Housing Trust Fund, 74595-74597 [2014-29345]

Download as PDF Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations tkelley on DSK3SPTVN1PROD with RULES • Federal Rulemaking Web Site: Go to: https://www.regulations.gov and search for Docket ID NRC–2014–0102. Address questions about NRC dockets to Carol Gallagher; telephone: 301–287– 3422; email: Carol.Gallagher@nrc.gov. For technical questions, contact the individual listed in the FOR FURTHER INFORMATION CONTACT section of this document. • NRC’s Agencywide Documents Access and Management System (ADAMS): You may obtain publiclyavailable documents online in the ADAMS Public Documents collection at: https://www.nrc.gov/reading-rm/ adams.html. To begin the search, select ‘‘ADAMS Public Documents’’ and then select ‘‘Begin Web-based ADAMS Search.’’ For problems with ADAMS, please contact the NRC’s Public Document Room (PDR) reference staff at 1–800–397–4209, 301–415–4737, or by email to: pdr.resource@nrc.gov. The ADAMS accession number for each document referenced (if it is available in ADAMS) is provided the first time that it is mentioned in the SUPPLEMENTARY INFORMATION section. • NRC’s PDR: You may examine and purchase copies of public documents at the NRC’s PDR, Room O1–F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852. FOR FURTHER INFORMATION CONTACT: Gregory Trussell, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001; telephone: 301–415–6445, email: Gregory.Trussell@ nrc.gov. SUPPLEMENTARY INFORMATION: On October 3, 2014 (79 FR 59623), the NRC published a direct final rule amending its regulations in part 72 of Title 10 of the Code of Federal Regulations by revising the Holtec International HI– STORM FW System listing within the ‘‘List of approved spent fuel storage casks’’ to include Amendment No. 1 to CoC No. 1032. In the direct final rule, the NRC stated that if no significant adverse comments were received, the direct final rule would become final on December 17, 2014. The NRC did not receive any comments on the direct final rule. Therefore, this direct final rule will become effective as scheduled. DEPARTMENT OF THE TREASURY Dated at Rockville, Maryland, this 11th day of December, 2014. For the U.S. Nuclear Regulatory Commission. Cindy Bladey, Chief, Rules, Announcements, and Directives Branch, Division of Administrative Services, Office of Administration. RIN 2590–AA73 [FR Doc. 2014–29427 Filed 12–15–14; 8:45 am] SUMMARY: BILLING CODE 7590–01–P VerDate Sep<11>2014 17:38 Dec 15, 2014 Jkt 235001 Office of the Comptroller of the Currency 12 CFR Part 30 [Docket ID OCC–2014–001] RIN 1557–AD78 OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches; Integration of Regulations Correction In rule document 2014–21224 appearing on pages 54517 through 54549 in the issue of Thursday, September 11, 2014, make the following corrections: APPENDIX C TO PART 30 [CORRECTED] 1. On page 54544, in the third column, paragraph I.i. is corrected to read as follows: i. * * * The Guidelines are designed to protect against involvement by national banks, Federal savings associations, Federal branches and Federal agencies of foreign banks, and their respective operating subsidiaries (together, ‘‘national banks and Federal savings associations’’), either directly or through loans that they purchase or make through intermediaries, in predatory or abusive residential mortgage lending practices that are injurious to their respective customers and that expose the national bank or Federal savings association to credit, legal, compliance, reputation, and other risks. * * * * * ■ 2. On page 54545, in the third column, second line from the top, the word ‘‘Rrisk’’ should be ‘‘Risk’’. ■ [FR Doc. C1–2014–21224 Filed 12–15–14; 8:45 am] BILLING CODE 1505–01–D FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1251 Housing Trust Fund Federal Housing Finance Agency. ACTION: Interim final rule; request for comments. AGENCY: The Federal Housing Finance Agency (FHFA) is issuing an interim PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 74595 final rule setting forth requirements related to allocations by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the Enterprises) to the Housing Trust and Capital Magnet Funds created by the Housing and Economic Recovery Act of 2008. The rule implements a statutory prohibition against the Enterprises passing the cost of such allocations through to the originators of loans they purchase or securitize. DATES: This interim final rule is effective on December 16, 2014. FHFA will accept written comments on this interim final rule on or before January 15, 2015. ADDRESSES: You may submit your comments on this Interim Final Rule, identified by regulatory identifier number ‘‘RIN 2590–AA73,’’ by any of the following methods: • Agency Web site: www.fhfa.gov/ open-for-comment-or-input. • Federal eRulemaking Portal: