Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment, 8639-8642 [2016-03631]
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8639
Rules and Regulations
Federal Register
Vol. 81, No. 34
Monday, February 22, 2016
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The proposed rule had a 30-day
comment period, during which OPM
received no comments.
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Parts 1209 and 1250
Regulatory Flexibility Act
RIN 2590–AA77
I certify that these regulations will not
have a significant economic impact on
a substantial number of small entities
because they will affect only Federal
agencies and employees.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
List of Subjects in 5 CFR Part 532
OFFICE OF PERSONNEL
MANAGEMENT
Administrative practice and
procedure, Freedom of information,
Government employees, Reporting and
recordkeeping requirements, Wages.
5 CFR Part 532
RIN 3206–AN20
Prevailing Rate Systems; Definition of
Hancock County, Mississippi, to a
Nonappropriated Fund Federal Wage
System Wage Area
U.S. Office of Personnel
Management.
ACTION: Final rule.
AGENCY:
U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.
Accordingly, the U.S. Office of
Personnel Management is amending 5
CFR part 532 as follows:
PART 532—PREVAILING RATE
SYSTEMS
The U.S. Office of Personnel
Management (OPM) is issuing a final
rule to define Hancock County,
Mississippi, as an area of application
county to the Harrison, MS,
nonappropriated fund (NAF) Federal
Wage System (FWS) wage area. This
change is necessary because there are
four NAF FWS employees working in
Hancock County, and the county is not
currently defined to a NAF wage area.
DATES:
Effective date: This regulation is
effective on February 22, 2016.
Applicability date: This change applies
on the first day of the first applicable
pay period beginning on or after March
23, 2016.
FOR FURTHER INFORMATION CONTACT:
Madeline Gonzalez, by telephone at
(202) 606–2858 or by email at pay-leavepolicy@opm.gov.
SUPPLEMENTARY INFORMATION: On August
27, 2015, OPM issued a proposed rule
(80 FR 51963) to define Hancock
County, MS, as an area of application
county to the Harrison, MS, NAF FWS
wage area.
FPRAC, the national labormanagement committee responsible for
advising OPM on matters concerning
the pay of FWS employees, reviewed
and recommended this change by
consensus.
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SUMMARY:
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1. The authority citation for part 532
continues to read as follows:
■
Authority: 5 U.S.C. 5343, 5346; § 532.707
also issued under 5 U.S.C. 552.
2. Appendix D to subpart B is
amended by revising the wage area
listing for the Harrison, Mississippi,
NAF wage areas to read as follows:
■
Appendix D to Subpart B of Part 532—
Nonappropriated Fund Wage and
Survey Areas
*
*
*
MISSISSIPPI
*
*
*
*
*
Harrison
Survey Area
*
*
Mississippi:
Harrison
Area of Application. Survey area plus:
Alabama:
Mobile
Mississippi:
Forrest
Hancock
Jackson
*
*
*
*
*
[FR Doc. 2016–03588 Filed 2–19–16; 8:45 am]
BILLING CODE 6325–39–P
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Rules of Practice and Procedure; Civil
Money Penalty Inflation Adjustment
Federal Housing Finance
Agency.
ACTION: Final rule.
AGENCY:
The Federal Housing Finance
Agency (FHFA) is issuing this final rule
amending its rules of practice and
procedure to adjust each civil money
penalty within its jurisdiction to
account for inflation, pursuant to the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996.
DATES: Effective February 22, 2016.
FOR FURTHER INFORMATION CONTACT:
Stephen E. Hart, Deputy General
Counsel, at (202) 649–3053,
Stephen.Hart@fhfa.gov, or Frank R.
Wright, Senior Counsel, at (202) 649–
3087, Frank.Wright@fhfa.gov (not tollfree numbers); Federal Housing Finance
Agency, 400 7th Street SW.,
Washington, DC 20219. The telephone
number for the Telecommunications
Device for the Hearing Impaired is: (800)
877–8339 (TDD only).
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The FHFA is an independent agency
of the Federal government, and the
financial safety and soundness regulator
of the Federal National Mortgage
Association (Fannie Mae) and the
Federal Home Loan Mortgage
Corporation (Freddie Mac) (collectively,
the Enterprises), as well as the Federal
Home Loan Banks (collectively, the
Banks) and the Office of Finance under
authority granted by the Federal
Housing Enterprises Financial Safety
and Soundness Act of 1992 (Safety and
Soundness Act).1 FHFA oversees the
Enterprises and Banks (collectively, the
regulated entities) to ensure that they
operate in a safe and sound manner and
1 See Federal Housing Enterprises Financial
Safety and Soundness Act of 1992, Public Law 102–
550, 106 Stat. 4078 (Oct. 28, 1992) as amended by
the Federal Housing Finance Regulatory Reform Act
of 2008, Public Law 110–289, 122 Stat. 2654,
sections 1101 et seq. (July 30, 2008).
