Registration of Mortgage Loan Originators, 51046-51048 [2013-20276]
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51046
Federal Register / Vol. 78, No. 161 / Tuesday, August 20, 2013 / Rules and Regulations
be viewed at: www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant
matter presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C. 553) because the Committee is
planning its next industry meeting for
August, and having this final rule in
place would be helpful to any
discussion involving volume control.
Further, the industry is aware of this
rule, which was recommended at a
public meeting. Also, a 30-day comment
period was provided for in the proposed
rule.
6 years ago or later, the sales history
shall be computed by averaging the
highest 4 of the 5 years and shall be
adjusted as provided in paragraph (d).
* * *
(c) For growers with acreage with no
sales history or for the first harvest of replanted acres, the sales history will be
75 barrels per acre for acres planted or
re-planted 1 year ago and first harvested
in the current crop year and 156 barrels
per acre for acres planted or re-planted
2 years ago and first harvested in the
current crop year.
(d) In addition to the sales history
computed in accordance with
paragraphs (a) and (b) of this section,
additional sales history shall be
assigned to growers with acreage
planted in the last 6 years. The
additional sales histories depending on
the date the acreage is planted are
shown in Table 1.
TABLE 1—ADDITIONAL SALES HISTORY
ASSIGNED TO ACREAGE
Additional
current crop
year sales history per acre
Date planted
List of Subjects in 7 CFR Part 929
Cranberries, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 929 is amended as
follows:
6
5
4
3
2
1
PART 929—CRANBERRIES GROWN IN
THE STATES OF MASSACHUSETTS,
RHODE ISLAND, CONNECTICUT, NEW
JERSEY, WISCONSIN, MICHIGAN,
MINNESOTA, OREGON,
WASHINGTON, AND LONG ISLAND IN
THE STATE OF NEW YORK
*
1. The authority citation for 7 CFR
part 929 continues to read as follows:
years ago ...........................
years ago ...........................
years ago ...........................
years ago ...........................
years ago ...........................
year ago ............................
*
*
*
49
117
157
183
156
75
*
Dated: August 14, 2013.
Rex A Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2013–20253 Filed 8–19–13; 8:45 am]
BILLING CODE 3410–02–P
■
FARM CREDIT ADMINISTRATION
Authority: 7 U.S.C. 601–674.
2. Section 929.149 is amended by
revising paragraph (a), the first sentence
in paragraph (b), paragraphs (c) and (d),
and Table 1 to read as follows:
■
§ 929.149
Determination of sales history.
sroberts on DSK5SPTVN1PROD with RULES
*
*
*
*
*
(a) For each grower with acreage with
6 or more years of sales history, a new
sales history shall be computed using an
average of the highest 4 of the most
recent 6 years of sales. If the grower has
acreage with 5 years of sales history and
such acreage was planted more than 6
years ago, a new sales history shall be
computed by averaging the highest 4 of
the 5 years.
(b) For growers whose acreage has 5
years of sales history and was planted
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12 CFR Part 610
RIN 3052–AC78
Registration of Mortgage Loan
Originators
Farm Credit Administration.
Interim rule with request for
comments.
AGENCY:
ACTION:
The Farm Credit
Administration (FCA, we or us) is
repealing its regulations that govern the
registration of residential mortgage loan
originators employed by Farm Credit
System (FCS or System) institutions. We
are repealing these regulations because
the Bureau of Consumer Financial
Protection (CFPB), pursuant to its
SUMMARY:
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authority under the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act), is consolidating
and recodifying the regulations that six
Federal agencies jointly enacted to
implement the Secure and Fair
Enforcement for Mortgage Licensing Act
(S.A.F.E. Act), which require residential
mortgage loan originators at banks,
savings associations, credit unions, FCS
institutions, and their subsidiaries to
register with the National Mortgage
Licensing System and Registry (NMLSR
or Registry) and obtain a unique
identifier. Repealing these regulations
avoids duplication, which is likely to
cause confusion at FCS institutions.
DATES: This interim rule will become
effective 30 days after publication in the
Federal Register during which either or
both Houses of Congress are in session.
We will publish notice of the effective
date in the Federal Register. Please send
your comments to us by September 19,
2013.
