Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold, 513-515 [2018-28373]

Download as PDF 513 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations developments and assess their implications for the economic outlook. In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 21⁄4 to 21⁄2 percent. A Federal Reserve Implementation note released simultaneously with the announcement stated: The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on required and excess reserve balances to 2.40 percent, effective December 20, 2018. Setting the interest rate paid on required and excess reserve balances 10 basis points below the top of the target range for the federal funds rate is intended to foster trading in the federal funds market at rates well within the FOMC’s target range. khammond on DSKBBV9HB2PROD with RULES As a result, the Board is amending § 204.10(b)(5) of Regulation D to change IORR to 2.40 percent and IOER to 2.40 percent. III. Administrative Procedure Act In general, the Administrative Procedure Act (‘‘APA’’) 7 imposes three principal requirements when an agency promulgates legislative rules (rules made pursuant to congressionally delegated authority): (1) Publication with adequate notice of a proposed rule; (2) followed by a meaningful opportunity for the public to comment on the rule’s content; and (3) publication of the final rule not less than 30 days before its effective date. The APA provides that notice and comment procedures do not apply if the agency for good cause finds them to be ‘‘unnecessary, impracticable, or contrary to the public interest.’’ 8 Section 553(d) of the APA also provides that publication at least 30 days prior to a rule’s effective date is not required for (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) a rule for which the agency finds good cause for shortened notice and publishes its reasoning with the rule.9 The Board has determined that good cause exists for finding that the notice, public comment, and delayed effective date provisions of the APA are unnecessary, impracticable, or contrary to the public interest with respect to these final amendments to Regulation D. The rate increases for IORR and IOER that are reflected in the final amendments to Regulation D were made with a view towards accommodating commerce and business and with regard to their bearing upon the general credit U.S.C. 551 et seq. U.S.C. 553(b)(3)(A). 9 5 U.S.C. 553(d). situation of the country. Notice and public comment would prevent the Board’s action from being effective as promptly as necessary in the public interest and would not otherwise serve any useful purpose. Notice, public comment, and a delayed effective date would create uncertainty about the finality and effectiveness of the Board’s action and undermine the effectiveness of that action. Accordingly, the Board has determined that good cause exists to dispense with the notice, public comment, and delayed effective date procedures of the APA with respect to these final amendments to Regulation D. IV. Regulatory Flexibility Analysis The Regulatory Flexibility Act (‘‘RFA’’) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.10 As noted previously, the Board has determined that it is unnecessary and contrary to the public interest to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA’s requirements relating to an initial and final regulatory flexibility analysis do not apply. In accordance with the Paperwork Reduction Act (‘‘PRA’’) of 1995,11 the Board reviewed the final rule under the authority delegated to the Board by the Office of Management and Budget. The final rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Board amends 12 CFR part 204 as follows: PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: ■ Authority: 12 U.S.C. 248(a), 248(c), 461, 601, 611, and 3105. 2. Section 204.10 is amended by revising paragraph (b)(5) to read as follows: ■ * 10 5 85 11 44 VerDate Sep<11>2014 16:41 Jan 30, 2019 Payment of interest on balances. * * * * (b) * * * (5) The rates for IORR and IOER are: 75 U.S.C. 603, 604. U.S.C. 3506; see 5 CFR part 1320, appendix A.1. Jkt 247001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 IORR ..................................... IOER ..................................... * * * * 2.40 2.40 * By order of the Board of Governors of the Federal Reserve System, December 20, 2018. Ann Misback, Secretary of the Board. [FR Doc. 2018–28424 Filed 1–30–19; 8:45 am] BILLING CODE 6210–01–P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1003 RIN 3170–AA92 Home Mortgage Disclosure (Regulation C) Adjustment to AssetSize Exemption Threshold Bureau of Consumer Financial Protection. AGENCY: ACTION: V. Paperwork Reduction Act § 204.10 Rate (percent) Final rule; official commentary. The Bureau of Consumer Financial Protection (Bureau) is 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 2.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $46 million from $45 million. Therefore, banks, savings associations, and credit unions with assets of $46 million or less as of December 31, 2018, are exempt from collecting data in 2019. SUMMARY: Effective date: This rule is effective January 31, 2019. Applicability date: This rule is applicable on January 1, 2019, consistent with relevant statutory or regulatory provisions. DATES: FOR FURTHER INFORMATION CONTACT: Monique Chenault, Paralegal Specialist, Office of Regulations, at (202) 435–7700. If you require this document in an alternative electronic format, please contact CFPB_Accessibility@cfpb.gov. SUPPLEMENTARY INFORMATION: E:\FR\FM\31JAR1.SGM 31JAR1 514 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations I. Background The Home Mortgage Disclosure Act of 1975 (HMDA) 1 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 2 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.3 The amendment increased the dollar amount of the asset-size exemption threshold by requiring a onetime 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 2018, the threshold was $45 million. During the 12-month period ending in November 2018, the average of the CPI–W increased by 2.6 percent. As a result, the exemption threshold is increased to $46 million for 2019. Thus, banks, savings associations, and credit unions with assets of $46 million or less as of December 31, 2018, are exempt from collecting data in 2019. An institution’s exemption from collecting data in 2019 does not affect its responsibility to report data it was required to collect in 2018. khammond 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.4 Pursuant to this final rule, comment 2(g)–2 in Regulation C, supplement I, is amended to update the U.S.C. 2801–2810. CFR part 1003. 