81_FR_74938 81 FR 74730 - Minority and Women Inclusion Amendments

81 FR 74730 - Minority and Women Inclusion Amendments

FEDERAL HOUSING FINANCE AGENCY

Federal Register Volume 81, Issue 208 (October 27, 2016)

Page Range74730-74738
FR Document2016-25726

The Federal Housing Finance Agency (FHFA or Agency) is issuing notice and providing an opportunity for the public to comment on proposed amendments to its regulations on minority and women inclusion. Those regulations, require the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, Enterprises), and the Federal Home Loan Banks (Banks or Bank System) (collectively, the regulated entities) and the Bank System's Office of Finance to promote diversity and ensure the inclusion and utilization of minorities, women, and individuals with disabilities and minority-, women-, and disabled-owned businesses in all business and activities at all levels, including management, employment, and contracting. The proposed amendments would clarify the scope of the regulated entities' obligation to promote diversity and ensure the inclusion and utilization of minorities, women, and individuals with disabilities in all business and activities; require each regulated entity to develop and adopt strategies for promoting diversity and ensuring the inclusion of minorities, women, and individuals with disabilities; and improve the usefulness and comparability of the information the regulated entities report to FHFA about their efforts to advance diversity and inclusion.

Federal Register, Volume 81 Issue 208 (Thursday, October 27, 2016)
[Federal Register Volume 81, Number 208 (Thursday, October 27, 2016)]
[Proposed Rules]
[Pages 74730-74738]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-25726]


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FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1207

RIN 2590-AA78


Minority and Women Inclusion Amendments

AGENCY: Federal Housing Finance Agency.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Housing Finance Agency (FHFA or Agency) is issuing 
notice and providing an opportunity for the public to comment on 
proposed amendments to its regulations on minority and women inclusion. 
Those regulations, require the Federal National Mortgage Association 
(Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) 
(together, Enterprises), and the Federal Home Loan Banks (Banks or Bank 
System) (collectively, the regulated entities) and the Bank System's 
Office of Finance to promote diversity and ensure the inclusion and 
utilization of minorities, women, and individuals with disabilities and 
minority-, women-, and disabled-owned businesses in all business and 
activities at all levels, including management, employment, and 
contracting. The proposed amendments would clarify the scope of the 
regulated entities' obligation to promote diversity and ensure the 
inclusion and utilization of minorities, women, and individuals with 
disabilities in all business and activities; require each regulated 
entity to develop and adopt strategies for promoting diversity and 
ensuring the inclusion of minorities, women, and individuals with 
disabilities; and improve the usefulness and comparability of the 
information the regulated entities report to FHFA about their efforts 
to advance diversity and inclusion.

DATES: Written comments must be received on or before December 27, 
2016.

ADDRESSES: You may submit your comments, identified by Regulatory 
Information Number (RIN) 2590-AA78, 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 
comment 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 Comments/RIN 2590-AA78 in the subject line of the 
message.
     Courier/Hand Delivery: The hand delivery address is: 
Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA78, 
Federal Housing Finance Agency, 400 Seventh Street SW., Eighth Floor, 
Washington, DC 20219. Deliver the package to the Seventh Street 
entrance Guard Desk, First Floor, on business days between 9 a.m. to 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-AA78, Federal Housing 
Finance Agency, 400 Seventh Street SW., Eighth Floor, Washington, DC 
20219.

FOR FURTHER INFORMATION CONTACT: Sharron P. A. Levine, Director, Office 
of Minority and Women Inclusion, [email protected], (202) 649-
3496; Eric Howard, Deputy Director, Office of Minority and Women 
Inclusion, [email protected], (202) 649-3009; or James Jordan, 
Assistant General Counsel, [email protected], (202) 649-3075 (not 
toll-free numbers), Federal Housing Finance Agency, 400 Seventh Street 
SW., Washington, DC 20219. The telephone number for the 
Telecommunications Device for the Hearing Impaired is (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

I. Comments

    FHFA invites comments on all aspects of the proposed amendments and 
will take all comments into consideration before issuing a final rule. 
Copies of all comments received will be posted without change on the 
FHFA Web site at http://www.fhfa.gov and will include any personal 
information you provide, such as your name, address, email address, and 
telephone number. Copies of all comments received will be made 
available for examination by the public on business days between the 
hours of l0 a.m. and 3 p.m., at the Federal Housing Finance Agency, 400 
Seventh Street SW., Eighth Floor, Washington, DC 20219. To make an 
appointment to

[[Page 74731]]

inspect comments, please call the Office of General Counsel at (202) 
649-3804.

II. Objectives

    The objectives of the proposed amendments are to:
     Ensure that the regulated entities \1\ fulfill the letter 
and spirit of their legal obligation to promote diversity and ensure 
the inclusion and utilization of minorities, women, and individuals 
with disabilities as well as minority-, women-, and disabled-owned 
businesses, in all their business and activities;
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    \1\ For readability, where the preamble refers to a ``regulated 
entity'' or the ``regulated entities'' the provisions apply equally 
to the Office of Finance, unless such application would conflict 
with a statute or regulation that specifically distinguishes the 
treatment of the Office of Finance from the regulated entities.
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     Clarify that the requirement to promote diversity and 
inclusion applies to all the regulated entities' operational, 
commercial and economic endeavors, including management, employment, 
contracting, capital market transactions, and affordable housing and 
community investment programs;
     Require the regulated entities to develop a stand-alone 
diversity and inclusion strategic plan or incorporate diversity and 
inclusion into its existing strategic planning process and adopt 
strategies for promoting diversity and ensuring the inclusion of 
minorities, women, and individuals with disabilities as well as 
minority-, women-, and disabled-owned businesses;
     Require the regulated entities to amend their policies on 
equal opportunity in employment and contracting to include sexual 
orientation, gender identity, and status as a parent to the list of 
protected classifications;
     Encourage the regulated entities to expand contracting 
opportunities for minorities, women, and individuals with disabilities 
by working with prime contractors (tier 1) to provide subcontracting 
(tier 2) opportunities to minority-, women-, and disabled-owned 
businesses;
     Affirm that the regulated entities are authorized to 
expand the scope of their outreach and inclusion programs beyond the 
requirements of the Rule, which focuses on minorities, women, and 
individuals with disabilities; and
     Improve the usefulness and comparability of the annual 
reports to FHFA by requiring that the regulated entities provide 
information about their efforts to advance diversity and inclusion 
through capital market transactions, affordable housing and community 
investment programs, initiatives to improve access to mortgage credit, 
and strategies for promoting the diversity of supervisors and managers.

III. Background

    Section 1116 of the Housing and Economic Recovery Act of 2008 
(HERA) amended section 1319A of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (Safety and Soundness Act), 
(12 U.S.C. 4520), to require, in part, that the regulated entities 
establish or designate an office to carry out the requirements of an 
Office of Minority and Women Inclusion (OMWI). That office is 
responsible for: Fulfilling the requirements of section 1116 of HERA 
that include all matters relating to diversity in the entity's 
management, employment, and business activities; developing and 
implementing standards and procedures to promote diversity in all 
business and activities of the regulated entity; and submitting an 
annual report to FHFA detailing the actions taken to promote diversity 
and inclusion. Furthermore, 12 U.S.C. 1833e,\1\ and Executive Order 
11478,\2\ which is made applicable to FHFA and its regulated entities 
by 12 U.S.C. 1833e, generally require FHFA and the regulated entities 
to promote equal opportunity in employment.
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    \1\ See Public Law 101-73, title XII, sec. 1216, Aug. 9, 1989, 
103 Stat. 529; Public Law 102-233, title III, sec. 302(a), Dec. 12, 
1991; Public Law 110-289, div. A, title II, sec. 1216(g), July 30, 
2008, 122 Stat. 2793; Public Law 111-203, title III, sec. 367(9), 
July 21, 2010, 124 Stat. 1557.
    \2\ Executive Order 11478--Equal Employment Opportunity in the 
Federal Government, August 8, 1969, as amended.
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    FHFA has adopted regulations to implement section 1116 of HERA, 12 
U.S.C. 1833e, and in conformance with Executive Order 11478, as 
amended, to set forth the minimum requirements for the affirmative 
program for equal opportunity and reporting requirements for the 
regulated entities.\3\ Those regulations, located at 12 CFR part 1207, 
require each regulated entity to establish an OMWI office, or to 
designate another office, that would be responsible for fulfilling the 
entity's OMWI responsibilities under the statute and the Rule. Each of 
these entities must implement policies and procedures to ensure, to the 
maximum extent possible consistent with financially safe and sound 
business practices, the inclusion and utilization of minorities, women, 
individuals with disabilities, and minority-, women-, and disabled-
owned businesses in all business and activities and at all levels of 
the regulated entity, including in management, employment, procurement, 
insurance, and all types of contracts.\4\ Part 1207 also requires each 
regulated entity to submit to the FHFA Director, on or before March 1 
of each year, a detailed annual report summarizing their activities 
during the reporting year (January 1 through December 31 of the 
preceding year) to comply with the OMWI regulatory requirements.\5\
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    \3\ See 75 FR 1289 (January 11, 2010), 75 FR 81395 (December 28, 
2010), 79 FR 35960 (June 25, 2014), and 80 FR 25209 (May 4, 2015).
    \4\ 12 CFR 1207.21(b).
    \5\ 12 CFR 1207.23.
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    In addition, part 1207 provides that the FHFA Director has broad 
enforcement authority in that he or she may enforce this Rule and 
standards issued under it in any manner and through any means within 
his or her authority, including through identifying matters requiring 
attention, corrective action orders, directives, or enforcement actions 
under 12 U.S.C. 4513b and 4514.\6\ To that end, the FHFA Director may 
conduct examinations of a regulated entity's activities under, and in 
compliance with, this part pursuant to 12 U.S.C. 4517.\7\
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    \6\ 12 CFR 1207.24.
    \7\ Id.
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IV. Existing Examination Guidance and Regulatory Requirements for 
Strategic Planning

    Strategic planning is critical to the success of any organization, 
including the regulated entities. As noted in FHFA's Examination Manual 
(EM) module entitled, Strategic Planning, ``in its most fundamental 
form, strategic planning is the process of evaluating where the 
institution is, determining where the board would like the institution 
to go and which risks it is willing to accept, and developing a plan to 
get there.'' \8\ The EM also notes that, ``strategic planning is the 
process of establishing goals and developing a roadmap for achieving 
those goals.'' \9\ A strategic plan serves as the primary means to 
communicate the board of directors' long-term vision for the 
organization and establish measurable goals and objectives for 
achieving this vision. The EM also identifies the following as 
components of an effective strategic planning process:
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    \8\ FHFA Examination Manual, Strategic Planning Module, March 
2013, http://www.fhfa.gov/SupervisionRegulation/Documents/Strategic_Planning_Module_Final_Version_1.0-508.pdf.
    \9\ Id.
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     An analysis of the regulated entity's financial and 
operational condition;
     An assessment of internal and external risks to the 
regulated entity;
     An evaluation of the regulated entity's strengths and 
weaknesses;

[[Page 74732]]

     An evaluation of opportunities or potential threats facing 
the regulated entity;
     The financial and operational goals and realistic 
projections that serve as benchmarks for achieving desired results 
within a defined time frame;
     The process by which the regulated entity plans to reach 
its financial and operational goals;
     The identification of those responsible for achieving the 
goals; and
     A means to monitor the results on an ongoing basis.
    The regulated entities are also subject to the Agency's Prudential 
Management and Operations Standards (PMOS) found in part 1236 of FHFA's 
regulations. Pursuant to the PMOS guidelines, the board of directors of 
each regulated entity is responsible for adopting appropriate business 
strategies, policies, and procedures. The PMOS guidelines also 
establish standards by which the board of directors is to review and 
approve all major strategies and policies at least annually, and make 
any necessary revisions to ensure consistency with the overall business 
plan.
    FHFA regulations at 12 CFR 1239.31 provide detailed information on 
the strategic planning requirements for each Bank including a 
requirement that their board of directors have a strategic business 
plan in effect at all times. FHFA regulation 12 CFR 1239.31(b) requires 
the board of directors to (1) review the strategic business plan at 
least annually; (2) amend the plan as appropriate; (3) re-adopt the 
plan at least every three years; and (4) establish management reporting 
requirements and monitor implementation of the strategic business plan 
and the operating goals and objectives contained in it.

V. Importance of Diversity and Inclusion Strategic Planning

    A significant and growing body of research provides evidence that 
having a diverse and inclusive workforce and leadership team benefits 
an organization by increasing its ability to be creative, innovative, 
and solutions-oriented.\10\ Many organizations, however, fail to 
recognize that diversity and inclusion are vital components of long-
term business viability and success and, as a result, have strictly 
limited them solely to the human resource function. Organizations that 
effectively manage diversity and inclusion have integrated the practice 
into all of their processes by developing and implementing 
comprehensive diversity and inclusion strategies. Their path to success 
starts with senior leadership's commitment to integrate diversity and 
inclusion into the business, at all levels, and to manage it in the 
same way as any other business strategy.
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    \10\ Page, Scott E., The Difference: How the Power of Diversity 
Creates Better Groups, Firms, Schools, and Societies, Princeton; 
Princeton UP, 2007. Print. https://books.google.com/books?id=FAFVHnJ7uK0C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false; Global Diversity and Inclusion Fostering 
Innovation Through a Diverse Workforce, Forbes, July 2011, http://www.forbes.com/forbesinsights/innovation_diversity/index.html; and 
Barta, T., Kleiner, M., and Neumann, T., McKinsey Quarterly, Is 
There a payoff from top-team diversity?, April 2012, http://www.mckinsey.com/business-functions/organization/our-insights/is-there-a-payoff-from-top-team-diversity.
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    Effective strategic business planning, executive sponsorship, 
communication, change management, project management, day-to-day 
execution, and measurement are all regarded as business fundamentals 
for most functional areas in an organization. The research supports the 
premise that the ability to assess the current state and measure the 
progress of its diversity and inclusion efforts is also a fundamental 
and prudent business practice.

VI. Ongoing Efforts by the Regulated Entities To Advance Diversity and 
Ensure Inclusion

    The Rule became effective on January 27, 2011, and set forth the 
minimum requirements for the regulated entities' diversity and 
inclusion programs and reporting requirements. They responded to the 
new regulatory requirements by establishing an OMWI office or 
designating another office responsible for fulfilling the entity's OMWI 
responsibilities. They implemented policies, procedures, and programs 
to improve human resource processes for recruiting, hiring, and 
promoting minorities, women, and individuals with disabilities. They 
also focused attention on identifying diverse suppliers and improving 
outreach efforts to increase participation opportunities for diverse 
businesses. These efforts have resulted in improvements in workforce 
diversity and the utilization of diverse vendors. In order to advance 
and promote diversity and inclusion, the regulated entities currently 
engage in one or more of the following activities and initiatives:
     Conducting diversity and inclusion education and training 
sessions for their directors, managers, and employees;
     Establishing mentoring programs for employees, 
particularly minorities and women;
     Partnering with minority youth development organizations;
     Sponsoring internship programs for high school and college 
students;
     Sponsoring and/or supporting community events and 
celebrations;
     Establishing diversity and inclusion councils;
     Establishing and/or sponsoring employee resource or 
affinity groups;
     Expanding the scope of outreach activities and initiatives 
to target and recruit minorities, women, and individuals with 
disabilities for employment;
     Expanding the scope of outreach activities and initiatives 
to target minority-, women-, and disabled-owned businesses for 
contracting opportunities; and
     Marketing to diverse communities.
    Many of these efforts and initiatives have enabled or enhanced the 
ability of the regulated entities to promote opportunities for 
minorities, women, and individuals with disabilities. While each has 
worked to build and improve the foundation for advancing diversity and 
inclusion within its organization, more can be done to expand the 
breadth, scope, and impact of its existing program. Gaps remain in the 
regulated entities' processes and approaches for assessing, planning, 
and executing diversity and inclusion programs that fulfill the letter 
and spirit of section 1116 of HERA.

