Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures, 66166-66167 [2018-27786]
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66166
Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Proposed Rules
in the request—one that extends beyond
the public’s right to know about
government activity generally. The
existence of numerous articles
published on a given subject can be
helpful in establishing the requirement
that there be an ‘‘urgency to inform’’ the
public on the topic. As a matter of
administrative discretion, IMLS may
waive the formal certification
requirement.
(4) IMLS must notify the requester
within 10 calendar days of the receipt
of a request for expedited processing of
its decision whether to grant or deny
expedited processing. If expedited
processing is granted, the request must
be given priority, placed in the
processing track for expedited requests,
and must be processed as soon as
practicable. If a request for expedited
processing is denied, IMLS must act on
any appeal of that decision
expeditiously.
■ 13. Amend § 1184.5 by:
■ a. Redesignating paragraphs (c), (d),
and (e) as paragraphs (d), (e), and (f);
■ b. Adding a new paragraph (c); and
■ c. In newly redesignated paragraph (f):
■ i. Removing ‘‘FOIA Officer’’ and
adding in its place ‘‘FOIA Public
Liaison;’’ and
■ ii. Adding a sentence at the end of the
paragraph.
The additions read as follows:
§ 1184.5 How will my request be
processed?
amozie on DSK3GDR082PROD with PROPOSALS1
*
*
*
*
*
(c) Estimated dates of completion and
interim responses. Upon request, IMLS
will provide an estimated date by which
the agency expects to provide a
response to the requester. If a request
involves a voluminous amount of
material, or searches in multiple
locations, IMLS may provide interim
responses, releasing the records on a
rolling basis.
*
*
*
*
*
(f) * * * In addition, IMLS will
provide information about the
mediation services provided by the
Office of Government Information
Services of the National Archives and
Records Administration.
■ 14. Amend § 1184.6 by:
■ a. Revising paragraph (a); and
■ b. In paragraph (b), removing the term
‘‘Office of Government Services (OGIS)’’
and adding in its place ‘‘Office of
Government Information Services.’’
The revision reads as follows:
§ 1184.6 How can I appeal a denial of my
request?
(a) Submission of an appeal. If your
FOIA request has been denied in whole
or in part, or if the agency has not found
VerDate Sep<11>2014
17:37 Dec 21, 2018
Jkt 247001
any records in response to your request,
you may file an appeal no later than
ninety (90) calendar days following the
date of the notification of denial. Your
appeal must include a description of the
initial request, the reason for the appeal,
and why you believe the agency’s
response was incorrect. Your appeal
must be in writing, signed, and filed
with the IMLS Director, c/o Office of the
General Counsel, 955 L’Enfant Plaza
North SW, Suite 4000, Washington, DC
20024–2135. Appeals may also be sent
via email to foia@imls.gov, or via
facsimile to (202) 653–4625.
*
*
*
*
*
■ 15. Amend § 1184.7 by revising
paragraphs (f)(3)(ii) and (g) to read as
follows:
§ 1184.7
How will fees be charged?
*
*
*
*
*
(f) * * *
(3) * * *
(ii) When IMLS requests an advance
payment, the time limits described in
section (a)(6) of the FOIA will begin
only after IMLS has received advanced
full payment in full.
(g) Failure to comply. In the absence
of unusual or exceptional
circumstances, IMLS will not assess fees
if the agency fails to comply with any
time limit set forth in these regulations,
unless the agency has determined that
unusual circumstances apply and more
than 5,000 pages are necessary to
respond to the request.
*
*
*
*
*
■ 16. Amend § 1184.8 by revising the
second sentence of paragraph (b) to read
as follows:
§ 1184.8 How can I address concerns
regarding my request?
