[Federal Register Volume 88, Number 72 (Friday, April 14, 2023)]
[Proposed Rules]
[Pages 22919-22920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07928]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 88, No. 72 / Friday, April 14, 2023 / 
Proposed Rules  

[[Page 22919]]



FEDERAL HOUSING FINANCE AGENCY

12 CFR Chapter XII

[No. 2023-N-5]


Notice of Regulatory Review

AGENCY: Federal Housing Finance Agency.

ACTION: Regulatory review; request for comment.

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SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing a notice 
of a regulatory review to be conducted in accordance with the process 
set forth in its Regulatory Review Plan published in February 2012, and 
is requesting comments on how its regulations may be made more 
effective and less burdensome.

DATES: Comments on this notice of regulatory review must be received no 
later than June 13, 2023.

ADDRESSES: You may submit your comments, identified by ``Regulatory 
Review [No. 2023-N-5]'', by any of the following methods:
     Agency website: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: https://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 FHFA. 
Please include ``Regulatory Review [No. 2023-N-5]'' in the subject line 
of the message.
     Hand Delivered/Courier: The hand delivery address is: 
Clinton Jones, General Counsel, Attention: Comments/``Regulatory Review 
[No. 2023-N-5],'' Federal Housing Finance Agency, 400 Seventh Street 
SW, Washington, DC 20219. Deliver the package at the Seventh Street 
entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 
p.m.
     U.S. Mail, United Parcel Service, Federal Express, or 
Other Mail Service: The mailing address for comments is: Clinton Jones, 
General Counsel, Attention: Comments/Regulatory Review [No. 2023-N-5], 
Federal Housing Finance Agency, 400 Seventh Street SW, Washington, DC 
20219. Please note that all mail sent to FHFA via U.S. Mail is routed 
through a national irradiation facility, a process that may delay 
delivery by approximately two weeks. For any time-sensitive 
correspondence, please plan accordingly.

FOR FURTHER INFORMATION CONTACT: Ellen S. Bailey, Managing Associate 
General Counsel, [email protected], (202) 649-3056; or Chris 
Bederka, Counsel, [email protected], (202) 649-3796, Federal 
Housing Finance Agency, Constitution Center, (OGC) Fourth Floor, 400 
Seventh Street SW, Washington, DC 20219. For TTY/TRS users with hearing 
and speech disabilities, dial 711 and ask to be connected to any of the 
contact numbers above.

SUPPLEMENTARY INFORMATION:

Comments

    All comments received will be posted without change and will 
include any personal information provided, such as your name, address, 
email address, and telephone numbers, on the FHFA website at https://www.fhfa.gov. In addition, copies of all comments received will be 
available for examination by the public through the electronic docket 
for this Notice also located on the FHFA website.

I. Background; FHFA's Regulatory Review Plan

    FHFA was established by the Housing and Economic Recovery Act of 
2008, Public Law 110-289, to supervise and regulate the Federal 
National Mortgage Association (Fannie Mae), the Federal Home Loan 
Mortgage Corporation (Freddie Mac) (together, the Enterprises), any 
affiliate of either Enterprise, the Federal Home Loan Banks (the 
Banks), and the Office of Finance of the Federal Home Loan Bank System 
(OF). In 2012, FHFA developed its Regulatory Review Plan (Review Plan) 
after considering principles set forth in Executive Order 13579, 
``Regulation and Independent Regulatory Agencies'' (July 11, 2011).\1\ 
Executive Order 13579 requested--but did not require--independent 
regulatory agencies, such as FHFA, to develop, release to the public, 
and implement a plan for the periodic review of their existing 
significant regulations to determine whether any regulation should be 
modified, streamlined, expanded, or repealed to make the agency's 
regulatory program more effective or less burdensome in achieving its 
objectives.
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    \1\ 77 FR 10351 (Feb. 22, 2012) (FHFA Regulatory Review Plan); 
see also 76 FR 41585 (July 14, 2011) (E.O. 13579).
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    Under its Review Plan, FHFA reviews its regulations at least every 
five years, except for those regulations that were adopted or 
substantially amended within the two years prior to issuance of a 
Notice of Regulatory Review and rules of agency organization, 
procedure, or practice. The Review Plan suggests factors that 
commenters should consider in order to assist FHFA with its regulatory 
review, including factors related to legal, regulatory, or market 
developments, regulatory overlap, less burdensome alternatives, and 
clarity of regulatory requirements.