VII. The Proposed Amendments

    The proposed amendments would revise the Rule to require each 
regulated entity to engage in diversity and inclusion strategic 
planning. They would either develop a stand-alone diversity and 
inclusion strategic plan or incorporate diversity and inclusion into 
their existing strategic planning process. Under the proposal, their 
board of directors must establish an organizational tone for enhanced 
focus on, and commitment to, diversity and inclusion. The board of 
director's ongoing oversight assists in creating the conditions for 
success by ensuring alignment with the overall strategic and 
operational direction of the regulated entity. Senior management teams 
also play an important role in the development and execution of the 
diversity and inclusion strategic plan.
    The regulated entities have mainly focused on workforce and 
supplier diversity to date, largely as a result of the Rule's primary 
focus on requirements for establishing an OMWI, ensuring equal 
opportunity in employment and contracting, and developing and 
submitting reports on the efforts taken to promote diversity and ensure 
inclusion in employment and contracting. The proposed amendments 
emphasize the need to expand the scope of diversity and

[[Page 74733]]

inclusion considerations to their other business and operational areas. 
The proposed revision would require the regulated entities to broaden 
the focus of their existing diversity and inclusion goals and 
strategies to address all aspects of their business and operations 
beyond workforce and supplier diversity only, consistent with section 
1116 of HERA.
    The proposed amendments would encourage the regulated entities to 
develop and implement procurement programs and initiatives that expand 
contracting opportunities for minorities, women, and individuals with 
disabilities and minority-, women-, and disabled-owned businesses 
beyond contracting with prime contractors (tier 1) by using 
subcontracting arrangements (tier 2). This could entail negotiating 
subcontracting opportunities for minorities, women, and individuals 
with disabilities in contracts between a regulated entity and prime 
contractors. This could also involve entering into contracts with 
majority-owned businesses that advance opportunities for minorities, 
women, and individuals with disabilities. A new annual reporting 
requirement would include additional information about the number of 
contracts and the amounts paid to prime contractors (tier 1) for 
subcontracts (tier 2) with minorities or minority-owned businesses, 
women or women-owned businesses, and individuals with disabilities or 
disabled-owned businesses during the reporting year and the diverse 
spend with non-diverse-owned businesses.
    The Rule implements 12 U.S.C. 1833e and conforms with Executive 
Order 11478, as amended, to require the regulated entities to commit to 
the principles of equal opportunity in employment and prohibit 
discrimination on the basis of race, color, national origin, sex, 
religion, age, disability status, or genetic information. Executive 
Orders 13087 and 13152 amended Executive Order 11478 to add sexual 
orientation and status as a parent to the list of protected bases.\11\ 
Executive Order 13672, signed on July 21, 2014, amended Executive 
Orders 11478 and 11246 to extend protection against discrimination in 
hiring and employment in the civilian federal workforce on the basis of 
gender identity and in hiring by federal contractors on the basis of 
both sexual orientation and gender identity.\12\ The proposed 
amendments would require the regulated entities to amend their policies 
on equal opportunity in employment and contracting to prohibit 
discrimination on the basis of sexual orientation, gender identity, and 
status as a parent.
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    \11\ Executive Order 13087--Further Amendments to Executive 
Order 11478, Equal Employment Opportunity in the Federal Government, 
May 28, 1998, https://www.thefederalregister.org/fdsys/pkg/FR-1998-06-02/pdf/98-14689.pdf and Executive Order 13152; Executive Order 13152--Further 
Amendments to Executive Order 11478, Equal Employment Opportunity in 
the Federal Government, May 2, 2000, https://www.thefederalregister.org/fdsys/pkg/WCPD-2000-05-08/pdf/WCPD-2000-05-08-Pg977.pdf.
    \12\ Executive Order 13672--Further Amendments to Executive 
Order 11478, Equal Employment Opportunity in the Federal Government, 
and Executive Order 11246, Equal Employment Opportunity, July 21, 
2014, https://www.thefederalregister.org/fdsys/pkg/CFR-2015-title3-vol1/pdf/CFR-2015-title3-vol1-eo13672.pdf.
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    The scope of the diversity and inclusion obligations to be 
satisfied by the regulated entities varies depending on the source of 
the authority. As previously noted, FHFA's Rule implements 12 U.S.C. 
1833e, which applies the requirements of sections 1 and 2 of Executive 
Order 11478 to the regulated entities. Section 1 requires the regulated 
entities to provide equal employment opportunity for all persons, 
prohibit employment discrimination, and promote equal employment 
opportunity through a continuing affirmative program. Section 2 
describes the elements of an affirmative program of equal employment 
opportunity, which include providing sufficient resources for 
administering the program in a positive and effective manner; engaging 
in recruitment activities that reach all sources of job candidates; 
fully utilizing the skills of all employees; providing employees 
opportunities to enhance their skills so they may perform at their 
fullest potential and advance in accordance with their abilities; 
providing training and advice to managers and supervisors to assure 
their understanding and implementation of the program; assuring 
participation at the local level with other employers, schools, and 
public and private groups in cooperative efforts to improve community 
conditions that affect employability; and providing for periodic 
evaluations of the effectiveness of the program.
    FHFA acknowledges that diversity encompasses the broad range of 
demographic characteristics identified in Executive Order 11478. 
However, section 1116 of HERA only focuses on the responsibility of the 
regulated entities to promote diversity and ensure the inclusion of 
minorities and women. Therefore, in accordance with the statutory 
requirements, the primary focus of the regulatory text amendments is on 
advancing and promoting opportunities for minorities, women, and 
individuals with disabilities as well as minority-, women-, and 
disabled-owned businesses. Nonetheless, FHFA affirms that each 
regulated entity is authorized to expand the scope of its diversity 
program beyond the requirements of Executive Order 11478, section 1116 
of HERA, and the regulations at 12 CFR part 1207. As a result, each 
regulated entity is encouraged to incorporate other aspects of 
diversity and inclusion (e.g., Lesbian, Gay, Bisexual, and Transgender 
(LGBT)-owned and veteran-owned businesses) into their respective OMWI 
outreach and inclusion programs, and in turn, their strategic planning 
processes as long as the broader focus does not detract from or 
diminish efforts to promote opportunities for minorities, women, and 
individuals with disabilities and minority-, women-, and disabled-owned 
businesses.

Section 1207.1 Definitions

    FHFA proposes to add, revise, or remove several definitions in 
Sec.  1207.1 to clarify the existing and new regulatory requirements 
under part 1207. Where FHFA proposes to add or revise terms, FHFA has 
reviewed several external sources in search of industry standard 
definitions. FHFA has determined that there is no uniformly accepted 
term of art or single source for the newly proposed terms, so FHFA has 
adapted the substance found in multiple external definitions \13\ to 
account for the nature and needs of FHFA's regulated entities.
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    \13\ For example, the proposed definition of ``Subcontractor 
(Tier II)'' was adapted from definitions found in regulations 
implementing the Small Business Act, Title 41 of the CFR addressing 
Public Contracts and Property Management, and the Federal 
Acquisition Regulations as well as definitions implemented by the 
National Association of Women in Construction and financial 
institutions such as Citi and KeyBank.
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    FHFA proposes to add definitions for ``Applicant'' and 
``Promotion'' to clarify the scope of the information the regulated 
entities are required to report to FHFA under existing Sec.  
1207.23(b)(3) and Sec.  1207.23(b)(7). FHFA is proposing a new 
definition of ``Diversity and inclusion strategic planning'' that would 
describe the process the regulated entities must engage in to develop 
strategies for promoting diversity and ensuring the inclusion of 
minorities, women, and individuals with disabilities.
    FHFA proposes to add definitions for ``Prime contractor (tier 1)'' 
and ``Subcontractor (tier 2)'' to identify two types of contracting 
arrangements available to the regulated entities to promote diversity 
and the inclusion of minorities, women, and individuals with 
disabilities and minority-,

[[Page 74734]]

women-, and disabled-owned businesses. FHFA also proposes to add a 
definition for ``Diversity spend with non-diverse-owned businesses'' to 
describe the dollar amount a regulated entity pays to a firm that is 
not owned by a minority, woman, or individual with a disability, for 
professional services provided by a partner, member, or other equity 
owner who is a minority, woman, or individual with a disability. This 
type of arrangement can occur when an organization bases its decision 
to engage a majority-owned law practice or consulting firm based upon 
its interactions with a specific partner(s) or non-controlling owner(s) 
who is also a minority, woman, or individual with a disability.
    FHFA proposes to add a definition for ``Minority-serving financial 
institution'' that would be used by the regulated entities in their 
efforts to promote access to single- and multi-family mortgage credit, 
including an assessment of the challenges and impediments financial 
institutions that primarily serve minorities face in their efforts to 
access the secondary mortgage market. The proposed definition closely 
follows the Federal Deposit Insurance Corporation's (FDIC) Policy 
Statement Regarding Minority Depository Institutions \14\ and 
encompasses depository and non-depository financial institutions.
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    \14\ FDIC Policy Statement Regarding Minority Depository 
Institutions, April 9, 2002, https://www.fdic.gov/regulations/resources/minority/policy.html.
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    FHFA is proposing to revise the definition of ``Women-owned 
business'' by removing one of the standards used to determine whether a 
business qualifies as a women-owned business. The existing definitions 
for minority-, women-, and disabled-owned businesses include criteria 
for determining the diverse status of a business based on who owns or 
controls the business as well as who accrues the profits or losses 
generated by the business. The existing definition of ``Women-owned 
business'' also includes a criterion based on the percentage of senior 
management positions held by one or more women. FHFA believes this 
criterion is unnecessary due to the emphasis the existing definition 
places on ownership and control. The proposed removal of this criterion 
for women-owned businesses would bring consistency to the Rule's 
standards for determining ownership and control of minority- and 
disabled-owned businesses. FHFA is also proposing to revise the 
definitions of ``Disabled-owned business,'' ``Minority-owned 
business,'' and ``Women-owned business'' by clarifying that ownership 
can be direct or indirect. By revising the definition, FHFA wishes to 
encourage each regulated entity to develop and implement procurement 
programs and initiatives without regard to the distinction between 
businesses owned by individuals/natural persons and legal persons, such 
as corporations, as long as the ultimate ownership benefits are held by 
predominantly disabled, minority, or women owners.
    Finally, FHFA is proposing to remove the definitions for 
``Director,'' ``FHFA,'' ``Office of Finance,'' and ``regulated entity'' 
because they are now defined in 12 CFR part 1201, which defines terms 
that apply to all FHFA regulations.

Section 1207.2 Policy, Purpose, and Scope

    FHFA proposes to revise Sec.  1207.2(c) to address the scope of 
each regulated entity's responsibility to promote diversity and ensure 
the inclusion and utilization of minorities, women, and individuals 
with disabilities and minority-, women-, and disabled-owned businesses. 
The proposed regulatory language would place emphasis on the 
requirement to promote diversity and ensure inclusion when awarding 
contracts for goods and services.

Section 1207.3 Limitations

    FHFA is proposing to revise existing Sec.  1207.3(b), which 
currently requires each regulated entity's contracts for goods over 
$10,000 to include a material clause that commits the contractor to 
practice the principles of equal employment opportunity and 
nondiscrimination and to submit demographic data reports with respect 
to their workforce. FHFA proposes to increase the material clause 
threshold to $25,000 to alleviate administrative burdens the regulated 
entities encounter when routinely purchasing lower-value goods such as 
materials and supplies necessary for day-to-day operations. However, 
FHFA welcomes comments on the potential impact the proposed threshold 
change could have on small businesses and, specifically, on the dollar 
amount of the threshold.
    FHFA is also proposing to add paragraphs (c) and (d) to existing 
Sec.  1207.3. Proposed Sec.  1207.3(c) would require each regulated 
entity to submit to FHFA within 90 days after the effective date of the 
amended Rule, a list of the types of contracts it considers exempt 
under Sec.  1207.3(b) and any thresholds, exceptions, and limitations 
it establishes for implementing Sec.  1207.21(c)(2). Proposed Sec.  
1207.3(d) would then require each regulated entity to notify FHFA 
within 30 days after any additional changes to the list.

Section 1207.20 Office of Minority and Women Inclusion

    FHFA is proposing to revise paragraphs (b) and (c) of Sec.  1207.20 
to clarify that a regulated entity's board of directors has ultimate 
responsibility for achieving the requirements of part 1207--not the 
regulated entity's OMWI (or office designated to perform the 
responsibilities of part 1207). The proposed revision would clarify 
that the OMWI is responsible for leading the regulated entity's efforts 
to promote diversity and inclusion, and that any officer(s) designated 
to direct and oversee the diversity and inclusion programs has/have the 
necessary qualifications to effectively administer the requirements of 
part 1207.

Section 1207.21 Promoting Diversity and Ensuring Inclusion in All 
Business and Activities

    FHFA is proposing to revise the title of existing Sec.  1207.21 
from ``Equal opportunity in employment and contracting'' to ``Promoting 
diversity and ensuring inclusion in all business and activities'' to 
accurately reflect the scope of requirements for advancing diversity 
and ensuring inclusion in all activities and at every level of the 
regulated entity, including management, employment and contracting.
    FHFA is proposing to amend Sec.  1207.21(a) to add sexual 
orientation, gender identity, and status as a parent to the list of 
bases covered under each regulated entity's equal opportunity statement 
as required by 12 U.S.C. 1833e, and in conformance with Executive Order 
11478.
    FHFA is proposing to add a new paragraph to Sec.  1207.21(b)(3) to 
address the statutory requirement in section 1116(b) of HERA that the 
regulated entities establish processes that give consideration to the 
diversity of an applicant when reviewing and evaluating contract 
proposals and hiring service providers. The proposed rule would require 
them to develop procedures it would implement for giving consideration 
to diversity when reviewing and considering contract proposals and 
hiring service providers.
    Proposed Sec.  1207.21(b)(7) would require each regulated entity to 
establish effective procedures for engaging in diversity and inclusion 
strategic planning. FHFA is also proposing to revise its allowance that 
the regulated entities may establish, where commercially reasonable, 
thresholds, exceptions, and limitations for implementing Sec.  
1207.21(b)(7) (proposed

[[Page 74735]]

Sec.  1207.21(b)(9)). Under Sec.  1207.3(b), the regulated entities 
would consider any negative or adverse effects the thresholds, 
exceptions, and limitations would likely have on contracting 
opportunities for minorities, women, and individuals with disabilities 
and minority-, women-, and disabled-owned businesses. The proposal 
would also ensure that the rationale used to support the thresholds, 
exceptions, and limitations would not be used to frustrate the intent 
of the statutory or regulatory requirements to promote diversity and 
inclusion.
    Proposed Sec.  1207.21(d) would require each regulated entity to 
develop and implement strategies for promoting diversity and ensuring 
the inclusion of minorities, women, and individuals with disabilities 
and minority-, women-, and disabled-owned businesses. The board-
approved strategies would cover three years and be reviewed and 
affirmed by the board of directors annually.
    Proposed Sec.  1207.21(e)(1) through (e)(3) would establish the 
minimum requirements for developing a diversity and inclusion strategic 
plan. The requirements would complement the guidance that has been 
provided in FHFA's EM, Strategic Planning, as well as regulatory 
requirements and the PMOS guidelines. The proposed amendments would 
require the regulated entities to include the following components in 
their diversity and inclusion strategic plans:
     A vision and/or mission statement for fulfilling Sec.  
1207.2;
     Measurable goals and objectives for achieving the vision 
and/or mission statement; and
     A requirement that senior management develop and implement 
action plans for monitoring and achieving the measurable goals and 
objectives.

