Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions, 19262-19263 [2013-07335]
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Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices
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there is no alternative source or
combination of alternative drinking
water sources which could physically,
legally and economically supply those
dependent upon the aquifer (U.S. EPA,
1987, Sole Source Aquifer Designation
Decision Process, Petition Review
Guidance).
Among the factors considered by the
Regional Administrator in connection
with the designation of an area under
Section 1424(e) are: (1) Whether the
Bainbridge Island Aquifer System is the
area’s sole or principal source of
drinking water and (2) whether
contamination of the aquifer system
would create a significant hazard to
public health. On the basis of technical
information available to the EPA, the
Regional Administrator has made the
following findings in favor of
designating the Bainbridge Island
Aquifer System a SSA:
1. The Bainbridge Island Aquifer
System currently serves more than
23,000 residents of Bainbridge Island.
One hundred percent of the current
population obtains their drinking water
from the petitioned aquifer system
either from individual wells or from one
of the more than 150 water systems on
the island.
2. There is no existing alternative
drinking water source or combination of
sources which supply drinking water to
the designated area, nor is there any
available cost effective future source
capable of supplying the drinking water
demands for the population served by
the aquifer service area. No potential
surface water bodies exist to provide a
source of drinking water, piping water
from the Kitsap Peninsula across Agate
Pass Bridge to Bainbridge Island is costprohibitive and installation of a
desalination plant is too costly.
3. Since groundwater contamination
can be difficult or sometimes impossible
to reverse and since the Bainbridge
community relies on the Bainbridge
Aquifer System for drinking water
purposes, contamination of the aquifer
system would pose a significant public
health hazard.
The legal and technical basis for the
proposal was outlined in an EPA
publication titled: ‘‘Support Document
for Sole Source Aquifer Designation of
the Bainbridge Island Aquifer System’’.
III. Description of the Bainbridge Island
Aquifer System
The petitioned area includes all of
Bainbridge Island. The island is a mix
of developed land and forests. Six
principal aquifers make up the
Bainbridge Island Aquifer System. On
island precipitation recharges the
aquifers and is the only source of
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recharge for lakes, ponds, and streams.
The island has a total of 53 miles of
seawater shoreline and the aquifer area
is bounded on all sides by Puget Sound.
Interior plateaus reach maximum
elevations of 300 to 400 feet above mean
sea level. The island can be divided into
12 drainage basins. Large volumes of
unconsolidated glacial and interglacial
materials from at least six advances and
retreats of Pleistocene continental
glaciers over the last 300,000 years has
shaped the present-day landscape and
underlying hydrostratigraphy of the
island and are host to the aquifers on
Bainbridge Island. The aquifer system is
vulnerable to contamination from
potential seawater intrusion, accidental
spills, petroleum projects, small
hazardous waste generators, household
hazardous waste disposal, leachate from
the closed island landfill, leachate from
the Wyckoff Superfund site in Eagle
Harbor, failing septic systems,
fertilizers, pesticides and herbicides and
improperly abandoned wells.
Bainbridge Island’s hydrogeologic
characteristics are similar to the
following Puget Sound islands whose
aquifers have already been designated as
SSA’s by EPA: Camano, Whidbey,
Marrowstone, Guemes and VashonMaury. Please see the Support
Document for a more detailed
hydrogeologic description.
IV. Information Utilized in
Determination
The information utilized in this
determination include the petition; U.S.
Geological Survey, 2011, Conceptual
Model and Numerical Simulation of the
Groundwater-Flow system of Bainbridge
Island, Washington, Scientific
Investigations Report 2011–5021, 96
pages; Washington Department of
Ecology, 2011a, Confirmed and
Suspected Contaminated Sites List,
Bainbridge Island City Strawberry Plant
Site, August 16; EPA guidance
documents and the City of Bainbridge
Water Resource Study (2000). For a
complete list of references used by the
petitioner see the Support Document.
