Consumer Leasing (Regulation M), 73945-73947 [2015-30071]
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Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Rules and Regulations
73945
for which a general notice of proposed
rulemaking was published.12 As
discussed above, the OCC has
determined that the publication of a
general notice of proposed rulemaking
is unnecessary.
Paragraph 34.203(b)(2)
1. Threshold Amount. * * *
iii. From January 1, 2016, through
December 31, 2016, the threshold amount is
$25,500.
List of Subjects
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
Supplement I to Part 1026—Official
Interpretations
Authority and Issuance
*
For the reasons set forth in the
preamble, the Board amends Regulation
Z, 12 CFR part 226, as set forth below:
Subpart E—Special Rules for Certain
Home Mortgage Transactions
PART 226—TRUTH IN LENDING
(REGULATION Z)
Section 1026.35—Requirements for
Higher-Priced Mortgage Loans
3. The authority citation for part 226
continues to read as follows:
*
Authority: 12 U.S.C. 3806; 15 U.S.C. 1604,
1637(c)(5), 1639(l), and 1639h; Pub. L. 111–
24, section 2, 123 Stat. 1734; Pub. L. 111–
203, 124 Stat. 1376.
*
12 CFR Part 34
Appraisal, Appraiser, Banks, Banking,
Consumer protection, Credit, Mortgages,
National banks, Reporting and
recordkeeping requirements, Savings
associations, Truth in lending.
12 CFR Part 226
Advertising, Appraisal, Appraiser,
Consumer protection, Credit, Federal
Reserve System, Mortgages, Reporting
and recordkeeping requirements, Truth
in lending.
12 CFR Part 1026
Advertising, Appraisal, Appraiser,
Banking, Banks, Consumer protection,
Credit, Credit unions, Mortgages,
National banks, Reporting and
recordkeeping requirements, Savings
associations, Truth in lending.
Office of the Comptroller of the
Currency
For the reasons set forth in the
preamble, the OCC amends 12 CFR part
34 as set forth below:
PART 34—REAL ESTATE LENDING
AND APPRAISALS
2. In Appendix C to Subpart G, under
Section 34.203—Appraisals for HigherPriced Mortgage Loans, paragraph
34.203(b)(2)–1.iii is added to read as
follows:
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12 2
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16:09 Nov 25, 2015
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Subpart E—Special Rules for Certain
Home Mortgage Transactions
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Section 226.43—Appraisals for HigherRisk Mortgage Loans
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*
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Paragraph 43(b)(2)
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35(c) Appraisals
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35(c)(2) Exemptions
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Paragraph 35(c)(2)(ii)
1. * * *
iii. From January 1, 2016, through
December 31, 2016, the threshold amount is
$25,500.
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*
Dated: November 19, 2015.
Amy 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, November 18, 2015.
Robert deV. Frierson,
Secretary of the Board.
Dated: October 8, 2015.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2015–30097 Filed 11–25–15; 8:45 am]
FEDERAL RESERVE SYSTEM
*
*
*
*
BUREAU OF CONSUMER FINANCIAL
PROTECTION
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation Z, 12 CFR part 1026, as set
forth below:
PART 1026—TRUTH IN LENDING
(REGULATION Z)
Authority: 12 U.S.C. 2601, 2603–2605,
2607, 2609, 2617, 3353, 5511, 5512, 5532,
5581; 15 U.S.C. 1601 et seq.
Jkt 238001
*
1. * * *
iii. From January 1, 2016, through
December 31, 2016, the threshold amount is
$25,500.
5. The authority citation for part 1026
continues to read as follows:
U.S.C. 1532.
VerDate Sep<11>2014
*
■
34.203(b) Exemptions
*
4. In Supplement I to part 226, under
Section 226.43—Appraisals for HigherRisk Mortgage Loans, under paragraph
43(b)(2), paragraph 43(b)(2)–1.iii is
added to read as follows:
*
*
*
Subpart G—Appraisals for HigherPriced Mortgage Loans
*
*
43(b) Exemptions
Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a,
371, 1463, 1464, 1465,1701j–3, 1828(o), 3331
et seq., 5101 et seq., 5412(b)(2)(B) and 15
U.S.C. 1639h.
