Assessments, 56712-56715 [E8-23046]
Download as PDF
<![CDATA[
ebenthall on PROD1PC60 with RULES
56712
Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations
$30,000 and the remaining amount
($720,000) goes to a charity. Under
paragraph (e) of this section, the
maximum coverage, as to each joint
account owner, would be the greater of
$500,000 or the aggregate amount (as to
each joint owner) of the interest of each
different beneficiary named in the trust,
to a limit of $100,000 per account owner
per beneficiary. The beneficial interests
in the trust considered for purposes of
determining coverage for account owner
A are: $300,000 for the children (three
times $100,000), $75,000 for the cousin,
$15,000 for the friend and $100,000 for
the charity ($360,000 subject to the
$100,000 per-beneficiary limitation). As
to A, the aggregate amount of the
beneficial interests eligible for deposit
insurance coverage, thus, is $490,000.
Hence, the maximum coverage afforded
to joint account owner A would be
$500,000, the greater of $500,000 or
$490,000 (the aggregate of all the
beneficial interests attributable to A,
limited to $100,000 per beneficiary).
The same analysis and coverage
determination also would apply to B.
(2) Notwithstanding paragraph (f)(1)
of this section, where the owners of a
joint revocable trust account are
themselves the sole beneficiaries of the
corresponding trust, the account shall
be insured as a joint account under
section 330.9 and shall not be insured
under the provisions of this section.
(Example: If A and B establish a
payable-on-death account naming
themselves as the sole beneficiaries of
the account, the account will be insured
as a joint account because the account
does not satisfy the intent requirement
(under paragraph (a) of this section) that
the funds in the account belong to the
named beneficiaries upon the owners’
death. The beneficiaries are in fact the
actual owners of the funds during the
account owners’ lifetimes.)
(g) For deposit accounts held in
connection with a living trust that
provides for a life-estate interest for
designated beneficiaries, the FDIC shall
value each such life estate interest as the
SMDIA for purposes of determining the
insurance coverage available to the
account owner.
(h) Revocable trusts that become
irrevocable trusts. Notwithstanding the
provisions in section 330.13 on the
insurance coverage of irrevocable trust
accounts, a revocable trust account shall
continue to be insured under the
provisions of this section even if the
corresponding revocable trust, upon the
death of one or more of the owners
thereof, converts, in part or entirely, to
an irrevocable trust. (Example: Assume
A and B have a trust account in
connection with a living trust, of which
VerDate Aug<31>2005
13:34 Sep 29, 2008
Jkt 214001
they are joint grantors. If upon the death
of either A or B the trust transforms into
an irrevocable trust as to the deceased
grantor’s ownership in the trust, the
account will continue to be insured
under the provisions of this section.)
(i) This section shall be effective as of
September 26, 2008 for all existing and
future revocable trust accounts and for
existing and future irrevocable trust
accounts resulting from formal
revocable trust accounts.
Dated at Washington DC, this 26th day of
September 2008.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. E8–23058 Filed 9–26–08; 4:15 pm]
BILLING CODE 6714–01–P
FEDERAL HOUSING FINANCE BOARD
12 CFR Part 906
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Part 1206
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Office of Federal Housing Enterprise
Oversight
12 CFR Part 1701
RIN 2590–AA00
Assessments
AGENCIES: Federal Housing Finance
Board; Office of Federal Housing
Enterprise Oversight; Federal Housing
Finance Agency.
ACTION: Final rule.
The Federal Housing Finance
Board, Office of Federal Housing
Enterprise Oversight and Federal
Housing Finance Agency (FHFA) are
establishing policy and procedures for
the FHFA to impose assessments on the
Federal National Mortgage Association
(Fannie Mae), Federal Home Loan
Mortgage Corporation (Freddie Mac),
and Federal Home Loan Banks (Banks)
(collectively, Regulated Entities),
through a final rule, pursuant to 12
U.S.C. 4516.
DATES: The final rule will become
effective on September 30, 2008.
FOR FURTHER INFORMATION CONTACT:
Frank Wright, Senior Counsel (OFHEO),
(202) 414–6439; Mark Kinsey, Chief
Financial Officer (OFHEO), (202) 414–
3816; Michele Horowitz, Chief Financial
SUMMARY:
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Officer (FHFB), (202) 408–2878; Janice
A. Kaye, Associate General Counsel
(FHFB), (202) 408–2505 (not toll free
numbers), Fourth Floor, 1700 G Street,
NW., Washington DC 20552. The
telephone number for the
Telecommunications Device for the Deaf
is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
On July 30, 2008, the President signed
the Federal Housing Finance Regulatory
Reform Act of 2008 (Act) (Pub. L. 110–
289, 122 Stat. 2564). Among other
things, the Act transferred the
supervisory and oversight
responsibilities over the Banks, Fannie
Mae, and Freddie Mac to a new
independent executive branch agency
known as the Federal Housing Finance
Agency. To fund the operations of the
FHFA, the Act amended section 1316 of
the Federal Housing Enterprises
Financial Safety and Soundness Act of
1992 (Safety and Soundness Act),
codified at 12 U.S.C. 4516. The Act also
removed the provisions of section 38 of
the Federal Home Loan Bank Act, which
were codified at 12 U.S.C. 1438(b), that
had authorized the Federal Housing
Finance Board (FHFB) to impose
assessments on the Banks in an amount
sufficient to provide for the payment of
the FHFB’s estimated expenses for the
period covered by the assessment. This
final rule will implement the FHFA’s
authority to establish and collect
assessments from the Regulated Entities
and will also remove the regulatory
provisions that had implemented the
authority of the Office of Federal
Housing Enterprise Oversight (OFHEO)
to assess Fannie Mae and Freddie Mac
(12 CFR part 1701) and the authority of
the FHFB to assess the Banks (12 CFR
906.1–2).
