[Federal Register Volume 69, Number 69 (Friday, April 9, 2004)]
[Rules and Regulations]
[Pages 18808-18810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8122]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1700

RIN 2550-AA29


Organization and Functions

AGENCY: Office of Federal Housing Enterprise Oversight, HUD.

ACTION: Final rule.

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SUMMARY: The Office of Federal Housing Enterprise Oversight (OFHEO) is 
revising its regulations that describe the agency's organization and 
functions. The revisions are being made to inform the public about 
changes in the organizational structure of the agency and the 
functional responsibilities of its offices. In particular, the 
revisions include a summary of two new offices.
    In acting on these regulations, OFHEO finds that notice and public 
comment are not necessary. Section 553(b)(3)(A) of title 5, United 
States Code, provides that when regulations involve matters of agency 
organization, procedure or practice, the agency may publish regulations 
in final form. In addition, OFHEO finds, in accordance with 5 U.S.C. 
553(d), that a delayed effective date is unnecessary. Accordingly, 
these regulations are effective upon publication.

DATES: The final rule is effective April 9, 2004.

FOR FURTHER INFORMATION CONTACT: Alfred Pollard, General Counsel, 
telephone (202) 414-3800 (not a toll-free number), Office of Federal 
Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., 
Washington, DC 20552. The telephone number for the Telecommunications 
Device for the Deaf is (800) 877-8339.

SUPPLEMENTARY INFORMATION:

Discussion of the Final Regulation

    This final rule informs the public about structural and functional 
changes within OFHEO that were recently implemented by the Director. 
Changes in the agency's structure consist of the establishment of the 
``Office of Compliance'' and the ``Office of Chief Accountant''.
    The Office of Compliance works to assure that the Enterprises 
operate in compliance with applicable laws by conducting special 
reviews and examinations on focused issues that may arise at the 
enterprises or that are of concern to OFHEO. The Office also assists in 
providing information for

[[Page 18809]]

enforcement actions and other activities as requested by the Director.
    The Office of Chief Accountant provides advice to OFHEO on all 
accounting matters related to the Enterprises. The Office develops 
policies regarding accounting and financial reporting and monitors 
accounting standards that affect the Enterprises. The Office supports 
and coordinates accounting resources within the OFHEO and supports 
other offices in providing consistent accounting policy interpretation 
across OFHEO and works with external constituencies on accounting 
issues.
    To more accurately reflect the functions of various offices, name 
changes have been made and are reflected in this organization 
regulation. The Office of Examination and Oversight is renamed the 
Office of Examination, reflecting the oversight role of the new Office 
of Compliance, and the Office of Risk Analysis and Model Development is 
renamed the Office of Capital Supervision, reflecting its changed 
emphasis from development of a stress test to the broad supervision and 
analysis of enterprise capital. Other offices remain the same in name 
and description of function.

Regulatory Impact

Executive Order 12866, Regulatory Planning and Review

    This final rule is not classified as a significant rule under 
Executive Order 12866 because it will not result in (1) an annual 
effect on the economy of $100 million or more; (2) a major increase in 
costs or prices for consumers, individual industries, Federal, State, 
or local government agencies, or geographic regions; or (3) significant 
adverse effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic or foreign markets. 
Accordingly, no regulatory impact assessment is required and this final 
rule has not been submitted to the Office of Management and Budget for 
review.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
a rule that has a significant economic impact on a substantial number 
of small entities, small businesses, or small organizations must 
include an initial regulatory flexibility analysis describing the 
regulation's impact on small entities. Such an analysis need not be 
undertaken if the agency has certified that the regulation will not 
have a significant economic impact on a substantial number of small 
entities. 5 U.S.C. 605(b). OFHEO has considered the impact of this 
final rule under the Regulatory Flexibility Act. The General Counsel 
certifies that this final rule will not have a significant economic 
impact on a substantial number of small business entities.

Paperwork Reduction Act

    This final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

Unfunded Mandates Reform Act of 1995

    This final rule does not require the preparation of an assessment 
statement in accordance with the Unfunded Mandates Reform Act of 1995, 
2 U.S.C. 1531. Assessment statements are not required for regulations 
that incorporate requirements specifically set forth in law. As 
explained in the preamble, this rule implements specific statutory 
requirements. In addition, this rule does not include a Federal mandate 
that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more (adjusted annually for inflation) in any one year.

List of Subjects in 12 CFR Part 1700

    Organization and functions (Government agencies).


0
For the reasons stated in the preamble, OFHEO is amending 12 CFR part 
1700 as follows:

PART 1700--ORGANIZATION AND FUNCTIONS

0
1. The authority citation for part 1700 continues to read as follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 4513, 4526.


0
2. Section 1700.2 is amended by revising paragraphs (b) and (c) to read 
as follows:


Sec.  1700.2  Organization of the Office of Federal Housing Enterprise 
Oversight.

