ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release March 13, 2001 #01-20
E-mail: [email protected]

ACB URGES FEDERAL RESERVE TO ELIMINATE, REVISE PROPOSED CHANGES TO HMDA REPORTING REQUIREMENTS

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WASHINGTON, D.C. — America’s Community Bankers told the Federal Reserve Board today that additional reporting requirements for banks under the Home Mortgage Disclosure Act will not be effective in attacking predatory lending. ACB urged the Fed to eliminate several proposed changes and to substantially revise others. ACB said a reproposal is necessary.

In its comment letter, ACB said it does not believe the proposed new data collection will help the Fed and others in either identifying unregulated lenders that may be engaged in predatory lending or in developing an accurate picture of the scope and nature of the problem.

ACB said current HMDA reporting requirements already provide the Fed with sufficient data on banks’ home mortgage lending activities, while unregulated lenders will continue to operate outside the purview of HMDA reporting. ACB supported reducing the HMDA reporting threshold to capture more of the loans of non-bank lenders operating in the subprime market.

ACB specifically urged the Fed to eliminate proposed reporting of the annual percentage rate on all mortgage loans; reporting whether a loan is a Home Ownership and Equity Protection Act loan; reporting requests for preapprovals; and making reporting of home equity lines of credit mandatory.

ACB said additional reporting requirements “will add to an already heavy regulatory burden and will impose significant programming, training and implementation costs on community banks.” ACB said any changes will require a minimum of 24 months to implement.

The comment letter is attached.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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