ADDRESSES: We offer a variety of
methods for you to submit your
comments. For accuracy and efficiency,
commenters are encouraged to submit
comments by email or through the
FCA’s Web site. As facsimiles (fax) are
difficult for us to process and achieve
compliance with section 508 of the
Rehabilitation Act, we are no longer
accepting comments submitted by fax.
Regardless of the method you use,
please do not submit your comment
multiple times via different methods.
You may submit comments by any of
the following methods:
• Email: Send us an email at regcomm@fca.gov.
• FCA Web site: https://www.fca.gov.
Select ‘‘Public Comments’’ and follow
the directions for ‘‘Submitting a
Comment.’’
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Gary K. Van Meter, Director,
Office of Regulatory Policy, Farm Credit
Administration, 1501 Farm Credit Drive,
McLean, VA 22102–5090.
You may review copies of comments
we receive at our office in McLean,
Virginia, or from our Web site at
https://www.fca.gov. Once you are in the
Web site, select ‘‘Public Commenters,’’
then ‘‘Public Comments,’’ and follow
the directions for ‘‘Reading Submitted
Public Comments.’’ We will show your
comments as submitted, but for
technical reasons we may omit items
such as logos and special characters.
Identifying information that you
provide, such as phone numbers and
addresses, will be publicly available.
However, we will attempt to remove
E:\FR\FM\20AUR1.SGM
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Federal Register / Vol. 78, No. 161 / Tuesday, August 20, 2013 / Rules and Regulations
email addresses to help reduce Internet
spam.
FOR FURTHER INFORMATION CONTACT:
Gaylon J. Dykstra, Assistant to the
Director, Office of Regulatory Policy,
Farm Credit Administration, 1501
Farm Credit Drive, McLean, VA
22102–5090, (703) 883–4498, TTY
(703) 883–4056; or
Richard A. Katz, Senior Counsel, Office
of General Counsel, Farm Credit
Administration, McLean, VA 22102–
5090, (703) 883–4020, TTY (703) 883–
4056.
SUPPLEMENTARY INFORMATION:
I. Background
On July 30, 2008, Congress enacted
the S.A.F.E. Act,1 which mandated a
nationwide system for licensing and/or
registering all residential mortgage loan
originators in the United States. The
S.A.F.E. Act requires all residential
mortgage loan originators at depository
institutions, FCS institutions, and their
federally regulated subsidiaries to: (1)
Register with the NMLSR; (2) obtain a
unique identifier; and (3) maintain their
registration.2 Originally, section 1507 of
the S.A.F.E. Act required the
Comptroller of the Currency, the Board
of Governors of the Federal Reserve
System, the Federal Deposit Insurance
Corporation, the former Office of Thrift
Supervision, and the National Credit
Union Administration (collectively the
Federal banking agencies) and the FCA
to jointly develop and maintain a
system for registering residential
mortgage loan originators at the
institutions they supervise and regulate.
The six agencies decided to implement
section 1507 of the S.A.F.E. Act through
a joint rulemaking. The six agencies
jointly published a proposed rule on
June 9, 2009.3 A joint final rule was
issued on July 28, 2010,4 and it became
effective on October 1, 2010. However,
actual registration with the NMLSR did
not begin until the Registry became
operational on January 31, 2011. The six
agencies announced that the initial
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1 The
S.A.F.E. Act is title V of the Housing and
Economic Recovery Act of 2008. Public Law 100–
289, Division A, Title V, sections 1501–1517, 122
Stat. 264, 2810–2824 (July 30, 2008), codified at 12
U.S.C. 5101–5116.
2 Separately, other provisions of the S.A.F.E. Act
require every State to enact laws for licensing
individuals who originate residential mortgages for
State-regulated lenders. Residential mortgage loan
originators who are licensed by one or more States
must also register with the NMLSR, obtain a unique
identifier, and maintain their licenses and
registrations.
3 74 FR 27386 (June 9, 2009).
4 75 FR 44656 (July 28, 2009). The entire
preamble to the final rule was reprinted at 75 FR
51623 (Aug. 23, 2010) because the footnotes in the
preamble that was published on July 28, 2009 were
not correctly numbered.
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Jkt 229001
registration period for Federal
registrations required by the S.A.F.E.
Act and the final regulations would run
from January 31, 2011, through July 29,
2011.5
Title X of the Dodd-Frank Act created
the CFPB as the Federal agency that is
primarily responsible for various
Federal consumer financial protection
laws.6 Since July 21, 2011, the CFPB has
authority to prescribe rules or issue
orders or guidelines pursuant to Federal
consumer financial laws.7 The S.A.F.E.