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Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Rules and Regulations
maintain liquidity in the housing
finance market in accordance with
applicable laws, rules and regulations.
To that end, FHFA is vested with broad
supervisory discretion and specific civil
administrative enforcement powers,
similar to such authority granted by
Congress to the Federal bank regulatory
agencies.2 In particular, section 1376 of
the Act (12 U.S.C. 4636) empowers
FHFA to impose civil money penalties
under specific conditions. FHFA’s Rules
of Practice and Procedure (12 CFR part
1209) govern cease and desist
proceedings, civil money penalty
assessment proceedings, and other
administrative adjudications.3 FHFA’s
Flood Insurance regulation (12 CFR part
1250) governs flood insurance
responsibilities as they pertain to the
Enterprises.4
The Inflation Adjustment Act
The Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996 (the Inflation Adjustment Act)
requires FHFA, as well as other Federal
agencies with the authority to issue civil
money penalties (CMPs), to adjust by
regulation the maximum amount of each
CMP authorized by law that the agency
has jurisdiction to administer.5 The
Inflation Adjustment Act required
agencies to make an initial adjustment
of their CMPs upon the statute’s
enactment, and further requires agencies
to make additional adjustments on an
ongoing basis, every four years
following the initial adjustment. The
purpose of these periodic adjustments is
to maintain the deterrent effect of CMPs
and promote compliance with the law.
Subpart E of FHFA’s Rules of Practice
and Procedure sets forth the Civil
Money Penalty Inflation Adjustment
amounts and prescribes their
applicability. See 12 CFR 1209.81.6
Under the Inflation Adjustment Act,
the inflation adjustment for each
applicable CMP is determined by
increasing the maximum CMP amount
per violation by a cost-of-living
adjustment. As described in detail
below, the Inflation Adjustment Act
provides that this cost-of-living
adjustment reflect the percentage
increase in the Consumer Price Index
since the CMPs were last adjusted or
established, and rounded in accordance
with rules provided in the statute.7
II. Differences
When promulgating any regulation
that may have future affect relating to
the Banks, the Director is required by
section 1201 of HERA to consider the
differences between the Banks and the
Enterprises with respect to the Banks’
cooperative ownership structure;
mission of providing liquidity to
members; affordable housing and
community development mission;
capital structure; and joint and several
liability. See section 1201 Public Law
110–289, 122 Stat. 2782–83 (amending
12 U.S.C. 4513(f)[sic]).8 The Director
considered the differences between the
Banks and the Enterprises, as they relate
to the above factors, and determined
that the rule is appropriate. In sum, the
five differences identified in section
1201 of HERA do not require a different
enforcement regulation for the Banks
than for the Enterprises. Therefore, the
comparative analysis under section
1201 of HERA undertaken for the
proposed rule required no changes.
III. Description of the Rule
This final rule adjusts the maximum
penalty amount within each of the three
tiers specified in 12 U.S.C. 4636 by
amending the table contained in 12 CFR
1209.80 to reflect the new adjusted
maximum penalty amount that FHFA
Previous
maximum
penalty
amount
Description
12 U.S.C. 4636(b)(1) ........................
12 U.S.C. 4636(b)(2) ........................
12 U.S.C. 4636(b)(4) ........................
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U.S. Code citation
First Tier ...........................................
Second Tier ......................................
Third Tier (Entity-affiliated party and
Regulated entity).
2 See Safety and Soundness Act, 12 U.S.C. 4513
and 4631–4641.
3 See 12 CFR part 1209.
4 See 12 CFR part 1250.
5 See 28 U.S.C. 2461 note.
6 Periodic inflation adjustments of the FHFA
Flood Insurance regulation are set forth in 12 CFR
1250.3.
7 The Inflation Adjustment Act specifically
identifies the Consumer Price Index for All Urban
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16:09 Feb 19, 2016
Jkt 238001
10,000
50,000
2,000,000
Consumers published by the United States
Department of Labor (CPI–U).
8 So in original; no paragraphs (d) and (e) were
enacted. See 12 U.S.C.A. 4513 n 1.
9 See, e.g., 12 CFR 1209.7(c); FHFA Enforcement
Policy, AB 2013–03 (May 31, 2013).