Section 1207.23 Annual Reports--Format and Contents

    FHFA is proposing to revise Sec.  1207.23(b)(3) and (b)(7) to 
substitute the word ``applicants'' as defined in Sec.  1207.1 for the 
words ``individuals applying'' to clarify the scope of information the 
regulated entities are required to report to FHFA.
    Proposed Sec.  1207.23(b)(9) through (b)(23) revises and/or 
supplements the minimum requirements for the annual report submitted by 
each regulated entity. Proposed Sec.  1207.23(b)(9) would require them 
to report on the diversity of their supervisors and managers as well as 
provide a description of the strategies and activities it implemented 
to promote diverse individuals to supervisory or managerial roles. 
Proposed Sec.  1207.23(b)(12) would require each regulated entity to 
provide a description of the strategies, initiatives, and activities it 
implemented to advance diversity and inclusion in conjunction with 
capital market or financial transactions, efforts to promote access to 
credit, and affordable housing and community investment programs. 
Proposed Sec.  1207.23(b)(16) and Sec.  1207.23(b)(17) would require 
each regulated entity to report the number and dollar amounts of 
contracts entered into during the preceding year that it considered 
exempt under Sec.  1207.3(b). The proposed amendments would also 
require reporting on the number and dollar amounts of prime contracts 
and subcontracts that prime contractors had with minorities, women, and 
individuals with disabilities and minority-, women-, and disabled-owned 
businesses. Proposed Sec.  1207.23(b)(18) would require that the 
regulated entity report on diversity spend with non-diverse-owned 
businesses. Proposed Sec.  1207.23(b)(19) would require the regulated 
entity to provide the total amounts paid to prime contractors and 
subcontractors and the percentage that was paid to diverse vendors.
    Finally, the proposed amendments would remove most references to 
the ``Office of Finance'' found in the existing regulation. The 
proposed change would neither alter nor reduce the Office of Finance's 
responsibility to promote diversity and inclusion and would serve to 
streamline the text of the regulatory requirements. Therefore, FHFA is 
proposing to add Sec.  1207.25 to explain that any reference to the 
regulated entities in part 1207 also applies to the Office of Finance, 
unless the Office of Finance is otherwise specifically addressed or 
excluded.

VIII. Consideration of Differences Between the Banks and the 
Enterprises

    Section 1313(f) of the Safety and Soundness Act, as amended by 
section 1201 of HERA, requires the Director, when promulgating 
regulations relating to the Banks, 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. The Director may also 
consider any other differences that are deemed appropriate. In 
preparing this proposed rule, the Director has considered the 
differences between the Banks and the Enterprises as they relate to the 
above factors and has determined that the proposed rule would not 
adversely affect the Banks taking into account all of the above 
factors.

IX. Regulatory Impacts

Paperwork Reduction Act

    The proposed regulation does not contain any information collection 
requirement that requires the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
a regulation that has a significant economic impact on a substantial 
number of small entities, small businesses, or small organizations 
include an initial regulatory flexibility analysis describing the 
regulation's impact on small entities. Such an analysis need not be 
undertaken if the agency has certified that the regulation will not 
have a significant economic impact on a substantial number of small 
entities. 5 U.S.C. 605(b). FHFA has considered the impact of the 
proposed amendments under the Regulatory Flexibility Act and certifies 
that the proposed amendments, if adopted, are not likely to have a 
significant economic impact on a substantial number of small business 
entities because the regulation is only applicable to FHFA and the 
regulated entities, which are not small entities for purposes of the 
Regulatory Flexibility Act.

List of Subjects in 12 CFR Part 1207

    Disability, Discrimination, Diversity, Equal employment 
opportunity, Government contracts, Minority businesses, Office of 
Finance, Outreach, Regulated entities.

Authority and Issuance

    For the reasons stated in the preamble, under the authority of 12 
U.S.C. 4526, FHFA proposes to amend part 1207 of title 12 of the Code 
of Federal Regulations as follows:

PART 1207--MINORITY AND WOMEN INCLUSION

0
1. The authority citation for part 1207 continues to read as follows:

    Authority:  12 U.S.C. 4520 and 4526; 12 U.S.C. 1833e; E.O. 
11478.


Sec.  1207.1  [Amended]

0
2. Amend Sec.  1207.1 by:
0
a. Adding a definition for ``Applicant'' in alphabetical order;
0
b. Removing the definition of ``Director'';

[[Page 74736]]

0
c. Revising the definition of ``Disabled-owned business'';
0
d. Adding definitions for ``Diversity and inclusion strategic 
planning'' and ``Diversity spend with non-diverse-owned businesses'' in 
alphabetical order;
0
e. Removing the definition of ``FHFA'';
0
f. Revising the definition of ``Minority-owned business'';
0
g. Adding a definition for ``Minority-serving financial institution'' 
in alphabetical order;
0
h. Removing the definition of ``Office of Finance'';
0
i. Adding a definition for ``Prime contractor (tier 1)'' and 
``Promotion'' in alphabetical order;
0
j. Removing the definition of ``Regulated entity'';
0
k. Adding a definition for ``Subcontractor (tier 2)'' in alphabetical 
order; and
0
l. Revising the definition of ``Women-owned business''.
    The revisions and additions read as follows:


Sec.  1207.1  Definitions.

* * * * *
    Applicant means an individual who submits an expression of interest 
in employment in conjunction with all of the following:
    (1) The regulated entity acted to fill a particular position;
    (2) The individual followed the regulated entity's standard process 
for submitting an application;
    (3) The individual's expression of interest indicates that the 
individual possesses the basic qualifications for the position; and
    (4) The individual has not removed him or herself from 
consideration or otherwise indicated that he or she is no longer 
interested in the position.
* * * * *
    Disabled-owned business means a business, and includes, but is not 
limited to, financial institutions, mortgage banking firms, investment 
banking firms, investment consultants or advisors, financial services 
entities, asset management entities, underwriters, accountants, 
brokers, brokers-dealers, and providers of legal services--
    (1) Qualified as a Service-Disabled Veteran-Owned Small Business 
Concern as defined in 13 CFR 125.8 through 125.13; or
    (2) More than fifty percent (50%) of the ownership or control of 
which is held, directly or indirectly by one or more persons with a 
disability; and
    (3) More than fifty percent (50%) of the net profit or loss of 
which accrues to one or more persons with a disability.
    Diversity and inclusion strategic planning is the process of 
analyzing the business and activities of a regulated entity to develop 
strategies for promoting diversity and ensuring the inclusion of 
minorities, women, and individuals with disabilities in all activities 
and at every level of the organization, including management, 
employment, and contracting. A diversity and inclusion strategic plan 
serves as the primary means to communicate the board of director's 
long-term diversity and inclusion vision for the organization, to 
establish measurable goals and objectives for achieving the vision, and 
to ensure accountability for achieving the goals and objectives.
    Diversity spend with non-diverse-owned businesses means the dollar 
amount(s) paid by a regulated entity to a prime contractor that is not 
a minority-, women-, or disabled-owned business for professional 
services (i.e., the amount paid for work performed, as may be adjusted, 
in connection with providing legal, accounting, or other professional 
or consulting services) provided by or allocated to a partner, member 
or other equity owner who is a minority, woman, or an individual with a 
disability.
* * * * *
    Minority-owned business means a business, and includes, but is not 
limited to, financial institutions, mortgage banking firms, investment 
banking firms, investment consultants or advisors, financial services 
entities, asset management entities, underwriters, accountants, 
brokers, broker-dealers and providers of legal services--
    (1) More than fifty percent (50%) of the ownership or control of 
which is held, directly or indirectly, by one or more minority 
individuals; and
    (2) More than fifty percent (50%) of the net profit or loss of 
which accrues to one or more minority individuals.
    Minority-serving financial institution means a financial 
institution that serves minority populations primarily, including 
depository and nondepository institutions where fifty-one percent (51%) 
or more of the stock is owned by one or more minority individuals or 
where a majority of the members of the board of directors are minority.
    Prime contractor (tier 1) means a supplier that enters into a 
contract with a regulated entity to provide goods and/or services 
directly to that regulated entity.
    Promotion means the advancement of an employee within a regulated 
entity and may be the result of an employee's proactive pursuit of a 
higher job ranking or a reward for good performance. A promotion is 
typically associated with an increase in an employee's pay due to 
additional or enhanced job responsibilities.
* * * * *
    Subcontractor (tier 2) means a supplier that enters into a contract 
with a prime contractor (tier 1) of a regulated entity to provide goods 
and/or services to that prime contractor (tier 1) for the benefit of 
the regulated entity.
    Women-owned business means a business and includes, but is not 
limited to, financial institutions, mortgage banking firms, investment 
banking firms, investment consultants or advisors, financial services 
entities, asset management entities, underwriters, accountants, 
brokers, broker-dealers and providers of legal services--
    (1) More than fifty percent (50%) of the ownership or control of 
which is held, directly or indirectly, by one or more women; and
    (2) More than fifty percent (50%) of the net profit or loss of 
which accrues to one or more women.


Sec.  1207.2  [Amended]

0
3. Amend Sec.  1207.2 by:
0
a. Removing from paragraphs (a) and (b) the phrase ``and the Office of 
Finance'';
0
b. Adding in paragraph (b) a comma immediately following the phrase 
``to the maximum extent possible''; and
0
c. Revising paragraph (c).
    The revision reads as follows:


Sec.  1207.2  Policy, purpose, and scope.

* * * * *
    (c) Scope. This part applies to each regulated entity's 
development, implementation, and adherence to diversity, inclusion, and 
non-discrimination policies, practices, and principles, including 
opportunities to award contracts for goods and/or services.


Sec.  1207.3  [Amended]

0
4. Amend Sec.  1207.3 by:
0
a. In paragraph (a), removing the phrase ``or the Office of Finance''; 
and
0
b. Revising paragraph (b) and adding paragraphs (c) and (d) to read as 
follows:


Sec.  1207.3  Limitations.

* * * * *
    (b) The contract clause required by Sec.  1207.21(b)(6) and the 
itemized data reporting on numbers of contracts and amounts involved 
required under Sec. Sec.  1207.22 and 1207.23(b)(13) through (22) apply 
only to contracts for services in any amount and to contracts for

[[Page 74737]]

goods that equal or exceed $25,000 in annual value, whether in a single 
contract, multiple contracts, a series of contracts or renewals of 
contracts, with a single vendor.
    (c) Within ninety (90) days after the effective date of this 
regulation each regulated entity shall submit to FHFA a list of the 
types of contracts it considers exempt under Sec.  1207.3(b) and any 
thresholds, exceptions, and limitations the regulated entity 
establishes for the implementation of Sec.  1207.21(c)(2). The 
submission shall address the criteria identified in Sec.  
1207.21(b)(9).
    (d) Each regulated entity shall notify FHFA within thirty (30) days 
after any change in the types of contracts it considers exempt under 
Sec.  1207.3(b) or any change in the thresholds, exceptions, and 
limitations the regulated entity establishes for the implementation of 
Sec.  1207.21(c)(2).

Subpart C--[Amended]

0
5. Amend the heading of subpart C by removing ``and the Office of 
Finance''.


Sec.  1207.20  [Amended]

0
6. Amend Sec.  1207.20 by:
0
a. Removing the phrases ``and the Office of Finance'' and ``or the 
Office of Finance'' wherever they appear in paragraph (a); and
0
b. Revising paragraphs (b) and (c) to read as follows:


Sec.  1207.20  Office of Minority and Women Inclusion.

* * * * *
    (b) Adequate resources. The board of directors of each regulated 
entity will ensure that the Office of Minority and Women Inclusion, or 
office designated to lead the regulated entity in performing the 
responsibilities of this part, is provided relevant resources, 
including, but not limited to, human, technological, and financial 
resources sufficient to fulfill the requirements of this part. The 
regulated entity will also ensure that any officer(s) designated to 
direct and oversee its diversity and inclusion programs has the 
necessary knowledge, skills, competencies, and abilities to effectively 
implement the minimum standards and requirements found in this part.
    (c) Responsibilities. Each Office of Minority and Women Inclusion, 
or the office designated to perform the responsibilities of this part, 
is responsible for leading the regulated entity's board-approved 
strategies, for fulfilling the requirements of this part, 12 U.S.C. 
1833e(b) and 4520, and such standards and requirements as the Director 
may issue hereunder.
0
6. Amend Sec.  1207.21 by:
0
a. Revising the section heading;
0
b. Removing the phrases ``and the Office of Finance'', ``and Office of 
Finance'', ``or the Office of Finance'' and ``and the Office of 
Finance's'' wherever they appear;
0
c. Revising the first sentence of paragraph (a);
0
d. Revising the last sentence of paragraph (b) introductory text;
0
e. Revising paragraph (b)(2);
0
f. Redesignating paragraphs (b)(6) through (9) as paragraphs (b)(8) 
through (11), respectively;
0
g. Redesignating paragraphs (b)(3) through (5) as paragraphs (b)(4) 
through (6), respectively;
0
h. Adding new paragraphs (b)(3) and (7);
0
i. Revising newly redesignated paragraphs (b)(4), (5), (9), and (10); 
and
0
j. Adding paragraphs (d) and (e).
    The revisions and additions read as follows:


Sec.  1207.21  Promoting diversity and ensuring inclusion in all 
business and activities.

