[Federal Register Volume 82, Number 225 (Friday, November 24, 2017)]
[Rules and Regulations]
[Pages 55734-55743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25396]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2017-0008]
RIN 1557-AE15

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Docket No. R-1574]
RIN 7100-AE84

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AE58


Community Reinvestment Act Regulations

AGENCY: Office of the Comptroller of the Currency, Treasury; Board of 
Governors of the Federal Reserve System; and Federal Deposit Insurance 
Corporation.

ACTION: Joint final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC), the Board 
of Governors of the Federal Reserve System (Board), and the Federal 
Deposit Insurance Corporation (FDIC) (collectively, the Agencies) are 
amending their regulations implementing the Community Reinvestment Act 
(CRA). The Agencies are modifying the existing definitions of ``home 
mortgage loan'' and ``consumer loan,'' related cross references, and 
the public file content requirements to conform to recent revisions 
made by the Consumer Financial Protection Bureau (Bureau) to Regulation 
C, which implements the Home Mortgage Disclosure Act (HMDA). This final 
rule also removes obsolete references to the Neighborhood Stabilization 
Program (NSP).

DATES: This rule is effective on January 1, 2018.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Emily R. Boyes, Attorney, Community and Consumer Law Division, 
(202) 649-6350; Allison Hester-Haddad, Counsel, Legislative and 
Regulatory Activities Division, (202) 649-5490; for persons who are 
deaf or hearing impaired, TTY, (202) 649-5597; or Vonda J. Eanes, 
Director for CRA and Fair Lending Policy, Compliance Risk Policy 
Division, (202) 649-5470, Office of the Comptroller of the Currency, 
400 7th Street SW., Washington, DC 20219.
    Board: Amal S. Patel, Senior Supervisory Consumer Financial 
Services Analyst, Division of Consumer and Community Affairs, (202) 
912-7879; Cathy Gates, Senior Project Manager, Division of Consumer and 
Community Affairs, (202) 452-2099, Board of Governors of the Federal 
Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 
20551.
    FDIC: Patience R. Singleton, Senior Policy Analyst, Supervisory 
Policy Branch, Division of Depositor and Consumer Protection, (202) 
898-6859; Sharon B. Vejvoda, Senior Examination Specialist, Examination 
Branch, Division of Depositor and Consumer Protection, (202) 898-3881; 
Richard M. Schwartz, Counsel, Legal Division, (202) 898-7424; or Sherry 
Ann Betancourt, Counsel, Legal Division, (202) 898-6560, Federal 
Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 
20429.

SUPPLEMENTARY INFORMATION: 

I. Background

    The OCC, the Board, and the FDIC implement the CRA (12 U.S.C. 2901 
et seq.) through their CRA regulations. See 12 CFR parts 25, 195, 228, 
and 345. The CRA is designed to encourage regulated financial 
institutions to help meet the credit needs of the local communities in 
which an institution is chartered. The CRA regulations establish the 
framework and criteria by which the Agencies assess a financial 
institution's record of helping to meet the credit needs of its 
community, including low- and moderate-income neighborhoods, consistent 
with safe and sound operations. Under the CRA regulations, the Agencies 
apply different evaluation standards for financial institutions of 
different asset sizes and types.
    The Agencies also publish the Interagency Questions and Answers 
Regarding Community Reinvestment to provide guidance on the 
interpretation and application of the CRA regulations to agency 
personnel, financial institutions, and the public.
    On September 20, 2017, the Agencies published a joint notice of 
proposed rulemaking to amend their regulations implementing the CRA.\1\ 
The Agencies proposed to amend the definitions of ``home mortgage 
loan'' and ``consumer loan'' and the public file content requirements 
to conform to revisions made by the Bureau to its Regulation C, which 
implements HMDA (2015 HMDA Rule).\2\ The Agencies also proposed to make 
technical amendments to remove unnecessary cross references as a result 
of the proposed amended definitions, and to remove an obsolete 
reference to the NSP. The comment period for the Agencies' joint 
proposed rulemaking ended on October 20, 2017.
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    \1\ 82 FR 43910 (Sept. 20, 2017).
    \2\ See 80 FR 66127 (Oct. 28, 2015), as amended by 82 FR 19142 
(Aug. 24, 2017).
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    Together, the Agencies received two comment letters on the proposed 
amendments. One comment was from a community organization and the other 
from a financial institution. Both commenters supported the changes 
proposed by the Agencies. The commenters also made additional 
suggestions not related to the proposal. These comments are explained 
in more detail in the sections they relate to. As explained below, the 
Agencies are finalizing the amendments as proposed.

II. Amendments To Conform the CRA Regulations to Recent Revisions to 
the Bureau's Regulation C

Definition of ``Home Mortgage Loan''

    The CRA regulations specify the type of lending and other 
activities that examiners evaluate to assess a financial institution's 
CRA performance. The regulations provide several categories of

[[Page 55735]]