10 See 12 U.S.C. 4636.
11 The statute’s rounding rules require that each
increase be rounded to the nearest multiple as
follows: $10 in the case of penalties less than or
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may impose upon a regulated entity or
any entity-affiliated party within each
tier. The increases in maximum penalty
amounts contained in this final rule
may not necessarily affect the amount of
any CMP that FHFA may seek for a
particular violation; FHFA would
calculate each CMP on a case-by-case
basis in light of a variety of factors.9
This final rule also adjusts the
maximum penalty amounts for
violations under the FHFA Flood
Insurance regulation by amending the
text of 12 CFR 1250.3 to reflect the new
adjusted maximum penalty amount that
FHFA may impose for violations under
that regulation.
The Inflation Adjustment Act directs
federal agencies to calculate each CMP
adjustment as the percentage by which
the CPI–U for June of the calendar year
preceding the adjustment exceeds the
CPI–U for June of the calendar year in
which the amount of each CMP was last
set or adjusted. The maximum CMP
amounts for FHFA penalties under 12
U.S.C. 4636 were set in 2008.10 Since
FHFA is making this round of
adjustments in calendar year 2016, and
the maximum CMP amounts were last
set in calendar year 2008, the inflation
adjustment amount for each maximum
CMP amount was calculated by
comparing the CPI–U for June 2008
(218.8) with the CPI–U for June 2015
(238.6), resulting in an inflation factor of
1.0905. For each maximum CMP
amount, the product of this inflation
adjustment and the previous maximum
penalty amount was then rounded in
accordance with the specific
requirements of the Inflation
Adjustment Act, and was then summed
with the previous maximum penalty
amount to determine the new adjusted
maximum penalty amount.11 The table
below sets out these items accordingly.
Inflation
increase
905
4,525
181,000
Rounded
inflation
increase
1,000
5,000
175,000
New adjusted
maximum
penalty
amount
11,000
55,000
2,175,000
equal to $100; $100 in the case of penalties greater
than $100 but less than or equal to $1,000; $1,000
in the case of penalties greater than $1,000 but less
than or equal to $10,000; $5,000 in the case of
penalties greater than $10,000 but less than or equal
to $100,000; $10,000 in the case of penalties greater
than $100,000 but less than or equal to $200,000;
and $25,000 in the case of penalties greater than
$200,000.
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The CMP for FHFA penalties under
the Flood Insurance regulation were set
in 2009.12 Since FHFA is making this
round of adjustments in calendar year
2016, and the maximum CMP amounts
were last set in calendar year 2009, the
inflation adjustment amount for each
maximum CMP amount was calculated
by comparing the CPI–U for June 2009
(215.7) with the CPI–U for June 2015
Previous
maximum
penalty
amount
U.S. Code citation
Description
42 U.S.C. 4012a(f)(5) .......................
42 U.S.C. 4012a(f)(5) .......................
Maximum penalty per violation ........
Maximum total penalties assessed
against an Enterprise in a calendar year.
IV. Regulatory Impact
Administrative Procedure Act
FHFA finds good cause that notice
and an opportunity to comment on this
document are unnecessary under
section 553(b) of the Administrative
Procedure Act (APA), 5 U.S.C. 553(b).
This rulemaking conforms with and is
consistent with the statutory directive
set forth in the Inflation Adjustment
Act. As a result, there are no issues of
policy discretion about which to seek
public comment. Accordingly, FHFA is
issuing the amendments as a final rule.
In addition, FHFA finds good cause to
make this rule effective upon
publication of this document in the
Federal Register under the APA. See 5
U.S.C. 553(d). This final rule does not
impose any additional responsibilities
on any entity and therefore requires no
adjustment to any entity’s current
operations, policies, or practices.
Instead, it simply adjusts the amount of
each CMP tier as dictated by the
Inflation Adjustment Act.
Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility
Act (RFA),13 an agency must prepare a
regulatory flexibility analysis for all
proposed and final rules that describes
the impact of the rule on small entities,
unless the head of an agency certifies
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■
U.S.C.
U.S.C.
U.S.C.
U.S.C.
4636(b)(1)
4636(b)(2)
4636(b)(4)
4636(b)(4)
485
140,000
Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. 3501 et seq.) requires that
regulations involving the collection of
information receive clearance from the
Office of Management and Budget
(OMB). This rule contains no such
collection of information requiring OMB
approval under the Paperwork
Reduction Act. Consequently, no
information has been submitted to OMB
for review.
