81 FR 43028 - Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment
FEDERAL HOUSING FINANCE AGENCY Federal Register Volume 81, Issue 127 (July 1, 2016)
Federal Register Volume 81, Issue 127 (July 1, 2016)
| Page Range | 43028-43031 | |
| FR Document | 2016-15619 |
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)] [Rules and Regulations] [Pages 43028-43031] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15619] ======================================================================= ----------------------------------------------------------------------- FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1209 and 1250 RIN 2590-AA88 Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment AGENCY: Federal Housing Finance Agency. ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing this interim final rule amending its Rules of Practice and Procedure and other agency regulations to adjust each civil money penalty within its jurisdiction to account for inflation, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. If, prior to the effective date of the interim final rule, FHFA does not receive any comments from which FHFA concludes that the rule should be revised, this rule will become final without further action by FHFA. DATES: Effective date: August 1, 2016. Comment date: Comments on the interim final rule must be received prior to August 1, 2016. ADDRESSES: You may submit your comments, identified by regulatory information number (RIN) 2590-AA88, by any of the following methods: Agency Web site: 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 comments to the Federal eRulemaking Portal, please also send it by email to FHFA at [email protected] to ensure timely receipt by the agency. Please include ``RIN 2590-AA88'' in the subject line of the message. Hand Delivery/Courier: The hand delivery address is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA88, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. The package should be delivered to 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: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA88, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. Copies of all comments will be posted without change, including any personal information you provide, such as your name, address, or phone number, on the FHFA Internet Web site at http://www.fhfa.gov. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649-3804. FOR FURTHER INFORMATION CONTACT: Stephen E. Hart, Deputy General Counsel, at (202) 649-3053, [email protected], or Frank R. Wright, Senior Counsel, at (202) 649-3087, [email protected] (not toll-free numbers); Federal Housing Finance Agency, 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is: (800) 877-8339 (TDD only). SUPPLEMENTARY INFORMATION: I. Background FHFA is an independent agency of the Federal government and the financial safety and soundness regulator of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), the Federal Home Loan Banks (collectively, the Banks), and the Banks' Office of Finance under authority granted by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act).\1\ FHFA oversees the Enterprises and Banks (collectively, the regulated entities) to ensure that they operate in a safe and sound manner and maintain liquidity in the housing finance market in accordance with applicable laws, rules, and regulations. To that end, FHFA is vested with broad supervisory discretion and specific civil administrative enforcement powers, similar to such authority granted by Congress to the Federal bank regulatory agencies.\2\ --------------------------------------------------------------------------- \1\ See Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Public Law 102-550, 106 Stat. 4078 (Oct. 28, 1992) as amended by the Federal Housing Finance Regulatory Reform Act of 2008, Public Law 110-289, 122 Stat. 2654, sections 1101 et seq. (July 30, 2008). \2\ See Safety and Soundness Act, 12 U.S.C. 4513 and 4631-4641. --------------------------------------------------------------------------- Section 1376 of the Safety and Soundness Act (12 U.S.C. 4636) empowers FHFA to impose civil money penalties under specific conditions. FHFA's Rules of Practice and Procedure regulation (12 CFR part 1209) govern cease and desist proceedings, civil money penalty assessment proceedings, and other administrative adjudications.\3\ FHFA's Flood Insurance regulation (12 CFR part 1250) governs flood insurance responsibilities as they pertain to the [[Page 43029]] Enterprises.\4\ FHFA's Implementation of the Program Fraud Civil Remedies Act of 1986 regulation (12 CFR part 1217) sets forth procedures for imposing civil penalties and assessments under the Program Fraud Civil Remedies Act (31 U.S.C. 3801 et seq.) on any person that makes a false claim for property, services or money from FHFA, or makes a false material statement to FHFA in connection with a claim, where the amount involved does not exceed $150,000.