V. Project Review
Publication of this determination
requires that EPA review proposed
projects with Federal financial
assistance in order to ensure that such
projects do not have the potential to
contaminate the Bainbridge Island SSA
so as to create a significant hazard to
public health. Proposed projects that are
funded entirely by state, local, or private
concerns are not subject to SSA review
by EPA. EPA does not review all
possible Federal financially-assisted
projects but tries to focus on those
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projects which pose the greatest risk to
public health. Memorandums of
Understanding between EPA and
various Federal funding agencies help
identify, coordinate and evaluate
projects.
VI. Summary
Today’s action affects the Bainbridge
Island Aquifer System located on
Bainbridge Island, Kitsap County,
Washington. Projects with federal
financial assistance proposed within the
Bainbridge Island Aquifer System will
be reviewed to ensure that their
activities will not endanger public
health through contamination of the
aquifer. A public notice regarding the
SSA designation request was published
in the Bainbridge Islander newspaper
on April 20, 2012. Seven comments
were received all in general support of
the designation of the Bainbridge Island
Aquifer System.
Authority: Section 1424(e) of the Safe
Drinking Water Act (42 U.S.C. 300h3(e), Pub.
L. 93–523 of December 16, 1974
Dated: March 21, 2013.
Rick Albright,
Acting Regional Administrator.
[FR Doc. 2013–07409 Filed 3–28–13; 8:45 am]
BILLING CODE 6560–50–P
FEDERAL HOUSING FINANCE
AGENCY
[No. 2013–N–04]
Notice of Annual Adjustment of the
Cap on Average Total Assets That
Defines Community Financial
Institutions
Federal Housing Finance
Agency.
ACTION: Notice.
AGENCY:
SUMMARY: The Federal Housing Finance
Agency (FHFA) has adjusted the cap on
average total assets that defines a
‘‘Community Financial Institution’’
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 took effect on January 1,
2013.
FOR FURTHER INFORMATION CONTACT:
Patricia L. Sweeney, Division of Federal
Home Loan Bank Regulation, (202) 649–
3311, Pat.Sweeney@fhfa.gov, or Eric M.
Raudenbush, Assistant General Counsel,
(202) 649–6421,
Eric.Raudenbush@fhfa.gov, (not toll-free
numbers), Federal Housing Finance
Agency, Constitution Center, 400
Seventh Street, SW., Washington, DC
20024.
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Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices
SUPPLEMENTARY INFORMATION:
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I. Statutory and Regulatory Background
The Federal Home Loan Bank Act
(Bank Act) confers upon insured
depository institutions that meet the
statutory definition of a ‘‘Community
Financial Institution’’ (CFI) certain
advantages over non-CFI insured
depository institutions in qualifying for
Federal Home Loan Bank (Bank)
membership, and in the purposes for
which they may receive long-term
advances and the collateral they may
pledge to secure advances.1 Section
2(10)(A) of the Bank Act and § 1263.1 of
FHFA’s regulations define a CFI as any
Bank member the deposits of which are
insured by the Federal Deposit
Insurance Corporation and that has
average total assets below a statutory
cap.2 The Bank Act was amended in
2008 to set the statutory cap at $1
billion and to require the Director of
FHFA to adjust the cap annually to
reflect the percentage increase in the
CPI–U, as published by the DOL, for the
prior year.3 For 2012, FHFA set the CFI
asset cap at $1,076,000,000, which
reflected a 3.4 percent increase over
2011, based upon the increase in the
CPI–U between 2010 and 2011. See 77
FR 14366 (Mar. 9, 2012).
II. The CFI Asset Cap For 2013
As of January 1, 2013, FHFA has
increased the CFI asset cap from
$1,076,000,000 to $1,095,000,000,
which reflects a 1.8 percent increase in
the unadjusted CPI–U from November
2011 to November 2012. The new
amount was obtained by rounding to the
nearest million, as has been the practice
for all prior adjustments. Consistent
with the practice of other Federal
agencies, FHFA bases the annual
adjustment to the CFI asset cap on the
percentage increase in the CPI–U from
November of the year prior to the
preceding calendar year to November of
the preceding calendar year, because the
November figures represent the most
recent available data as of January 1st of
the current calendar year.
In calculating the CFI asset cap, FHFA
uses CPI–U data that have not been
seasonally adjusted (i.e., the data have
not been adjusted to remove the
estimated effect of price changes that
normally occur at the same time and in
about the same magnitude every year).