12 CFR Part 1250
Flood insurance, Governmentsponsored enterprises, Penalties,
§ 1209.81
16:09 Feb 19, 2016
13 5
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SUBCHAPTER A—ORGANIZATION
AND OPERATIONS
PART 1209—RULES OF PRACTICE
AND PROCEDURE
1. The authority citation for part 1209
continues to read as follows:
■
Authority: 5 U.S.C. 554, 556, 557, and 701
et seq.; 12 U.S.C. 1430c(d); 12 U.S.C. 4501,
4502, 4503, 4511, 4513, 4513b, 4517, 4526,
4566(c)(1) and (c)(7), 4581–4588, 4631–4641;
and 28 U.S.C. 2461 note.
2. Revise § 1209.80 to read as follows:
Inflation adjustments.
New adjusted
maximum
penalty
amount
First Tier .....................................................................................
Second Tier ................................................................................
Third Tier (Entity-Affiliated party) ...............................................
Third Tier (Regulated entity) ......................................................
Applicability.
PO 00000
U.S.C. 603.
Frm 00003
Fmt 4700
$11,000
55,000
2,175,000
2,175,000
the provisions of the Safety and
Soundness Act, 12 U.S.C. 4636, and
subparts B and C of this part, for
14 5
Sfmt 4700
585
150,000
The maximum amount of each civil
money penalty within FHFA’s
jurisdiction, as set by the Safety and
Soundness Act and thereafter adjusted
in accordance with the Inflation
Adjustment Act, is as follows:
The inflation adjustments set out in
§ 1209.80 shall apply to civil money
penalties assessed in accordance with
VerDate Sep<11>2014
100
10,000
Accordingly, for the reasons stated in
the SUPPLEMENTARY INFORMATION and
under the authority of 12 U.S.C. 4513b
and 12 U.S.C. 4526, the Federal Housing
Finance Agency hereby amends
subchapters A and C of chapter XII of
Title 12 of the Code of Federal
Regulations as follows:
§ 1209.80
12 CFR Part 1209
Administrative practice and
procedure, Penalties.
New adjusted
maximum
penalty
amount
Reporting and recordkeeping
requirements.
■
List of Subjects
..................................................................
..................................................................
..................................................................
..................................................................
74 FR 2349 (Jan. 15, 2009).
51.55
14,854
Description
3. Revise § 1209.81 to read as follows:
12 See
Rounded
inflation
increase
Inflation
increase
that the rule will not have ‘‘a significant
economic impact on a substantial
number of small entities.’’ However, the
RFA applies only to rules for which an
agency publishes a general notice of
proposed rulemaking pursuant to the
APA.14 As discussed above, FHFA has
determined for good cause that the APA
does not require notice and public
comment on this rule and, therefore,
FHFA is not publishing a general notice
of proposed rulemaking. Thus, the RFA
does not apply to this final rule.
U.S. Code citation
12
12
12
12
(238.6), resulting in an inflation factor of
1.1061. The table below sets out these
items accordingly.
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U.S.C. 603(a), 604(a).
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violations occurring after February 22,
2016.
SUBCHAPTER C—ENTERPRISES
PART 1250—FLOOD INSURANCE
4. The authority citation for part 1250
continues to read as follows:
■
Authority: 12 U.S.C. 4521(a)(4) and 4526;
28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42
U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10).
5. Revise § 1250.3(c) to read as
follows:
■
§ 1250.3
Civil money penalties.
*
*
*
*
*
(c) Amount. The maximum civil
money penalty amount is $485 for each
violation that occurs before February 22,
2016, with total penalties not to exceed
$140,000. For violations that occur on or
after February 22, 2016, the civil money
penalty under this section may not
exceed $585 for each violation, with
total penalties assessed under this
section against an Enterprise during any
calendar year not to exceed $150,000.
*
*
*
*
*
Dated: February 15, 2016.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2016–03631 Filed 2–19–16; 8:45 am]
BILLING CODE 8070–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2015–2456; Directorate
Identifier 2015–NM–032–AD; Amendment
39–18401; AD 2016–04–07]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
We are adopting a new
airworthiness directive (AD) for all The
Boeing Company Model 767 airplanes.
This AD was prompted by reports of
cracking at a central part of the
structure. This AD requires repetitive
inspections of the skin hidden by the
upper and lower splice fittings on both
sides of the fuselage, and corrective
action if necessary. We are issuing this
AD to detect and correct fatigue
cracking of the hidden fuselage skin and
cracking, corrosion, and other damage to
the splice fittings and adjacent visible
fuselage skin and structure that could
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SUMMARY:
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16:09 Feb 19, 2016
Jkt 238001
lead to loss of a primary load path
between the fuselage and the wing box,
and consequent reduced structural
integrity of the airplane.
