80 FR 81162 - Community Reinvestment Act Regulations

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION

Federal Register Volume 80, Issue 249 (December 29, 2015)

The OCC, the Board, and the FDIC (collectively, the Agencies) are amending their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define ``small bank'' or ``small savings association'' and ``intermediate small bank'' or ``intermediate small savings association.'' As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Agencies also propose to make technical edits to remove obsolete references to the Office of Thrift Supervision (OTS) and update cross-references to regulations implementing certain Federal consumer financial laws in their CRA regulations.

[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Rules and Regulations]
[Pages 81162-81165]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32670]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2015-0025]
RIN 1557-AE01

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1526]
RIN 7100-AE40

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD90


Community Reinvestment Act Regulations

AGENCY:  Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Joint final rule; technical amendment.

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SUMMARY: The OCC, the Board, and the FDIC (collectively, the Agencies) 
are amending their Community Reinvestment Act (CRA) regulations to 
adjust the asset-size thresholds used to define ``small bank'' or 
``small savings association'' and ``intermediate small bank'' or 
``intermediate small savings association.'' As required by the CRA 
regulations, the adjustment to the threshold amount is based on the 
annual percentage change in the Consumer Price Index for Urban Wage 
Earners and Clerical Workers (CPI-W). The Agencies also propose to make 
technical edits to remove obsolete references to the Office of Thrift 
Supervision (OTS) and update cross-references to regulations 
implementing certain Federal consumer financial laws in their CRA 
regulations.

DATES: January 1, 2016.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Margaret Hesse, Senior Counsel, Community and Consumer Law 
Division, (202) 649-6350; Priscilla Benner, Attorney, Legislative and 
Regulatory Activities Division, (202) 649-5490; for persons who are 
deaf or hard of hearing, TTY, (202) 649-5597; or Bobbie K. Kennedy, 
Bank Examiner, Compliance 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, (202) 912-7879; or Nikita Pastor, Counsel, (202) 452-
3667, Division of Consumer and Community Affairs, 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; or Richard M. Schwartz, Counsel, Legal Division, (202) 898-
7424, Federal Deposit Insurance Corporation, 550 17th Street NW., 
Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 

Background and Description of the Joint Final Rule

    The Agencies' CRA regulations establish CRA performance standards 
for small and intermediate small banks and savings associations. The 
CRA regulations define small and intermediate small banks and savings 
associations by reference to asset-size criteria expressed in dollar 
amounts, and they further require the Agencies to publish annual 
adjustments to these dollar figures based on the year-to-year change in 
the average of the CPI-W, not seasonally adjusted, for each twelve-
month period ending in November, with rounding to the nearest million. 
12 CFR 25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 345.12(u)(2). This 
adjustment formula was first adopted for CRA purposes by the OCC, the 
Board, and the FDIC on August 2, 2005, effective September 1, 2005. 70 
FR 44256 (Aug. 2, 2005). The Agencies noted that the CPI-W is also used 
in connection with other federal laws, such as the Home Mortgage 
Disclosure Act. See 12 U.S.C. 2808; 12 CFR 1003.2. On March 22, 2007, 
and effective July 1, 2007, the former OTS, the agency then responsible 
for regulating savings associations, adopted an annual adjustment 
formula consistent with that of the other federal banking agencies in 
its CRA rule previously set forth at 12 CFR 563e. 72 FR 13429 (Mar. 22, 
2007).
    Pursuant to the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act),\1\ and effective July 21, 2011, CRA 
rulemaking authority for federal and state savings associations was 
transferred from the OTS to the OCC, and the OCC subsequently 
republished, at 12 CFR 195, the CRA regulations applicable to those 
institutions.\2\ In addition, the Dodd-Frank Act transferred 
responsibility for supervision of savings and loan holding companies 
and their non-depository subsidiaries from the OTS to the Board and the 
Board subsequently amended its CRA regulation to reflect this transfer 
of supervisory authority.\3\
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    \1\ Pub. L. 111-203, 124 Stat. 1376 (2010).
    \2\ See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011).
    \3\ See Board interim final rule, 76 FR 56508 (Sept. 13, 2011).
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    The threshold for small banks and small savings associations was 
revised most recently in December 2014, and became effective January 1, 
2015 (79 FR 77852 (Dec. 29, 2014)). The current CRA regulations provide 
that banks and savings associations that, as of December 31 of either 
of the prior two calendar years, had assets of less than $1.221 billion 
are small banks or small savings associations. Small banks and small 
savings associations with assets of at least $305 million as of 
December 31 of both of the prior two calendar years and less than 
$1.221 billion as of December 31 of either of the prior two calendar 
years are intermediate small banks or intermediate small savings 
associations. 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 
345.12(u)(1). This joint final rule revises these thresholds.
    During the period ending November 2015, the CPI-W decreased by 0.42 
percent. As a result, the Agencies are revising 12 CFR 25.12(u)(1), 
195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) to make this annual 
adjustment. Beginning January 1, 2016, banks and savings associations 
that, as of December 31 of either of the prior two calendar years, had 
assets of less than $1.216 billion are small banks or small savings 
associations. Small banks and small savings associations with assets of 
at least $304 million as of December 31 of both of the prior two 
calendar years and less than $1.216 billion as of December 31 of either 
of the prior two calendar years are intermediate small banks or 
intermediate small savings associations. The Agencies also publish 
current and historical asset-size thresholds on the Web site of the 
Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/.