    (a) Equal opportunity notice. Each regulated entity and the Office 
of Finance shall publish a statement, endorsed by its Chief Executive 
Officer and approved by its Board of Directors, confirming its 
commitment to the principles of equal opportunity in employment and in 
contracting, at a minimum regardless of race, color, religion, sex, 
national origin, disability status, genetic information, age, sexual 
orientation, gender identity, or status as a parent. * * *
    (b) * * * The policies and procedures of each regulated entity, at 
a minimum, shall:
* * * * *
    (2) Describe its practices and principles for prohibiting 
discrimination in employment and contracting;
    (3) Give consideration to minority-, women-, and disabled-owned 
businesses when reviewing and evaluating contract proposals as required 
under Sec.  1207.2(c);
    (4) Attempt to resolve complaints of discrimination in employment 
and in contracting. Publication will include at a minimum making the 
procedure conspicuously accessible to employees and applicants through 
print, electronic, or alternative media formats, as necessary, and 
through the regulated entity's Web site;
    (5) Accept, review, and grant or deny requests for reasonable 
accommodations of disabilities from employees or applicants for 
employment;
* * * * *
    (7) Develop a stand-alone diversity and inclusion strategic plan or 
incorporate into its existing strategic plan a diversity and inclusion 
plan that proactively focuses on promoting the advancement of diversity 
and inclusion. The stand-alone diversity and inclusion strategic plan 
and the incorporated diversity and inclusion plan are hereinafter 
referred to as the diversity and inclusion strategic plan;
* * * * *
    (9) Identify the types of contracts the regulated entity considers 
exempt under Sec.  1207.3(b) and any thresholds, exceptions, and 
limitations the regulated entity establishes for the implementation of 
Sec.  1207.21(c)(2). The policies and procedures must describe the 
following:
    (i) The rationale and need for the thresholds, exceptions, or 
limitations;
    (ii) The criteria used to implement the thresholds, exceptions, or 
limitations; and
    (iii) Any negative or adverse impact the implementation of the 
thresholds, exceptions, or limitations would likely have on contracting 
opportunities for minorities, women, and individuals with disabilities, 
and minority-, women-, and disabled-owned businesses.
    (10) Be published and made accessible to employees, applicants for 
employment, contractors, potential contractors, and members of the 
public through print, electronic, or alternative media formats, as 
necessary, and through the regulated entity's Web site; and
* * * * *
    (d) Diversity and inclusion strategic planning. No later than 45 
days after the commencement of each calendar year, the board of 
directors of each regulated entity shall adopt strategies for promoting 
diversity and inclusion of minorities, women, and individuals with 
disabilities, and minority-, women-, and disabled-owned businesses for 
at least the succeeding three years (i.e., a diversity and inclusion 
strategic plan). The board of directors of each regulated entity shall 
review and annually affirm that the diversity and inclusion strategic 
plan remains applicable and appropriate during the two-year period that 
follows the adoption of the plan.
    (e) Contents of the diversity and inclusion strategic plan. The 
diversity and inclusion strategic plan shall include the following:
    (1) A vision and/or mission statement that address the importance 
of promoting diversity and ensuring the inclusion of minorities, women, 
and individuals with disabilities in order to fulfill Sec.  1207.2;

[[Page 74738]]

    (2) Measurable strategic goals and objectives for accomplishing the 
agreed-upon priorities and intended outcomes developed to advance 
diversity and ensure the inclusion of minorities, women, and 
individuals with disabilities at the regulated entity in accordance 
with Sec.  1207.2; and
    (3) A requirement to create and implement action plans to achieve 
the strategic goals and objectives and management reporting 
requirements for monitoring the implementation of those goals and 
objectives.


Sec.  1207.22  [Amended]

0
7. Amend Sec.  1207.22 by removing the phrases ``and Office of 
Finance'', ``and the Office of Finance'', ``or the Office of Finance'', 
and ``the Office of Finance's'' from the section heading and from 
wherever else they appear.


Sec.  1207.23  [Amended]

0
8. Amend Sec.  1207.23 by:
0
a. Removing the phrases ``and the Office of Finance'', ``or the Office 
of Finance'', and ``or the Office of Finance's'' from all paragraphs;
0
b. In paragraphs (b)(3) and (7), removing the phrase ``individuals 
applying'' and adding in its place ``applicants'';
0
c. Adding ``and the Office of Finance'' after ``each Bank'' in 
paragraph (b)(9)(i); adding ``and the Office of Finance'' after ``each 
Bank'' in paragraph (b)(9)(i)(A); adding ``and the Office of Finance'' 
to the end of the sentence in paragraph (b)(9)(B)(ii); adding ``and the 
Office of Finance'' after ``by the Banks'' in paragraph (b)(10);
0
d. Redesignating paragraphs (b)(14) through (20) as paragraphs (b)(19) 
through (25), respectively;
0
e. Redesignating paragraphs (b)(11) through (13) as paragraphs (b)(13) 
through (15), respectively;
0
f. Redesignating paragraphs (b)(9) and (10) as paragraphs (b)(10) and 
(11), respectively;
0
g. Adding new paragraphs (b)(9) and (12);
0
h. Revising newly redesignated paragraphs (b)(14) and (15);
0
i. Adding new paragraphs (b)(16), (17), and (18); and
0
j. Revising newly redesignated paragraphs (b)(19) and (23).
    The revisions and additions read as follows:


Sec.  1207.23  Annual reports--format and content.

* * * * *
    (b) * * *
    (9) Data showing for the reporting year by minority, gender, and 
disability classification--
    (i) The number of individuals responsible for supervising employees 
and/or managing the functions or departments of the regulated entity; 
and
    (ii) A description of the strategies, initiatives, and activities 
executed during the preceding year to promote diverse individuals to 
supervisory and management roles;
* * * * *
    (12) A description of strategies, initiatives, and activities the 
regulated entity implemented to advance diversity and inclusion in 
conjunction with its efforts to--
    (i) Promote access to single- and multi-family mortgage credit by--
    (A) Assessing challenges and impediments minority-serving financial 
institutions face in accessing the secondary mortgage market and/or 
providing access to single- and multi-family mortgage credit for 
creditworthy borrowers; and
    (B) Supporting lenders who serve minority communities;
    (ii) Promote diversity in capital market transactions by--
    (A) Assessing challenges and impediments minority-, women-, and 
disabled-owned businesses face providing capital market or financial 
transaction services including, but not limited to, those identified in 
Sec.  1201.1; and
    (B) Identifying, considering, and selecting minority-, women-, and 
disabled-owned businesses to participate in capital market or financial 
transactions;
    (iii) Promote diversity and inclusion in affordable housing and 
community investment programs;
* * * * *
    (14) Cumulative data separately showing the total number of 
contracts in place at the beginning of the reporting year as well as 
those entered into during the reporting year;
    (15) Cumulative data separately showing the total amount paid for 
contracts in place at the beginning of the reporting year as well as 
those entered into during the reporting year;
    (16) Cumulative data separately showing the total number of 
contracts entered into during the reporting year that were--
    (i) Considered exempt under Sec.  1207.3(b);
    (ii) Prime contracts (tier 1) entered into with minorities or 
minority-owned businesses, women or women-owned businesses, and 
individuals with disabilities or disabled-owned businesses;
    (iii) Subcontractor (tier 2) contracts that prime contractors (tier 
1) entered into with minorities or minority-owned businesses, women or 
women-owned businesses, and individuals with disabilities or disabled-
owned businesses;
    (17) Cumulative data separately showing the total amount paid for 
contracts entered into during the reporting year that were--
    (i) Considered exempt under Sec.  1207.3(b);
    (ii) To prime contractors (tier 1) that are minorities or minority-
owned businesses, women or women-owned businesses, and individuals with 
disabilities or disabled-owned businesses in place at the beginning of 
the reporting year as well as those entered into during the reporting 
year;
    (iii) To subcontractors (tier 2) that are minorities or minority-
owned businesses, women or women-owned businesses, and individuals with 
disabilities or disabled-owned businesses in place at the beginning of 
the reporting year;
    (18) Cumulative data separately showing the total diversity spend 
with non-diverse-owned businesses during the reporting year;
    (19) The annual total of amounts paid to prime contractors (tier 1) 
and subcontractors (tier 2) and the percentage of which was paid 
separately through prime contracts and subcontracts to minorities or 
minority-owned businesses, women or women-owned businesses, and 
individuals with disabilities or disabled-owned businesses during the 
reporting year;
* * * * *
    (23) A comparison of the data reported under paragraphs (b)(13) 
through (19) of this section with the same information reported for the 
previous year;


Sec.  1207.24  [Amended]

0
9. Amend Sec.  1207.24 by removing the phrase ``or the Office of 
Finance's''.
0
10. Add Sec.  1207.25 to read as follows:


Sec.  1207.25  Office of Finance.

    All parts of this regulation and the standards issued under it 
shall apply to the Office of Finance, as defined in Sec.  1201.1, in 
the same manner in which it applies to the regulated entities, unless 
the Office of Finance is otherwise specifically addressed or excluded.

     Dated: October 18, 2016.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2016-25726 Filed 10-26-16; 8:45 am]
 BILLING CODE 8070-01-P



                                                  74730                 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules

                                                  system mobile home coil-only blower                     Stakeholders should contact DOE for                   Information Number (RIN) 2590–AA78,
                                                  power consumption at 0.30 in. wc.                       any additional information pertaining to              by any of the following methods:
                                                  (ASRAC Term Sheet, No. 76 at p. 3) 81                   the analyses performed for this NODA.                   • Agency Web site: www.fhfa.gov/
                                                  FR at 58185 (Aug. 24, 2016). The space-                   Issued in Washington, DC, on October 21,            open-for-comment-or-input.
                                                  constrained coil-only SEER reduced by                   2016.                                                   • Federal eRulemaking Portal: http://
                                                  an average of 2%. DOE applied this 2%                   Kathleen B. Hogan,                                    www.regulations.gov. Follow the
                                                  reduction to the SEER standard level                    Deputy Assistant Secretary for Energy                 instructions for submitting comments. If
                                                  recommended by the CAC/HP Working                       Efficiency, Energy Efficiency and Renewable           you submit your comment to the
                                                  Group (to maintain stringency                           Energy.                                               Federal eRulemaking Portal, please also
                                                  equivalent to the current space                         [FR Doc. 2016–26007 Filed 10–26–16; 8:45 am]          send it by email to FHFA at
                                                  constrained air conditioner 12 SEER                     BILLING CODE 6450–01–P
                                                                                                                                                                RegComments@fhfa.gov to ensure
                                                  standard) to derive the translated SEER2                                                                      timely receipt by the Agency. Please
                                                  level in Table 1.                                                                                             include Comments/RIN 2590–AA78 in
                                                     For the space-constrained heat pump                                                                        the subject line of the message.
                                                                                                          FEDERAL HOUSING FINANCE
                                                  SEER translation, DOE used a similar                                                                            • Courier/Hand Delivery: The hand
                                                  methodology as it used for space-                       AGENCY
                                                                                                                                                                delivery address is: Alfred M. Pollard,
                                                  constrained air conditioners, but the                                                                         General Counsel, Attention: Comments/
                                                                                                          12 CFR Part 1207
                                                  adjustments to blower power were                                                                              RIN 2590–AA78, Federal Housing
                                                  slightly different. Section 429.16                      RIN 2590–AA78                                         Finance Agency, 400 Seventh Street
                                                  requires that split-system heat pumps                                                                         SW., Eighth Floor, Washington, DC
                                                  have blower-coil efficiency                             Minority and Women Inclusion
                                                                                                                                                                20219. Deliver the package to the
                                                  representations. In addition, the August                Amendments
                                                                                                                                                                Seventh Street entrance Guard Desk,
                                                  2016 test procedure SNOPR proposed                      AGENCY: Federal Housing Finance                       First Floor, on business days between 9
                                                  that split-system coil-only products be                 Agency.                                               a.m. to 5 p.m.
                                                  tested at a minimum external static                     ACTION: Notice of proposed rulemaking.                  • U.S. Mail, United Parcel Service,
                                                  pressure of 0.5 in. wc., which is higher                                                                      Federal Express or Other Mail Service:
                                                  than the 0.1 to 0.2 in. wc. at which these              SUMMARY:   The Federal Housing Finance                The mailing address for comments is:
                                                  products are currently. DOE replaced                    Agency (FHFA or Agency) is issuing                    Alfred M. Pollard, General Counsel,
                                                  the tested indoor fan power with fan                    notice and providing an opportunity for               Attention: Comments/RIN 2590–AA78,
                                                  power at 0.5 in. wc. determined from                    the public to comment on proposed                     Federal Housing Finance Agency, 400
                                                  product specification sheets and                        amendments to its regulations on                      Seventh Street SW., Eighth Floor,
                                                  recalculated SEER. The tested SEER                      minority and women inclusion. Those                   Washington, DC 20219.
                                                  reduced by an average of 4% to 11.5, as                 regulations, require the Federal National             FOR FURTHER INFORMATION CONTACT:
                                                  listed in Table 1 of this preamble. DOE                 Mortgage Association (Fannie Mae), the                Sharron P. A. Levine, Director, Office of
                                                  also evaluated the impact on SEER                       Federal Home Loan Mortgage                            Minority and Women Inclusion,
                                                  reduction, assuming operation at 0.30                   Corporation (Freddie Mac) (together,                  Sharron.Levine@fhfa.gov, (202) 649–
                                                  in. wc., as recommended by the CAC/                     Enterprises), and the Federal Home
                                                  HP ECS Working Group, given that the                                                                          3496; Eric Howard, Deputy Director,
                                                                                                          Loan Banks (Banks or Bank System)                     Office of Minority and Women
                                                  test procedure is not finalized and                     (collectively, the regulated entities) and
                                                  DOE’s proposals may change. DOE                                                                               Inclusion, Eric.Howard@fhfa.gov, (202)
                                                                                                          the Bank System’s Office of Finance to                649–3009; or James Jordan, Assistant
                                                  replaced the tested indoor fan power                    promote diversity and ensure the
                                                  with fan power at 0.30 in. wc.                                                                                General Counsel, James.Jordan@
                                                                                                          inclusion and utilization of minorities,              fhfa.gov, (202) 649–3075 (not toll-free
                                                  determined from product specification                   women, and individuals with
                                                  sheets and recalculated SEER. The                                                                             numbers), Federal Housing Finance
                                                                                                          disabilities and minority-, women-, and               Agency, 400 Seventh Street SW.,
                                                  tested SEER reduced by an average of                    disabled-owned businesses in all
                                                  1% to 11.9, as listed in Table 1 of this                                                                      Washington, DC 20219. The telephone
                                                                                                          business and activities at all levels,                number for the Telecommunications
                                                  preamble.                                               including management, employment,
                                                     For the space-constrained heat pump                                                                        Device for the Hearing Impaired is (800)
                                                                                                          and contracting. The proposed                         877–8339.
                                                  HSPF translation, DOE used the same                     amendments would clarify the scope of
                                                  methodology as it used for its SDHV                                                                           SUPPLEMENTARY INFORMATION:
                                                                                                          the regulated entities’ obligation to
                                                  system HSPF translation (i.e., applying                 promote diversity and ensure the                      I. Comments
                                                  a 15% reduction). See section II.A.                     inclusion and utilization of minorities,                 FHFA invites comments on all aspects
                                                  III. Issues on Which DOE Seeks Public                   women, and individuals with                           of the proposed amendments and will
                                                  Comment                                                 disabilities in all business and activities;          take all comments into consideration
                                                                                                          require each regulated entity to develop              before issuing a final rule. Copies of all
                                                     DOE is interested in receiving
                                                                                                          and adopt strategies for promoting                    comments received will be posted
                                                  comments and views of interested
                                                                                                          diversity and ensuring the inclusion of               without change on the FHFA Web site
                                                  parties concerning the translation of
                                                                                                          minorities, women, and individuals                    at http://www.fhfa.gov and will include
                                                  SEER and HSPF values to SEER2 and
                                                                                                          with disabilities; and improve the                    any personal information you provide,
                                                  HSPF2 values shown in Table 1 for
                                                                                                          usefulness and comparability of the                   such as your name, address, email
                                                  spaced-constrained and SDHV products.
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                                                     The purpose of this NODA is to notify                information the regulated entities report             address, and telephone number. Copies
                                                  industry, manufacturers, consumer                       to FHFA about their efforts to advance                of all comments received will be made
                                                  groups, efficiency advocates,                           diversity and inclusion.                              available for examination by the public
                                                  government agencies, and other                          DATES: Written comments must be                       on business days between the hours of
                                                  stakeholders of the publication of an                   received on or before December 27,                    l0 a.m. and 3 p.m., at the Federal
                                                  analysis of potential energy                            2016.                                                 Housing Finance Agency, 400 Seventh
                                                  conservation standards for commercial                   ADDRESSES: You may submit your                        Street SW., Eighth Floor, Washington,
                                                  and industrial fans and blowers.                        comments, identified by Regulatory                    DC 20219. To make an appointment to


