Repeal of Federal Housing Finance Board Regulations; Technical Amendments to FHFA Regulations, 39323-39326 [2018-16972]
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39323
Rules and Regulations
Federal Register
Vol. 83, No. 154
Thursday, August 9, 2018
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 Code of Federal Regulations is sold by
the Superintendent of Documents.
FEDERAL HOUSING FINANCE BOARD
12 CFR Parts 900, 906, and 956
Through 999
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Parts 1200, 1206, 1223, and
1261
RIN 2590–AA91
Repeal of Federal Housing Finance
Board Regulations; Technical
Amendments to FHFA Regulations
Federal Housing Finance
Agency; Federal Housing Finance
Board.
ACTION: Final rule.
AGENCY:
The Federal Housing Finance
Agency (FHFA) is repealing two parts of
the Federal Housing Finance Board
(Finance Board) regulations, which
define terms used in Finance Board
regulations, and which describe the
process by which the Finance Board
conducted its monthly interest rate
survey (MIRS). The repealed definitions
are either obsolete or duplicate
definitions that FHFA has previously
adopted. The regulation relating to the
MIRS has become outdated because it
does not accurately describe the manner
in which FHFA currently conducts the
survey. Although FHFA intends to
continue to conduct the MIRS in the
same manner as it is doing presently,
there is no need to carry over this
provision into its own regulations. This
final rule also repeals a number of
subchapters of the Finance Board
regulations that it had previously
reserved, but which no longer serve any
purpose because they include no
regulatory text, corrects inaccurate
cross-references in regulations described
in this rulemaking, and amends a table
to update information relating to
information collections under the
Paperwork Reduction Act.
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SUMMARY:
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This rule is effective on
September 10, 2018.
DATES:
FOR FURTHER INFORMATION CONTACT:
Vickie R. Olafson, Assistant General
Counsel, Vickie.Olafson@FHFA.gov,
(202) 649–3025 (this is not a toll-free
number), Federal Housing Finance
Agency, 400 Seventh Street SW,
Washington, DC 20219. The telephone
number for the Telecommunications
Device for the Deaf is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
I. Background and Analysis
Effective July 30, 2008, the Housing
and Economic Recovery Act of 2008
(HERA) 1 created FHFA as a new
independent agency of the Federal
Government, and transferred to FHFA
the supervisory and oversight
responsibilities of the Finance Board
over the Federal Home Loan Banks
(Banks), the oversight responsibilities of
the Office of Federal Housing Enterprise
Oversight (OFHEO) over the Federal
National Mortgage Association and the
Federal Home Loan Mortgage
Corporation (the Enterprises), and
certain functions of the Department of
Housing and Urban Development.2
Under section 1313(a) of the Federal
Housing Enterprises Financial Safety
and Soundness Act of 1992 (Safety and
Soundness Act), FHFA is responsible
for ensuring that the Banks and the
Enterprises operate in a safe and sound
manner, including that they maintain
adequate capital and internal controls,
that their activities foster liquid,
efficient, competitive and resilient
national housing finance markets, and
that they carry out their public policy
missions through authorized activities.3
The Banks and the Enterprises remain
subject to, and continue to operate
under, regulations promulgated by the
Finance Board and by OFHEO and
HUD, respectively, until such
regulations are superseded by
regulations issued by FHFA.4 The
Finance Board regulations that are the
subject of this rulemaking have
remained in effect pursuant to that
authority.
On April 3, 2018, FHFA published a
notice of proposed rulemaking to repeal
certain outdated Finance Board
1 HERA,
Public Law 110–289, 122 Stat. 2654.
id. at section 1101, 122 Stat. 2661–62
(codified at 12 U.S.C. 4511, 4511 note, and 4513).
3 12 U.S.C. 4513(a).
4 12 U.S.C. 4511 note.
2 See
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regulations.5 FHFA proposed to repeal
definitions under the Finance Board
regulations that are obsolete or that
duplicate FHFA definitions, and to
repeal an outdated Finance Board
regulation that describes the process the
Finance Board used to conduct the
MIRS. FHFA also proposed to repeal
subchapters of the Finance Board
regulations that were reserved and no
longer serve any regulatory purpose.
The comment period ended on May 18,
2018. FHFA received no comments in
response to any part of the proposed
rulemaking, and thus is finalizing the
amendments to the Finance Board
regulations as proposed.
A. Definitions—Finance Board Part 900
FHFA proposed repealing the Finance
Board definitions located in Subchapter
A, which consists of part 900 of the
Finance Board regulations, and includes
definitions of forty-two terms that had
been used throughout the Finance Board
regulations. In 2013 FHFA carried over
into its own regulations (at part 1201)
most of the Finance Board definitions,
but did not repeal the Finance Board
definitions at that time because a
number of substantive Finance Board
regulations that used those terms
remained in effect.6 FHFA has now
proposed repealing all of the definitions
within part 900 of the Finance Board
regulations because, since 2013, FHFA
has relocated or repealed all of the
substantive Finance Board regulations,
other than those relating to Bank capital
requirements, which are the subject of a
separate rulemaking.7 The final rule is
identical to the proposed rule on this
topic.
5 Repeal of Federal Housing Finance Board
Regulations, 83 FR 14205 (Apr. 3, 2018).
6 See Relocation of Regulations, 78 FR 2319 (Jan.
11, 2013).
7 See Federal Home Loan Bank Capital
Requirements, 82 FR 30776 (proposed July 3, 2017).
