(a) Exemption based on state law.
(1) A state-chartered or state-licensed
financial institution is exempt from the requirements of this part
if the Bureau determines that the institution is subject to a state
disclosure law that contains requirements substantially similar to
those imposed by this part and that contains adequate provisions for
enforcement.
(2) Any
state, state-chartered or state-licensed financial institution, or
association of such institutions, may apply to the Bureau for an exemption
under paragraph (a) of this section.
(3) An institution that is exempt under
paragraph (a) of this section shall use the disclosure form required
by its state law and shall submit the data required by that law to
its state supervisory agency for purposes of aggregation.
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(b) Loss of exemption. An institution losing a state-law exemption under paragraph (a)
of this section shall comply with this part beginning with the calendar
year following the year for which it last reported loan data under
the state disclosure law.
(c) Excluded transactions. The requirements
of this part do not apply to:
(1) A closed-end mortgage loan or open-end
line of credit originated or purchased by a financial institution
acting in a fiduciary capacity;
(2) A closed-end mortgage loan or open-end
line of credit secured by a lien on unimproved land;
(3) Temporary financing;
(4) The purchase of an interest in a pool
of closed-end mortgage loans or open-end lines of credit;
(5) The purchase solely of
the right to service closed-end mortgage loans or open-end lines of
credit;
(6) The purchase
of closed-end mortgage loans or open-end lines of credit as part of
a merger or acquisition, or as part of the acquisition of all of the
assets and liabilities of a branch office as defined in section 1003.2(c);
(7) A closed-end mortgage
loan or open-end line of credit, or an application for a closed-end
mortgage loan or open-end line of credit, for which the total dollar
amount is less than $500;
(8) The purchase of a partial interest in a closed-end mortgage loan
or open-end line of credit;
(9) A closed-end mortgage loan or open-end
line of credit used primarily for agricultural purposes;
(10) A closed-end mortgage
loan or open-end line of credit that is or will be made primarily
for a business or commercial purpose, unless the closed-end mortgage
loan or open-end line of credit is a home improvement loan under section
1003.2(i), a home purchase loan under section 1003.2(j), or a refinancing
under section 1003.2(p);
(11) A closed-end mortgage loan, if the financial institution originated
fewer than 25 closed-end mortgage loans in either of the two preceding
calendar years; a financial institution may collect, record, report,
and disclose information, as described in sections 1003.4 and 1003.5,
for such an excluded closed-end mortgage loan as though it were a
covered loan, provided that the financial institution complies with
such requirements for all applications for closed-end mortgage loans
that it receives, closed-end mortgage loans that it originates, and
closed-end mortgage loans that it purchases that otherwise would have
been covered loans during the calendar year during which final action
is taken on the excluded closed-end mortgage loan;
(12) An open-end line of credit, if the
financial institution originated fewer than 200 open-end lines of
credit in either of the two preceding calendar years; a financial
institution may collect, record, report, and disclose information, as described
in sections 1003.4 and 1003.5, for such an excluded open-end line
of credit as though it were a covered loan, provided that the financial
institution complies with such requirements for all applications for
open-end lines of credit that it receives, open-end lines of credit
that it originates, and open-end lines of credit that it purchases
that otherwise would have been covered loans during the calendar year
during which final action is taken on the excluded open-end line of
credit; or
(13) A transaction that provided or, in
the case of an application, proposed to provide new funds to the applicant
or borrower in advance of being consolidated in a New York State consolidation,
extension, and modification agreement classified as a supplemental
mortgage under New York Tax Law section 255; the transaction is excluded
only if final action on the consolidation was taken in the same calendar
year as final action on the new funds transaction.
(d) Partially exempt transactions.
(1) For purposes of this paragraph
(d), the following definitions apply:
(i) Insured credit
union means an insured credit union as defined in section 101
of the Federal Credit Union Act (12 U.S.C. 1752).
(ii) Insured depository institution means an insured depository institution as defined in section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(iii) Optional data means the data identified in section 1003.4(a)(1)(i), (a)(9)(i),
and (a)(12), (15) through (30), and (32) through (38).
(iv) Partially exempt
transaction means a covered loan or application that is partially
exempt under paragraph (d)(2) or (3) of this section.
(2) Except as provided
in paragraph (d)(6) of this section, an insured depository institution
or insured credit union that, in each of the two preceding calendar
years, originated fewer than 500 closed-end mortgage loans that are
not excluded from this part pursuant to paragraphs (c)(1) through
(10) or paragraph (c)(13) of this section is not required to collect,
record, or report optional data as defined in paragraph (d)(1)(iii)
of this section for applications for closed-end mortgage loans that
it receives, closed-end mortgage loans that it originates, and closed-end
mortgage loans that it purchases.
(3) Except as provided in paragraph (d)(6)
of this section, an insured depository institution or insured credit
union that, in each of the two preceding calendar years, originated
fewer than 500 open-end lines of credit that are not excluded from
this part pursuant to paragraphs (c)(1) through (10) of this section
is not required to collect, record, or report optional data as defined
in paragraph (d)(1)(iii) of this section for applications for open-end
lines of credit that it receives, open-end lines of credit that it
originates, and open-end lines of credit that it purchases.
(4) A financial institution
eligible for a partial exemption under paragraph (d)(2) or (3) of
this section may collect, record, and report optional data as defined
in paragraph (d)(1)(iii) of this section for a partially exempt transaction
as though the institution were required to do so, provided that:
(i) If the institution reports the street address, city name, or
Zip Code for the property securing a covered loan, or in the case
of an application, proposed to secure a covered loan pursuant to section
1003.4(a)(9)(i), it reports all data that would be required by section
1003.4(a)(9)(i) if the transaction were not partially exempt;
(ii) If the institution
reports any data for the transaction pursuant to section 1003.4(a)(15),
(16), (17), (27), (33), or (35), it reports all data that would be
required by section 1003.4(a)(15), (16), (17), (27), (33), or (35),
respectively, if the transaction were not partially exempt.
(5) If, pursuant to paragraph
(d)(2) or (3) of this section, a financial institution does not report
a universal loan identifier (ULI) pursuant to section 1003.4(a)(1)(i)
for an application for a covered loan that it receives, a covered loan
that it originates, or a covered loan that it purchases, the financial
institution shall assign and report a non-universal loan identifier
(NULI). The NULI must be composed of up to 22 characters to identify
the covered loan or application, which:
(i) May be letters,
numerals, or a combination of letters and numerals;
(ii) Must be unique within the annual
loan/application register in which the covered loan or application
is included; and
(iii) Must not include any information that could be used to directly
identify the applicant or borrower.
(6) Paragraphs (d)(2) and (3) of this section
do not apply to an insured depository institution that, as of the
preceding December 31, had received a rating of “needs to improve
record of meeting community credit needs” during each of its two most
recent examinations or a rating of “substantial noncompliance in meeting
community credit needs” on its most recent examination under section
807(b)(2) of the Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)(2)).
