February 4, 2002 News Archive

Fed Testifies Before the Banking Committee on Antiterrorism Initiatives
Director Richard Spillenkothen of the Board's Division of Banking Supervision and Regulation testified before the Senate Banking Committee on activities related to the implementation of the USA Patriot Act and efforts in helping law enforcement track terrorist financing activities.

Highlights of the testimony included background information on the Federal Reserve's anti-money laundering program under the Bank Secrecy Act and cooperation with the Treasury and the private sector in implementing the Patriot Act. Also highlighted were Patriot Act examination enhancements, training and technical assistance provided to foreign law enforcement officials and others in the international supervisory community, and participation in multilateral organizations such as the Financial Action Task Force and the Basel Committee on Banking Supervision.

Board Amends Regulation C Disclosure Requirements and Seeks Public Comment on Certain Items
The Board announced changes to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA), to improve the quality and consistency of data collected on home mortgage loans. The Board also adopted a number of clarifying and technical changes, in addition to reorganizing Regulation C for easier use. The amendments would require lenders to disclose pricing data on higher cost loans, expand the number of nondepository institutions subject to HMDA's reporting requirements, and revise certain regulatory definitions. The changes are effective for data collection beginning January 1, 2003.

The Board is also seeking comment on requiring lenders to ask telephone applicants their race, ethnicity, and sex (lenders already ask these questions in in-person, mail and Internet applications), and on requiring lenders to report lien status for applications and originated loans.

Mailing Address Change for CRA/HMDA Data Submission
Due to heightened security concerns, the mailing addresses to submit Community Reinvestment Act and Home Mortgage Disclosure Act data have been changed effective March 1, 2002. The new mailing addresses are:

CRA: Federal Reserve Board
Attention: CRA Processing
20th and Constitution Ave. N.W. MS N502
Washington, D.C. 20551-0001

HMDA: Federal Reserve
Attention HMDA Processing
20th and Constitution Ave. N.W. MS N502
Washington, D.C., 20551-0001

Banking institutions regulated by the Federal Reserve are strongly urged to submit HMDA data to their respective Federal Reserve district by e-mail using the right encryption software. HMDA respondents in the Chicago district should send their e-mail to hmda.chi@chi.frb.org. Specific instructions for all HMDA reporters regulated by all agencies may be found at http://www.ffiec.gov/hmda/submit.htm.

Banking Committee Hearings on National Strategy to Promote Financial Literacy and Education
Senate Banking Committee Chairman Paul S. Sarbanes announced that the committee would conduct hearings in February on the development of a national strategy to promote financial literacy and education. Chairman Alan Greenspan, Treasury Secretary Paul O'Neill, and Securities and Exchange Commission Chairman Harvey Pitt, are scheduled to testify as well as representatives from organizations with expertise on the issues involved.