www.regulations.gov. Follow the instructions for submitting comments. If you submit your comment to the Federal eRulemaking Portal, please also send it by email to FHFA at RegComments@fhfa.gov to ensure timely receipt by the Agency. Please include ‘‘RIN 2590–AA73’’ in the subject line of the message. • Courier/Hand Delivered: The hand delivery address is: Alfred M. Pollard, General Counsel; Attention: Comments/ RIN 2590–AA73, Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. Deliver the package to the Seventh Street entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 p.m. • U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel; Attention: Comments/RIN 2590–AA73, Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. FOR FURTHER INFORMATION CONTACT: Alfred M. Pollard, General Counsel, (202) 649–3050 (not a toll-free number), Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877–8339. SUPPLEMENTARY INFORMATION: I. Comments FHFA invites comments on any aspect of the interim final rule and will E:\FR\FM\16DER1.SGM 16DER1 74596 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations tkelley on DSK3SPTVN1PROD with RULES take all comments into consideration before issuing a final rule. Copies of all comments will be posted without change, including any personal information you provide such as your name, address, email address and phone number, on the FHFA internet Web site at www.fhfa.gov. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10:00 a.m. and 3:00 p.m., at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649–3804. II. Background Section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act), as added by section 1131(b) of the Housing and Economic Recovery Act of 2008 (HERA), directs the Secretary of the Department of Housing and Urban Development to establish and manage a Housing Trust Fund (HTF) that is funded by amounts allocated by Fannie Mae and Freddie Mac and any other amounts appropriated, transferred, or credited to the HTF under any other provision of law. 12 U.S.C. 4568(a); see also id. at 4567(a). The purpose of the HTF is to provide grants to States ‘‘to increase and preserve the supply of rental housing for extremely low- and very low-income families, including homeless families’’ and ‘‘to increase homeownership for extremely low- and very low-income families.’’ Id. at 4568(a)(1). Separately, section 1339 of the Safety and Soundness Act, as added by section 1131(b) of HERA, establishes the Capital Magnet Fund (CMF) within the U.S. Treasury as a special account within the Community Development Financial Institutions Fund. Id. at 4569(a). As with the HTF, the CMF is also funded by amounts allocated by Fannie Mae and Freddie Mac and any other amounts appropriated, transferred, or credited to it under any other provision of law. Id. at 4569(b); see also id. at 4567(a). Funds in the CMF are available to the Secretary of the Treasury to carry out a competitive grant program to attract private capital for, and increase investment in, ‘‘the development, preservation, rehabilitation, or purchase of affordable housing for primarily extremely low-, very low-, and lowincome families’’ and ‘‘economic development activities or community service facilities . . . which in conjunction with affordable housing activities implement a concerted strategy to stabilize or revitalize a low- VerDate Sep<11>2014 16:25 Dec 15, 2014 Jkt 235001 income area or underserved rural area.’’ Id. at 4569(c). Though the HTF is administered by the Secretary of HUD and the CMF is administered by the Secretary of the Treasury, Fannie Mae and Freddie Mac are supervised by FHFA. See generally id., at 4501 et seq. The Director of FHFA has general regulatory authority over each Enterprise and is responsible for ensuring that the purposes of the Safety and Soundness Act, the Enterprises’ charter acts, and any other applicable law are carried out. Id. at 4511(b). The duties of the Director include ensuring that the operations and activities of each Enterprise foster liquid, efficient, competitive and resilient national housing finance markets, including activities relating to mortgages on housing for low- and moderate-income families; that each Enterprise complies with the Safety and Soundness Act and any rules, regulations, orders and guidelines issued under it or the Enterprises’ charter acts; and that the activities of each Enterprise and the manner in which they are carried out are consistent with the public interest. Id. at 4513(a)(1)(B)(ii), (iii) and (v). The Director is authorized to issue any regulations, guidelines or orders necessary to carry out the duties of the Director under the Safety and Soundness Act or the Enterprise charter acts and to ensure that the purposes of such acts are accomplished. Id. at 4526. The Enterprises’ allocation obligations to support the HTF and CMF (together, the Funds) and related requirements are set forth at section 1337 of the Safety and Soundness Act. Id. at 4567. That section addresses the amount the Enterprises are to set aside and allocate to the Secretaries of HUD and the Treasury each fiscal year, based on the unpaid principal balance of their total new business purchases, which are the single- and multi-family residential mortgage loans or re-financings acquired by the Enterprises and held in portfolio or that support securities, notes or other obligations which the Enterprises guarantee. The section further directs the Director to issue a regulation prohibiting an Enterprise from redirecting the costs of any required allocation to the originators of mortgages the Enterprise purchases or securitizes, addresses enforcement of Enterprise compliance with the section and any regulation, rule or order issued pursuant to it, and authorizes the Director temporarily to suspend allocations if the Director makes any finding among three set forth by statute. Id. Pursuant to section 1337 and the Director’s general regulatory authority, PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 the Director has determined to issue an Interim Final Rule prohibiting each Enterprise from passing through the costs of allocations to originators of mortgages purchased or securitized by the Enterprise. FHFA is issuing this rule as an Interim Final Rule with request for comments. Section 1337 requires the Director to issue a regulation regarding the prohibition against passing costs of the allocations required under the section to originators and how compliance with the requirements of the regulation and statute is to be enforced. The Interim Final Rule’s substantive provisions are established by statute and the rule does not deviate from or add to the statutory requirements. The need for the rule at this time is to support the implementation process that the Director will provide for the Enterprises to begin the process of setting aside and allocating monies for the Funds and to assure that the prohibition on pass through of costs accompanies the planning and deployment of funds. Further, the rule will support the development of regulatory oversight mechanisms to be put in place to assure compliance with the prohibition.1 Regulatory Impact Paperwork Reduction Act The interim final rule does not contain any information collection requirement that requires the approval of OMB under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.). Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that a rule that has a significant economic impact on a substantial number of small entities, small businesses, or small organizations must include an initial regulatory flexibility analysis describing the rule’s impact on small entities. Such an analysis need not be undertaken if the agency has certified that the rule will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). FHFA has considered the impact of the interim final rule under the Regulatory Flexibility Act. FHFA certifies that the Interim Final Rule is not likely to have a significant economic impact on a substantial number of small business entities because the rule is applicable 1 FHFA is issuing this Interim Final Rule with a request for comments to provide transparency on the prohibition and its implementation, though the Rule itself is not a legislative rule but is procedural and thus would be excepted from the normal notice and comment requirements of the Administrative Procedures Act, 5 U.S.C. 553(b) and 5 U.S.C. 553(d)(3). E:\FR\FM\16DER1.SGM 16DER1 Federal Register / Vol. 79, No. 241 / Tuesday, December 16, 2014 / Rules and Regulations and Soundness Act, 12 U.S.C. 4567(a), through increased charges or fees, or decreased premiums, or in any other manner, to the originators of mortgages purchased or securitized by the Enterprise. (b) Enforcement. Compliance by each Enterprise with the foregoing prohibition shall be enforced under subpart 3 of part B of the Safety and Soundness Act, 12 U.S.C. 4581–89. only to the Enterprises, which are not small entities for purposes of the Regulatory Flexibility Act. List of Subjects in 12 CFR Part 1251 Administrative practice and procedure, Capital Magnet Fund, Government-sponsored enterprises, Housing Trust Fund, Reporting and recordkeeping requirements. Authority and Issuance Accordingly, for the reasons stated in the Supplementary Information, under the authority of 12 U.S.C. 4567, the Federal Housing Finance Agency amends Chapter XII of Title 12 of the Code of Federal Regulations, as follows: CHAPTER XII—FEDERAL HOUSING FINANCE AGENCY § 1251.4 Submission of information. The Director may issue guidance, orders, or notices on compliance with section 1337 and this part by the Enterprises, which may include information submissions by the Enterprises. SUBCHAPTER C—ENTERPRISES 1. Add part 1251 to Subchapter C to read as follows: Dated: December 10, 2014. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2014–29345 Filed 12–15–14; 8:45 am] ■ BILLING CODE 8070–01–P PART 1251—CONTRIBUTIONS TO THE HOUSING TRUST AND CAPITAL MAGNET FUNDS Sec. 1251.1 Purpose. 1251.2 Definitions. 1251.3 Prohibition on pass-through of cost of allocation; enforcement. 1251.4 Submission of information. Authority: 12 U.S.C. 1452(c), 1718(b), 4511(b), 4513(a), 4514(a), 4526(a), and 4567. § 1251.1 Purpose. The purpose of this part is to implement a prohibition against an Enterprise redirecting the cost of any allocation to the Housing Trust Fund or the Capital Magnet Fund to originators of mortgages purchased or securitized by an Enterprise. § 1251.2 Definitions. tkelley on DSK3SPTVN1PROD with RULES The following definitions apply to the terms used in and related specifically to this part. Definitions of other terms may be found in 12 CFR part 1201, General Definitions Applying to All Federal Housing Finance Agency Regulations: Capital Magnet Fund means that Fund established at section 1339(a) of the Safety and Soundness Act, 12 U.S.C. 4569(a). Housing Trust Fund means that Fund established by section 1338(a) of the Safety and Soundness Act, 12 U.S.C. 4568(a). § 1251.3 Prohibition on pass-through of cost of allocation; enforcement. (a) In general. No Enterprise shall redirect or pass through the cost of any allocation to the Housing Trust Fund or the Capital Magnet Fund required pursuant to section 1337(a) of the Safety VerDate Sep<11>2014 16:25 Dec 15, 2014 Jkt 235001 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2014–0453; Directorate Identifier 2013–NM–205–AD; Amendment 39–18049; AD 2014–25–07] RIN 2120–AA64 Airworthiness Directives; Airbus Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. AGENCY: We are adopting a new airworthiness directive (AD) for certain Airbus Model A320–211, –212, –214, –231, –232, and –233 airplanes. This AD was prompted by a report of cracking at the splice plate of the frame (FR) 47 butt joint crossing area found during fullscale fatigue testing. This AD requires repetitive inspections for cracking of both sides of the splice plate of that frame butt joint crossing area, and corrective action if necessary. This AD also provides for an optional modification, which terminates the repetitive inspections. We are issuing this AD to detect and correct fatigue cracking of the splice plate of the FR 47 butt joint crossing area, which could result in reduced structural integrity of the airplane. DATES: This AD becomes effective January 20, 2015. The Director of the Federal Register approved the incorporation by reference SUMMARY: PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 74597 of certain publications listed in this AD as of January 20, 2015. ADDRESSES: You may examine the AD docket on the Internet at https://www. regulations.gov/#!docketDetail;D=FAA2014-0453 or in person at the Docket Management Facility, U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC. For service information identified in this AD, contact Airbus, Airworthiness Office—EIAS, 1 Rond Point Maurice Bellonte, 31707 Blagnac Cedex, France; telephone +33 5 61 93 36 96; fax +33 5 61 93 44 51; email account.airwortheas@airbus.com; Internet https:// www.airbus.com. You may view this referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, WA. For information on the availability of this material at the FAA, call 425–227– 1221. FOR FURTHER INFORMATION CONTACT: Sanjay Ralhan, Aerospace Engineer, International Branch, ANM–116, Transport Airplane Directorate, FAA, 1601 Lind Avenue SW., Renton, WA 98057–3356; phone: 425–227–1405; fax: 425–227–1149. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Airbus Model A320– 211, –212, –214, –231, –232, and –233 airplanes. The NPRM published in the Federal Register on July 18, 2014 (79 FR 41940). The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Community, has issued EASA Airworthiness Directive 2013–0203, dated September 6, 2013 (referred to after this as the Mandatory Continuing Airworthiness Information, or ‘‘the MCAI’’), to correct an unsafe condition for certain Airbus Model A320–211, –212, –214, –231, –232, and –233 airplanes. The MCAI states: During the full scale fatigue test on A320– 200, cracks were reported at the splice plate of the frame (FR) 47 butt joint crossing area, both sides. This condition, if not detected and corrected, could affect the structural integrity of the aeroplane. Prompted by these findings, Airbus developed Mod 31012 and introduced this on the production line to modify the current 2 fastener row butt joint into a 3 fastener row butt joint to prevent further damage. For inservice aeroplanes, a corresponding modification was developed and published E:\FR\FM\16DER1.SGM 16DER1

