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Credit Discrimination: Listing of Provisions

Title 42—The Public Health and Welfare

* * *

Chapter 45—Fair Housing

Subchapter I—Generally

§ 3601. Declaration of policy

§ 3602. Definitions

§ 3603. Effective dates of certain prohibitions

§ 3604. Discrimination in the sale or rental of housing and other prohibited practices

§ 3605. Discrimination in residential real estate-related transactions

§ 3606. Discrimination in provision of brokerage services

Credit Discrimination: Introduction and Listing of Provisions

The Consumer Financial Protection Bureau (CFPB) now has authority to issue Regulation C and its commentary. See Pub. L. No. 111-203, tit. X, §§ 1085(3), 1100H, 124 Stat. 2083, 2113 (July 21, 2010). On December 19, 2011, the CFPB issued its version of Regulation C and its commentary. See 76 Fed. Reg. 78,468 (Dec. 19, 2011). The major change from the Federal Reserve Board’s (FRB) version is that 12 C.F.R. part 203 citations are replaced by citations to 12 C.F.R. part 1003. Other changes are stylistic and not substantive.

Credit Discrimination: § 1003.1. Authority, purpose, and scope.

(a) Authority. This part, known as Regulation C, is issued by the Bureau of Consumer Financial Protection (Bureau) pursuant to the Home Mortgage Disclosure Act (HMDA) (12 U.S.C. 2801 et seq.), as amended. The information-collection requirements have been approved by the U.S. Office of Management and Budget (OMB) under 44 U.S.C. 3501 et seq.

Credit Discrimination: § 1003.2. Definitions.

In this part:

(a) Act means the Home Mortgage Disclosure Act (HMDA) (12 U.S.C. 2801 et seq.), as amended.

(b) Application.

(1) In general. Application means an oral or written request for a covered loan that is made in accordance with procedures used by a financial institution for the type of credit requested.

Credit Discrimination: § 1003.3. Exempt institutions and excluded transactions.

(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.

Credit Discrimination: § 1003.4. Compilation of reportable data.

(a) Data format and itemization. A financial institution shall collect data regarding applications for covered loans that it receives, covered loans that it originates, and covered loans that it purchases for each calendar year. A financial institution shall collect data regarding requests under a preapproval program, as defined in § 1003.2(b)(2), only if the preapproval request is denied, is approved by the financial institution but not accepted by the applicant, or results in the origination of a home purchase loan.

Credit Discrimination: § 1003.6. Enforcement.

(a) Administrative enforcement. A violation of the Act or this part is subject to administrative sanctions as provided in section 305 of the Act (12 U.S.C. 2804), including the imposition of civil money penalties, where applicable. Compliance is enforced by the agencies listed in section 305 of the Act.

(b) Bona fide errors.

Credit Discrimination: Introduction

The check digit for the Universal Loan Identifier (ULI) pursuant to § 1003.4(a)(1)(i)(C) is calculated using the ISO/IEC 7064, MOD 97–10 as it appears on the International Standard ISO/IEC 7064:2003, which is published by the International Organization for Standardization (ISO).

©ISO. This material is reproduced from ISO/IEC 7064:2003 with permission of the American National Standards Institute (ANSI) on behalf of ISO. All rights reserved.

Credit Discrimination: Generating a Check Digit

Step 1: Starting with the leftmost character in the string that consists of the combination of the Legal Entity Identifier (LEI) pursuant to § 1003.4(a)(1)(i)(A) and the additional characters identifying the covered loan or application pursuant to § 1003.4(a)(1)(i)(B), replace each alphabetic character with numbers in accordance with Table I below to obtain all numeric values in the string.

Credit Discrimination: Table I—Alphabetic to Numeric Conversion Table

The alphabetic characters are not case-sensitive and each letter, whether it is capitalized or in lower-case, is equal to the same value as each letter illustrates in the conversion table. For example, A and a are each equal to 10.