As noted in the proposed rule, certain of those
defined terms, such as ‘‘capital plan,’’ ‘‘excess
stock,’’ and ‘‘advance,’’ are used within the Finance
Board capital regulations at parts 930 and 932,
which likely will remain in effect during an
extended transition period to the new FHFA Bank
capital regulations. 83 FR 14205, 14206. Each of
those terms is well understood by the Banks and
has been carried over into the FHFA definitions at
part 1201 without substantive change, and to the
extent any interpretive questions may arise with
respect to parts 930 and 932 after the definitions in
part 900 are repealed, the Banks may look to the
identical definitions in part 1201 of the FHFA
regulations to address those questions. Id.
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Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Rules and Regulations
B. Finance Board Part 906
FHFA proposed repealing subchapter
B, consisting of part 906 of the Finance
Board Regulations that contains
reserved subparts A and C, and subpart
B, § 906.5. Section 906.5 describes the
manner in which the Finance Board
conducted the ‘‘Monthly Survey of
Rates and Terms on Conventional OneFamily Non-farm Mortgage Loans,’’
commonly referred to as the ‘‘Monthly
Interest Rate Survey’’ or ‘‘MIRS.’’ The
MIRS is a monthly survey of mortgage
lenders that solicits information on the
terms and conditions on all
conventional, single-family, fully
amortizing, purchase-money mortgage
loans closed during the last five working
days of the preceding month. It was
originally conducted by the Federal
Home Loan Bank Board (FHLBB), and
was continued by the Finance Board, in
accordance with the Financial
Institutions Reform, Recovery, and
Enforcement Act of 1989, the legislation
that abolished the FHLBB and
established the Finance Board as its
successor. FHFA also has continued to
conduct the survey and publish the data
tables monthly, as successor to the
Finance Board.
Historically, two housing finance
benchmarks have been based on data
obtained through the MIRS: (1) The
‘‘national average one-family house
price,’’ which, between 1980 and 2008,
Fannie Mae and Freddie Mac were
statutorily required to use in making
annual adjustments to the conforming
loan limit; 8 and (2) the Adjustable Rate
Mortgage (ARM) Index, which at one
time was widely used by lenders in
determining the appropriate periodic
interest rate adjustment on their ARM
loans.
Adjustments in the conforming loan
limits for Fannie Mae and Freddie Mac
are no longer based on data collected
through the MIRS. Some lenders,
however, may still use FHFA’s ARM
Index, which is derived from MIRS data,
as one factor in pricing mortgage loans
that they originate. In addition,
businesses, trade associations, and
government agencies at both the federal
and state level rely upon the MIRS data
for various business and regulatory
purposes.
FHFA intends to continue conducting
the MIRS and publishing the data
results on its website monthly. Because
the current MIRS regulation includes an
outdated description of the manner in
8 The Housing and Community Development Act
of 1980 tied the Fannie Mae and Freddie Mac
conforming loan limits to MIRS. See Public Law
96–399, Title III, section 313(a), (b), 94 Stat. 1644–
45 (Oct. 8, 1980).
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which the survey is conducted,
however, and is not necessary in order
to implement the statutory mandate that
FHFA conduct the survey, FHFA has
determined that the regulation is
unnecessary.9 Given the absence of any
comments on the proposed rule, the
final rule is also identical to the
proposed rule on this topic.
C. Finance Board Parts 956–999
[Reserved] and Subchapters F–M
[Reserved]
The proposal also would have
repealed subchapters F–M, consisting of
parts 956–999 of title 12 of the Code of
Federal Regulations (CFR), which are
Finance Board provisions that are
designated as ‘‘[r]eserved.’’ These
reserved parts are currently the only
items under subchapters F–M of chapter
IX of title 12, and because they contain
no substantive provisions there is
nothing to revise and relocate to the
FHFA regulations. Consequently, FHFA
has determined that unless it
affirmatively removes the reference to
those parts as being reserved and
removes subchapters F–M, those
references and empty subchapters F–M
would remain in the CFR after FHFA
has removed or relocated all of the other
substantive Finance Board regulations.
Accordingly, in the interest of ensuring
that all Finance Board regulations that
will not be carried forward into the
FHFA regulations are removed from the
CFR, the final rule adopts the proposed
provision to repeal without change.
D. Other Amendments
FHFA is also using this final rule as
a vehicle to address six other matters,
each of which is technical in nature,
that FHFA had not included in the
proposed rule.
The Paperwork Reduction Act of 1995
(PRA) 10 and the implementing
regulations of the Office of Management
and Budget (OMB) 11 require FHFA to
display a currently valid control number
for each collection of information the
Agency conducts or sponsors. To satisfy
this requirement, § 1200.4(b) of FHFA’s
regulations includes a table identifying
each section of the regulations that
contains an information collection
requirement and showing, for each of
those collections, the control number
assigned by OMB and the expiration
date of that control number. FHFA is
using this final rule as a means to
9 See Financial Institutions Reform, Recovery,
and Enforcement Act of 1989, Public Law 101–73,
Title IV, section 402(e), 103 Stat. 359–360 (Aug. 9,
1989), codified at 12 U.S.C. 1437 note (regarding the
continuation of the ARM Index).
10 44 U.S.C. 3501 et seq.
11 5 CFR part 1320.
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update the information contained in
that table to reflect recent OMB actions
and approvals.
Separately, § 1261.9(c) of FHFA’s
Federal Home Loan Bank directorship
regulations includes an inaccurate
cross-reference to a provision within
FHFA’s minority and women inclusion
regulations. The regulation currently
refers to 12 CFR 1207.21(b)(5), which
FHFA relocated in 2017 to 12 CFR
1223.21(b)(7).12 The cross-referenced
provision requires the regulated entities
to have policies to encourage the
consideration of diversity when
nominating or soliciting nominations for
positions on their boards of directors.
FHFA is also using this final rule as a
means to correct the cross reference
within 12 CFR 1261.9(c).
