Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions, 3680 [2020-00929]
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3680
Federal Register / Vol. 85, No. 14 / Wednesday, January 22, 2020 / Notices
FEDERAL HOUSING FINANCE
AGENCY
over 2018, based upon the increase in
the CPI–U between 2018 and 2019.4
[No. 2020–N–4]
II. The CFI Asset Cap for 2020
Notice of Annual Adjustment of the
Cap on Average Total Assets That
Defines Community Financial
Institutions
As of January 1, 2020, FHFA has
increased the CFI asset cap to
$1,224,000,000, which reflects a 2.1
percent increase in the unadjusted CPI–
U from November 2018 to November
2019. Consistent with the practice of
other Federal agencies, FHFA bases the
annual adjustment to the CFI asset cap
on the percentage increase in the CPI–
U from November of the year prior to
the preceding calendar year to
November of the preceding calendar
year, because the November figures
represent the most recent available data
as of January 1st of the current calendar
year. The new CFI asset cap was
obtained by applying the percentage
increase in the CPI–U to the unrounded
amount for the preceding year and
rounding to the nearest million, as has
been FHFA’s practice for all previous
adjustments.
In calculating the CFI asset cap, FHFA
uses CPI–U data that have not been
seasonally adjusted (i.e., the data have
not been adjusted to remove the
estimated effect of price changes that
normally occur at the same time and in
about the same magnitude every year).
The DOL encourages use of unadjusted
CPI–U data in applying ‘‘escalation’’
provisions such as that governing the
CFI asset cap, because the factors that
are used to seasonally adjust the data
are amended annually, and seasonally
adjusted data that are published earlier
are subject to revision for up to five
years following their original release.
Unadjusted data are not routinely
subject to revision, and previously
published unadjusted data are only
corrected when significant calculation
errors are discovered.
Federal Housing Finance
Agency.
ACTION: Notice.
AGENCY:
The Federal Housing Finance
Agency (FHFA) has adjusted the cap on
average total assets that is used in
determining whether a Federal Home
Loan Bank (Bank) member qualifies as
a ‘‘community financial institution’’
(CFI) to $1,224,000,000, based on the
annual percentage increase in the
Consumer Price Index for all urban
consumers (CPI–U), as published by the
Department of Labor (DOL). These
changes took effect on January 1, 2020.
FOR FURTHER INFORMATION CONTACT:
James Hedrick, Division of Federal
Home Loan Bank Regulation, (202) 649–
3319, James.Hedrick@fhfa.gov; or Eric
M. Raudenbush, Associate General
Counsel, (202) 649–3084,
Eric.Raudenbush@fhfa.gov, (not toll-free
numbers), Federal Housing Finance
Agency, Constitution Center, 400
Seventh Street SW, Washington, DC
20219. The Telecommunications Device
for the Deaf is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Statutory and Regulatory Background
The Federal Home Loan Bank Act
(Bank Act) confers upon insured
depository institutions that meet the
statutory definition of a CFI certain
advantages over non-CFI insured
depository institutions in qualifying for
Bank membership, and in the purposes
for which they may receive long-term
advances and the collateral they may
pledge to secure advances.1 Section
2(10)(A) of the Bank Act and § 1263.1 of
FHFA’s regulations define a CFI as any
Bank member the deposits of which are
insured by the Federal Deposit
Insurance Corporation and that has
average total assets below the statutory
cap.2 The Bank Act was amended in
2008 to set the statutory cap at $1
billion and to require FHFA to adjust
the cap annually to reflect the
percentage increase in the CPI–U, as
published by the DOL.3 For 2019, FHFA
set the CFI asset cap at $1,199,000,000,
which reflected a 2.2 percent increase
1 See
12 U.S.C. 1424(a), 1430(a).
2 See 12 U.S.C. 1422(10)(A); 12 CFR 1263.1.
3 See 12 U.S.C. 1422(10)(B); 12 CFR 1263.1
(defining the term CFI asset cap).
VerDate Sep<11>2014
16:42 Jan 21, 2020
Jkt 250001
Dated: January 14, 2020.
Andre D. Galeano,
Deputy Director, Division of Federal Home
Loan Bank Regulation, Federal Housing
Finance Agency.
[FR Doc. 2020–00929 Filed 1–21–20; 8:45 am]
BILLING CODE 8070–01–P
FEDERAL HOUSING FINANCE
AGENCY
[No. 2020–N–3]
Proposed Collection; Comment
Request
AGENCY:
Federal Housing Finance
Agency.
4 See
PO 00000
84 FR 2225 (Feb. 6, 2019).
Frm 00077
Fmt 4703
Sfmt 4703
60-Day notice of submission of
information collection for approval from
Office of Management and Budget.
ACTION:
In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (PRA), the
Federal Housing Finance Agency
(FHFA) is seeking public comments
concerning an information collection
known as ‘‘Community Support
Requirements,’’ which has been
assigned control number 2590–0005 by
the Office of Management and Budget
(OMB). FHFA intends to submit the
information collection to OMB for
review and approval of a three-year
extension of the control number, which
is due to expire on March 31, 2020.
DATES: Interested persons may submit
comments on or before March 23, 2020.
ADDRESSES: Submit comments to FHFA,
identified by ‘‘Proposed Collection;
Comment Request: ‘Community Support
Requirements, (No. 2020–N–3)’ ’’ by any
of the following methods:
• Agency website: www.fhfa.gov/
open-for-comment-or-input.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments. If
you submit your comment to the
Federal eRulemaking Portal, please also
send it by email to FHFA at
RegComments@fhfa.gov to ensure
timely receipt by the agency.
