Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions, 1862 [2014-00193]

Download as PDF 1862 Federal Register / Vol. 79, No. 7 / Friday, January 10, 2014 / Notices Notice 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 2013, FHFA set the CFI asset cap at $1,095,000,000, which reflected a 1.8 percent increase over 2012, based upon the increase in the CPI–U between 2011 and 2012.4 Section 309(a) of the Clean Air Act requires that EPA make public its comments on EISs issued by other Federal agencies. EPA’s comment letters on EISs are available at: https:// www.epa.gov/compliance/nepa/ eisdata.html. EIS No. 20130384, Draft Supplement, USFS, NV, Ely Westside Rangeland Project, Comment Period Ends: 02/24/ 2014, Contact: Vernon Keller 775– 335–5336 EIS No. 20140000, Draft EIS, USACE, NC, Village of Bald Head Island Shoreline Protection Project, Comment Period Ends: 02/24/2014, Contact: Ronnie Smith 910–251–4829 EIS No. 20140001, Draft EIS, APHIS, 00, Determinations of Nonregulated Status for 2, 4–D–Resistant Corn and Soybean Varieties, Comment Period Ends: 02/24/2014, Contact: Sid Abel 301–734–6352 Dated: January 7, 2014. Cliff Rader, Director, NEPA Compliance Division, Office of Federal Activities. [FR Doc. 2014–00214 Filed 1–9–14; 8:45 am] BILLING CODE 6560–50–P FEDERAL HOUSING FINANCE AGENCY [No. 2014–N–01] Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions Federal Housing Finance Agency. ACTION: Notice. AGENCY: 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, 2014. FOR FURTHER INFORMATION CONTACT: Nathan D. Wallingford, Division of Federal Home Loan Bank Regulation, (202) 649–3630, Nathan.Wallingford@ fhfa.gov, or Eric M. Raudenbush, Assistant General Counsel, (202) 649– 3084, Eric.Raudenbush@fhfa.gov, (not toll-free numbers), Federal Housing Finance Agency, Constitution Center, 400 Seventh Street SW., Washington, DC 20024. SUPPLEMENTARY INFORMATION: mstockstill on DSK4VPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 16:40 Jan 09, 2014 Jkt 232001 II. The CFI Asset Cap for 2014 As of January 1, 2014, FHFA has increased the CFI asset cap from $1,095,000,000 to $1,108,000,000, which reflects a 1.2 percent increase in the unadjusted CPI–U from November 2012 to November 2013. 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 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). 4 See 78 FR 19262 (Mar. 29, 2013). 2 See PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 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: January 3, 2014. Edward J. DeMarco, Acting Director, Federal Housing Finance Agency. [FR Doc. 2014–00193 Filed 1–9–14; 8:45 am] BILLING CODE 8070–01–P FEDERAL RESERVE SYSTEM Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB Board of Governors of the Federal Reserve System SUMMARY: Background. Notice is hereby given of the final approval of a proposed information collection by the Board of Governors of the Federal Reserve System (Board) under OMB delegated authority, as per 5 CFR 1320.16 (OMB Regulations on Controlling Paperwork Burdens on the Public). Board-approved collections of information are incorporated into the official OMB inventory of currently approved collections of information. Copies of the Paperwork Reduction Act Submission, supporting statements and approved collection of information instruments are placed into OMB’s public docket files. The Federal Reserve may not conduct or sponsor, and the respondent is not required to respond to, an information collection that has been extended, revised, or implemented on or after October 1, 1995, unless it displays a currently valid OMB control number. FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance Officer—Cynthia Ayouch—Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, Washington, DC 20551 (202–452–3829) Telecommunications Device for the Deaf (TDD) users may contact (202–263– 4869), Board of Governors of the Federal Reserve System, Washington, DC 20551. OMB Desk Officer—Shagufta Ahmed—Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503. Final approval under OMB delegated authority of the revision, without extension, of the following reports: AGENCY: E:\FR\FM\10JAN1.SGM 10JAN1

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[Federal Register Volume 79, Number 7 (Friday, January 10, 2014)]
[Notices]
[Page 1862]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00193]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2014-N-01]


Notice of Annual Adjustment of the Cap on Average Total Assets 
That Defines Community Financial Institutions

AGENCY: Federal Housing Finance Agency.

ACTION: Notice.

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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, 
2014.

FOR FURTHER INFORMATION CONTACT: Nathan D. Wallingford, Division of 
Federal Home Loan Bank Regulation, (202) 649-3630, 
Nathan.Wallingford@fhfa.gov, or Eric M. Raudenbush, Assistant General 
Counsel, (202) 649-3084, Eric.Raudenbush@fhfa.gov, (not toll-free 
numbers), Federal Housing Finance Agency, Constitution Center, 400 
Seventh Street SW., Washington, DC 20024.

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 2013, FHFA set the CFI asset cap at $1,095,000,000, 
which reflected a 1.8 percent increase over 2012, based upon the 
increase in the CPI-U between 2011 and 2012.\4\
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    \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).
    \4\ See 78 FR 19262 (Mar. 29, 2013).
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II. The CFI Asset Cap for 2014

    As of January 1, 2014, FHFA has increased the CFI asset cap from 
$1,095,000,000 to $1,108,000,000, which reflects a 1.2 percent increase 
in the unadjusted CPI-U from November 2012 to November 2013. 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: January 3, 2014.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2014-00193 Filed 1-9-14; 8:45 am]
BILLING CODE 8070-01-P
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