Home Mortgage Disclosure — 2002-02-15 [02-3323]

The Board is amending Regulation C (Home Mortgage Disclosure) and the commentary interpreting the regulation. The Board's amendments to Regulation C expand the coverage of nondepository lenders by adding a $25 million dollar volume test to the existing percentage-based coverage test. The amendments require lenders to report data items related to loan pricing; for loan originations in which the annual percentage rate (APR) exceeds the yield for comparable Treasury securities by a specified amount or threshold, the lender will report the spread or difference between the APR and the Treasury yield. The Board has tentatively set the thresholds at 3 percentage points for first lien loans, and 5 percentage points for second lien loans, but is seeking comment on these thresholds in a separate proposed rule published in today's Federal Register. Lenders also must report whether a loan is covered by the Home Ownership and Equity Protection Act (HOEPA).