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                                                                         Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules                                                    74731

                                                  inspect comments, please call the Office                 initiatives to improve access to mortgage                   including in management, employment,
                                                  of General Counsel at (202) 649–3804.                    credit, and strategies for promoting the                    procurement, insurance, and all types of
                                                                                                           diversity of supervisors and managers.                      contracts.4 Part 1207 also requires each
                                                  II. Objectives
                                                                                                                                                                       regulated entity to submit to the FHFA
                                                     The objectives of the proposed                        III. Background
                                                                                                                                                                       Director, on or before March 1 of each
                                                  amendments are to:                                          Section 1116 of the Housing and                          year, a detailed annual report
                                                     • Ensure that the regulated entities 1                Economic Recovery Act of 2008 (HERA)                        summarizing their activities during the
                                                  fulfill the letter and spirit of their legal             amended section 1319A of the Federal                        reporting year (January 1 through
                                                  obligation to promote diversity and                      Housing Enterprises Financial Safety                        December 31 of the preceding year) to
                                                  ensure the inclusion and utilization of                  and Soundness Act of 1992 (Safety and                       comply with the OMWI regulatory
                                                  minorities, women, and individuals                       Soundness Act), (12 U.S.C. 4520), to                        requirements.5
                                                  with disabilities as well as minority-,                  require, in part, that the regulated                           In addition, part 1207 provides that
                                                  women-, and disabled-owned                               entities establish or designate an office                   the FHFA Director has broad
                                                  businesses, in all their business and                    to carry out the requirements of an                         enforcement authority in that he or she
                                                  activities;                                              Office of Minority and Women                                may enforce this Rule and standards
                                                     • Clarify that the requirement to                     Inclusion (OMWI). That office is                            issued under it in any manner and
                                                  promote diversity and inclusion applies                  responsible for: Fulfilling the                             through any means within his or her
                                                  to all the regulated entities’ operational,              requirements of section 1116 of HERA                        authority, including through identifying
                                                  commercial and economic endeavors,                       that include all matters relating to                        matters requiring attention, corrective
                                                  including management, employment,                        diversity in the entity’s management,                       action orders, directives, or enforcement
                                                  contracting, capital market transactions,                employment, and business activities;                        actions under 12 U.S.C. 4513b and
                                                  and affordable housing and community                     developing and implementing standards                       4514.6 To that end, the FHFA Director
                                                  investment programs;                                     and procedures to promote diversity in
                                                                                                                                                                       may conduct examinations of a
                                                     • Require the regulated entities to                   all business and activities of the
                                                                                                                                                                       regulated entity’s activities under, and
                                                  develop a stand-alone diversity and                      regulated entity; and submitting an
                                                                                                                                                                       in compliance with, this part pursuant
                                                  inclusion strategic plan or incorporate                  annual report to FHFA detailing the
                                                                                                                                                                       to 12 U.S.C. 4517.7
                                                  diversity and inclusion into its existing                actions taken to promote diversity and
                                                  strategic planning process and adopt                     inclusion. Furthermore, 12 U.S.C.                           IV. Existing Examination Guidance and
                                                  strategies for promoting diversity and                   1833e,1 and Executive Order 11478,2                         Regulatory Requirements for Strategic
                                                  ensuring the inclusion of minorities,                    which is made applicable to FHFA and                        Planning
                                                  women, and individuals with                              its regulated entities by 12 U.S.C. 1833e,
                                                                                                                                                                          Strategic planning is critical to the
                                                  disabilities as well as minority-, women-                generally require FHFA and the
                                                                                                                                                                       success of any organization, including
                                                  , and disabled-owned businesses;                         regulated entities to promote equal
                                                                                                                                                                       the regulated entities. As noted in
                                                     • Require the regulated entities to                   opportunity in employment.
                                                                                                                                                                       FHFA’s Examination Manual (EM)
                                                  amend their policies on equal                               FHFA has adopted regulations to
                                                                                                           implement section 1116 of HERA, 12                          module entitled, Strategic Planning, ‘‘in
                                                  opportunity in employment and                                                                                        its most fundamental form, strategic
                                                  contracting to include sexual                            U.S.C. 1833e, and in conformance with
                                                                                                           Executive Order 11478, as amended, to                       planning is the process of evaluating
                                                  orientation, gender identity, and status                                                                             where the institution is, determining
                                                  as a parent to the list of protected                     set forth the minimum requirements for
                                                                                                           the affirmative program for equal                           where the board would like the
                                                  classifications;                                                                                                     institution to go and which risks it is
                                                     • Encourage the regulated entities to                 opportunity and reporting requirements
                                                                                                           for the regulated entities.3 Those                          willing to accept, and developing a plan
                                                  expand contracting opportunities for
                                                                                                           regulations, located at 12 CFR part 1207,                   to get there.’’ 8 The EM also notes that,
                                                  minorities, women, and individuals
                                                                                                           require each regulated entity to establish                  ‘‘strategic planning is the process of
                                                  with disabilities by working with prime
                                                                                                           an OMWI office, or to designate another                     establishing goals and developing a
                                                  contractors (tier 1) to provide
                                                                                                           office, that would be responsible for                       roadmap for achieving those goals.’’ 9 A
                                                  subcontracting (tier 2) opportunities to
                                                                                                           fulfilling the entity’s OMWI                                strategic plan serves as the primary
                                                  minority-, women-, and disabled-owned
                                                                                                           responsibilities under the statute and                      means to communicate the board of
                                                  businesses;
                                                                                                                                                                       directors’ long-term vision for the
                                                     • Affirm that the regulated entities                  the Rule. Each of these entities must
                                                                                                           implement policies and procedures to                        organization and establish measurable
                                                  are authorized to expand the scope of
                                                                                                           ensure, to the maximum extent possible                      goals and objectives for achieving this
                                                  their outreach and inclusion programs
                                                                                                           consistent with financially safe and                        vision. The EM also identifies the
                                                  beyond the requirements of the Rule,
                                                                                                           sound business practices, the inclusion                     following as components of an effective
                                                  which focuses on minorities, women,
                                                                                                           and utilization of minorities, women,                       strategic planning process:
                                                  and individuals with disabilities; and
                                                     • Improve the usefulness and                          individuals with disabilities, and                             • An analysis of the regulated entity’s
                                                  comparability of the annual reports to                   minority-, women-, and disabled-owned                       financial and operational condition;
                                                  FHFA by requiring that the regulated                     businesses in all business and activities                      • An assessment of internal and
                                                  entities provide information about their                 and at all levels of the regulated entity,                  external risks to the regulated entity;
                                                  efforts to advance diversity and                                                                                        • An evaluation of the regulated
                                                  inclusion through capital market                            1 See Public Law 101–73, title XII, sec. 1216, Aug.      entity’s strengths and weaknesses;
                                                                                                           9, 1989, 103 Stat. 529; Public Law 102–233, title III,
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                                                  transactions, affordable housing and                     sec. 302(a), Dec. 12, 1991; Public Law 110–289, div.          4 12  CFR 1207.21(b).
                                                  community investment programs,                           A, title II, sec. 1216(g), July 30, 2008, 122 Stat. 2793;
                                                                                                                                                                         5 12  CFR 1207.23.
                                                                                                           Public Law 111–203, title III, sec. 367(9), July 21,
                                                                                                                                                                         6 12 CFR 1207.24.
                                                     1 For readability, where the preamble refers to a     2010, 124 Stat. 1557.
                                                                                                              2 Executive Order 11478—Equal Employment                   7 Id.
                                                  ‘‘regulated entity’’ or the ‘‘regulated entities’’ the
                                                  provisions apply equally to the Office of Finance,       Opportunity in the Federal Government, August 8,              8 FHFA Examination Manual, Strategic Planning

                                                  unless such application would conflict with a            1969, as amended.                                           Module, March 2013, http://www.fhfa.gov/
                                                  statute or regulation that specifically distinguishes       3 See 75 FR 1289 (January 11, 2010), 75 FR 81395         SupervisionRegulation/Documents/Strategic_
                                                  the treatment of the Office of Finance from the          (December 28, 2010), 79 FR 35960 (June 25, 2014),           Planning_Module_Final_Version_1.0–508.pdf.
                                                  regulated entities.                                      and 80 FR 25209 (May 4, 2015).                                9 Id.




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                                                  74732                 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules

                                                     • An evaluation of opportunities or                  recognize that diversity and inclusion                  • Sponsoring and/or supporting
                                                  potential threats facing the regulated                  are vital components of long-term                     community events and celebrations;
                                                  entity;                                                 business viability and success and, as a                • Establishing diversity and inclusion
                                                     • The financial and operational goals                result, have strictly limited them solely             councils;
                                                  and realistic projections that serve as                 to the human resource function.                         • Establishing and/or sponsoring
                                                  benchmarks for achieving desired                        Organizations that effectively manage                 employee resource or affinity groups;
                                                  results within a defined time frame;                    diversity and inclusion have integrated                 • Expanding the scope of outreach
                                                     • The process by which the regulated                 the practice into all of their processes by           activities and initiatives to target and
                                                  entity plans to reach its financial and                 developing and implementing                           recruit minorities, women, and
                                                  operational goals;                                      comprehensive diversity and inclusion                 individuals with disabilities for
                                                     • The identification of those                        strategies. Their path to success starts              employment;
                                                  responsible for achieving the goals; and                with senior leadership’s commitment to                  • Expanding the scope of outreach
                                                     • A means to monitor the results on                  integrate diversity and inclusion into                activities and initiatives to target
                                                  an ongoing basis.                                       the business, at all levels, and to manage            minority-, women-, and disabled-owned
                                                     The regulated entities are also subject              it in the same way as any other business              businesses for contracting opportunities;
                                                  to the Agency’s Prudential Management                   strategy.                                             and
                                                  and Operations Standards (PMOS)                            Effective strategic business planning,               • Marketing to diverse communities.
                                                  found in part 1236 of FHFA’s                            executive sponsorship, communication,                   Many of these efforts and initiatives
                                                  regulations. Pursuant to the PMOS                       change management, project                            have enabled or enhanced the ability of
                                                  guidelines, the board of directors of                   management, day-to-day execution, and                 the regulated entities to promote
                                                  each regulated entity is responsible for                measurement are all regarded as                       opportunities for minorities, women,
                                                  adopting appropriate business                           business fundamentals for most                        and individuals with disabilities. While
                                                  strategies, policies, and procedures. The               functional areas in an organization. The              each has worked to build and improve
                                                  PMOS guidelines also establish                          research supports the premise that the                the foundation for advancing diversity
                                                  standards by which the board of                         ability to assess the current state and               and inclusion within its organization,
                                                  directors is to review and approve all                  measure the progress of its diversity and             more can be done to expand the
                                                  major strategies and policies at least                  inclusion efforts is also a fundamental               breadth, scope, and impact of its
                                                  annually, and make any necessary                        and prudent business practice.                        existing program. Gaps remain in the
                                                  revisions to ensure consistency with the                                                                      regulated entities’ processes and
                                                  overall business plan.                                  VI. Ongoing Efforts by the Regulated                  approaches for assessing, planning, and
                                                     FHFA regulations at 12 CFR 1239.31                   Entities To Advance Diversity and                     executing diversity and inclusion
                                                  provide detailed information on the                     Ensure Inclusion                                      programs that fulfill the letter and spirit
                                                  strategic planning requirements for each                   The Rule became effective on January               of section 1116 of HERA.
                                                  Bank including a requirement that their                 27, 2011, and set forth the minimum
                                                  board of directors have a strategic                                                                           VII. The Proposed Amendments
                                                                                                          requirements for the regulated entities’
                                                  business plan in effect at all times.                   diversity and inclusion programs and                     The proposed amendments would
                                                  FHFA regulation 12 CFR 1239.31(b)                       reporting requirements. They responded                revise the Rule to require each regulated
                                                  requires the board of directors to (1)                  to the new regulatory requirements by                 entity to engage in diversity and
                                                  review the strategic business plan at                   establishing an OMWI office or                        inclusion strategic planning. They
                                                  least annually; (2) amend the plan as                   designating another office responsible                would either develop a stand-alone
                                                  appropriate; (3) re-adopt the plan at                   for fulfilling the entity’s OMWI                      diversity and inclusion strategic plan or
                                                  least every three years; and (4) establish              responsibilities. They implemented                    incorporate diversity and inclusion into
                                                  management reporting requirements and                   policies, procedures, and programs to                 their existing strategic planning process.
                                                  monitor implementation of the strategic                 improve human resource processes for                  Under the proposal, their board of
                                                  business plan and the operating goals                   recruiting, hiring, and promoting                     directors must establish an
                                                  and objectives contained in it.                         minorities, women, and individuals                    organizational tone for enhanced focus
                                                                                                          with disabilities. They also focused                  on, and commitment to, diversity and
                                                  V. Importance of Diversity and
                                                                                                          attention on identifying diverse                      inclusion. The board of director’s
                                                  Inclusion Strategic Planning
                                                                                                          suppliers and improving outreach                      ongoing oversight assists in creating the
                                                    A significant and growing body of                                                                           conditions for success by ensuring
                                                                                                          efforts to increase participation
                                                  research provides evidence that having                                                                        alignment with the overall strategic and
                                                                                                          opportunities for diverse businesses.
                                                  a diverse and inclusive workforce and                                                                         operational direction of the regulated
                                                                                                          These efforts have resulted in
                                                  leadership team benefits an organization                                                                      entity. Senior management teams also
                                                                                                          improvements in workforce diversity
                                                  by increasing its ability to be creative,                                                                     play an important role in the
                                                                                                          and the utilization of diverse vendors.
                                                  innovative, and solutions-oriented.10                                                                         development and execution of the
                                                                                                          In order to advance and promote
                                                  Many organizations, however, fail to                                                                          diversity and inclusion strategic plan.
                                                                                                          diversity and inclusion, the regulated
                                                                                                          entities currently engage in one or more                 The regulated entities have mainly
                                                    10 Page, Scott E., The Difference: How the Power
                                                                                                          of the following activities and                       focused on workforce and supplier
                                                  of Diversity Creates Better Groups, Firms, Schools,
                                                  and Societies, Princeton; Princeton UP, 2007. Print.    initiatives:                                          diversity to date, largely as a result of
                                                  https://books.google.com/books?id=                         • Conducting diversity and inclusion               the Rule’s primary focus on
                                                  FAFVHnJ7uK0C&printsec=frontcover&source=gbs_                                                                  requirements for establishing an OMWI,
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                                                                                                          education and training sessions for their
                                                  ge_summary_r&cad=0#v=onepage&q&f=false;                                                                       ensuring equal opportunity in
                                                  Global Diversity and Inclusion Fostering Innovation
                                                                                                          directors, managers, and employees;
                                                  Through a Diverse Workforce, Forbes, July 2011,            • Establishing mentoring programs                  employment and contracting, and
                                                  http://www.forbes.com/forbesinsights/innovation_        for employees, particularly minorities                developing and submitting reports on
                                                  diversity/index.html; and Barta, T., Kleiner, M., and   and women;                                            the efforts taken to promote diversity
                                                  Neumann, T., McKinsey Quarterly, Is There a                • Partnering with minority youth                   and ensure inclusion in employment
                                                  payoff from top-team diversity?, April 2012, http://
                                                  www.mckinsey.com/business-functions/                    development organizations;                            and contracting. The proposed
                                                  organization/our-insights/is-there-a-payoff-from-          • Sponsoring internship programs for               amendments emphasize the need to
                                                  top-team-diversity.                                     high school and college students;                     expand the scope of diversity and


