80 FR 79673 - Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 80, Issue 246 (December 23, 2015)
Federal Register Volume 80, Issue 246 (December 23, 2015)
| Page Range | 79673-79674 | |
| FR Document | 2015-32285 |
[Federal Register Volume 80, Number 246 (Wednesday, December 23, 2015)] [Rules and Regulations] [Pages 79673-79674] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32285] ======================================================================= ----------------------------------------------------------------------- BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1003 Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold AGENCY: Bureau of Consumer Financial Protection. ACTION: Final rule; official commentary. ----------------------------------------------------------------------- SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is issuing a final rule amending the official commentary that interprets the requirements of the Bureau's Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The exemption threshold will remain at $44 million. This amendment is based on the 0.4 percent decrease in the average of the CPI-W for the 12-month period ending in November 2015. Therefore, banks, savings associations, and credit unions with assets of $44 million or less as of December 31, 2015, are exempt from collecting data in 2016. DATES: This final rule is effective January 1, 2016. FOR FURTHER INFORMATION CONTACT: James Wylie or Jaclyn Maier, Counsels, Office of Regulations, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Background The Home Mortgage Disclosure Act of 1975 (HMDA) (12 U.S.C. 2801- 2810) requires most mortgage lenders located in metropolitan areas to collect data about their housing-related lending activity. Annually, lenders must report that data to the appropriate Federal agencies and make the data available to the public. The Bureau's Regulation C (12 CFR part 1003) implements HMDA. Prior to 1997, HMDA exempted certain depository institutions as defined in HMDA (i.e., banks, savings associations, and credit unions) with assets totaling $10 million or less as of the preceding year-end. In 1996, HMDA was amended to expand the asset-size exemption for these depository institutions. 12 U.S.C. 2808(b). The amendment increased the dollar amount of the asset-size exemption threshold by requiring a one- time adjustment of the $10 million figure based on the percentage by which the CPI-W for 1996 exceeded the CPI-W for 1975, and it provided for annual adjustments thereafter based on the annual percentage increase in the CPI-W, rounded to the nearest multiple of $1 million dollars. The definition of ``financial institution'' in Regulation C provides that the Bureau will adjust the asset threshold based on the year-to-year change in the average of the CPI-W, not seasonally adjusted, for each 12-month period ending in November, rounded to the nearest million. 12 CFR 1003.2. For 2015, the threshold was $44 million. During the 12-month period ending in November 2015, the average of the CPI-W decreased by 0.4 percent. This results in a change of zero when rounded to the nearest million. Thus, the exemption threshold will remain at $44 million. Therefore, banks, savings associations, and credit unions with assets of $44 million or less as of December 31, 2015, are exempt from collecting data in 2016. An institution's exemption from collecting data in 2016 does not affect its responsibility to report data it was required to collect in 2015. II. Procedural Requirements A. Administrative Procedure Act Under the Administrative Procedure Act (APA), notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). Pursuant to this final rule, comment 1003.2 (Financial institution)-2 in Regulation C, supplement I is amended to update the exemption threshold. The amendment in this final rule is technical and non-discretionary, and it merely applies the formula established by Regulation C for determining any adjustments to the exemption threshold. For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendment is adopted in final form. Section 553(d) of the APA generally requires publication of a final rule not less than 30 days before its effective date, except for (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule. 5 U.S.C. 553(d). At a minimum, the Bureau believes the amendments fall under the third exception to section 553(d). The Bureau finds that there is good cause to make the amendments effective on January 1, 2016. The amendment in this final rule is technical and non- discretionary, and it applies the method previously established in the agency's regulations for determining adjustments to the threshold. [[Page 79674]] B. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a). C. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR 1320), the agency reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. List of Subjects in 12 CFR Part 1003 Banking, Banks, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations. Authority and Issuance For the reasons set forth in the preamble, the Bureau amends Regulation C, 12 CFR part 1003, as set forth below: PART 1003--HOME MORTGAGE DISCLOSURE (REGULATION C) 0 1. The authority citation for part 1003 continues to read as follows: Authority: 12 U.S.C. 2803, 2804, 2805, 5512, 5581. 0 2. In Supplement I to Part 1003, under Section 1003.2--Definitions, under the definition ``Financial institution'', paragraph 2 is revised to read as follows: Supplement I to Part 1003--Staff Commentary * * * * * Section 1003.2--Definitions * * * * * Financial Institution * * * * * 2. Adjustment of exemption threshold for banks, savings associations, and credit unions. For data collection in 2016, the asset-size exemption threshold is $44 million. Banks, savings associations, and credit unions with assets at or below $44 million as of December 31, 2015, are exempt from collecting data for 2016. * * * * * Dated: December 16, 2015. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2015-32285 Filed 12-22-15; 8:45 am] BILLING CODE 4810-AM-P
![Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Rules and Regulations 79673
(b) Secondary credit. The interest depository institutions under § 201.4(b)
rates for secondary credit provided to are:
Federal reserve bank Rate Effective
Boston ............................................................................ 1.50 December 17, 2015.