*
*
*
*
*
(b) * * * If you seek information
regarding OGIS and/or the services it
offers, please contact OGIS directly at
Office of Government Information
Services, National Archives and Records
Administration, 8601 Adelphi RoadOGIS, College Park, MD 20740–6001,
Email: ogis@nara.gov, Phone: (202) 741–
5770 or toll free (877) 684–6448, Fax:
(202) 741–5769. * * *
§ 1184.9
[Amended]
16. Amend § 1184.9(b)(2) by adding a
comma after ‘‘local’’.
■
Dated: December 12, 2018.
Danette Hensley,
Staff Assistant.
[FR Doc. 2018–27219 Filed 12–21–18; 8:45 am]
BILLING CODE 7036–01–P
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket ID OCC–2018–0026]
RIN 1557–AE48
Regulatory Capital Treatment for High
Volatility Commercial Real Estate
(HVCRE) Exposures
Office of the Comptroller of the
Currency, Treasury (OCC).
ACTION: Notice of proposed rulemaking;
correction.
AGENCY:
This document corrects OCC’s
Regulatory Flexibility Act certification
for the proposed rule that was published
in the Federal Register on September
28, 2018, entitled ‘‘Regulatory Capital
Treatment for High Volatility
Commercial Real Estate (HVCRE)
Exposures.’’
DATES: The proposed rule published on
September 28, 2018 at 83 FR 48990 is
corrected as of December 26, 2018.
Comments must be received by January
25, 2019.
FOR FURTHER INFORMATION CONTACT: Carl
Kaminski, Special Counsel, or Rima
Kundnani, Attorney, (202) 649–5490 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
This document supplements the
OCC’s Regulatory Flexibility Act (RFA)
certification for the notice of proposed
rulemaking entitled ‘‘Regulatory Capital
Treatment for High Volatility
Commercial Real Estate (HVCRE)
Exposures’’ (proposed rule) published
on September 28, 2018, Federal Register
Document 2018–20875 (83 FR 48990),
by the OCC, the Board of Governors of
the Federal Reserve System, and the
Federal Deposit Insurance Corporation.
The sections of this correction
document are effective as if they had
been included in the SUPPLEMENTARY
INFORMATION section of the proposed
rule.
II. Summary of Supplemental Language
The Regulatory Flexibility Act, 5
U.S.C. 601 et seq., requires an agency,
in connection with a proposed rule, to
prepare an Initial Regulatory Flexibility
Analysis describing the impact of the
rule on small entities (defined by the
SBA for purposes of the RFA to include
commercial banks and savings
institutions with total assets of $550
million or less and trust companies with
E:\FR\FM\26DEP1.SGM
26DEP1
Federal Register / Vol. 83, No. 246 / Wednesday, December 26, 2018 / Proposed Rules
total assets of $38.5 million of less) or
to certify that the proposed rule would
not have a significant economic impact
on a substantial number of small
entities.
In the OCC’s portion of the
SUPPLEMENTARY INFORMATION section
titled ‘‘Regulatory Flexibility Act
Analysis’’ of the proposed rule,
‘‘Regulatory Capital Treatment for High
Volatility Commercial Real Estate
(HVCRE) Exposures,’’ the OCC stated
that the proposal likely would impact a
substantial number of small entities.
However, the OCC determined that the
impact of the proposal would not be
economically significant. Therefore, the
OCC certified, for the purpose of the
RFA, that the proposed rule would not
have a significant economic impact on
a substantial number of OCC-supervised
small entities.
The United States Small Business
Administration, which monitors
compliance with the RFA, has asked the
OCC to provide additional detail to
support its certification. Therefore, the
OCC is revising the administrative
record to include additional
information.
Correction
amozie on DSK3GDR082PROD with PROPOSALS1
In the third column on page 48996
and the first column on page 48997,
revise the section following ‘‘B.
Regulatory Flexibility Act Analysis’’ to
read as follows:
‘‘OCC: The Regulatory Flexibility Act,
5 U.S.C. 601 et seq., (RFA), requires an
agency, in connection with a notice of
proposed rulemaking, to prepare a Final
Regulatory Flexibility Analysis
describing the impact of the proposed
rule on small entities (defined by the
Small Business Administration (SBA)
for purposes of the RFA to include
banking entities with total assets of $550
million or less) or to certify that the
proposed rule would not have a
significant economic impact on a
substantial number of small entities.