*
*
■
*
1. The authority citation for part 34
continues to read as follows:
■
Section 34.203—Appraisals for HigherPriced Mortgage Loans
*
■
*
Authority and Issuance
Appendix C to Subpart G—OCC
Interpretations
*
Supplement I to Part 226—Official Staff
Interpretations
DEPARTMENT OF THE TREASURY
■
*
6. In Supplement I to part 1026, under
Section 1026.35—Requirements for
Higher-Priced Mortgage Loans, under
paragraph 35(c)(2)(ii), paragraph
35(c)(2)(ii)–1.iii is added to read as
follows:
■
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BILLING CODE 4810–33–P; 6210–01–P; 4810–AM–P
12 CFR Part 213
[Docket No. R–1519]
RIN 7100 AE–35
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1013
RIN 3170–AA06
Consumer Leasing (Regulation M)
Board of Governors of the
Federal Reserve System (Board); and
Bureau of Consumer Financial
Protection (Bureau).
AGENCIES:
E:\FR\FM\27NOR1.SGM
27NOR1
73946
Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Rules and Regulations
Final rules, official
interpretations and commentary.
ACTION:
The Board and the Bureau are
publishing final rules amending the
official interpretations and commentary
for the agencies’ regulations that
implement the Consumer Leasing Act
(CLA). The Dodd-Frank Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act) amended the CLA by
requiring that the dollar threshold for
exempt consumer leases be adjusted
annually by the annual percentage
increase in the Consumer Price Index
for Urban Wage Earners and Clerical
Workers (CPI–W). If there is no annual
percentage increase in the CPI–W, the
Board and Bureau will not adjust this
exemption threshold from the prior
year. Based on the annual percentage
decrease in the CPI–W as of June 1,
2015, the exemption threshold will
remain at $54,600 through December 31,
2016.
Because the Dodd-Frank Act also
requires similar adjustments in the
Truth in Lending Act’s threshold for
exempt consumer credit transactions,
the Board and the Bureau are making
similar amendments to each of their
respective regulations implementing the
Truth in Lending Act elsewhere in this
issue of the Federal Register.
DATES: This final rule is effective
January 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Board: Vivian W. Wong, Counsel,
Division of Consumer and Community
Affairs, Board of Governors of the
Federal Reserve System, at (202) 452–
3667; for users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
Bureau: James Wylie, Counsel, Office
of Regulations, Bureau of Consumer
Financial Protection, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Background
The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010
(Dodd-Frank Act) increased the
threshold in the Consumer Leasing Act
(CLA) for exempt consumer leases from
$25,000 to $50,000, effective July 21,
2011.1 In addition, the Dodd-Frank Act
requires that this threshold be adjusted
annually for inflation by the annual
percentage increase in the Consumer
Price Index for Urban Wage Earners and
Clerical Workers (CPI–W), as published
by the Bureau of Labor Statistics. In
April 2011, the Board issued a final rule
amending Regulation M (which
implements the CLA) consistent with
1 Public Law 111–203 section 1100E, 124 Stat.
1376 (2010).
VerDate Sep<11>2014
16:09 Nov 25, 2015
Jkt 238001
these provisions of the Dodd-Frank Act
along with a similar final rule amending
Regulation Z (which implements the
Truth in Lending Act) (collectively, the
Board Final Threshold Rules).2
Title X of the Dodd-Frank Act
transferred rulemaking authority for a
number of consumer financial
protection laws from the Board to the
Bureau, effective July 21, 2011. In
connection with this transfer of
rulemaking authority, the Bureau issued
its own Regulation M implementing the
CLA in an interim final rule, 12 CFR
part 1013 (Bureau Interim Final Rule).3
The Bureau Interim Final Rule
substantially duplicated the Board’s
Regulation M, including the revisions to
the threshold for exempt transactions
made by the Board in April 2011.