This final rule also corrects inaccurate
cross-references that had not been
updated in four other regulations, as
follows. First, the reference to ‘‘12
U.S.C. 3645’’ in § 1206.3(a)(3) is
replaced with ‘‘12 U.S.C. 4635.’’
Second, the reference to
‘‘§ 1223.21(b)(6)’’ in § 1223.3(b) is
replaced with ‘‘§ 1223.21(b)(9).’’ Third,
the reference to ‘‘§ 1207.3(b)’’ in
§ 1223.21(b)(9) is replaced with
‘‘§ 1223.3(b).’’ Fourth, the reference to
‘‘§§ 1207.20 and 1207.21’’ in
§ 1223.23(b)(20) is replaced with
‘‘§§ 1223.20 and 1223.21.’’
The Administrative Procedure Act
(APA) provides that an agency may
amend its regulations without going
through a notice and comment
rulemaking if it finds good cause that it
would be ‘‘impracticable, unnecessary,
or contrary to the public interest.’’ 13
Each of the six amendments described
above is technical in nature and does
not present any issues on which public
comment would be necessary.
Moreover, it is consistent with the
public interest for FHFA to correct
inaccurate citations within its
regulations and to ensure that it
periodically updates the information
pertaining to OMB control numbers and
the expiration dates for its collections of
information. Accordingly, FHFA finds
that there is good cause for amending
these two provisions without an
12 The relocation and redesignation occurred in
two phases. In March 2017, FHFA redesignated the
Minority and Women Inclusion (MWI) regulations
that apply to the regulated entities from 12 CFR part
1207 to 12 CFR part 1223, as a result of which
§ 1207.21(b)(5) became § 1223.21(b)(5). See
Minority and Women Outreach Program, 82 FR
14992, 14993 (Mar. 24, 2017). In July 2017, FHFA
again amended the MWI regulations that apply to
the regulated entities by, among other things,
redesignating § 1223.21(b)(5) as § 1223.21(b)(7). See
82 FR 34388, 34395–96 (July 25, 2017).
13 5 U.S.C. 553(b)(B).
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opportunity for prior notice and
comment.
II. Considerations of Differences
Between the Banks and the Enterprises
Section 1313(f) of the Safety and
Soundness Act requires the FHFA
Director, when promulgating regulations
‘‘of general applicability and future
effect’’ relating to the Banks, to consider
the differences between the Banks and
the Enterprises as they may relate 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.14 As was stated in the
proposed rule, FHFA has determined
that no such analysis is required in this
case because the final rule would not
impose any new obligations on the Bank
or have any future effect on their rights
and responsibilities.
economic impact on a substantial
number of small entities, small
businesses, or small organizations must
include a regulatory flexibility analysis
describing the regulation’s impact on
small entities. Such an analysis need
not be undertaken if the agency has
certified that the regulation will not
have a significant economic impact on
a substantial number of small entities. 5
U.S.C. 605(b). FHFA has considered the
impact of this rulemaking and certifies
that it will not have a significant
economic impact on a substantial
number of small entities because the
amendments are entirely technical in
nature. Even if the final rule were to
have an economic impact, it would
apply only to the regulated entities,
which are not small entities for
purposes of the Regulatory Flexibility
Act.
12 CFR Part 1261
Banking, Banks, Conflicts of interest,
Elections, Ethical conduct, Federal
home loan banks, Financial disclosure,
Reporting and recordkeeping
requirements.
Authority and Issuance
Accordingly, for reasons stated in the
preamble and under the authority of 12
U.S.C. 4511, 4512, 4513, and 4526,
FHFA amends subchapters A, B, and F–
M of chapter IX and subchapters A and
D of chapter XII of the Code of Federal
Regulations as follows:
CHAPTER IX—FEDERAL HOUSING
FINANCE BOARD
SUBCHAPTER A—[REMOVED AND
RESERVED]
1. Remove and reserve subchapter A,
consisting of part 900.
■
V. Congressional Review Act
III. Paperwork Reduction Act
The PRA requires that FHFA consider
the impact of paperwork and other
information collection burdens imposed
on the public.15 Under the PRA and
OMB’s implementing regulations, an
agency may not collect or sponsor the
collection of information, nor may it
impose an information collection
requirement unless it displays a
currently valid control number assigned
by OMB.16 The MIRS addressed by 12
CFR 906.5 is a collection of information
that OMB has approved under control
number 2590–0004, which is due to
expire on September 30, 2020.
Although the final rule removes the
descriptive provision regarding the
MIRS that now appears at 12 CFR 906.5,
that removal does not change any aspect
of the information collection; that is,
FHFA will continue to conduct the
survey in accordance with the terms of
the existing PRA clearance. Therefore,
FHFA has not submitted to OMB a
request to approve a revision to control
number 2590–0004.
FHFA has determined that this
regulatory action does not qualify as
either a ‘‘rule’’ or a ‘‘major rule’’ under
the Congressional Review Act. See 5
U.S.C. 804(2), (3).
Federal home loan banks, Reporting
and recordkeeping requirements.
■
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires that a final
regulation that has a significant
12 CFR Part 1223
§ 1200.4 OMB control numbers assigned
under the Paperwork Reduction Act.
List of Subjects
SUBCHAPTER B—[REMOVED AND
RESERVED]
2. Remove and reserve subchapter B,
consisting of part 906.
■
SUBCHAPTERS F–M—[REMOVED]
12 CFR Part 900
3. Remove reserved subchapters F–M,
consisting of reserved parts 956 through
999.
■
Federal home loan banks, Office of
finance, Regulated entity.
