BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 06-3

January 10, 2006

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

SUBJECT: Extension of Provisional HMDA Data Sampling Procedures

CA 05-1, issued January 31, 2005, temporarily revised the sampling procedures to be followed when examining Home Mortgage Disclosure Act (HMDA) data. Specifically, CA 05-1 increased sample sizes for the review of HMDA data and established additional sampling procedures for HMDA loan application registers containing loans subject to the Home Ownership and Equity Protection Act ("HOEPA"). The letter instructed you to follow these provisional sampling procedures until January 31, 2006.

Based on our experience with the HMDA data submitted for the 2004 reporting period, the continued sensitivity of these data and their crucial role in fair lending and Community Reinvestment Act evaluations, Board staff is extending the provisional HMDA sampling requirements contained in CA 05-1 until further notice. We will, however, contact you later in 2006 about your experiences with the 2005 HMDA data, and reassess whether any further HMDA sampling changes are appropriate.

For ease of reference, the provisional sampling procedures contained in CA 05-1 are attached. Please direct any questions regarding the sampling procedures to Suzanne G. Killian, Assistant Director, Consumer Compliance Supervision (202-452-2090) or Timothy R. Burniston, Manager, Reserve Bank Oversight (202-452-3488).

Sincerely,
(signed)

Sandra F. Braunstein
Director

Attachment

Supersedes: CA 05-1 (January 31, 2005)