Although the Bureau has the authority
to issue rules to implement the CLA for
most entities, the Board retains
authority to issue rules under the CLA
for certain motor vehicle dealers
covered by section 1029(a) of the DoddFrank Act, and the Board’s Regulation
M continues to apply to those entities.4
Section 213.2(e)(1) of the Board’s
Regulation M and § 1013.2(e)(1) of the
Bureau’s Regulation M, and their
accompanying commentaries, provide
that the exemption threshold will be
adjusted annually effective January 1 of
each year based on any annual
percentage increase in the CPI–W that
was in effect on the preceding June 1.
Any increase in the threshold amount
will be rounded to the nearest $100
increment. For example, if the annual
percentage increase in the CPI–W would
result in a $950 increase in the
threshold amount, the threshold amount
2 76 FR 18349 (Apr. 4, 2011); 76 FR 18354 (Apr.
4, 2011).
3 76 FR 78500 (Dec. 19, 2011).
4 Section 1029(a) of the Dodd-Frank Act states:
‘‘Except as permitted in subsection (b), the Bureau
may not exercise any rulemaking, supervisory,
enforcement, or any other authority . . . over a
motor vehicle dealer that is predominantly engaged
in the sale and servicing of motor vehicles, the
leasing and servicing of motor vehicles, or both.’’
12 U.S.C. 5519(a). Section 1029(b) of the DoddFrank Act states: ‘‘Subsection (a) shall not apply to
any person, to the extent that such person (1)
provides consumers with any services related to
residential or commercial mortgages or selffinancing transactions involving real property; (2)
operates a line of business (A) that involves the
extension of retail credit or retail leases involving
motor vehicles; and (B) in which (i) the extension
of retail credit or retail leases are provided directly
to consumers; and (ii) the contract governing such
extension of retail credit or retail leases is not
routinely assigned to an unaffiliated third party
finance or leasing source; or (3) offers or provides
a consumer financial product or service not
involving or related to the sale, financing, leasing,
rental, repair, refurbishment, maintenance, or other
servicing of motor vehicles, motor vehicle parts, or
any related or ancillary product or service.’’ 12
U.S.C. 5519(b).
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will be increased by $1,000. However, if
the annual percentage increase in the
CPI–W would result in a $949 increase
in the threshold amount, the threshold
amount will be increased by $900.5 As
stated in the Board Final Threshold
Rules, if there is no annual percentage
increase in the CPI–W, the Board and
Bureau will not adjust the exemption
threshold from the prior year.6
II. Adjustment and Commentary
Revision
Effective January 1, 2016, the
exemption threshold amount remains at
$54,600. This is based on the CPI–W in
effect on June 1, 2015, which was
reported on May 22, 2015. The Bureau
of Labor Statistics publishes consumerbased indices monthly, but does not
report a CPI change on June 1;
adjustments are reported in the middle
of the month. The CPI–W is a subset of
the CPI–U index (based on all urban
consumers) and represents
approximately 28 percent of the U.S.
population. Because the CPI–W reported
on May 22, 2015 reflects a 0.8 percent
decrease in the CPI–W from April 2014
to April 2015, the Board and the Bureau
are not adjusting the exemption
threshold amount. The Board and the
Bureau are revising the commentaries to
their respective regulations to add new
comment 2(e)–9.vii to state that, from
January 1, 2016 through December 31,
2016, the threshold amount is $54,600.
These revisions are effective January 1,
2016.
III. Administrative Law Matters
Administrative Procedure Act
Under the Administrative Procedure
Act, notice and opportunity for public
comment are not required if the Board
and the Bureau find that notice and
public comment are impracticable,
unnecessary, or contrary to the public
interest.7 The amendment in this notice
is technical and applies the method
previously set forth in the Board Final
Threshold Rules.8 For these reasons, the
Board and the Bureau have determined
that publishing a notice of proposed
rulemaking and providing opportunity
for public comment are unnecessary.
Therefore, the amendments are adopted
in final form.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
5 See comments 2(e)–9 in Supplements I of 12
CFR part 213 and 12 CFR part 1013.
