Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold, 61145-61147 [2017-27879]
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
§ 195.12
Definitions.
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(u) Small savings association—(1)
Definition. Small savings association
means a savings association that, as of
December 31 of either of the prior two
calendar years, had assets of less than
$1.252 billion. Intermediate small
savings association means a small
savings association with assets of at
least $313 million as of December 31 of
both of the prior two calendar years and
less than $1.252 billion as of December
31 of either of the prior two calendar
years.
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FEDERAL RESERVE SYSTEM
12 CFR Chapter II
For the reasons set forth in the
section, the
Board of Governors of the Federal
Reserve System amends part 228 of
chapter II of title 12 of the Code of
Federal Regulations as follows:
SUPPLEMENTARY INFORMATION
PART 228—COMMUNITY
REINVESTMENT (REGULATION BB)
5. The authority citation for part 228
is revised to read as follows:
■
Authority: 12 U.S.C. 321, 325, 1828(c),
1842, 1843, 1844, and 2901 et seq.
6. Section 228.12 is amended by
revising paragraph (u)(1) to read as
follows:
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§ 228.12
Definitions.
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(u) Small bank—(1) Definition. Small
bank means a bank that, as of December
31 of either of the prior two calendar
years, had assets of less than $1.252
billion. Intermediate small bank means
a small bank with assets of at least $313
million as of December 31 of both of the
prior two calendar years and less than
$1.252 billion as of December 31 of
either of the prior two calendar years.
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Authority: 12 U.S.C. 1814–1817, 1819–
1820, 1828, 1831u and 2901–2908, 3103–
3104, and 3108(a).
8. Section 345.12 is amended by
redesignating paragraph (j)(5) as
paragraph (j)(4) and revising paragraph
(u)(1) to read as follows:
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§ 345.12
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(u) Small bank—(1) Definition. Small
bank means a bank that, as of December
31 of either of the prior two calendar
years, had assets of less than $1.252
billion. Intermediate small bank means
a small bank with assets of at least $313
million as of December 31 of both of the
prior two calendar years and less than
$1.252 billion as of December 31 of
either of the prior two calendar years.
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Dated: December 19, 2017.
Karen Solomon,
Acting 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.
Ann E. Misback,
Secretary of the Board.
By order of the Board of Directors.
Dated at Washington, DC, this 14th day of
December 2017.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2017–27813 Filed 12–26–17; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 790
RIN 3133–AE81
Agency Reorganization; Correction
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12 CFR Chapter III
SUMMARY:
7. The authority citation for part 345
continues to read as follows:
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§ 790.2
[Corrected]
On page 60292, in the second column,
in part 790, in amendment 10, the
instruction ‘‘In § 790.2, revise the
second sentence of paragraph (b)(6),
paragraph (b)(12), the third sentence of
paragraph (b)(13), and paragraph (b)(15)
to read as follows:’’ is corrected to read
‘‘In § 790.2, revise the second sentence
of paragraph (b)(6), paragraph (b)(12),
the fourth sentence of paragraph (b)(13),
and paragraph (b)(15) to read as
follows:’’
By the National Credit Union
Administration Board on December 21, 2017.
Gerard Poliquin,
Secretary of the Board
[FR Doc. 2017–27962 Filed 12–26–17; 8:45 am]
BILLING CODE 7535–01–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). Based on the
2.1 percent increase in the average of
the CPI–W for the 12-month period
ending in November 2017, the
exemption threshold is adjusted to
increase to $45 million from $44
million. Therefore, banks, savings
associations, and credit unions with
assets of $45 million or less as of
December 31, 2017, are exempt from
collecting data in 2018.
DATES: This final rule is effective
January 1, 2018.
FOR FURTHER INFORMATION CONTACT:
Monique Chenault, Paralegal Specialist,
Office of Regulations, Consumer
Financial Protection Bureau, 1700 G
SUMMARY:
National Credit Union
Administration (NCUA).
ACTION: Final rule; correction.
PART 345—COMMUNITY
REINVESTMENT
In FR Doc.
2017–27411, appearing on page 60290
in the Federal Register of Wednesday,
December 20, 2017, the following
corrections are made:
SUPPLEMENTARY INFORMATION:
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Definitions.
FEDERAL DEPOSIT INSURANCE
CORPORATION
Authority and Issuance
For the reasons set forth in the
SUPPLEMENTARY INFORMATION section, the
Board of Directors of the Federal
Deposit Insurance Corporation amends
part 345 of chapter III of title 12 of the
Code of Federal Regulations to read as
follows:
AGENCY:
The NCUA is correcting a
final rule that appeared in the Federal
Register on December 20, 2017. The
document implemented certain features
of the NCUA reorganization that the
NCUA Board announced earlier this
year. This correction amends one
reference within the document.