DATES: This AD is effective March 28,
2016.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of March 28, 2016.
ADDRESSES: For service information
identified in this final rule, contact
Boeing Commercial Airplanes,
Attention: Data & Services Management,
P.O. Box 3707, MC 2H–65, Seattle, WA
98124–2207; telephone 206–544–5000,
extension 1; fax 206–766–5680; Internet
https://www.myboeingfleet.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. It is also
available on the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2015–
2456.
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2015–
2456; or in person at the Docket
Management Facility between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket
contains this AD, the regulatory
evaluation, any comments received, and
other information. The address for the
Docket Office (phone: 800–647–5527) is
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 20590.
FOR FURTHER INFORMATION CONTACT:
Wayne Lockett, Aerospace Engineer,
Airframe Branch, ANM–120S, FAA,
Seattle Aircraft Certification Office
(ACO), 1601 Lind Avenue SW., Renton,
WA 98057–3356; phone: 425–917–6447;
fax: 425–917–6590; email:
wayne.lockett@faa.gov.
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 all The Boeing Company Model
767 airplanes. The NPRM published in
the Federal Register on July 6, 2015 (80
FR 38408) (‘‘the NPRM’’). The NPRM
was prompted by reports of cracking at
a central part of the structure. The
PO 00000
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Fmt 4700
Sfmt 4700
NPRM proposed to require repetitive
inspections of the skin hidden by the
upper and lower splice fittings on both
sides of the fuselage, and corrective
action if necessary. We are issuing this
AD to detect and correct fatigue
cracking of the hidden fuselage skin and
cracking, corrosion, and other damage to
the splice fittings and adjacent visible
fuselage skin and structure that could
lead to loss of a primary load path
between the fuselage and the wing box,
and consequent reduced structural
integrity of the airplane.
Comments
We gave the public the opportunity to
participate in developing this AD. The
following presents the comments
received on the NPRM and the FAA’s
response to each comment. Boeing
stated that it concurs with the NPRM.
United Parcel Service (UPS) and United
Airlines stated that they have no
comments on the NPRM. FedEx Express
provided information on how the NPRM
affects its fleet but made no requests.
Request Clarification on the Effect of
Winglets on Accomplishment of the
Proposed Actions
Aviation Partners Boeing stated that
accomplishing Supplemental Type
Certificate (STC) ST01920SE (https://rgl.
faa.gov/Regulatory_and_Guidance_
Library/rgstc.nsf/0/59027f43b9a7486e
86257b1d006591ee/$FILE/
ST01920SE.pdf) does not affect the
actions specified in the NPRM.
We concur with the commenter. We
have redesignated paragraph (c) of the
proposed AD as paragraph (c)(1) of this
AD and added new paragraph (c)(2) to
this AD to state that installation of STC
ST01920SE does not affect the ability to
accomplish the actions required by this
AD. Therefore, for airplanes on which
STC ST01920SE is installed, a ‘‘change
in product’’ alternative method of
compliance (AMOC) approval request is
not necessary to comply with the
requirements of 14 CFR 39.17.
Conclusion
We reviewed the relevant data,
considered the comments received, and
determined that air safety and the
public interest require adopting this AD
with the change described previously
and minor editorial changes. We have
determined that these minor changes:
• Are consistent with the intent that
was proposed in the NPRM for
correcting the unsafe condition; and
• Do not add any additional burden
upon the public than was already
proposed in the NPRM.
We also determined that these
changes will not increase the economic
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]]>Agencies
[Federal Register Volume 81, Number 34 (Monday, February 22, 2016)]
[Rules and Regulations]
[Pages 8639-8642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03631]
=======================================================================
-----------------------------------------------------------------------
FEDERAL HOUSING FINANCE AGENCY
12 CFR Parts 1209 and 1250
RIN 2590-AA77
Rules of Practice and Procedure; Civil Money Penalty Inflation
Adjustment
AGENCY: Federal Housing Finance Agency.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing this
final rule amending its rules of practice and procedure to adjust each
civil money penalty within its jurisdiction to account for inflation,
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended by the Debt Collection Improvement Act of 1996.
DATES: Effective February 22, 2016.
FOR FURTHER INFORMATION CONTACT: Stephen E. Hart, Deputy General
Counsel, at (202) 649-3053, Stephen.Hart@fhfa.gov, or Frank R. Wright,
Senior Counsel, at (202) 649-3087, Frank.Wright@fhfa.gov (not toll-free
numbers); Federal Housing Finance Agency, 400 7th Street SW.,
Washington, DC 20219. The telephone number for the Telecommunications
Device for the Hearing Impaired is: (800) 877-8339 (TDD only).