loans that may be evaluated to determine a financial institution's 
performance under the retail lending test, one of which is home 
mortgage loans. 12 CFR __.22. The current CRA regulations define a 
``home mortgage loan'' to mean a ``home improvement loan,'' ``home 
purchase loan,'' or a ``refinancing'' as those terms are currently 
defined in 12 CFR 1003.2 of the Bureau's Regulation C. 12 CFR __.12(l). 
However, effective January 1, 2018, the 2015 HMDA Rule revises the 
scope of loans reportable under Regulation C. In some cases, the 
revised scope of loans under Regulation C is broader, and in other 
cases more limited. Effective January 1, 2018, Regulation C will 
require covered financial institutions to report applications for, and 
originations and purchases of, ``covered loans'' that are secured by a 
dwelling. A ``covered loan'' is defined in 12 CFR 1003.2(e) to mean a 
closed-end mortgage loan, as defined in Sec.  1003.2(d), or an open-end 
line of credit, as defined in Sec.  1003.2(o), that is not an excluded 
transaction under 12 CFR 1003.3(c).\3\
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    \3\ Amended Regulation C retains existing categories of excluded 
transactions, clarifies some categories of excluded transactions, 
and expands the existing exclusion for agricultural-purpose 
transactions. Effective January 1, 2018, the following transactions 
will not be reportable under Regulation C:
    1. A closed-end mortgage loan or open-end line of credit 
originated or purchased by a financial institution acting in a 
fiduciary capacity;
    2. A closed-end mortgage loan or open-end line of credit secured 
by a lien on unimproved land;
    3. Temporary financing;
    4. The purchase of an interest in a pool of closed-end mortgage 
loans or open-end lines of credit;
    5. The purchase solely of the right to service closed-end 
mortgage loans or open-end lines of credit;
    6. The purchase of closed-end mortgage loans or open-end lines 
of credit as part of a merger or acquisition, or as part of the 
acquisition of all of the assets and liabilities of a branch office 
as defined in 12 CFR 1003.2(c);
    7. A closed-end mortgage loan or open-end line of credit, or an 
application of a closed-end mortgage loan or open-end line of 
credit, for which the total dollar amount is less than $500;
    8. The purchase of a partial interest in a closed-end mortgage 
loan or open-end line of credit;
    9. A closed-end mortgage loan or open-end line of credit used 
primarily for agricultural purposes;
    10. A closed-end mortgage loan or open-end line of credit that 
is or will be made primarily for a business or commercial purpose, 
unless the closed-end mortgage loan or open-end equity line of 
credit is a home improvement loan under Sec.  1003.2(i), a home 
purchase under Sec.  1003.2(j), or a refinancing under Sec.  
1003.2(p);
    11. A closed-end mortgage loan, if the financial institution 
originated fewer than 25 closed-end mortgage loans in either of the 
two preceding calendar years; a financial institution may collect, 
record, report, and disclose information, as described in Sec. Sec.  
1003.4 and 1003.5, for such an excluded closed-end mortgage loan as 
though it were a covered loan, provided that the financial 
institution complies with such requirements for all applications for 
closed-end mortgage loans that it receives, closed-end mortgage 
loans that it originates, and closed-end mortgage loans that it 
purchases that otherwise would have been covered loans during the 
calendar year during which final action is taken on the excluded 
closed-end mortgage loan; or
    12. An open-end equity line of credit, if the financial 
institution originated fewer than 500 open-end equity lines of 
credit in either of the two preceding calendar years; a financial 
institution may collect, record, report, and disclose information, 
as described in Sec. Sec.  1003.4 and 1003.5, for such an excluded 
open-end line of credit as though it were a covered loan, provided 
that the financial institution complies with such requirements for 
all applications for open-end lines of credit that it receives, 
open-end lines of credit that it originates, and open-end lines of 
credit that it purchases that otherwise would have been covered 
loans during the calendar year during which final action is taken on 
the excluded open-end line of credit (the threshold of 500 open-end 
lines of credit is temporary and applies only to calendar years 2018 
and 2019; absent action from the Bureau, the threshold for reporting 
open-end lines of credit reverts to 100 such lines effective January 
1, 2020); or
    13. A transaction that provided or, in the case of an 
application, proposed to provide new funds to the applicant or 
borrower in advance of being consolidated in a New York State 
consolidation, extension, and modification agreement classified as a 
supplemental mortgage under New York Tax Law section 255; the 
transaction is excluded only if final action on the consolidation 
was taken in the same calendar year as final action on the new funds 
transaction.
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    To conform the CRA definition of ``home mortgage loan'' to the 
revisions in Regulation C that will become effective on January 1, 
2018, the Agencies proposed to revise the current definition of ``home 
mortgage loan'' in their CRA regulations to mean a ``closed-end 
mortgage loan'' or an ``open-end line of credit,'' as those terms are 
defined under new 12 CFR 1003.2(d) and (o), respectively, and as may be 
amended from time to time, and that is not an excluded transaction 
under new 12 CFR 1003.3(c)(1)-(10) and (13), as may be amended from 
time to time.\4\
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    \4\ On September 13, 2017, the Bureau published in the Federal 
Register a final rule (2017 HMDA Rule) amending the 2015 HMDA Rule. 
The 2017 HMDA Rule finalizes a proposal issued by the Bureau on 
April 25, 2017 (82 FR 19142) to address technical errors, ease the 
burden associated with certain reporting requirements, and to 
clarify some key terms. The 2017 HMDA Rule also finalizes a proposal 
issued by the Bureau on July 14, 2017 (82 FR 33455), to temporarily 
increase the institutional and transactional coverage thresholds for 
open-end lines of credit. See http://files.consumerfinance.gov/f/documents/201708_cfpb_final-rule_home-mortgage-disclosure_regulation-c.pdf. The 2017 HMDA Rule adds a new exclusion 
from reporting HMDA data for certain transactions concerning New 
York consolidation, extension, and modification agreements (also 
known as NY CEMAs) under new Sec.  1003.3(c)(13).
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    As a result of the revisions to the ``home mortgage loan'' 
definition, the manner in which some loan transactions are considered 
under CRA will be affected. As the Agencies explained in the proposed 
rule, effective January 1, 2018, home improvement loans that are not 
secured by a dwelling, which are currently required to be reported 
under Regulation C, will no longer be reportable transactions under the 
2015 HMDA Rule. Therefore, also effective January 1, 2018, for purposes 
of CRA, home improvement loans that are not secured by a dwelling may 
be considered at the option of the financial institution. A financial 
institution that opts to have its home improvement loans considered 
would need to collect and maintain data on these loans in machine-
readable form under the category of ``other secured consumer loan'' or 
``other unsecured consumer loan,'' as appropriate. See 12 CFR 
__.12(j)(3) or (4). Notwithstanding an institution's option, home 
improvement loans that are not secured by a dwelling may still be 
evaluated by the Agencies under the lending test set out under 12 CFR 
__.22(a)(1), in circumstances where consumer lending is so significant 
a portion of an institution's lending by activity and dollar volume of 
loans that the lending test evaluation would not meaningfully reflect 
lending performance if consumer loans were excluded.
    Home equity lines of credit secured by a dwelling, which are 
currently reported at the option of the financial institution under 
Regulation C, will be covered loans under the 2015 HMDA Rule. Effective 
January 1, 2018, financial institutions that meet the reporting 
requirements under the 2015 HMDA Rule will be required to collect, 
maintain, and report data on home equity lines of credit secured by a 
dwelling. For purposes of CRA consideration, in the case of financial 
institutions that report closed-end mortgage loans and/or home equity 
lines of credit under the 2015 HMDA Rule, those loans would be 
considered as home mortgage loans under the amended definition of 
``home mortgage loan.'' The effect of this revision to the home 
mortgage loan definition will vary depending upon the amount and 
characteristics of the financial institution's mortgage loan portfolio. 
As with all aspects of an institution's CRA performance evaluation, the 
performance context of the institution will affect how the Agencies 
will consider home equity lines of credit. For financial institutions 
that would not be required to report these transactions under 
Regulation C, examiners may review the relevant files and consider 
these loans for CRA performance on a sampling basis under the home 
mortgage loan category.
    The Agencies received one comment addressing the proposed revision. 
This commenter supported amending the

[[Page 55736]]

definition of ``home mortgage loan'' in the Agencies' CRA regulations 
to conform to the changes in the scope of Regulation C. However, the 
commenter noted that some banks expressed concern that including home 
equity loans in CRA evaluations could have the effect of lowering the 
percentage of loans to low- and moderate-income borrowers and suggested 
that the Agencies consider evaluating home equity lending separately 
from other types of home lending. This commenter also urged the 
Agencies to consider loan purchases separately from originations during 
the CRA evaluation.
    The commenter's suggestions to consider home equity lending 
separately from other home mortgage lending and to consider purchases 
separately from originations would require that the Agencies reconsider 
how various loan types are evaluated under the CRA. The Agencies did 
not propose these changes and believe these suggestions would be better 
considered in connection with updates to the Agencies' CRA examination 
procedures and/or guidance. Accordingly, the Agencies are finalizing 
the revised definition of ``home mortgage loan'' as proposed. The 
Agencies have used the scope of HMDA-reportable transactions to define 
``home mortgage loan'' in the CRA regulations since 1995. The Agencies 
will review any amendments made to the cross-referenced definitions in 
HMDA to ensure that such cross-referenced terms continue to meet the 
statutory objectives of the CRA.

Definition of ``Consumer Loan''

    The CRA regulations provide a definition of ``consumer loan'' to 
define a category of loans that examiners should evaluate to determine 
a financial institution's performance under the retail lending test 
apart from home mortgage, small business, or small farm loans. 12 CFR 
__.22. The current CRA regulations define a ``consumer loan'' to mean a 
loan to one or more individuals for household, family, or other 
personal expenditures and that is not a home mortgage, small business, 
or small farm loan. See 12 CFR __. 12(j). Currently, a ``home equity 
loan'' is one of five loan categories listed under the definition of 
``consumer loan'' and is defined as a ``consumer loan secured by a 
residence of the borrower'' under 12 CFR __.12(j)(3). As noted above, 
the Agencies proposed to define ``home mortgage loan'' as a ``closed-
end mortgage loan'' or an ``open-end line of credit'' as those terms 
are defined in Sec. Sec.  1003.2(d) and 1003.2(o), respectively, of 
Regulation C. Under Regulation C, a closed-end mortgage loan is defined 
``as an extension of credit secured by a lien on a dwelling,'' and 
therefore, includes a home equity loan secured by a dwelling, per 12 
CFR 1003.2(d), effective January 1, 2018. As a result, the Agencies 
believed it was no longer appropriate to separately categorize home 
equity loans under the CRA definition of ``consumer loan'' because both 
home equity loans and home equity lines of credit would be captured by 
the revised CRA definition of ``home mortgage loan.'' Accordingly, the 
Agencies proposed to remove the term ``home equity loan'' from the list 
of consumer loan categories provided under the definition of ``consumer 
loan'' in 12 CFR __.12(j).
    The Agencies received one comment addressing the proposed revision. 
This commenter supported amending the definition of ``consumer 
lending'' in the Agencies' CRA regulations to conform to changes in the 
scope of loans reportable under Regulation C that will be effective 
January 1, 2018. This commenter further urged the Agencies to have 
examiners evaluate consumer lending, including unsecured home 
improvement lending, during CRA exams when such lending constitutes a 
``significant amount'' of the bank's business rather than a 
``substantial majority,'' as is currently required under 12 CFR 
__.22(a)(1).
    The Agencies did not address in the proposal how consumer lending 
should be evaluated under the retail lending test and therefore, 
addressing these recommendations is outside the scope of this final 
rule. Accordingly, the Agencies are finalizing the definition of 
``consumer lending'' as proposed. Note, however, that in accordance 
with their statutory responsibilities, the Agencies regularly review 
examination policies, procedures, and guidance to better serve the 
goals of the CRA.

