[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