12 CFR Part 906
Conventional one-family non-farm
mortgage loans, Government contracts,
Minority businesses, Monthly interest
rate survey, Mortgages, Reporting and
recordkeeping requirements.
12 CFR Part 1200
Organization and functions
(Government agencies), Reporting and
recordkeeping requirements, Seals and
insignia.
12 CFR Part 1206
Civil rights, Equal employment
opportunity, Government contracts,
Minority businesses.
CHAPTER XII—FEDERAL HOUSING
FINANCE AGENCY
SUBCHAPTER A—ORGANIZATION AND
FUNCTIONS
PART 1200—ORGANIZATION AND
FUNCTIONS
4. The authority citation for part 1200
continues to read as follows:
■
Authority: 5 U.S.C. 552, 12 U.S.C. 4512, 12
U.S.C. 4526, 44 U.S.C. 3506.
5. In § 1200.4, revise the table in
paragraph (b) to read as follows:
*
*
*
(b) * * *
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1222.22 ....................................................................................................................................................................
1222.23 ....................................................................................................................................................................
1222.24 ....................................................................................................................................................................
1222.25 ....................................................................................................................................................................
1222.26 ....................................................................................................................................................................
1223.23 ....................................................................................................................................................................
1261.7 ......................................................................................................................................................................
U.S.C. 4513(f).
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15 See
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44 U.S.C. 3507(a), (d).
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*
OMB
control No.
12 CFR part or section where identified and described
14 12
*
16 See
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2590–0013
2590–0013
2590–0013
2590–0013
2590–0013
2590–0014
2590–0006
Expiration
date
07/31/2018
07/31/2018
07/31/2018
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02/28/2021
44 U.S.C. 3512(a); 5 CFR 1320.8(b)(3)(vi).
09AUR1
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OMB
control No.
12 CFR part or section where identified and described
1261.12 ....................................................................................................................................................................
1261.14 ....................................................................................................................................................................
1263.2 ......................................................................................................................................................................
1263.4 ......................................................................................................................................................................
1263.5 ......................................................................................................................................................................
1263.6 ......................................................................................................................................................................
1263.7 ......................................................................................................................................................................
1263.8 ......................................................................................................................................................................
1263.9 ......................................................................................................................................................................
1263.11 ....................................................................................................................................................................
1263.12 ....................................................................................................................................................................
1263.13 ....................................................................................................................................................................
1263.14 ....................................................................................................................................................................
1263.15 ....................................................................................................................................................................
1263.16 ....................................................................................................................................................................
1263.17 ....................................................................................................................................................................
1263.18 ....................................................................................................................................................................
1263.19 ....................................................................................................................................................................
1263.24 ....................................................................................................................................................................
1263.26 ....................................................................................................................................................................
1263.31 ....................................................................................................................................................................
1264.4 ......................................................................................................................................................................
1264.5 ......................................................................................................................................................................
1264.6 ......................................................................................................................................................................
1266.17 ....................................................................................................................................................................
1268.7 ......................................................................................................................................................................
1277.22 ....................................................................................................................................................................
1277.28 ....................................................................................................................................................................
1290.2 ......................................................................................................................................................................
1290.3 ......................................................................................................................................................................
1290.4 ......................................................................................................................................................................
1290.5 ......................................................................................................................................................................
1291.5 ......................................................................................................................................................................
1291.6 ......................................................................................................................................................................
1291.7 ......................................................................................................................................................................
1291.8 ......................................................................................................................................................................
1291.9 ......................................................................................................................................................................
PART 1206—ASSESSMENTS
6. The authority citation for part 1206
continues to read as follows:
and adding in its place the reference
‘‘§ 1223.3(b)’’.
■
§ 1223.23
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DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Amended]
14 CFR Part 39
7. Amend § 1206.3(a)(3) by removing
the reference ‘‘12 U.S.C. 3645’’ and
adding in its place the reference ‘‘12
U.S.C. 4635’’.
11. Amend § 1223.23(b)(20) by
removing the reference ‘‘§§ 1207.20 and
1207.21’’ and adding in its place the
reference ‘‘§§ 1223.20 and 1223.21’’.
SUBCHAPTER D—FEDERAL HOME LOAN
BANKS
RIN 2120–AA64
SUBCHAPTER B—ENTITY REGULATIONS
PART 1261—FEDERAL HOME LOAN
BANK DIRECTORS
PART 1223—MINORITY AND WOMEN
INCLUSION
■
8. The authority citation for part 1223
continues to read as follows:
Authority: 12 U.S.C. 1426, 1427, 1432,
4511 and 4526.
Authority: 12 U.S.C. 4520 and 4526; 12
U.S.C. 1833e; E.O. 11478.
§ 1261.9
■
Authority: 12 U.S.C. 4516.
§ 1206.3
[Amended]
■
■
§ 1223.3
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2590–0006
2590–0006
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0003
2590–0001
2590–0001
2590–0001
2590–0001
2590–0008
2590–0002
2590–0002
2590–0005
2590–0005
2590–0005
2590–0005
2590–0007
2590–0007
2590–0007
2590–0007
2590–0007
Expiration
date
9. Amend § 1223.3(b) by removing the
reference ‘‘§ 1223.21(b)(6)’’ and adding
in its place the reference
‘‘§ 1223.21(b)(9)’’.
■
§ 1223.21
[Amended]
10. Amend § 1223.21(b)(9) by
removing the reference ‘‘§ 1207.3(b)’’
■
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Airworthiness Directives; Airbus SAS
Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
12. The authority citation for part
1261 continues to read as follows:
[Amended]
13. Amend § 1261.9(c) introductory
text by removing the reference
‘‘§ 1207.21(b)(5)’’ and adding in its place
the reference ‘‘§ 1223.21(b)(7)’’.
