[Federal Register Volume 82, Number 245 (Friday, December 22, 2017)]
[Rules and Regulations]
[Pages 60673-60674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27491]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 82, No. 245 / Friday, December 22, 2017 /
Rules and Regulations
[[Page 60673]]
FEDERAL RESERVE SYSTEM
12 CFR Part 203
[Regulation C; Docket No. R-1590]
RIN 7100 AE-92
Home Mortgage Disclosure
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is repealing its Regulation C, which was issued to implement the Home
Mortgage Disclosure Act (HMDA). Title X of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act) transferred
rulemaking authority for a number of consumer financial protection
laws, including HMDA, from the Board to the Bureau of Consumer
Financial Protection (Bureau). HMDA requires covered financial
institutions to collect and report loan data in connection with
residential mortgage applications and loans. Although the Board retains
authority to issue some consumer financial protection rules, all
rulemaking authority under HMDA concerning mortgage loan transactions
was transferred to the Bureau. In December 2011, the Bureau published
an interim final rule establishing its own Regulation C to implement
HMDA, which superseded the Board's Regulation C. In October 2015, the
Bureau revised its own Regulation C to expand and revise the data
collection and reporting regime required under HMDA, as amended by the
Dodd-Frank Act. In April 2016, the Bureau published a final rule
adopting the December 2011 interim final rule, as revised by the
October 2015 final rule. Accordingly, the Board is repealing its
Regulation C and the Official Staff Commentary that accompanies the
regulation.
DATES: The final rule is effective January 22, 2018.
FOR FURTHER INFORMATION CONTACT: Nikita M. Pastor, Senior Counsel,
Division of Consumer and Community Affairs, at (202) 452-3667, Board of
Governors of the Federal Reserve System, 20th and C Streets NW,
Washington, DC 20551. For users of Telecommunications Device for the
Deaf (TDD) only, contact (202) 263-4869.
SUPPLEMENTARY INFORMATION:
I. Background
The Home Mortgage Disclosure Act (HMDA), 12 U.S.C. 2801 et seq.,
historically was implemented by the Board's Regulation C, published at
12 CFR part 203. The purpose of the act and regulation is to provide
the public with sufficient information about mortgage loans to
determine whether financial institutions are serving the housing credit
needs of their communities; encourage private investments to areas in
need; and collect and report applicant and borrower characteristic data
to identify potential lending discrimination. Accordingly, HMDA
requires covered financial institutions to report loan data in
connection with mortgage loan applications.
Title X of the Dodd-Frank Act transferred rulemaking authority for
a number of consumer financial protection laws from the Board to the
Bureau, effective July 21, 2011, with some exceptions. In connection
with the transfer of the Board's rulemaking authority for HMDA, the
Bureau published an interim final rule to establish its own Regulation
C, 12 CFR part 1003, to implement HMDA (Bureau Interim Final Rule).\1\
In October 2015, the Bureau finalized its own Regulation C, including
rules that expand and revise the data collection and reporting regime
required under HMDA, as amended by the Dodd-Frank Act.\2\ In April
2016, the Bureau published a final rule adopting the December 2011
interim final rule, as revised by the October 2015 final rule.
Accordingly, the Board is repealing its Regulation C and the Official
Staff Commentary that accompanies the regulation.\3\
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\1\ 12 CFR part 1003. See 76 FR 78465 (Dec. 19, 2011).
\2\ See Home Mortgage Disclosure (Regulation C), 80 FR 66128
(Oct. 28, 2015), as amended by 82 FR 43088 (Sept. 13, 2017).
\3\ See 81 FR 25323 (April 28, 2016).
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Under Section 1029(a) of the Dodd-Frank Act, the Board generally
retains authority to issue rules for certain motor vehicle dealers that
are predominantly engaged in the sale and servicing of motor vehicles,
the leasing and servicing of motor vehicles, or both. For purposes of
Section 1029, a ``motor vehicle'' is defined to include, among other
things, motor homes, recreational vehicle trailers (RVs) and
recreational boats.\4\ The Dodd-Frank Act also provided several
exceptions to the Board's rulemaking authority over motor vehicle
dealers. Specifically, Section 1029(b)(1) of the Dodd-Frank Act
provides that the Board's rulemaking authority does not apply to any
motor vehicle dealer to the extent that the motor vehicle dealer
``provides consumers with any services related to residential or
commercial mortgages or self-financing transactions involving real
property.'' \5\ Thus, all rulemaking authority under HMDA concerning
mortgage loan transactions was transferred to the Bureau. Accordingly,
on February 22, 2016 (81 FR 8667), the Board published a proposal to
repeal its Regulation C (Proposed Rule).
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\4\ Dodd-Frank Act, Public Law 111-2033, Section 1029(f)(1).
