(a) Information to be requested.
(1) A creditor that
receives an application for credit primarily for the purchase or refinancing
of a dwelling occupied or to be occupied by the applicant as a principal
residence, where the extension of credit will be secured by the dwelling,
shall request as part of the application the following information
regarding the applicant(s):
(i) Ethnicity and race using either:
(A) For ethnicity, the
aggregate categories Hispanic or Latino and not Hispanic or Latino;
and, for race, the aggregate categories American Indian or Alaska
Native, Asian, Black or African American, Native Hawaiian or Other
Pacific Islander, and White; or
(B)
The categories and subcategories for the collection of ethnicity and
race set forth in appendix B to 12 CFR part 1003.
(ii) Sex;
(iii) Marital status, using the categories
married, unmarried, and separated; and
(iv) Age.
(2) Dwelling means a residential structure that contains one to four units, whether
or not that structure is attached to real property. The term includes,
but is not limited to, an individual condominium or cooperative unit
and a mobile or other manufactured home.
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(b) Obtaining information. Questions regarding
ethnicity, race, sex, marital status, and age may be listed, at the
creditor’s option, on the application form or on a separate form that
refers to the application. The applicant(s) shall be asked but not
required to supply the requested information. If the applicant(s)
chooses not to provide the information or any part of it, that fact
shall be noted on the form. The creditor shall then also note on the
form, to the extent possible, the ethnicity, race, and sex of the
applicant(s) on the basis of visual observation or surname. When a
creditor collects ethnicity and race information pursuant to section
1002.13(a)(1)(i)(B), the creditor must comply with any restrictions
on the collection of an applicant’s ethnicity or race on the basis
of visual observation or surname set forth in appendix B to 12 CFR
part 1003. If there is more than one co-applicant, a creditor is permitted,
but is not required, to collect the information set forth in paragraph
(a) of this section from a second or additional co-applicant.
(c) Disclosure to applicant(s). The creditor shall inform the applicant(s) that the information
regarding ethnicity, race, sex, marital status, and age is being requested
by the Federal Government for the purpose of monitoring compliance
with Federal statutes that prohibit creditors from discriminating
against applicants on those bases. The creditor shall also inform
the applicant(s) that if the applicant(s) chooses not to provide the
information, the creditor is required to note the ethnicity, race
and sex on the basis of visual observation or surname.
(d) Substitute monitoring program. A monitoring
program required by an agency charged with administrative enforcement
under section 704 of the Act may be substituted for the requirements
contained in paragraphs (a), (b), and (c) of this section.