DATES: This correction is effective
January 6, 2018.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Wirick, Senior Staff Attorney,
Office of General Counsel, 1775 Duke
Street, Alexandria, VA 22314 or
telephone (703) 518–6540.
PO 00000
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
Street NW, Washington, DC 20552, 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
their 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.
The definition of ‘‘financial
institution’’ in § 1003.2(g) 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 $1 million. For 2017, the
threshold was $44 million. During the
12-month period ending in November
2017, the average of the CPI–W
increased by 2.1 percent. As a result, the
exemption threshold is increased to $45
million. Thus, banks, savings
associations, and credit unions with
assets of $45 million or less as of
December 31, 2017, are exempt from
collecting data in 2018. An institution’s
exemption from collecting data in 2018
does not affect its responsibility to
report data it was required to collect in
2017.
daltland on DSKBBV9HB2PROD with RULES
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 2(g)–2 in
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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 (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, 2018. The
amendment in this final rule is
technical and non-discretionary, and it
applies the method previously
established in the agency’s regulations
for determining adjustments to the
threshold.
B. Regulatory Flexibility Act
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis. 5 U.S.C. 603(a), 604(a).
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3506;
5 CFR part 1320), the agency reviewed
this final rule. No collections of
information pursuant to the Paperwork
Reduction Act are contained in the final
rule.
D. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), CFPB will
submit a report containing this rule and
other required information to the U.S.
Senate, the U.S. House of
Representatives, and the Comptroller
General of the United States prior to the
rule taking effect. The Office of
Information and Regulatory Affairs
(OIRA) has designated this rule as not
a ‘‘major rule’’ as defined by 5 U.S.C.
804(2).
List of Subjects in 12 CFR Part 1003
Banking, Banks, Credit unions,
Mortgages, National banks, Reporting
PO 00000
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and recordkeeping requirements,
Savings associations.
Authority and Issuance
For the reasons set forth above, 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, 2(g)
Financial Institution is revised to read
as follows:
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Supplement I to Part 1003—Official
Interpretations
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Section 1003.2—Definitions
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2(g) Financial Institution
1. Preceding calendar year and
preceding December 31. The definition
of financial institution refers both to the
preceding calendar year and the
preceding December 31. These terms
refer to the calendar year and the
December 31 preceding the current
calendar year. For example, in 2019, the
preceding calendar year is 2018 and the
preceding December 31 is December 31,
2018. Accordingly, in 2019, Financial
Institution A satisfies the asset-size
threshold described in § 1003.2(g)(1)(i)
if its assets exceeded the threshold
specified in comment 2(g)–2 on
December 31, 2018. Likewise, in 2020,
Financial Institution A does not meet
the loan-volume test described in
§ 1003.2(g)(1)(v)(A) if it originated fewer
than 25 closed-end mortgage loans
during either 2018 or 2019.
2. Adjustment of exemption threshold
for banks, savings associations, and
credit unions. For data collection in
2018, the asset-size exemption threshold
is $45 million. Banks, savings
associations, and credit unions with
assets at or below $45 million as of
December 31, 2017, are exempt from
collecting data for 2018.
3. Merger or acquisition—coverage of
surviving or newly formed institution.
After a merger or acquisition, the
surviving or newly formed institution is
a financial institution under § 1003.2(g)
if it, considering the combined assets,
location, and lending activity of the
surviving or newly formed institution
and the merged or acquired institutions
or acquired branches, satisfies the
criteria included in § 1003.2(g). For
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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations
example, A and B merge. The surviving
or newly formed institution meets the
loan threshold described in
§ 1003.2(g)(1)(v)(B) if the surviving or
newly formed institution, A, and B
originated a combined total of at least
500 open-end lines of credit in each of
the two preceding calendar years.
Likewise, the surviving or newly formed
institution meets the asset-size
threshold in § 1003.2(g)(1)(i) if its assets
and the combined assets of A and B on
December 31 of the preceding calendar
year exceeded the threshold described
in § 1003.2(g)(1)(i). Comment 2(g)–4
discusses a financial institution’s
responsibilities during the calendar year
of a merger.
4. Merger or acquisition—coverage for
calendar year of merger or acquisition.