II. Analysis of the Final Rule
In accordance with section 1316A of
the Act, part 1206 of the final rule
authorizes the FHFA to impose
assessments on the Regulated Entities to
pay its estimated costs and expenses.
See 12 U.S.C. 4516. The rule recognizes
and addresses the differences between
the Banks and the Enterprises, where
appropriate.
The final rule authorizes the FHFA to
establish annual assessments for the
Regulated Entities to provide for the
payment of the FHFA’s costs and
expenses and maintain a working
capital fund. The final rule provides for
the allocation of the annual assessments
between the Enterprises and the Banks,
with the Enterprises paying
proportional shares sufficient to provide
for payment of the costs and expenses
E:\FR\FM\30SER1.SGM
30SER1
Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations
relating to the Enterprises, and the
Banks paying proportional shares
sufficient to provide for payment of the
costs and expenses relating to the
Banks. The shares paid by the
Enterprises will be based on the
proportions of total exposure for the
Enterprises, and the shares paid by the
Banks will be based on the proportions
of their minimum required regulatory
capital, a measure based on the capital
that the Banks are required to hold by
their regulator, rather than a measure of
actual capital held. Under this rule,
each Regulated Entity must pay an
amount equal to one-half of its annual
assessment twice each year. This
represents a significant change to the
assessment procedure of the FHFB,
under which the FHFB made an
assessment annually and the Banks
made payments in monthly
installments.
This final rule also establishes the
procedure for the FHFA to increase or
adjust the amount of the semiannual
payment for a Regulated Entity or to
make additional assessments for a
Regulated Entity, under certain
circumstances.
This final rule also implements
another significant change in
establishing the procedures for
collecting funds for a working capital
fund for the FHFA, under which the
FHFA shall collect those assessments
deemed necessary to establish an
operating reserve that is intended to
provide for the payment of large or
multiyear capital and operating
expenditures, as well as unanticipated
expenses.
The final rule also implements notice
and review provisions for the FHFA
under which the FHFA will provide to
each Regulated Entity written notice of
the projected budget for the FHFA for
the upcoming year, and the assessments
and semiannual payments to be
collected under this rule.
ebenthall on PROD1PC60 with RULES
Notice and Public Participation
The notice and comment procedure
required by the Administrative
Procedure Act is inapplicable to this
final rule because it is a rule of agency
procedure. See 5 U.S.C. 553(b)(3)(A).
Paperwork Reduction Act
The regulation does not contain any
information collection requirement that
requires the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
3501 et seq.).
Regulatory Flexibility Act
Because the FHFA is promulgating
part 1206 in the form of a final rule and
VerDate Aug<31>2005
13:34 Sep 29, 2008
Jkt 214001
not as a proposed rule, the provisions of
the Regulatory Flexibility Act do not
apply. See 5 U.S.C. 601(2), 603(a).
List of Subjects
12 CFR Part 906
Assessments, Federal home loan
banks, Government contracts, Minority
businesses, Mortgages, Reporting and
recordkeeping requirements, Women
and minority businesses.
12 CFR Part 1206
Assessments, Federal home loan
banks, Government Sponsored
Enterprises, Reporting and
recordkeeping requirements.
12 CFR Part 1701
Government Sponsored Enterprises,
Reporting and recordkeeping
requirements.
Authority and Issuance
Accordingly, for the reasons stated in
the preamble, the Federal Housing
Finance Agency hereby amends
chapters IX, XII, and XVII of Title 12,
Code of Federal Regulations as follows:
■
Chapter IX—Federal Housing Finance
Board
PART 906—OPERATIONS
1. The authority citation for part 906
is revised to read as follows:
■
Authority: 12 U.S.C. 4516.
Subpart A—[Removed]
2. Remove and reserve subpart A,
consisting of §§ 906.1 through 906.2.
■
Chapter XII—Federal Housing Finance
Agency
3. Add Subchapter A, consisting of
part 1206 to read as follows:
■
Subchapter A—Organization and
Operations
PART 1206—ASSESSMENTS
Sec.
1206.1
1206.2
1206.3
1206.4
1206.5
1206.6
1206.7
1206.8
Purpose.
Definitions.
Annual assessments.
Increased costs of regulation.
Working capital fund.
Notice and review.
Delinquent payment.
Enforcement of payment.
Purpose.
This part sets forth the policy and
procedures of the FHFA with respect to
the establishment and collection of the
assessments of the Regulated Entities
under 12 U.S.C. 4516.
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
Definitions.
