(2) Notwithstanding the foregoing, Equal Housing Lending Posters containing obsolete references to the FDIC's "Office of Consumer Affairs and Civil Rights" which were displayed prior to October 12, 1984 shall be deemed to be in compliance with subparagraph (1) of this paragraph

(b).

(c) The Equal Housing Lender Poster specified in this section was adopted under § 110.25(b) of the United States Department of Housing and Urban Development's rules and regulations as an authorized substitution for the poster required in § 110.25(a) of those rules and regulations. It replaces the poster required by FDIC's 1972 policy statement on fair housing entitled "Nondiscrimination in Real Estate Loan Activities."

[43 FR 11563, Mar. 20, 1978, as amended at 49 FR 35762, Sept. 12, 1984]

§ 338.4 Recordkeeping requirements.

(a) Records to be retained.2 (1) A bank which has no office located in a primary metropolitan statistical area ("PMSA"), a metropolitan statistical area ("MSA"), or a consolidated metropolitan statistical area ("CMSA”) that is not comprised of designated PMSAs, as defined by the Office of Management and Budget, or which has total assets as of December 31 of the preceding calendar year of $10 million or less is not required to keep a log-sheet described in paragraph (a)(2)(iv) of this § 338.4 but shall request and retain the following information:

(i) Data on home loan applicants. (A) Date of application.

(B) Case identification.

(1) Name:

(2) Address.

(3) Location (street address, city, State, and zip code) of property being purchased, constructed, improved, repaired, or maintained.

(C) Sex.

(D) Race/national origin, using the categories American Indian or Alaskan

2 These records are to be retained for the purpose of monitoring compliance and may not be used for the purpose of extending or denying credit or fixing terms where prohibited by law.

(F) Marital status, using the categories married, unmarried, and separated.

(ii) Collection of data. No bank shall engage in any activity which discourages an applicant from providing the information in paragraph (a)(1)(i) of this section. Each bank shall attempt to collect such information during the initial contact with the applicant. If the applicant refuses to furnish all or part of this information, the bank shall note the fact or have the applicant note the fact on the form used for recording the information. If the information regarding race and sex is not voluntarily furnished, the bank shall, on the basis of visual observations or surnames, separately note the information on the form or an attached document.

(2) A bank which has an office in a PMSA, MSA, or CMSA that is not comprised of designated PMSAS, and which had total assets exceeding $10 million as of December 31 of the preceding calendar year shall request and retain the following information:

(i) Data on home loan applicants. (A) Date of application.

(B) Case identification: (1) Name.

(2) Address.

(3) Location (street address, city, State, and zip code) of property being purchased, constructed, improved, repaired, or maintained.

(C) Sex.

(D) Race/national origin, using the categories American Indian or Alaskan Native; Asian or Pacific Islander; Black; Hispanic; White; or other (specify).

(E) Age.

(F) Marital status, using the categories married, unmarried, and separated.

(G) Loan type, using the following categories: purchase of existing dwelling; refinancing of existing home loan; construction loan only; constructionpermanent; home improvment, repair or maintenance; or other (specify).

(H) Case disposition (e.g., accepted, rejected).

(ii) Additional data on applications for home loans.3

(A) Other characteristics of applicants.

(1) Employment. (i) Number of years employed in present line of work or profession.

(ii) Self-employed-Yes or No.

(iii) Years on Present Job-(Number of continuous years employed by the current employer. For self-employed persons, the number of continuous years self-employed. If a person is not employed, record as zero years.)

(2) Income. (i) Base Employment Income. (Enter only normal monthly base salary, wages and retirement income. For self-employed persons, enter average or normal monthly income.)

(ii) Other Income. (Average per month. If received on a regular basis include, by so stating, overtime pay bonuses, commissions, dividends, interest, rental income, and income from part-time employment. Include alimony, separate maintenance and childsupport payment information only if the applicant has been advised that such information need not be provided and elects to have it considered.)

(3) Number of dependents. (Each dependent should be counted only once. The applicant and any co-applicant(s) should be excluded.)

(4) Total assets. (i) Liquid assets. (Include all cash and other items which are readily convertible to cash (e.g., checking, savings, and time deposit accounts at banks, savings and loan associations, credit unions, or similar institutions; stocks and bonds for which there is a ready market; and the cash surrender value of any life insurance policies).)

(ii) All other assets.

(5) Total liabilities. Exclude any liabilities which will result from the ap

'Except for census tract information in paragraph (a)(2)(ii)(B)(5), all information is listed on the Residential Loan Application Form contained in Appendix B of Regulation B of the Board of Governors of the Federal Reserve System (12 CFR Part 202, Appendix B). The information may be recorded on the Regulation B model Residential Loan Application Form or on one or more existing form or forms used by the bank.

proval of the application and list the following:

(i) Liabilities which will be satisfied upon sale of real estate owned, or upon refinancing of property, associated with this application.