\5\ --------------------------------------------------------------------------- \3\ See 12 CFR part 1209. \4\ See 12 CFR part 1250. \5\ See generally, 31 U.S.C. 3801 et seq. --------------------------------------------------------------------------- The Adjustment Improvements Act The Federal Civil Penalties Inflation Adjustment Act of 1990 (``Inflation Adjustment Act''), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (``Adjustment Improvements Act''), requires FHFA, as well as other Federal agencies with the authority to issue civil money penalties (CMPs), to adjust by regulation the maximum amount of each CMP authorized by law that the agency has jurisdiction to administer.\6\ The Adjustment Improvements Act requires agencies to make an initial ``catch-up'' adjustment of their CMPs upon the statute's enactment, and further requires agencies to make additional adjustments on an annual basis following the initial adjustment.\7\ --------------------------------------------------------------------------- \6\ See 28 U.S.C. 2461 note. \7\ The Adjustment Improvements Act superseded the Debt Collection Improvement Act of 1996, which was used to prepare FHFA's Civil Money Penalty Inflation Adjustment rule, published at 81 FR 8369 (February 22, 2016.). --------------------------------------------------------------------------- The Adjustment Improvements Act provides that the initial catch-up adjustment must be implemented by an interim final rule and will be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for October 2015 and the CPI-U for the month of October in the year that the civil money penalty was established or adjusted under a provision of law other than the Inflation Adjustment Act. Previous inflation adjustments made under the Inflation Adjustment Act prior to the Adjustment Improvements Act are not considered in making the catch-up adjustment.\8\ In the future, annual inflation adjustments will be based on the percent change between the October CPI-U preceding the date of the adjustment and the October CPI-U for the year before that. --------------------------------------------------------------------------- \8\ Earlier inflation adjustments such as those issued in 81 FR 8369 are not considered in determining the amount of the catch-up adjustment. --------------------------------------------------------------------------- II. Differences Between the Federal Home Loan Banks and the Enterprises When promulgating any regulation that may have future effect relating to the Banks, the Director is required by section 1313(f) of the Safety and Soundness Act to consider the differences between the Banks and the Enterprises with respect to the Banks' cooperative ownership structure; mission of providing liquidity to members; affordable housing and community development mission; capital structure; and joint and several liability (12 U.S.C. 4513(f)).\9\ The Director considered the differences between the Banks and the Enterprises, as they relate to the above factors, and determined that this interim final rule is appropriate. In sum, the five differences identified in section 1313(f) of the Safety and Soundness Act do not require a different enforcement regulation for the Banks than for the Enterprises, and in any event, the inflation adjustments effected by the interim final rule are mandated by law. --------------------------------------------------------------------------- \9\ So in original; no paragraphs (d) and (e) were enacted. See 12 U.S.C.A. 4513 n 1. --------------------------------------------------------------------------- III. Description of the Rule This interim final rule adjusts the maximum penalty amount within each of the three tiers specified in 12 U.S.C. 4636 by amending the table contained in 12 CFR 1209.80 to reflect the new adjusted maximum penalty amount that FHFA may impose upon a regulated entity or any entity-affiliated party within each tier. The increases in maximum penalty amounts contained in this interim final rule may not necessarily affect the amount of any CMP that FHFA may seek for a particular violation, which may not be the maximum that the law allows; FHFA would calculate each CMP on a case-by-case basis in light of a variety of factors.\10\ This rule also adjusts the maximum penalty amounts for violations under the FHFA Flood Insurance regulation by amending the text of 12 CFR 1250.3 to reflect the new adjusted maximum penalty amount that FHFA may impose for violations under that regulation. FHFA has adjusted the maximum amounts for penalties under the Program Fraud Civil Remedies Act in a separate rule required by that Act, which was also published today in this edition of the Federal Register. --------------------------------------------------------------------------- \10\ See, e.g., 12 CFR 1209.7(c); FHFA Enforcement Policy, AB 2013-03 (May 31, 2013). --------------------------------------------------------------------------- The Adjustment Improvements Act directs federal agencies to calculate each initial catch-up CMP adjustment as the percent change between the CPI-U for October 2015 and the CPI-U for October of the calendar year in which the amount of each CMP was set.