The DOL encourages use of unadjusted
CPI–U data in applying ‘‘escalation’’
provisions such as that governing the
1 See
12 U.S.C. 1424(a), 1430(a).
12 U.S.C. 1422(10)(A); 12 CFR 1263.1.
3 See 12 U.S.C. 1422(10); 12 CFR 1263.1 (defining
the term CFI asset cap).
CFI asset cap, because the factors that
are used to seasonally adjust the data
are amended annually, and seasonally
adjusted data that are published earlier
are subject to revision for up to five
years following their original release.
Unadjusted data are not routinely
subject to revision, and previously
published unadjusted data are only
corrected when significant calculation
errors are discovered.
Dated: March 21, 2013.
Edward J. DeMarco,
Acting Director, Federal Housing Finance
Agency.
[FR Doc. 2013–07335 Filed 3–28–13; 8:45 am]
BILLING CODE 8070–01–P
FEDERAL HOUSING FINANCE
AGENCY
[No. 2013–N–05]
Lender Placed Insurance, Terms and
Conditions
Federal Housing Finance
Agency.
ACTION: Notice; input accepted.
AGENCY:
This Notice sets forth an approach to
address certain practices relating to
lender placed insurance that the Federal
Housing Finance Agency (FHFA)
considers contrary to prudent business
practice, to appropriate administration
of Fannie Mae and Freddie Mac (the
Enterprises) guaranteed loans, and
which expose the Enterprises to
potential losses as well as litigation and
reputation risks. While FHFA plans a
broader review of issues relating to the
market for lender placed insurance, that
includes receiving input from
government and private sector parties,
the practices that are addressed here are
considered sufficiently distinct as to
merit early action by the Agency acting
as Conservator for the Enterprises.
Background
The FHFA oversees the operations of
Fannie Mae and Freddie Mac. The
Enterprises are in conservatorships, and,
as Conservator, FHFA has statutory
obligations in its conduct of the
conservatorships, including preserving
and conserving assets.1 The Enterprises
have diverse relationships with sellerservicers, ranging from loan originations
to the administration of properties in
default. These relationships are
governed by their seller-servicer guides
and, in certain cases, by individual
contracts. Part of the administration by
servicers of the interests of the
2 See
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1 The duties and authorities of the Conservator
are set forth primarily at 12 U.S.C. 4617.
PO 00000
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19263
Enterprises relate to the maintenance of
properties.
Lender placed (or forced place)
insurance involves the imposition of
property and casualty insurance on a
property that does not have the coverage
required by their mortgage instruments.
This commonly occurs due to lapse of
voluntary insurance coverage for nonpayment of premium. The absence of
coverage triggers notifications to
borrowers advising them of the need to
provide proof of adequate coverage and
warning that, in the absence of this
proof, insurance will be forced placed,
possibly at higher rates and with
diminished coverage.
Protection of property values is
important to homeowners,
communities, and to the Enterprises. At
the same time, provision of such
insurance products at an appropriate
cost is of concern as well. Reportedly,
premiums for lender placed insurance
are generally double those for voluntary
insurance and, in certain instances,
significantly higher. FHFA recognizes
that some greater risks are involved with
lender placed insurance and that lender
placed insurance carriers do not have
the opportunity to underwrite the
properties they insure, however, the
multiples involved may not reflect
claims experience and other measures.
Loss ratios for lender placed insurance
are significantly below those for
voluntary hazard insurance and some
states already have required or have
considered rate reductions of 30 percent
or more.
The Enterprises, operating in
conservatorship and supported by
taxpayers, may be affected by such costs
where a servicer pays the higher
premiums and is unable to recoup the
cost from the homeowner or at a
foreclosure sale, and the expense is
passed along to the Enterprise for
reimbursement.
In the wake of the financial crisis,
demands for lender placed insurance
have risen and, as a result, so have
Enterprise expenses related to such
coverage. Concerns about lender placed
insurance costs, compensation, and
practices have been raised by the
National Association of Insurance
Commissioners, state regulators, the
Consumer Financial Protection Bureau,
state attorneys general, and consumer
organizations. Generally, the focus has
centered on excessive rates and costs
passed onto borrowers, as well as
commissions and other compensation
paid to servicers by carriers.