(ii) All other outstanding liabilities. (6) Total monthly payments on liabilities. Exclude any payments on liabilities which will result from the approval of the application and list the following:

(i) Payments on liabilities which will be satisfied upon sale of real estate owned, or upon refinancing of property, associated with this application.

(ii) All other payments on outstanding liabilities.

(7) Customer(s) of Bank-Yes or No. (B) Characteristics of subject property.

(1) Year Built.

(2) Purchase Price or Approximate Current Market Value.

(3) Value of Land (Construction Loan Only).

(4) Street Address, City, County, State, Zip Code.

(5) Census Tract.

(6) Number of Residential Units. (C) Characteristics of loan request. (1) Purpose of loan.

(i) Purchase of existing dwelling. (ii) Refinancing of existing home loan.

(iii) Construction loan only.
(iv) Construction-Permanent.

(v) Other, including loan for improvement, repair, or maintenance (specify).

(2) Type mortgage. (i) Conventional. (ii) VA.

(iii) FHA.

(iv) Other (specify). (3) Amount of Loan. (4) Interest Rate.

(5) Months to Maturity. (For shortterm, renewable mortgages or those with some other provision for varying rates, a brief explanation of the provisions should be appended to the application form.)

(6) Monthly Payment, Principal and Interest.

(7) Estimated Total Closing Costs. (Excluding downpayment.)

(8) Estimated Closing Costs Paid by Seller.

(9) Estimated Real Estate Taxes and Insurance. (Indicate annual or monthly.)

(iii) Collection of data.

(A) Each bank shall attempt to collect that information in paragraph (a)(2)(i) of this section during the initial contact with the applicant. If the applicant refuses to furnish all or part of this information, the bank shall note the fact or have the applicant note the fact on the form used for recording the information. If the information regarding race and sex is not voluntarily furnished, the bank shall on the basis of visual observation or surnames, separately note the information on the form or an attached document.

(B) No bank shall engage in any activity which discourages an applicant from providing the information in paragraphs (a)(2)(i) and (a)(2)(ii) of this section. If the bank is unable to obtain any part of the information requested of the applicant under paragraph (a)(2)(ii) of this section, it shall note the reason in the application file. Also, if the bank rejects an application before it has had the opportunity to collect all of the information under paragraph (a)(2)(ii) of this section, it shall note the reason for the rejection in the application file and need not obtain the remaining information.

(iv) Log-sheet. In addition to the other recordkeeping requirements specified in this paragraph (a)(2) of this section, each bank covered by the provision shall keep a log-sheet on its home loan applications by bank office: Provided, That any bank covered by the said provision which had total assets of $50 million or less as of December 31 of the preceding calendar year and also received fewer than 25 home loan applications during that calendar year is not required to keep a log-sheet of this kind. The log-sheet shall contain the information reflected on the sample form in Appendix A. The bank shall be able to trace each entry on the log-sheet to the relevant application file, using the name of the applicant or unique case number assigned by the bank.

(b) Disclosure to applicant. The bank shall advise an applicant that:

(1) The information regarding race/ national origin, marital status, age, and sex in paragraphs (a)(1) and (a)(2) of this section is being requested to enable the Federal Deposit Insurance Corporation to monitor compliance with the Fair Housing and Equal Credit Opportunity Acts which prohibit creditors from discriminating against applicants on these bases;

(2) The Federal Deposit Insurance Corporation encourages the applicant to provide the information requested; and

(3) If the applicant refuses to provide the information concerning race/ national origin or sex, the bank is required, where possible, to note the information on the basis of visual observations or surnames.

(c) Record retention. Each bank shall retain the records required by § 338.4 for 25 months after the bank notifies an applicant of action taken on an application. This requirement applies to records of home loans which are originated by the bank and subsequently sold. The Federal Deposit Insurance Corporation may by written notice extend the retention period.

(d) Substitute system. The recordkeeping provisions of § 338.4 constitute a substitute monitoring program adopted under § 202.13(d) of Regulation B of the Board of Governors of the Federal Reserve System (12 CFR 202.13(d)). A bank collecting the data in compliance with § 338.4 will be in compliance with the recordkeeping requirements of § 202.13 of Regulation

B.

(e) Review of records. Each bank shall make all information collected under paragraph (a) of this section available to FDIC examiners for review upon request.

(f) Notwithstanding any other provision of this section, the Board of Directors may require any bank to keep a log-sheet on its home loan applications by bank office. The log-sheet shall contain the information reflected on the sample form in Appendix A. The bank shall be able to trace each entry on the log-sheet to the relevant application file, using the name of the applicant or unique case number assigned by the bank. The Board shall afford the bank an opportunity to

12, 1984; 50 FR 39990, Oct. 1, 1985]

FDIC 6500/70