New York ........................................................................ 1.50 December 17, 2015.
Philadelphia .................................................................... 1.50 December 17, 2015.
Cleveland ........................................................................ 1.50 December 17, 2015.
Richmond ....................................................................... 1.50 December 17, 2015.
Atlanta ............................................................................ 1.50 December 17, 2015.
Chicago .......................................................................... 1.50 December 17, 2015.
St. Louis ......................................................................... 1.50 December 17, 2015.
Minneapolis .................................................................... 1.50 December 17, 2015.
Kansas City .................................................................... 1.50 December 17, 2015.
Dallas .............................................................................. 1.50 December 17, 2015.
San Francisco ................................................................. 1.50 December 17, 2015.
* * * * * I. Background An institution’s exemption from
By order of the Board of Governors of the The Home Mortgage Disclosure Act of collecting data in 2016 does not affect
Federal Reserve System, December 18, 2015. 1975 (HMDA) (12 U.S.C. 2801–2810) its responsibility to report data it was
Robert deV. Frierson, requires most mortgage lenders located required to collect in 2015.
Secretary of the Board. in metropolitan areas to collect data II. Procedural Requirements
[FR Doc. 2015–32295 Filed 12–22–15; 8:45 am] about their housing-related lending
activity. Annually, lenders must report A. Administrative Procedure Act
BILLING CODE 6210–02–P
that data to the appropriate Federal Under the Administrative Procedure
agencies and make the data available to Act (APA), notice and opportunity for
the public. The Bureau’s Regulation C public comment are not required if the
BUREAU OF CONSUMER FINANCIAL (12 CFR part 1003) implements HMDA. Bureau finds that notice and public
PROTECTION Prior to 1997, HMDA exempted comment are impracticable,
certain depository institutions as unnecessary, or contrary to the public
12 CFR Part 1003 defined in HMDA (i.e., banks, savings interest. 5 U.S.C. 553(b)(B). Pursuant to
associations, and credit unions) with this final rule, comment 1003.2
Home Mortgage Disclosure assets totaling $10 million or less as of (Financial institution)–2 in Regulation
(Regulation C) Adjustment to Asset- the preceding year-end. In 1996, HMDA C, supplement I is amended to update
Size Exemption Threshold was amended to expand the asset-size the exemption threshold. The
AGENCY: Bureau of Consumer Financial exemption for these depository amendment in this final rule is
Protection. institutions. 12 U.S.C. 2808(b). The technical and non-discretionary, and it
amendment increased the dollar amount merely applies the formula established
ACTION: Final rule; official commentary.
of the asset-size exemption threshold by by Regulation C for determining any
SUMMARY: The Bureau of Consumer requiring a one-time adjustment of the adjustments to the exemption threshold.
Financial Protection (Bureau) is issuing $10 million figure based on the For these reasons, the Bureau has
a final rule amending the official percentage by which the CPI–W for determined that publishing a notice of
commentary that interprets the 1996 exceeded the CPI–W for 1975, and proposed rulemaking and providing
requirements of the Bureau’s Regulation it provided for annual adjustments opportunity for public comment are
C (Home Mortgage Disclosure) to reflect thereafter based on the annual unnecessary. Therefore, the amendment
the asset-size exemption threshold for percentage increase in the CPI–W, is adopted in final form.