Changes to the Content of the Public File

    Currently, the Agencies' CRA regulations require that financial 
institutions maintain a public file of certain information and specify, 
among other things, the information to be maintained and made available 
to the public upon request. 12 CFR __.43(a)-(d). If a financial 
institution is required to report HMDA data under Regulation C, it must 
also include a copy of the HMDA disclosure statement (provided by the 
Federal Financial Institutions Examination Council) in its CRA public 
file for each of the prior two calendar years. 12 CFR __.43(b)(2). 
Effective January 1, 2018, Regulation C will no longer require 
financial institutions to provide this HMDA disclosure statement 
directly to the public. Instead, Regulation C will only require 
financial institutions to provide a notice that clearly conveys to the 
public that they can obtain a copy of the financial institution's 
disclosure statement on the Bureau's Web site. 12 CFR 1003.5(b). As a 
result, the Agencies proposed to amend the CRA public file content 
requirements under 12 CFR __.43(b)(2) for consistency and to reduce 
burden. Specifically, the Agencies proposed that institutions that are 
required to report HMDA data would only maintain the notice required 
under section 1003.5(b) of Regulation C in their CRA public file, 
rather than a copy of the HMDA disclosure statement. Nevertheless, a 
financial institution must maintain in its public file the HMDA 
disclosure statements required by the CRA regulations that are not 
available on the Bureau's Web site and, therefore, should not remove 
HMDA disclosure statements from their CRA public files if that 
information is not available on the Bureau's Web site.
    The Agencies received no comments on the proposed changes to the 
CRA public file content requirements. Accordingly, the Agencies are 
adopting the revisions as proposed.

Technical Amendments

Removal of ``Home Equity Loan'' as a Category of Consumer Loans

    As discussed above, the Agencies proposed to remove ``home equity 
loans'' as a category of loans included as consumer loans because such 
loans would be captured by the revised definition of ``home mortgage 
loan.'' 12 CFR __.12(j). Accordingly, the Agencies proposed to amend 12 
CFR __.22, Lending Test, and 12 CFR __.42, Data Collection, Reporting, 
and Disclosure to remove any cross-reference to home equity loan as a 
category of ``consumer loans.''
    The Agencies received no comments on the proposed amendments to 12 
CFR __.22 and 12 CFR __.42 and finalizes them as proposed.

Technical Revision to the ``Community Development Loan'' Definition

    The current CRA regulations' definition of ``community development 
loan'' contains a cross-reference to appendix A of Regulation C in 
order to incorporate a description of a multifamily dwelling loan that 
is provided in appendix A of Regulation C.
    The Agencies proposed to remove this cross-reference to appendix A 
because appendix A of Regulation C will no longer exist. The 2015 HMDA 
Rule moved the substantive requirements found in existing appendix A to 
the

[[Page 55737]]

regulation text and commentary of Regulation C and also eliminated 
paper reporting, effective January 1, 2019. As a result, any cross-
reference to appendix A of Regulation C will become obsolete. The 
Agencies further proposed to instead cross-reference the newly defined 
term of ``multifamily dwelling'' contained in Sec.  1003.2(n) of 
Regulation C.
    The Agencies received no comments in connection with proposed 12 
CFR __.12(h) and are finalizing as proposed.

Removal of Obsolete Language Related to the NSP

    The Agencies also proposed to remove language in the CRA 
regulations related to the NSP. The CRA regulations currently define 
``community development'' to include qualifying NSP-related activities 
that benefit low-, moderate-, and middle-income individuals and 
geographies in NSP-target areas.\5\ The NSP was authorized by the 
Housing and Economic Recovery Act \6\ to stabilize communities 
suffering from foreclosures and abandonment. However, after March 2016, 
NSP-eligible activities no longer received consideration as ``community 
development'' under the CRA regulations and therefore, any reference to 
such activities is no longer needed. Accordingly, the Agencies proposed 
to amend 12 CFR __.12 to revise the definition of ``community 
development'' by removing qualifying NSP-related activities that 
benefit low-, moderate-, and middle-income individuals and geographies 
in NSP-targeted areas.
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    \5\ 75 FR 79278 (Dec. 20, 2010).
    \6\ Public Law 110-289, 122 Stat. 2654 (2008).
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    The Agencies received one comment in connection with this proposed 
revision, which supported the Agencies' efforts to streamline and 
eliminate the obsolete reference. This commenter also suggested that 
the Agencies consider consolidating the categories of economic 
development and revitalization and stabilization under the ``community 
development'' definition, as many loans fit into both categories, and 
create a new category for review and focus of veterans' activities.
    The Agencies did not propose to make these additional changes to 
the definition of ``community development'' and therefore, such 
recommendations did not receive the benefit of notice and public 
comment. Accordingly, the Agencies are finalizing the revisions to 12 
CFR __.12 as proposed.

Effective Date

    The Agencies proposed an effective date of January 1, 2018, to 
conform to the effective date of the revisions resulting from the 
Bureau's Regulation C. The Agencies received no comments on the 
proposed effective date. Therefore, this final rule becomes effective 
on January 1, 2018.