Act is an enumerated consumer
financial law under the Dodd-Frank
Act 8 and, therefore, the CFPB now has
primary regulatory authority over it.
Additionally, section 1100 of the DoddFrank Act amended section 1507 of the
S.A.F.E. Act to transfer authority to
develop and maintain the Registry from
the FCA and the Federal banking
agencies to the CFPB. As stated earlier,
the FCA and the Federal banking
agencies jointly enacted regulations to
implement section 1507 of the S.A.F.E.
Act.
Pursuant to its authorities under title
X of the Dodd-Frank Act, the CFPB has
consolidated and recodified the S.A.F.E.
Act regulations of the FCA and the
Federal banking agencies.9 The CFPB
recently published an interim rule in
the Federal Register.10 Instead of
substantively amending the current
regulations, the CFPB has made only
certain technical, formatting, and
stylistic changes.11
5 The agencies issued a joint press release on
January 31, 2011, and they subsequently published
the announcement in the Federal Register on 76 FR
6185 (Feb. 3, 2011).
6 Public Law 111–203, title X, 124 Stat. 1376,
1955–2113, (July 21, 2010).
7 Section 1061 of the Dodd-Frank Act transferred
the ‘‘consumer financial protection functions’’ of
the Federal banking agencies, the Department of
Housing and Urban Development (HUD), and the
Federal Trade Commission to the CFPB. The
‘‘consumer financial protection functions’’ that
transferred to the CFPB under section 1061(a)(1) of
the Dodd-Frank Act include ‘‘all authority to
prescribe rules or issues orders or guidelines
pursuant to any Federal consumer financial
law. . . .’’
8 See section 1002(12)(N) of the Dodd-Frank Act,
which classifies the S.A.F.E. Act as one of the
‘‘enumerated consumer laws,’’ and section
1002(14), which includes these ‘‘enumerated
consumer laws’’ within the definition of a ‘‘Federal
consumer financial law.’’
9 The CFPB also has recodified the regulations
that HUD promulgated under the S.A.F.E. Act to
coordinate State compliance with the S.A.F.E. Act,
and establish and maintain a licensing and
registration system for residential mortgage loan
originators in a State or territory that does not have
one in place that meets the requirements of the
S.A.F.E. Act.
10 See 76 FR 78483 (December 19, 2011). The
interim rule became effective on December 30,
2011, and the comment period expired on February
17, 2012.
11 See 76 FR 78484 (December 19, 2011).
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51047
The CFPB consulted with the FCA
and the Federal banking agencies when
it drafted the interim rule. The CFPB
has addressed all of the FCA’s concerns,
and it has gone to great lengths to
ensure that the consolidated and
recodified rule does not inadvertently
conflict with provisions of the Farm
Credit Act of 1971, as amended, and
FCA regulations and other guidance that
govern the lending authorities and
corporate structure of FCS institutions.
Additionally, the CFPB’s interim rule
does not impose any new substantive
obligations on System institutions or
their employees who are subject to the
registration requirements of the S.A.F.E.
Act.12 As stated in the preamble to its
interim rule, the CFPB considers
employees of FCS associations who
previously registered with the NMLSR
and obtained unique identifiers in
accordance the FCA’s S.A.F.E. Act
regulations to remain registered under
its new regulations.13
Under these circumstances, the
CFPB’s consolidation and recodification
of S.A.F.E. Act regulations causes no
concerns to the FCA. Three provisions
in title X of the Dodd-Frank Act pertain
to the FCA’s rulemaking authority over
the S.A.F.E Act,14 while section 1022 of
the Dodd-Frank Act grants the CFPB
primary rulemaking authority over
consumer financial laws.
The FCA is repealing its S.A.F.E. Act
regulations at 12 CFR part 610 in order
to avoid confusion and unnecessary
duplication. The CFPB’s regulation at 12
CFR part 1007 will now govern the
registration of residential mortgage loan
originators at FCS institutions. To assist
FCS institutions in locating part 1007,
rescinded part 610 will retain its
original heading and include a cross cite
to the CFPB’s rules governing the
Federal registration of residential
mortgage loan originators (Regulation
G).