banks, savings associations, and credit rounded to the nearest multiple of $1 Section 553(d) of the APA generally
unions based on the annual percentage million dollars. requires publication of a final rule not
change in the average of the Consumer The definition of ‘‘financial less than 30 days before its effective
Price Index for Urban Wage Earners and institution’’ in Regulation C provides date, except for (1) a substantive rule
Clerical Workers (CPI–W). The that the Bureau will adjust the asset which grants or recognizes an
exemption threshold will remain at $44 threshold based on the year-to-year exemption or relieves a restriction; (2)
million. This amendment is based on change in the average of the CPI–W, not interpretive rules and statements of
the 0.4 percent decrease in the average seasonally adjusted, for each 12-month policy; or (3) as otherwise provided by
of the CPI–W for the 12-month period period ending in November, rounded to the agency for good cause found and
ending in November 2015. Therefore, the nearest million. 12 CFR 1003.2. For published with the rule. 5 U.S.C. 553(d).
banks, savings associations, and credit 2015, the threshold was $44 million. At a minimum, the Bureau believes the
unions with assets of $44 million or less During the 12-month period ending in amendments fall under the third
as of December 31, 2015, are exempt November 2015, the average of the CPI– exception to section 553(d). The Bureau
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from collecting data in 2016. W decreased by 0.4 percent. This results finds that there is good cause to make
in a change of zero when rounded to the the amendments effective on January 1,
DATES: This final rule is effective
nearest million. Thus, the exemption 2016. The amendment in this final rule
January 1, 2016. threshold will remain at $44 million. is technical and non-discretionary, and
FOR FURTHER INFORMATION CONTACT: Therefore, banks, savings associations, it applies the method previously
James Wylie or Jaclyn Maier, Counsels, and credit unions with assets of $44 established in the agency’s regulations
Office of Regulations, at (202) 435–7700. million or less as of December 31, 2015, for determining adjustments to the
SUPPLEMENTARY INFORMATION: are exempt from collecting data in 2016. threshold.
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![79674 Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Rules and Regulations
B. Regulatory Flexibility Act BUREAU OF CONSUMER FINANCIAL established by a creditor to pay for
PROTECTION property taxes and insurance premiums
Because no notice of proposed for certain first-lien higher-priced
rulemaking is required, the Regulatory 12 CFR Part 1026 mortgage loan transactions. TILA
Flexibility Act does not require an section 129(D) also generally permits an
initial or final regulatory flexibility Truth in Lending Act (Regulation Z) exemption from the higher-priced
analysis. 5 U.S.C. 603(a), 604(a). Adjustment to Asset-Size Exemption mortgage loan escrow requirement for a
Threshold creditor that meets certain requirements,
C. Paperwork Reduction Act
AGENCY: Bureau of Consumer Financial including any asset-size threshold the
In accordance with the Paperwork Protection. Bureau may establish.
Reduction Act of 1995 (44 U.S.C. 3506; In the 2013 Escrows Final Rule,1 the
ACTION: Final rule; official
5 CFR 1320), the agency reviewed this Bureau established such an asset-size
interpretation.
final rule. No collections of information threshold of $2,000,000,000, which
pursuant to the Paperwork Reduction SUMMARY: The Bureau is amending the would adjust automatically each year,
Act are contained in the final rule. official commentary that interprets the based on the year-to year change in the
requirements of the Bureau’s Regulation average of the CPI–W for each 12-month
List of Subjects in 12 CFR Part 1003 period ending in November, with
Z (Truth in Lending) to reflect a change
Banking, Banks, Credit unions, in the asset size threshold for certain rounding to the nearest million dollars.2
Mortgages, National banks, Reporting creditors to qualify for an exemption to For 2015, the threshold was $2.060
and recordkeeping requirements, the requirement to establish an escrow billion. The Bureau recently revised the
Savings associations. account for a higher-priced mortgage criteria for small creditors, and rural
loan based on the annual percentage and underserved areas, for purposes of
Authority and Issuance change in the average of the Consumer certain special provisions and
Price Index for Urban Wage Earners and exemptions from various requirements
For the reasons set forth in the provided to certain small creditors
preamble, the Bureau amends Clerical Workers (CPI–W) for the 12-
month period ending in November. The under the Bureau’s mortgage rules. As
Regulation C, 12 CFR part 1003, as set part of this revision the Bureau made
forth below: exemption threshold is adjusted to
decrease to $2.052 billion from $2.060 certain changes that affect how the
billion. The adjustment is based on the asset-size threshold applies. The Bureau
PART 1003—HOME MORTGAGE revised the rule to include in the
DISCLOSURE (REGULATION C) 0.4 percent decrease in the average of
the CPI–W for the 12-month period calculation of the asset-size threshold
ending in November 2015. Therefore, the assets of the creditor’s affiliates that
■ 1. The authority citation for part 1003 regularly extended covered transactions
continues to read as follows: creditors with assets of less than $2.052
billion (including assets of certain secured by first liens during the
Authority: 12 U.S.C. 2803, 2804, 2805, affiliates) as of December 31, 2015, are applicable period. The Bureau also
5512, 5581.