• Mail/Hand Delivery: Federal
Housing Finance Agency, Eighth Floor,
400 Seventh Street SW, Washington, DC
20219, ATTENTION: Proposed
Collection; Comment Request:
‘‘Community Support Requirements,
(No. 2020–N–3).’’
We will post all public comments we
receive without change, including any
personal information you provide, such
as your name and address, email
address, and telephone number, on the
FHFA website at https://www.fhfa.gov. In
addition, copies of all comments
received will be available for
examination by the public through the
electronic comment docket for this PRA
Notice also located on the FHFA
website.
FOR FURTHER INFORMATION CONTACT:
Deattra D. Perkins, Senior Policy
Analyst, Division of Housing Mission &
Goals, Deattra.Perkins@fhfa.gov, (202)
649–3133; or Eric Raudenbush,
Associate General Counsel,
Eric.Raudenbush@fhfa.gov, (202) 649–
3084, (these are not toll-free numbers),
Federal Housing Finance Agency, 400
Seventh Street SW, Washington, DC
20219. The Telecommunications Device
for the Deaf is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
SUMMARY:
E:\FR\FM\22JAN1.SGM
22JAN1
Agencies
[Federal Register Volume 85, Number 14 (Wednesday, January 22, 2020)]
[Notices]
[Page 3680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00929]
[[Page 3680]]
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FEDERAL HOUSING FINANCE AGENCY
[No. 2020-N-4]
Notice of Annual Adjustment of the Cap on Average Total Assets
That Defines Community Financial Institutions
AGENCY: Federal Housing Finance Agency.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Federal Housing Finance Agency (FHFA) has adjusted the cap
on average total assets that is used in determining whether a Federal
Home Loan Bank (Bank) member qualifies as a ``community financial
institution'' (CFI) to $1,224,000,000, based on the annual percentage
increase in the Consumer Price Index for all urban consumers (CPI-U),
as published by the Department of Labor (DOL). These changes took
effect on January 1, 2020.
FOR FURTHER INFORMATION CONTACT: James Hedrick, Division of Federal
Home Loan Bank Regulation, (202) 649-3319, [email protected]; or
Eric M. Raudenbush, Associate General Counsel, (202) 649-3084,
[email protected], (not toll-free numbers), Federal Housing
Finance Agency, Constitution Center, 400 Seventh Street SW, Washington,
DC 20219. The Telecommunications Device for the Deaf is (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Background
The Federal Home Loan Bank Act (Bank Act) confers upon insured
depository institutions that meet the statutory definition of a CFI
certain advantages over non-CFI insured depository institutions in
qualifying for Bank membership, and in the purposes for which they may
receive long-term advances and the collateral they may pledge to secure
advances.\1\ Section 2(10)(A) of the Bank Act and Sec. 1263.1 of
FHFA's regulations define a CFI as any Bank member the deposits of
which are insured by the Federal Deposit Insurance Corporation and that
has average total assets below the statutory cap.\2\ The Bank Act was
amended in 2008 to set the statutory cap at $1 billion and to require
FHFA to adjust the cap annually to reflect the percentage increase in
the CPI-U, as published by the DOL.\3\ For 2019, FHFA set the CFI asset
cap at $1,199,000,000, which reflected a 2.2 percent increase over
2018, based upon the increase in the CPI-U between 2018 and 2019.\4\
---------------------------------------------------------------------------
\1\ See 12 U.S.C. 1424(a), 1430(a).
\2\ See 12 U.S.C. 1422(10)(A); 12 CFR 1263.1.
\3\ See 12 U.S.C. 1422(10)(B); 12 CFR 1263.1 (defining the term
CFI asset cap).
\4\ See 84 FR 2225 (Feb. 6, 2019).
---------------------------------------------------------------------------
II. The CFI Asset Cap for 2020
As of January 1, 2020, FHFA has increased the CFI asset cap to
$1,224,000,000, which reflects a 2.1 percent increase in the unadjusted
CPI-U from November 2018 to November 2019. Consistent with the practice
of other Federal agencies, FHFA bases the annual adjustment to the CFI
asset cap on the percentage increase in the CPI-U from November of the
year prior to the preceding calendar year to November of the preceding
calendar year, because the November figures represent the most recent
available data as of January 1st of the current calendar year. The new
CFI asset cap was obtained by applying the percentage increase in the
CPI-U to the unrounded amount for the preceding year and rounding to
the nearest million, as has been FHFA's practice for all previous
adjustments.
In calculating the CFI asset cap, FHFA uses CPI-U data that have
not been seasonally adjusted (i.e., the data have not been adjusted to
remove the estimated effect of price changes that normally occur at the
same time and in about the same magnitude every year). The DOL
encourages use of unadjusted CPI-U data in applying ``escalation''
provisions such as that governing the CFI asset cap, because the
factors that are used to seasonally adjust the data are amended
annually, and seasonally adjusted data that are published earlier are
subject to revision for up to five years following their original
release. Unadjusted data are not routinely subject to revision, and
previously published unadjusted data are only corrected when
significant calculation errors are discovered.
Dated: January 14, 2020.
Andre D. Galeano,
Deputy Director, Division of Federal Home Loan Bank Regulation, Federal
Housing Finance Agency.
[FR Doc. 2020-00929 Filed 1-21-20; 8:45 am]
BILLING CODE 8070-01-P