[Federal Register Volume 77, Number 250 (Monday, December 31, 2012)]
[Rules and Regulations]
[Pages 76839-76840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31311]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1003

[Docket No. CFPB-2012-0049]


Home Mortgage Disclosure (Regulation C): Adjustment To Asset-Size 
Exemption Threshold

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official commentary.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
publishing a final rule amending the official commentary that 
interprets the requirements of the Bureau's Regulation C (Home Mortgage 
Disclosure) to reflect a change in the asset-size exemption threshold 
for banks, savings associations, and credit unions based on the annual 
percentage change in the Consumer Price Index for Urban Wage Earners 
and Clerical Workers (CPI-W). The exemption threshold is adjusted to 
increase to $42 million from $41 million. The adjustment is based on 
the 2.23 percent increase in the average of the CPI-W for the 12-month 
period ending in November 2012. Therefore, banks, savings associations, 
and credit unions with assets of $42 million or less as of December 31, 
2012, are exempt from collecting data in 2013.

DATES: This final rule is effective December 31, 2012.

FOR FURTHER INFORMATION CONTACT: Joan Kayagil, Senior Counsel, Office 
of Regulations, at (202) 435-7700.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Home Mortgage Disclosure Act of 1975 (HMDA) (12 U.S.C. 2801-
2810) requires most mortgage lenders located in metropolitan areas to 
collect data about their housing-related lending activity. Annually, 
lenders must report those data to the appropriate Federal agencies and 
make the data available to the public. The Bureau's Regulation C (12 
CFR part 1003) implements HMDA.
    Prior to 1997, HMDA exempted certain depository institutions as 
defined in HMDA (i.e., banks, savings associations, and credit unions) 
with assets totaling $10 million or less as of the preceding year-end. 
In 1996, HMDA was amended to expand the asset-size exemption for these 
depository institutions. 12 U.S.C. 2808(b). The amendment increased the 
dollar amount of the asset-size exemption threshold by requiring a one-
time adjustment of the $10 million figure based on the percentage by 
which the CPI-W for 1996 exceeded the CPI-W for 1975, and it provided 
for annual adjustments thereafter based on the annual percentage 
increase in the CPI-W, rounded to the nearest multiple of $1 million 
dollars.
    The definition of ``financial institution'' in Regulation C 
provides that the Bureau will adjust the asset threshold based on the 
year-to-year change in the average of the CPI-W, not seasonally 
adjusted, for each 12-month period ending in November, rounded to the 
nearest million. 12 CFR 1003.2. For 2012, the threshold was $41 
million. During the 12-month period ending in November 2012, the CPI-W 
increased by 2.23 percent. As a result, the exemption threshold is 
increased to $42 million. Thus, banks, savings associations, and credit 
unions with assets of $42 million or less as of December 31, 2012, are 
exempt from collecting data in 2013. An institution's exemption from 
collecting data in 2013 does not affect its responsibility to report 
data it was required to collect in 2012.

II. Procedural Requirements

Administrative Procedure Act

    Under the Administrative Procedure Act (APA), notice and 
opportunity for public comment are not required if the Bureau finds 
that notice and public comment are impracticable, unnecessary, or 
contrary to the public interest. 5 U.S.C. 553(b)(B). Pursuant to this 
final rule, comment 1003.2 (Financial institution)-2 in Regulation C, 
supplement I, is amended to update the exemption threshold. The 
amendment in this final rule is technical and nondiscretionary, and it 
merely applies the formula established by Regulation C for determining 
any adjustments to the exemption threshold. For these reasons, the 
Bureau has determined that publishing a notice of proposed rulemaking 
and providing opportunity for public comment are unnecessary and the 
amendment is adopted in final form.
    Under section 553(d) of the APA, the required publication or 
service of a substantive rule shall be made not less than 30 days 
before its effective date except for certain instances, including when 
a substantive rule grants or recognizes an exemption or relieves a 
restriction. 5 U.S.C. 553(d). As this rule increases the exemption 
threshold, and is therefore a substantive rule that grants or 
recognizes an exemption or relieves a restriction, the Bureau is 
publishing this final rule less than 30 days before its effective date. 
Additionally, as it is in the public interest to make the

[[Page 76840]]

updated threshold for the asset-size exemption available publicly as 
soon as possible after all data needed for the calculation are 
available, the Bureau is making the final rule effective immediately 
upon publication in the Federal Register.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where general notice of proposed rulemaking is not required. 5 U.S.C. 
603 and 604. As noted previously, the Bureau has determined that it is 
unnecessary to publish a general notice of proposed rulemaking for this 
final rule. Accordingly the RFA's requirements relating to an initial 
and final regulatory flexibility analysis do not apply.

List of Subjects in 12 CFR Part 1003

    Banks, Banking, Credit unions, Mortgages, National banks, Savings 
associations, Reporting and recordkeeping requirements.

Authority and Issuance

    For the reasons set forth in the preamble, the Bureau of Consumer 
Financial Protection amends 12 CFR part 1003 as follows:

PART 1003--HOME MORTGAGE DISCLOSURE (REGULATION C)

0
1. The authority citation for part 1003 continues to read as follows:

    Authority:  12 U.S.C. 2803, 2804, 2805, 5512, 5581.


0
2. In Supplement I to part 1003, under Section 1003.2--Definitions, 
under the definition ``Financial institution'', paragraph 2 is revised 
to read as follows:

Supplement I to Part 1003--Staff Commentary

* * * * *

Section 1003.2--Definitions

* * * * *
    Financial institution.
* * * * *
    2. Adjustment of exemption threshold for banks, savings 
associations, and credit unions. For data collection in 2013, the 
asset-size exemption threshold is $42 million. Banks, savings 
associations, and credit unions with assets at or below $42 million 
as of December 31, 2012, are exempt from collecting data for 2013.
* * * * *

    Dated: December 21, 2012.
Richard Cordray,
Director, Consumer Financial Protection Bureau.
[FR Doc. 2012-31311 Filed 12-28-12; 8:45 am]
BILLING CODE 4810-AM-P