3 12 U.S.C. 2808(b). 4 5 U.S.C. 553(b)(B). exemption threshold. The amendment in this final rule is technical and nondiscretionary, 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 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 31, 2019. The amendment in this final rule is technical and nondiscretionary, 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.6 C. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 7, 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.), the Bureau will submit a report containing this rule and other required information to the United States Senate, the United States 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 1 12 2 12 VerDate Sep<11>2014 16:41 Jan 30, 2019 55 U.S.C. 553(d). U.S.C. 603(a), 604(a). 7 44 U.S.C. 3506; 5 CFR part 1320. 65 Jkt 247001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 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: ■ 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 § 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 2019, the assetsize exemption threshold is $46 million. Banks, savings associations, and credit unions with assets at or below $46 million as of December 31, 2018, are exempt from collecting data for 2019. 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 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 E:\FR\FM\31JAR1.SGM 31JAR1 khammond on DSKBBV9HB2PROD with RULES Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 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. 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 VerDate Sep<11>2014 16:41 Jan 30, 2019 Jkt 247001 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 openend 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 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 § 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 § 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). * * * * * Dated: December 20, 2018. Kathleen Kraninger, Director, Bureau of Consumer Financial Protection. [FR Doc. 2018–28373 Filed 1–29–19; 8:45 am] BILLING CODE 4810–AM–P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1022 RIN 3170–AA94 Fair Credit Reporting Act Disclosures Bureau of Consumer Financial Protection. ACTION: Final rule. AGENCY: The Bureau of Consumer Financial Protection (Bureau) is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), to add a section establishing a maximum allowable charge for disclosures by a consumer reporting agency to a consumer SUMMARY: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 515 pursuant to FCRA section 609. The Bureau is also amending Regulation V to add an appendix setting forth the statutory requirements for determining the maximum allowable charge; announcing the maximum charge for 2019; and preserving a list of historical maximum allowable charges. Historically, the Bureau has published these FCRA annual adjustments as a notice. The Bureau is now codifying those notices and adding a provision to Regulation V to track the FCRA’s provisions concerning the annual maximum allowable charge. DATES: Effective date: This rule is effective January 31, 2019. Applicability date: This rule is applicable on January 1, 2019, consistent with relevant statutory provisions. FOR FURTHER INFORMATION CONTACT: Seth Caffrey, Senior Counsel; or Monique Chenault, Paralegal Specialist at (202) 435–7700 or https:// reginquiries.consumerfinance.gov. If you require this document in an alternative electronic format, please contact CFPB_Accessibility@cfpb.gov. SUPPLEMENTARY INFORMATION: I. Background Under section 609 of the FCRA, a consumer reporting agency must, upon a consumer’s request, disclose to the consumer information in the consumer’s file.1 Section 612(a) of the FCRA gives consumers the right to a free file disclosure upon request once every 12 months from the nationwide consumer reporting agencies and nationwide specialty consumer reporting agencies.2 Section 612 of the FCRA also gives consumers the right to a free file disclosure under certain other, specified circumstances.3 Where the consumer is not entitled to a free file disclosure, section 612(f)(1)(A) of the FCRA provides that a consumer reporting agency may impose a reasonable charge on a consumer for making a file disclosure. Section 612(f)(1)(A) of the FCRA provides that the charge for such a disclosure shall not exceed $8.00 and shall be indicated to the consumer before making the file disclosure.4 Section 612(f)(2) of the FCRA also states that the $8.00 maximum amount shall increase on January 1 of each year, 1 15 U.S.C. 1681g. U.S.C. 1681j(a). 3 15 U.S.C. 1681j(b)–(d). The maximum allowable charge announced by the Bureau does not apply to requests made under Section 612(a)–(d) of the FCRA. The charge does apply when a consumer who orders a file disclosure has already received a free annual file disclosure and does not otherwise qualify for an additional free file disclosure. 4 15 U.S.C. 1681j(f)(1)(A). 2 15 E:\FR\FM\31JAR1.SGM 31JAR1