In order to keep lender placed
insurance costs to the Enterprises as low
as possible, practices that provide
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Agencies
[Federal Register Volume 78, Number 61 (Friday, March 29, 2013)]
[Notices]
[Pages 19262-19263]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-07335]
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FEDERAL HOUSING FINANCE AGENCY
[No. 2013-N-04]
Notice of Annual Adjustment of the Cap on Average Total Assets
That Defines Community Financial Institutions
AGENCY: Federal Housing Finance Agency.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Agency (FHFA) has adjusted the cap
on average total assets that defines a ``Community Financial
Institution'' 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 took effect on January 1,
2013.
FOR FURTHER INFORMATION CONTACT: Patricia L. Sweeney, Division of
Federal Home Loan Bank Regulation, (202) 649-3311,
Pat.Sweeney@fhfa.gov, or Eric M. Raudenbush, Assistant General Counsel,
(202) 649-6421, Eric.Raudenbush@fhfa.gov, (not toll-free numbers),
Federal Housing Finance Agency, Constitution Center, 400 Seventh
Street, SW., Washington, DC 20024.
[[Page 19263]]
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
The Federal Home Loan Bank Act (Bank Act) confers upon insured
depository institutions that meet the statutory definition of a
``Community Financial Institution'' (CFI) certain advantages over non-
CFI insured depository institutions in qualifying for Federal Home Loan
Bank (Bank) membership, and in the purposes for which they may receive
long-term advances and the collateral they may pledge to secure
advances.\1\ Section 2(10)(A) of the Bank Act and Sec. 1263.1 of
FHFA's regulations define a CFI as any Bank member the deposits of
which are insured by the Federal Deposit Insurance Corporation and that
has average total assets below a statutory cap.\2\ The Bank Act was
amended in 2008 to set the statutory cap at $1 billion and to require
the Director of FHFA to adjust the cap annually to reflect the
percentage increase in the CPI-U, as published by the DOL, for the
prior year.\3\ For 2012, FHFA set the CFI asset cap at $1,076,000,000,
which reflected a 3.4 percent increase over 2011, based upon the
increase in the CPI-U between 2010 and 2011. See 77 FR 14366 (Mar. 9,
2012).
---------------------------------------------------------------------------
\1\ See 12 U.S.C. 1424(a), 1430(a).
\2\ See 12 U.S.C. 1422(10)(A); 12 CFR 1263.1.
\3\ See 12 U.S.C. 1422(10); 12 CFR 1263.1 (defining the term CFI
asset cap).
---------------------------------------------------------------------------
II. The CFI Asset Cap For 2013
As of January 1, 2013, FHFA has increased the CFI asset cap from
$1,076,000,000 to $1,095,000,000, which reflects a 1.8 percent increase
in the unadjusted CPI-U from November 2011 to November 2012. The new
amount was obtained by rounding to the nearest million, as has been the
practice for all prior adjustments. Consistent with the practice of
other Federal agencies, FHFA bases the annual adjustment to the CFI
asset cap on the percentage increase in the CPI-U from November of the
year prior to the preceding calendar year to November of the preceding
calendar year, because the November figures represent the most recent
available data as of January 1st of the current calendar year.
In calculating the CFI asset cap, FHFA uses CPI-U data that have
not been seasonally adjusted (i.e., the data have not been adjusted to
remove the estimated effect of price changes that normally occur at the
same time and in about the same magnitude every year). The DOL
encourages use of unadjusted CPI-U data in applying ``escalation''
provisions such as that governing the CFI asset cap, because the
factors that are used to seasonally adjust the data are amended
annually, and seasonally adjusted data that are published earlier are
subject to revision for up to five years following their original
release. Unadjusted data are not routinely subject to revision, and
previously published unadjusted data are only corrected when
significant calculation errors are discovered.
Dated: March 21, 2013.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2013-07335 Filed 3-28-13; 8:45 am]
BILLING CODE 8070-01-P