[Federal Register Volume 60, Number 184 (Friday, September 22, 1995)]
[Rules and Regulations]
[Pages 49198-49199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23391]



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FEDERAL HOUSING FINANCE BOARD

12 CFR Parts 900 and 922

[No. 95-23]


Revision of Board of Directors Reporting Requirements

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Board is amending its regulation 
on Board of Directors Responsibilities and Conduct to eliminate the 
required submission of Form FB-1, the Personal Certification and 
Disclosure Form, and the certification and disclosure requirements 
applicable to the four Federal Housing Finance Board Directors 
appointed by the President upon appointment and annually thereafter, in 
order to avoid duplicative and burdensome reporting requirements.

EFFECTIVE DATE: This final rule is effective on September 22, 1995.

FOR FURTHER INFORMATION CONTACT: David A. Guy, Associate General 
Counsel, Office of General Counsel, (202) 408-2536, Federal Housing 
Finance Board, 1777 F Street, N.W., Washington, D.C. 20006.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

    As a result of an ongoing internal review of its regulations, the 
Federal Housing Finance Board (Board) has identified the certification 
and disclosure requirements applicable to the four Board Directors 
appointed by the President, by and with the advice of the Senate 
(appointed Board Directors), see 12 U.S.C. 1422a(b)(1)(B), upon 
appointment and annually thereafter, see 12 CFR 922.6(a), (c), and the 
use of Form FB-1, see id. Secs. 922.7, 900.51, as unnecessarily 
burdensome and duplicative. Accordingly, the Board intends to eliminate 
Form FB-1 and the certification and disclosure requirements.
    Currently, under Sec. 922.6 of the Board's regulations, each 
appointed Board Director, upon appointment and annually thereafter, 
must certify in writing to the Board's designated agency ethics 
official (DAEO) on Form FB-1, that he or she meets all of the 
requirements for appointment mandated by the Federal Home Loan Bank Act 
(Bank Act) and part 922, and, further, must disclose in writing to the 
DAEO on Form FB-1, certain financial relationships with any member of 
any Federal Home Loan Bank (FHLBank). See id. Sec. 922.6(a), (c).
    Both the Bank Act and part 922 of the Board's regulations require 
that appointed Board Directors be citizens of the United States, see 12 
U.S.C. 1422a(b)(1)(B), 12 CFR 922.2(a), and prohibit appointed Board 
Directors from serving as a director or officer of any FHLBank or any 
member of any FHLBank, or holding shares of, or any other financial 
interest in, any member of any FHLBank. See 12 U.S.C. 1422a(b)(2)(C), 
12 CFR 922.3. In addition to the duty of an appointed Board Director to 
comply with the law, Part 922 imposes on each appointed Board Director 
an affirmative obligation to obey the regulations and policies 
established by the Board. See 12 CFR 922.2(b). The additional 
requirement that appointed Board Directors certify their compliance 
with the mandatory conditions for appointment is unnecessarily 
burdensome.
    The financial disclosures required of appointed Board Directors 
under part 922 also are unnecessarily burdensome and duplicative. Under 
the Ethics in Government Act of 1978, as amended, 5 U.S.C. App. 101, et 
seq., and the implementing regulations promulgated by the Office of 
Government Ethics (OGE), 5 CFR Part 2634, appointed Board Directors 
already are required to disclose, as a part of the Senate confirmation 
process and annually thereafter in writing to the DAEO and the OGE, 
detailed information regarding their financial interests, including the 
information required to be reported to the DAEO on Form FB-1. See 5 
U.S.C. App. 101(c), 5 CFR 2634.201, 2634.202. In fact, the financial 
disclosures required by the OGE are more exacting than the financial 
disclosures required under part 922.
    Part 922 also requires that, if an appointed Board Director knows 
or suspects at any time that he or she does not meet any of the 
statutory or regulatory requirements for appointment, he or she must 
report the specific factual basis for noncompliance to the DAEO in 
writing on Form FB-1 within 30 days of the date noncompliance did or 
may have occurred. See 12 CFR 922.6(b). Because contemporaneous 
disclosure of known or suspected noncompliance is not otherwise 
required, the Board will retain this written disclosure requirement, 
although it will no longer require that appointed Board Directors 
report the noncompliance on Form FB-1. Further, the phrase ``suspected 
noncompliance'' is being substituted for the phrase ``should have known 
of the noncompliance'' in 12 CFR 922.6(b) because it forms a more 
reasonable basis for a report of this kind.