6 76 FR 18354, 18355 n.1 (Apr. 4, 2011) (‘‘[A]n
annual period of deflation or no inflation would not
require a change in the threshold amount.’’).
7 See 5 U.S.C. 553(b)(B).
8 See supra note 6.
E:\FR\FM\27NOR1.SGM
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Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Rules and Regulations
general notice of proposed rulemaking
is not required.9 As noted previously,
the agencies have determined that it is
unnecessary to publish a general notice
of proposed rulemaking for this joint
final rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,10 the agencies
reviewed this final rule. No collections
of information pursuant to the
Paperwork Reduction Act are contained
in the final rule.
List of Subjects
12 CFR Part 213
Bureau of Consumer Financial
Protection
Authority and Issuance
For the reasons set forth in the
preamble, the Bureau amends
Regulation M, 12 CFR part 1013, as set
forth below:
PART 1013—CONSUMER LEASING
(REGULATION M)
3. The authority citation for part 1013
continues to read as follows:
■
Authority: 15 U.S.C. 1604 and 1667f; Pub.
L. 111–203 section 1100E, 124 Stat. 1376.
4. In Supplement I to part 1013, under
Section 1013.2—Definitions, under 2(e)
Consumer Lease, paragraph 9.vii is
added to read as follows:
■
Supplement I to Part 1013—Official
Interpretations
Advertising, Consumer leasing,
Consumer protection, Federal Reserve
System, Reporting and recordkeeping
requirements.
Section 1013.2—Definitions
12 CFR Part 1013
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2(e) Consumer Lease. * * * .
9. * * *
vii. From January 1, 2016 through
December 31, 2016, the threshold amount is
$54,600.
Advertising, Consumer leasing,
Reporting and recordkeeping
requirements.
*
Board of Governors of the Federal
Reserve System
Text of Final Revisions
For the reasons set forth in the
preamble, the Board amends Regulation
M, 12 CFR part 213, as set forth below:
PART 213—CONSUMER LEASING
(REGULATION M)
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System, November 18, 2015.
Robert deV. Frierson,
Secretary of the Board.
Dated: September 22, 2015.
Richard Cordray,
Director, Bureau of Consumer Financial
Protection.
[FR Doc. 2015–30071 Filed 11–25–15; 8:45 am]
BILLING CODE 4810–AM–P; 6210–01–P
1. The authority citation for part 213
continues to read as follows:
■
Authority: 15 U.S.C. 1604 and 1667f; Pub.
L. 111–203 section 1100E, 124 Stat. 1376.
FEDERAL RESERVE SYSTEM
2. In Supplement I to Part 213, under
Section 213.2—Definitions, under 2(e)
Consumer Lease, paragraph 9.vii is
added to read as follows:
[Docket No. R–1520]
■
RIN 7100 AE–36
Supplement I to Part 213—Official Staff
Commentary to Regulation M
*
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*
*
12 CFR Part 226
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
*
Truth in Lending (Regulation Z)
*
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Section 213.2—Definitions
AGENCIES:
*
*
*
*
2(e) Consumer Lease.
9. * * *
vii. From January 1, 2016 through
December 31, 2016, the threshold amount is
$54,600.
*
*
*
*
*
Board of Governors of the
Federal Reserve System (Board); and
Bureau of Consumer Financial
Protection (Bureau).
ACTION: Final rules, official
interpretations and commentary.
The Board and the Bureau are
publishing final rules amending the
official interpretations and commentary
SUMMARY:
9 See
5 U.S.C. 603 and 604.
10 44 U.S.C. 3506; 5 CFR part 1320.
VerDate Sep<11>2014
16:09 Nov 25, 2015
Jkt 238001
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73947
for the agencies’ regulations that
implement the Truth in Lending Act
(TILA). The Dodd-Frank Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act) amended TILA by
requiring that the dollar threshold for
exempt consumer credit transactions be
adjusted annually by the annual
percentage increase in the Consumer
Price Index for Urban Wage Earners and
Clerical Workers (CPI–W). If there is no
annual percentage increase in the CPI–
W, the Board and Bureau will not adjust
this exemption threshold from the prior
year. Based on the annual percentage
decrease in the CPI–W as of June 1,
2015, the exemption threshold will
remain at $54,600 through December 31,
2016.