\11\ The maximum CMP amounts for FHFA penalties under 12 U.S.C. 4636 were set in 2008.\12\ Since FHFA is making this round of catch-up adjustments in calendar year 2016, and the maximum CMP amounts were last set in calendar year 2008, the inflation adjustment amount for each maximum CMP amount was calculated by comparing the CPI-U for October 2008 with the CPI-U for October 2015, resulting in an inflation factor of 1.09819. For each maximum CMP amount, the product of this inflation adjustment and the previous maximum penalty amount was then rounded to the nearest whole dollar as required by the Adjustment Improvements Act, and was then summed with the previous maximum penalty amount to determine the new adjusted maximum penalty amount.\13\ The table below sets out these items accordingly. --------------------------------------------------------------------------- \11\ For the initial adjustment under the Adjustment Improvements Act a CMP is considered to have been set in the calendar year during which the amount of such CMP was established or adjusted under a provision of law other than the Inflation Adjustment Act. \12\ See 12 U.S.C. 4636. \13\ 28 U.S.C. 2461 note. ---------------------------------------------------------------------------------------------------------------- Previous New adjusted maximum Rounded maximum U.S. Code citation Description penalty inflation penalty amount increase amount ---------------------------------------------------------------------------------------------------------------- 12 U.S.C. 4636(b)(1).................. First Tier.............. 10,000 982 10,982 12 U.S.C. 4636(b)(2).................. Second Tier............. 50,000 4910 54,910 12 U.S.C. 4636(b)(4).................. Third Tier (Entity- 2,000,000 196,380 2,196,380 affiliated party and Regulated entity). ---------------------------------------------------------------------------------------------------------------- [[Page 43030]] The CMP for FHFA penalties under the Flood Insurance regulation were set in 2009.\14\ Since FHFA is making this round of adjustments in calendar year 2016, and the maximum CMP amounts were last set in calendar year 2009, the inflation adjustment amount for each maximum CMP amount was calculated by comparing the CPI-U for October 2009 with the CPI-U for October 2015, resulting in an inflation factor of 1.10020. The table below sets out these items accordingly. --------------------------------------------------------------------------- \14\ See 74 FR 2347, 2349 (Jan. 15, 2009). ---------------------------------------------------------------------------------------------------------------- Previous New adjusted maximum Rounded maximum U.S. Code citation Description penalty inflation penalty amount increase amount ---------------------------------------------------------------------------------------------------------------- 42 U.S.C. 4012a(f)(5)................. Maximum penalty per 485 49 534 violation. 42 U.S.C. 4012a(f)(5)................. Maximum total penalties 140,000 14,028 154,028 assessed against an Enterprise in a calendar year. ---------------------------------------------------------------------------------------------------------------- IV. Regulatory Impact Administrative Procedure Act FHFA finds good cause that notice and an opportunity to comment on this interim final rule are unnecessary under section 553(b) of the Administrative Procedure Act (APA), 5 U.S.C. 553(b). This rulemaking conforms with and is consistent with the statutory directive set forth in the Inflation Adjustment Act. As a result, there are no issues of policy discretion about which to seek public comment. Furthermore, the rule is mandated by the Adjustment Improvements Act to be adopted in interim final form. Accordingly, FHFA is issuing the amendments as an interim final rule. In addition, FHFA finds good cause to make this rule effective thirty days after publication of this document in the Federal Register under the APA. The rule adjusts the amount of each CMP tier as dictated by the Inflation Adjustment Act, and, as noted above, is mandated by the Adjustment Improvements Act to be adopted as an interim final rule, presumptively with no greater delayed effective date than the APA otherwise provides. Regulatory Flexibility Act Pursuant to the Regulatory Flexibility Act (RFA),\15\ an agency must prepare a regulatory flexibility analysis for all proposed and final rules that describes the impact of the rule on small entities, unless the head of an agency certifies that the rule will not have ``a significant economic impact on a substantial number of small entities.'' However, the RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to the APA,\16\ and FHFA is required by statute to issue this rule as an interim final rule. As a result FHFA has determined for good cause that the APA does not require a general notice of proposed rulemaking for this rule. Thus, the RFA does not apply to this interim final rule. --------------------------------------------------------------------------- \15\ 5 U.S.C. 603. \16\ 5 U.S.C. 603(a), 604(a). --------------------------------------------------------------------------- Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) requires that regulations involving the collection of information receive clearance from the Office of Management and Budget (OMB). This rule contains no such collection of information requiring OMB approval under the Paperwork Reduction Act. Consequently, no information has been submitted to OMB for review. List of Subjects 12 CFR Part 1209 Administrative practice and procedure, Penalties. 