[[Page 81163]]

    In addition, the Agencies are making technical edits to 12 CFR 
25.42, 228.42, and 345.42 to remove obsolete references to the ``Office 
of Thrift Supervision'' and to 12 CFR 563e in the CRA rules. As 
explained above, Title III of the Dodd-Frank Act transferred the 
powers, authorities, rights, and duties of the OTS to the Agencies. 
Specifically, among other changes, Title III abolished the OTS; 
transferred rulemaking and supervisory authority over savings and loan 
holding companies and supervisory authority over their non-depository 
subsidiaries to the Board; transferred rulemaking authority over 
federal savings associations and state savings associations, and 
supervisory authority over federal savings associations, to the OCC; 
and transferred supervisory authority over state savings associations 
to the FDIC.\4\
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    \4\ See 12 U.S.C. 5412-5413.
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    Further, the Agencies are updating references to certain 
regulations implementing Federal consumer financial laws in the CRA 
regulations, as Title X of the Dodd-Frank Act transferred rulemaking 
authority for a number of Federal consumer financial laws, including 
the Home Mortgage Disclosure Act (HMDA) and the Truth in Lending Act 
(TILA), to the Consumer Financial Protection Bureau (CFPB), effective 
July 21, 2011. The CFPB subsequently published an interim final rule to 
establish its own Regulation C to implement HMDA,\5\ and also published 
an interim final rule to establish its own Regulation Z to implement 
TILA.\6\ Accordingly, the Agencies are updating the citations in the 
CRA regulations \7\ to reference the CFPB's Regulation C and Regulation 
Z, located at 12 CFR 1003 and 12 CFR 1026, respectively.
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    \5\ 12 CFR part 1003. See 76 FR 78465 (Dec. 19, 2011).
    \6\ 12 CFR part 1026. See 76 FR 79768 (Dec. 22, 2011).
    \7\ See 12 CFR 25.12(h)(2)(i), 25.12(j)(2), 25.12(l), 
25.42(b)(3), 25.42(d), 25.43(b)(2), 195.12(h)(2)(i), 195.12(j)(2), 
195.12(l), 195.42(b)(3), 195.42(d), 195.43(b)(2), 228.12(h)(2)(i), 
228.12(j)(2), 228.12(l), 228.42(b)(3), 228.42(d), 228.43(b)(2), 
345.12(h)(2)(i), 345.12(j)(2), 345.12(l), 345.42(b)(3), 345.42(d), 
and 345.43(b)(2).
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Administrative Procedure Act and Effective Date

    Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA), 
an agency may, for good cause, find (and incorporate the finding and a 
brief statement of reasons therefore in the rules issued) that notice 
and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest.
    The amendments to the regulations to adjust the asset-size 
thresholds for small and intermediate small banks and savings 
associations result from the application of a formula established by a 
provision in the respective CRA regulations that the Agencies 
previously published for comment. See 70 FR 12148 (Mar. 11, 2005), 70 
FR 44256 (Aug. 2, 2005), 71 FR 67826 (Nov. 24, 2006), and 72 FR 13429 
(Mar. 22, 2007). Sections 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 
345.12(u)(1) are amended by adjusting the asset-size thresholds as 
provided for in Sec. Sec.  25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 
345.12(u)(2).
    Accordingly, the Agencies' rules provide no discretion as to the 
computation or timing of the revisions to the asset-size criteria. 
Furthermore, deleting the obsolete references to the ``Office of Thrift 
Supervision'' and its CRA regulation and updating cross-references to 
reflect the transfer of rulemaking authority for many Federal consumer 
financial laws to the CFPB are technical and non-substantive revisions. 
For these reasons, the Agencies have determined that publishing a 
notice of proposed rulemaking and providing opportunity for public 
comment are unnecessary.
    The effective date of this joint final rule is January 1, 2016. 
Under 5 U.S.C. 553(d)(3) of the APA, the required publication or 
service of a substantive rule shall be made not less than 30 days 
before its effective date, except, among other things, as provided by 
the agency for good cause found and published with the rule. Because 
this rule adjusts asset-size thresholds consistent with the procedural 
requirements of the CRA rules, the Agencies conclude that it is not 
substantive within the meaning of the APA's delayed effective date 
provision. Moreover, the Agencies find that there is good cause for 
dispensing with the delayed effective date requirement, even if it 
applied, because their current rules already provide notice that the 
small and intermediate small asset-size thresholds will be adjusted as 
of December 31 based on twelve-month data as of the end of November 
each year. In addition, the technical edits to remove obsolete 
references to the ``Office of Thrift Supervision'' and its CRA rule in 
the Agencies' CRA rules and update citations to certain regulations are 
not substantive within the meaning of the APA's delayed effective date 
provision.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
when a general notice of proposed rulemaking is not required. 5 U.S.C. 
603 and 604. As noted previously, the Agencies have determined that it 
is unnecessary to publish a general notice of proposed rulemaking for 
this joint final rule. Accordingly, the RFA's requirements relating to 
an initial and final regulatory flexibility analysis do not apply.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506; 5 CFR 1320), the Agencies reviewed this final rule. No 
collections of information pursuant to the Paperwork Reduction Act are 
contained in the final rule.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded 
Mandates Act), 2 U.S.C. 1532, requires the OCC to prepare a budgetary 
impact statement before promulgating any final rule for which a general 
notice of proposed rulemaking was published. As discussed above, the 
OCC has determined that the publication of a general notice of proposed 
rulemaking is unnecessary. Accordingly, this joint final rule is not 
subject to section 202 of the Unfunded Mandates Act.

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

    For the reasons discussed in the preamble, 12 CFR parts 25 and 195 
are amended as follows:

[[Page 81164]]

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.


0
2. Section 25.12 is amended:
0
a. In paragraph (h)(2)(i), by removing ``part 203'' and adding ``part 
1003'' in its place;
0
b. In paragraph (j)(2), by removing ``Sec.  226.2'' and adding ``Sec.  
1026.2'' in its place;
0
c. In paragraph (l), by removing ``Sec.  203.2'' and adding ``Sec.  
1003.2'' in its place; and
0
d. By revising paragraph Sec.  25.12(u)(1).
    The revision reads as follows:


Sec.  25.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.216 billion. Intermediate small bank means a small bank 
with assets of at least $304 million as of December 31 of both of the 
prior two calendar years and less than $1.216 billion as of December 31 
of either of the prior two calendar years.
* * * * *


Sec.  25.42  [Amended]

0
3. Section 25.42 is amended:
0
a. In paragraphs (b)(3) and (d), by removing ``part 203'' and adding 
``part 1003'' in its place, wherever it appears; and
0
b. In paragraph (i), by removing ``, the Federal Deposit Insurance 
Corporation, and the Office of Thrift Supervision,'' and adding ``and 
the Federal Deposit Insurance Corporation,'' in its place, and by 
removing ``parts 228, 345, or 563e'' and adding ``parts 195, 228, or 
345'' in its place.


Sec.  25.43  [Amended]

0
4. Section 25.43 is amended in paragraph (b)(2) by removing ``part 
203'' and adding ``part 1003'' in its place.

PART 195--COMMUNITY REINVESTMENT

0
5. 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).

0
6. Section 195.12 is amended:
0
a. In paragraph (h)(2)(i), by removing ``part 203'' and adding ``part 
1003'' in its place;
0
b. In paragraph (j)(2), by removing ``Sec.  226.2'' and adding ``Sec.  
1026.2'' in its place;
0
c. In paragraph (l), by removing ``Sec.  203.2'' and adding ``Sec.  
1003.2'' in its place; and
0
d. By revising paragraph (u)(1).
    The revision is set forth below:


Sec.  195.12  Definitions.