Because the Dodd-Frank Act also
requires similar adjustments in the
Consumer Leasing Act’s threshold for
exempt consumer leases, the Board and
the Bureau are making similar
amendments to each of their respective
regulations implementing the Consumer
Leasing Act elsewhere in this issue of
the Federal Register.
DATES: This final rule is effective
January 1, 2016.
FOR FURTHER INFORMATION CONTACT:
Board: Vivian W. Wong, Counsel,
Division of Consumer and Community
Affairs, Board of Governors of the
Federal Reserve System, at (202) 452–
3667; for users of Telecommunications
Device for the Deaf (TDD) only, contact
(202) 263–4869.
Bureau: James Wylie, Counsel, Office
of Regulations, Bureau of Consumer
Financial Protection, at (202) 435–7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Wall Street Reform
and Consumer Protection Act (DoddFrank Act) increased the threshold in
the Truth in Lending Act (TILA) for
exempt consumer credit transactions 1
from $25,000 to $50,000, effective July
21, 2011.2 In addition, the Dodd-Frank
Act requires that this threshold be
adjusted annually for inflation by the
annual percentage increase in the
Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI–W),
as published by the Bureau of Labor
Statistics. In April 2011, the Board
issued a final rule amending Regulation
Z (which implements TILA) consistent
1 Although consumer credit transactions above
the threshold are generally exempt, loans secured
by real property or by personal property used or
expected to be used as the principal dwelling of a
consumer and private education loans are covered
by TILA regardless of the loan amount. See 12 CFR
226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i).
2 Public Law 111–203 section 1100E, 124 Stat.
1376 (2010).
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]]>Agencies
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Rules and Regulations]
[Pages 73945-73947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30071]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 213
[Docket No. R-1519]
RIN 7100 AE-35
BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1013
RIN 3170-AA06
Consumer Leasing (Regulation M)
AGENCIES: Board of Governors of the Federal Reserve System (Board); and
Bureau of Consumer Financial Protection (Bureau).
[[Page 73946]]
ACTION: Final rules, official interpretations and commentary.
-----------------------------------------------------------------------
SUMMARY: The Board and the Bureau are publishing final rules amending
the official interpretations and commentary for the agencies'
regulations that implement the Consumer Leasing Act (CLA). The Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
amended the CLA by requiring that the dollar threshold for exempt
consumer leases be adjusted annually by the annual percentage increase
in the Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W). If there is no annual percentage increase in the CPI-W, the
Board and Bureau will not adjust this exemption threshold from the
prior year. Based on the annual percentage decrease in the CPI-W as of
June 1, 2015, the exemption threshold will remain at $54,600 through
December 31, 2016.
Because the Dodd-Frank Act also requires similar adjustments in the
Truth in Lending Act's threshold for exempt consumer credit
transactions, the Board and the Bureau are making similar amendments to
each of their respective regulations implementing the Truth in Lending
Act elsewhere in this issue of the Federal Register.
DATES: This final rule is effective January 1, 2016.
FOR FURTHER INFORMATION CONTACT: Board: Vivian W. Wong, Counsel,
Division of Consumer and Community Affairs, Board of Governors of the
Federal Reserve System, at (202) 452-3667; for users of
Telecommunications Device for the Deaf (TDD) only, contact (202) 263-
4869.
Bureau: James Wylie, Counsel, Office of Regulations, Bureau of
Consumer Financial Protection, at (202) 435-7700.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010 (Dodd-Frank Act) increased the threshold in the Consumer Leasing
Act (CLA) for exempt consumer leases from $25,000 to $50,000, effective
July 21, 2011.\1\ In addition, the Dodd-Frank Act requires that this
threshold be adjusted annually for inflation by the annual percentage
increase in the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W), as published by the Bureau of Labor
Statistics. In April 2011, the Board issued a final rule amending
Regulation M (which implements the CLA) consistent with these
provisions of the Dodd-Frank Act along with a similar final rule
amending Regulation Z (which implements the Truth in Lending Act)
(collectively, the Board Final Threshold Rules).\2\
---------------------------------------------------------------------------
\1\ Public Law 111-203 section 1100E, 124 Stat. 1376 (2010).