12 CFR Part 1250 Flood insurance, Government-sponsored enterprises, Penalties, Reporting and record keeping requirements. Accordingly, for the reasons stated in the SUPPLEMENTARY INFORMATION and under the authority of 12 U.S.C. 4513b and 12 U.S.C. 4526, the Federal Housing Finance Agency hereby amends subchapters A and C of chapter XII of Title 12 of the Code of Federal Regulations as follows: PART 1209--RULES OF PRACTICE AND PROCEDURE 0 1. The authority citation for part 1209 continues to read as follows: Authority: 5 U.S.C. 554, 556, 557, and 701 et seq.; 12 U.S.C. 1430c(d); 12 U.S.C. 4501, 4502, 4503, 4511, 4513, 4513b, 4517, 4526, 4566(c)(1) and (c)(7), 4581-4588, 4631-4641; and 28 U.S.C. 2461 note. 0 2. Revise Sec. 1209.80 to read as follows: Sec. 1209.80 Inflation adjustments. The maximum amount of each civil money penalty within FHFA's jurisdiction, as set by the Safety and Soundness Act and thereafter adjusted in accordance with the Inflation Adjustment Act, is as follows: ------------------------------------------------------------------------ New adjusted U.S. Code citation Description maximum penalty amount ------------------------------------------------------------------------ 12 U.S.C. 4636(b)(1).............. First Tier.......... $10,982 12 U.S.C. 4636(b)(2).............. Second Tier......... 54,910 12 U.S.C. 4636(b)(4).............. Third Tier 2,196,380 (Regulated Entity or Entity- Affiliated party). ------------------------------------------------------------------------ 0 3. Revise Sec. 1209.81 to read as follows: Sec. 1209.81 Applicability. The inflation adjustments set out in Sec. 1209.80 shall apply to civil money penalties assessed in accordance with the provisions of the Safety and Soundness Act, 12 U.S.C. 4636, and subparts B and C of this part, for violations occurring after August 1, 2016. PART 1250--FLOOD INSURANCE 0 4. The authority citation for part 1250 continues to read as follows: [[Page 43031]] Authority: 12 U.S.C. 4521(a)(4) and 4526; 28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42 U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10). 0 5. Revise Sec. 1250.3(c) to read as follows: Sec. 1250.3 Civil money penalties. * * * * * (c) Amount. The maximum civil money penalty amount is $485 for each violation that occurs before August 1, 2016, with total penalties not to exceed $140,000. For violations that occur on or after August 1, 2016, the civil money penalty under this section may not exceed $534 for each violation, with total penalties assessed under this section against an Enterprise during any calendar year not to exceed $154,028. * * * * * Dated: June 27, 2016. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2016-15619 Filed 6-30-16; 8:45 am] BILLING CODE 8070-01-P
![43028 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
Maximum pen-
U.S. Code citation CMP description alty amount
(in dollars) 1
2nd Tier (natural person)—Per violation ............................................................................... 89,078
2nd Tier (other person)—Per violation ................................................................................. 445,390
3rd Tier (natural person)—Per violation ............................................................................... 178,156
3rd Tier (other person)—Per violation .................................................................................. 890,780
15 U.S.C. 1639e(k) .......................... Violation of Appraisal Independence Requirements:
First violation ......................................................................................................................... 10,875
Subsequent violations ........................................................................................................... 21,749
42 U.S.C. 4012a(f)(5) ...................... Flood Insurance:
Per violation .......................................................................................................................... 2,056
Agency Web site: www.fhfa.gov/open- Agency, 400 7th Street SW.,
Dated: June 23, 2016. for-comment-or-input. Washington, DC 20219. The telephone
Thomas J. Curry, Federal eRulemaking Portal: http:// number for the Telecommunications
www.regulations.gov. Follow the Device for the Hearing Impaired is: (800)
Comptroller of the Currency.
instructions for submitting comments. If 877–8339 (TDD only).