* * * * *
    (u) Small savings association--(1) Definition. Small savings 
association means a savings association that, as of December 31 of 
either of the prior two calendar years, had assets of less than $1.216 
billion. Intermediate small savings association means a small savings 
association with assets of at least $304 million as of December 31 of 
both of the prior two calendar years and less than $1.216 billion as of 
December 31 of either of the prior two calendar years.
* * * * *


Sec.  195.42  [Amended]

0
7. Section 195.42 is amended in paragraphs (b)(3) and (d) by removing 
``part 203'' and adding ``part 1003'' in its place, wherever it 
appears.


Sec.  195.43  [Amended]

0
8. Section 195.43 is amended in paragraph (b)(2) by removing ``part 
203'' and adding ``part 1003'' in its place.

Federal Reserve System

12 CFR Chapter II

    For the reasons set forth in the preamble, 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
9. 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 et seq.


0
10. Section 228.12 is amended:
0
a. In paragraph (h)(2)(i), by removing ``part 203'' and adding ``part 
1003'' in its place;
0
b. In paragraph (j)(2), by removing ``Sec.  226.2'' and adding ``Sec.  
1026.2'' in its place;
0
c. In paragraph (l), by removing ``Sec.  203.2'' and adding ``Sec.  
1003.2'' in its place; and
0
d. Revising paragraph (u)(1).
    The revision reads as follows:


Sec.  228.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.216 billion. Intermediate small bank means a small bank 
with assets of at least $304 million as of December 31 of both of the 
prior two calendar years and less than $1.216 billion as of December 31 
of either of the prior two calendar years.
* * * * *


Sec.  228.42  [Amended]

0
11. Section 228.42 is amended:
0
a. In paragraphs (b)(3) and (d), by removing ``part 203'' and adding 
``part 1003'' in its place, wherever it appears; and
0
b. In paragraph (i), by removing ``, the Federal Deposit Insurance 
Corporation, and the Office of Thrift Supervision,'' and adding ``and 
the Federal Deposit Insurance Corporation,'' in its place, and by 
removing ``parts 25, 345, or 563e'' and adding ``parts 25, 195, or 
345'' in its place.


Sec.  228.43  [Amended]

0
12. Section 228.43 is amended in paragraph (b)(2), by removing ``part 
203'' and adding ``part 1003'' in its place.

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

    For the reasons set forth in the preamble, 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
13. 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).


0
14. Section 345.12 is amended:
0
a. In paragraph (h)(2)(i), by removing ``part 203'' and adding ``part 
1003'' in its place;
0
b. In paragraph (j)(2), by removing ``Sec.  226.2'' and adding ``Sec.  
1026.2'' in its place;
0
c. In paragraph (l), by removing ``Sec.  203.2'' and adding ``Sec.  
1003.2'' in its place; and
0
d. Revising paragraph (u)(1).
    The revision reads as follows:


Sec.  345.12  Definitions.

* * * * *

[[Page 81165]]

    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.216 billion. Intermediate small bank means a small bank 
with assets of at least $304 million as of December 31 of both of the 
prior two calendar years and less than $1.216 billion as of December 31 
of either of the prior two calendar years.
* * * * *


Sec.  345.42  [Amended]

0
15. Section 345.42 is amended:
0
a. In paragraphs (b)(3) and (d), by removing ``part 203'' and adding 
``part 1003'' in its place, wherever it appears; and
0
b. In paragraph (i), by removing ``, the Office of the Comptroller of 
the Currency, and the Office of Thrift Supervision,'' and adding ``and 
the Office of the Comptroller of the Currency,'' in its place, and by 
removing ``parts 25, 228, or 563e'' and adding ``parts 25, 195, or 
228'' in its place.


Sec.  345.43  [Amended]

0
16. Section 345.43 is amended in paragraph (b)(2) by removing ``part 
203'' and adding ``part 1003'' in its place.

    Dated: December 16, 2015.
Amy S. Friend,
Senior Deputy Comptroller and Chief Counsel.
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, December 16, 2015.
Robert deV. Frierson,
Secretary of the Board.

    By order of the Board of Directors.

    Dated at Washington, DC, this 15th day of December, 2015.
Federal Deposit Insurance Corporation.

Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-32670 Filed 12-28-15; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-6714-01-P