\2\ 76 FR 18349 (Apr. 4, 2011); 76 FR 18354 (Apr. 4, 2011).
---------------------------------------------------------------------------
Title X of the Dodd-Frank Act transferred rulemaking authority for
a number of consumer financial protection laws from the Board to the
Bureau, effective July 21, 2011. In connection with this transfer of
rulemaking authority, the Bureau issued its own Regulation M
implementing the CLA in an interim final rule, 12 CFR part 1013 (Bureau
Interim Final Rule).\3\ The Bureau Interim Final Rule substantially
duplicated the Board's Regulation M, including the revisions to the
threshold for exempt transactions made by the Board in April 2011.
Although the Bureau has the authority to issue rules to implement the
CLA for most entities, the Board retains authority to issue rules under
the CLA for certain motor vehicle dealers covered by section 1029(a) of
the Dodd-Frank Act, and the Board's Regulation M continues to apply to
those entities.\4\
---------------------------------------------------------------------------
\3\ 76 FR 78500 (Dec. 19, 2011).
\4\ Section 1029(a) of the Dodd-Frank Act states: ``Except as
permitted in subsection (b), the Bureau may not exercise any
rulemaking, supervisory, enforcement, or any other authority . . .
over a motor vehicle dealer that is predominantly engaged in the
sale and servicing of motor vehicles, the leasing and servicing of
motor vehicles, or both.'' 12 U.S.C. 5519(a). Section 1029(b) of the
Dodd-Frank Act states: ``Subsection (a) shall not apply to any
person, to the extent that such person (1) provides consumers with
any services related to residential or commercial mortgages or self-
financing transactions involving real property; (2) operates a line
of business (A) that involves the extension of retail credit or
retail leases involving motor vehicles; and (B) in which (i) the
extension of retail credit or retail leases are provided directly to
consumers; and (ii) the contract governing such extension of retail
credit or retail leases is not routinely assigned to an unaffiliated
third party finance or leasing source; or (3) offers or provides a
consumer financial product or service not involving or related to
the sale, financing, leasing, rental, repair, refurbishment,
maintenance, or other servicing of motor vehicles, motor vehicle
parts, or any related or ancillary product or service.'' 12 U.S.C.
5519(b).
---------------------------------------------------------------------------
Section 213.2(e)(1) of the Board's Regulation M and Sec.
1013.2(e)(1) of the Bureau's Regulation M, and their accompanying
commentaries, provide that the exemption threshold will be adjusted
annually effective January 1 of each year based on any annual
percentage increase in the CPI-W that was in effect on the preceding
June 1. Any increase in the threshold amount will be rounded to the
nearest $100 increment. For example, if the annual percentage increase
in the CPI-W would result in a $950 increase in the threshold amount,
the threshold amount will be increased by $1,000. However, if the
annual percentage increase in the CPI-W would result in a $949 increase
in the threshold amount, the threshold amount will be increased by
$900.\5\ As stated in the Board Final Threshold Rules, if there is no
annual percentage increase in the CPI-W, the Board and Bureau will not
adjust the exemption threshold from the prior year.\6\
---------------------------------------------------------------------------
\5\ See comments 2(e)-9 in Supplements I of 12 CFR part 213 and
12 CFR part 1013.
\6\ 76 FR 18354, 18355 n.1 (Apr. 4, 2011) (``[A]n annual period
of deflation or no inflation would not require a change in the
threshold amount.'').