As used in this part:
Act means the Federal Housing
Finance Regulatory Reform Act of 2008.
Adequately capitalized means the
adequately capitalized capital
classification under 12 U.S.C. 1364 and
related regulations.
Director means the Director of the
Federal Housing Finance Agency or his
or her designee.
Enterprise means the Federal National
Mortgage Association or the Federal
Home Loan Mortgage Corporation; and
‘‘Enterprises’’ means, collectively, the
Federal National Mortgage Association
and the Federal Home Loan Mortgage
Corporation.
Federal Home Loan Bank, or Bank,
means a Federal Home Loan Bank
established under section 12 of the
Federal Home Loan Bank Act (12 U.S.C.
1432).
FHFA means the Federal Housing
Finance Agency.
Minimum required regulatory capital
means the highest amount of capital
necessary for a Bank to comply with any
of the capital requirements established
by the Director and applicable to it.
Regulated Entity means the Federal
National Mortgage Association, the
Federal Home Loan Mortgage
Corporation, or any of the Federal Home
Loan Banks.
Surplus funds means any amounts
that are not obligated as of September 30
of the fiscal year for which the
assessment was made.
Total exposure means the sum, as of
the most recent June quarterly minimum
capital report of the Enterprise, of the
amounts of the following assets and offbalance sheet obligations that are used
to calculate the quarterly minimum
capital requirement of the Enterprise
under 12 CFR part 1750:
(1) On-balance sheet assets;
(2) Guaranteed mortgage-backed
securities; and
(3) Other off-balance sheet obligations
as determined by the Director.
Working capital fund means an
account for amounts collected from the
Regulated Entities to establish an
operating reserve that is intended to
provide for the payment of large or
multiyear capital and operating
expenditures, as well as unanticipated
expenses.
§ 1206.3
Authority: 12 U.S.C. 4516.
§ 1206.1
§ 1206.2
56713
Annual assessments.
(a) Establishing assessments. The
Director shall establish annual
assessments on the Regulated Entities in
an amount sufficient to maintain a
working capital fund and provide for
the payment of the FHFA’s costs and
expenses, including, but not limited to:
E:\FR\FM\30SER1.SGM
30SER1
ebenthall on PROD1PC60 with RULES
56714
Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations
(1) Expenses of any examinations
under 12 U.S.C. 4517 and section 20 of
the Federal Home Loan Bank Act (12
U.S.C. 1440);
(2) Expenses of obtaining any reviews
and credit assessments under 12 U.S.C.
4519;
(3) Expenses of any enforcement
activities under 12 U.S.C. 3645;
(4) Expenses of other FHFA litigation
under 12 U.S.C. 4513;
(5) Expenses relating to the
maintenance of the FHFA records
relating to examinations and other
reviews of the Regulated Entities;
(6) Such amounts in excess of actual
expenses for any given year deemed
necessary to maintain a working capital
fund;
(7) Expenses relating to monitoring
and ensuring compliance with housing
goals;
(8) Expenses relating to conducting
reviews of new products;
(9) Expenses related to affordable
housing and community programs;
(10) Other administrative expenses of
the FHFA;
(11) Expenses related to preparing
reports and studies;
(12) Expenses relating to the
collection of data and development of
systems to calculate the House Price
Index (HPI) and the conforming loan
limit;
(13) Amounts deemed necessary by
the Director to wind up the affairs of the
Office of Federal Housing Enterprise
Oversight and the Federal Housing
Finance Board; and
(14) Expenses relating to other
responsibilities of the FHFA under the
Safety and Soundness Act, the Federal
Home Loan Bank Act and the Act.
(b) Allocating assessments. The
Director shall allocate the annual
assessments as follows:
(1) Enterprises. Assessments collected
from the Enterprises shall not exceed
amounts sufficient to provide for
payment of the costs and expenses
relating to the Enterprises as determined
by the Director. Each Enterprise shall
pay a proportional share that bears the
same ratio to the total portion of the
annual assessment allocated to the
Enterprises that the total exposure of
each Enterprise bears to the total
exposure of both Enterprises.
(2) Federal Home Loan Banks.
Assessments collected from the Banks
shall not exceed amounts sufficient to
provide for payment of the costs and
expenses relating to the Banks as
determined by the Director. Each Bank
shall pay a pro rata share of the annual
assessments based on the ratio between
its minimum required regulatory capital
and the aggregate minimum required
regulatory capital of every Bank.
VerDate Aug<31>2005
13:34 Sep 29, 2008
Jkt 214001
(c) Timing and amount of semiannual
payment. Each Regulated Entity shall
pay on or before October 1 and April 1
an amount equal to one-half of its
annual assessment.
(d) Surplus funds. Surplus funds shall
be credited to the annual assessment by
reducing the amount collected in the
following semiannual period by the
amount of the surplus funds. Surplus
funds shall be allocated to all Regulated
Entities in the same proportion in which
they were collected, except as
determined by the Director.
§ 1206.4
Increased costs of regulation.
(a) Increase for inadequate
capitalization. The Director may, at his
or her discretion, increase the amount of
a semiannual payment allocated to a
Regulated Entity that is not classified as
adequately capitalized to pay additional
estimated costs of regulation of that
Regulated Entity.
