Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold, 513-515 [2018-28373]
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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
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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.
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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:
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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.
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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
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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
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and recordkeeping requirements,
Savings associations.
Authority and Issuance
For the reasons set forth above, the
Bureau amends Regulation C, 12 CFR
part 1003, as set forth below:
PART 1003—HOME MORTGAGE
DISCLOSURE (REGULATION C)
1. The authority citation for part 1003
continues to read as follows:
■
Authority: 12 U.S.C. 2803, 2804, 2805,
5512, 5581.
2. In supplement I to part 1003, under
Section 1003.2—Definitions, 2(g)
Financial Institution is revised to read
as follows:
■
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
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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
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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:
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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
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]]>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.
-----------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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).
---------------------------------------------------------------------------
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)
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1. The authority citation for part 1003 continues to read as follows:
Authority: 12 U.S.C. 2803, 2804, 2805, 5512, 5581.
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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
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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