The FCA will continue to examine
and enforce compliance by FCS
12 Id.
13 Id.
14 Section 1027(k) of the Dodd-Frank Act states
‘‘No provision of this title [X] shall be construed as
altering, amending, or affecting the authority of the
Farm Credit Administration to adopt rules, initiate
enforcement proceedings, or take any other action
with respect to a [Farm Credit System institution].’’
(Emphasis added). Second, section 1100 of the
Dodd-Frank Act retained the FCA’s authority under
section 1510 of the S.A.F.E. Act to ‘‘charge
reasonable fees to cover the costs of maintaining
and providing access to information from the
Nationwide Mortgage Licensing System and
Registry, to the extent that such fees are not charged
to consumers for access to such system and
registry.’’ If the FCA were to assess such fees, it
would do so only after a notice and comment
rulemaking. Finally, the FCA, in contrast to the
Federal banking agencies, is not a ‘‘transferor
agency’’ under section 1061 of the Dodd-Frank Act.
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Federal Register / Vol. 78, No. 161 / Tuesday, August 20, 2013 / Rules and Regulations
institutions and their employees with
the requirements of the S.A.F.E. Act and
its implementing regulations pursuant
to its authorities under the Farm Credit
Act of 1971 and sections 1024(f) and
1027(k) of the Dodd-Frank Act.
sroberts on DSK5SPTVN1PROD with RULES
II. Administrative Procedure Act
The Administrative Procedure Act
(APA) 15 generally requires Federal
agencies to give public notice that it is
proposing to adopt, amend, or repeal a
regulation, and then afford all interested
parties an opportunity to comment
before promulgating a final rule.
However, a provision of the APA 16
authorizes waiver of notice and
comment rulemaking when an agency,
for good cause, finds that notice and
comment are impracticable,
unnecessary, or contrary to the public
interest.
The FCA finds good cause for waiving
notice and comment in this situation.
Section 1100 of the Dodd-Frank Act
amended section 1507 of the S.A.F.E.
Act by granting the CFPB authority to
develop and maintain the Registry that
the FCA and the Federal banking
agencies previously exercised. Since the
FCA and Federal banking agencies
implemented the S.A.F.E. Act by jointly
enacting regulations, the CFPB assumed
responsibility for these regulations, by
operation of law, on July 21, 2011. The
CFPB is now exercising its new
authority under title X of the DoddFrank Act by consolidating and
recodifying the S.A.F.E. Act regulations
of the FCA and the Federal banking
agencies without substantive change.
Under the circumstances, repeal of the
FCA’s regulations in part 610 conforms
with title X of the Dodd-Frank Act. For
these reasons, the FCA finds that notice
and comment rulemaking procedures
for the repeal of the FCA’s regulations
in part 610 are impractical, unnecessary,
and contrary to the public interest
because the CFPB, not the FCA, now has
primary rulemaking authority over
S.A.F.E. Act, which the CFPB is now
exercising.
Although notice and comment
rulemaking is not required in this
situation, we invite your comments. We
will respond to any comments we
receive when we publish the final rule.
III. Regulatory Flexibility Act
Pursuant to section 605(b) of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.), the FCA certifies that the
interim rule will not have a significant
economic impact on a substantial
number of small entities. Each of the
15 5
16 5
U.S.C. 551 et seq.
U.S.C. 553(b).
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Jkt 229001
banks in the System, considered
together with its affiliated associations,
has assets and annual income in excess
of the amounts that would qualify them
as small entities. Therefore, System
institutions are not ‘‘small entities’’ as
defined in the Regulatory Flexibility
Act.
List of Subjects in 12 CFR Part 610
Banks, banking, Consumer protection,
Loan programs—housing and
community development, Mortgages,
Reporting and recordkeeping
requirements, Rural areas.
■ For the reasons stated in the preamble,
part 610 of chapter VI, title 12 of the
Code of Federal Regulations is revised
to read as follows:
PART 610—REGISTRATION OF
MORTGAGE LOAN ORIGINATORS
Authority: Secs. 1.5, 1.7, 1.9, 1.10, 1.11,
1.13, 2.2, 2.4, 2.12, 5.9, 5.17, 7.2, 7.6, 7.8 of
the Farm Credit Act (12 U.S.C. 2013, 2015,
2017, 2018, 2019, 2021, 2073, 2075, 2093,
2243, 2252, 2279a–2, 2279b, 2279c–10); and
secs. 1501 et seq. of Pub. L. 110–289, 122
Stat. 2654.
