Even if a financial institution did not receive an FDIC letter fining it for consistently inaccurate or late HMDA data, it does not mean one isnt in the mail. Only six of the 43 banks or subsidiaries regulated by the agency hit by civil money penalties sent in their checks.The others, according to David Barr, Federal Deposit Insurance Corp. spokesman, may be hoping for a reprieve through appeals.
The FDIC has become the first regulator to issue fines for late or inaccurate HMDA data. However, it more than likely will not be the only one to target banks and thrifts that do not take the regulations seriously enough to file accurate and timely data.
Its our indication that other agencies plan to do the same in the future, Barr said. In November 1991, Barr said the Fed amended Reg C to give agencies the authority to issue CMPs for bad HMDA data. We wanted to look at a two-year pattern. Thats why we waited until now, said Barr.
In fact, the FDIC studied 1992 HMDA data from its member institutions, according to Barr. If data was late or inaccurate it was noted. After looking at 1993 data, if the accuracy improved or if it was submitted on time, no penalties were filed.
However, if the accuracy worsened or remained poor, or data was filed late again, the FDIC assessed penalties. We advised institutions several times during a two-year period that CMPs could be imposed for inaccurate or late HMDA data, said Barr.