Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold, 77854-77855 [2014-30404]
Download as PDF
77854
Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations
(u) Small bank—(1) Definition. Small
bank means a bank that, as of December
31 of either of the prior two calendar
years, had assets of less than $1.221
billion. Intermediate small bank means
a small bank with assets of at least $305
million as of December 31 of both of the
prior two calendar years and less than
$1.221 billion as of December 31 of
either of the prior two calendar years.
*
*
*
*
*
prior two calendar years and less than
$1.221 billion as of December 31 of
either of the prior two calendar years.
*
*
*
*
*
BUREAU OF CONSUMER FINANCIAL
PROTECTION
Federal Deposit Insurance Corporation
12 CFR Chapter III
Home Mortgage Disclosure
(Regulation C) Adjustment to AssetSize Exemption Threshold
Authority and Issuance
AGENCY:
3. The authority citation for part 195
continues to read as follows:
For the reasons set forth in the
section, the
Board of Directors of the Federal
Deposit Insurance Corporation amends
part 345 of chapter III of title 12 of the
Code of Federal Regulations to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464,
1814, 1816, 1828(c), 2901 through 2908, and
5412(b)(2)(B).
PART 345—COMMUNITY
REINVESTMENT
4. Revise § 195.12(u)(1) to read as
follows:
■
PART 195—COMMUNITY
REINVESTMENT
■
■
§ 195.12
7. The authority citation for part 345
continues to read as follows:
Definitions.
*
*
*
*
*
(u) Small savings association—(1)
Definition. Small savings association
means a savings association that, as of
December 31 of either of the prior two
calendar years, had assets of less than
$1.221 billion. Intermediate small
savings association means a small
savings association with assets of at
least $305 million as of December 31 of
both of the prior two calendar years and
less than $1.221 billion as of December
31 of either of the prior two calendar
years.
*
*
*
*
*
Federal Reserve System
12 CFR Chapter II
For the reasons set forth in the
section, the
Board of Governors of the Federal
Reserve System amends part 228 of
chapter II of title 12 of the Code of
Federal Regulations as follows:
SUPPLEMENTARY INFORMATION
PART 228—COMMUNITY
REINVESTMENT (REGULATION BB)
5. The authority citation for part 228
continues to read as follows:
Authority: 12 U.S.C. 321, 325, 1828(c),
1842, 1843, 1844, and 2901 et seq.
6. Revise § 228.12(u)(1) to read as
follows:
■
mstockstill on DSK4VPTVN1PROD with RULES
Definitions.
*
*
*
*
*
(u) Small bank—(1) Definition. Small
bank means a bank that, as of December
31 of either of the prior two calendar
years, had assets of less than $1.221
billion. Intermediate small bank means
a small bank with assets of at least $305
million as of December 31 of both of the
VerDate Sep<11>2014
18:05 Dec 24, 2014
Jkt 235001
Authority: 12 U.S.C. 1814–1817, 1819–
1820, 1828, 1831u and 2901–2908, 3103–
3104, and 3108(a).
8. Revise § 345.12(u)(1) to read as
follows:
■
§ 345.12
Definitions.
*
*
*
*
*
(u) Small bank—(1) Definition. Small
bank means a bank that, as of December
31 of either of the prior two calendar
years, had assets of less than $1.221
billion. Intermediate small bank means
a small bank with assets of at least $305
million as of December 31 of both of the
prior two calendar years and less than
$1.221 billion as of December 31 of
either of the prior two calendar years.
*
*
*
*
*
Dated: December 17, 2014.
Amy S. Friend,
Senior Deputy Comptroller and Chief
Counsel.
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary of the Board under delegated
authority, December 18, 2014.
Robert deV. Frierson,
Secretary of the Board.
■
§ 228.12
SUPPLEMENTARY INFORMATION
By order of the Board of Directors.
Dated at Washington, DC, this 18th day of
December, 2014.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014–30256 Filed 12–24–14; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
PO 00000
Frm 00022
Fmt 4700
Sfmt 4700
12 CFR Part 1003
Bureau of Consumer Financial
Protection.
ACTION: Final rule; official commentary.
