[Federal Register Volume 78, Number 250 (Monday, December 30, 2013)]
[Rules and Regulations]
[Pages 79285-79286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31223]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1003
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 $43 million from $42 million. The adjustment is based on
the 1.4 percent increase in the average of the CPI-W for the 12-month
period ending in November 2013. Therefore, banks, savings associations,
and credit unions with assets of $43 million or less as of December 31,
2013, are exempt from collecting data in 2014.
DATES: This final rule is effective January 1, 2014.
FOR FURTHER INFORMATION CONTACT: David Friend, Counsel, Office of
Regulations, Consumer Financial Protection Bureau, 1700 G Street NW.,
Washington, DC 20552 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 2013, the threshold was $42
million. During the 12-month period ending in November 2013, the CPI-W
increased by 1.4 percent. As a result, the exemption threshold is
increased to $43 million. Thus, banks, savings associations, and credit
unions with assets of $43 million or less as of December 31, 2013, are
exempt from collecting data in 2014. An institution's exemption from
collecting data in 2014 does not affect its responsibility to report
data it was required to collect in 2013.
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.
[[Page 79286]]
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.
Section 553(d) of the APA generally requires publication of a final
rule not less than 30 days before its effective date, except for (1) a
substantive rule which grants or recognizes an exemption or relieves a
restriction; (2) interpretive rules and statements of policy; or (3) as
otherwise provided by the agency for good cause found and published
with the rule. 5 U.S.C. 553(d). At a minimum, the Bureau believes the
amendments fall under the third exception to section 553(d). The Bureau
finds that there is good cause to make the amendments effective on
January 1, 2014. The amendment in this notice is technical and non-
discretionary, and it applies the method previously established in the
agency's regulations for determining adjustments to the threshold.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
Regulatory Flexibility Act does not require an initial or final
regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a).
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 set forth below:
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 2014, the
asset-size exemption threshold is $43 million. Banks, savings
associations, and credit unions with assets at or below $43 million
as of December 31, 2013, are exempt from collecting data for 2014.
* * * * *
Dated: December 24, 2013.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2013-31223 Filed 12-26-13; 11:15 am]
BILLING CODE 4810-AM-P