■
[Amended]
[Docket No. FAA–2018–0165; Product
Identifier 2017–NM–122–AD; Amendment
39–19342; AD 2018–16–02]
Dated: August 2, 2018.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2018–16972 Filed 8–8–18; 8:45 am]
BILLING CODE 8070–01–P
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We are adopting a new
airworthiness directive (AD) for all
Airbus SAS Model A318–111 and –112
airplanes, Model A319–111, –112, –113,
–114, and –115 airplanes, Model A320–
211, –212, –214, and –216 airplanes,
and Model A321–111, –112, –211, –212,
and –213 airplanes. This AD was
prompted by a report of a production
quality deficiency on the inner retainer
installed on link assemblies of the aft
engine mount, which could result in
SUMMARY:
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[Federal Register Volume 83, Number 154 (Thursday, August 9, 2018)]
[Rules and Regulations]
[Pages 39323-39326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16972]
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Rules and Regulations
Federal Register
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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 Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 /
Rules and Regulations
[[Page 39323]]
FEDERAL HOUSING FINANCE BOARD
12 CFR Parts 900, 906, and 956 Through 999
FEDERAL HOUSING FINANCE AGENCY
12 CFR Parts 1200, 1206, 1223, and 1261
RIN 2590-AA91
Repeal of Federal Housing Finance Board Regulations; Technical
Amendments to FHFA Regulations
AGENCY: Federal Housing Finance Agency; Federal Housing Finance Board.
ACTION: Final rule.
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SUMMARY: The Federal Housing Finance Agency (FHFA) is repealing two
parts of the Federal Housing Finance Board (Finance Board) regulations,
which define terms used in Finance Board regulations, and which
describe the process by which the Finance Board conducted its monthly
interest rate survey (MIRS). The repealed definitions are either
obsolete or duplicate definitions that FHFA has previously adopted. The
regulation relating to the MIRS has become outdated because it does not
accurately describe the manner in which FHFA currently conducts the
survey. Although FHFA intends to continue to conduct the MIRS in the
same manner as it is doing presently, there is no need to carry over
this provision into its own regulations. This final rule also repeals a
number of subchapters of the Finance Board regulations that it had
previously reserved, but which no longer serve any purpose because they
include no regulatory text, corrects inaccurate cross-references in
regulations described in this rulemaking, and amends a table to update
information relating to information collections under the Paperwork
Reduction Act.
DATES: This rule is effective on September 10, 2018.
FOR FURTHER INFORMATION CONTACT: Vickie R. Olafson, Assistant General
Counsel, [email protected], (202) 649-3025 (this is not a toll-
free number), Federal Housing Finance Agency, 400 Seventh Street SW,
Washington, DC 20219. The telephone number for the Telecommunications
Device for the Deaf is (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background and Analysis
Effective July 30, 2008, the Housing and Economic Recovery Act of
2008 (HERA) \1\ created FHFA as a new independent agency of the Federal
Government, and transferred to FHFA the supervisory and oversight
responsibilities of the Finance Board over the Federal Home Loan Banks
(Banks), the oversight responsibilities of the Office of Federal
Housing Enterprise Oversight (OFHEO) over the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation (the
Enterprises), and certain functions of the Department of Housing and
Urban Development.\2\ Under section 1313(a) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (Safety and
Soundness Act), FHFA is responsible for ensuring that the Banks and the
Enterprises operate in a safe and sound manner, including that they
maintain adequate capital and internal controls, that their activities
foster liquid, efficient, competitive and resilient national housing
finance markets, and that they carry out their public policy missions
through authorized activities.\3\ The Banks and the Enterprises remain
subject to, and continue to operate under, regulations promulgated by
the Finance Board and by OFHEO and HUD, respectively, until such
regulations are superseded by regulations issued by FHFA.\4\ The
Finance Board regulations that are the subject of this rulemaking have
remained in effect pursuant to that authority.
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\1\ HERA, Public Law 110-289, 122 Stat. 2654.
\2\ See id. at section 1101, 122 Stat. 2661-62 (codified at 12
U.S.C. 4511, 4511 note, and 4513).
\3\ 12 U.S.C. 4513(a).
\4\ 12 U.S.C. 4511 note.
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On April 3, 2018, FHFA published a notice of proposed rulemaking to
repeal certain outdated Finance Board regulations.\5\ FHFA proposed to
repeal definitions under the Finance Board regulations that are
obsolete or that duplicate FHFA definitions, and to repeal an outdated
Finance Board regulation that describes the process the Finance Board
used to conduct the MIRS. FHFA also proposed to repeal subchapters of
the Finance Board regulations that were reserved and no longer serve
any regulatory purpose. The comment period ended on May 18, 2018. FHFA
received no comments in response to any part of the proposed
rulemaking, and thus is finalizing the amendments to the Finance Board
regulations as proposed.
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\5\ Repeal of Federal Housing Finance Board Regulations, 83 FR
14205 (Apr. 3, 2018).
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A. Definitions--Finance Board Part 900
FHFA proposed repealing the Finance Board definitions located in
Subchapter A, which consists of part 900 of the Finance Board
regulations, and includes definitions of forty-two terms that had been
used throughout the Finance Board regulations. In 2013 FHFA carried
over into its own regulations (at part 1201) most of the Finance Board
definitions, but did not repeal the Finance Board definitions at that
time because a number of substantive Finance Board regulations that
used those terms remained in effect.\6\ FHFA has now proposed repealing
all of the definitions within part 900 of the Finance Board regulations
because, since 2013, FHFA has relocated or repealed all of the
substantive Finance Board regulations, other than those relating to
Bank capital requirements, which are the subject of a separate
rulemaking.\7\ The final rule is identical to the proposed rule on this
topic.
