[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Notices]
[Pages 9471-9472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03242]
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FEDERAL HOUSING FINANCE AGENCY
[No. 2020-N-5]
Proposed Collection; Comment Request
AGENCY: Federal Housing Finance Agency.
ACTION: Federal Home Loan Bank Capital Stock--60-day notice of
submission of information collection for approval from Office of
Management and Budget.
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SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the Federal Housing Finance Agency (FHFA) is seeking
public comments concerning an information collection known as ``Federal
Home Loan Bank Capital Stock,'' which has been assigned control number
2590-0002 by the Office of Management and Budget (OMB). FHFA intends to
submit the information collection to OMB for review and approval of a
three-year extension of the control number, which is due to expire on
April 30, 2020.
DATES: Interested persons may submit comments on or before April 20,
2020.
ADDRESSES: Submit comments to FHFA, identified by ``Proposed
Collection; Comment Request: `Federal Home Loan Bank Capital Stock,
(No. 2020-N-5)' '' by any of the following methods:
Agency Website: www.fhfa.gov/open-for-comment-or-input.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. If you submit your
comment to the Federal eRulemaking Portal, please also send it by email
to FHFA at [email protected] to ensure timely receipt by the agency.
Mail/Hand Delivery: Federal Housing Finance Agency, Eighth
Floor, 400 Seventh Street SW, Washington, DC 20219, ATTENTION: Proposed
Collection; Comment Request: ``Federal Home Loan Bank Capital Stock,
(No. 2020-N-5).''
We will post all public comments we receive without change,
including any personal information you provide, such as your name and
address, email address, and telephone number, on the FHFA website at
http://www.fhfa.gov. In addition, copies of all comments received will
be available for examination by the public through the electronic
comment docket for this PRA Notice also located on the FHFA website.
FOR FURTHER INFORMATION CONTACT: Jonathan F. Curtis, Financial Analyst,
Division of Federal Home Loan Bank Regulation,
[email protected], (202) 649-3321; or Eric Raudenbush, Associate
General Counsel, [email protected], (202) 649-3084, (these are
not toll-free numbers), Federal Housing Finance Agency, 400 Seventh
Street SW, Washington, DC 20219. The Telecommunications Device for the
Deaf is (800) 877-8339.
SUPPLEMENTARY INFORMATION:
A. Background
The Federal Home Loan Bank System consists of eleven regional
Federal Home Loan Banks (Banks) and the Office of Finance (a joint
office that issues and services the Banks' debt securities). The Banks
are wholesale financial institutions, organized under authority of the
Federal Home Loan Bank Act (Bank Act) to serve the public interest by
enhancing the availability of residential housing finance and community
lending credit through their member institutions and, to a limited
extent, through certain eligible nonmembers. Each Bank is structured as
a regional cooperative that is owned and controlled by member
institutions located within its district, which are also its primary
customers. An institution that is eligible for membership in a
particular Bank must purchase and hold a prescribed minimum amount of
the Bank's capital stock in order to become and remain a member of that
Bank. With limited exceptions, only an institution that is a member of
a Bank may obtain access to low cost secured loans, known as advances,
or other products provided by that Bank.
[[Page 9472]]
Section 6 of the Bank Act establishes capital requirements for the
Banks and requires FHFA to issue regulations prescribing uniform
capital standards applicable to all of the Banks.\1\ Section 6 also
establishes parameters relating to the Banks' capital structures and
requires that each Bank adopt a ``capital structure plan'' (capital
plan) to establish, within those statutory parameters, its own capital
structure and to establish requirements for, and govern transactions
in, the Bank's capital stock.\2\ FHFA's regulations on Bank Capital
Requirements, Capital Stock, and Capital Plans are located at 12 CFR
part 1277.
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\1\ See 12 U.S.C. 1426(a).
\2\ See 12 U.S.C. 1426(b), (c).
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B. Need For and Use of the Information Collection
Both the Bank Act and FHFA's regulations state that a Bank's
capital plan must require its members to maintain a minimum investment
in the Bank's capital stock, but both permit each Bank to determine for
itself what that minimum investment is and how each member's required
minimum investment is to be calculated.\3\ Although each Bank's capital
plan establishes a slightly different method for calculating the
required minimum stock investment for its members, each Bank's method
is tied to some degree to both the level of assets held by the member
institution (typically referred to as a ``membership stock purchase
requirement'') and the amount of advances or other business engaged in
between the member and the Bank (typically referred to as an
``activity-based stock purchase requirement'').
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\3\ See 12 U.S.C. 1426(c)(1); 12 CFR 1277.22, 1277.28(a).
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A Bank must collect information from its members to determine the
minimum capital stock investment each member is required to maintain at
any point in time. Although the information needed to calculate a
member's required minimum investment and the precise method through
which it is collected differ somewhat from Bank to Bank, the Banks
typically collect two types of information. First, in order to
calculate and monitor compliance with its membership stock purchase
requirement, a Bank typically requires each member to provide and/or
confirm an annual report on the amount and types of assets held by that
institution. Second, each time a Bank engages in a business transaction
with a member, the Bank typically confirms with the member the amount
of additional Bank capital stock, if any, the member must acquire in
order to satisfy the Bank's activity-based stock purchase requirement
and the method through which the member will acquire that stock.
The OMB number for the information collection is 2590-0002, which
is due to expire on April 30, 2020. The likely respondents include
current and former Bank members and institutions applying for Bank
membership.
C. Burden Estimate
FHFA has analyzed the time burden imposed on respondents by the two
collections under this control number and estimates that the average
total annual hour burden imposed on all respondents over the next three
years will be 15,045 hours. The estimate for each collection was
calculated as follows:
1. Membership Stock Purchase Requirement Submissions
FHFA estimates that the average annual number of current and former
members and applicants for membership required to report information
needed to calculate a membership stock purchase requirement will be
6,950, and that each institution will submit one report per year,
resulting in an estimated total of 6,950 submissions annually. The
estimate for the average time required to prepare, review, and submit
each report is 0.5 hours. Accordingly, the estimate for the annual hour
burden associated with membership stock purchase requirement
submissions is (6,950 reports x 0.5 hours per report) = 3,475 hours.
2. Activity-Based Stock Purchase Requirement Submissions
FHFA estimates that the average number of daily transactions
between Banks and members that will require the exchange of information
to confirm the member's activity-based stock purchase requirement will
be 341, and that there will be an average of 261 working days per year,
resulting in an estimated 89,001 submissions annually. The estimate for
the average preparation time per submission is 0.13 hours. Accordingly,
the estimate for the annual hour burden associated with activity-based
stock purchase requirement submissions is (89,001 submissions x 0.13
hours per submission) = 11,570 hours.
D. Comment Request
FHFA requests written comments on the following: (1) Whether the
collection of information is necessary for the proper performance of
FHFA functions, including whether the information has practical
utility; (2) the accuracy of FHFA's estimates of the burdens of the
collection of information; (3) ways to enhance the quality, utility,
and clarity of the information collected; and (4) ways to minimize the
burden of the collection of information on respondents, including
through the use of automated collection techniques or other forms of
information technology.
Dated: February 11, 2020.
Kevin Winkler,
Chief Information Officer, Federal Housing Finance Agency.
[FR Doc. 2020-03242 Filed 2-18-20; 8:45 am]
BILLING CODE 8070-01-P