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Fed approves revision to Regulation C to improve HMDA data reportingMortgagePress.comFederal Reserve, HMDA, Regulation C, APR The Federal Reserve Board (Fed) has approved final amendments to Regulation C that revise the rules regarding the reporting of price information for higher-priced mortgage loans. These amendments intend to collect more accurate and useful information under the Home Mortgage Disclosure Act. Under Regulation C's current provisions, lenders must collect and report the rate spread between the annual percentage rate (APR) on a mortgage loan and the yield on Treasury securities if the spread is greater than three percentage points for a first-lien mortgage loan, or five points on a subordinate-lien loan. Under the revised rule, lenders must collect and report the rate spread between the loan's APR and an "average prime offer rate" if the spread meets or exceeds 1.5 percentage points for a first-lien loan, or 3.5 points for a subordinate-lien loan. The average prime offer rate is a survey-based estimate of APRs currently offered on prime mortgages of a comparable type. The Fed will publish average prime offer rates based on the Primary Mortgage Market Survey currently published by Freddie Mac. The final rule will become effective Oct. 1, 2009. For a copy of the Federal Register notice, click here.