As of June 30, 2018, the OCC
supervised 886 small entities.1
Currently, 211 small OCC-supervised
institutions hold high volatility
commercial real estate (HVCRE)
exposures and thus will be directly
impacted by the proposed rule.
Therefore, the proposed rule potentially
1 The OCC calculated the number of small entities
using the SBA’s size thresholds for commercial
banks and savings institutions, and trust
companies, which are $550 million and $38.5
million, respectively. Consistent with the General
Principles of Affiliation, 13 CFR 121.103(a), the
OCC counted the assets of affiliated financial
institutions when determining whether to classify
a national bank or Federal savings association as a
small entity.
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17:37 Dec 21, 2018
Jkt 247001
affects a substantial number of small
entities.
The proposed rule would impact two
principal areas: (1) The impact
associated with implementing revisions
to the capital rule to make the definition
of an HVCRE exposure consistent with
the new statutory definition and, (2) the
impact associated with the time
required to update policies and
procedures and to re-evaluate HVCRE
loan portfolios.
As described in the SUPPLEMENTARY
INFORMATION section in the preamble to
this proposed rule, the OCC believes the
change to the definition of HVCRE
exposure would result in fewer loans
being deemed HVCRE exposures.
Therefore, the amount of capital
required would decrease for impacted
OCC-supervised entities.
Further, the OCC believes no
currently reported non-HVCRE
acquisition, development, or
construction (ADC) exposures would be
reclassified as HVCRE exposures, and
thus there would be no additional
compliance burden to OCC-supervised
entities for the non-HVCRE component
of their ADC portfolios. The proposed
rule would not require OCC-supervised
entities to amend previously filed
reports as OCC-supervised entities
adjust their estimates of existing HVCRE
exposures. This would serve to
minimize the compliance burden for
OCC-supervised entities.
Compliance burdens that OCCsupervised entities may face could
include: (1) Updating policies and
procedures to classify newly issued
HVCRE loans; and (2) time spent reevaluating existing HVCRE exposures in
order to determine if any are eligible to
be reclassified and thus receive a lower
risk-weight of 100 percent. Based on the
OCC’s supervisory experience, OCC staff
estimates that it would take an OCCsupervised institution, on average, a
one-time investment of one business
week, or 40 hours, to update policies
and procedures and to re-evaluate their
HVCRE exposures for loans originated
after January 1, 2015.
The OCC’s threshold for a significant
effect is whether cost increases
associated with a proposed rule are
greater than or equal to either 5 percent
of a small bank’s total annual salaries
and benefits or 2.5 percent of a small
bank’s total non-interest expense. The
estimated compliance costs of $4,680
per institution (40 hours × $117 per
hour) 2 would not exceed either of these
2 To estimate average hourly wages we review
data from May 2017 for wages (by industry and
occupation) from the U.S. Bureau of Labor Statistics
(BLS) for depository credit intermediation (NAICS
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
66167
thresholds for a significant impact on
any of the 886 OCC-supervised small
entities.
For this reason, the OCC certifies that
the proposed rule would not have a
significant economic impact on a
substantial number of OCC-supervised
small entities.’’
Dated: December 18, 2018.
William A. Rowe,
Chief Risk Officer.
[FR Doc. 2018–27786 Filed 12–21–18; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2016–8501; Product
Identifier 2014–SW–042–AD]
RIN 2120–AA64
Airworthiness Directives; Sikorsky
Aircraft Corporation Helicopters
Federal Aviation
Administration (FAA), DOT.
ACTION: Supplemental notice of
proposed rulemaking (SNPRM);
reopening of comment period.