The scenarios described below illustrate
a financial institution’s responsibilities
for the calendar year of a merger or
acquisition. For purposes of these
illustrations, a ‘‘covered institution’’
means a financial institution, as defined
in § 1003.2(g), that is not exempt from
reporting under § 1003.3(a), and ‘‘an
institution that is not covered’’ means
either an institution that is not a
financial institution, as defined in
§ 1003.2(g), or an institution that is
exempt from reporting under
§ 1003.3(a).
i. Two institutions that are not
covered merge. The surviving or newly
formed institution meets all of the
requirements necessary to be a covered
institution. No data collection is
required for the calendar year of the
merger (even though the merger creates
an institution that meets all of the
requirements necessary to be a covered
institution). When a branch office of an
institution that is not covered is
acquired by another institution that is
not covered, and the acquisition results
in a covered institution, no data
collection is required for the calendar
year of the acquisition.
ii. A covered institution and an
institution that is not covered merge.
The covered institution is the surviving
institution, or a new covered institution
is formed. For the calendar year of the
merger, data collection is required for
covered loans and applications handled
in the offices of the merged institution
that was previously covered and is
optional for covered loans and
applications handled in offices of the
merged institution that was previously
not covered. When a covered institution
acquires a branch office of an institution
that is not covered, data collection is
optional for covered loans and
applications handled by the acquired
branch office for the calendar year of the
acquisition.
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iii. A covered institution and an
institution that is not covered merge.
The institution that is not covered is the
surviving institution, or a new
institution that is not covered is formed.
For the calendar year of the merger, data
collection is required for covered loans
and applications handled in offices of
the previously covered institution that
took place prior to the merger. After the
merger date, data collection is optional
for covered loans and applications
handled in the offices of the institution
that was previously covered. When an
institution remains not covered after
acquiring a branch office of a covered
institution, data collection is required
for transactions of the acquired branch
office that take place prior to the
acquisition. Data collection by the
acquired branch office is optional for
transactions taking place in the
remainder of the calendar year after the
acquisition.
iv. Two covered institutions merge.
The surviving or newly formed
institution is a covered institution. Data
collection is required for the entire
calendar year of the merger. The
surviving or newly formed institution
files either a consolidated submission or
separate submissions for that calendar
year. When a covered institution
acquires a branch office of a covered
institution, data collection is required
for the entire calendar year of the
merger. Data for the acquired branch
office may be submitted by either
institution.
5. Originations. Whether an
institution is a financial institution
depends in part on whether the
institution originated at least 25 closedend mortgage loans in each of the two
preceding calendar years or at least 500
open-end lines of credit in each of the
two preceding calendar years.
Comments 4(a)–2 through –4 discuss
whether activities with respect to a
particular closed-end mortgage loan or
open-end line of credit constitute an
origination for purposes of § 1003.2(g).
6. Branches of foreign banks—treated
as banks. A Federal branch or a Statelicensed or insured branch of a foreign
bank that meets the definition of a
‘‘bank’’ under section 3(a)(1) of the
Federal Deposit Insurance Act (12
U.S.C. 1813(a)) is a bank for the
purposes of § 1003.2(g).
7. Branches and offices of foreign
banks and other entities—treated as
nondepository financial institutions. A
Federal agency, State-licensed agency,
State-licensed uninsured branch of a
foreign bank, commercial lending
company owned or controlled by a
foreign bank, or entity operating under
section 25 or 25A of the Federal Reserve
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61147
Act, 12 U.S.C. 601 and 611 (Edge Act
and agreement corporations) may not
meet the definition of ‘‘bank’’ under the
Federal Deposit Insurance Act and may
thereby fail to satisfy the definition of a
depository financial institution under
§ 1003.2(g)(1). An entity is nonetheless
a financial institution if it meets the
definition of nondepository financial
institution under § 1003.2(g)(2).
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Dated: December 14, 2017.
Mick Mulvaney,
Acting Director, Bureau of Consumer
Financial Protection.
[FR Doc. 2017–27879 Filed 12–21–17; 4:15 pm]
BILLING CODE 4810–AM–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
Truth in Lending Act (Regulation Z)
Adjustment to Asset-Size Exemption
Threshold
Bureau of Consumer Financial
Protection.
ACTION: Final rule; official
interpretation.