II. Analysis of the Final Rule

    Since the certification and disclosure requirements applicable to 
appointed Board Directors upon appointment and annually thereafter, and 
the use of Form FB-1 currently required by Sec.  922.6(a) and (c), and 
Sec. 922.7 of the Board's regulations, are unnecessarily burdensome and 
duplicative for the reasons stated in part I of the Supplementary 
Information, repeal of these sections is appropriate. 

[[Page 49199]]

    Repeal of these provisions of parts 900 and 922 also will be 
consistent with the goal of the Vice President's National Performance 
Review to reduce the total number of regulations of executive agencies. 
See Report of the National Performance Review 32-33 (Sept. 17, 1993); 
E.O. 12861, 58 FR 48255 (Sept. 11, 1993).
    For the foregoing reasons, the Board has decided to repeal 
Sec. 922.6(a) and (c) and Sec. 922.7, and to amend Sec. 922.6(b) and 
Sec. 900.51 of its regulations, pursuant to its general rulemaking 
authority under section 2B(a)(1) of the Bank Act. See 12 U.S.C. 
1422b(a)(1).

III. Notice and Public Participation

    Publication of notice of proposed rulemaking is not required by the 
Administrative Procedure Act (APA), 5 U.S.C. 551 et seq., because the 
Board, for good cause, finds that the notice and comment procedure is 
unnecessary and contrary to the public interest in this instance. See 
id. Sec. 553(b)(3)(B). Compliance with the public notice and comment 
procedure requirement of APA section 553 is unnecessary because the 
final rule makes only minor changes to the disclosure requirements 
imposed on appointed Board Directors, repeals provisions of the Board's 
regulations that have no effect on the public, and eliminates 
unnecessarily burdensome and duplicative regulations.

IV. Effective Date

    For the reasons stated in part III of the Supplementary 
Information, the Board finds that, under APA section 553(d)(3), there 
is good cause for the final rule to become effective upon publication.

V. Regulatory Flexibility Act

    The Board is adopting the changes to parts 900 and 922 in the form 
of a final rule and not as a proposed rule. Therefore, the provisions 
of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., do not apply. 
See id. Secs. 601(2), 603(a).

List of Subjects

12 CFR Part 900

    Organizations and functions (Government agencies).

12 CFR Part 922

    Conflict of interests.

    Accordingly, Chapter IX, Title 12, parts 900 and 922, Code of 
Federal Regulations, are hereby amended as follows:

PART 900--DESCRIPTION OF ORGANIZATION AND FUNCTIONS

    1. The authority citation for part 900 is revised to read as 
follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 1422b(a).

    2. Section 900.51 is revised to read as follows:


Sec. 900.51  Forms.

    The following forms are available at the Finance Board headquarters 
facility (see Sec. 900.3) and shall be used for the purpose indicated:

Form

10-91--Monthly Survey of Rates and Terms on Conventional 1 Family 
Nonfarm Mortgage Loans.
9102--Certificate of Nomination, Election of Federal Home Loan Bank 
Directors.
9103--Election Ballot, Election of Federal Home Loan Bank Directors.
A-1--Appointive Director Candidates--Personal Certification and 
Disclosure Form.
A-2--Appointive Directors--Personal Certification and Disclosure 
Form.
E-1--Elective Director Nominees--Personal Certification and 
Disclosure Form.
E-2--Elective Directors--Personal Certification and Disclosure Form.
90-T04--Local Travel Claim.-

PART 922--BOARD OF DIRECTORS AND EMPLOYEES RESPONSIBILITIES AND 
CONDUCT

    1. The authority citation for part 922 continues to read as 
follows:

    Authority: 12 U.S.C. 1422a, 1422b.

    2. Section 922.6 is revised to read as follows:


Sec. 922.6  Duty to report.

    If an appointed Board director knows or suspects at any time that 
he or she does not meet any of the requirements for appointment set 
forth in sections 2A(b)(1)(B) and 2A(b)(2)(C) of the Act or this part, 
the appointed Board director shall report the specific factual basis 
for the known or suspected noncompliance in writing to the Board's 
designated agency ethics official within 30 days of the date 
noncompliance did or may have occurred.


Sec. 922.7  [Removed]

    3. Section 922.7 is removed.

    Dated: September 14, 1995.

    By the Federal Housing Finance Board.
Bruce A. Morrison,
Chairman.
[FR Doc. 95-23391 Filed 9-21-95; 8:45 am]
BILLING CODE 6725-01-U