II. Results of the 2018 Regulatory Review

    FHFA's most recent regulatory review was initiated in April 2018, 
by a Notice of Regulatory Review and request for comments and 
considered 52 regulations. FHFA received 11 total comment letters from 
trade associations, a research center associated with a major 
university, an insured depository institution, a credit union, and the 
Federal Home Loan Banks. FHFA also conducted an internal review of its 
regulations that were subject to the five-year Review Plan, seeking 
staff input on the same questions on which the Review Notice sought 
public comment.
    FHFA evaluated all comments received and determined that some 
amendments were warranted. In response to amendments to the Dodd-Frank 
Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111-
203, 124 Stat. 1376), and as requested by commenters, FHFA amended 12 
CFR part 1238 to remove the stress testing requirements for the 
Banks.\2\ Additionally, FHFA undertook a comprehensive amendment of its 
regulation on prior approval of Enterprise products, 12 CFR part 1253. 
In some cases, FHFA determined that a

[[Page 22920]]

suggestion should be considered when the underlying regulation was 
otherwise being amended by FHFA. In other cases, FHFA determined that 
an amendment was not necessary because, for example, the comment 
requested a clarification that could effectively be provided through 
another means (such as an interpretation or guidance).
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    \2\ 85 FR 16528 (Mar. 24, 2020) (Stress Testing of Regulated 
Entities).
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III. FHFA's 2023 Regulatory Review; Request for Comment

    Consistent with its Review Plan, FHFA's next regulatory review must 
begin not later than five years after its prior review, or in April 
2023. All current regulations--except, as noted, rules of agency 
organization, procedure, or practice, or regulations adopted or 
substantially amended since April 2021 (meaning, within the past two 
years)--are subject to review. If members of the public comment on 
recently adopted or amended regulations, FHFA may consider those 
comments, as it deems appropriate. FHFA does not anticipate responding 
to individual comments.
    Regulations administered by FHFA are published in chapter XII of 
title 12 of the Code of Federal Regulations, except for two regulations 
of predecessor agencies which FHFA has not yet moved.\3\ FHFA's 
regulations are also posted on the FHFA website at https://www.fhfa.gov.
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    \3\ These are a regulation of the former Office of Federal 
Housing Enterprise Oversight on Prompt Corrective Action related to 
the Enterprises, at 12 CFR part 1777, which FHFA has suspended due 
to the Enterprise conservatorships; and a regulation of the 
Department of Housing and Urban Development on public-use databases 
and public information provided by the Enterprises, at 24 CFR part 
81, subpart F.
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    FHFA hereby requests comment on its regulations for purposes of 
improving their effectiveness and reducing their burden. Factors that 
FHFA's Review Plan identifies as relevant to the review, and which FHFA 
suggests should guide commenters, are:
    (1) Legal or regulatory developments--including new laws, executive 
orders, or judicial decisions that have been adopted since the 
promulgation of a regulation--that make a regulation inefficient, 
obsolete, contrary to controlling legal precedent, or unduly 
burdensome;
    (2) Marketplace developments, technological evolution, and related 
changes that may have rendered a regulation, in whole or in part, 
inefficient, outmoded, or outdated;
    (3) The extent to which provisions of the regulation are written in 
plain language or need clarification;
    (4) Compelling evidence that a consolidation of two or more 
regulations, elimination of a duplicative regulation, or other revision 
to regulatory requirements would facilitate compliance by Fannie Mae, 
Freddie Mac, any affiliate of either Enterprise, the Banks, or OF with 
the regulation, or would improve supervision by FHFA of Fannie Mae, 
Freddie Mac, any affiliate of either Enterprise, the Banks, or OF; and
    (5) Demonstration of a better alternative method to effect a 
regulatory purpose or requirement, supported by compelling evidence of 
significantly less intrusive means or of a substantially more efficient 
method of accomplishing the same supervisory purpose.
    In accordance with FHFA's Review Plan, the 2023 regulatory review 
process will be conducted by the FHFA Office of General Counsel, which 
will review all comments received and consult with other FHFA offices 
and divisions. After that review, a report of findings and 
recommendations will be provided to the FHFA Director. The report of 
findings and recommendations will be privileged and confidential. After 
receiving the report of findings and recommendations, the Director will 
determine what steps may be necessary to relieve any unnecessary 
burden, including amendment to or repeal of existing regulations or 
issuance of less formal guidance.
    The 2023 FHFA regulatory review is not a formal or informal 
rulemaking proceeding under the Administrative Procedure Act and 
creates no right of action against FHFA. FHFA's determination whether 
to conduct or not to conduct a review of a regulation and any 
determination, finding, or recommendation resulting from any review is 
not a final agency action and therefore is not subject to judicial 
review.

Sandra L. Thompson,
Director, Federal Housing Finance Agency.
[FR Doc. 2023-07928 Filed 4-13-23; 8:45 am]
BILLING CODE 8070-01-P