(b) Increase for enforcement activities.
The Director may, at his or her
discretion, adjust the amount of a
semiannual payment allocated to a
Regulated Entity to ensure that the
Regulated Entity bears the estimated
costs of enforcement activities under the
Act related to that Regulated Entity.
(c) Additional assessment for
deficiencies. At any time, the Director
may make and collect from any
Regulated Entity an assessment, payable
immediately or through increased
semiannual payments, to cover the
estimated amount of any deficiency for
the semiannual period as a result of
increased costs of regulation of a
Regulated Entity due to its classification
as other than adequately capitalized, or
as a result of enforcement activities
related to that Regulated Entity. Any
amount remaining from such additional
assessment and the semiannual
payments at the end of any semiannual
period during which such an additional
assessment is made shall be deducted
pro rata (based upon the amount of the
additional assessments) from the
assessment for the following semiannual
period for that Regulated Entity.
§ 1206.5
Working capital fund.
(a) Assessments. The Director shall
establish and collect from the Regulated
Entities such assessments he or she
deems necessary to maintain a working
capital fund.
(b) Purposes. Assessments collected to
maintain the working capital fund shall
be used to establish an operating reserve
and to provide for the payment of large
or multiyear capital and operating
expenditures as well as unanticipated
expenses.
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
(c) Remittance of excess assessed
funds. At the end of each year for which
an assessment under this section is
made, the Director shall remit to each
Regulated Entity any amount of assessed
and collected funds in excess of the
amount the Director deems necessary to
maintain a working capital fund in the
same proportions as paid under the
most recent annual assessment.
§ 1206.6
Notice and review.
(a) Written notice of budget. The
Director shall provide to each Regulated
Entity written notice of the projected
budget for the Agency for the upcoming
fiscal year. Such notice shall be
provided at least 30 days before the
beginning of the applicable fiscal year.
(b) Written notice of assessments. The
Director shall provide each Regulated
Entity with written notice of
assessments as follows:
(1) Annual assessments. The Director
shall provide each Regulated Entity
with written notice of the annual
assessment and the semiannual
payments to be collected under this
part. Notice of the annual assessment
and semiannual payments shall be
provided before the start of the new
fiscal year.
(2) Immediate assessments. The
Director shall provide each Regulated
Entity with written notice of any
immediate assessments to be collected
under § 1206.4 of this chapter. Notice of
any immediate assessment and the
required payments shall be provided at
such reasonable time as determined by
the Director.
(3) Changes to assessments. The
Director shall provide each Regulated
Entity with written notice of any
changes in the assessment procedures
that the Director, in his or her sole
discretion, deems necessary under the
circumstances.
(c) Request for review. At the written
request of a Regulated Entity, the
Director, in his or her discretion, may
review the calculation of the
proportional share of the annual
assessment, the semiannual payments,
and any partial payments to be collected
under this part. The determination of
the Director upon such review is final.
Except as provided by the Director,
review by the Director does not suspend
the requirement that the Regulated
Entity make the semiannual payment or
partial payment on or before the date it
is due. Any adjustments determined
appropriate shall be credited or
otherwise addressed by the following
year’s assessment for that entity.
E:\FR\FM\30SER1.SGM
30SER1
Federal Register / Vol. 73, No. 190 / Tuesday, September 30, 2008 / Rules and Regulations
§ 1206.7
Delinquent payment.
§ 1206.8
Enforcement of payment.
The Director may enforce the payment
of any assessment under 12 U.S.C. 4631
(cease-and-desist proceedings), 12
U.S.C. 4632 (temporary cease-and-desist
orders), and 12 U.S.C. 4626 (civil money
penalties).
Chapter XVII—Office of Federal Housing
Enterprise Oversight, Department of
Housing and Urban Development
PART 1701—[REMOVED]
■
4. Remove part 1701.
Dated: September 25, 2008.
James B. Lockhart III,
Director, Federal Housing Finance Agency.
[FR Doc. E8–23046 Filed 9–26–08; 4:15 pm]
BILLING CODE 4220–01–P
DEPARTMENT OF HOMELAND
SECURITY
DEPARTMENT OF THE TREASURY
19 CFR Parts 10, 163, and 178
[Docket No. USCBP–2007–0062; CBP Dec.
08–24]
RIN 1505–AB82
Haitian Hemispheric Opportunity
Through Partnership Encouragement
Acts of 2006 and 2008
Customs and Border
Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Final rule.
ebenthall on PROD1PC60 with RULES
AGENCIES:
SUMMARY: This document adopts as a
final rule, with some changes, interim
amendments to title 19 of the Code of
Federal Regulations which were
published in the Federal Register on
June 22, 2007, as CBP Dec. 07–43 to
implement the duty-free provisions of
the Haitian Hemispheric Opportunity
through Partnership Encouragement
(‘‘HOPE I’’) Act of 2006. The regulatory
amendments adopted as a final rule in
this document include changes
necessitated by enactment of the Haitian
Hemispheric Opportunity through
Partnership Encouragement (‘‘HOPE II’’)
Act of 2008.