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                                                                        Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules                                                74733

                                                  inclusion considerations to their other                 identity and in hiring by federal                     as minority-, women-, and disabled-
                                                  business and operational areas. The                     contractors on the basis of both sexual               owned businesses. Nonetheless, FHFA
                                                  proposed revision would require the                     orientation and gender identity.12 The                affirms that each regulated entity is
                                                  regulated entities to broaden the focus                 proposed amendments would require                     authorized to expand the scope of its
                                                  of their existing diversity and inclusion               the regulated entities to amend their                 diversity program beyond the
                                                  goals and strategies to address all                     policies on equal opportunity in                      requirements of Executive Order 11478,
                                                  aspects of their business and operations                employment and contracting to prohibit                section 1116 of HERA, and the
                                                  beyond workforce and supplier                           discrimination on the basis of sexual                 regulations at 12 CFR part 1207. As a
                                                  diversity only, consistent with section                 orientation, gender identity, and status              result, each regulated entity is
                                                  1116 of HERA.                                           as a parent.                                          encouraged to incorporate other aspects
                                                     The proposed amendments would                           The scope of the diversity and                     of diversity and inclusion (e.g., Lesbian,
                                                  encourage the regulated entities to                     inclusion obligations to be satisfied by              Gay, Bisexual, and Transgender (LGBT)-
                                                  develop and implement procurement                       the regulated entities varies depending               owned and veteran-owned businesses)
                                                  programs and initiatives that expand                    on the source of the authority. As                    into their respective OMWI outreach
                                                  contracting opportunities for minorities,               previously noted, FHFA’s Rule                         and inclusion programs, and in turn,
                                                  women, and individuals with                             implements 12 U.S.C. 1833e, which                     their strategic planning processes as
                                                  disabilities and minority-, women-, and                 applies the requirements of sections 1                long as the broader focus does not
                                                  disabled-owned businesses beyond                        and 2 of Executive Order 11478 to the                 detract from or diminish efforts to
                                                  contracting with prime contractors (tier                regulated entities. Section 1 requires the            promote opportunities for minorities,
                                                  1) by using subcontracting arrangements                 regulated entities to provide equal                   women, and individuals with
                                                  (tier 2). This could entail negotiating                 employment opportunity for all persons,               disabilities and minority-, women-, and
                                                  subcontracting opportunities for                        prohibit employment discrimination,                   disabled-owned businesses.
                                                  minorities, women, and individuals                      and promote equal employment
                                                  with disabilities in contracts between a                opportunity through a continuing                      Section 1207.1      Definitions
                                                  regulated entity and prime contractors.                 affirmative program. Section 2 describes                 FHFA proposes to add, revise, or
                                                  This could also involve entering into                   the elements of an affirmative program                remove several definitions in § 1207.1 to
                                                  contracts with majority-owned                           of equal employment opportunity,                      clarify the existing and new regulatory
                                                  businesses that advance opportunities                   which include providing sufficient                    requirements under part 1207. Where
                                                  for minorities, women, and individuals                  resources for administering the program               FHFA proposes to add or revise terms,
                                                  with disabilities. A new annual                         in a positive and effective manner;                   FHFA has reviewed several external
                                                  reporting requirement would include                     engaging in recruitment activities that               sources in search of industry standard
                                                  additional information about the                        reach all sources of job candidates; fully            definitions. FHFA has determined that
                                                  number of contracts and the amounts                     utilizing the skills of all employees;                there is no uniformly accepted term of
                                                  paid to prime contractors (tier 1) for                  providing employees opportunities to                  art or single source for the newly
                                                  subcontracts (tier 2) with minorities or                enhance their skills so they may                      proposed terms, so FHFA has adapted
                                                  minority-owned businesses, women or                     perform at their fullest potential and                the substance found in multiple external
                                                  women-owned businesses, and                             advance in accordance with their                      definitions 13 to account for the nature
                                                  individuals with disabilities or                        abilities; providing training and advice              and needs of FHFA’s regulated entities.
                                                  disabled-owned businesses during the                    to managers and supervisors to assure                    FHFA proposes to add definitions for
                                                  reporting year and the diverse spend                    their understanding and                               ‘‘Applicant’’ and ‘‘Promotion’’ to clarify
                                                  with non-diverse-owned businesses.                      implementation of the program;                        the scope of the information the
                                                     The Rule implements 12 U.S.C. 1833e                  assuring participation at the local level             regulated entities are required to report
                                                  and conforms with Executive Order                       with other employers, schools, and                    to FHFA under existing § 1207.23(b)(3)
                                                  11478, as amended, to require the                       public and private groups in cooperative              and § 1207.23(b)(7). FHFA is proposing
                                                  regulated entities to commit to the                     efforts to improve community                          a new definition of ‘‘Diversity and
                                                  principles of equal opportunity in                      conditions that affect employability; and             inclusion strategic planning’’ that would
                                                  employment and prohibit                                 providing for periodic evaluations of the             describe the process the regulated
                                                  discrimination on the basis of race,                    effectiveness of the program.                         entities must engage in to develop
                                                  color, national origin, sex, religion, age,                FHFA acknowledges that diversity                   strategies for promoting diversity and
                                                  disability status, or genetic information.              encompasses the broad range of                        ensuring the inclusion of minorities,
                                                  Executive Orders 13087 and 13152                        demographic characteristics identified                women, and individuals with
                                                  amended Executive Order 11478 to add                    in Executive Order 11478. However,
                                                  sexual orientation and status as a parent                                                                     disabilities.
                                                                                                          section 1116 of HERA only focuses on                     FHFA proposes to add definitions for
                                                  to the list of protected bases.11                       the responsibility of the regulated
                                                  Executive Order 13672, signed on July                                                                         ‘‘Prime contractor (tier 1)’’ and
                                                                                                          entities to promote diversity and ensure              ‘‘Subcontractor (tier 2)’’ to identify two
                                                  21, 2014, amended Executive Orders                      the inclusion of minorities and women.
                                                  11478 and 11246 to extend protection                                                                          types of contracting arrangements
                                                                                                          Therefore, in accordance with the                     available to the regulated entities to
                                                  against discrimination in hiring and                    statutory requirements, the primary
                                                  employment in the civilian federal                                                                            promote diversity and the inclusion of
                                                                                                          focus of the regulatory text amendments               minorities, women, and individuals
                                                  workforce on the basis of gender                        is on advancing and promoting                         with disabilities and minority-,
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                                                                                                          opportunities for minorities, women,
                                                    11 Executive Order 13087—Further Amendments
                                                                                                          and individuals with disabilities as well                13 For example, the proposed definition of
                                                  to Executive Order 11478, Equal Employment
                                                  Opportunity in the Federal Government, May 28,                                                                ‘‘Subcontractor (Tier II)’’ was adapted from
                                                                                                             12 Executive Order 13672—Further Amendments        definitions found in regulations implementing the
                                                  1998, https://www.gpo.gov/fdsys/pkg/FR-1998-06-
                                                  02/pdf/98-14689.pdf and Executive Order 13152;          to Executive Order 11478, Equal Employment            Small Business Act, Title 41 of the CFR addressing
                                                  Executive Order 13152—Further Amendments to             Opportunity in the Federal Government, and            Public Contracts and Property Management, and the
                                                  Executive Order 11478, Equal Employment                 Executive Order 11246, Equal Employment               Federal Acquisition Regulations as well as
                                                  Opportunity in the Federal Government, May 2,           Opportunity, July 21, 2014, https://www.gpo.gov/      definitions implemented by the National
                                                  2000, https://www.gpo.gov/fdsys/pkg/WCPD-2000-          fdsys/pkg/CFR-2015-title3-vol1/pdf/CFR-2015-          Association of Women in Construction and
                                                  05-08/pdf/WCPD-2000–05-08-Pg977.pdf.                    title3-vol1-eo13672.pdf.                              financial institutions such as Citi and KeyBank.



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                                                  74734                 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules

                                                  women-, and disabled-owned                              business’’ by clarifying that ownership               entity to notify FHFA within 30 days
                                                  businesses. FHFA also proposes to add                   can be direct or indirect. By revising the            after any additional changes to the list.
                                                  a definition for ‘‘Diversity spend with                 definition, FHFA wishes to encourage
                                                                                                                                                                Section 1207.20 Office of Minority and
                                                  non-diverse-owned businesses’’ to                       each regulated entity to develop and
                                                                                                                                                                Women Inclusion
                                                  describe the dollar amount a regulated                  implement procurement programs and
                                                  entity pays to a firm that is not owned                 initiatives without regard to the                       FHFA is proposing to revise
                                                  by a minority, woman, or individual                     distinction between businesses owned                  paragraphs (b) and (c) of § 1207.20 to
                                                  with a disability, for professional                     by individuals/natural persons and legal              clarify that a regulated entity’s board of
                                                  services provided by a partner, member,                 persons, such as corporations, as long as             directors has ultimate responsibility for
                                                  or other equity owner who is a minority,                the ultimate ownership benefits are held              achieving the requirements of part
                                                  woman, or individual with a disability.                 by predominantly disabled, minority, or               1207—not the regulated entity’s OMWI
                                                  This type of arrangement can occur                      women owners.                                         (or office designated to perform the
                                                  when an organization bases its decision                    Finally, FHFA is proposing to remove               responsibilities of part 1207). The
                                                  to engage a majority-owned law practice                 the definitions for ‘‘Director,’’ ‘‘FHFA,’’           proposed revision would clarify that the
                                                  or consulting firm based upon its                       ‘‘Office of Finance,’’ and ‘‘regulated                OMWI is responsible for leading the
                                                  interactions with a specific partner(s) or              entity’’ because they are now defined in              regulated entity’s efforts to promote
                                                  non-controlling owner(s) who is also a                  12 CFR part 1201, which defines terms                 diversity and inclusion, and that any
                                                  minority, woman, or individual with a                   that apply to all FHFA regulations.                   officer(s) designated to direct and
                                                  disability.                                                                                                   oversee the diversity and inclusion
                                                    FHFA proposes to add a definition for                 Section 1207.2        Policy, Purpose, and            programs has/have the necessary
                                                  ‘‘Minority-serving financial institution’’              Scope                                                 qualifications to effectively administer
                                                  that would be used by the regulated                                                                           the requirements of part 1207.
                                                                                                            FHFA proposes to revise § 1207.2(c)
                                                  entities in their efforts to promote access             to address the scope of each regulated                Section 1207.21 Promoting Diversity
                                                  to single- and multi-family mortgage                    entity’s responsibility to promote                    and Ensuring Inclusion in All Business
                                                  credit, including an assessment of the                  diversity and ensure the inclusion and                and Activities
                                                  challenges and impediments financial                    utilization of minorities, women, and                    FHFA is proposing to revise the title
                                                  institutions that primarily serve                       individuals with disabilities and                     of existing § 1207.21 from ‘‘Equal
                                                  minorities face in their efforts to access              minority-, women-, and disabled-owned                 opportunity in employment and
                                                  the secondary mortgage market. The                      businesses. The proposed regulatory                   contracting’’ to ‘‘Promoting diversity
                                                  proposed definition closely follows the                 language would place emphasis on the                  and ensuring inclusion in all business
                                                  Federal Deposit Insurance Corporation’s                 requirement to promote diversity and                  and activities’’ to accurately reflect the
                                                  (FDIC) Policy Statement Regarding                       ensure inclusion when awarding                        scope of requirements for advancing
                                                  Minority Depository Institutions 14 and                 contracts for goods and services.                     diversity and ensuring inclusion in all
                                                  encompasses depository and non-
                                                                                                          Section 1207.3        Limitations                     activities and at every level of the
                                                  depository financial institutions.
                                                    FHFA is proposing to revise the                                                                             regulated entity, including management,
                                                                                                             FHFA is proposing to revise existing               employment and contracting.
                                                  definition of ‘‘Women-owned business’’                  § 1207.3(b), which currently requires                    FHFA is proposing to amend
                                                  by removing one of the standards used                   each regulated entity’s contracts for                 § 1207.21(a) to add sexual orientation,
                                                  to determine whether a business                         goods over $10,000 to include a material              gender identity, and status as a parent
                                                  qualifies as a women-owned business.                    clause that commits the contractor to                 to the list of bases covered under each
                                                  The existing definitions for minority-,                 practice the principles of equal                      regulated entity’s equal opportunity
                                                  women-, and disabled-owned                              employment opportunity and                            statement as required by 12 U.S.C.
                                                  businesses include criteria for                         nondiscrimination and to submit                       1833e, and in conformance with
                                                  determining the diverse status of a                     demographic data reports with respect                 Executive Order 11478.
                                                  business based on who owns or controls                  to their workforce. FHFA proposes to                     FHFA is proposing to add a new
                                                  the business as well as who accrues the                 increase the material clause threshold to             paragraph to § 1207.21(b)(3) to address
                                                  profits or losses generated by the                      $25,000 to alleviate administrative                   the statutory requirement in section
                                                  business. The existing definition of                    burdens the regulated entities encounter              1116(b) of HERA that the regulated
                                                  ‘‘Women-owned business’’ also includes                  when routinely purchasing lower-value                 entities establish processes that give
                                                  a criterion based on the percentage of                  goods such as materials and supplies                  consideration to the diversity of an
                                                  senior management positions held by                     necessary for day-to-day operations.                  applicant when reviewing and
                                                  one or more women. FHFA believes this                   However, FHFA welcomes comments                       evaluating contract proposals and hiring
                                                  criterion is unnecessary due to the                     on the potential impact the proposed                  service providers. The proposed rule
                                                  emphasis the existing definition places                 threshold change could have on small                  would require them to develop
                                                  on ownership and control. The                           businesses and, specifically, on the                  procedures it would implement for
                                                  proposed removal of this criterion for                  dollar amount of the threshold.                       giving consideration to diversity when
                                                  women-owned businesses would bring                         FHFA is also proposing to add                      reviewing and considering contract
                                                  consistency to the Rule’s standards for                 paragraphs (c) and (d) to existing                    proposals and hiring service providers.
                                                  determining ownership and control of                    § 1207.3. Proposed § 1207.3(c) would                     Proposed § 1207.21(b)(7) would
                                                  minority- and disabled-owned                            require each regulated entity to submit               require each regulated entity to establish
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                                                  businesses. FHFA is also proposing to                   to FHFA within 90 days after the                      effective procedures for engaging in
                                                  revise the definitions of ‘‘Disabled-                   effective date of the amended Rule, a list            diversity and inclusion strategic
                                                  owned business,’’ ‘‘Minority-owned                      of the types of contracts it considers                planning. FHFA is also proposing to
                                                  business,’’ and ‘‘Women-owned                           exempt under § 1207.3(b) and any                      revise its allowance that the regulated
                                                    14 FDIC Policy Statement Regarding Minority
                                                                                                          thresholds, exceptions, and limitations               entities may establish, where
                                                  Depository Institutions, April 9, 2002, https://
                                                                                                          it establishes for implementing                       commercially reasonable, thresholds,
                                                  www.fdic.gov/regulations/resources/minority/            § 1207.21(c)(2). Proposed § 1207.3(d)                 exceptions, and limitations for
                                                  policy.html.                                            would then require each regulated                     implementing § 1207.21(b)(7) (proposed


