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
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
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
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
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,
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
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.
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.
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:
ID number/agency code
name and phone number
of total LAR records being submitted
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
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
Carmen J. Sullivan
Distribution: Insured Commercial Banks and FDIC-Supervised
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)