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\6\ See Relocation of Regulations, 78 FR 2319 (Jan. 11, 2013).
\7\ See Federal Home Loan Bank Capital Requirements, 82 FR 30776
(proposed July 3, 2017). As noted in the proposed rule, certain of
those defined terms, such as ``capital plan,'' ``excess stock,'' and
``advance,'' are used within the Finance Board capital regulations
at parts 930 and 932, which likely will remain in effect during an
extended transition period to the new FHFA Bank capital regulations.
83 FR 14205, 14206. Each of those terms is well understood by the
Banks and has been carried over into the FHFA definitions at part
1201 without substantive change, and to the extent any interpretive
questions may arise with respect to parts 930 and 932 after the
definitions in part 900 are repealed, the Banks may look to the
identical definitions in part 1201 of the FHFA regulations to
address those questions. Id.
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[[Page 39324]]
B. Finance Board Part 906
FHFA proposed repealing subchapter B, consisting of part 906 of the
Finance Board Regulations that contains reserved subparts A and C, and
subpart B, Sec. 906.5. Section 906.5 describes the manner in which the
Finance Board conducted the ``Monthly Survey of Rates and Terms on
Conventional One-Family Non-farm Mortgage Loans,'' commonly referred to
as the ``Monthly Interest Rate Survey'' or ``MIRS.'' The MIRS is a
monthly survey of mortgage lenders that solicits information on the
terms and conditions on all conventional, single-family, fully
amortizing, purchase-money mortgage loans closed during the last five
working days of the preceding month. It was originally conducted by the
Federal Home Loan Bank Board (FHLBB), and was continued by the Finance
Board, in accordance with the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989, the legislation that abolished the FHLBB
and established the Finance Board as its successor. FHFA also has
continued to conduct the survey and publish the data tables monthly, as
successor to the Finance Board.
Historically, two housing finance benchmarks have been based on
data obtained through the MIRS: (1) The ``national average one-family
house price,'' which, between 1980 and 2008, Fannie Mae and Freddie Mac
were statutorily required to use in making annual adjustments to the
conforming loan limit; \8\ and (2) the Adjustable Rate Mortgage (ARM)
Index, which at one time was widely used by lenders in determining the
appropriate periodic interest rate adjustment on their ARM loans.
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\8\ The Housing and Community Development Act of 1980 tied the
Fannie Mae and Freddie Mac conforming loan limits to MIRS. See
Public Law 96-399, Title III, section 313(a), (b), 94 Stat. 1644-45
(Oct. 8, 1980).
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Adjustments in the conforming loan limits for Fannie Mae and
Freddie Mac are no longer based on data collected through the MIRS.
Some lenders, however, may still use FHFA's ARM Index, which is derived
from MIRS data, as one factor in pricing mortgage loans that they
originate. In addition, businesses, trade associations, and government
agencies at both the federal and state level rely upon the MIRS data
for various business and regulatory purposes.
FHFA intends to continue conducting the MIRS and publishing the
data results on its website monthly. Because the current MIRS
regulation includes an outdated description of the manner in which the
survey is conducted, however, and is not necessary in order to
implement the statutory mandate that FHFA conduct the survey, FHFA has
determined that the regulation is unnecessary.\9\ Given the absence of
any comments on the proposed rule, the final rule is also identical to
the proposed rule on this topic.
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\9\ See Financial Institutions Reform, Recovery, and Enforcement
Act of 1989, Public Law 101-73, Title IV, section 402(e), 103 Stat.
359-360 (Aug. 9, 1989), codified at 12 U.S.C. 1437 note (regarding
the continuation of the ARM Index).
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C. Finance Board Parts 956-999 [Reserved] and Subchapters F-M
[Reserved]
The proposal also would have repealed subchapters F-M, consisting
of parts 956-999 of title 12 of the Code of Federal Regulations (CFR),
which are Finance Board provisions that are designated as
``[r]eserved.'' These reserved parts are currently the only items under
subchapters F-M of chapter IX of title 12, and because they contain no
substantive provisions there is nothing to revise and relocate to the
FHFA regulations. Consequently, FHFA has determined that unless it
affirmatively removes the reference to those parts as being reserved
and removes subchapters F-M, those references and empty subchapters F-M
would remain in the CFR after FHFA has removed or relocated all of the
other substantive Finance Board regulations. Accordingly, in the
interest of ensuring that all Finance Board regulations that will not
be carried forward into the FHFA regulations are removed from the CFR,
the final rule adopts the proposed provision to repeal without change.
D. Other Amendments
FHFA is also using this final rule as a vehicle to address six
other matters, each of which is technical in nature, that FHFA had not
included in the proposed rule.
The Paperwork Reduction Act of 1995 (PRA) \10\ and the implementing
regulations of the Office of Management and Budget (OMB) \11\ require
FHFA to display a currently valid control number for each collection of
information the Agency conducts or sponsors. To satisfy this
requirement, Sec. 1200.4(b) of FHFA's regulations includes a table
identifying each section of the regulations that contains an
information collection requirement and showing, for each of those
collections, the control number assigned by OMB and the expiration date
of that control number. FHFA is using this final rule as a means to
update the information contained in that table to reflect recent OMB
actions and approvals.
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\10\ 44 U.S.C. 3501 et seq.
\11\ 5 CFR part 1320.
