source:
  type: regulation
  id: hmda-12cfr-1003.3
  authority: 12 CFR §1003.3 — Exempt institutions and excluded and partially exempt
    transactions (Regulation C)
  description: 12 CFR §1003.3 — Exempt institutions and excluded and partially exempt
    transactions.
  coverage_tier: operative
obligations:
- id: hmda-12cfr-1003.3-full
  canonical_id: hmda-12cfr-1003.3-full
  section: 12 CFR §1003.3 — Exempt institutions and excluded and partially exempt
    transactions
  type: do
  tags:
  - regulator-direct
  - hmda
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 12 CFR §1003.3 — Exempt institutions and excluded and partially exempt
      transactions (Regulation C)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1003.3
    snapshot_id: eea9ffa823f6e06c
    fetched_at: '2026-06-17T19:30:41Z'
    content_hash: sha256:70e8d581a0b5cb05d58ea1a80b259d1bc14584b06bb45efed44b83244770b9d5
    paragraph_quote: '§ 1003.3 Exempt institutions and excluded and partially exempt
      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. (2) Any state, state-chartered or state-licensed
      financial institution , or association of such institutions, may apply to the
      Bureau for an exemption under paragraph (a) of this section. (3) An institution
      that is exempt under paragraph (a) of this section shall use the disclosure
      form required by its state law and shall submit the data required by that law
      to its state supervisory agency for purposes of aggregation. (b) Loss of exemption.
      An institution losing a state-law exemption under paragraph (a) of this section
      shall comply with this part beginning with the calendar year following the year
      for which it last reported loan data under the state disclosure law. (c) Excluded
      transactions. The requirements of this part do not apply to: (1) A closed-end
      mortgage loan or open-end line of credit originated or purchased by a financial
      institution acting in a fiduciary capacity; (2) A closed-end mortgage loan or
      open-end line of credit secured by a lien on unimproved land; (3) Temporary
      financing; (4) The purchase of an interest in a pool of closed-end mortgage
      loans or open-end lines of credit; (5) The purchase solely of the right to service
      closed-end mortgage loans or open-end lines of credit; (6) The purchase of closed-end
      mortgage loans or open-end lines of credit as part of a merger or acquisition,
      or as part of the acquisition of all of the assets and liabilities of a branch
      office as defined in § 1003.2(c) ; (7) A closed-end mortgage loan or open-end
      line of credit , or an application for a closed-end mortgage loan or open-end
      line of credit , for which the total dollar amount is less than $500; (8) The
      purchase of a partial interest in a closed-end mortgage loan or open-end line
      of credit ; (9) A closed-end mortgage loan or open-end line of credit used primarily
      for agricultural purposes; (10) A closed-end mortgage loan or open-end line
      of credit that is or will be made primarily for a business or commercial purpose,
      unless the closed-end mortgage loan or open-end line of credit is a home improvement
      loan under § 1003.2(i) , a home purchase loan under § 1003.2(j) , or a refinancing
      under § 1003.2(p) ; (11) A closed-end mortgage loan , if the financial institution
      originated fewer than 25 closed-end mortgage loans in either of the two preceding
      calendar years; a financial institution may collect, record, report, and disclose
      information, as described in §§ 1003.4 and 1003.5, for such an excluded closed-end
      mortgage loan as though it were a covered loan , provided that the financial
      institution complies with such requirements for all applications for closed-end
      mortgage loans that it receives, closed-end mortgage loans that it originates,
      and closed-end mortgage loans that it purchases that otherwise would have been
      covered loans during the calendar year during which final action is taken on
      the excluded closed-end mortgage loan ; (12) An open-end line of credit , if
      the financial institution originated fewer than 200 open-end lines of credit
      in either of the two preceding calendar years; a financial institution may collect,
      record, report, and disclose information, as described in §§ 1003.4 and 1003.5,
      for such an excluded open-end line of credit as though it were a covered loan
      , provided that the financial institution complies with such requirements for
      all applications for open-end lines of credit that it receives, open-end lines
      of credit that it originates, and open-end lines of credit that it purchases
      that otherwise would have been covered loans during the calendar year during
      which final action is taken on the excluded open-end line of credit ; or (13)
      A transaction that provided or, in the case of an application , proposed to