AGENCY:
The Bureau is amending the
official commentary that interprets the
requirements of the Bureau’s Regulation
Z (Truth in Lending) to reflect a change
in the asset-size threshold for certain
creditors to qualify for an exemption to
the requirement to establish an escrow
account for a higher-priced mortgage
loan based on the annual percentage
change in the average of the Consumer
Price Index for Urban Wage Earners and
Clerical Workers (CPI–W) for the 12month period ending in November. The
exemption threshold is adjusted to
increase to $2.112 billion from $2.069
billion. The adjustment is based on the
2.1 percent increase in the average of
the CPI–W for the 12-month period
ending in November 2017. Therefore,
creditors with assets of less than $2.112
billion (including assets of certain
affiliates) as of December 31, 2017, are
exempt, if other requirements of
Regulation Z also are met, from
establishing escrow accounts for higherpriced mortgage loans in 2018. This
asset limit will also apply during a grace
period, in certain circumstances, with
respect to transactions with applications
received before April 1 of 2019. The
adjustment to the escrows asset-size
exemption threshold will also increase
a similar threshold for small-creditor
portfolio and balloon-payment qualified
mortgages. Balloon-payment qualified
mortgages that satisfy all applicable
SUMMARY:
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Agencies
[Federal Register Volume 82, Number 247 (Wednesday, December 27, 2017)]
[Rules and Regulations]
[Pages 61145-61147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27879]
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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). Based on the 2.1 percent increase
in the average of the CPI-W for the 12-month period ending in November
2017, the exemption threshold is adjusted to increase to $45 million
from $44 million. Therefore, banks, savings associations, and credit
unions with assets of $45 million or less as of December 31, 2017, are
exempt from collecting data in 2018.
DATES: This final rule is effective January 1, 2018.
FOR FURTHER INFORMATION CONTACT: Monique Chenault, Paralegal
Specialist, Office of Regulations, Consumer Financial Protection
Bureau, 1700 G
[[Page 61146]]
Street NW, Washington, DC 20552, 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 their 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.
The definition of ``financial institution'' in Sec. 1003.2(g)
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 $1 million. For 2017, the threshold was $44 million. During the
12-month period ending in November 2017, the average of the CPI-W
increased by 2.1 percent. As a result, the exemption threshold is
increased to $45 million. Thus, banks, savings associations, and credit
unions with assets of $45 million or less as of December 31, 2017, are
exempt from collecting data in 2018. An institution's exemption from
collecting data in 2018 does not affect its responsibility to report
data it was required to collect in 2017.
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 2(g)-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 (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, 2018. The amendment in this final rule is technical and non-
discretionary, and it applies the method previously established in the
agency's regulations for determining adjustments to the threshold.
B. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
Regulatory Flexibility Act does not require an initial or final
regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a).
C. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR part 1320), the agency reviewed this final rule. No
collections of information pursuant to the Paperwork Reduction Act are
contained in the final rule.
D. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
CFPB will submit a report containing this rule and other required
information to the U.S. Senate, the U.S. House of Representatives, and
the Comptroller General of the United States prior to the rule taking
effect. The Office of Information and Regulatory Affairs (OIRA) has
designated this rule as not a ``major rule'' as defined by 5 U.S.C.
804(2).
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 above, 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,
2(g) Financial Institution is revised to read as follows:
Supplement I to Part 1003--Official Interpretations
* * * * *
Section 1003.2--Definitions
* * * * *
2(g) Financial Institution
1. Preceding calendar year and preceding December 31. The
definition of financial institution refers both to the preceding
calendar year and the preceding December 31. These terms refer to the
calendar year and the December 31 preceding the current calendar year.
For example, in 2019, the preceding calendar year is 2018 and the
preceding December 31 is December 31, 2018. Accordingly, in 2019,
Financial Institution A satisfies the asset-size threshold described in
Sec. 1003.2(g)(1)(i) if its assets exceeded the threshold specified in
comment 2(g)-2 on December 31, 2018. Likewise, in 2020, Financial
Institution A does not meet the loan-volume test described in Sec.
1003.2(g)(1)(v)(A) if it originated fewer than 25 closed-end mortgage
loans during either 2018 or 2019.
2. Adjustment of exemption threshold for banks, savings
associations, and credit unions. For data collection in 2018, the
asset-size exemption threshold is $45 million. Banks, savings
associations, and credit unions with assets at or below $45 million as
of December 31, 2017, are exempt from collecting data for 2018.