Agencies

[Federal Register Volume 84, Number 21 (Thursday, January 31, 2019)]
[Rules and Regulations]
[Pages 513-515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28373]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1003

RIN 3170-AA92


Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size 
Exemption Threshold

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official commentary.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
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 2.6 percent increase in the average of the CPI-W 
for the 12-month period ending in November 2018, the exemption 
threshold is adjusted to increase to $46 million from $45 million. 
Therefore, banks, savings associations, and credit unions with assets 
of $46 million or less as of December 31, 2018, are exempt from 
collecting data in 2019.

DATES: Effective date: This rule is effective January 31, 2019.
    Applicability date: This rule is applicable on January 1, 2019, 
consistent with relevant statutory or regulatory provisions.

FOR FURTHER INFORMATION CONTACT: Monique Chenault, Paralegal 
Specialist, Office of Regulations, at (202) 435-7700. If you require 
this document in an alternative electronic format, please contact 
CFPB_Accessibility@cfpb.gov.

SUPPLEMENTARY INFORMATION:

[[Page 514]]

I. Background

    The Home Mortgage Disclosure Act of 1975 (HMDA) \1\ 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 \2\ implements HMDA.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 2801-2810.
    \2\ 12 CFR part 1003.
---------------------------------------------------------------------------

    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.\3\ 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.
---------------------------------------------------------------------------

    \3\ 12 U.S.C. 2808(b).
---------------------------------------------------------------------------

    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 2018, the threshold was $45 million. During the 
12-month period ending in November 2018, the average of the CPI-W 
increased by 2.6 percent. As a result, the exemption threshold is 
increased to $46 million for 2019. Thus, banks, savings associations, 
and credit unions with assets of $46 million or less as of December 31, 
2018, are exempt from collecting data in 2019. An institution's 
exemption from collecting data in 2019 does not affect its 
responsibility to report data it was required to collect in 2018.

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.\4\ 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.
---------------------------------------------------------------------------

    \4\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    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\ 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 31, 
2019. 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.
---------------------------------------------------------------------------

    \5\ 5 U.S.C. 553(d).
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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.\6\
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 603(a), 604(a).
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C. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 \7\, the 
agency reviewed this final rule. No collections of information pursuant 
to the Paperwork Reduction Act are contained in the final rule.
---------------------------------------------------------------------------

    \7\ 44 U.S.C. 3506; 5 CFR part 1320.
---------------------------------------------------------------------------

D. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Bureau will submit a report containing this rule and other required 
information to the United States Senate, the United States 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 2019, the 
asset-size exemption threshold is $46 million. Banks, savings 
associations, and credit unions with assets at or below $46 million 
as of December 31, 2018, are exempt from collecting data for 2019.
    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 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

[[Page 515]]

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 20, 2018.
Kathleen Kraninger,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2018-28373 Filed 1-29-19; 8:45 am]
 BILLING CODE 4810-AM-P