§ 610.101
Cross reference.
The rules formerly at 12 CFR part 610
have been recodified by the Consumer
Financial Protection Bureau at 12 CFR
part 1007, ‘‘S.A.F.E. Mortgage Licensing
Act—Federal Registration of Residential
Mortgage Loan Originators (Regulation
G)’’.
Dated: August 14, 2013.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2013–20276 Filed 8–19–13; 8:45 am]
BILLING CODE 6705–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2013–0353; Directorate
Identifier 2008–SW–029–AD; Amendment
39–17545; AD 2013–16–07]
RIN 2120–AA64
Airworthiness Directives; Eurocopter
France Helicopters
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
PO 00000
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This AD is effective September
24, 2013.
The Director of the Federal Register
approved the incorporation by reference
of certain documents listed in this AD
as of September 24, 2013.
DATES:
For service information
identified in this AD, contact American
Eurocopter Corporation, 2701 N Forum
Drive, Grand Prairie, TX 75052;
telephone (972) 641–0000 or (800) 232–
0323; fax (972) 641–3775; or at https://
www.eurocopter.com/techpub. You may
review the referenced service
information at the FAA, Office of the
Regional Counsel, Southwest Region,
2601 Meacham Blvd., Room 663, Fort
Worth, Texas 76137.
ADDRESSES:
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov or in person at the
Docket Operations Office between 9
a.m. and 5 p.m., Monday through
Friday, except Federal holidays. The AD
docket contains this AD, any
incorporated-by-reference service
information, the foreign authority’s AD,
the economic evaluation, any comments
received, and other information. The
street address for the Docket Operations
Office (phone: 800–647–5527) is U.S.
Department of Transportation, Docket
Operations Office, M–30, West Building
Ground Floor, Room W12–140, 1200
New Jersey Avenue SE., Washington,
DC 20590.
Gary
Roach, Aviation Safety Engineer,
Regulations and Policy Group,
Rotorcraft Directorate, FAA, 2601
Meacham Blvd., Fort Worth, TX 76137;
telephone (817) 222–5110; email
gary.b.roach@faa.gov.
FOR FURTHER INFORMATION CONTACT:
We are adopting a new
airworthiness directive (AD) for certain
Eurocopter France (Eurocopter) Model
AS332C, AS332L, AS332L1, AS332L2,
and EC225LP helicopters to require
inspecting for the presence of blind
SUMMARY:
holes in the tail gearbox (TGB)
attachment fittings, and, if they are
missing, installing an additional washer
under the head of the attachment bolt
until the attachment fitting is replaced
with an airworthy attachment fitting.
This AD was prompted by the discovery
of interference between the TGB aft
attachment bolt and the structure fitting,
caused by a manufacturing anomaly that
omitted the blind hole required for
proper fit of the attachment bolt. This
condition, if not detected and corrected,
could result in insufficient tightening of
the TGB casing, damage to the TGB
attachment, cracking under the
attachment bolt, and loss of the TGB,
resulting in loss of control of the
helicopter.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\20AUR1.SGM
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Agencies
[Federal Register Volume 78, Number 161 (Tuesday, August 20, 2013)]
[Rules and Regulations]
[Pages 51046-51048]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-20276]
=======================================================================
-----------------------------------------------------------------------
FARM CREDIT ADMINISTRATION
12 CFR Part 610
RIN 3052-AC78
Registration of Mortgage Loan Originators
AGENCY: Farm Credit Administration.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Farm Credit Administration (FCA, we or us) is repealing
its regulations that govern the registration of residential mortgage
loan originators employed by Farm Credit System (FCS or System)
institutions. We are repealing these regulations because the Bureau of
Consumer Financial Protection (CFPB), pursuant to its authority under
the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act), is consolidating and recodifying the regulations that six
Federal agencies jointly enacted to implement the Secure and Fair
Enforcement for Mortgage Licensing Act (S.A.F.E. Act), which require
residential mortgage loan originators at banks, savings associations,
credit unions, FCS institutions, and their subsidiaries to register
with the National Mortgage Licensing System and Registry (NMLSR or
Registry) and obtain a unique identifier. Repealing these regulations
avoids duplication, which is likely to cause confusion at FCS
institutions.
