[Federal Register Volume 81, Number 195 (Friday, October 7, 2016)]
[Notices]
[Pages 69819-69820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24353]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2016-N-09]


Proposed Collection; Comment Request

AGENCY: Federal Housing Finance Agency.

ACTION: 60-Day notice of submission of information collection for 
approval from Office of Management and Budget.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995, the Federal Housing Finance Agency (FHFA or the Agency) is 
seeking public comments concerning the currently-approved information 
collection known as ``Federal Home Loan Bank Capital Stock,'' which has 
been assigned control number 2590-0002 by the Office of Management and 
Budget (OMB) (the collection was previously known as ``Capital 
Requirements for the Federal Home Loan Banks''). FHFA intends to submit 
the information collection to OMB for review and approval of a three-
year extension of the control number, which is due to expire on 
December 31, 2016.

DATES: Interested persons may submit comments on or before December 6, 
2016.

ADDRESSES: Submit comments to FHFA, identified by ``Proposed 
Collection; Comment Request: `Federal Home Loan Bank Capital Stock, 
(No. 2016-N-09)' '' by any of the following methods:
     Agency Web site: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments. If you submit your 
comment to the Federal eRulemaking Portal, please also send it by email 
to FHFA at [email protected] to ensure timely receipt by the agency.
     Mail/Hand Delivery: Federal Housing Finance Agency, Eighth 
Floor, 400 Seventh Street SW., Washington, DC 20219, ATTENTION: 
Proposed Collection; Comment Request: ``Federal Home Loan Bank Capital 
Stock, (No. 2016-N-09)''.
    We will post all public comments we receive without change, 
including any personal information you provide, such as your name and 
address, email address, and telephone number, on the FHFA Web site at 
http://www.fhfa.gov. In addition, copies of all comments received will 
be available for examination by the public on business days between the 
hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, 
Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an 
appointment to inspect comments, please call the Office of General 
Counsel at (202) 649-3804.

FOR FURTHER INFORMATION CONTACT: Jonathan F. Curtis, Financial Analyst, 
Division of Federal Home Loan Bank Regulation, at (202) 649-3321, by 
email at [email protected] or by telephone at (202) 649-3321; or 
Eric Raudenbush, Associate General Counsel, by email at 
[email protected] or by telephone at (202) 649-3084, (these are 
not toll-free numbers), Federal Housing Finance Agency, 400 Seventh 
Street SW., Washington, DC 20219. The Telecommunications Device for the 
Hearing Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION:

A. Need for and Use of the Information Collection

    The Federal Home Loan Bank System consists of eleven regional 
Federal Home Loan Banks (Banks) and the Office of Finance (a joint 
office that issues and services the Banks' debt securities). The Banks 
are wholesale financial institutions, organized under authority of the 
Federal Home Loan Bank Act (Bank Act) to serve the public interest by 
enhancing the availability of residential housing finance and community 
lending credit through their member institutions and, to a limited 
extent, through certain eligible nonmembers. Each Bank is structured as 
a regional cooperative that is owned and controlled by member 
institutions located within its district, which are also its primary 
customers. An institution that is eligible for membership in a 
particular Bank must purchase and hold a prescribed minimum amount of 
the Bank's capital stock in order to become and remain a member of that 
Bank. With limited exceptions, only an institution that is a member of 
a Bank may obtain access to low cost secured loans, known as advances, 
or other products provided by that Bank.
    Section 6 of the Bank Act establishes capital requirements for the 
Banks and requires FHFA to issue regulations prescribing uniform 
capital standards applicable to all of the Banks.\1\ Section 6 also 
establishes parameters relating to the Banks' capital structures and 
requires that each Bank adopt a ``capital structure plan'' (capital 
plan) to establish, within those statutory parameters, its own capital 
structure and to establish requirements for, and govern transactions 
in, the Bank's capital stock.\2\ FHFA has designated 12 CFR part 1277 
as the location for its regulations on Bank Capital Requirements, 
Capital Stock, and Capital Plans. Part 1277 currently includes 
regulations establishing requirements for the Banks' capital stock 
(Subpart C; Sec. Sec.  1277.20-1277.27) and for the Banks' capital 
plans (Subpart D; Sec. Sec.  1277.28-1277.29). Regulations governing 
the Banks' capital requirements are currently located at 12 CFR parts 
930 and 932 (in the regulations of the former Federal Housing Finance 
Board), but will be moved into part 1277 in the near future.
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    \1\ 12 U.S.C. 1426(a).
    \2\ 12 U.S.C. 1426(b), (c).