Regulatory Analysis

Regulatory Flexibility Act

    OCC: In general, the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 
et seq.) requires an agency, in connection with a final rule, to 
prepare a Final Regulatory Flexibility Analysis describing the impact 
of the final rule on small entities or to certify that the final rule 
would not have a significant economic impact on a substantial number of 
small entities. For purposes of the RFA, the Small Business 
Administration defines small entities as those with $550 million or 
less in assets for commercial banks and savings institutions and $38.5 
million or less in assets for trust companies.
    The scope of the OCC's CRA rule generally covers national banks, 
insured Federal branches, and Federal and state savings associations. 
The OCC currently supervises approximately 956 small entities. The FDIC 
currently supervises approximately 44 small entities that are state 
savings associations. Although the final rule would apply to all of 
these small entities, we anticipate that the final rule would result 
only in de minimis compliance costs for these OCC- and FDIC-supervised 
institutions.
    Further, any burden that may be associated with changes made to 
Regulation C HMDA reporting are a result of Bureau rulemakings. 
However, the final rule may reduce regulatory costs for covered 
financial institutions that are required to report HMDA data because 
those institutions would no longer be required to keep two years of 
HMDA disclosure statements in their CRA public file. Instead, covered 
financial institutions would provide a notice in the public file with a 
Web site address indicating where the HMDA disclosure statements can be 
accessed. Among the small entities that the OCC currently supervises, 
518 are HMDA reporters. Among the small entities that the FDIC 
currently supervises, approximately 35 are HMDA reporters. By not 
having to keep paper copies of the HMDA disclosure statements in their 
CRA public file, the OCC estimates that the savings for these small 
entities will be less than $1,142 (10 hours x $114.20 per hour) per 
entity.
    Therefore, the final rule will not have a significant economic 
impact on a substantial number of small entities. Accordingly, the OCC 
certifies that the rule will not have a significant economic impact on 
a substantial number of small entities.
    Board: An initial regulatory flexibility analysis (IRFA) was 
included in the proposal in accordance with section 3(a) of the 
Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.). In the IRFA, 
the Board requested comment on the effect of the proposed rule on small 
entities and on any significant alternatives that would reduce the 
regulatory burden on small entities. The Board did not receive any 
comments. The RFA requires an agency to prepare a final regulatory 
flexibility analysis unless the agency certifies that the rule will 
not, if promulgated, have a significant economic impact on a 
substantial number of small entities.\7\ In accordance with section 
3(a) of the RFA, the Board has reviewed the final regulation. Based on 
its analysis, and for the reasons stated below, the Board certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities.
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    \7\ See 5 U.S.C. 601 et seq.
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    There are 820 Board-supervised state member banks, and 566 are 
identified as small entities according to the RFA.\8\ The Board 
estimates that the final rule will have generally small economic 
effects for small entities. The new changes to the content requirements 
of the CRA public file may reduce recordkeeping burden for covered 
financial institutions. Additionally, the Board expects that the 
changes to definitions within the CRA regulations will have little 
impact on supervisory assessments of CRA performance generally, but 
could affect some financial institutions more than others depending 
upon the amount and characteristics of their loan portfolio.
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    \8\ Call Report Data as of June 30, 2017.
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    The final rule changes the content requirements of the CRA public 
file for financial institutions that are HMDA reporters. Financial 
institutions that are required to report HMDA data can maintain the 
same notice required under Regulation C in their CRA public file of 
their branch office, rather than the HMDA disclosure statement 
currently required. By allowing covered financial institutions to 
utilize a shorter disclosure, the final rule may reduce regulatory 
costs. As previously stated, there are 566 Board-supervised entities 
that are identified as small entities by the terms of the RFA. Of 
those, 304 were

[[Page 55738]]

HMDA filers in 2016.\9\ All FDIC-insured financial institutions 
reported having 31,096 branch offices, for an average of 7.9 branches 
per financial institution.\10\ The Board assumes it takes one employee 
10 minutes at a rate of $76.65 an hour \11\ to print and file the HMDA 
notification per year and place it in the CRA public file. This equates 
to an estimated annual printing and filing cost of $12.78 per branch 
office. Therefore, complying with the new rule will save small entities 
an estimated $30,692.45 in costs per year.\12\
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    \9\ 2016 HMDA Data and Call Report Data as of June 30, 2017.
    \10\ 2015 Summary of Deposits Data.
    \11\ Estimated total hourly compensation for Compliance Officers 
in the Depository Credit Intermediation sector as of June 2017. The 
estimate includes the May 2016 90th percentile hourly wage rate 
reported by the Bureau of Labor Statistics, National Industry-
Specific Occupational Employment, and Wage Estimates. This wage rate 
has been adjusted for changes in the Consumer Price Index for all 
Urban Consumers between May 2016 and June 2017 (1.85 percent) and 
grossed up by 35.5 percent to account for non-monetary compensation 
as reported by the June 2017 Employer Costs for Employee 
Compensation Data.
    \12\ Assuming that each covered institution will no longer have 
to print and file the HMDA disclosure statement, the recordkeeping 
burden for each branch office declines by 10 minutes for all 7.9 
branch offices, for all 304 small entities that are HMDA filers.
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    The Board expects the changes to definitions within the CRA 
regulations generally to have little economic effect for small 
entities, however the amendments could pose some effects for individual 
entities depending upon the amount and characteristics of their loan 
portfolio. As noted previously, in some cases the revised scope of 
loans under Regulation C is broader, and in other cases, it is more 
limited. These changes could affect supervisory assessment of CRA 
performance for small entities. However, it is unlikely that small 
financial institutions will be significantly affected given that HMDA 
reporting will be limited to financial institutions that originate more 
than 25 home mortgage loans or 100 home equity lines of credit each 
year.\13\ There could be a net effect on CRA examination results for 
some small entities which may, in turn, affect the future behavior of 
those financial institutions. But, it is difficult to accurately 
determine the likelihood and degree of aggregate lending or economic 
effects that may result because they are dependent upon firm-specific 
business plans and propensities to lend.
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    \13\ The open-end lines of credit threshold will increase from 
100 to 500 loans on a temporary basis for a period of two years 
(calendar years 2018 and 2019) pursuant to the 2017 HMDA Rule. The 
Bureau is not making the threshold increase for open-end lines of 
credit permanent at this time. Absent further action by the Bureau, 
effective January 1, 2020, the open-end threshold will be restored 
to the 2015 HMDA Rule level of 100 open-end lines of credit, and 
creditors originating between 100 and 499 open-end lines of credit 
will need to begin collecting and reporting HMDA data for open-end 
lines of credit at that time.
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    Finally, Board-supervised small entities will likely benefit from 
the harmonization of definitions within the CRA regulations with HMDA 
data reporting requirements by avoiding unnecessary confusion and 
costs. Inconsistencies between CRA examination metrics and the HMDA 
data, which is used to assess CRA performance, could lead to misleading 
results causing small entities to change future lending behavior.
    FDIC: The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires that, in connection with a final rule, an agency 
prepare and make available for public comment an initial regulatory 
flexibility analysis that describes the impact of a final rule on small 
entities (defined in regulations promulgated by the Small Business 
Administration to include banking organizations with total assets of 
less than or equal to $550 million). A regulatory flexibility analysis, 
however, is not required if the agency certifies that the rule will not 
have a significant economic impact on a substantial number of small 
entities, and publishes its certification and a short explanatory 
statement in the Federal Register together with the final rule. For the 
reasons provided below, the FDIC certifies that the final rule will not 
have a significant economic impact on a substantial number of small 
entities.
    There are 3,717 FDIC-supervised financial institutions, and 2,990 
are identified as small entities according to the RFA.\14\ The FDIC 
estimates that the final rule will have generally small economic 
effects for small entities. The new changes to the content requirements 
of the CRA public file may reduce regulatory costs for covered 
financial institutions. Additionally, the FDIC expects that the changes 
to definitions within the CRA regulations will have little impact on 
supervisory assessments of CRA performance generally, but could affect 
some financial institutions more than others depending upon the amount 
and characteristics of their loan portfolio.
---------------------------------------------------------------------------

    \14\ Call Report Data as of June 30, 1017.
---------------------------------------------------------------------------

    The final rule changes the content requirements of the CRA public 
file for financial institutions that are HMDA reporters. Financial 
institutions required to report HMDA data can maintain the same notice 
required under Regulation C in the CRA public file of their branch 
office, rather than the HMDA disclosure statement currently required. 
By allowing covered financial institutions to utilize a shorter 
disclosure, the final rule may reduce regulatory costs. As previously 
stated, there are 2,990 FDIC-supervised entities that are identified as 
small entities by the terms of the RFA. Of those, 1,549 were HMDA 
filers in 2016.\15\ These 1,549 FDIC-insured financial institutions 
reported having 6,845 branch offices, for an average of 4.4 branches 
per financial institution.\16\ The FDIC assumes it takes one employee 
10 minutes at a rate of $76.65 an hour \17\ to print and file the HMDA 
notification per year and place it in the CRA public file. This equates 
to an estimated annual printing and filing cost of $12.78 per branch 
office. Therefore, complying with the new rule may save small entities 
an estimated $87,069 in costs per year.\18\
---------------------------------------------------------------------------