[FR Doc. 2016–15376 Filed 6–30–16; 8:45 am]
you submit your comments to the SUPPLEMENTARY INFORMATION:
BILLING CODE 4810–33–P
Federal eRulemaking Portal, please also
send it by email to FHFA at I. Background
RegComments@FHFA.gov to ensure FHFA is an independent agency of the
FEDERAL HOUSING FINANCE timely receipt by the agency. Please Federal government and the financial
AGENCY include ‘‘RIN 2590–AA88’’ in the safety and soundness regulator of the
subject line of the message. Federal National Mortgage Association
12 CFR Parts 1209 and 1250 (Fannie Mae), the Federal Home Loan
Hand Delivery/Courier: The hand
RIN 2590–AA88 delivery address is: Alfred M. Pollard, Mortgage Corporation (Freddie Mac)
General Counsel, Attention: Comments/ (collectively, the Enterprises), the
Rules of Practice and Procedure; Civil RIN 2590–AA88, Federal Housing Federal Home Loan Banks (collectively,
Money Penalty Inflation Adjustment Finance Agency, Constitution Center, the Banks), and the Banks’ Office of
AGENCY: Federal Housing Finance (OGC) Eighth Floor, 400 Seventh Street Finance under authority granted by the
Agency. SW., Washington, DC 20219. The Federal Housing Enterprises Financial
package should be delivered to the Safety and Soundness Act of 1992
ACTION: Interim final rule.
Seventh Street entrance Guard Desk, (Safety and Soundness Act).1 FHFA
SUMMARY: The Federal Housing Finance First Floor, on business days between 9 oversees the Enterprises and Banks
Agency (FHFA) is issuing this interim a.m. and 5 p.m. (collectively, the regulated entities) to
final rule amending its Rules of Practice U.S. Mail, United Parcel Service, ensure that they operate in a safe and
and Procedure and other agency Federal Express, or Other Mail Service: sound manner and maintain liquidity in
regulations to adjust each civil money The mailing address for comments is: the housing finance market in
penalty within its jurisdiction to Alfred M. Pollard, General Counsel, accordance with applicable laws, rules,
account for inflation, pursuant to the Attention: Comments/RIN 2590–AA88, and regulations. To that end, FHFA is
Federal Civil Penalties Inflation Federal Housing Finance Agency, vested with broad supervisory
Adjustment Act of 1990, as amended by Constitution Center, (OGC) Eighth Floor, discretion and specific civil
the Federal Civil Penalties Inflation 400 Seventh Street SW., Washington, administrative enforcement powers,
Adjustment Act Improvements Act of DC 20219. similar to such authority granted by
2015. If, prior to the effective date of the Copies of all comments will be posted Congress to the Federal bank regulatory
interim final rule, FHFA does not without change, including any personal agencies.2
receive any comments from which information you provide, such as your Section 1376 of the Safety and
FHFA concludes that the rule should be name, address, or phone number, on the Soundness Act (12 U.S.C. 4636)
revised, this rule will become final FHFA Internet Web site at http:// empowers FHFA to impose civil money
without further action by FHFA. www.fhfa.gov. In addition, copies of all penalties under specific conditions.
DATES: Effective date: August 1, 2016. comments received will be available for FHFA’s Rules of Practice and Procedure
Comment date: Comments on the examination by the public on business regulation (12 CFR part 1209) govern
interim final rule must be received prior days between the hours of 10 a.m. and cease and desist proceedings, civil
to August 1, 2016. 3 p.m., at the Federal Housing Finance money penalty assessment proceedings,
ADDRESSES: You may submit your Agency, Eighth Floor, 400 Seventh and other administrative adjudications.3
comments, identified by regulatory Street SW., Washington, DC 20219. To FHFA’s Flood Insurance regulation (12
information number (RIN) 2590–AA88, make an appointment to inspect CFR part 1250) governs flood insurance
by any of the following methods: comments, please call the Office of responsibilities as they pertain to the
asabaliauskas on DSK3SPTVN1PROD with RULES
General Counsel at (202) 649–3804. 1 See Federal Housing Enterprises Financial
1 The maximum penalty amount is per day,
unless otherwise indicated. FOR FURTHER INFORMATION CONTACT: Safety and Soundness Act of 1992, Public Law 102–
2 The maximum penalty amount for a savings Stephen E. Hart, Deputy General 550, 106 Stat. 4078 (Oct. 28, 1992) as amended by
association is the lesser of this amount or 1 percent Counsel, at (202) 649–3053, the Federal Housing Finance Regulatory Reform Act
of total assets. of 2008, Public Law 110–289, 122 Stat. 2654,
Stephen.Hart@fhfa.gov, or Frank R. sections 1101 et seq. (July 30, 2008).