exempt, if other requirements of added a grace period from calendar year
Regulation Z also are met, from to calendar year to allow an otherwise
■ 2. In Supplement I to Part 1003, under eligible creditor that exceeded the asset
Section 1003.2—Definitions, under the establishing escrow accounts for higher-
priced mortgage loans in 2016. This limit in the preceding calendar year (but
definition ‘‘Financial institution’’, not in the calendar year before the
paragraph 2 is revised to read as asset limit will also apply during a grace
preceding year) to continue to operate as
follows: period, in certain circumstances, with
a small creditor with respect to
respect to transactions with applications
Supplement I to Part 1003—Staff transactions with applications received
received before April 1 of 2017. The
Commentary before April 1 of the current calendar
adjustment to the escrows exemption
year.3
* * * * * asset-size threshold will also decrease a
During the 12-month period ending in
similar threshold for small-creditor
Section 1003.2—Definitions November 2015, the average of the
portfolio and balloon-payment qualified
CPI–W decreased by 0.4 percent. As a
* * * * * mortgages. Balloon-payment qualified
result, the exemption threshold is
mortgages that satisfy all applicable
Financial Institution decreased to $2.052 billion for 2016.
criteria, including being made by
Thus, if the creditor’s assets together
* * * * * creditors that have (together with
with the assets of its affiliates that
2. Adjustment of exemption threshold certain affiliates) total assets below the
regularly extended first-lien covered
for banks, savings associations, and threshold, are also excepted from the
transactions during calendar year 2015
credit unions. For data collection in prohibition on balloon payments for
are less than $2.052 billion on December
2016, the asset-size exemption threshold high-cost mortgages.
31, 2015, and it meets the other
is $44 million. Banks, savings DATES: This final rule is effective requirements of § 1026.35(b)(2)(iii) it
associations, and credit unions with January 1, 2016. will be exempt in 2016 from the escrow-
assets at or below $44 million as of FOR FURTHER INFORMATION CONTACT: accounts requirement for higher-priced
December 31, 2015, are exempt from James Wylie or Jaclyn Maier, Counsels, mortgage loans and will also be exempt
collecting data for 2016. Office of Regulations, at (202) 435–7700. from the escrow-accounts requirement
asabaliauskas on DSK5VPTVN1PROD with RULES
* * * * * SUPPLEMENTARY INFORMATION: for higher-priced mortgage loans for
Dated: December 16, 2015. I. Background purposes of any loan consummated in
2017 for which the application was
Richard Cordray, The Dodd-Frank Wall Street Reform received before April 1, 2017. The
Director, Bureau of Consumer Financial and Consumer Protection Act (Dodd-
Protection. Frank Act) amended TILA section 1 78 FR 4726 (Jan. 22, 2013).
[FR Doc. 2015–32285 Filed 12–22–15; 8:45 am] 129D(a) to contain a general 2 See 12 CFR 1026.35(b)(2)(iii)(C).
BILLING CODE 4810–AM–P requirement that an escrow account be 3 See 80 FR 59943, 59951 (Oct. 2, 2015).
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Document Created: 2018-03-02 09:21:50
Document Modified: 2018-03-02 09:21:50
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; official commentary. | |
| Dates | This final rule is effective January 1, 2016. | |
| Contact | James Wylie or Jaclyn Maier, Counsels, Office of Regulations, at (202) 435-7700. | |
| FR Citation | 80 FR 79673 | |
| CFR Associated | Banking; Banks; Credit Unions; Mortgages; National Banks; Reporting and Recordkeeping Requirements and Savings Associations |
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