---------------------------------------------------------------------------
II. Adjustment and Commentary Revision
Effective January 1, 2016, the exemption threshold amount remains
at $54,600. This is based on the CPI-W in effect on June 1, 2015, which
was reported on May 22, 2015. The Bureau of Labor Statistics publishes
consumer-based indices monthly, but does not report a CPI change on
June 1; adjustments are reported in the middle of the month. The CPI-W
is a subset of the CPI-U index (based on all urban consumers) and
represents approximately 28 percent of the U.S. population. Because the
CPI-W reported on May 22, 2015 reflects a 0.8 percent decrease in the
CPI-W from April 2014 to April 2015, the Board and the Bureau are not
adjusting the exemption threshold amount. The Board and the Bureau are
revising the commentaries to their respective regulations to add new
comment 2(e)-9.vii to state that, from January 1, 2016 through December
31, 2016, the threshold amount is $54,600. These revisions are
effective January 1, 2016.
III. Administrative Law Matters
Administrative Procedure Act
Under the Administrative Procedure Act, notice and opportunity for
public comment are not required if the Board and the Bureau find that
notice and public comment are impracticable, unnecessary, or contrary
to the public interest.\7\ The amendment in this notice is technical
and applies the method previously set forth in the Board Final
Threshold Rules.\8\ For these reasons, the Board and the Bureau have
determined that publishing a notice of proposed rulemaking and
providing opportunity for public comment are unnecessary. Therefore,
the amendments are adopted in final form.
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\7\ See 5 U.S.C. 553(b)(B).
\8\ See supra note 6.
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Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a
[[Page 73947]]
general notice of proposed rulemaking is not required.\9\ As noted
previously, the agencies have determined that it is unnecessary to
publish a general notice of proposed rulemaking for this joint final
rule. Accordingly, the RFA's requirements relating to an initial and
final regulatory flexibility analysis do not apply.
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\9\ See 5 U.S.C. 603 and 604.
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Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995,\10\ the
agencies reviewed this final rule. No collections of information
pursuant to the Paperwork Reduction Act are contained in the final
rule.
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\10\ 44 U.S.C. 3506; 5 CFR part 1320.
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List of Subjects
12 CFR Part 213
Advertising, Consumer leasing, Consumer protection, Federal Reserve
System, Reporting and recordkeeping requirements.
12 CFR Part 1013
Advertising, Consumer leasing, Reporting and recordkeeping
requirements.
Board of Governors of the Federal Reserve System
Text of Final Revisions
For the reasons set forth in the preamble, the Board amends
Regulation M, 12 CFR part 213, as set forth below:
PART 213--CONSUMER LEASING (REGULATION M)
0
1. The authority citation for part 213 continues to read as follows:
Authority: 15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section
1100E, 124 Stat. 1376.
0
2. In Supplement I to Part 213, under Section 213.2--Definitions, under
2(e) Consumer Lease, paragraph 9.vii is added to read as follows:
Supplement I to Part 213--Official Staff Commentary to Regulation M
* * * * *
Section 213.2--Definitions
* * * * *
2(e) Consumer Lease.
9. * * *
vii. From January 1, 2016 through December 31, 2016, the
threshold amount is $54,600.
* * * * *
Bureau of Consumer Financial Protection
Authority and Issuance
For the reasons set forth in the preamble, the Bureau amends
Regulation M, 12 CFR part 1013, as set forth below:
PART 1013--CONSUMER LEASING (REGULATION M)
0
3. The authority citation for part 1013 continues to read as follows:
Authority: 15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section
1100E, 124 Stat. 1376.
0
4. In Supplement I to part 1013, under Section 1013.2--Definitions,
under 2(e) Consumer Lease, paragraph 9.vii is added to read as follows:
Supplement I to Part 1013--Official Interpretations
* * * * *
Section 1013.2--Definitions
* * * * *
2(e) Consumer Lease. * * * .
9. * * *
vii. From January 1, 2016 through December 31, 2016, the
threshold amount is $54,600.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, November 18, 2015.
Robert deV. Frierson,
Secretary of the Board.
Dated: September 22, 2015.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2015-30071 Filed 11-25-15; 8:45 am]
BILLING CODE 4810-AM-P; 6210-01-P