3 These amounts also apply to statutes that cross-
reference 12 U.S.C. 1818, such as 12 U.S.C. 2804,
Wright, Senior Counsel, at (202) 649– 2 See Safety and Soundness Act, 12 U.S.C. 4513
3108, 3349, 4309, and 4717 and 15 U.S.C. 1607, 3087, Frank.Wright@fhfa.gov (not toll- and 4631–4641.
1639e(k), 1693o, 1681s, 1691c, and 1692l. free numbers); Federal Housing Finance 3 See 12 CFR part 1209.
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![Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 43031
Authority: 12 U.S.C. 4521(a)(4) and 4526; rule, FHFA does not receive any Street SW., Eighth Floor, Washington,
28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42 comments from which FHFA concludes DC 20219 (not toll free numbers). The
U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10). that the rule should be revised, this rule telephone number for the
■ 5. Revise § 1250.3(c) to read as will become final without further action Telecommunications Device for the
follows: by FHFA. Hearing Impaired is (800) 877–8339.
DATES: Effective Date: August 1, 2016. SUPPLEMENTARY INFORMATION:
§ 1250.3 Civil money penalties.
Comment Date: Comments on the
* * * * * I. Background
interim final rule must be received prior
(c) Amount. The maximum civil to August 1, 2016. A. General
money penalty amount is $485 for each ADDRESSES: You may submit your The Program Fraud Civil Remedies
violation that occurs before August 1, comments, identified by regulatory Act of 1986 (31 U.S.C. 3801 et seq.)
2016, with total penalties not to exceed information number (RIN) 2590–AA76, (PFCRA) requires FHFA, as an
$140,000. For violations that occur on or by any of the following methods: ‘‘authority,’’ to establish by rule
after August 1, 2016, the civil money Agency Web site: www.fhfa.gov/open- procedures for imposing civil penalties
penalty under this section may not for-comment-or-input. and assessments on any person who
exceed $534 for each violation, with Federal eRulemaking Portal: http:// makes a false claim for property,
total penalties assessed under this www.regulations.gov. Follow the services, or money from FHFA, or
section against an Enterprise during any instructions for submitting comments. If makes a false material statement to
calendar year not to exceed $154,028. you submit your comments to the FHFA in connection with a claim,
* * * * * Federal eRulemaking Portal, please also where the amount involved does not
Dated: June 27, 2016. send it by email to FHFA at exceed $150,000.1 A ‘‘claim’’ as defined
Melvin L. Watt, RegComments@FHFA.gov to ensure in the Act includes a request, demand,
Director, Federal Housing Finance Agency.
timely receipt by the agency. Please or submission for property, services, or
include ‘‘RIN 2590–AA76’’ in the money from FHFA or a party to a
[FR Doc. 2016–15619 Filed 6–30–16; 8:45 am]
subject line of the message. contract with FHFA, including money
BILLING CODE 8070–01–P
Hand Delivery/Courier: The hand representing benefits.2 A ‘‘statement’’ is
delivery address is: Alfred M. Pollard, any representation, certification,
General Counsel, Attention: Comments/ affirmation, document, record, or
FEDERAL HOUSING FINANCE
RIN 2590–AA76, Federal Housing accounting or bookkeeping entry with
AGENCY
Finance Agency, Constitution Center, respect to a claim, a contract or a bid or
12 CFR Part 1217 (OGC) Eighth Floor, 400 Seventh Street proposal for a contract with FHFA, or a
SW., Washington, DC 20219. The benefit from FHFA.3 For covered claims
RIN 2590–AA76 package should be delivered to the and statements, PFCRA provides an
Seventh Street entrance Guard Desk, administrative remedy as an alternative
Implementation of the Program Fraud First Floor, on business days between 9 to judicial action, where the Department
Civil Remedies Act of 1986 a.m. and 5 p.m. of Justice (DOJ) has declined to
AGENCY: Federal Housing Finance U.S. Mail, United Parcel Service, prosecute under the civil False Claims
Agency. Federal Express, or Other Mail Service: Act, 31 U.S.C. 3729.4
The mailing address for comments is: PFCRA establishes a process of (a)
ACTION: Interim final rule.
