federal Reserve Board in Washington to collect and process CY 1997 HMDA data from FDIC-supervised institutions. The Federal Reserve Board also will provide assistance if you have questions about completing your HMDA report or collecting reports from prior years.

The Federal Reserve Board's HMDA Assistance Line is (202) 452-2016. You may leave a taped message, and your call will be returned within two business days. Questions can also be addressed via Internet to HMDA HELP@FRB.GOV. Your Regional Office of the FDIC's Division of Compliance and Consumer Affairs also can assist with questions.

Submitting Data

The FFIEC HMDA software exports data on 3.5" diskettes. (CY 1997 data cannot be accepted on 5.25"diskettes.) The institution should make a copy of each diskette and submit the original to the Federal Reserve Board in Washington labeled as follows:

Respondent ID number/agency code Contact name and phone number
Institution's name Number of total LAR records being submitted
Tax ID number Number of each diskette within set (i.e., 1, 1 of 2, etc.)

The mailing address to which HMDA reports (diskette, tape, or paper format) should be submitted is:

Attention: FDIC HMDA Processing
Federal Reserve Board
1709 New York Avenue NW, 5th Floor
Washington, DC 20006

Internet Transmission

If you choose to submit your report electronically, the address is HMDASUB@FRB.GOV. A signed copy of the Transmittal Sheet should be retained in your records for review by examiners. You will receive confirmation of receipt of your electronically transmitted records within 48 hours. The confirmation should also be retained until your disclosure statement is received in the summer and its accuracy is confirmed.

CY 1996 Data Reporting Deadline

Your CY 1996 report must be submitted by March 3, 1997, to the Federal Reserve Board address above. The enclosed CY 1997 software can also be used to prepare your CY 1996 HMDA report. This software contains the edits and census data that apply to both years' data, including census tract and block numbering area (BNA) codes for areas located inside and outside MSAs. The CY 1997 software allows conversion of CY 1996 HMDA data from the DOS version 2.03 (FFIEC HMDA software for CY 1996) to the enclosed software if you want to complete your CY 1996 data collection in the Windows operating system.
Carmen J. Sullivan
Director

Distribution: Insured Commercial Banks and FDIC-Supervised Savings Banks

Note: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 ((703) 562-2200)

Last Updated 11/9/2011 communications@fdic.gov