The Bureau of Consumer
Financial Protection (Bureau) is issuing
a final rule amending the official
commentary that interprets the
requirements of the Bureau’s Regulation
C (Home Mortgage Disclosure) to reflect
a change in the asset-size exemption
threshold for banks, savings
associations, and credit unions based on
the annual percentage change in the
average of the Consumer Price Index for
Urban Wage Earners and Clerical
Workers (CPI–W). The exemption
threshold is adjusted to increase to $44
million from $43 million. The
adjustment is based on the 1.1 percent
increase in the average of the CPI–W for
the 12-month period ending in
November 2014. Therefore, banks,
savings associations, and credit unions
with assets of $44 million or less as of
December 31, 2014, are exempt from
collecting data in 2015.
DATES: This final rule is effective
January 1, 2015.
FOR FURTHER INFORMATION CONTACT:
James Wylie, Counsel, Office of
Regulations, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Home Mortgage Disclosure Act of
1975 (HMDA) (12 U.S.C. 2801–2810)
requires most mortgage lenders located
in metropolitan areas to collect data
about their housing-related lending
activity. Annually, lenders must report
that data to the appropriate Federal
agencies and make the data available to
the public. The Bureau’s Regulation C
(12 CFR part 1003) implements HMDA.
Prior to 1997, HMDA exempted
certain depository institutions as
defined in HMDA (i.e., banks, savings
associations, and credit unions) with
assets totaling $10 million or less as of
the preceding year-end. In 1996, HMDA
was amended to expand the asset-size
exemption for these depository
institutions. 12 U.S.C. 2808(b). The
amendment increased the dollar amount
of the asset-size exemption threshold by
requiring a one-time adjustment of the
$10 million figure based on the
percentage by which the CPI–W for
1996 exceeded the CPI–W for 1975, and
E:\FR\FM\29DER1.SGM
29DER1
Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations
is technical and non-discretionary, and
it applies the method previously
established in the agency’s regulations
for determining adjustments to the
threshold.
II. Procedural Requirements
mstockstill on DSK4VPTVN1PROD with RULES
it provided for annual adjustments
thereafter based on the annual
percentage increase in the CPI–W,
rounded to the nearest multiple of $1
million dollars.
The definition of ‘‘financial
institution’’ in Regulation C provides
that the Bureau will adjust the asset
threshold based on the year-to-year
change in the average of the CPI–W, not
seasonally adjusted, for each 12-month
period ending in November, rounded to
the nearest million. 12 CFR 1003.2. For
2014, the threshold was $43 million.
During the 12-month period ending in
November 2014, the average of the CPI–
W increased by 1.1 percent. As a result,
the exemption threshold is increased to
$44 million. Thus, banks, savings
associations, and credit unions with
assets of $44 million or less as of
December 31, 2014, are exempt from
collecting data in 2015. An institution’s
exemption from collecting data in 2015
does not affect its responsibility to
report data it was required to collect in
2014.
For the reasons set forth in the
preamble, the Bureau amends
Regulation C, 12 CFR part 1003, as set
forth below:
A. Administrative Procedure Act
Under the Administrative Procedure
Act (APA), notice and opportunity for
public comment are not required if the
Bureau finds that notice and public
comment are impracticable,
unnecessary, or contrary to the public
interest. 5 U.S.C. 553(b)(B). Pursuant to
this final rule, comment 1003.2
(Financial institution)-2 in Regulation C,
supplement I is amended to update the
exemption threshold. The amendment
in this final rule is technical and
nondiscretionary, and it merely applies
the formula established by Regulation C
for determining any adjustments to the
exemption threshold. For these reasons,
the Bureau has determined that
publishing a notice of proposed
rulemaking and providing opportunity
for public comment are unnecessary.
Therefore, the amendment is adopted in
final form.
Section 553(d) of the APA generally
requires publication of a final rule not
less than 30 days before its effective
date, except for (1) a substantive rule
which grants or recognizes an
exemption or relieves a restriction; (2)
interpretive rules and statements of
policy; or (3) as otherwise provided by
the agency for good cause found and
published with the rule. 5 U.S.C. 553(d).
At a minimum, the Bureau believes the
amendments fall under the third
exception to section 553(d). The Bureau
finds that there is good cause to make
the amendments effective on January 1,
2015. The amendment in this final rule
VerDate Sep<11>2014
18:05 Dec 24, 2014
Jkt 235001
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis. 5 U.S.C. 603(a), 604(a).
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR 1320), the agency reviewed this
final rule. No collections of information
pursuant to the Paperwork Reduction
Act are contained in the final rule.