Agencies

[Federal Register Volume 79, Number 241 (Tuesday, December 16, 2014)]
[Rules and Regulations]
[Pages 74595-74597]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29345]


=======================================================================
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FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1251

RIN 2590-AA73


Housing Trust Fund

AGENCY: Federal Housing Finance Agency.

ACTION: Interim final rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing an 
interim final rule setting forth requirements related to allocations by 
the Federal National Mortgage Association (Fannie Mae) and the Federal 
Home Loan Mortgage Corporation (Freddie Mac) (together, the 
Enterprises) to the Housing Trust and Capital Magnet Funds created by 
the Housing and Economic Recovery Act of 2008. The rule implements a 
statutory prohibition against the Enterprises passing the cost of such 
allocations through to the originators of loans they purchase or 
securitize.

DATES: This interim final rule is effective on December 16, 2014. FHFA 
will accept written comments on this interim final rule on or before 
January 15, 2015.

ADDRESSES: You may submit your comments on this Interim Final Rule, 
identified by regulatory identifier number ``RIN 2590-AA73,'' by any of 
the following methods:
     Agency Web site: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments. If you submit your comment to 
the Federal eRulemaking Portal, please also send it by email to FHFA at 
RegComments@fhfa.gov to ensure timely receipt by the Agency. Please 
include ``RIN 2590-AA73'' in the subject line of the message.
     Courier/Hand Delivered: The hand delivery address is: 
Alfred M. Pollard, General Counsel; Attention: Comments/RIN 2590-AA73, 
Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., 
Washington, DC 20024. Deliver the package to the Seventh Street 
entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 
p.m.
     U.S. Mail, United Parcel Service, Federal Express, or 
Other Mail Service: The mailing address for comments is: Alfred M. 
Pollard, General Counsel; Attention: Comments/RIN 2590-AA73, Federal 
Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., 
Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Alfred M. Pollard, General Counsel, 
(202) 649-3050 (not a toll-free number), Federal Housing Finance 
Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. The 
telephone number for the Telecommunications Device for the Hearing 
Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Comments

    FHFA invites comments on any aspect of the interim final rule and 
will

[[Page 74596]]

take all comments into consideration before issuing a final rule. 
Copies of all comments will be posted without change, including any 
personal information you provide such as your name, address, email 
address and phone number, on the FHFA internet Web site at 
www.fhfa.gov. In addition, copies of all comments received will be 
available for examination by the public on business days between the 
hours of 10:00 a.m. and 3:00 p.m., at the Federal Housing Finance 
Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024. To 
make an appointment to inspect comments, please call the Office of 
General Counsel at (202) 649-3804.

