May 13, 2002 News Archive

Board Postpones Effective Date of Recent Amendments to Regulation C (HMDA)
The Board announced a change in the implementation date of the recent amendments to Regulation C (Home Mortgage Disclosure Act or HMDA) from January 1, 2003 to January 1, 2004. The postponement of the effective date was made on the grounds that a 2003 deadline does not afford institutions adequate time to take the steps necessary to ensure full compliance with the new rules. The Board also adopted an interim amendment mandating the use of 2000 census data for HMDA reporting, effective January 1, 2003, as previously scheduled.

Chairman Greenspan Remarks on Stock Options and Related Accounting Issues
Chairman Alan Greenspan remarked on stock options grants and related accounting issues at the Financial Markets Conference of the Federal Reserve Bank of Atlanta. In his speech, Chairman Greenspan noted that properly constructed grants of stock or options could be highly effective if tied to some measure of the firm's performance. He also commented that the current accounting treatment of stock options - that do not require companies to expense stock options granted to officers - introduces a significant distortion in reported earnings.

Sarbanes Announces the Introduction of Predatory Lending Legislation
Senate Banking Committee Chairman Paul S. Sarbanes announced the introduction of legislation to combat predatory lending practices. Titled "The Predatory Lending Consumer Protection Act of 2002," the bill is designed to restrict abusive predatory lending practices, expand consumer protections, and strengthen enforcement of existing protections in current law by enhancing civil remedies and statutory penalties.