13:34 Sep 29, 2008
Jkt 214001
Background
On June 22, 2007, interim regulations
were promulgated to implement the
duty-free provisions of the Haitian
Hemispheric Opportunity through
Partnership Encouragement (‘‘HOPE I’’)
Act of 2006. The regulatory
amendments adopted as a final rule in
this document include changes
necessitated by the June 18, 2008
enactment of the Haitian Hemispheric
Opportunity through Partnership
Encouragement (‘‘HOPE II’’) Act of
2008. Detailed information on both the
HOPE I and HOPE II Acts follows.
Haitian Hemispheric Opportunity
Through Partnership Encouragement
Act of 2006
Bureau of Customs and Border
Protection
VerDate Aug<31>2005
This final rule is effective on
September 30, 2008.
FOR FURTHER INFORMATION CONTACT:
Textile Operational Aspects: Robert
Abels, Office of International Trade,
(202) 863–6503.
Other Operational Aspects: Heather
Sykes, Office of International Trade,
(202) 863–6099.
Legal Aspects: Cynthia Reese, Office
of International Trade, (202) 572–8812,
or Craig Walker, Office of International
Trade, (202) 572–8836.
SUPPLEMENTARY INFORMATION:
DATES:
The Director may assess interest and
penalties on any delinquent semiannual
payment or other payment assessed
under this part in accordance with 31
U.S.C. 3717 (interest and penalty on
claims) and part 1704 of this title (debt
collection).
On December 20, 2006, the President
signed into law the Tax Relief and
Health Care Act of 2006 (‘‘the 2006
Act’’), Public Law 109–432, 120 Stat.
2922. Title V of the Act concerns the
extension of certain trade benefits to
Haiti and is referred to in the Act as the
‘‘Haitian Hemispheric Opportunity
through Partnership Encouragement Act
of 2006’’ (‘‘HOPE I Act’’).
Section 5002 of the Act amended the
Caribbean Basin Economic Recovery Act
(the CBERA, also referred to as the
Caribbean Basin Initiative, or CBI,
statute codified at 19 U.S.C. 2701–2707)
by adding a new section 213A, entitled
‘‘Special Rules for Haiti’’ and codified at
19 U.S.C. 2703A, to authorize the
President to extend additional trade
benefits to Haiti for a five-year period
(ending on December 19, 2011) if the
President determines that the country
meets certain specified eligibility
conditions and requirements. As created
by the HOPE I Act, section 213A of the
CBERA consisted of six principal
subsections, each of which is
summarized below.
Subsection (a) of section 213A of the
CBERA set forth definitions of several
terms used in section 213A. Subsection
(b) of section 213A specified the
conditions and requirements that must
be met for certain apparel articles from
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
56715
Haiti to receive duty-free treatment.
Subsection (c) of section 213A of the
CBERA provided for the duty-free
treatment of any article classifiable in
subheading 8544.30.00 of the
Harmonized Tariff Schedule of the
United States (HTSUS) (wiring sets), as
in effect on December 20, 2006, that is
the product or manufacture of Haiti and
is imported directly from Haiti into the
customs territory of the United States,
provided a specified value-content
requirement is met.
Subsection (d) of section 213A set
forth certain eligibility requirements
that Haiti must meet as a prerequisite
for articles to receive duty-free
treatment under this section. This
subsection required that the President
determine whether Haiti met these
requirements within 90 days after the
date of enactment of the HOPE Act (or
by March 20, 2007).
Subsection (e) of section 213A
(redesignated as subsection (f) by HOPE
II Act) provided that preferential tariff
treatment for apparel articles under this
section shall not apply unless the
President certifies to Congress that Haiti
is meeting certain conditions, such as
the adoption of an effective visa system,
that are primarily intended to avoid
illegal transshipment situations.
Subsection (f) of section 213A
(redesignated as subsection (g) by HOPE
II Act) provided that the President shall
issue regulations to carry out this
section not later than 180 days after the
date of enactment of the HOPE Act.
Section 213A(f) further provided that
the President shall consult with the
Committee on Ways and Means of the
House of Representatives and the
Committee on Finance of the Senate in
preparing such regulations. CBP
consulted with the Committee on Ways
and Means and the Committee on
Finance regarding the implementing
interim regulations.
For a more detailed description of the
statutory provisions set forth in the
HOPE I Act, please see CBP Dec. 07–43.