    \15\ 2016 HMDA Data and Call Report Data as of June 30, 2017.
    \16\ 2017 Summary of Deposits Data.
    \17\ Estimated total hourly compensation for Compliance Officers 
in the Depository Credit Intermediation sector as of June 2017. The 
estimate includes the May 2016 90th percentile hourly wage rate 
reported by the Bureau of Labor Statistics, National Industry-
Specific Occupational Employment, and Wage Estimates. This wage rate 
has been adjusted for changes in the Consumer Price Index for all 
Urban Consumers between May 2016 and June 2017 (1.85 percent) and 
grossed up by 35.5 percent to account for non-monetary compensation 
as reported by the June 2017 Employer Costs for Employee 
Compensation Data.
    \18\ Assuming that each covered institution will no longer have 
to print and file the HMDA disclosure statement, the recordkeeping 
burden for each branch office declines by 10 minutes for all 4.4 
branch offices, for all 1,549 small entities that are HMDA filers.
---------------------------------------------------------------------------

    The FDIC expects the changes to definitions within the CRA 
regulations generally to have little economic effect for small 
entities; however, the amendments could pose some effects for 
individual entities depending upon the amount and characteristics of 
their loan portfolio. As noted previously, in some cases the revised 
scope of loans under Regulation C is broader, and in other cases, it is 
more limited. These changes could affect supervisory assessment of CRA 
performance for small entities. However, it is unlikely that small 
financial institutions will be significantly affected given that HMDA 
reporting will be limited to financial institutions that originate more 
than 25 home mortgage loans or 100 home equity lines of credit each 
year.\19\ There

[[Page 55739]]

could be a net effect on CRA examination results for some small 
entities which may, in turn, affect the future behavior of those 
financial institutions. But, it is difficult to accurately determine 
the likelihood and degree of aggregate lending or economic effects that 
may result because they are dependent upon firm-specific business plans 
and propensities to lend.
---------------------------------------------------------------------------

    \19\ The open-end lines of credit threshold will increase from 
100 to 500 loans on a temporary basis for a period of two years 
(calendar years 2018 and 2019) pursuant to the 2017 HMDA Rule. The 
Bureau is not making the threshold increase for open-end lines of 
credit permanent at this time. Absent further action by the Bureau, 
effective January 1, 2020, the open-end threshold will be restored 
to the 2015 HMDA Rule level of 100 open-end lines of credit, and 
creditors originating between 100 and 499 open-end lines of credit 
will need to begin collecting and reporting HMDA data for open-end 
lines of credit at this time.
---------------------------------------------------------------------------

    Finally, FDIC-supervised small entities would likely benefit from 
the harmonization of definitions within the CRA regulations with HMDA 
data reporting requirements by avoiding unnecessary confusion and 
costs. Inconsistencies between CRA examination metrics and the HMDA 
data, which is used to assess CRA performance, could lead to misleading 
results causing small entities to change future lending behavior.

Paperwork Reduction Act of 1995

    Certain provisions of the final rule contain ``collection of 
information'' requirements within the meaning of the Paperwork 
Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3521). In accordance with 
the requirements of the PRA, the Agencies may not conduct or sponsor, 
and the respondent is not required to respond to, an information 
collection unless it displays a currently-valid Office of Management 
and Budget (OMB) control number. The information collection 
requirements contained in this final rule have been submitted by the 
OCC and FDIC to OMB for review and approval under section 3507(d) of 
the PRA (44 U.S.C. 3507(d)) and Sec.  1320.11 of the OMB's implementing 
regulations (5 CFR part 1320). The OCC and the FDIC submitted the 
collection of information at the proposed rule stage as well and were 
directed by OMB to examine public comment and resubmit at the final 
rule stage. The OMB control number for the OCC is 1557-0160 and the 
FDIC is 3064-0092. The OMB control number for the Board is 7100-0197 
and will be extended, with revision. The Board reviewed the final rule 
under the authority delegated to the Board by OMB.
    Under this final rule, effective January 1, 2018, financial 
institutions required to collect data under the CRA would also be 
required to collect data for open-end lines of credit in MSA and non-
MSA areas where they have no branch or home office. The Agencies 
estimate that this change will not result in an increase in burden 
under the currently approved CRA information collections because the 
burden associated with the above-described requirement is accounted for 
under the HMDA information collections.\20\
---------------------------------------------------------------------------

    \20\ OMB Control Number 1557-0159 (OCC); OMB Control Number 
7100-0247 (Board); and OMB Control Number 3064-0046 (FDIC).
---------------------------------------------------------------------------

    The Agencies have determined that the revised definition of ``home 
mortgage loan'' to include home equity lines of credit and to exclude 
home improvement loans that are not secured by a dwelling (i.e., home 
improvement loans that are unsecured or that are secured by some other 
type of collateral) does not warrant a change to the current burden 
estimates.
    The Agencies received no comments on the PRA. However, the Agencies 
invite comments on:
    (a) Whether the collections of information are necessary for the 
proper performance of the Agencies' functions, including whether the 
information has practical utility;
    (b) The accuracy of the estimates of the burden of the information 
collections, including the validity of the methodology and assumptions 
used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.
    All comments will become a matter of public record. Comments on 
aspects of this notice that may affect reporting, recordkeeping, or 
disclosure requirements and burden estimates should be sent to:
    OCC: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email, if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0160, 400 7th Street SW., Suite 3E-218, Washington, DC 
20219. In addition, comments may be sent by fax to (571) 465-4326 or by 
electronic mail to [email protected]. You may personally inspect 
and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 
20219. For security reasons, the OCC requires that visitors make an 
appointment to inspect comments. You may do so by calling (202) 649-
6700 or, for persons who are deaf or hearing impaired, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid 
government-issued photo identification and submit to security screening 
in order to inspect and photocopy comments. All comments received, 
including attachments and other supporting materials, are part of the 
public record and subject to public disclosure. Do not include any 
information in your comment or supporting materials that you consider 
confidential or inappropriate for public disclosure.
    Board: Comments on aspects of this rule that may affect reporting, 
recordkeeping, or disclosure requirements and burden estimates should 
be sent by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW., 
Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room 
3515, 1801 K Street (between 18th and 19th Streets NW.) Washington, DC 
20006 between 9:00 a.m. and 5:00 p.m. on weekdays.
    FDIC: The FDIC invites comments on aspects of this rule that may 
affect reporting, recordkeeping, or disclosure requirements and burden 
estimates. Comments may be sent by any of the following methods:
     Agency Web site: https://www.fdic.gov/regulations/laws/federal/propose.html.
    Follow instructions for submitting comments on the Agency Web site.
     Email: [email protected]. Include the RIN 3064-AE58 on the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal

[[Page 55740]]

Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 
20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street Building (located on F 
Street) on business days between 7:00 a.m. and 5:00 p.m.
    Instructions: All comments received must include the agency name 
and RIN 3064-AE58 for this rulemaking. All comments received will be 
posted without change to https://www.fdic.gov/regulations/laws/federal/propose.html, including any personal information provided. Paper copies 
of public comments may be ordered from the FDIC Public Information 
Center, 3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226 by 
telephone at (877) 275-3342 or (703) 562-2200.
    A copy of the comments may also be submitted to the OMB desk 
officer for the Agencies: By mail to U.S. Office of Management and 
Budget, 725 17th Street NW., # 10235, Washington, DC 20503; by 
facsimile to (202) 395-5806; or by email to: 
[email protected], Attention, Federal Banking Agency Desk 
Officer.

