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In this regulation:
(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 home purchase loan, a home improvement
loan, or a refinancing that is made in accordance with procedures used
by a financial institution for the type of credit requested.
(2) Preapproval programs. A request for preapproval
for a home purchase loan is an application under paragraph (b)(1) of
this section if the request is reviewed under a program in which the
financial institution, after a comprehensive analysis of the
creditworthiness of the applicant, issues a written commitment to the
applicant valid for a designated period of time to extend a home
purchase loan up to a specified amount. The written commitment may not
be subject to conditions other than:
(i) Conditions that require the identification of a suitable
property;
(ii) Conditions that require that no material change has
occurred in the applicant's financial condition or creditworthiness
prior to closing; and
(iii) Limited conditions that are not related to the financial
condition or creditworthiness of the applicant that the lender
ordinarily attaches to a traditional home mortgage application (such
as certification of a clear termite inspection).
(c) Branch office means:
(1) Any office of a bank, savings association, or credit union
that is approved as a branch by a federal or state supervisory agency,
but excludes free-standing electronic terminals such as automated
teller machines; and
(2) Any office of a for-profit mortgage-lending institution
(other than a bank, savings association, or credit union) that takes
applications from the public for home purchase loans, home improvement
loans, or refinancings. A for-profit mortgage-lending institution is
also deemed to have a branch office in a metropolitan area if, in the
preceding calendar year, it received applications for, originated, or
purchased five or more home purchase loans, home improvement loans, or
refinancings related to property located in that metropolitan area.
(d) Dwelling means a residential structure (whether
or not attached to real property) located in a state of the United
States of America, the District of Columbia, or the Commonwealth of
Puerto Rico. The term includes an individual condominium unit,
cooperative unit, or mobile or manufactured home.
(e) Financial institution means:
(1) A bank, savings association, or credit union that:
(i) On the preceding December 31 had assets in excess of the
asset threshold established and published annually by the Board for
coverage by the act, based on the year-to-year change in the average
of the Consumer Price Index for Urban Wage Earners and Clerical
Workers, not seasonally adjusted, for each twelve month period ending
in November, with rounding to the nearest million;
(ii) On the preceding December 31, had a home or branch office in
a metropolitan area;
(iii) In the preceding calendar year, originated at least one
home purchase loan (excluding temporary financing such as a
construction loan) or refinancing of a home purchase loan, secured by
a first lien on a one-to four-family dwelling; and
(iv) Meets one or more of the following three criteria:
(A) The institution is federally insured or regulated;
(B) The mortgage loan referred to in paragraph (e)(1)(iii) of
this section was insured, guaranteed, or supplemented by a federal
agency; or
(C) The mortgage loan referred to in paragraph (e)(1)(iii) of
this section was intended by the institution for sale to Fannie Mae or
Freddie Mac; and
(2) A for-profit mortgage-lending institution (other than a
bank, savings association, or credit union) that:
(i) In the preceding calendar year, either:
(A) Originated home purchase loans, including refinancings of home
purchase loans, that equaled at least 10 percent of its loan-
origination volume, measured in dollars; or
(B) Originated home purchase loans, including refinancings of
home purchase loans, that equaled at least $25 million; and
(ii) On the preceding December 31, had a home or branch office
in a metropolitan area; and
(iii) Either:
(A) On the preceding December 31, had total assets of more than
$10 million, counting the assets of any parent corporation; or
(B) In the preceding calendar year, originated at least 100 home
purchase loans, including refinancings of home purchase loans.
(f) Home-equity line of credit means an open-end
credit plan secured by a dwelling as defined in Regulation Z (Truth in
Lending), 12 CFR part 226.
(g) Home improvement loan means:
(1) A loan secured by a lien on a dwelling that is for the
purpose, in whole or in part, of repairing, rehabilitating,
remodeling, or improving a dwelling or the real property on which it
is located; and
(2) A non-dwelling secured loan that is for the purpose, in
whole or in part, of repairing, rehabilitating, remodeling, or
improving a dwelling or the real property on which it is located, and
that is classified by the financial institution as a home improvement
loan.
(h) Home purchase loan means a loan secured by and
made for the purpose of purchasing a dwelling.
(i) Manufactured home means any residential structure
as defined under regulations of the Department of Housing and Urban
Development establishing manufactured home construction and safety
standards (24 CFR 3280.2).
(j) Metropolitan area means a metropolitan area as
defined by the U.S. Office of Management and Budget.
(k) Refinancing means a new obligation that satisfies
and replaces an existing obligation by the same borrower, in which:
(1) For coverage purposes, the existing obligation is a home
purchase loan (as determined by the lender, for example, by reference
to available documents; or as stated by the applicant), and both the
existing obligation and the new obligation are secured by first liens
on dwellings; and
(2) For reporting purposes, both the existing obligation and the
new obligation are secured by liens on dwellings.
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