DATES: This interim rule will become effective 30 days after
publication in the Federal Register during which either or both Houses
of Congress are in session. We will publish notice of the effective
date in the Federal Register. Please send your comments to us by
September 19, 2013.
ADDRESSES: We offer a variety of methods for you to submit your
comments. For accuracy and efficiency, commenters are encouraged to
submit comments by email or through the FCA's Web site. As facsimiles
(fax) are difficult for us to process and achieve compliance with
section 508 of the Rehabilitation Act, we are no longer accepting
comments submitted by fax. Regardless of the method you use, please do
not submit your comment multiple times via different methods. You may
submit comments by any of the following methods:
Email: Send us an email at reg-comm@fca.gov.
FCA Web site: https://www.fca.gov. Select ``Public
Comments'' and follow the directions for ``Submitting a Comment.''
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Gary K. Van Meter, Director, Office of Regulatory
Policy, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA
22102-5090.
You may review copies of comments we receive at our office in
McLean, Virginia, or from our Web site at https://www.fca.gov. Once you
are in the Web site, select ``Public Commenters,'' then ``Public
Comments,'' and follow the directions for ``Reading Submitted Public
Comments.'' We will show your comments as submitted, but for technical
reasons we may omit items such as logos and special characters.
Identifying information that you provide, such as phone numbers and
addresses, will be publicly available. However, we will attempt to
remove
[[Page 51047]]
email addresses to help reduce Internet spam.
FOR FURTHER INFORMATION CONTACT:
Gaylon J. Dykstra, Assistant to the Director, Office of Regulatory
Policy, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA
22102-5090, (703) 883-4498, TTY (703) 883-4056; or
Richard A. Katz, Senior Counsel, Office of General Counsel, Farm Credit
Administration, McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-
4056.
SUPPLEMENTARY INFORMATION:
I. Background
On July 30, 2008, Congress enacted the S.A.F.E. Act,\1\ which
mandated a nationwide system for licensing and/or registering all
residential mortgage loan originators in the United States. The
S.A.F.E. Act requires all residential mortgage loan originators at
depository institutions, FCS institutions, and their federally
regulated subsidiaries to: (1) Register with the NMLSR; (2) obtain a
unique identifier; and (3) maintain their registration.\2\ Originally,
section 1507 of the S.A.F.E. Act required the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the former Office of Thrift
Supervision, and the National Credit Union Administration (collectively
the Federal banking agencies) and the FCA to jointly develop and
maintain a system for registering residential mortgage loan originators
at the institutions they supervise and regulate. The six agencies
decided to implement section 1507 of the S.A.F.E. Act through a joint
rulemaking. The six agencies jointly published a proposed rule on June
9, 2009.\3\ A joint final rule was issued on July 28, 2010,\4\ and it
became effective on October 1, 2010. However, actual registration with
the NMLSR did not begin until the Registry became operational on
January 31, 2011. The six agencies announced that the initial
registration period for Federal registrations required by the S.A.F.E.
Act and the final regulations would run from January 31, 2011, through
July 29, 2011.\5\
---------------------------------------------------------------------------
\1\ The S.A.F.E. Act is title V of the Housing and Economic
Recovery Act of 2008. Public Law 100-289, Division A, Title V,
sections 1501-1517, 122 Stat. 264, 2810-2824 (July 30, 2008),
codified at 12 U.S.C. 5101-5116.
\2\ Separately, other provisions of the S.A.F.E. Act require
every State to enact laws for licensing individuals who originate
residential mortgages for State-regulated lenders. Residential
mortgage loan originators who are licensed by one or more States
must also register with the NMLSR, obtain a unique identifier, and
maintain their licenses and registrations.
\3\ 74 FR 27386 (June 9, 2009).
\4\ 75 FR 44656 (July 28, 2009). The entire preamble to the
final rule was reprinted at 75 FR 51623 (Aug. 23, 2010) because the
footnotes in the preamble that was published on July 28, 2009 were
not correctly numbered.
\5\ The agencies issued a joint press release on January 31,
2011, and they subsequently published the announcement in the
Federal Register on 76 FR 6185 (Feb. 3, 2011).