AGENCY:
We are revising an earlier
proposal for Sikorsky Aircraft
Corporation (Sikorsky) Model S–92A
helicopters. This action revises the
notice of proposed rulemaking (NPRM)
by increasing the estimated costs of
compliance and removing the daily
inspection requirements. We are
proposing this airworthiness directive
(AD) to address the unsafe condition on
these products. Since these actions
would impose an additional economic
burden over that proposed in the NPRM,
we are reopening the comment period to
allow the public the chance to comment
on this change.
DATES: The comment period for the
NPRM published in the Federal
Register on July 15, 2016 (81 FR 46002),
is reopened.
We must receive comments on this
SNPRM by February 11, 2019.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
SUMMARY:
522100). To estimate compensation costs associated
with the rule, we use $117 per hour, which is based
on the average of the 90th percentile for seven
occupations adjusted for inflation, plus an
additional 34.2 percent to cover private sector
benefits.
E:\FR\FM\26DEP1.SGM
26DEP1
]]>Agencies
[Federal Register Volume 83, Number 246 (Wednesday, December 26, 2018)]
[Proposed Rules]
[Pages 66166-66167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27786]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 3
[Docket ID OCC-2018-0026]
RIN 1557-AE48
Regulatory Capital Treatment for High Volatility Commercial Real
Estate (HVCRE) Exposures
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC).
ACTION: Notice of proposed rulemaking; correction.
-----------------------------------------------------------------------
SUMMARY: This document corrects OCC's Regulatory Flexibility Act
certification for the proposed rule that was published in the Federal
Register on September 28, 2018, entitled ``Regulatory Capital Treatment
for High Volatility Commercial Real Estate (HVCRE) Exposures.''
DATES: The proposed rule published on September 28, 2018 at 83 FR 48990
is corrected as of December 26, 2018. Comments must be received by
January 25, 2019.
FOR FURTHER INFORMATION CONTACT: Carl Kaminski, Special Counsel, or
Rima Kundnani, Attorney, (202) 649-5490 or, for persons who are deaf or
hearing impaired, TTY, (202) 649-5597.
SUPPLEMENTARY INFORMATION:
I. Background
This document supplements the OCC's Regulatory Flexibility Act
(RFA) certification for the notice of proposed rulemaking entitled
``Regulatory Capital Treatment for High Volatility Commercial Real
Estate (HVCRE) Exposures'' (proposed rule) published on September 28,
2018, Federal Register Document 2018-20875 (83 FR 48990), by the OCC,
the Board of Governors of the Federal Reserve System, and the Federal
Deposit Insurance Corporation. The sections of this correction document
are effective as if they had been included in the SUPPLEMENTARY
INFORMATION section of the proposed rule.
II. Summary of Supplemental Language
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires an
agency, in connection with a proposed rule, to prepare an Initial
Regulatory Flexibility Analysis describing the impact of the rule on
small entities (defined by the SBA for purposes of the RFA to include
commercial banks and savings institutions with total assets of $550
million or less and trust companies with
[[Page 66167]]
total assets of $38.5 million of less) or to certify that the proposed
rule would not have a significant economic impact on a substantial
number of small entities.
In the OCC's portion of the SUPPLEMENTARY INFORMATION section
titled ``Regulatory Flexibility Act Analysis'' of the proposed rule,
``Regulatory Capital Treatment for High Volatility Commercial Real
Estate (HVCRE) Exposures,'' the OCC stated that the proposal likely
would impact a substantial number of small entities. However, the OCC
determined that the impact of the proposal would not be economically
significant. Therefore, the OCC certified, for the purpose of the RFA,
that the proposed rule would not have a significant economic impact on
a substantial number of OCC-supervised small entities.
The United States Small Business Administration, which monitors
compliance with the RFA, has asked the OCC to provide additional detail
to support its certification. Therefore, the OCC is revising the
administrative record to include additional information.