Information Collection

    Title of Information Collection: Reporting, Recordkeeping, and 
Disclosure Requirements Associated with the Community Reinvestment Act 
(CRA).
    Frequency of Response: Annually.
    Affected Public: Businesses or other for-profit.
    Respondents:
    OCC: National banks, trust companies, savings associations (except 
special purpose savings associations pursuant to 12 CFR 195.11(c)(2)), 
insured Federal branches and any Federal branch that is uninsured that 
results from an acquisition described in section 5(a)(8) of the 
International Banking Act of 1978 (12 U.S.C. 3103(a)(8)).
    Board: State member banks.
    FDIC: Insured state nonmember banks and insured state branches.
    Abstract: The CRA was enacted in 1977 and is implemented by 12 CFR 
parts 25, 195, 228, and 345. The CRA directs the Agencies to evaluate 
financial institutions' records of helping to meet the credit needs of 
their entire communities, including low- and moderate-income areas 
consistent with the safe and sound operation of the institutions. The 
CRA is implemented through regulations issued by the Agencies.\21\
---------------------------------------------------------------------------

    \21\ The Dodd-Frank Wall Street Reform and Consumer Protection 
Act (15 U.S.C. 5413) transferred from the Office of Thrift 
Supervision all authorities (including rulemaking) relating to 
savings associations to the OCC and all authorities (including 
rulemaking) relating to savings and loan holding companies to the 
Board on July 21, 2011.
---------------------------------------------------------------------------

    In 1995, the federal banking agencies issued substantially 
identical regulations under the CRA to reduce unnecessary compliance 
burden, promote consistency in CRA assessments, and encourage improved 
performance.\22\ As a result, the current reporting, recordkeeping, and 
disclosure requirements under the CRA regulations depend in part on a 
bank's size.
---------------------------------------------------------------------------

    \22\ See 60 FR 22156 (May 4, 1995).
---------------------------------------------------------------------------

    Under the CRA regulations, large banks are defined as those with 
assets of $1.226 billion or more for the past two consecutive year-
ends; all other banks are considered small or intermediate.\23\ The 
banking agencies amend the definition of a small bank and an 
intermediate small bank in their CRA regulations each year when the 
asset thresholds are adjusted for inflation pursuant to the CRA 
regulations, most recently in January 2017.\24\
---------------------------------------------------------------------------

    \23\ Beginning January 18, 2017, banks and savings associations 
that, as of December 31 of either of the prior two calendar years, 
had assets of less than $1.226 billion are small banks or small 
savings associations. Small banks or small savings associations with 
assets of at least $307 million as of December 31 of both of the 
prior two calendar years, and less than $1.226 billion as of 
December 31 of either of the prior two calendar years, are 
intermediate small banks or intermediate small savings associations.
    \24\ See 82 FR 5354 (Jan. 18, 2017).
---------------------------------------------------------------------------

    Other than the information collections pursuant to the CRA, the 
Agencies have no information collection that supplies data regarding 
the community reinvestment activities.

PRA Burden Estimates

OCC
    Number of respondents: Recordkeeping requirement, small business 
and small farm loan register, 142; Optional recordkeeping requirements, 
consumer loan data, 85, and other loan data, 25; Reporting 
requirements, assessment area delineation, 189; loan data: Small 
business and small farm, 142, community development, 142, and HMDA out 
of MSA, 142; Optional reporting requirements, data on lending by a 
consortium or third party, 31; affiliate lending data, 9; request for 
strategic plan approval, 5; request for designation as a wholesale or 
limited purpose bank, 12; Disclosure requirement, public file, 1,234.
    Estimated average hours per response: Recordkeeping requirement, 
small business and small farm loan register: 219 hours; Optional 
recordkeeping requirements, consumer loan data, 326 hours, and other 
loan data, 25 hours; Reporting requirements, assessment area 
delineation, 2 hours; loan data: Small business and small farm, 8 
hours, community development, 13 hours, and HMDA out of MSA, 253 hours; 
Optional reporting requirements, data on lending by a consortium or 
third party, 17 hours; affiliate lending data, 38 hours; request for 
strategic plan approval, 275 hours; request for designation as a 
wholesale or limited purpose bank, 4 hours; Disclosure requirement, 
public file, 10 hours.
    Estimated annual reporting hours: Recordkeeping requirement, small 
business and small farm loan register: 31,098 hours; Optional 
recordkeeping requirements, consumer loan data, 27,710 hours and other 
loan data, 625 hours; Reporting requirements, assessment area 
delineation, 378 hours; loan data: Small business and small farm, 1,136 
hours, community development, 1,846 hours, and HMDA out of MSA, 35,926 
hours; Optional reporting requirements, data on lending by a consortium 
or third party, 527 hours; affiliate lending data, 342 hours; request 
for strategic plan approval, 1,375 hours; request for designation as a 
wholesale or limited purpose bank, 48 hours; Disclosure requirement, 
public file, 12,340 hours.
    Total annual burden: 113,351 hours.
Board
    Number of respondents: Recordkeeping requirement, small business 
and small farm loan register, 94; Optional recordkeeping requirements, 
consumer loan data, 21, and other loan data, 15; Reporting 
requirements, assessment area delineation, 98; loan data: Small 
business and small farm, 94, community development, 98, and HMDA out of 
MSA, 89; Optional reporting requirements, data on lending by a 
consortium or third party, 9; affiliate lending data, 8; request for 
strategic plan approval, 2; request for designation as a wholesale or 
limited purpose bank, 1; Disclosure requirement, public file, 817.
    Estimated average hours per response: Recordkeeping requirement, 
small business and small farm loan register: 219 hours; Optional 
recordkeeping requirements, consumer loan data, 326 hours, and other 
loan data, 25 hours; Reporting requirements, assessment area 
delineation, 2 hours; loan data: Small business and small farm, 8 
hours, community development, 13 hours, and HMDA out of MSA, 253 hours; 
Optional reporting requirements, data on lending by a consortium or 
third party, 17 hours;

[[Page 55741]]

affiliate lending data, 38 hours; request for strategic plan approval, 
275 hours; request for designation as a wholesale or limited purpose 
bank, 4 hours; Disclosure requirement, public file, 10 hours.
    Estimated annual reporting hours: Recordkeeping requirement, small 
business and small farm loan register: 20,586 hours; Optional 
recordkeeping requirements, consumer loan data, 6,846 hours and other 
loan data, 375 hours; Reporting requirements, assessment area 
delineation, 196 hours; loan data: Small business and small farm, 752 
hours, community development, 1,274 hours, and HMDA out of MSA, 22,517 
hours; Optional reporting requirements, data on lending by a consortium 
or third party, 153 hours; affiliate lending data, 304 hours; request 
for strategic plan approval, 550 hours; request for designation as a 
wholesale or limited purpose bank, 4 hours; Disclosure requirement, 
public file, 8,170 hours.
    Total annual burden: 61,727 hours.
FDIC