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Separately, Sec. 1261.9(c) of FHFA's Federal Home Loan Bank
directorship regulations includes an inaccurate cross-reference to a
provision within FHFA's minority and women inclusion regulations. The
regulation currently refers to 12 CFR 1207.21(b)(5), which FHFA
relocated in 2017 to 12 CFR 1223.21(b)(7).\12\ The cross-referenced
provision requires the regulated entities to have policies to encourage
the consideration of diversity when nominating or soliciting
nominations for positions on their boards of directors. FHFA is also
using this final rule as a means to correct the cross reference within
12 CFR 1261.9(c).
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\12\ The relocation and redesignation occurred in two phases. In
March 2017, FHFA redesignated the Minority and Women Inclusion (MWI)
regulations that apply to the regulated entities from 12 CFR part
1207 to 12 CFR part 1223, as a result of which Sec. 1207.21(b)(5)
became Sec. 1223.21(b)(5). See Minority and Women Outreach Program,
82 FR 14992, 14993 (Mar. 24, 2017). In July 2017, FHFA again amended
the MWI regulations that apply to the regulated entities by, among
other things, redesignating Sec. 1223.21(b)(5) as Sec.
1223.21(b)(7). See 82 FR 34388, 34395-96 (July 25, 2017).
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This final rule also corrects inaccurate cross-references that had
not been updated in four other regulations, as follows. First, the
reference to ``12 U.S.C. 3645'' in Sec. 1206.3(a)(3) is replaced with
``12 U.S.C. 4635.'' Second, the reference to ``Sec. 1223.21(b)(6)'' in
Sec. 1223.3(b) is replaced with ``Sec. 1223.21(b)(9).'' Third, the
reference to ``Sec. 1207.3(b)'' in Sec. 1223.21(b)(9) is replaced
with ``Sec. 1223.3(b).'' Fourth, the reference to ``Sec. Sec. 1207.20
and 1207.21'' in Sec. 1223.23(b)(20) is replaced with ``Sec. Sec.
1223.20 and 1223.21.''
The Administrative Procedure Act (APA) provides that an agency may
amend its regulations without going through a notice and comment
rulemaking if it finds good cause that it would be ``impracticable,
unnecessary, or contrary to the public interest.'' \13\ Each of the six
amendments described above is technical in nature and does not present
any issues on which public comment would be necessary. Moreover, it is
consistent with the public interest for FHFA to correct inaccurate
citations within its regulations and to ensure that it periodically
updates the information pertaining to OMB control numbers and the
expiration dates for its collections of information. Accordingly, FHFA
finds that there is good cause for amending these two provisions
without an
[[Page 39325]]
opportunity for prior notice and comment.
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\13\ 5 U.S.C. 553(b)(B).
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II. Considerations of Differences Between the Banks and the Enterprises
Section 1313(f) of the Safety and Soundness Act requires the FHFA
Director, when promulgating regulations ``of general applicability and
future effect'' relating to the Banks, to consider the differences
between the Banks and the Enterprises as they may relate 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.\14\ As was stated in the
proposed rule, FHFA has determined that no such analysis is required in
this case because the final rule would not impose any new obligations
on the Bank or have any future effect on their rights and
responsibilities.
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\14\ 12 U.S.C. 4513(f).
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III. Paperwork Reduction Act
The PRA requires that FHFA consider the impact of paperwork and
other information collection burdens imposed on the public.\15\ Under
the PRA and OMB's implementing regulations, an agency may not collect
or sponsor the collection of information, nor may it impose an
information collection requirement unless it displays a currently valid
control number assigned by OMB.\16\ The MIRS addressed by 12 CFR 906.5
is a collection of information that OMB has approved under control
number 2590-0004, which is due to expire on September 30, 2020.
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\15\ See 44 U.S.C. 3507(a), (d).
\16\ See 44 U.S.C. 3512(a); 5 CFR 1320.8(b)(3)(vi).
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Although the final rule removes the descriptive provision regarding
the MIRS that now appears at 12 CFR 906.5, that removal does not change
any aspect of the information collection; that is, FHFA will continue
to conduct the survey in accordance with the terms of the existing PRA
clearance. Therefore, FHFA has not submitted to OMB a request to
approve a revision to control number 2590-0004.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that
a final regulation that has a significant economic impact on a
substantial number of small entities, small businesses, or small
organizations must include a regulatory flexibility analysis describing
the regulation's impact on small entities. Such an analysis need not be
undertaken if the agency has certified that the regulation will not
have a significant economic impact on a substantial number of small
entities. 5 U.S.C. 605(b). FHFA has considered the impact of this
rulemaking and certifies that it will not have a significant economic
impact on a substantial number of small entities because the amendments
are entirely technical in nature. Even if the final rule were to have
an economic impact, it would apply only to the regulated entities,
which are not small entities for purposes of the Regulatory Flexibility
Act.
V. Congressional Review Act
FHFA has determined that this regulatory action does not qualify as
either a ``rule'' or a ``major rule'' under the Congressional Review
Act. See 5 U.S.C. 804(2), (3).
List of Subjects
12 CFR Part 900
Federal home loan banks, Office of finance, Regulated entity.
12 CFR Part 906
Conventional one-family non-farm mortgage loans, Government
contracts, Minority businesses, Monthly interest rate survey,
Mortgages, Reporting and recordkeeping requirements.
12 CFR Part 1200
Organization and functions (Government agencies), Reporting and
recordkeeping requirements, Seals and insignia.
12 CFR Part 1206
Federal home loan banks, Reporting and recordkeeping requirements.
12 CFR Part 1223
Civil rights, Equal employment opportunity, Government contracts,
Minority businesses.
12 CFR Part 1261
Banking, Banks, Conflicts of interest, Elections, Ethical conduct,
Federal home loan banks, Financial disclosure, Reporting and
recordkeeping requirements.