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                                                                        Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules                                           74735

                                                  § 1207.21(b)(9)). Under § 1207.3(b), the                supervisory or managerial roles.                      would not adversely affect the Banks
                                                  regulated entities would consider any                   Proposed § 1207.23(b)(12) would require               taking into account all of the above
                                                  negative or adverse effects the                         each regulated entity to provide a                    factors.
                                                  thresholds, exceptions, and limitations                 description of the strategies, initiatives,
                                                                                                                                                                IX. Regulatory Impacts
                                                  would likely have on contracting                        and activities it implemented to
                                                  opportunities for minorities, women,                    advance diversity and inclusion in                    Paperwork Reduction Act
                                                  and individuals with disabilities and                   conjunction with capital market or
                                                                                                                                                                  The proposed regulation does not
                                                  minority-, women-, and disabled-owned                   financial transactions, efforts to promote
                                                                                                                                                                contain any information collection
                                                  businesses. The proposal would also                     access to credit, and affordable housing
                                                                                                                                                                requirement that requires the approval
                                                  ensure that the rationale used to support               and community investment programs.
                                                                                                                                                                of the Office of Management and Budget
                                                  the thresholds, exceptions, and                         Proposed § 1207.23(b)(16) and
                                                                                                                                                                under the Paperwork Reduction Act (44
                                                  limitations would not be used to                        § 1207.23(b)(17) would require each
                                                                                                                                                                U.S.C. 3501 et seq.).
                                                  frustrate the intent of the statutory or                regulated entity to report the number
                                                  regulatory requirements to promote                      and dollar amounts of contracts entered               Regulatory Flexibility Act
                                                  diversity and inclusion.                                into during the preceding year that it
                                                                                                                                                                   The Regulatory Flexibility Act (5
                                                     Proposed § 1207.21(d) would require                  considered exempt under § 1207.3(b).
                                                                                                                                                                U.S.C. 601 et seq.) requires that a
                                                  each regulated entity to develop and                    The proposed amendments would also
                                                                                                                                                                regulation that has a significant
                                                  implement strategies for promoting                      require reporting on the number and
                                                                                                                                                                economic impact on a substantial
                                                  diversity and ensuring the inclusion of                 dollar amounts of prime contracts and
                                                                                                                                                                number of small entities, small
                                                  minorities, women, and individuals                      subcontracts that prime contractors had
                                                                                                                                                                businesses, or small organizations
                                                  with disabilities and minority-,                        with minorities, women, and
                                                                                                                                                                include an initial regulatory flexibility
                                                  women-, and disabled-owned                              individuals with disabilities and
                                                                                                          minority-, women-, and disabled-owned                 analysis describing the regulation’s
                                                  businesses. The board-approved
                                                                                                          businesses. Proposed § 1207.23(b)(18)                 impact on small entities. Such an
                                                  strategies would cover three years and
                                                                                                          would require that the regulated entity               analysis need not be undertaken if the
                                                  be reviewed and affirmed by the board
                                                                                                          report on diversity spend with non-                   agency has certified that the regulation
                                                  of directors annually.
                                                     Proposed § 1207.21(e)(1) through                     diverse-owned businesses. Proposed                    will not have a significant economic
                                                  (e)(3) would establish the minimum                      § 1207.23(b)(19) would require the                    impact on a substantial number of small
                                                  requirements for developing a diversity                 regulated entity to provide the total                 entities. 5 U.S.C. 605(b). FHFA has
                                                  and inclusion strategic plan. The                       amounts paid to prime contractors and                 considered the impact of the proposed
                                                  requirements would complement the                       subcontractors and the percentage that                amendments under the Regulatory
                                                  guidance that has been provided in                      was paid to diverse vendors.                          Flexibility Act and certifies that the
                                                  FHFA’s EM, Strategic Planning, as well                     Finally, the proposed amendments                   proposed amendments, if adopted, are
                                                  as regulatory requirements and the                      would remove most references to the                   not likely to have a significant economic
                                                  PMOS guidelines. The proposed                           ‘‘Office of Finance’’ found in the                    impact on a substantial number of small
                                                  amendments would require the                            existing regulation. The proposed                     business entities because the regulation
                                                  regulated entities to include the                       change would neither alter nor reduce                 is only applicable to FHFA and the
                                                  following components in their diversity                 the Office of Finance’s responsibility to             regulated entities, which are not small
                                                  and inclusion strategic plans:                          promote diversity and inclusion and                   entities for purposes of the Regulatory
                                                     • A vision and/or mission statement                  would serve to streamline the text of the             Flexibility Act.
                                                  for fulfilling § 1207.2;                                regulatory requirements. Therefore,                   List of Subjects in 12 CFR Part 1207
                                                     • Measurable goals and objectives for                FHFA is proposing to add § 1207.25 to
                                                  achieving the vision and/or mission                     explain that any reference to the                       Disability, Discrimination, Diversity,
                                                  statement; and                                          regulated entities in part 1207 also                  Equal employment opportunity,
                                                     • A requirement that senior                          applies to the Office of Finance, unless              Government contracts, Minority
                                                  management develop and implement                        the Office of Finance is otherwise                    businesses, Office of Finance, Outreach,
                                                  action plans for monitoring and                         specifically addressed or excluded.                   Regulated entities.
                                                  achieving the measurable goals and                                                                            Authority and Issuance
                                                                                                          VIII. Consideration of Differences
                                                  objectives.
                                                                                                          Between the Banks and the Enterprises                   For the reasons stated in the
                                                  Section 1207.23 Annual Reports—                            Section 1313(f) of the Safety and                  preamble, under the authority of 12
                                                  Format and Contents                                     Soundness Act, as amended by section                  U.S.C. 4526, FHFA proposes to amend
                                                     FHFA is proposing to revise                          1201 of HERA, requires the Director,                  part 1207 of title 12 of the Code of
                                                  § 1207.23(b)(3) and (b)(7) to substitute                when promulgating regulations relating                Federal Regulations as follows:
                                                  the word ‘‘applicants’’ as defined in                   to the Banks, to consider the differences
                                                  § 1207.1 for the words ‘‘individuals                    between the Banks and the Enterprises                 PART 1207—MINORITY AND WOMEN
                                                  applying’’ to clarify the scope of                      with respect to the Banks’ cooperative                INCLUSION
                                                  information the regulated entities are                  ownership structure; mission of
                                                  required to report to FHFA.                             providing liquidity to members;                       ■ 1. The authority citation for part 1207
                                                     Proposed § 1207.23(b)(9) through                     affordable housing and community                      continues to read as follows:
                                                  (b)(23) revises and/or supplements the                  development mission; capital structure;
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                                                                                                                                                                  Authority: 12 U.S.C. 4520 and 4526; 12
                                                  minimum requirements for the annual                     and joint and several liability. The                  U.S.C. 1833e; E.O. 11478.
                                                  report submitted by each regulated                      Director may also consider any other
                                                  entity. Proposed § 1207.23(b)(9) would                  differences that are deemed appropriate.              § 1207.1   [Amended]
                                                  require them to report on the diversity                 In preparing this proposed rule, the                  ■  2. Amend § 1207.1 by:
                                                  of their supervisors and managers as                    Director has considered the differences               ■  a. Adding a definition for ‘‘Applicant’’
                                                  well as provide a description of the                    between the Banks and the Enterprises                 in alphabetical order;
                                                  strategies and activities it implemented                as they relate to the above factors and               ■ b. Removing the definition of
                                                  to promote diverse individuals to                       has determined that the proposed rule                 ‘‘Director’’;


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                                                  74736                 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules

                                                  ■  c. Revising the definition of                           Diversity and inclusion strategic                  proactive pursuit of a higher job ranking
                                                  ‘‘Disabled-owned business’’;                            planning is the process of analyzing the              or a reward for good performance. A
                                                  ■ d. Adding definitions for ‘‘Diversity                 business and activities of a regulated                promotion is typically associated with
                                                  and inclusion strategic planning’’ and                  entity to develop strategies for                      an increase in an employee’s pay due to
                                                  ‘‘Diversity spend with non-diverse-                     promoting diversity and ensuring the                  additional or enhanced job
                                                  owned businesses’’ in alphabetical                      inclusion of minorities, women, and                   responsibilities.
                                                  order;                                                  individuals with disabilities in all                  *      *    *     *     *
                                                  ■ e. Removing the definition of                         activities and at every level of the                     Subcontractor (tier 2) means a
                                                  ‘‘FHFA’’;                                               organization, including management,                   supplier that enters into a contract with
                                                  ■ f. Revising the definition of                         employment, and contracting. A                        a prime contractor (tier 1) of a regulated
                                                  ‘‘Minority-owned business’’;                            diversity and inclusion strategic plan
                                                  ■ g. Adding a definition for ‘‘Minority-
                                                                                                                                                                entity to provide goods and/or services
                                                                                                          serves as the primary means to                        to that prime contractor (tier 1) for the
                                                  serving financial institution’’ in                      communicate the board of director’s
                                                  alphabetical order;                                                                                           benefit of the regulated entity.
                                                                                                          long-term diversity and inclusion vision                 Women-owned business means a
                                                  ■ h. Removing the definition of ‘‘Office
                                                                                                          for the organization, to establish                    business and includes, but is not limited
                                                  of Finance’’;
                                                  ■ i. Adding a definition for ‘‘Prime
                                                                                                          measurable goals and objectives for                   to, financial institutions, mortgage
                                                  contractor (tier 1)’’ and ‘‘Promotion’’ in              achieving the vision, and to ensure                   banking firms, investment banking
                                                  alphabetical order;                                     accountability for achieving the goals                firms, investment consultants or
                                                  ■ j. Removing the definition of                         and objectives.                                       advisors, financial services entities,
                                                  ‘‘Regulated entity’’;                                      Diversity spend with non-diverse-                  asset management entities,
                                                  ■ k. Adding a definition for                            owned businesses means the dollar                     underwriters, accountants, brokers,
                                                  ‘‘Subcontractor (tier 2)’’ in alphabetical              amount(s) paid by a regulated entity to               broker-dealers and providers of legal
                                                  order; and                                              a prime contractor that is not a                      services—
                                                  ■ l. Revising the definition of ‘‘Women-                minority-, women-, or disabled-owned                     (1) More than fifty percent (50%) of
                                                  owned business’’.                                       business for professional services (i.e.,             the ownership or control of which is
                                                     The revisions and additions read as                  the amount paid for work performed, as                held, directly or indirectly, by one or
                                                  follows:                                                may be adjusted, in connection with                   more women; and
                                                                                                          providing legal, accounting, or other                    (2) More than fifty percent (50%) of
                                                  § 1207.1   Definitions.                                 professional or consulting services)                  the net profit or loss of which accrues
                                                  *     *     *     *     *                               provided by or allocated to a partner,                to one or more women.
                                                    Applicant means an individual who                     member or other equity owner who is a
                                                  submits an expression of interest in                    minority, woman, or an individual with                § 1207.2   [Amended]
                                                  employment in conjunction with all of                   a disability.                                         ■ 3. Amend § 1207.2 by:
                                                  the following:                                                                                                ■ a. Removing from paragraphs (a) and
                                                    (1) The regulated entity acted to fill a              *      *    *     *     *
                                                                                                             Minority-owned business means a                    (b) the phrase ‘‘and the Office of
                                                  particular position;                                                                                          Finance’’;
                                                    (2) The individual followed the                       business, and includes, but is not
                                                                                                          limited to, financial institutions,                   ■ b. Adding in paragraph (b) a comma
                                                  regulated entity’s standard process for                                                                       immediately following the phrase ‘‘to
                                                  submitting an application;                              mortgage banking firms, investment
                                                                                                          banking firms, investment consultants                 the maximum extent possible’’; and
                                                    (3) The individual’s expression of                                                                          ■ c. Revising paragraph (c).
                                                  interest indicates that the individual                  or advisors, financial services entities,
                                                                                                          asset management entities,                              The revision reads as follows:
                                                  possesses the basic qualifications for the
                                                  position; and                                           underwriters, accountants, brokers,                   § 1207.2   Policy, purpose, and scope.
                                                    (4) The individual has not removed                    broker-dealers and providers of legal
                                                                                                                                                                *     *     *     *    *
                                                  him or herself from consideration or                    services—                                               (c) Scope. This part applies to each
                                                  otherwise indicated that he or she is no                   (1) More than fifty percent (50%) of               regulated entity’s development,
                                                  longer interested in the position.                      the ownership or control of which is                  implementation, and adherence to
                                                  *     *     *     *     *                               held, directly or indirectly, by one or               diversity, inclusion, and non-
                                                    Disabled-owned business means a                       more minority individuals; and                        discrimination policies, practices, and
                                                  business, and includes, but is not                         (2) More than fifty percent (50%) of               principles, including opportunities to
                                                  limited to, financial institutions,                     the net profit or loss of which accrues               award contracts for goods and/or
                                                  mortgage banking firms, investment                      to one or more minority individuals.                  services.
                                                  banking firms, investment consultants                      Minority-serving financial institution
                                                  or advisors, financial services entities,               means a financial institution that serves             § 1207.3   [Amended]
                                                  asset management entities,                              minority populations primarily,                       ■ 4. Amend § 1207.3 by:
                                                  underwriters, accountants, brokers,                     including depository and nondepository                ■ a. In paragraph (a), removing the
                                                  brokers-dealers, and providers of legal                 institutions where fifty-one percent                  phrase ‘‘or the Office of Finance’’; and
                                                  services—                                               (51%) or more of the stock is owned by                ■ b. Revising paragraph (b) and adding
                                                    (1) Qualified as a Service-Disabled                   one or more minority individuals or                   paragraphs (c) and (d) to read as follows:
                                                  Veteran-Owned Small Business Concern                    where a majority of the members of the
                                                  as defined in 13 CFR 125.8 through                      board of directors are minority.                      § 1207.3   Limitations.
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                                                  125.13; or                                                 Prime contractor (tier 1) means a                  *     *    *     *    *
                                                    (2) More than fifty percent (50%) of                  supplier that enters into a contract with               (b) The contract clause required by
                                                  the ownership or control of which is                    a regulated entity to provide goods and/              § 1207.21(b)(6) and the itemized data
                                                  held, directly or indirectly by one or                  or services directly to that regulated                reporting on numbers of contracts and
                                                  more persons with a disability; and                     entity.                                               amounts involved required under
                                                    (3) More than fifty percent (50%) of                     Promotion means the advancement of                 §§ 1207.22 and 1207.23(b)(13) through
                                                  the net profit or loss of which accrues                 an employee within a regulated entity                 (22) apply only to contracts for services
                                                  to one or more persons with a disability.               and may be the result of an employee’s                in any amount and to contracts for


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                                                                        Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules                                         74737

