[Federal Register Volume 76, Number 60 (Tuesday, March 29, 2011)]
[Rules and Regulations]
[Pages 17331-17332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7341]



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 Rules and Regulations
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  Federal Register / Vol. 76, No. 60 / Tuesday, March 29, 2011 / Rules 
and Regulations  

[[Page 17331]]



FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1208

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1704

RIN 2590-AA15


Debt Collection

AGENCY: Federal Housing Finance Agency; Office of Federal Housing 
Enterprise Oversight.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Agency (FHFA) publishes this final 
rule to adopt, without change, the interim final rule that was 
published in the Federal Register on November 10, 2010, setting forth 
procedures for use by FHFA in collecting debts owed to the Federal 
Government. The final rule implements the requirements of the Federal 
Claims Collection Act and the Debt Collection Improvement Act of 1996, 
and includes procedures for collection of debts through salary offset, 
administrative offset, tax refund offset, and administrative wage 
garnishment.

DATES: The final rule is effective on March 29, 2011.

FOR FURTHER INFORMATION CONTACT: Andra Grossman, Senior Counsel, 
telephone (202) 343-1313 or Gail F. Baum, Associate General Counsel, 
telephone (202) 343-1508 (not toll-free numbers); Federal Housing 
Finance Agency, 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: 

A. Debt Collection

    On November 10, 2010, FHFA published an interim final rule in the 
Federal Register at 75 FR 68956. This final rule adopts, without 
change, that interim final rule that set forth procedures for use by 
FHFA in collecting debts owed to the Federal Government. The final rule 
implements the requirements of the Federal Claims Collection Act \1\ 
and the Debt Collection Improvement Act of 1996 (DCIA).\2\ The DCIA 
requires agencies to either (1) adopt without change regulations on 
collecting debts by administrative offset promulgated by the Department 
of Justice or Department of the Treasury; or (2) prescribe agency 
regulations for collecting such debts by administrative offset, which 
are consistent with the Federal Claims Collection Standards (FCCS).\3\ 
The agency regulations are to protect the minimum due process rights 
that must be afforded to a debtor when an agency seeks to collect a 
debt, including the ability to verify, challenge, and compromise 
claims, and provide access to administrative appeals procedures which 
are both reasonable and protect the interests of the United States. 
FHFA issued its own agency regulations for debt collection, to account 
for FHFA's status as an independent regulatory agency, and for ease of 
use. The final rule is consistent with the FCCS, as required by the 
DCIA. In addition, the tax refund offset provisions of the regulations 
satisfy the requirement of the Internal Revenue Service (IRS) that FHFA 
adopt agency regulations authorizing its collection of debts by 
administrative offset in general and tax refund offset in 
particular.\4\ The administrative wage garnishment provisions of the 
regulations satisfy the requirement in 31 CFR 285.11(f) that FHFA adopt 
regulations for the conduct of administrative wage garnishment 
hearings.
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    \1\ Public Law 89-508, 80 Stat. 308 (1966), as amended by the 
Debt Collection Act of 1982, Public Law 97-365, 96 Stat. 1749 
(1982).
    \2\ Public Law 104-134, 110 Stat. 1321 (1996).
    \3\ 31 U.S.C. 3716.
    \4\ 31 U.S.C. 3720A(b)(4); 26 CFR 301.6402-6(b);31 CFR 285.2(c).
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B. Effective Date

    This final rule, without change, affirms the establishment of 12 
CFR part 1208 and removal of 12 CFR part 1704 by the interim final rule 
that is already in effect. FHFA determined that the interim final rule 
pertains to agency practice and procedure and is interpretative in 
nature. The procedures contained in the interim final rule for salary 
offset, administrative offset, tax refund offset, and administrative 
wage garnishment are mandated by law and by regulations promulgated by 
the Office of Personnel Management, jointly by the Department of the 
Treasury and the Department of Justice, and by the IRS. FHFA determined 
that the interim final rule was not subject to the Administrative 
Procedure Act (APA) and the requirements of the APA for a notice and 
comment period and for a delayed effective date.\5\ While the interim 
final rule became effective on November 10, 2010, FHFA provided a 60-
day comment period that ended on January 10, 2011. FHFA did not receive 
any comments. Based on the rationale set forth in the interim final 
rule, FHFA adopts the provisions of the interim final rule as a final 
rule without any changes.
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    \5\ 5 U.S.C. 553(b), (c) and(d)(3).
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Regulatory Impact

Paperwork Reduction Act

    The final rule does not contain any information collection 
requirement that requires the approval of the Office of Management and 
Budget under the Paperwork Reduction Act.\6\
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    \6\ 44 U.S.C. 3501 et seq.
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Regulatory Flexibility Act

    The Regulatory Flexibility Act requires that a regulation 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.\7\ 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.\8\ FHFA has considered the impact of the final rule under the 
Regulatory Flexibility Act. FHFA certifies that the final rule is not 
likely to have a significant economic impact on a substantial number of 
small business entities because the rule applies

[[Page 17332]]

primarily to Federal employees and a limited number of Federal and 
business entities.\9\
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    \7\ 5 U.S.C. 601 et seq.
    \8\ 5 U.S.C. 605(b).
    \9\ Id.
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List of Subjects

12 CFR Part 1208

    Administrative practice and procedure, Claims, Debt collection, 
Government employees, Wages.

12 CFR Part 1704

    Administrative practice and procedure, Debt collection.

PART 1208--DEBT COLLECTION

PART 1704--[REMOVED]

Authority and Issuance

    Accordingly, the interim final rule establishing 12 CFR part 1208 
and removing 12 CFR part 1704 that was published in the Federal 
Register at 75 FR 68956 on November 10, 2010, is adopted as a final 
rule without change.

    Dated: March 18, 2011.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2011-7341 Filed 3-28-11; 8:45 am]
BILLING CODE 8070-01-P