Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions, 3680 [2020-00929]

Download as PDF 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: khammond on DSKJM1Z7X2PROD with NOTICES 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: http:// 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 http://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.

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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\
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    \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).
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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