Correction
In the third column on page 48996 and the first column on page
48997, revise the section following ``B. Regulatory Flexibility Act
Analysis'' to read as follows:
``OCC: The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., (RFA),
requires an agency, in connection with a notice of proposed rulemaking,
to prepare a Final Regulatory Flexibility Analysis describing the
impact of the proposed rule on small entities (defined by the Small
Business Administration (SBA) for purposes of the RFA to include
banking entities with total assets of $550 million or less) or to
certify that the proposed rule would not have a significant economic
impact on a substantial number of small entities.
As of June 30, 2018, the OCC supervised 886 small entities.\1\
Currently, 211 small OCC-supervised institutions hold high volatility
commercial real estate (HVCRE) exposures and thus will be directly
impacted by the proposed rule. Therefore, the proposed rule potentially
affects a substantial number of small entities.
---------------------------------------------------------------------------
\1\ The OCC calculated the number of small entities using the
SBA's size thresholds for commercial banks and savings institutions,
and trust companies, which are $550 million and $38.5 million,
respectively. Consistent with the General Principles of Affiliation,
13 CFR 121.103(a), the OCC counted the assets of affiliated
financial institutions when determining whether to classify a
national bank or Federal savings association as a small entity.
---------------------------------------------------------------------------
The proposed rule would impact two principal areas: (1) The impact
associated with implementing revisions to the capital rule to make the
definition of an HVCRE exposure consistent with the new statutory
definition and, (2) the impact associated with the time required to
update policies and procedures and to re-evaluate HVCRE loan
portfolios.
As described in the Supplementary Information section in the
preamble to this proposed rule, the OCC believes the change to the
definition of HVCRE exposure would result in fewer loans being deemed
HVCRE exposures. Therefore, the amount of capital required would
decrease for impacted OCC-supervised entities.
Further, the OCC believes no currently reported non-HVCRE
acquisition, development, or construction (ADC) exposures would be
reclassified as HVCRE exposures, and thus there would be no additional
compliance burden to OCC-supervised entities for the non-HVCRE
component of their ADC portfolios. The proposed rule would not require
OCC-supervised entities to amend previously filed reports as OCC-
supervised entities adjust their estimates of existing HVCRE exposures.
This would serve to minimize the compliance burden for OCC-supervised
entities.
Compliance burdens that OCC-supervised entities may face could
include: (1) Updating policies and procedures to classify newly issued
HVCRE loans; and (2) time spent re-evaluating existing HVCRE exposures
in order to determine if any are eligible to be reclassified and thus
receive a lower risk-weight of 100 percent. Based on the OCC's
supervisory experience, OCC staff estimates that it would take an OCC-
supervised institution, on average, a one-time investment of one
business week, or 40 hours, to update policies and procedures and to
re-evaluate their HVCRE exposures for loans originated after January 1,
2015.
The OCC's threshold for a significant effect is whether cost
increases associated with a proposed rule are greater than or equal to
either 5 percent of a small bank's total annual salaries and benefits
or 2.5 percent of a small bank's total non-interest expense. The
estimated compliance costs of $4,680 per institution (40 hours x $117
per hour) \2\ would not exceed either of these thresholds for a
significant impact on any of the 886 OCC-supervised small entities.
---------------------------------------------------------------------------
\2\ To estimate average hourly wages we review data from May
2017 for wages (by industry and occupation) from the U.S. Bureau of
Labor Statistics (BLS) for depository credit intermediation (NAICS
522100). To estimate compensation costs associated with the rule, we
use $117 per hour, which is based on the average of the 90th
percentile for seven occupations adjusted for inflation, plus an
additional 34.2 percent to cover private sector benefits.
---------------------------------------------------------------------------
For this reason, the OCC certifies that the proposed rule would not
have a significant economic impact on a substantial number of OCC-
supervised small entities.''
Dated: December 18, 2018.
William A. Rowe,
Chief Risk Officer.
[FR Doc. 2018-27786 Filed 12-21-18; 8:45 am]
BILLING CODE 4810-33-P