                                                  goods that equal or exceed $25,000 in                   ■ a. Revising the section heading;                    incorporate into its existing strategic
                                                  annual value, whether in a single                       ■ b. Removing the phrases ‘‘and the                   plan a diversity and inclusion plan that
                                                  contract, multiple contracts, a series of               Office of Finance’’, ‘‘and Office of                  proactively focuses on promoting the
                                                  contracts or renewals of contracts, with                Finance’’, ‘‘or the Office of Finance’’               advancement of diversity and inclusion.
                                                  a single vendor.                                        and ‘‘and the Office of Finance’s’’                   The stand-alone diversity and inclusion
                                                     (c) Within ninety (90) days after the                wherever they appear;                                 strategic plan and the incorporated
                                                  effective date of this regulation each                  ■ c. Revising the first sentence of                   diversity and inclusion plan are
                                                  regulated entity shall submit to FHFA a                 paragraph (a);                                        hereinafter referred to as the diversity
                                                  list of the types of contracts it considers             ■ d. Revising the last sentence of                    and inclusion strategic plan;
                                                  exempt under § 1207.3(b) and any                        paragraph (b) introductory text;
                                                                                                          ■ e. Revising paragraph (b)(2);
                                                                                                                                                                *       *    *     *     *
                                                  thresholds, exceptions, and limitations                                                                          (9) Identify the types of contracts the
                                                                                                          ■ f. Redesignating paragraphs (b)(6)
                                                  the regulated entity establishes for the                                                                      regulated entity considers exempt under
                                                  implementation of § 1207.21(c)(2). The                  through (9) as paragraphs (b)(8) through
                                                                                                          (11), respectively;                                   § 1207.3(b) and any thresholds,
                                                  submission shall address the criteria                                                                         exceptions, and limitations the
                                                                                                          ■ g. Redesignating paragraphs (b)(3)
                                                  identified in § 1207.21(b)(9).                                                                                regulated entity establishes for the
                                                     (d) Each regulated entity shall notify               through (5) as paragraphs (b)(4) through
                                                                                                          (6), respectively;                                    implementation of § 1207.21(c)(2). The
                                                  FHFA within thirty (30) days after any                                                                        policies and procedures must describe
                                                                                                          ■ h. Adding new paragraphs (b)(3) and
                                                  change in the types of contracts it                                                                           the following:
                                                                                                          (7);
                                                  considers exempt under § 1207.3(b) or                   ■ i. Revising newly redesignated                         (i) The rationale and need for the
                                                  any change in the thresholds,                           paragraphs (b)(4), (5), (9), and (10); and            thresholds, exceptions, or limitations;
                                                  exceptions, and limitations the                         ■ j. Adding paragraphs (d) and (e).                      (ii) The criteria used to implement the
                                                  regulated entity establishes for the                      The revisions and additions read as                 thresholds, exceptions, or limitations;
                                                  implementation of § 1207.21(c)(2).                      follows:                                              and
                                                                                                                                                                   (iii) Any negative or adverse impact
                                                  Subpart C—[Amended]                                     § 1207.21 Promoting diversity and
                                                                                                                                                                the implementation of the thresholds,
                                                                                                          ensuring inclusion in all business and
                                                  ■ 5. Amend the heading of subpart C by                  activities.                                           exceptions, or limitations would likely
                                                  removing ‘‘and the Office of Finance’’.                                                                       have on contracting opportunities for
                                                                                                            (a) Equal opportunity notice. Each
                                                                                                                                                                minorities, women, and individuals
                                                  § 1207.20   [Amended]                                   regulated entity and the Office of
                                                                                                                                                                with disabilities, and minority-,
                                                  ■ 6. Amend § 1207.20 by:                                Finance shall publish a statement,
                                                                                                          endorsed by its Chief Executive Officer               women-, and disabled-owned
                                                  ■ a. Removing the phrases ‘‘and the                                                                           businesses.
                                                  Office of Finance’’ and ‘‘or the Office of              and approved by its Board of Directors,
                                                                                                          confirming its commitment to the                         (10) Be published and made
                                                  Finance’’ wherever they appear in                                                                             accessible to employees, applicants for
                                                  paragraph (a); and                                      principles of equal opportunity in
                                                                                                          employment and in contracting, at a                   employment, contractors, potential
                                                  ■ b. Revising paragraphs (b) and (c) to                                                                       contractors, and members of the public
                                                  read as follows:                                        minimum regardless of race, color,
                                                                                                          religion, sex, national origin, disability            through print, electronic, or alternative
                                                  § 1207.20 Office of Minority and Women                  status, genetic information, age, sexual              media formats, as necessary, and
                                                  Inclusion.                                              orientation, gender identity, or status as            through the regulated entity’s Web site;
                                                  *      *     *     *     *                              a parent. * * *                                       and
                                                    (b) Adequate resources. The board of                    (b) * * * The policies and procedures               *       *    *     *     *
                                                  directors of each regulated entity will                 of each regulated entity, at a minimum,                  (d) Diversity and inclusion strategic
                                                  ensure that the Office of Minority and                  shall:                                                planning. No later than 45 days after the
                                                  Women Inclusion, or office designated                   *      *    *      *    *                             commencement of each calendar year,
                                                  to lead the regulated entity in                           (2) Describe its practices and                      the board of directors of each regulated
                                                  performing the responsibilities of this                 principles for prohibiting                            entity shall adopt strategies for
                                                  part, is provided relevant resources,                   discrimination in employment and                      promoting diversity and inclusion of
                                                  including, but not limited to, human,                   contracting;                                          minorities, women, and individuals
                                                  technological, and financial resources                    (3) Give consideration to minority-,                with disabilities, and minority-,
                                                  sufficient to fulfill the requirements of               women-, and disabled-owned                            women-, and disabled-owned
                                                  this part. The regulated entity will also               businesses when reviewing and                         businesses for at least the succeeding
                                                  ensure that any officer(s) designated to                evaluating contract proposals as                      three years (i.e., a diversity and
                                                  direct and oversee its diversity and                    required under § 1207.2(c);                           inclusion strategic plan). The board of
                                                  inclusion programs has the necessary                      (4) Attempt to resolve complaints of                directors of each regulated entity shall
                                                  knowledge, skills, competencies, and                    discrimination in employment and in                   review and annually affirm that the
                                                  abilities to effectively implement the                  contracting. Publication will include at              diversity and inclusion strategic plan
                                                  minimum standards and requirements                      a minimum making the procedure                        remains applicable and appropriate
                                                  found in this part.                                     conspicuously accessible to employees                 during the two-year period that follows
                                                    (c) Responsibilities. Each Office of                  and applicants through print, electronic,             the adoption of the plan.
                                                  Minority and Women Inclusion, or the                    or alternative media formats, as                         (e) Contents of the diversity and
                                                  office designated to perform the                        necessary, and through the regulated                  inclusion strategic plan. The diversity
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                                                  responsibilities of this part, is                       entity’s Web site;                                    and inclusion strategic plan shall
                                                  responsible for leading the regulated                     (5) Accept, review, and grant or deny               include the following:
                                                  entity’s board-approved strategies, for                 requests for reasonable accommodations                   (1) A vision and/or mission statement
                                                  fulfilling the requirements of this part,               of disabilities from employees or                     that address the importance of
                                                  12 U.S.C. 1833e(b) and 4520, and such                   applicants for employment;                            promoting diversity and ensuring the
                                                  standards and requirements as the                       *      *    *      *    *                             inclusion of minorities, women, and
                                                  Director may issue hereunder.                             (7) Develop a stand-alone diversity                 individuals with disabilities in order to
                                                  ■ 6. Amend § 1207.21 by:                                and inclusion strategic plan or                       fulfill § 1207.2;


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                                                  74738                 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Proposed Rules

                                                     (2) Measurable strategic goals and                      (i) The number of individuals                      into with minorities or minority-owned
                                                  objectives for accomplishing the agreed-                responsible for supervising employees                 businesses, women or women-owned
                                                  upon priorities and intended outcomes                   and/or managing the functions or                      businesses, and individuals with
                                                  developed to advance diversity and                      departments of the regulated entity; and              disabilities or disabled-owned
                                                  ensure the inclusion of minorities,                        (ii) A description of the strategies,              businesses;
                                                  women, and individuals with                             initiatives, and activities executed                    (17) Cumulative data separately
                                                  disabilities at the regulated entity in                 during the preceding year to promote                  showing the total amount paid for
                                                  accordance with § 1207.2; and                           diverse individuals to supervisory and                contracts entered into during the
                                                     (3) A requirement to create and                      management roles;                                     reporting year that were—
                                                  implement action plans to achieve the                   *       *    *     *    *                               (i) Considered exempt under
                                                  strategic goals and objectives and                         (12) A description of strategies,                  § 1207.3(b);
                                                  management reporting requirements for                   initiatives, and activities the regulated
                                                  monitoring the implementation of those                  entity implemented to advance diversity                 (ii) To prime contractors (tier 1) that
                                                  goals and objectives.                                   and inclusion in conjunction with its                 are minorities or minority-owned
                                                                                                          efforts to—                                           businesses, women or women-owned
                                                  § 1207.22   [Amended]                                                                                         businesses, and individuals with
                                                                                                             (i) Promote access to single- and
                                                  ■ 7. Amend § 1207.22 by removing the                    multi-family mortgage credit by—                      disabilities or disabled-owned
                                                  phrases ‘‘and Office of Finance’’, ‘‘and                   (A) Assessing challenges and                       businesses in place at the beginning of
                                                  the Office of Finance’’, ‘‘or the Office of             impediments minority-serving financial                the reporting year as well as those
                                                  Finance’’, and ‘‘the Office of Finance’s’’              institutions face in accessing the                    entered into during the reporting year;
                                                  from the section heading and from                       secondary mortgage market and/or                        (iii) To subcontractors (tier 2) that are
                                                  wherever else they appear.                              providing access to single- and multi-                minorities or minority-owned
                                                  § 1207.23   [Amended]                                   family mortgage credit for creditworthy               businesses, women or women-owned
                                                                                                          borrowers; and                                        businesses, and individuals with
                                                  ■  8. Amend § 1207.23 by:
                                                                                                             (B) Supporting lenders who serve                   disabilities or disabled-owned
                                                  ■  a. Removing the phrases ‘‘and the
                                                                                                          minority communities;                                 businesses in place at the beginning of
                                                  Office of Finance’’, ‘‘or the Office of
                                                                                                             (ii) Promote diversity in capital                  the reporting year;
                                                  Finance’’, and ‘‘or the Office of
                                                                                                          market transactions by—                                 (18) Cumulative data separately
                                                  Finance’s’’ from all paragraphs;
                                                                                                             (A) Assessing challenges and                       showing the total diversity spend with
                                                  ■ b. In paragraphs (b)(3) and (7),
                                                                                                          impediments minority-, women-, and                    non-diverse-owned businesses during
                                                  removing the phrase ‘‘individuals
                                                                                                          disabled-owned businesses face                        the reporting year;
                                                  applying’’ and adding in its place
                                                                                                          providing capital market or financial
                                                  ‘‘applicants’’;                                                                                                 (19) The annual total of amounts paid
                                                                                                          transaction services including, but not
                                                  ■ c. Adding ‘‘and the Office of Finance’’                                                                     to prime contractors (tier 1) and
                                                                                                          limited to, those identified in § 1201.1;
                                                  after ‘‘each Bank’’ in paragraph (b)(9)(i);                                                                   subcontractors (tier 2) and the
                                                                                                          and
                                                  adding ‘‘and the Office of Finance’’ after                                                                    percentage of which was paid separately
                                                                                                             (B) Identifying, considering, and
                                                  ‘‘each Bank’’ in paragraph (b)(9)(i)(A);                                                                      through prime contracts and
                                                                                                          selecting minority-, women-, and
                                                  adding ‘‘and the Office of Finance’’ to                                                                       subcontracts to minorities or minority-
                                                                                                          disabled-owned businesses to
                                                  the end of the sentence in paragraph                                                                          owned businesses, women or women-
                                                                                                          participate in capital market or financial
                                                  (b)(9)(B)(ii); adding ‘‘and the Office of                                                                     owned businesses, and individuals with
                                                                                                          transactions;
                                                  Finance’’ after ‘‘by the Banks’’ in                                                                           disabilities or disabled-owned
                                                                                                             (iii) Promote diversity and inclusion
                                                  paragraph (b)(10);                                                                                            businesses during the reporting year;
                                                                                                          in affordable housing and community
                                                  ■ d. Redesignating paragraphs (b)(14)                                                                         *      *    *     *     *
                                                                                                          investment programs;
                                                  through (20) as paragraphs (b)(19)
                                                                                                          *       *    *     *    *                               (23) A comparison of the data
                                                  through (25), respectively;
                                                  ■ e. Redesignating paragraphs (b)(11)                      (14) Cumulative data separately                    reported under paragraphs (b)(13)
                                                  through (13) as paragraphs (b)(13)                      showing the total number of contracts in              through (19) of this section with the
                                                  through (15), respectively;                             place at the beginning of the reporting               same information reported for the
                                                  ■ f. Redesignating paragraphs (b)(9) and                year as well as those entered into during             previous year;
                                                  (10) as paragraphs (b)(10) and (11),                    the reporting year;                                   § 1207.24   [Amended]
                                                  respectively;                                              (15) Cumulative data separately
                                                  ■ g. Adding new paragraphs (b)(9) and                   showing the total amount paid for                     ■ 9. Amend § 1207.24 by removing the
                                                  (12);                                                   contracts in place at the beginning of the            phrase ‘‘or the Office of Finance’s’’.
                                                  ■ h. Revising newly redesignated                        reporting year as well as those entered               ■ 10. Add § 1207.25 to read as follows:
                                                  paragraphs (b)(14) and (15);                            into during the reporting year;
                                                                                                             (16) Cumulative data separately                    § 1207.25   Office of Finance.
                                                  ■ i. Adding new paragraphs (b)(16),
                                                  (17), and (18); and                                     showing the total number of contracts                    All parts of this regulation and the
                                                  ■ j. Revising newly redesignated                        entered into during the reporting year                standards issued under it shall apply to
                                                  paragraphs (b)(19) and (23).                            that were—                                            the Office of Finance, as defined in
                                                     The revisions and additions read as                     (i) Considered exempt under                        § 1201.1, in the same manner in which
                                                                                                          § 1207.3(b);
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                                                  follows:                                                                                                      it applies to the regulated entities,
                                                                                                             (ii) Prime contracts (tier 1) entered              unless the Office of Finance is otherwise
                                                  § 1207.23   Annual reports—format and                   into with minorities or minority-owned                specifically addressed or excluded.
                                                  content.                                                businesses, women or women-owned
                                                  *     *     *   *     *                                                                                         Dated: October 18, 2016.
                                                                                                          businesses, and individuals with
                                                    (b) * * *                                             disabilities or disabled-owned                        Melvin L. Watt,
                                                    (9) Data showing for the reporting                    businesses;                                           Director, Federal Housing Finance Agency.
                                                  year by minority, gender, and disability                   (iii) Subcontractor (tier 2) contracts             [FR Doc. 2016–25726 Filed 10–26–16; 8:45 am]
                                                  classification—                                         that prime contractors (tier 1) entered               BILLING CODE 8070–01–P




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Document Created: 2016-10-27 01:52:42
Document Modified: 2016-10-27 01:52:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesWritten comments must be received on or before December 27, 2016.
ContactSharron P. A. Levine, Director, Office of Minority and Women Inclusion, [email protected], (202) 649- 3496; Eric Howard, Deputy Director, Office of Minority and Women Inclusion, [email protected], (202) 649-3009; or James Jordan, Assistant General Counsel, [email protected], (202) 649-3075 (not toll-free numbers), Federal Housing Finance Agency, 400 Seventh Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339.
FR Citation81 FR 74730 
RIN Number2590-AA78
CFR AssociatedDisability; Discrimination; Diversity; Equal Employment Opportunity; Government Contracts; Minority Businesses; Office of Finance; Outreach and Regulated Entities

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