SUPPLEMENTARY INFORMATION:
I. Background
The FHFA is an independent agency of the Federal government, and
the financial safety and soundness regulator of the Federal National
Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage
Corporation (Freddie Mac) (collectively, the Enterprises), as well as
the Federal Home Loan Banks (collectively, the Banks) and the Office of
Finance under authority granted by the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (Safety and Soundness
Act).\1\ FHFA oversees the Enterprises and Banks (collectively, the
regulated entities) to ensure that they operate in a safe and sound
manner and
[[Page 8640]]
maintain liquidity in the housing finance market in accordance with
applicable laws, rules and regulations. To that end, FHFA is vested
with broad supervisory discretion and specific civil administrative
enforcement powers, similar to such authority granted by Congress to
the Federal bank regulatory agencies.\2\ In particular, section 1376 of
the Act (12 U.S.C. 4636) empowers FHFA to impose civil money penalties
under specific conditions. FHFA's Rules of Practice and Procedure (12
CFR part 1209) govern cease and desist proceedings, civil money penalty
assessment proceedings, and other administrative adjudications.\3\
FHFA's Flood Insurance regulation (12 CFR part 1250) governs flood
insurance responsibilities as they pertain to the Enterprises.\4\
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\1\ See Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, Public Law 102-550, 106 Stat. 4078 (Oct. 28,
1992) as amended by the Federal Housing Finance Regulatory Reform
Act of 2008, Public Law 110-289, 122 Stat. 2654, sections 1101 et
seq. (July 30, 2008).
\2\ See Safety and Soundness Act, 12 U.S.C. 4513 and 4631-4641.
\3\ See 12 CFR part 1209.
\4\ See 12 CFR part 1250.
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The Inflation Adjustment Act
The Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended by the Debt Collection Improvement Act of 1996 (the Inflation
Adjustment Act) requires FHFA, as well as other Federal agencies with
the authority to issue civil money penalties (CMPs), to adjust by
regulation the maximum amount of each CMP authorized by law that the
agency has jurisdiction to administer.\5\ The Inflation Adjustment Act
required agencies to make an initial adjustment of their CMPs upon the
statute's enactment, and further requires agencies to make additional
adjustments on an ongoing basis, every four years following the initial
adjustment. The purpose of these periodic adjustments is to maintain
the deterrent effect of CMPs and promote compliance with the law.
Subpart E of FHFA's Rules of Practice and Procedure sets forth the
Civil Money Penalty Inflation Adjustment amounts and prescribes their
applicability. See 12 CFR 1209.81.\6\
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\5\ See 28 U.S.C. 2461 note.
\6\ Periodic inflation adjustments of the FHFA Flood Insurance
regulation are set forth in 12 CFR 1250.3.
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Under the Inflation Adjustment Act, the inflation adjustment for
each applicable CMP is determined by increasing the maximum CMP amount
per violation by a cost-of-living adjustment. As described in detail
below, the Inflation Adjustment Act provides that this cost-of-living
adjustment reflect the percentage increase in the Consumer Price Index
since the CMPs were last adjusted or established, and rounded in
accordance with rules provided in the statute.\7\
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\7\ The Inflation Adjustment Act specifically identifies the
Consumer Price Index for All Urban Consumers published by the United
States Department of Labor (CPI-U).
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II. Differences
When promulgating any regulation that may have future affect
relating to the Banks, the Director is required by section 1201 of HERA
to consider the differences between the Banks and the Enterprises with
respect to the Banks' cooperative ownership structure; mission of
providing liquidity to members; affordable housing and community
development mission; capital structure; and joint and several
liability. See section 1201 Public Law 110-289, 122 Stat. 2782-83
(amending 12 U.S.C. 4513(f)[sic]).\8\ The Director considered the
differences between the Banks and the Enterprises, as they relate to
the above factors, and determined that the rule is appropriate. In sum,
the five differences identified in section 1201 of HERA do not require
a different enforcement regulation for the Banks than for the
Enterprises. Therefore, the comparative analysis under section 1201 of
HERA undertaken for the proposed rule required no changes.