List of Subjects in 12 CFR Part 1003
Banking, Banks, Credit unions,
Mortgages, National banks, Reporting
and recordkeeping requirements,
Savings associations.
Authority and Issuance
PART 1003—HOME MORTGAGE
DISCLOSURE (REGULATION C)
1. The authority citation for part 1003
continues to read as follows:
■
Authority: 12 U.S.C. 2803, 2804, 2805,
5512, 5581.
2. In Supplement I to Part 1003, under
Section 1003.2—Definitions, under the
definition ‘‘Financial institution’’,
paragraph 2 is revised to read as
follows:
■
Supplement I to Part 1003—Staff
Commentary
*
*
*
*
*
Section 1003.2—Definitions
*
*
*
*
*
Financial institution.
*
*
*
*
*
2. Adjustment of exemption threshold for
banks, savings associations, and credit
unions. For data collection in 2015, the assetsize exemption threshold is $44 million.
Banks, savings associations, and credit
unions with assets at or below $44 million
as of December 31, 2014, are exempt from
collecting data for 2015.
*
*
*
*
*
Dated: December 15, 2014.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2014–30404 Filed 12–24–14; 8:45 am]
BILLING CODE 4810–AM–P
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
77855
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
Truth in Lending Act (Regulation Z)
Adjustment to Asset-Size Exemption
Threshold
Bureau of Consumer Financial
Protection.
ACTION: Final rule; official
interpretation.
AGENCY:
The Bureau is amending the
official commentary that interprets the
requirements of the Bureau’s Regulation
Z (Truth in Lending) to reflect a change
in the asset size threshold for certain
creditors to qualify for an exemption to
the requirement to establish an escrow
account for a higher-priced mortgage
loan based on the annual percentage
change in the average of the Consumer
Price Index for Urban Wage Earners and
Clerical Workers (CPI–W) for the 12month period ending in November. The
exemption threshold is adjusted to
increase to $2.060 billion from $2.028
billion. The adjustment is based on the
1.1 percent increase in the average of
the CPI–W for the 12-month period
ending in November 2014. Therefore,
creditors with assets of $2.060 billion or
less as of December 31, 2014, are
exempt, if other requirements of
Regulation Z also are met, from
establishing escrow accounts for higherpriced mortgage loans in 2015. The
adjustment to the escrows exemption
asset-size threshold will also increase a
similar threshold for small-creditor
portfolio and balloon-payment qualified
mortgages. Balloon-payment qualified
mortgages that satisfy all applicable
criteria, including being made by
creditors that do not exceed the assetsize threshold, are also excepted from
the prohibition on balloon payments for
high-cost mortgages.
DATES: This final rule is effective
January 1, 2015.
FOR FURTHER INFORMATION CONTACT:
James Wylie, Counsel, Office of
Regulations, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Dodd-Frank Wall Street Reform
and Consumer Protection Act (DoddFrank Act) amended TILA section
129D(a) to contain a general
requirement that an escrow account be
established by a creditor to pay for
property taxes and insurance premiums
for certain first-lien higher-priced
mortgage loan transactions. Section
1461 of the Dodd-Frank Act also
generally permits an exemption from
E:\FR\FM\29DER1.SGM
29DER1
Agencies
[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Rules and Regulations]
[Pages 77854-77855]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30404]
-----------------------------------------------------------------------
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1003
Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size
Exemption Threshold
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Final rule; official commentary.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is
issuing a final rule amending the official commentary that interprets
the requirements of the Bureau's Regulation C (Home Mortgage
Disclosure) to reflect a change in the asset-size exemption threshold
for banks, savings associations, and credit unions based on the annual
percentage change in the average of the Consumer Price Index for Urban
Wage Earners and Clerical Workers (CPI-W). The exemption threshold is
adjusted to increase to $44 million from $43 million. The adjustment is
based on the 1.1 percent increase in the average of the CPI-W for the
12-month period ending in November 2014. Therefore, banks, savings
associations, and credit unions with assets of $44 million or less as
of December 31, 2014, are exempt from collecting data in 2015.
DATES: This final rule is effective January 1, 2015.
FOR FURTHER INFORMATION CONTACT: James Wylie, Counsel, Office of
Regulations, at (202) 435-7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Home Mortgage Disclosure Act of 1975 (HMDA) (12 U.S.C. 2801-
2810) requires most mortgage lenders located in metropolitan areas to
collect data about their housing-related lending activity. Annually,
lenders must report that data to the appropriate Federal agencies and
make the data available to the public. The Bureau's Regulation C (12
CFR part 1003) implements HMDA.