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Title X of the Dodd-Frank Act created the CFPB as the Federal
agency that is primarily responsible for various Federal consumer
financial protection laws.\6\ Since July 21, 2011, the CFPB has
authority to prescribe rules or issue orders or guidelines pursuant to
Federal consumer financial laws.\7\ The S.A.F.E. Act is an enumerated
consumer financial law under the Dodd-Frank Act \8\ and, therefore, the
CFPB now has primary regulatory authority over it. Additionally,
section 1100 of the Dodd-Frank Act amended section 1507 of the S.A.F.E.
Act to transfer authority to develop and maintain the Registry from the
FCA and the Federal banking agencies to the CFPB. As stated earlier,
the FCA and the Federal banking agencies jointly enacted regulations to
implement section 1507 of the S.A.F.E. Act.
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\6\ Public Law 111-203, title X, 124 Stat. 1376, 1955-2113,
(July 21, 2010).
\7\ Section 1061 of the Dodd-Frank Act transferred the
``consumer financial protection functions'' of the Federal banking
agencies, the Department of Housing and Urban Development (HUD), and
the Federal Trade Commission to the CFPB. The ``consumer financial
protection functions'' that transferred to the CFPB under section
1061(a)(1) of the Dodd-Frank Act include ``all authority to
prescribe rules or issues orders or guidelines pursuant to any
Federal consumer financial law. . . .''
\8\ See section 1002(12)(N) of the Dodd-Frank Act, which
classifies the S.A.F.E. Act as one of the ``enumerated consumer
laws,'' and section 1002(14), which includes these ``enumerated
consumer laws'' within the definition of a ``Federal consumer
financial law.''
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Pursuant to its authorities under title X of the Dodd-Frank Act,
the CFPB has consolidated and recodified the S.A.F.E. Act regulations
of the FCA and the Federal banking agencies.\9\ The CFPB recently
published an interim rule in the Federal Register.\10\ Instead of
substantively amending the current regulations, the CFPB has made only
certain technical, formatting, and stylistic changes.\11\
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\9\ The CFPB also has recodified the regulations that HUD
promulgated under the S.A.F.E. Act to coordinate State compliance
with the S.A.F.E. Act, and establish and maintain a licensing and
registration system for residential mortgage loan originators in a
State or territory that does not have one in place that meets the
requirements of the S.A.F.E. Act.
\10\ See 76 FR 78483 (December 19, 2011). The interim rule
became effective on December 30, 2011, and the comment period
expired on February 17, 2012.
\11\ See 76 FR 78484 (December 19, 2011).
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The CFPB consulted with the FCA and the Federal banking agencies
when it drafted the interim rule. The CFPB has addressed all of the
FCA's concerns, and it has gone to great lengths to ensure that the
consolidated and recodified rule does not inadvertently conflict with
provisions of the Farm Credit Act of 1971, as amended, and FCA
regulations and other guidance that govern the lending authorities and
corporate structure of FCS institutions. Additionally, the CFPB's
interim rule does not impose any new substantive obligations on System
institutions or their employees who are subject to the registration
requirements of the S.A.F.E. Act.\12\ As stated in the preamble to its
interim rule, the CFPB considers employees of FCS associations who
previously registered with the NMLSR and obtained unique identifiers in
accordance the FCA's S.A.F.E. Act regulations to remain registered
under its new regulations.\13\
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\12\ Id.
\13\ Id.
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Under these circumstances, the CFPB's consolidation and
recodification of S.A.F.E. Act regulations causes no concerns to the
FCA. Three provisions in title X of the Dodd-Frank Act pertain to the
FCA's rulemaking authority over the S.A.F.E Act,\14\ while section 1022
of the Dodd-Frank Act grants the CFPB primary rulemaking authority over
consumer financial laws.
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\14\ Section 1027(k) of the Dodd-Frank Act states ``No provision
of this title [X] shall be construed as altering, amending, or
affecting the authority of the Farm Credit Administration to adopt
rules, initiate enforcement proceedings, or take any other action
with respect to a [Farm Credit System institution].'' (Emphasis
added). Second, section 1100 of the Dodd-Frank Act retained the
FCA's authority under section 1510 of the S.A.F.E. Act to ``charge
reasonable fees to cover the costs of maintaining and providing
access to information from the Nationwide Mortgage Licensing System
and Registry, to the extent that such fees are not charged to
consumers for access to such system and registry.'' If the FCA were
to assess such fees, it would do so only after a notice and comment
rulemaking. Finally, the FCA, in contrast to the Federal banking
agencies, is not a ``transferor agency'' under section 1061 of the
Dodd-Frank Act.