II. Background

    Section 1338 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (Safety and Soundness Act), as added by 
section 1131(b) of the Housing and Economic Recovery Act of 2008 
(HERA), directs the Secretary of the Department of Housing and Urban 
Development to establish and manage a Housing Trust Fund (HTF) that is 
funded by amounts allocated by Fannie Mae and Freddie Mac and any other 
amounts appropriated, transferred, or credited to the HTF under any 
other provision of law. 12 U.S.C. 4568(a); see also id. at 4567(a). The 
purpose of the HTF is to provide grants to States ``to increase and 
preserve the supply of rental housing for extremely low- and very low-
income families, including homeless families'' and ``to increase 
homeownership for extremely low- and very low-income families.'' Id. at 
4568(a)(1).
    Separately, section 1339 of the Safety and Soundness Act, as added 
by section 1131(b) of HERA, establishes the Capital Magnet Fund (CMF) 
within the U.S. Treasury as a special account within the Community 
Development Financial Institutions Fund. Id. at 4569(a). As with the 
HTF, the CMF is also funded by amounts allocated by Fannie Mae and 
Freddie Mac and any other amounts appropriated, transferred, or 
credited to it under any other provision of law. Id. at 4569(b); see 
also id. at 4567(a). Funds in the CMF are available to the Secretary of 
the Treasury to carry out a competitive grant program to attract 
private capital for, and increase investment in, ``the development, 
preservation, rehabilitation, or purchase of affordable housing for 
primarily extremely low-, very low-, and low-income families'' and 
``economic development activities or community service facilities . . . 
which in conjunction with affordable housing activities implement a 
concerted strategy to stabilize or revitalize a low-income area or 
underserved rural area.'' Id. at 4569(c).
    Though the HTF is administered by the Secretary of HUD and the CMF 
is administered by the Secretary of the Treasury, Fannie Mae and 
Freddie Mac are supervised by FHFA. See generally id., at 4501 et seq. 
The Director of FHFA has general regulatory authority over each 
Enterprise and is responsible for ensuring that the purposes of the 
Safety and Soundness Act, the Enterprises' charter acts, and any other 
applicable law are carried out. Id. at 4511(b). The duties of the 
Director include ensuring that the operations and activities of each 
Enterprise foster liquid, efficient, competitive and resilient national 
housing finance markets, including activities relating to mortgages on 
housing for low- and moderate-income families; that each Enterprise 
complies with the Safety and Soundness Act and any rules, regulations, 
orders and guidelines issued under it or the Enterprises' charter acts; 
and that the activities of each Enterprise and the manner in which they 
are carried out are consistent with the public interest. Id. at 
4513(a)(1)(B)(ii), (iii) and (v). The Director is authorized to issue 
any regulations, guidelines or orders necessary to carry out the duties 
of the Director under the Safety and Soundness Act or the Enterprise 
charter acts and to ensure that the purposes of such acts are 
accomplished. Id. at 4526.
    The Enterprises' allocation obligations to support the HTF and CMF 
(together, the Funds) and related requirements are set forth at section 
1337 of the Safety and Soundness Act. Id. at 4567. That section 
addresses the amount the Enterprises are to set aside and allocate to 
the Secretaries of HUD and the Treasury each fiscal year, based on the 
unpaid principal balance of their total new business purchases, which 
are the single- and multi-family residential mortgage loans or re-
financings acquired by the Enterprises and held in portfolio or that 
support securities, notes or other obligations which the Enterprises 
guarantee. The section further directs the Director to issue a 
regulation prohibiting an Enterprise from redirecting the costs of any 
required allocation to the originators of mortgages the Enterprise 
purchases or securitizes, addresses enforcement of Enterprise 
compliance with the section and any regulation, rule or order issued 
pursuant to it, and authorizes the Director temporarily to suspend 
allocations if the Director makes any finding among three set forth by 
statute. Id.
    Pursuant to section 1337 and the Director's general regulatory 
authority, the Director has determined to issue an Interim Final Rule 
prohibiting each Enterprise from passing through the costs of 
allocations to originators of mortgages purchased or securitized by the 
Enterprise.
    FHFA is issuing this rule as an Interim Final Rule with request for 
comments. Section 1337 requires the Director to issue a regulation 
regarding the prohibition against passing costs of the allocations 
required under the section to originators and how compliance with the 
requirements of the regulation and statute is to be enforced. The 
Interim Final Rule's substantive provisions are established by statute 
and the rule does not deviate from or add to the statutory 
requirements. The need for the rule at this time is to support the 
implementation process that the Director will provide for the 
Enterprises to begin the process of setting aside and allocating monies 
for the Funds and to assure that the prohibition on pass through of 
costs accompanies the planning and deployment of funds. Further, the 
rule will support the development of regulatory oversight mechanisms to 
be put in place to assure compliance with the prohibition.\1\
---------------------------------------------------------------------------