On March 19, 2007, the President
signed Proclamation 8114 to implement
the provisions of the HOPE I Act, among
other purposes. The Proclamation,
which was published in the Federal
Register on March 22, 2007 (72 FR
13655), included determinations by the
President that Haiti (1) meets the
eligibility requirements set forth in
section 213A(d) of the CBERA and (2) is
meeting the conditions set forth in
section 213A(e) (redesignated as section
213A(f) by HOPE II). The Proclamation
also modified subchapter XX of Chapter
98 of the Harmonized Tariff Schedule of
the United States (‘‘HTSUS’’) as set forth
in Annex 1 to the Proclamation. The
E:\FR\FM\30SER1.SGM
30SER1
]]>Agencies
[Federal Register Volume 73, Number 190 (Tuesday, September 30, 2008)]
[Rules and Regulations]
[Pages 56712-56715]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-23046]
=======================================================================
-----------------------------------------------------------------------
FEDERAL HOUSING FINANCE BOARD
12 CFR Part 906
FEDERAL HOUSING FINANCE AGENCY
12 CFR Part 1206
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of Federal Housing Enterprise Oversight
12 CFR Part 1701
RIN 2590-AA00
Assessments
AGENCIES: Federal Housing Finance Board; Office of Federal Housing
Enterprise Oversight; Federal Housing Finance Agency.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Board, Office of Federal Housing
Enterprise Oversight and Federal Housing Finance Agency (FHFA) are
establishing policy and procedures for the FHFA to impose assessments
on the Federal National Mortgage Association (Fannie Mae), Federal Home
Loan Mortgage Corporation (Freddie Mac), and Federal Home Loan Banks
(Banks) (collectively, Regulated Entities), through a final rule,
pursuant to 12 U.S.C. 4516.
DATES: The final rule will become effective on September 30, 2008.
FOR FURTHER INFORMATION CONTACT: Frank Wright, Senior Counsel (OFHEO),
(202) 414-6439; Mark Kinsey, Chief Financial Officer (OFHEO), (202)
414-3816; Michele Horowitz, Chief Financial Officer (FHFB), (202) 408-
2878; Janice A. Kaye, Associate General Counsel (FHFB), (202) 408-2505
(not toll free numbers), Fourth Floor, 1700 G Street, NW., Washington
DC 20552. The telephone number for the Telecommunications Device for
the Deaf is (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On July 30, 2008, the President signed the Federal Housing Finance
Regulatory Reform Act of 2008 (Act) (Pub. L. 110-289, 122 Stat. 2564).
Among other things, the Act transferred the supervisory and oversight
responsibilities over the Banks, Fannie Mae, and Freddie Mac to a new
independent executive branch agency known as the Federal Housing
Finance Agency. To fund the operations of the FHFA, the Act amended
section 1316 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (Safety and Soundness Act), codified at 12 U.S.C.
4516. The Act also removed the provisions of section 38 of the Federal
Home Loan Bank Act, which were codified at 12 U.S.C. 1438(b), that had
authorized the Federal Housing Finance Board (FHFB) to impose
assessments on the Banks in an amount sufficient to provide for the
payment of the FHFB's estimated expenses for the period covered by the
assessment. This final rule will implement the FHFA's authority to
establish and collect assessments from the Regulated Entities and will
also remove the regulatory provisions that had implemented the
authority of the Office of Federal Housing Enterprise Oversight (OFHEO)
to assess Fannie Mae and Freddie Mac (12 CFR part 1701) and the
authority of the FHFB to assess the Banks (12 CFR 906.1-2).
II. Analysis of the Final Rule
In accordance with section 1316A of the Act, part 1206 of the final
rule authorizes the FHFA to impose assessments on the Regulated
Entities to pay its estimated costs and expenses. See 12 U.S.C. 4516.
The rule recognizes and addresses the differences between the Banks and
the Enterprises, where appropriate.
The final rule authorizes the FHFA to establish annual assessments
for the Regulated Entities to provide for the payment of the FHFA's
costs and expenses and maintain a working capital fund. The final rule
provides for the allocation of the annual assessments between the
Enterprises and the Banks, with the Enterprises paying proportional
shares sufficient to provide for payment of the costs and expenses
[[Page 56713]]
relating to the Enterprises, and the Banks paying proportional shares
sufficient to provide for payment of the costs and expenses relating to
the Banks. The shares paid by the Enterprises will be based on the
proportions of total exposure for the Enterprises, and the shares paid
by the Banks will be based on the proportions of their minimum required
regulatory capital, a measure based on the capital that the Banks are
required to hold by their regulator, rather than a measure of actual
capital held. Under this rule, each Regulated Entity must pay an amount
equal to one-half of its annual assessment twice each year. This
represents a significant change to the assessment procedure of the
FHFB, under which the FHFB made an assessment annually and the Banks
made payments in monthly installments.
This final rule also establishes the procedure for the FHFA to
increase or adjust the amount of the semiannual payment for a Regulated
Entity or to make additional assessments for a Regulated Entity, under
certain circumstances.
This final rule also implements another significant change in
establishing the procedures for collecting funds for a working capital
fund for the FHFA, under which the FHFA shall collect those assessments
deemed necessary to establish an operating reserve that is intended to
provide for the payment of large or multiyear capital and operating
expenditures, as well as unanticipated expenses.
The final rule also implements notice and review provisions for the
FHFA under which the FHFA will provide to each Regulated Entity written
notice of the projected budget for the FHFA for the upcoming year, and
the assessments and semiannual payments to be collected under this
rule.
Notice and Public Participation
The notice and comment procedure required by the Administrative
Procedure Act is inapplicable to this final rule because it is a rule
of agency procedure. See 5 U.S.C. 553(b)(3)(A).
Paperwork Reduction Act
The regulation does not contain any information collection
requirement that requires the approval of the Office of Management and
Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).
Regulatory Flexibility Act
Because the FHFA is promulgating part 1206 in the form of a final
rule and not as a proposed rule, the provisions of the Regulatory
Flexibility Act do not apply. See 5 U.S.C. 601(2), 603(a).
