From: First State Bank of Colfax [mailto:fsbcolfax@qwest.net]
Sent: Monday, July 26, 2004 2:08 PM
To: regs.comments@federalreserve.gov; Comments; regs.comments@occ.treas.gov;
regs.comments@ots.treas.gov
Subject: EGRPRA
RE: Collection of Government Monitoring Information
As a non-HMDA bank keeping on top of the rules and training all potential
personnel for collection of Government Monitoring information as
part of the Equal Credit Opportunity act seems burdensome.
The collection of information for Government Monitoring is based
upon the type of loan (purchase, construction, construction with
ending commitment, refiance, home equity, refiance from outside lender,
refinance internally, consolidation). To properly collect this information
involves an interview. As a small institution with limited staff,
we may have clerical staff provide the Uniform Residential Loan Application
to customers upon request. Clerical staff may or may not have asked
the proper quetions to determine whether the Monitoring Information
is applicable, and by the time the application is received and reviewed,
we may have collected the data from a customer filling out the application,
and could be in violation of Regulation B, Equal Credit Opportunity.
As we are near a HMDA area (adjoining county), the applicant may
have obtained a the universal Uniform Residential Loan Application
from a bank in a HMDA area or even bring a copy of the application
they submitted at the HMDA institution. So even training clerical
staff on all of the details of when we need to have applicants complete
this section is not adequate protection to insure compliance.
Our neighboring banks( that are in a HMDA area )are not in violation
of Regulation B when they collect thisdata yet institutions outside
a HMDA are in violation.This seems to be a unnecessary burden on
non-HMDA banks, particularily when sometimes uniform forms requesting
the data are not provided by us, or the type of loan may have changed
from the initial inquiry to when the applicantion information is
reviewed for credit decisions and compliance issues.
My wife's advice of KISS (Keep it simple sweetheart) would seem to
be applicable in making the Regs easier to follow and comply.
Michael D. Biedenfeld
Vice President
First State Bank
100 N Walnut
Colfax, Iowa 50054