Alert December 29, 2009

FRB Maintains Depository Institution Exemption Threshold for Collecting HMDA Data at $39 Million

The FRB issued a release stating that depository institutions (“DIs”) with total assets of $39 million or less as of December 31, 2009 would be exempt in 2010 from collecting, reporting and disclosing data about applications for, and originations and purchases of, home purchase loans, home improvement loans and refinancings under the Home Mortgage Disclosure Act (“HMDA”) and the FRB’s Regulation C.  Under HMDA, non-exempt DIs collect and report data concerning the types, purposes and amounts of loans, the race, ethnicity, sex and income of the loan applicants, the locations of the property and, for some loans, loan price information.  The FRB stated that the HMDA exemption will stay at $39 million for 2010, as it was in 2009, because the Consumer Price Index decreased by only .98%, an amount that the FRB said is too small to warrant a reduction in the asset threshold amount.  The FRB noted that a DI’s exemption from collecting data in 2010 does not relieve it from reporting in 2010 any data that it was required to collect in 2009.