Authority and Issuance
Accordingly, for reasons stated in the preamble and under the
authority of 12 U.S.C. 4511, 4512, 4513, and 4526, FHFA amends
subchapters A, B, and F-M of chapter IX and subchapters A and D of
chapter XII of the Code of Federal Regulations as follows:
CHAPTER IX--FEDERAL HOUSING FINANCE BOARD
SUBCHAPTER A--[REMOVED AND RESERVED]
0
1. Remove and reserve subchapter A, consisting of part 900.
SUBCHAPTER B--[REMOVED AND RESERVED]
0
2. Remove and reserve subchapter B, consisting of part 906.
SUBCHAPTERS F-M--[REMOVED]
0
3. Remove reserved subchapters F-M, consisting of reserved parts 956
through 999.
CHAPTER XII--FEDERAL HOUSING FINANCE AGENCY
SUBCHAPTER A--ORGANIZATION AND FUNCTIONS
PART 1200--ORGANIZATION AND FUNCTIONS
0
4. The authority citation for part 1200 continues to read as follows:
Authority: 5 U.S.C. 552, 12 U.S.C. 4512, 12 U.S.C. 4526, 44
U.S.C. 3506.
0
5. In Sec. 1200.4, revise the table in paragraph (b) to read as
follows:
Sec. 1200.4 OMB control numbers assigned under the Paperwork
Reduction Act.
* * * * *
(b) * * *
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12 CFR part or section where identified OMB control Expiration
and described No. date
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1222.22................................. 2590-0013 07/31/2018
1222.23................................. 2590-0013 07/31/2018
1222.24................................. 2590-0013 07/31/2018
1222.25................................. 2590-0013 07/31/2018
1222.26................................. 2590-0013 07/31/2018
1223.23................................. 2590-0014 07/31/2018
1261.7.................................. 2590-0006 02/28/2021
[[Page 39326]]
1261.12................................. 2590-0006 02/28/2021
1261.14................................. 2590-0006 02/28/2021
1263.2.................................. 2590-0003 03/31/2020
1263.4.................................. 2590-0003 03/31/2020
1263.5.................................. 2590-0003 03/31/2020
1263.6.................................. 2590-0003 03/31/2020
1263.7.................................. 2590-0003 03/31/2020
1263.8.................................. 2590-0003 03/31/2020
1263.9.................................. 2590-0003 03/31/2020
1263.11................................. 2590-0003 03/31/2020
1263.12................................. 2590-0003 03/31/2020
1263.13................................. 2590-0003 03/31/2020
1263.14................................. 2590-0003 03/31/2020
1263.15................................. 2590-0003 03/31/2020
1263.16................................. 2590-0003 03/31/2020
1263.17................................. 2590-0003 03/31/2020
1263.18................................. 2590-0003 03/31/2020
1263.19................................. 2590-0003 03/31/2020
1263.24................................. 2590-0003 03/31/2020
1263.26................................. 2590-0003 03/31/2020
1263.31................................. 2590-0003 03/31/2020
1264.4.................................. 2590-0001 12/31/2018
1264.5.................................. 2590-0001 12/31/2018
1264.6.................................. 2590-0001 12/31/2018
1266.17................................. 2590-0001 12/31/2018
1268.7.................................. 2590-0008 02/29/2016
1277.22................................. 2590-0002 04/30/2020
1277.28................................. 2590-0002 04/30/2020
1290.2.................................. 2590-0005 03/31/2020
1290.3.................................. 2590-0005 03/31/2020
1290.4.................................. 2590-0005 03/31/2020
1290.5.................................. 2590-0005 03/31/2020
1291.5.................................. 2590-0007 03/31/2020
1291.6.................................. 2590-0007 03/31/2020
1291.7.................................. 2590-0007 03/31/2020
1291.8.................................. 2590-0007 03/31/2020
1291.9.................................. 2590-0007 03/31/2020
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PART 1206--ASSESSMENTS
0
6. The authority citation for part 1206 continues to read as follows:
Authority: 12 U.S.C. 4516.
Sec. 1206.3 [Amended]
0
7. Amend Sec. 1206.3(a)(3) by removing the reference ``12 U.S.C.
3645'' and adding in its place the reference ``12 U.S.C. 4635''.
SUBCHAPTER B--ENTITY REGULATIONS
PART 1223--MINORITY AND WOMEN INCLUSION
0
8. The authority citation for part 1223 continues to read as follows:
Authority: 12 U.S.C. 4520 and 4526; 12 U.S.C. 1833e; E.O. 11478.
Sec. 1223.3 [Amended]
0
9. Amend Sec. 1223.3(b) by removing the reference ``Sec.
1223.21(b)(6)'' and adding in its place the reference ``Sec.
1223.21(b)(9)''.
Sec. 1223.21 [Amended]
0
10. Amend Sec. 1223.21(b)(9) by removing the reference ``Sec.
1207.3(b)'' and adding in its place the reference ``Sec. 1223.3(b)''.
Sec. 1223.23 [Amended]
0
11. Amend Sec. 1223.23(b)(20) by removing the reference ``Sec. Sec.
1207.20 and 1207.21'' and adding in its place the reference
``Sec. Sec. 1223.20 and 1223.21''.
SUBCHAPTER D--FEDERAL HOME LOAN BANKS
PART 1261--FEDERAL HOME LOAN BANK DIRECTORS
0
12. The authority citation for part 1261 continues to read as follows:
Authority: 12 U.S.C. 1426, 1427, 1432, 4511 and 4526.
Sec. 1261.9 [Amended]
0
13. Amend Sec. 1261.9(c) introductory text by removing the reference
``Sec. 1207.21(b)(5)'' and adding in its place the reference ``Sec.
1223.21(b)(7)''.
Dated: August 2, 2018.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2018-16972 Filed 8-8-18; 8:45 am]
BILLING CODE 8070-01-P
