Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold, 79673-79674 [2015-32285]

Download as PDF Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Rules and Regulations (b) Secondary credit. The interest rates for secondary credit provided to depository institutions under § 201.4(b) are: Federal reserve bank Rate Boston ............................................................................ New York ........................................................................ Philadelphia .................................................................... Cleveland ........................................................................ Richmond ....................................................................... Atlanta ............................................................................ Chicago .......................................................................... St. Louis ......................................................................... Minneapolis .................................................................... Kansas City .................................................................... Dallas .............................................................................. San Francisco ................................................................. * * * * [FR Doc. 2015–32295 Filed 12–22–15; 8:45 am] BILLING CODE 6210–02–P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1003 Home Mortgage Disclosure (Regulation C) Adjustment to AssetSize Exemption Threshold Bureau of Consumer Financial Protection. ACTION: Final rule; official commentary. AGENCY: 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 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 will remain at $44 million. This amendment is based on the 0.4 percent decrease in the average of the CPI–W for the 12-month period ending in November 2015. Therefore, banks, savings associations, and credit unions with assets of $44 million or less as of December 31, 2015, are exempt from collecting data in 2016. DATES: This final rule is effective January 1, 2016. FOR FURTHER INFORMATION CONTACT: James Wylie or Jaclyn Maier, Counsels, Office of Regulations, at (202) 435–7700. SUPPLEMENTARY INFORMATION: asabaliauskas on DSK5VPTVN1PROD with RULES VerDate Sep<11>2014 16:43 Dec 22, 2015 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 Effective December December December December December December December December December December December December 17, 17, 17, 17, 17, 17, 17, 17, 17, 17, 17, 17, 2015. 2015. 2015. 2015. 2015. 2015. 2015. 2015. 2015. 2015. 2015. 2015. I. Background * By order of the Board of Governors of the Federal Reserve System, December 18, 2015. Robert deV. Frierson, Secretary of the Board. SUMMARY: Jkt 238001 79673 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 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 2015, the threshold was $44 million. During the 12-month period ending in November 2015, the average of the CPI– W decreased by 0.4 percent. This results in a change of zero when rounded to the nearest million. Thus, the exemption threshold will remain at $44 million. Therefore, banks, savings associations, and credit unions with assets of $44 million or less as of December 31, 2015, are exempt from collecting data in 2016. PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 An institution’s exemption from collecting data in 2016 does not affect its responsibility to report data it was required to collect in 2015. 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 non-discretionary, 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, 2016. 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. E:\FR\FM\23DER1.SGM 23DER1 79674 Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Rules and Regulations 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) 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 asabaliauskas on DSK5VPTVN1PROD with RULES * * * * * 2. Adjustment of exemption threshold for banks, savings associations, and credit unions. For data collection in 2016, 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, 2015, are exempt from collecting data for 2016. * * * * * Dated: December 16, 2015. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2015–32285 Filed 12–22–15; 8:45 am] BILLING CODE 4810–AM–P VerDate Sep<11>2014 16:43 Dec 22, 2015 Jkt 238001 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 decrease to $2.052 billion from $2.060 billion. The adjustment is based on the 0.4 percent decrease in the average of the CPI–W for the 12-month period ending in November 2015. Therefore, creditors with assets of less than $2.052 billion (including assets of certain affiliates) as of December 31, 2015, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higherpriced mortgage loans in 2016. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2017. The adjustment to the escrows exemption asset-size threshold will also decrease 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 have (together with certain affiliates) total assets below the threshold, are also excepted from the prohibition on balloon payments for high-cost mortgages. DATES: This final rule is effective January 1, 2016. FOR FURTHER INFORMATION CONTACT: James Wylie or Jaclyn Maier, Counsels, 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 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 established by a creditor to pay for property taxes and insurance premiums for certain first-lien higher-priced mortgage loan transactions. TILA section 129(D) also generally permits an exemption from the higher-priced mortgage loan escrow requirement for a creditor that meets certain requirements, including any asset-size threshold the Bureau may establish. In the 2013 Escrows Final Rule,1 the Bureau established such an asset-size threshold of $2,000,000,000, which would adjust automatically each year, based on the year-to year change in the average of the CPI–W for each 12-month period ending in November, with rounding to the nearest million dollars.2 For 2015, the threshold was $2.060 billion. The Bureau recently revised the criteria for small creditors, and rural and underserved areas, for purposes of certain special provisions and exemptions from various requirements provided to certain small creditors under the Bureau’s mortgage rules. As part of this revision the Bureau made certain changes that affect how the asset-size threshold applies. The Bureau revised the rule to include in the calculation of the asset-size threshold the assets of the creditor’s affiliates that regularly extended covered transactions secured by first liens during the applicable period. The Bureau also added a grace period from calendar year to calendar year to allow an otherwise eligible creditor that exceeded the asset limit in the preceding calendar year (but not in the calendar year before the preceding year) to continue to operate as a small creditor with respect to transactions with applications received before April 1 of the current calendar year.3 During the 12-month period ending in November 2015, the average of the CPI–W decreased by 0.4 percent. As a result, the exemption threshold is decreased to $2.052 billion for 2016. Thus, if the creditor’s assets together with the assets of its affiliates that regularly extended first-lien covered transactions during calendar year 2015 are less than $2.052 billion on December 31, 2015, and it meets the other requirements of § 1026.35(b)(2)(iii) it will be exempt in 2016 from the escrowaccounts requirement for higher-priced mortgage loans and will also be exempt from the escrow-accounts requirement for higher-priced mortgage loans for purposes of any loan consummated in 2017 for which the application was received before April 1, 2017. The 1 78 FR 4726 (Jan. 22, 2013). 12 CFR 1026.35(b)(2)(iii)(C). 3 See 80 FR 59943, 59951 (Oct. 2, 2015). 2 See E:\FR\FM\23DER1.SGM 23DER1

Agencies

[Federal Register Volume 80, Number 246 (Wednesday, December 23, 2015)]
[Rules and Regulations]
[Pages 79673-79674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32285]


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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 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 will 
remain at $44 million. This amendment is based on the 0.4 percent 
decrease in the average of the CPI-W for the 12-month period ending in 
November 2015. Therefore, banks, savings associations, and credit 
unions with assets of $44 million or less as of December 31, 2015, are 
exempt from collecting data in 2016.

DATES: This final rule is effective January 1, 2016.

FOR FURTHER INFORMATION CONTACT: James Wylie or Jaclyn Maier, Counsels, 
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 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 2015, the threshold was $44 
million. During the 12-month period ending in November 2015, the 
average of the CPI-W decreased by 0.4 percent. This results in a change 
of zero when rounded to the nearest million. Thus, the exemption 
threshold will remain at $44 million. Therefore, banks, savings 
associations, and credit unions with assets of $44 million or less as 
of December 31, 2015, are exempt from collecting data in 2016. An 
institution's exemption from collecting data in 2016 does not affect 
its responsibility to report data it was required to collect in 2015.

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 non-discretionary, 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, 2016. 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.

[[Page 79674]]

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 2016, 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, 2015, are exempt from collecting data for 2016.
* * * * *

    Dated: December 16, 2015.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2015-32285 Filed 12-22-15; 8:45 am]
BILLING CODE 4810-AM-P
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