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\8\ So in original; no paragraphs (d) and (e) were enacted. See
12 U.S.C.A. 4513 n 1.
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III. Description of the Rule
This final rule adjusts the maximum penalty amount within each of
the three tiers specified in 12 U.S.C. 4636 by amending the table
contained in 12 CFR 1209.80 to reflect the new adjusted maximum penalty
amount that FHFA may impose upon a regulated entity or any entity-
affiliated party within each tier. The increases in maximum penalty
amounts contained in this final rule may not necessarily affect the
amount of any CMP that FHFA may seek for a particular violation; FHFA
would calculate each CMP on a case-by-case basis in light of a variety
of factors.\9\ This final rule also adjusts the maximum penalty amounts
for violations under the FHFA Flood Insurance regulation by amending
the text of 12 CFR 1250.3 to reflect the new adjusted maximum penalty
amount that FHFA may impose for violations under that regulation.
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\9\ See, e.g., 12 CFR 1209.7(c); FHFA Enforcement Policy, AB
2013-03 (May 31, 2013).
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The Inflation Adjustment Act directs federal agencies to calculate
each CMP adjustment as the percentage by which the CPI-U for June of
the calendar year preceding the adjustment exceeds the CPI-U for June
of the calendar year in which the amount of each CMP was last set or
adjusted. The maximum CMP amounts for FHFA penalties under 12 U.S.C.
4636 were set in 2008.\10\ Since FHFA is making this round of
adjustments in calendar year 2016, and the maximum CMP amounts were
last set in calendar year 2008, the inflation adjustment amount for
each maximum CMP amount was calculated by comparing the CPI-U for June
2008 (218.8) with the CPI-U for June 2015 (238.6), resulting in an
inflation factor of 1.0905. For each maximum CMP amount, the product of
this inflation adjustment and the previous maximum penalty amount was
then rounded in accordance with the specific requirements of the
Inflation Adjustment Act, and was then summed with the previous maximum
penalty amount to determine the new adjusted maximum penalty
amount.\11\ The table below sets out these items accordingly.
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\10\ See 12 U.S.C. 4636.
\11\ The statute's rounding rules require that each increase be
rounded to the nearest multiple as follows: $10 in the case of
penalties less than or equal to $100; $100 in the case of penalties
greater than $100 but less than or equal to $1,000; $1,000 in the
case of penalties greater than $1,000 but less than or equal to
$10,000; $5,000 in the case of penalties greater than $10,000 but
less than or equal to $100,000; $10,000 in the case of penalties
greater than $100,000 but less than or equal to $200,000; and
$25,000 in the case of penalties greater than $200,000.
----------------------------------------------------------------------------------------------------------------
Previous New adjusted
maximum Inflation Rounded maximum
U.S. Code citation Description penalty increase inflation penalty
amount increase amount
----------------------------------------------------------------------------------------------------------------
12 U.S.C. 4636(b)(1).......... First Tier...... 10,000 905 1,000 11,000
12 U.S.C. 4636(b)(2).......... Second Tier..... 50,000 4,525 5,000 55,000
12 U.S.C. 4636(b)(4).......... Third Tier 2,000,000 181,000 175,000 2,175,000
(Entity-
affiliated
party and
Regulated
entity).
----------------------------------------------------------------------------------------------------------------
[[Page 8641]]
The CMP for FHFA penalties under the Flood Insurance regulation
were set in 2009.\12\ Since FHFA is making this round of adjustments in
calendar year 2016, and the maximum CMP amounts were last set in
calendar year 2009, the inflation adjustment amount for each maximum
CMP amount was calculated by comparing the CPI-U for June 2009 (215.7)
with the CPI-U for June 2015 (238.6), resulting in an inflation factor
of 1.1061. The table below sets out these items accordingly.
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\12\ See 74 FR 2349 (Jan. 15, 2009).
----------------------------------------------------------------------------------------------------------------
Previous New adjusted
maximum Inflation Rounded maximum
U.S. Code citation Description penalty increase inflation penalty
amount increase amount
----------------------------------------------------------------------------------------------------------------
42 U.S.C. 4012a(f)(5)......... Maximum penalty 485 51.55 100 585
per violation.
42 U.S.C. 4012a(f)(5)......... Maximum total 140,000 14,854 10,000 150,000
penalties
assessed
against an
Enterprise in a
calendar year.
----------------------------------------------------------------------------------------------------------------
IV. Regulatory Impact
Administrative Procedure Act
FHFA finds good cause that notice and an opportunity to comment on
this document are unnecessary under section 553(b) of the
Administrative Procedure Act (APA), 5 U.S.C. 553(b). This rulemaking
conforms with and is consistent with the statutory directive set forth
in the Inflation Adjustment Act. As a result, there are no issues of
policy discretion about which to seek public comment. Accordingly, FHFA
is issuing the amendments as a final rule.