A = 10

B = 11

C = 12

D = 13

E = 14

F = 15

G = 16

H = 17

I = 18

Credit Discrimination: Example

For example, assume the LEI for a financial institution is 10Bx939c5543TqA1144M and the financial institution assigned the following string of characters to identify the covered loan: 999143X. The combined string of characters is 10Bx939c5543TqA1144M999143X.

Step 1: Starting with the leftmost character in the combined string of characters, replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string. The result is 10113393912554329261011442299914333.

Credit Discrimination: Validating A ULI

To determine whether the ULI contains a transcription error using the check digit calculation, the procedures are described below.

Step 1: Starting with the leftmost character in the ULI, replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string.

Step 2: Apply the mathematical function mod=(n,97) where n=the number obtained in step 1 above and 97 is the divisor.

Credit Discrimination: Example

For example, the ULI assigned to a covered loan is 10Bx939c5543TqA1144M999143X38.

Step 1: Starting with the leftmost character in the ULI, replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string. The result is 1011339391255432926101144229991433338.

Step 2: Apply the mathematical function mod=(n,97) where n is the number obtained in step 1 above and 97 is the divisor.

Credit Discrimination: Introduction and Listing of Provisions

The Consumer Financial Protection Bureau (CFPB) now has authority to issue Regulation C and its commentary. See Pub. L. No. 111-203, tit. X, §§ 1085(3), 1100H, 124 Stat. 2083, 2113 (July 21, 2010). On December 19, 2011, the CFPB issued its version of Regulation C and its commentary. See 76 Fed. Reg. 78,468 (Dec. 19, 2011). The major change from the Federal Reserve Board’s (FRB) version is that 12 C.F.R. part 203 citations are replaced by citations to 12 C.F.R. part 1003. Other changes are stylistic and not substantive.

Credit Discrimination: Introduction

1. Status. The commentary in this supplement is the vehicle by which the Bureau of Consumer Financial Protection issues formal interpretations of Regulation C (12 CFR part 1003).

Credit Discrimination: 2(b) Application.

1. Consistency with Regulation B. Bureau interpretations that appear in the official commentary to Regulation B (Equal Credit Opportunity Act, 12 CFR part 1002, Supplement I) are generally applicable to the definition of application under Regulation C. However, under Regulation C the definition of an application does not include prequalification requests.

Credit Discrimination: 2(c) Branch Office.

Paragraph 2(c)(1).

1. Credit unions. For purposes of Regulation C, a “branch” of a credit union is any office where member accounts are established or loans are made, whether or not the office has been approved as a branch by a Federal or State agency. (See 12 U.S.C. 1752.)

Credit Discrimination: 2(d) Closed-end Mortgage Loan.

1. Dwelling-secured. Section 1003.2(d) defines a closed-end mortgage loan as an extension of credit that is secured by a lien on a dwelling and that is not an open-end line of credit under § 1003.2(o). Thus, for example, a loan to purchase a dwelling and secured only by a personal guarantee is not a closed-end mortgage loan because it is not dwelling-secured.

Credit Discrimination: OHIO

Civil Rights: Ohio Rev. Code Ann. § 4112.021 (West) (credit transactions)

Protected Classes: Race, color, religion, age, sex, marital status, national origin, disability, military status, or ancestry.

Prohibited Practices: Lists eleven prohibited practices, including discriminating in granting, withholding, extending or renewing credit, or in rates, terms or conditions of any form of credit.

Credit Discrimination: OKLAHOMA

Civil Rights: Okla. Stat. tit. 25, §§ 1451 to 1453 (housing transactions)

Protected Classes: Race, color, religion, gender, national origin, age, disability, familial status, receipt of public assistance (as specified). §§ 1451, 1452.

Credit Discrimination: OREGON

Civil Rights: Or. Rev. Stat. §§ 659A.001 to 659A.990; Or. Rev. Stat. §§ 659A.421 to 659A.425 (housing transactions)

Protected Classes: Race, color, religion, sex, sexual orientation, gender identity, disability, marital status, familial status, national origin, or source of income.