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The FCA is repealing its S.A.F.E. Act regulations at 12 CFR part
610 in order to avoid confusion and unnecessary duplication. The CFPB's
regulation at 12 CFR part 1007 will now govern the registration of
residential mortgage loan originators at FCS institutions. To assist
FCS institutions in locating part 1007, rescinded part 610 will retain
its original heading and include a cross cite to the CFPB's rules
governing the Federal registration of residential mortgage loan
originators (Regulation G).
The FCA will continue to examine and enforce compliance by FCS
[[Page 51048]]
institutions and their employees with the requirements of the S.A.F.E.
Act and its implementing regulations pursuant to its authorities under
the Farm Credit Act of 1971 and sections 1024(f) and 1027(k) of the
Dodd-Frank Act.
II. Administrative Procedure Act
The Administrative Procedure Act (APA) \15\ generally requires
Federal agencies to give public notice that it is proposing to adopt,
amend, or repeal a regulation, and then afford all interested parties
an opportunity to comment before promulgating a final rule. However, a
provision of the APA \16\ authorizes waiver of notice and comment
rulemaking when an agency, for good cause, finds that notice and
comment are impracticable, unnecessary, or contrary to the public
interest.
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\15\ 5 U.S.C. 551 et seq.
\16\ 5 U.S.C. 553(b).
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The FCA finds good cause for waiving notice and comment in this
situation. Section 1100 of the Dodd-Frank Act amended section 1507 of
the S.A.F.E. Act by granting the CFPB authority to develop and maintain
the Registry that the FCA and the Federal banking agencies previously
exercised. Since the FCA and Federal banking agencies implemented the
S.A.F.E. Act by jointly enacting regulations, the CFPB assumed
responsibility for these regulations, by operation of law, on July 21,
2011. The CFPB is now exercising its new authority under title X of the
Dodd-Frank Act by consolidating and recodifying the S.A.F.E. Act
regulations of the FCA and the Federal banking agencies without
substantive change. Under the circumstances, repeal of the FCA's
regulations in part 610 conforms with title X of the Dodd-Frank Act.
For these reasons, the FCA finds that notice and comment rulemaking
procedures for the repeal of the FCA's regulations in part 610 are
impractical, unnecessary, and contrary to the public interest because
the CFPB, not the FCA, now has primary rulemaking authority over
S.A.F.E. Act, which the CFPB is now exercising.
Although notice and comment rulemaking is not required in this
situation, we invite your comments. We will respond to any comments we
receive when we publish the final rule.
III. Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.), the FCA certifies that the interim rule will not
have a significant economic impact on a substantial number of small
entities. Each of the banks in the System, considered together with its
affiliated associations, has assets and annual income in excess of the
amounts that would qualify them as small entities. Therefore, System
institutions are not ``small entities'' as defined in the Regulatory
Flexibility Act.
List of Subjects in 12 CFR Part 610
Banks, banking, Consumer protection, Loan programs--housing and
community development, Mortgages, Reporting and recordkeeping
requirements, Rural areas.
0
For the reasons stated in the preamble, part 610 of chapter VI, title
12 of the Code of Federal Regulations is revised to read as follows:
PART 610--REGISTRATION OF MORTGAGE LOAN ORIGINATORS
Authority: Secs. 1.5, 1.7, 1.9, 1.10, 1.11, 1.13, 2.2, 2.4,
2.12, 5.9, 5.17, 7.2, 7.6, 7.8 of the Farm Credit Act (12 U.S.C.
2013, 2015, 2017, 2018, 2019, 2021, 2073, 2075, 2093, 2243, 2252,
2279a-2, 2279b, 2279c-10); and secs. 1501 et seq. of Pub. L. 110-
289, 122 Stat. 2654.
Sec. 610.101 Cross reference.
The rules formerly at 12 CFR part 610 have been recodified by the
Consumer Financial Protection Bureau at 12 CFR part 1007, ``S.A.F.E.
Mortgage Licensing Act--Federal Registration of Residential Mortgage
Loan Originators (Regulation G)''.
Dated: August 14, 2013.
Dale L. Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2013-20276 Filed 8-19-13; 8:45 am]
BILLING CODE 6705-01-P