\5\ Dodd-Frank Act, Public Law 111-2033, Section 1029(b)(1).
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II. Discussion
Two commenters responded to the proposed repeal of the Board's
Regulation C. These commenters supported the Board's proposal to repeal
its Regulation C in order to avoid confusion and simplify compliance.
The Board is finalizing the repeal of Regulation C, as proposed.
As discussed in the proposal, entities that are subject to HMDA
must collect and report loan data to the appropriate federal agency on
its housing-related loan activities (i.e., mortgage loan applications).
HMDA's requirements concerning mortgage loans were implemented in
Regulation C to apply to home purchase loans secured by a dwelling (or
refinancings) and home improvement loans.\6\ The Dodd-Frank
[[Page 60674]]
Act transferred the Board's rulemaking authority under HMDA and other
enumerated consumer protection laws to the Bureau, but Section 1029 of
the Dodd-Frank Act also preserved the Board's rulemaking authority over
certain motor vehicle dealers, with some exceptions. The rulemaking
authority retained by the Board under Section 1029, however, does not
extend to residential or commercial mortgages or self-financing
transactions involving real property.\7\ Thus, all rulemaking authority
under HMDA, which pertains only to mortgage loan transactions, was
transferred to the Bureau. The repeal of the Board's Regulation C, 12
CFR part 203, also repeals the Official Staff Commentary that
accompanies the regulations.
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\6\ Regulation C covers loans secured by a ``dwelling,'' which
is defined as any residential structure, whether or not it is
attached to real property, which would include mobile homes or
manufactured homes. 12 CFR 1003.2. Under the Bureau's 2015 final
rule, however, recreational vehicles used as a residence are not
covered as dwellings for purposes of HMDA. See 80 FR 66128, 66145
(Oct. 28, 2015).
\7\ Section 1029(b)(1) of the Dodd-Frank Act states: Subsection
(a) shall not apply to any person, to the extent such person (1)
provides consumers with any services related to residential or
commercial mortgages or self-financing transaction involving real
property. . . .'' 12 U.S.C. 5519(b).
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III. Final Regulatory Flexibility Analysis
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA)
generally requires an agency to perform an assessment of the impact a
rule is expected to have on small entities. Based on its analysis, and
for the reasons stated below, the Board believes that this final rule
will not have a significant economic impact on a substantial number of
small entities.
1. Statement of the need for, and objectives of, the proposed rule.
As noted above, title X of the Dodd-Frank Act transferred rulemaking
authority for HMDA and other enumerated consumer financial protection
laws from the Board to the Bureau, effective July 21, 2011. Although
the Board retains authority to issue some consumer financial protection
rules, all rulemaking authority under HMDA concerning mortgage loan
transactions was transferred to the Bureau. In December 2011, the
Bureau issued an Interim Final Rule to implement HMDA pursuant to the
transfer of rulemaking authority, as amended further by final rules
issued by the Bureau in October 2015, pursuant to the Dodd-Frank Act.
Accordingly, the Board is repealing the Board's Regulation C, 12 CFR
part 203, and the Official Staff Commentary that accompanies the
regulation, which has been superseded by the final rules issued by the
Bureau.
2. Summary of issues raised by comments in response to the initial
regulatory flexibility analysis. The Board did not receive any comments
on the initial regulatory flexibility analysis.
3. Small entities affected by the final rule. Any entity that is
currently covered by HMDA is subject to the rules issued by the Bureau,
located in 12 CFR part 1003. Therefore the Board believes the repeal of
its Regulation C will not affect any entity, including any small
entity.
4. Recordkeeping, reporting, and compliance requirements. The final
rule repeals the Board's Regulation C, 12 CFR part 203, and therefore
does not impose any recordkeeping, reporting, or compliance
requirements on any entities.
5. Significant alternatives to the final revisions. Because the
repeal of Regulation C will have no impact, there are no alternatives
that would further minimize the economic impact of the final rule on
small entities.
IV. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (PRA) of 1995 (44
U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board reviewed the rule
under the authority delegated to the Federal Reserve by the Office of
Management and Budget (OMB). The final rule contains no collections of
information under the PRA. See 44 U.S.C. 3502(3). Accordingly, there is
no paperwork burden associated with the final rule.
List of Subjects in 12 CFR Part 203
Banks, Banking, Federal Reserve System, Mortgages, Reporting and
recordkeeping requirements.
PART 203--[REMOVED AND RESERVED]
0
For the reasons set forth in the preamble, under the authority of 12
U.S.C. 5581, the Board removes and reserves Regulation C, 12 CFR part
203.
By order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-27491 Filed 12-21-17; 8:45 am]
BILLING CODE 6210-01-P