 Applicant
Information
Race
Collection of applicant race information
under the Regulation C amendments has been revised to
conform with standards established by the U.S. Office
of Management and Budget (OMB) in 1997. Conforming the
data collected under Regulation C to census data will
provide assistance in identifying possible discriminatory
lending practices.
Under the revised Regulation C, race and ethnicity
are collected as separate data fields in accordance
with OMB standards. In addition, the race categories
have been revised to comply with OMB definitions, and
applicants are now allowed to choose multiple race designations.
Effective Jan. 1, 2003, lenders were required to ask
for race and sex information on applications made by
telephone, in addition to loans made in person, by mail
and over the Internet. The new race categories should
not be used until Jan. 1, 2004.
REPORTING OF RACE INFORMATION ON THE HMDA-LAR
Loan applicants must be provided the standard
disclosure about the reasons for collection
of data on race.
You may list questions regarding the ethnicity, race
and sex of the applicant on your loan application form
or on a separate form that refers to the application.
Appendix B of Regulation C provides a sample form that
may be used for data collection.
It may be helpful to review the OMB definitions of
the race categories for guidance. For reporting purposes,
enter the appropriate code(s) for this field:
Code 1 – “American Indian or
Alaskan Native.”
A person having origins in any of the original peoples
of North or South America (including Central America)
and who maintains tribal affiliation or community
attachment.
Code 2 – “Asian.”
A person having origins in any of the original peoples
of the Far East, Southeast Asia or the Indian subcontinent.
Places of origin include Cambodia, China, India, Japan,
Korea, Malaysia, Pakistan, the Philippine Islands,
Thailand and Vietnam.
Code 3 – “Black or African American.”
A person having origins in any of the black racial
groups of Africa.
Code 4 – “Native Hawaiian or
Other Pacific Islander.”
A person having origins in any of the original peoples
of Hawaii, Guam, Samoa or other Pacific Islands.
Code 5 – “White.”
A person having origins in any of the original peoples
of Europe, the Middle East or North Africa.
Code 6 – “Information not provided
by applicant in mail, Internet or telephone application.”
Use this code if the applicant does not provide his
or her race in an application taken by mail, by telephone
or over the Internet.
Code 7 – “Not applicable.”
Use this code only when the applicant or co-applicant
is not a natural person or when applicant or co-applicant
information is unavailable because the loan has been
purchased by your institution.
Code 8 – “No co-applicant.”
Use this code in the co-applicant column if there
are no co-applicants or co-borrowers.
TRANSITION RULE
For applications received in 2003 on which final action
is taken on or after Jan. 1, 2004, lenders must collect
data on race or national origin using the categories
in effect in 2003 and must convert the data to the ethnicity
and race codes in effect in 2004 for reporting purposes.
Further detailed information on this topic, including
a conversion guide, is located under Transition
Rules.
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