----------------------------------------------------------------------------------------------------------------
                                                                                                        Total
                                                                            Estimated     Average     estimated
     Source and type of burden                    Description               number of    estimated      annual
                                                                           respondents    time per      burden
                                                                                          response     (hours)
----------------------------------------------------------------------------------------------------------------
345.25(b) Reporting................  Request for designation as a                    1            4            4
                                      wholesale or limited purpose bank--
                                      Banks requesting this designation
                                      shall file a request in writing
                                      with the FDIC at least 3 months
                                      prior to the proposed effective
                                      date of the designation.
345.27 Reporting...................  Strategic plan--Applies to banks                7          400        2,800
                                      electing to submit strategic plans
                                      to the FDIC for approval.
345.42(b)(1) Reporting.............  Small business/small farm loan data--         393            8        3,144
                                      Large banks shall and Small banks
                                      may report annually in machine-
                                      readable form the aggregate number
                                      and amount of certain loans.
345.42(b)(2) Reporting.............  Community development loan data--             393           13        5,109
                                      Large banks shall and Small banks
                                      may report annually, in machine-
                                      readable form, the aggregate number
                                      and aggregate amount of community
                                      development loans originated or
                                      purchased.
345.42(b)(3) Reporting.............  Home mortgage loans--Large banks, if          393          253       99,429
                                      subject to reporting under part
                                      1003 (Home Mortgage Disclosure
                                      (HMDA)), shall, and Small banks may
                                      report the location of each home
                                      mortgage loan application,
                                      origination, or purchase outside
                                      the MSA in which the bank has a
                                      home/branch office.
345.42(d) Reporting................  Data on affiliate lending--Banks              200           38        7,600
                                      that elect to have the FDIC
                                      consider loans by an affiliate, for
                                      purposes of the lending or
                                      community development test or an
                                      approved strategic plan, shall
                                      collect, maintain and report the
                                      data that the bank would have
                                      collected, maintained, and reported
                                      pursuant to Sec.   345.42(a), (b),
                                      and (c) had the loans been
                                      originated or purchased by the
                                      bank. For home mortgage loans, the
                                      bank shall also be prepared to
                                      identify the home mortgage loans
                                      reported under HMDA.
345.42(e) Reporting................  Data on lending by a consortium or a           75           17        1,275
                                      third party--Banks that elect to
                                      have the FDIC consider community
                                      development loans by a consortium
                                      or a third party, for purposes of
                                      the lending or community
                                      development tests or an approved
                                      strategic plan, shall report for
                                      those loans the data that the bank
                                      would have reported under Sec.
                                      345.42(b)(2) had the loans been
                                      originated or purchased by the
                                      bank..
345.42(g) Reporting................  Assessment area data--Large banks             393            2          786
                                      shall and Small banks may collect
                                      and report to the FDIC a list for
                                      each assessment area showing the
                                      geographies within the area.
                                                                          --------------------------------------
    Total Reporting................  ....................................  ...........  ...........      120,147
----------------------------------------------------------------------------------------------------------------
345.42(a) Recordkeeping............  Small business/small farm loan                393          219       86,067
                                      register--Large banks shall and
                                      Small banks may collect and
                                      maintain certain data in machine-
                                      readable form.
345.42(c) Recordkeeping............  Optional consumer loan data--All               75          326       24,450
                                      banks may collect and maintain in
                                      machine-readable form certain data
                                      for consumer loans originated or
                                      purchased by a bank for
                                      consideration under the lending
                                      test.
345.42(c)(2) Recordkeeping.........  Other loan data--All banks                    100           25        2,500
                                      optionally may provide other
                                      information concerning their
                                      lending performance, including
                                      additional loan distribution data.
                                                                          --------------------------------------
    Total Recordkeeping............  ....................................  ...........  ...........      113,017
----------------------------------------------------------------------------------------------------------------
    345.41(a) 345.43(a); (a)(1);     Content and availability of public          3,971           10       39,710
     (a)(2); (a)(3); (a)(4);          file--All banks shall maintain a
     (a)(5); (a)(6); (a)(7);          public file that contains certain
     (b)(1); (b)(2); (b)(3);          required information.
     (b)(4); (b)(5); (c); (d)
     Disclosure.
                                                                          --------------------------------------
    Total Disclosure...............  ....................................  ...........  ...........       39,710
                                                                          --------------------------------------
        Total Estimated Annual       ....................................  ...........  ...........      272,874
         Burden.
----------------------------------------------------------------------------------------------------------------

Unfunded Mandates Reform Act of 1995

    The OCC analyzed the final rule under the factors set forth in the 
Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this 
analysis, the OCC considered whether the final rule includes 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 in any one year (adjusted for inflation). The final 
rule does not impose new requirements or include new mandates. 
Therefore, the OCC has concluded that implementation of the final rule 
would not result in expenditures by State, local, and Tribal 
governments, or the private sector, of $100 million or more in any one 
year.\25\ Accordingly, the OCC has not prepared the written statement 
described in section 202 of the UMRA.
---------------------------------------------------------------------------

    \25\ The OCC anticipates that the final rule would not impose 
costs on any OCC-supervised financial institutions since the rule 
does not impose new requirements or include new mandates. Any burden 
that may be associated with changes made to Regulation C HMDA 
reporting is a result of Bureau rulemakings.

---------------------------------------------------------------------------

[[Page 55742]]

Plain Language

    Section 722 of the Gramm-Leach-Bliley Act requires the Agencies to 
use plain language in all proposed and final rules published after 
January 1, 2000. The Agencies received no comments on these matters and 
believe that the final rule is written plainly and clearly.

List of Subjects

12 CFR Part 25

    Community development, Credit, Investments, National banks, 
Reporting and recordkeeping requirements.

12 CFR Part 195

    Community development, Credit, Investments, Reporting and 
recordkeeping requirements, Savings associations.

12 CFR Part 228

    Banks, Banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

12 CFR Part 345

    Banks, Banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Chapter I

Authority and Issuance

    For the reasons discussed in the SUPPLEMENTARY INFORMATION section, 
the Office of the Comptroller of the Currency amends 12 CFR parts 25 
and 195 as follows:

PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT 
PRODUCTION REGULATIONS

0
1. The authority citation for part 25 continues to read as follows:

    Authority:  12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 
215a, 481, 1814, 1816, 1828(c), 1835a, 2901 through 2908, and 3101 
through 3111.


Sec.  25.12  [Amended]

0
2. Section 25.12 is amended:
0
a. By adding ``or'' at the end of paragraph (g)(3);
0
b. By removing ``; or'' at the end of paragraph (g)(4)(iii)(B) and 
adding a period in its place;
0
c. By removing paragraph (g)(5);
0
d. In paragraph (h)(2)(i), by removing the phrase ``unless it is a 
multifamily dwelling loan (as described in appendix A to part 1003 of 
this title)'' and adding in its place the phrase ``unless the loan is 
for a multifamily dwelling (as defined in Sec.  1003.2(n) of this 
title)'';
0
e. By removing paragraph (j)(3) and redesignating paragraphs (j)(4) and 
(5) as paragraphs (j)(3) and (4); and
0
f. In paragraph (l), by removing the phrase ```home improvement loan,' 
`home purchase loan,' or a `refinancing' as defined in Sec.  1003.2 of 
this title'' and adding in its place the phrase ``closed-end mortgage 
loan or an open-end line of credit as these terms are defined under 
Sec.  1003.2 of this title, and that is not an excluded transaction 
under Sec.  1003.3(c)(1) through (10) and (13) of this title''.


Sec.  25.22  [Amended]

0
3. Section 25.22 is amended in paragraph (a)(1) by removing the phrase 
``home equity,''.


Sec.  25.42  [Amended]

0
4. Section 25.42 is amended in paragraph (c)(1) introductory text by 
removing the phrase ``home equity,''.

0
5. Section 25.43 is amended by revising paragraph (b)(2) to read as 
follows:


Sec.  25.43  Content and availability of public file.

* * * * *
    (b) * * *
    (2) Banks required to report Home Mortgage Disclosure Act (HMDA) 
data. A bank required to report home mortgage loan data pursuant part 
1003 of this title shall include in its public file a written notice 
that the institution's HMDA Disclosure Statement may be obtained on the 
Consumer Financial Protection Bureau's (Bureau's) Web site at 
www.consumerfinance.gov/hmda. In addition, a bank that elected to have 
the OCC consider the mortgage lending of an affiliate shall include in 
its public file the name of the affiliate and a written notice that the 
affiliate's HMDA Disclosure Statement may be obtained at the Bureau's 
Web site. The bank shall place the written notice(s) in the public file 
within three business days after receiving notification from the 
Federal Financial Institutions Examination Council of the availability 
of the disclosure statement(s).
* * * * *

PART 195--COMMUNITY REINVESTMENT

0
6. The authority citation for part 195 continues to read as follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464, 1814, 1816, 1828(c), 
2901 through 2908, and 5412(b)(2)(B).


