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[Federal Register: December 28, 2007 (Volume 72, Number 248)]
[Notices]               
[Page 73823-73824]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de07-101]                         

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FEDERAL HOUSING FINANCE BOARD

[No. 2007-N-14]

 
Notice of Annual Adjustment of the Cap on Average Total Assets 
That Defines Community Financial Institutions Notice of Annual 
Adjustment of the Limits on Annual Compensation for Federal Home Loan 
Bank Directors

AGENCY: Federal Housing Finance Board.

[[Page 73824]]

ACTION: Notice.

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SUMMARY: The Federal Housing Finance Board (Finance Board) has adjusted 
the cap on average total assets that defines a ``Community Financial 
Institution'' and the limits on annual compensation for Federal Home 
Loan Bank (Bank) directors based on the annual percentage increase in 
the Consumer Price Index for all urban consumers (CPI-U) as published 
by the Department of Labor (DOL). These changes take effect on January 
1, 2008.

FOR FURTHER INFORMATION CONTACT: Patricia L. Sweeney, Office of 
Supervision, by telephone at 202-408-2872, by electronic mail at 
sweeneyp@fhfb.gov, or by regular mail at the Federal Housing Finance 

Board, 1625 Eye Street NW., Washington DC 20006-4001.

SUPPLEMENTARY INFORMATION:

A. Statutory and Regulatory Background

    Section 2(13) of the Federal Home Loan Bank Act (Bank Act) and 
Sec.  925.1 of the Finance Board regulations define a Bank member that 
is a ``Community Financial Institution'' (CFI) by the member's total 
asset size. See 12 U.S.C. 1422(13)(A) and 12 CFR 925.1. The Bank Act 
requires the Finance Board annually to adjust the CFI asset cap to 
reflect any percentage increase in the preceding year's CPI-U as 
published by the DOL. See 12 U.S.C. 1422(13)(B).
    Section 7(i)(2)(B) of the Bank Act and Sec.  918.3(a)(1) of the 
Finance Board regulations require the Finance Board to make similar 
annual adjustments to the annual compensation limits for members of the 
boards of directors of the Banks. See 12 U.S.C. 1427(i)(2) and 12 CFR 
918.3(a).

B. Calculating the Annual Adjustments

    The annual adjustments to the CFI asset cap and Bank director 
compensation limits reflect the percentage by which the CPI-U published 
for November of the preceding calendar year exceeds the CPI-U published 
for November of the year before the preceding calendar year (if at 
all). Thus, the adjustments that take effect on January 1, 2008, are 
based on the percentage increase in the CPI-U from November 2006 to 
November 2007. The Finance Board uses November data to provide notice 
of the changes to the annual limits before the January 1st effective 
date. This practice is consistent with that of other federal agencies.
    The DOL encourages use of CPI-U data that have not been seasonally 
adjusted in ``escalation agreements'' because seasonal factors are 
updated annually and seasonally adjusted data are subject to revision 
for up to 5 years following the original release. Unadjusted data are 
not routinely subject to revision, and previously published unadjusted 
data are only corrected when significant calculation errors are 
discovered. Accordingly, the Finance Board is using data that have not 
been seasonally adjusted.
    The unadjusted CPI-U was 4.3 percent higher in November 2007 than 
in November 2006. Based on this change, the Finance Board made the 
following adjustments, which take effect on January 1, 2008:
    CFI Asset Cap: The CFI Asset Cap, which was $599 million for 2007, 
is $625 million in 2008. The Finance Board arrived at the adjusted 
limit of $625 million by rounding to the nearest million.
    Annual Compensation Limits: The annual compensation limits for the 
Banks' boards of directors in 2008 are as follows: for a chairperson--
$31,232; for a vice-chairperson--$24,986; for members of a board of 
directors--$18,739. The Finance Board arrived at the adjusted annual 
compensation limits by rounding to the nearest dollar.

    Dated: December 19, 2007.
    By the Federal Housing Finance Board.
Ronald A. Rosenfeld,
Chairman.
[FR Doc. E7-25156 Filed 12-27-07; 8:45 am]

BILLING CODE 6725-01-P

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