List of Subjects
12 CFR Part 906
Assessments, Federal home loan banks, Government contracts,
Minority businesses, Mortgages, Reporting and recordkeeping
requirements, Women and minority businesses.
12 CFR Part 1206
Assessments, Federal home loan banks, Government Sponsored
Enterprises, Reporting and recordkeeping requirements.
12 CFR Part 1701
Government Sponsored Enterprises, Reporting and recordkeeping
requirements.
Authority and Issuance
0
Accordingly, for the reasons stated in the preamble, the Federal
Housing Finance Agency hereby amends chapters IX, XII, and XVII of
Title 12, Code of Federal Regulations as follows:
Chapter IX--Federal Housing Finance Board
PART 906--OPERATIONS
0
1. The authority citation for part 906 is revised to read as follows:
Authority: 12 U.S.C. 4516.
Subpart A--[Removed]
0
2. Remove and reserve subpart A, consisting of Sec. Sec. 906.1 through
906.2.
Chapter XII--Federal Housing Finance Agency
0
3. Add Subchapter A, consisting of part 1206 to read as follows:
Subchapter A--Organization and Operations
PART 1206--ASSESSMENTS
Sec.
1206.1 Purpose.
1206.2 Definitions.
1206.3 Annual assessments.
1206.4 Increased costs of regulation.
1206.5 Working capital fund.
1206.6 Notice and review.
1206.7 Delinquent payment.
1206.8 Enforcement of payment.
Authority: 12 U.S.C. 4516.
Sec. 1206.1 Purpose.
This part sets forth the policy and procedures of the FHFA with
respect to the establishment and collection of the assessments of the
Regulated Entities under 12 U.S.C. 4516.
Sec. 1206.2 Definitions.
As used in this part:
Act means the Federal Housing Finance Regulatory Reform Act of
2008.
Adequately capitalized means the adequately capitalized capital
classification under 12 U.S.C. 1364 and related regulations.
Director means the Director of the Federal Housing Finance Agency
or his or her designee.
Enterprise means the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation; and ``Enterprises'' means,
collectively, the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation.
Federal Home Loan Bank, or Bank, means a Federal Home Loan Bank
established under section 12 of the Federal Home Loan Bank Act (12
U.S.C. 1432).
FHFA means the Federal Housing Finance Agency.
Minimum required regulatory capital means the highest amount of
capital necessary for a Bank to comply with any of the capital
requirements established by the Director and applicable to it.
Regulated Entity means the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, or any of the Federal Home
Loan Banks.
Surplus funds means any amounts that are not obligated as of
September 30 of the fiscal year for which the assessment was made.
Total exposure means the sum, as of the most recent June quarterly
minimum capital report of the Enterprise, of the amounts of the
following assets and off-balance sheet obligations that are used to
calculate the quarterly minimum capital requirement of the Enterprise
under 12 CFR part 1750:
(1) On-balance sheet assets;
(2) Guaranteed mortgage-backed securities; and
(3) Other off-balance sheet obligations as determined by the
Director.
Working capital fund means an account for amounts collected from
the Regulated Entities to establish an operating reserve that is
intended to provide for the payment of large or multiyear capital and
operating expenditures, as well as unanticipated expenses.
Sec. 1206.3 Annual assessments.
(a) Establishing assessments. The Director shall establish annual
assessments on the Regulated Entities in an amount sufficient to
maintain a working capital fund and provide for the payment of the
FHFA's costs and expenses, including, but not limited to:
[[Page 56714]]
(1) Expenses of any examinations under 12 U.S.C. 4517 and section
20 of the Federal Home Loan Bank Act (12 U.S.C. 1440);
(2) Expenses of obtaining any reviews and credit assessments under
12 U.S.C. 4519;
(3) Expenses of any enforcement activities under 12 U.S.C. 3645;
(4) Expenses of other FHFA litigation under 12 U.S.C. 4513;
(5) Expenses relating to the maintenance of the FHFA records
relating to examinations and other reviews of the Regulated Entities;
(6) Such amounts in excess of actual expenses for any given year
deemed necessary to maintain a working capital fund;
(7) Expenses relating to monitoring and ensuring compliance with
housing goals;
(8) Expenses relating to conducting reviews of new products;
(9) Expenses related to affordable housing and community programs;
(10) Other administrative expenses of the FHFA;
(11) Expenses related to preparing reports and studies;
(12) Expenses relating to the collection of data and development of
systems to calculate the House Price Index (HPI) and the conforming
loan limit;
(13) Amounts deemed necessary by the Director to wind up the
affairs of the Office of Federal Housing Enterprise Oversight and the
Federal Housing Finance Board; and
(14) Expenses relating to other responsibilities of the FHFA under
the Safety and Soundness Act, the Federal Home Loan Bank Act and the
Act.
(b) Allocating assessments. The Director shall allocate the annual
assessments as follows:
(1) Enterprises. Assessments collected from the Enterprises shall
not exceed amounts sufficient to provide for payment of the costs and
expenses relating to the Enterprises as determined by the Director.