Sec.  195.12  [Amended]

0
7. Section 195.12 is amended:
0
a. By adding ``or'' at the end of paragraph (g)(3);
0
b. By removing ``; or'' at the end of paragraph (g)(4)(iii)(B) and 
adding a period in its place;
0
c. By removing paragraph (g)(5);
0
d. In paragraph (h)(2)(i), by removing the phrase ``unless it is a 
multifamily dwelling loan (as described in appendix A to part 1003 of 
this title)'' and adding in its place the phrase ``unless the loan is 
for a multifamily dwelling (as defined in Sec.  1003.2(n) of this 
title)'';
0
e. By removing paragraph (j)(3) and redesignating paragraphs (j)(4) and 
(5) as paragraphs (j)(3) and (4); and
0
f. In paragraph (l), by removing the phrase ```home improvement loan,' 
`home purchase loan,' or a `refinancing' as defined in Sec.  1003.2 of 
this title'' and adding in its place the phrase ``closed-end mortgage 
loan or an open-end line of credit as these terms are defined under 
Sec.  1003.2 of this title and that is not an excluded transaction 
under Sec.  1003.3(c)(1) through (10) and (13) of this title''.


Sec.  195.22  [Amended]

0
8. Section 195.22 is amended in paragraph (a)(1) by removing the phrase 
``home equity,''.


Sec.  195.42  [Amended]

0
9. Section 195.42 is amended in paragraph (c)(1) introductory text by 
removing the phrase ``home equity,''.

0
10. Section 195.43 is amended by revising paragraph (b)(2) to read as 
follows:


Sec.  195.43  Content and availability of public file.

* * * * *
    (b) * * *
    (2) Savings associations required to report Home Mortgage 
Disclosure Act (HMDA) data. A savings association required to report 
home mortgage loan data pursuant part 1003 of this title shall include 
in its public file a written notice that the institution's HMDA 
Disclosure Statement may be obtained on the Consumer Financial 
Protection Bureau's (Bureau's) Web site at www.consumerfinance.gov/hmda. In addition, a savings association that elected to have the 
appropriate Federal banking agency consider the mortgage lending of an 
affiliate shall include in its public file the name of the affiliate 
and a written notice that the affiliate's HMDA Disclosure Statement may 
be obtained at the Bureau's Web site. The savings association shall 
place the written notice(s) in the public file

[[Page 55743]]

within three business days after receiving notification from the 
Federal Financial Institutions Examination Council of the availability 
of the disclosure statement(s).
* * * * *

Federal Reserve System

12 CFR Chapter II

Authority and Issuance

    For the reasons discussed in the SUPPLEMENTARY INFORMATION section, 
the Board of Governors of the Federal Reserve System amends part 228 of 
chapter II of title 12 of the Code of Federal Regulations as follows:

PART 228--COMMUNITY REINVESTMENT (REGULATION BB)

0
11. The authority citation for part 228 continues to read as follows:

    Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and 
2901 through 2908.


Sec.  228.12  [Amended]

0
12. Section 228.12 is amended:
0
a. By adding ``or'' at the end of paragraph (g)(3);
0
b. By removing ``; or'' at the end of (g)(4)(iii)(B) and adding a 
period in its place;
0
c. By removing paragraph (g)(5);
0
d. In paragraph (h)(2)(i), by removing the phrase ``unless it is a 
multifamily dwelling loan (as described in appendix A to part 1003 of 
this chapter)'' and adding in its place the phrase ``unless the loan is 
for a multifamily dwelling (as defined in Sec.  1003.2(n) of this 
title)'';
0
e. By removing paragraph (j)(3) and redesignating paragraphs (j)(4) and 
(5) as paragraphs (j)(3) and (4); and
0
f. In paragraph (l), by removing the phrase ```home improvement loan,' 
`home purchase loan,' or a `refinancing' as defined in Sec.  1003.2 of 
this title'' and adding in its place the phrase, ``closed-end mortgage 
loan or an open-end line of credit as these terms are defined under 
Sec.  1003.2 of this title and that is not an excluded transaction 
under Sec.  1003.3(c)(1) through (10) and (13) of this title''.


Sec.  228.22  [Amended]

0
13. Section 228.22 is amended in paragraph (a)(1) by removing the 
phrase ``home equity,''.


Sec.  228.42  [Amended]

0
14. Section 228.42 is amended in paragraph (c)(1) introductory text by 
removing the phrase ``home equity,''.

0
15. Section 228.43 is amended by revising paragraph (b)(2) to read as 
follows:


Sec.  228.43  Content and availability of public file.

* * * * *
    (b) * * *
    (2) Banks required to report Home Mortgage Disclosure Act (HMDA) 
data. A bank required to report home mortgage loan data pursuant part 
1003 of this title shall include in its public file a written notice 
that the institution's HMDA Disclosure Statement may be obtained on the 
Consumer Financial Protection Bureau's (Bureau's) Web site at 
www.consumerfinance.gov/hmda. In addition, a bank that elected to have 
the Board consider the mortgage lending of an affiliate shall include 
in its public file the name of the affiliate and a written notice that 
the affiliate's HMDA Disclosure Statement may be obtained at the 
Bureau's Web site. The bank shall place the written notice(s) in the 
public file within three business days after receiving notification 
from the Federal Financial Institutions Examination Council of the 
availability of the disclosure statement(s).
* * * * *

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

    For the reasons discussed in the SUPPLEMENTARY INFORMATION section, 
the Board of Directors of the Federal Deposit Insurance Corporation 
amends part 345 of chapter III of title 12 of the Code of Federal 
Regulations to read as follows:

PART 345--COMMUNITY REINVESTMENT

0
16. The authority citation for part 345 continues to read as follows:

    Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 2901-
2908, 3103-3104, and 3108(a).


Sec.  345.12  [Amended]

0
17. Section 345.12 is amended:
0
a. By adding ``or'' at the end of paragraph (g)(3);
0
b. By removing ``; or'' at the end of (g)(4)(iii)(B) and adding a 
period in its place;
0
c. By removing paragraph (g)(5);
0
d. In paragraph (h)(2)(i), by removing the phrase ``unless it is a 
multifamily dwelling loan (as described in appendix A to part 1003 of 
this title)'' and adding in its place the phrase ``unless the loan is 
for a multifamily dwelling (as defined in Sec.  1003.2(n) of this 
title)'';
0
e. By removing paragraph (j)(3) and redesignating paragraphs (j)(4) and 
(5) as paragraphs (j)(3) and (5); and
0
f. In paragraph (l), by removing the phrase ```home improvement loan,' 
`home purchase loan,' or a `refinancing' as defined in Sec.  1003.2 of 
this title'' and adding in its place the phrase ``closed-end mortgage 
loan or an open-end line of credit as these terms are defined under 
Sec.  1003.2 of this title and that is not an excluded transaction 
under Sec.  1003.3(c)(1) through (10) and (13) of this title''.


Sec.  345.22  [Amended]

0
18. Section 345.22 is amended in paragraph (a)(1) by removing the 
phrase ``home equity,''.


Sec.  345.42  [Amended]

0
19. Section 345.42 is amended in paragraph (c)(1) introductory text by 
removing the phrase ``home equity,''.

0
20. Section 345.43 is amended by revising paragraph (b)(2) to read as 
follows:


Sec.  345.43  Content and availability of public file.

* * * * *
    (b) * * *
    (2) Banks required to report Home Mortgage Disclosure Act (HMDA) 
data. A bank required to report home mortgage loan data pursuant part 
1003 of this title shall include in its public file a written notice 
that the institution's HMDA Disclosure Statement may be obtained on the 
Consumer Financial Protection Bureau's (Bureau's) Web site at 
www.consumerfinance.gov/hmda. In addition, a bank that elected to have 
the FDIC consider the mortgage lending of an affiliate shall include in 
its public file the name of the affiliate and a written notice that the 
affiliate's HMDA Disclosure Statement may be obtained at the Bureau's 
Web site. The bank shall place the written notice(s) in the public file 
within three business days after receiving notification from the 
Federal Financial Institutions Examination Council of the availability 
of the disclosure statement(s).
* * * * *

    Dated: November 14, 2017.
Keith A. Noreika,
Acting Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, November, 9, 2017.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
    Dated at Washington, DC, this 14th of November, 2017.

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2017-25396 Filed 11-22-17; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P