Alfred M. Pollard, General Counsel, investigation by the ‘‘investigating
SUMMARY: The Federal Housing Finance Attention: Comments/RIN 2590–AA76, official,’’ who, by statute, is the
Agency (FHFA) is adopting an interim Federal Housing Finance Agency, Inspector General (IG) of the agency or
final rule to implement the Program Constitution Center, (OGC) Eighth Floor, a designee of the IG; (b) review by the
Fraud Civil Remedies Act of 1986 (31 400 Seventh Street SW., Washington, agency’s ‘‘reviewing official,’’
U.S.C. 3801 et seq.) (PFCRA), by DC 20219. designated by the agency head, to
establishing administrative procedures Copies of all comments will be posted determine if adequate evidence of
for imposing civil penalties and without change, including any personal liability exists; 5 and (c) review by DOJ.
assessments against persons who make information you provide, such as your If the Attorney General approves use of
false, fictitious, or fraudulent claims or name, address, or phone number, on the the PFCRA process, PFCRA authorizes
written statements to FHFA in the FHFA Internet Web site at http:// the reviewing official to initiate an
context of its contracting or employment www.fhfa.gov. In addition, copies of all action by providing notice to the person
activities, where the amount of money comments received will be available for alleged to be liable; if a hearing on the
or the value of property or services examination by the public on business record is requested, it is before a
involved or requested from FHFA is days between the hours of 10 a.m. and ‘‘presiding official,’’ which by statute is
$150,000 or less. FHFA previously 3 p.m., at the Federal Housing Finance
1 See 31 U.S.C. 3801(a)(1)(C) and 3803(g); see also
issued a notice of proposed rulemaking Agency, Eighth Floor, 400 Seventh
5 U.S.C., App. 3, 11(2).
to implement PFCRA. This rule is Street, SW., Washington, DC 20219. To 2 31 U.S.C. 3801(a)(3).
issued as an interim final rule rather make an appointment to inspect 3 Id. at section 3801(a)(9).
than as a final rule because it increases comments, please call the Office of 4 See S.Rep. No. 99–212 at 6, 99th Cong., 1st Sess.
the maximum penalty amount set forth General Counsel at (202) 649–3804. 6 (1985) (‘‘[E]xisting remedies are not adequate to
asabaliauskas on DSK3SPTVN1PROD with RULES
in the proposed rule as required by the FOR FURTHER INFORMATION CONTACT: cope with the problem of fraud in Federal
programs. The Committee [of Governmental Affairs
Federal Civil Penalties Inflation Maura Dundon, Assistant General of the Senate], therefore, believes that an alternative
Adjustment Act Improvements Act of Counsel, Office of the General Counsel, administrative remedy is needed to adjudicate
2015 (Adjustment Improvements Act), (202) 649–3961, Maura.Dundon@ small-dollar false claim and statement cases that
and that Act also requires that such fhfa.gov, or Ellen Bailey, Managing otherwise would not be initiated civilly.’’).
5 31 U.S.C. 3801(a)(8)(A) and 3803. The Director
‘‘catch up’’ adjustments be published in Associate General Counsel, Office of of FHFA has designated the General Counsel of
the form of an interim final rule. If, prior General Counsel, (202) 649–3056, FHFA as FHFA’s reviewing official. See 80 FR
to the effective date of the interim final Ellen.Bailey@fhfa.gov, 400 Seventh 79719, 79719 n.5 (Dec. 23, 2015).
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Document Created: 2016-07-14 11:37:38
Document Modified: 2016-07-14 11:37:38
| 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 | Interim final rule. | |
| Contact | Stephen E. Hart, Deputy General Counsel, at (202) 649-3053, [email protected], or Frank R. Wright, Senior Counsel, at (202) 649-3087, [email protected] (not toll-free numbers); Federal Housing Finance Agency, 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is: (800) 877-8339 (TDD only). | |
| FR Citation | 81 FR 43028 | |
| RIN Number | 2590-AA88 | |
| CFR Citation | 12
CFR
1209 12 CFR 1250 | |
| CFR Associated | Administrative Practice and Procedure; Penalties; Flood Insurance; Government-Sponsored Enterprises and Reporting and Record Keeping Requirements |
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