Each Enterprise shall pay a proportional share that bears the same
ratio to the total portion of the annual assessment allocated to the
Enterprises that the total exposure of each Enterprise bears to the
total exposure of both Enterprises.
(2) Federal Home Loan Banks. Assessments collected from the Banks
shall not exceed amounts sufficient to provide for payment of the costs
and expenses relating to the Banks as determined by the Director. Each
Bank shall pay a pro rata share of the annual assessments based on the
ratio between its minimum required regulatory capital and the aggregate
minimum required regulatory capital of every Bank.
(c) Timing and amount of semiannual payment. Each Regulated Entity
shall pay on or before October 1 and April 1 an amount equal to one-
half of its annual assessment.
(d) Surplus funds. Surplus funds shall be credited to the annual
assessment by reducing the amount collected in the following semiannual
period by the amount of the surplus funds. Surplus funds shall be
allocated to all Regulated Entities in the same proportion in which
they were collected, except as determined by the Director.
Sec. 1206.4 Increased costs of regulation.
(a) Increase for inadequate capitalization. The Director may, at
his or her discretion, increase the amount of a semiannual payment
allocated to a Regulated Entity that is not classified as adequately
capitalized to pay additional estimated costs of regulation of that
Regulated Entity.
(b) Increase for enforcement activities. The Director may, at his
or her discretion, adjust the amount of a semiannual payment allocated
to a Regulated Entity to ensure that the Regulated Entity bears the
estimated costs of enforcement activities under the Act related to that
Regulated Entity.
(c) Additional assessment for deficiencies. At any time, the
Director may make and collect from any Regulated Entity an assessment,
payable immediately or through increased semiannual payments, to cover
the estimated amount of any deficiency for the semiannual period as a
result of increased costs of regulation of a Regulated Entity due to
its classification as other than adequately capitalized, or as a result
of enforcement activities related to that Regulated Entity. Any amount
remaining from such additional assessment and the semiannual payments
at the end of any semiannual period during which such an additional
assessment is made shall be deducted pro rata (based upon the amount of
the additional assessments) from the assessment for the following
semiannual period for that Regulated Entity.
Sec. 1206.5 Working capital fund.
(a) Assessments. The Director shall establish and collect from the
Regulated Entities such assessments he or she deems necessary to
maintain a working capital fund.
(b) Purposes. Assessments collected to maintain the working capital
fund shall be used to establish an operating reserve and to provide for
the payment of large or multiyear capital and operating expenditures as
well as unanticipated expenses.
(c) Remittance of excess assessed funds. At the end of each year
for which an assessment under this section is made, the Director shall
remit to each Regulated Entity any amount of assessed and collected
funds in excess of the amount the Director deems necessary to maintain
a working capital fund in the same proportions as paid under the most
recent annual assessment.
Sec. 1206.6 Notice and review.
(a) Written notice of budget. The Director shall provide to each
Regulated Entity written notice of the projected budget for the Agency
for the upcoming fiscal year. Such notice shall be provided at least 30
days before the beginning of the applicable fiscal year.
(b) Written notice of assessments. The Director shall provide each
Regulated Entity with written notice of assessments as follows:
(1) Annual assessments. The Director shall provide each Regulated
Entity with written notice of the annual assessment and the semiannual
payments to be collected under this part. Notice of the annual
assessment and semiannual payments shall be provided before the start
of the new fiscal year.
(2) Immediate assessments. The Director shall provide each
Regulated Entity with written notice of any immediate assessments to be
collected under Sec. 1206.4 of this chapter. Notice of any immediate
assessment and the required payments shall be provided at such
reasonable time as determined by the Director.
(3) Changes to assessments. The Director shall provide each
Regulated Entity with written notice of any changes in the assessment
procedures that the Director, in his or her sole discretion, deems
necessary under the circumstances.
(c) Request for review. At the written request of a Regulated
Entity, the Director, in his or her discretion, may review the
calculation of the proportional share of the annual assessment, the
semiannual payments, and any partial payments to be collected under
this part. The determination of the Director upon such review is final.
Except as provided by the Director, review by the Director does not
suspend the requirement that the Regulated Entity make the semiannual
payment or partial payment on or before the date it is due. Any
adjustments determined appropriate shall be credited or otherwise
addressed by the following year's assessment for that entity.
[[Page 56715]]
Sec. 1206.7 Delinquent payment.
The Director may assess interest and penalties on any delinquent
semiannual payment or other payment assessed under this part in
accordance with 31 U.S.C. 3717 (interest and penalty on claims) and
part 1704 of this title (debt collection).
Sec. 1206.8 Enforcement of payment.
The Director may enforce the payment of any assessment under 12
U.S.C. 4631 (cease-and-desist proceedings), 12 U.S.C. 4632 (temporary
cease-and-desist orders), and 12 U.S.C. 4626 (civil money penalties).
Chapter XVII--Office of Federal Housing Enterprise Oversight,
Department of Housing and Urban Development
PART 1701--[REMOVED]
0
4. Remove part 1701.
Dated: September 25, 2008.
James B. Lockhart III,
Director, Federal Housing Finance Agency.
[FR Doc. E8-23046 Filed 9-26-08; 4:15 pm]
BILLING CODE 4220-01-P