Prior to 1997, HMDA exempted certain depository institutions as
defined in HMDA (i.e., banks, savings associations, and credit unions)
with assets totaling $10 million or less as of the preceding year-end.
In 1996, HMDA was amended to expand the asset-size exemption for these
depository institutions. 12 U.S.C. 2808(b). The amendment increased the
dollar amount of the asset-size exemption threshold by requiring a one-
time adjustment of the $10 million figure based on the percentage by
which the CPI-W for 1996 exceeded the CPI-W for 1975, and
[[Page 77855]]
it provided for annual adjustments thereafter based on the annual
percentage increase in the CPI-W, rounded to the nearest multiple of $1
million dollars.
The definition of ``financial institution'' in Regulation C
provides that the Bureau will adjust the asset threshold based on the
year-to-year change in the average of the CPI-W, not seasonally
adjusted, for each 12-month period ending in November, rounded to the
nearest million. 12 CFR 1003.2. For 2014, the threshold was $43
million. During the 12-month period ending in November 2014, the
average of the CPI-W increased by 1.1 percent. As a result, the
exemption threshold is increased to $44 million. Thus, banks, savings
associations, and credit unions with assets of $44 million or less as
of December 31, 2014, are exempt from collecting data in 2015. An
institution's exemption from collecting data in 2015 does not affect
its responsibility to report data it was required to collect in 2014.
II. Procedural Requirements
A. Administrative Procedure Act
Under the Administrative Procedure Act (APA), notice and
opportunity for public comment are not required if the Bureau finds
that notice and public comment are impracticable, unnecessary, or
contrary to the public interest. 5 U.S.C. 553(b)(B). Pursuant to this
final rule, comment 1003.2 (Financial institution)-2 in Regulation C,
supplement I is amended to update the exemption threshold. The
amendment in this final rule is technical and nondiscretionary, and it
merely applies the formula established by Regulation C for determining
any adjustments to the exemption threshold. For these reasons, the
Bureau has determined that publishing a notice of proposed rulemaking
and providing opportunity for public comment are unnecessary.
Therefore, the amendment is adopted in final form.
Section 553(d) of the APA generally requires publication of a final
rule not less than 30 days before its effective date, except for (1) a
substantive rule which grants or recognizes an exemption or relieves a
restriction; (2) interpretive rules and statements of policy; or (3) as
otherwise provided by the agency for good cause found and published
with the rule. 5 U.S.C. 553(d). At a minimum, the Bureau believes the
amendments fall under the third exception to section 553(d). The Bureau
finds that there is good cause to make the amendments effective on
January 1, 2015. The amendment in this final rule is technical and non-
discretionary, and it applies the method previously established in the
agency's regulations for determining adjustments to the threshold.
B. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
Regulatory Flexibility Act does not require an initial or final
regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a).
C. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR 1320), the agency reviewed this final rule. No collections
of information pursuant to the Paperwork Reduction Act are contained in
the final rule.
List of Subjects in 12 CFR Part 1003
Banking, Banks, Credit unions, Mortgages, National banks, Reporting
and recordkeeping requirements, Savings associations.
Authority and Issuance
For the reasons set forth in the preamble, the Bureau amends
Regulation C, 12 CFR part 1003, as set forth below:
PART 1003--HOME MORTGAGE DISCLOSURE (REGULATION C)
0
1. The authority citation for part 1003 continues to read as follows:
Authority: 12 U.S.C. 2803, 2804, 2805, 5512, 5581.
0
2. In Supplement I to Part 1003, under Section 1003.2--Definitions,
under the definition ``Financial institution'', paragraph 2 is revised
to read as follows:
Supplement I to Part 1003--Staff Commentary
* * * * *
Section 1003.2--Definitions
* * * * *
Financial institution.
* * * * *
2. Adjustment of exemption threshold for banks, savings
associations, and credit unions. For data collection in 2015, the
asset-size exemption threshold is $44 million. Banks, savings
associations, and credit unions with assets at or below $44 million
as of December 31, 2014, are exempt from collecting data for 2015.
* * * * *
Dated: December 15, 2014.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2014-30404 Filed 12-24-14; 8:45 am]
BILLING CODE 4810-AM-P