In addition, FHFA finds good cause to make this rule effective upon
publication of this document in the Federal Register under the APA. See
5 U.S.C. 553(d). This final rule does not impose any additional
responsibilities on any entity and therefore requires no adjustment to
any entity's current operations, policies, or practices. Instead, it
simply adjusts the amount of each CMP tier as dictated by the Inflation
Adjustment Act.
Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (RFA),\13\ an agency
must prepare a regulatory flexibility analysis for all proposed and
final rules that describes the impact of the rule on small entities,
unless the head of an agency certifies that the rule will not have ``a
significant economic impact on a substantial number of small
entities.'' However, the RFA applies only to rules for which an agency
publishes a general notice of proposed rulemaking pursuant to the
APA.\14\ As discussed above, FHFA has determined for good cause that
the APA does not require notice and public comment on this rule and,
therefore, FHFA is not publishing a general notice of proposed
rulemaking. Thus, the RFA does not apply to this final rule.
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\13\ 5 U.S.C. 603.
\14\ 5 U.S.C. 603(a), 604(a).
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Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) requires that
regulations involving the collection of information receive clearance
from the Office of Management and Budget (OMB). This rule contains no
such collection of information requiring OMB approval under the
Paperwork Reduction Act. Consequently, no information has been
submitted to OMB for review.
List of Subjects
12 CFR Part 1209
Administrative practice and procedure, Penalties.
12 CFR Part 1250
Flood insurance, Government-sponsored enterprises, Penalties,
Reporting and recordkeeping requirements.
Accordingly, for the reasons stated in the SUPPLEMENTARY
INFORMATION and under the authority of 12 U.S.C. 4513b and 12 U.S.C.
4526, the Federal Housing Finance Agency hereby amends subchapters A
and C of chapter XII of Title 12 of the Code of Federal Regulations as
follows:
SUBCHAPTER A--ORGANIZATION AND OPERATIONS
PART 1209--RULES OF PRACTICE AND PROCEDURE
0
1. The authority citation for part 1209 continues to read as follows:
Authority: 5 U.S.C. 554, 556, 557, and 701 et seq.; 12 U.S.C.
1430c(d); 12 U.S.C. 4501, 4502, 4503, 4511, 4513, 4513b, 4517, 4526,
4566(c)(1) and (c)(7), 4581-4588, 4631-4641; and 28 U.S.C. 2461
note.
0
2. Revise Sec. 1209.80 to read as follows:
Sec. 1209.80 Inflation adjustments.
The maximum amount of each civil money penalty within FHFA's
jurisdiction, as set by the Safety and Soundness Act and thereafter
adjusted in accordance with the Inflation Adjustment Act, is as
follows:
------------------------------------------------------------------------
New adjusted
maximum
U.S. Code citation Description penalty
amount
------------------------------------------------------------------------
12 U.S.C. 4636(b)(1)........... First Tier............. $11,000
12 U.S.C. 4636(b)(2)........... Second Tier............ 55,000
12 U.S.C. 4636(b)(4)........... Third Tier (Entity- 2,175,000
Affiliated party).
12 U.S.C. 4636(b)(4)........... Third Tier (Regulated 2,175,000
entity).
------------------------------------------------------------------------
0
3. Revise Sec. 1209.81 to read as follows:
Sec. 1209.81 Applicability.
The inflation adjustments set out in Sec. 1209.80 shall apply to
civil money penalties assessed in accordance with the provisions of the
Safety and Soundness Act, 12 U.S.C. 4636, and subparts B and C of this
part, for
[[Page 8642]]
violations occurring after February 22, 2016.
SUBCHAPTER C--ENTERPRISES
PART 1250--FLOOD INSURANCE
0
4. The authority citation for part 1250 continues to read as follows:
Authority: 12 U.S.C. 4521(a)(4) and 4526; 28 U.S.C. 2461 note;
42 U.S.C. 4001 note; 42 U.S.C. 4012a(f)(3), (4), (5), (8), (9), and
(10).
0
5. Revise Sec. 1250.3(c) to read as follows:
Sec. 1250.3 Civil money penalties.
* * * * *
(c) Amount. The maximum civil money penalty amount is $485 for each
violation that occurs before February 22, 2016, with total penalties
not to exceed $140,000. For violations that occur on or after February
22, 2016, the civil money penalty under this section may not exceed
$585 for each violation, with total penalties assessed under this
section against an Enterprise during any calendar year not to exceed
$150,000.
* * * * *
Dated: February 15, 2016.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2016-03631 Filed 2-19-16; 8:45 am]
BILLING CODE 8070-01-P