3. Merger or acquisition--coverage of surviving or newly formed
institution. After a merger or acquisition, the surviving or newly
formed institution is a financial institution under Sec. 1003.2(g) if
it, considering the combined assets, location, and lending activity of
the surviving or newly formed institution and the merged or acquired
institutions or acquired branches, satisfies the criteria included in
Sec. 1003.2(g). For
[[Page 61147]]
example, A and B merge. The surviving or newly formed institution meets
the loan threshold described in Sec. 1003.2(g)(1)(v)(B) if the
surviving or newly formed institution, A, and B originated a combined
total of at least 500 open-end lines of credit in each of the two
preceding calendar years. Likewise, the surviving or newly formed
institution meets the asset-size threshold in Sec. 1003.2(g)(1)(i) if
its assets and the combined assets of A and B on December 31 of the
preceding calendar year exceeded the threshold described in Sec.
1003.2(g)(1)(i). Comment 2(g)-4 discusses a financial institution's
responsibilities during the calendar year of a merger.
4. Merger or acquisition--coverage for calendar year of merger or
acquisition. The scenarios described below illustrate a financial
institution's responsibilities for the calendar year of a merger or
acquisition. For purposes of these illustrations, a ``covered
institution'' means a financial institution, as defined in Sec.
1003.2(g), that is not exempt from reporting under Sec. 1003.3(a), and
``an institution that is not covered'' means either an institution that
is not a financial institution, as defined in Sec. 1003.2(g), or an
institution that is exempt from reporting under Sec. 1003.3(a).
i. Two institutions that are not covered merge. The surviving or
newly formed institution meets all of the requirements necessary to be
a covered institution. No data collection is required for the calendar
year of the merger (even though the merger creates an institution that
meets all of the requirements necessary to be a covered institution).
When a branch office of an institution that is not covered is acquired
by another institution that is not covered, and the acquisition results
in a covered institution, no data collection is required for the
calendar year of the acquisition.
ii. A covered institution and an institution that is not covered
merge. The covered institution is the surviving institution, or a new
covered institution is formed. For the calendar year of the merger,
data collection is required for covered loans and applications handled
in the offices of the merged institution that was previously covered
and is optional for covered loans and applications handled in offices
of the merged institution that was previously not covered. When a
covered institution acquires a branch office of an institution that is
not covered, data collection is optional for covered loans and
applications handled by the acquired branch office for the calendar
year of the acquisition.
iii. A covered institution and an institution that is not covered
merge. The institution that is not covered is the surviving
institution, or a new institution that is not covered is formed. For
the calendar year of the merger, data collection is required for
covered loans and applications handled in offices of the previously
covered institution that took place prior to the merger. After the
merger date, data collection is optional for covered loans and
applications handled in the offices of the institution that was
previously covered. When an institution remains not covered after
acquiring a branch office of a covered institution, data collection is
required for transactions of the acquired branch office that take place
prior to the acquisition. Data collection by the acquired branch office
is optional for transactions taking place in the remainder of the
calendar year after the acquisition.
iv. Two covered institutions merge. The surviving or newly formed
institution is a covered institution. Data collection is required for
the entire calendar year of the merger. The surviving or newly formed
institution files either a consolidated submission or separate
submissions for that calendar year. When a covered institution acquires
a branch office of a covered institution, data collection is required
for the entire calendar year of the merger. Data for the acquired
branch office may be submitted by either institution.
5. Originations. Whether an institution is a financial institution
depends in part on whether the institution originated at least 25
closed-end mortgage loans in each of the two preceding calendar years
or at least 500 open-end lines of credit in each of the two preceding
calendar years. Comments 4(a)-2 through -4 discuss whether activities
with respect to a particular closed-end mortgage loan or open-end line
of credit constitute an origination for purposes of Sec. 1003.2(g).
6. Branches of foreign banks--treated as banks. A Federal branch or
a State-licensed or insured branch of a foreign bank that meets the
definition of a ``bank'' under section 3(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(a)) is a bank for the purposes of Sec.
1003.2(g).
7. Branches and offices of foreign banks and other entities--
treated as nondepository financial institutions. A Federal agency,
State-licensed agency, State-licensed uninsured branch of a foreign
bank, commercial lending company owned or controlled by a foreign bank,
or entity operating under section 25 or 25A of the Federal Reserve Act,
12 U.S.C. 601 and 611 (Edge Act and agreement corporations) may not
meet the definition of ``bank'' under the Federal Deposit Insurance Act
and may thereby fail to satisfy the definition of a depository
financial institution under Sec. 1003.2(g)(1). An entity is
nonetheless a financial institution if it meets the definition of
nondepository financial institution under Sec. 1003.2(g)(2).
* * * * *
Dated: December 14, 2017.
Mick Mulvaney,
Acting Director, Bureau of Consumer Financial Protection.
[FR Doc. 2017-27879 Filed 12-21-17; 4:15 pm]
BILLING CODE 4810-AM-P