    \1\ FHFA is issuing this Interim Final Rule with a request for 
comments to provide transparency on the prohibition and its 
implementation, though the Rule itself is not a legislative rule but 
is procedural and thus would be excepted from the normal notice and 
comment requirements of the Administrative Procedures Act, 5 U.S.C. 
553(b) and 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------

Regulatory Impact

Paperwork Reduction Act

    The interim final rule does not contain any information collection 
requirement that requires the approval of OMB under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
a rule that has a significant economic impact on a substantial number 
of small entities, small businesses, or small organizations must 
include an initial regulatory flexibility analysis describing the 
rule's impact on small entities. Such an analysis need not be 
undertaken if the agency has certified that the rule will not have a 
significant economic impact on a substantial number of small entities. 
5 U.S.C. 605(b). FHFA has considered the impact of the interim final 
rule under the Regulatory Flexibility Act. FHFA certifies that the 
Interim Final Rule is not likely to have a significant economic impact 
on a substantial number of small business entities because the rule is 
applicable

[[Page 74597]]

only to the Enterprises, which are not small entities for purposes of 
the Regulatory Flexibility Act.

List of Subjects in 12 CFR Part 1251

    Administrative practice and procedure, Capital Magnet Fund, 
Government-sponsored enterprises, Housing Trust Fund, Reporting and 
recordkeeping requirements.

Authority and Issuance

    Accordingly, for the reasons stated in the Supplementary 
Information, under the authority of 12 U.S.C. 4567, the Federal Housing 
Finance Agency amends Chapter XII of Title 12 of the Code of Federal 
Regulations, as follows:

CHAPTER XII--FEDERAL HOUSING FINANCE AGENCY

SUBCHAPTER C--ENTERPRISES

0
1. Add part 1251 to Subchapter C to read as follows:

PART 1251--CONTRIBUTIONS TO THE HOUSING TRUST AND CAPITAL MAGNET 
FUNDS

Sec.
1251.1 Purpose.
1251.2 Definitions.
1251.3 Prohibition on pass-through of cost of allocation; 
enforcement.
1251.4 Submission of information.

    Authority:  12 U.S.C. 1452(c), 1718(b), 4511(b), 4513(a), 
4514(a), 4526(a), and 4567.


Sec.  1251.1  Purpose.

    The purpose of this part is to implement a prohibition against an 
Enterprise redirecting the cost of any allocation to the Housing Trust 
Fund or the Capital Magnet Fund to originators of mortgages purchased 
or securitized by an Enterprise.


Sec.  1251.2  Definitions.

    The following definitions apply to the terms used in and related 
specifically to this part. Definitions of other terms may be found in 
12 CFR part 1201, General Definitions Applying to All Federal Housing 
Finance Agency Regulations:
    Capital Magnet Fund means that Fund established at section 1339(a) 
of the Safety and Soundness Act, 12 U.S.C. 4569(a).
    Housing Trust Fund means that Fund established by section 1338(a) 
of the Safety and Soundness Act, 12 U.S.C. 4568(a).


Sec.  1251.3  Prohibition on pass-through of cost of allocation; 
enforcement.

    (a) In general. No Enterprise shall re-direct or pass through the 
cost of any allocation to the Housing Trust Fund or the Capital Magnet 
Fund required pursuant to section 1337(a) of the Safety and Soundness 
Act, 12 U.S.C. 4567(a), through increased charges or fees, or decreased 
premiums, or in any other manner, to the originators of mortgages 
purchased or securitized by the Enterprise.
    (b) Enforcement. Compliance by each Enterprise with the foregoing 
prohibition shall be enforced under subpart 3 of part B of the Safety 
and Soundness Act, 12 U.S.C. 4581-89.


Sec.  1251.4  Submission of information.

    The Director may issue guidance, orders, or notices on compliance 
with section 1337 and this part by the Enterprises, which may include 
information submissions by the Enterprises.

    Dated: December 10, 2014.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2014-29345 Filed 12-15-14; 8:45 am]
BILLING CODE 8070-01-P
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