      provide new funds to the applicant or borrower in advance of being consolidated
      in a New York State consolidation, extension, and modification agreement classified
      as a supplemental mortgage under New York Tax Law section 255; the transaction
      is excluded only if final action on the consolidation was taken in the same
      calendar year as final action on the new funds transaction. (d) Partially exempt
      transactions. (1) For purposes of this paragraph (d), the following definitions
      apply: (i) Insured credit union means an insured credit union as defined in
      section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). (ii) Insured
      depository institution means an insured depository institution as defined in
      section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). (iii) Optional
      data means the data identified in § 1003.4(a)(1)(i) , (a)(9)(i), and (a)(12),
      (15) through (30), and (32) through (38). (iv) Partially exempt transaction
      means a covered loan or application that is partially exempt under paragraph
      (d)(2) or (3) of this section. (2) Except as provided in paragraph (d)(6) of
      this section, an insured depository institution or insured credit union that,
      in each of the two preceding calendar years, originated fewer than 500 closed-end
      mortgage loans that are not excluded from this part pursuant to paragraphs (c)(1)
      through (10) or paragraph (c)(13) of this section is not required to collect,
      record, or report optional data as defined in paragraph (d)(1)(iii) of this
      section for applications for closed-end mortgage loans that it receives, closed-end
      mortgage loans that it originates, and closed-end mortgage loans that it purchases.
      (3) Except as provided in paragraph (d)(6) of this section, an insured depository
      institution or insured credit union that, in each of the two preceding calendar
      years, originated fewer than 500 open-end lines of credit that are not excluded
      from this part pursuant to paragraphs (c)(1) through (10) of this section is
      not required to collect, record, or report optional data as defined in paragraph
      (d)(1)(iii) of this section for applications for open-end lines of credit that
      it receives, open-end lines of credit that it originates, and open-end lines
      of credit that it purchases. (4) A financial institution eligible for a partial
      exemption under paragraph (d)(2) or (3) of this section may collect, record,
      and report optional data as defined in paragraph (d)(1)(iii) of this section
      for a partially exempt transaction as though the institution were required to
      do so, provided that: (i) If the institution reports the street address, city
      name, or Zip Code for the property securing a covered loan , or in the case
      of an application , proposed to secure a covered loan pursuant to § 1003.4(a)(9)(i)
      , it reports all data that would be required by § 1003.4(a)(9)(i) if the transaction
      were not partially exempt; (ii) If the institution reports any data for the
      transaction pursuant to § 1003.4(a)(15) , (16), (17), (27), (33), or (35), it
      reports all data that would be required by § 1003.4(a)(15) , (16), (17), (27),
      (33), or (35), respectively, if the transaction were not partially exempt. (5)
      If, pursuant to paragraph (d)(2) or (3) of this section, a financial institution
      does not report a universal loan identifier (ULI) pursuant to § 1003.4(a)(1)(i)
      for an application for a covered loan that it receives, a covered loan that
      it originates, or a covered loan that it purchases, the financial institution
      shall assign and report a non-universal loan identifier (NULI). The NULI must
      be composed of up to 22 characters to identify the covered loan or application
      , which: (i) May be letters, numerals, or a combination of letters and numerals;
      (ii) Must be unique within the annual loan/application register in which the
      covered loan or application is included; and (iii) Must not include any information
      that could be used to directly identify the applicant or borrower. (6) Paragraphs
      (d)(2) and (3) of this section do not apply to an insured depository institution
      that, as of the preceding December 31, had received a rating of “needs to improve
      record of meeting community credit needs” during each of its two most recent
      examinations or a rating of “substantial noncompliance in meeting community
      credit needs” on its most recent examination under section 807(b)(2) of the
      Community Reinvestment Act of 1977 ( 12 U.S.C. 2906(b)(2) ). [ 76 FR 78468 ,
      Dec. 19, 2011, as amended at 80 FR 66309 , Oct. 28, 2015; 82 FR 43132 , Sept.
      13, 2017; 84 FR 57980 , Oct. 29, 2019; 85 FR 28404 , 28406, May 12, 2020; 87
      FR 77981 , Dec. 21, 2022]'
  judgment: false