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[[Page 69820]]

    Both the Bank Act and FHFA's regulations state that a Bank's 
capital plan must require its members to maintain a minimum investment 
in the Bank's capital stock, but both permit each Bank to determine for 
itself what that minimum investment is and how each member's required 
minimum investment is to be calculated.\3\ Although each Bank's capital 
plan establishes a slightly different method for calculating the 
required minimum stock investment for its members, each Bank's method 
is tied to some degree to both the level of assets held by the member 
institution (typically referred to as a ``membership stock purchase 
requirement'') and the amount of advances or other business engaged in 
between the member and the Bank (typically referred to as an 
``activity-based stock purchase requirement'').
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    \3\ 12 U.S.C. 1426(c)(1); 12 CFR 1277.22, 1277.28(a).
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    A Bank must collect information from its members to determine the 
minimum capital stock investment each member is required to maintain at 
any point in time. Although the information needed to calculate a 
member's required minimum investment and the precise method through 
which it is collected differ somewhat from Bank to Bank, the Banks 
typically collect two types of information. First, in order to 
calculate and monitor compliance with its membership stock purchase 
requirement, a Bank typically requires each member to provide and/or 
confirm a quarterly report on the amount and types of assets held by 
that institution. Second, each time a Bank engages in a business 
transaction with a member, the Bank typically confirms with the member 
the amount of additional Bank capital stock, if any, the member must 
acquire in order to satisfy the Bank's activity-based stock purchase 
requirement and the method through which the member will acquire that 
stock.
    The OMB number for the information collection is 2590-0002, which 
is due to expire on December 31, 2016. The likely respondents include 
current and former Bank members and institutions applying for Bank 
membership.

B. Burden Estimate

    FHFA has analyzed the time burden imposed on respondents by the two 
collections under this control number and estimates that the average 
total annual hour burden imposed on all respondents over the next three 
years will be 33,818 hours. The estimate for each collection was 
calculated as follows:

I. Membership Stock Purchase Requirement Submissions

    FHFA estimates that the average annual number of current and former 
members and applicants for membership required to report information 
needed to calculate a membership stock purchase requirement will be 
7,320, and that each institution will submit 4 quarterly reports per 
year, resulting in an estimated total of 29,280 submissions annually. 
The estimate for the average time required to prepare, review, and 
submit each report is 0.71 hours. Accordingly, the estimate for the 
annual hour burden associated with membership stock purchase 
requirement submissions is (29,280 reports x 0.71 hours per report) = 
20,789 hours.

II. Activity-Based Stock Purchase Requirement Submissions

    FHFA estimates that the average number of daily transactions 
between Banks and members that will require the exchange of information 
to confirm the member's activity-based stock purchase requirement will 
be 312, and that there will be an average of 261 working days per year, 
resulting in an estimated 81,432 submissions annually. The estimate for 
the average preparation time per submission is 0.16 hours. Accordingly, 
the estimate for the annual hour burden associated with activity-based 
stock purchase requirement submissions is (81,432 submissions x 0.16 
hours per submission) = 13,029 hours.

C. Comment Request

    FHFA requests written comments on the following: (1) Whether the 
collection of information is necessary for the proper performance of 
FHFA functions, including whether the information has practical 
utility; (2) The accuracy of FHFA's estimates of the burdens of the 
collection of information; (3) Ways to enhance the quality, utility, 
and clarity of the information collected; and (4) Ways to minimize the 
burden of the collection of information on survey respondents, 
including through the use of automated collection techniques or other 
forms of information technology.

    Dated: September 30, 2016.
Kevin Winkler,
Chief Information Officer, Federal Housing Finance Agency.
[FR Doc. 2016-24353 Filed 10-6-16; 8:45 am]
 BILLING CODE 8070-01-P