* * * * *
    (b) Deputy Director. The Deputy Director of OFHEO is appointed by 
the Director in accordance with the Act. In the event of the absence, 
sickness, death or resignation of the Director, the Deputy Director 
serves as acting Director until the Director's return or the 
confirmation of a successor. The Deputy Director performs such 
functions, powers and duties as the Director determines are necessary 
with respect to OFHEO's management and the development and 
implementation of OFHEO's programs and functions.
    (c) Offices and functions--(1) Office of Examination. The Office of 
Examination plans and conducts examinations of the Enterprises, as 
required by the Act, prepares and issues reports of examination 
summarizing the financial condition and management practices of each 
Enterprise, and seeks preventative and corrective actions as 
appropriate. The Office complements its on-site examination activities 
with off-site financial safety and soundness monitoring.
    (2) Office of Capital Supervision. The Office of Capital 
Supervision ensures the comprehensive evaluation and classification of 
the capital adequacy of the Enterprises, the assessment of risks that 
impact capital and the development of tools to measure such risks. The 
Office ensures the integrity of capital classifications by effectively 
producing results under the minimum and risk based capital models and 
systems and by implementing appropriate enhancements to those measures. 
The Office assesses new GSE activities under the capital regime and 
addresses changes in accounting standards. The Office supports its 
responsibilities as well as other OFHEO offices through research on 
alternative models and measurements of risk and capital adequacy.
    (3) Office of Finance and Administration. The Office of Finance and 
Administration provides support services in all areas of financial and 
administrative management of OFHEO. The Office is responsible for 
developing, managing and implementing agency policies and procedures 
governing: (i) All human resources functions, including payroll; (ii) 
support for all facility and supply requirements, including continuity 
of operations planning and testing; (iii) OFHEO contracting and 
procurement programs; and, (iv) OFHEO financial management, budgeting 
and accounting functions, including travel, internal controls and 
financial reporting.
    (4) Office of General Counsel. The Office of General Counsel 
advises the Director and OFHEO staff on all legal matters concerning 
the functions, activities, and operations of OFHEO and of the 
Enterprises under the Act. The Office is responsible for interpreting 
the Act and other applicable law, including financial institutions 
regulatory issues, securities and corporate law principles, and 
administrative and general legal matters. This Office also coordinates 
the preparation of legislation and agency

[[Page 18810]]

regulations and works with other counsels in the government.
    (5) Office of External Relations. The Office of External Relations 
is responsible for coordinating and communicating on behalf of OFHEO 
with the Congress, for monitoring relevant legislative developments, 
and for analyzing and assisting the Director in developing legislative 
proposals. The Office also is responsible for directing and 
coordinating communication with the news media and the public as well 
as participating in planning programs for OFHEO.
    (6) Office of Policy Analysis and Research. The Office of Policy 
Analysis and Research conducts policy analysis and research to assess 
the short- and long-term impact on the regulatory and supervisory 
functions of OFHEO of trends and developments in Enterprise activities, 
housing finance and financial regulation. The Office also prepares data 
series, reports and research papers; works with other OFHEO offices to 
develop policy options; and, makes recommendations to the Director on a 
broad range of policy issues.
    (7) Office of Information Technology. The Office of Information 
Technology plans, develops, secures, maintains, and assures the quality 
of the OFHEO information systems and records management functions. The 
Office is responsible for establishing and implementing policies, 
procedures and standards in the following areas: information systems 
development and procurement, office automation, records management, 
information systems security and other information technology-related 
services.
    (8) Office of Strategic Planning and Management. The Office of 
Strategic Planning and Management assists the Director in developing 
and maintaining a long term strategic plan that is consistent with the 
mission of OFHEO and facilitates efforts to ensure that the activities 
and operations of the Agency are consistent with the strategic plan. 
The Office also provides leadership in planning, managing and assessing 
OFHEO's performance, including development of OFHEO's annual 
performance plans and reports.
    (9) Office of Compliance. The Office of Compliance assists the 
Director in ensuring that the Enterprises operate in compliance with 
applicable laws, regulations and safety and soundness standards. The 
Office conducts special review and examinations on focused issues that 
may arise at the enterprises or that are of concern to OFHEO, often in 
coordination with other OFHEO offices, to assess compliance and obtain 
information. The Office also assists in providing information for 
enforcement actions and other activities as requested by the Director.
    (10) Office of Chief Accountant. The Office of Chief Accountant 
advises the Director and OFHEO staff on all accounting matters related 
to the Enterprises. The Office develops policies regarding accounting 
and financial reporting and monitors accounting standards that affect 
the Enterprises, working with the Enterprises at a policy level on 
emerging issues. The Office supports and coordinates accounting 
resources within the agency to assure the best and most efficient use 
of those resources. The Office supports other offices in providing 
consistent accounting policy interpretation across OFHEO and works with 
external constituencies on accounting issues.
* * * * *

    Dated: April 5, 2004.
Armando Falcon, Jr.,
Director, Office of Federal Housing Enterprise Oversight.
[FR Doc. 04-8122 Filed 4-8-04; 8:45 am]
BILLING CODE 4220-01-P