81 FR 93580 - Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold

BUREAU OF CONSUMER FINANCIAL PROTECTION

Federal Register Volume 81, Issue 245 (December 21, 2016)

Page Range		93580-93581
FR Document		2016-30731

The Bureau of Consumer Financial Protection (Bureau) is issuing a final rule amending the official commentary that interprets the requirements of the Bureau's Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 0.8 percent increase in the average of the CPI-W for the 12-month period ending in November 2016, the exemption threshold will remain at $44 million. Therefore, banks, savings associations, and credit unions with assets of $44 million or less as of December 31, 2016, are exempt from collecting data in 2017.

Federal Register, Volume 81 Issue 245 (Wednesday, December 21, 2016)

[Federal Register Volume 81, Number 245 (Wednesday, December 21, 2016)]
[Rules and Regulations]
[Pages 93580-93581]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30731]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1003


Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size 
Exemption Threshold

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official commentary.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
issuing a final rule amending the official commentary that interprets 
the requirements of the Bureau's Regulation C (Home Mortgage 
Disclosure) to reflect the asset-size exemption threshold for banks, 
savings associations, and credit unions based on the annual percentage 
change in the average of the Consumer Price Index for Urban Wage 
Earners and Clerical Workers (CPI-W). Based on the 0.8 percent increase 
in the average of the CPI-W for the 12-month period ending in November 
2016, the exemption threshold will remain at $44 million. Therefore, 
banks, savings associations, and credit unions with assets of $44 
million or less as of December 31, 2016, are exempt from collecting 
data in 2017.

DATES: This final rule is effective January 1, 2017.

FOR FURTHER INFORMATION CONTACT: Jaclyn Maier, Counsel, Office of 
Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., 
Washington, DC 20552, at (202) 435-7700.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Home Mortgage Disclosure Act of 1975 (HMDA) (12 U.S.C. 2801-
2810) requires most mortgage lenders located in metropolitan areas to 
collect data about their housing related lending activity. Annually, 
lenders must report their data to the appropriate Federal agencies and 
make the data available to

[[Page 93581]]

the public. The Bureau's Regulation C (12 CFR part 1003) implements 
HMDA.
    Prior to 1997, HMDA exempted certain depository institutions as 
defined in HMDA (i.e., banks, savings associations, and credit unions) 
with assets totaling $10 million or less as of the preceding year-end. 
In 1996, HMDA was amended to expand the asset-size exemption for these 
depository institutions. 12 U.S.C. 2808(b). The amendment increased the 
dollar amount of the asset-size exemption threshold by requiring a one-
time adjustment of the $10 million figure based on the percentage by 
which the CPI-W for 1996 exceeded the CPI-W for 1975, and it provided 
for annual adjustments thereafter based on the annual percentage 
increase in the CPI-W, rounded to the nearest multiple of $1 million.
    The definition of ``financial institution'' in Sec.  1003.2 
provides that the Bureau will adjust the asset threshold based on the 
year-to-year change in the average of the CPI-W, not seasonally 
adjusted, for each 12-month period ending in November, rounded to the 
nearest $1 million. For 2016, the threshold was $44 million. During the 
12-month period ending in November 2016, the average of the CPI-W 
increased by 0.8 percent. This increase results in no change to the 
asset-size threshold when rounded to the nearest $1 million. Thus, the 
exemption threshold will remain at $44 million. Therefore, banks, 
savings associations, and credit unions with assets of $44 million or 
less as of December 31, 2016, are exempt from collecting data in 2017. 
An institution's exemption from collecting data in 2017 does not affect 
its responsibility to report data it was required to collect in 2016.

II. Procedural Requirements

A. Administrative Procedure Act

    Under the Administrative Procedure Act (APA), notice and 
opportunity for public comment are not required if the Bureau finds 
that notice and public comment are impracticable, unnecessary, or 
contrary to the public interest. 5 U.S.C. 553(b)(B). Pursuant to this 
final rule, comment 2(Financial institution)-2 in Regulation C, 
supplement I, is amended to update the exemption threshold. The 
amendment in this final rule is technical and non-discretionary, and it 
merely applies the formula established by Regulation C for determining 
any adjustments to the exemption threshold. For these reasons, the 
Bureau has determined that publishing a notice of proposed rulemaking 
and providing opportunity for public comment are unnecessary. 
Therefore, the amendment is adopted in final form.
    Section 553(d) of the APA generally requires publication of a final 
rule not less than 30 days before its effective date, except (1) a 
substantive rule which grants or recognizes an exemption or relieves a 
restriction; (2) interpretive rules and statements of policy; or (3) as 
otherwise provided by the agency for good cause found and published 
with the rule. 5 U.S.C. 553(d). At a minimum, the Bureau believes the 
amendments fall under the third exception to section 553(d). The Bureau 
finds that there is good cause to make the amendments effective on 
January 1, 2017. The amendment in this final rule is technical and non-
discretionary, and it applies the method previously established in the 
agency's regulations for determining adjustments to the threshold.

B. Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a).

C. Paperwork Reduction Act

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

List of Subjects in 12 CFR Part 1003

    Banking, Banks, Credit unions, Mortgages, National banks, Reporting 
and recordkeeping requirements, Savings associations.

Authority and Issuance

    For the reasons set forth above, the Bureau amends Regulation C, 12 
CFR part 1003, as set forth below:

PART 1003--HOME MORTGAGE DISCLOSURE (REGULATION C)

0
1. The authority citation for part 1003 continues to read as follows:

    Authority:  12 U.S.C. 2803, 2804, 2805, 5512, 5581.

0
2. In Supplement I to Part 1003, under Section 1003.2--Definitions, 
under the definition ``Financial institution'', paragraph 2 is revised 
to read as follows:

Supplement I to Part 1003--Staff Commentary

* * * * *

Section 1003.2--Definitions

* * * * *
    Financial institution.
* * * * *
    2. Adjustment of exemption threshold for banks, savings 
associations, and credit unions. For data collection in 2017, the 
asset-size exemption threshold is $44 million. Banks, savings 
associations, and credit unions with assets at or below $44 million 
as of December 31, 2016, are exempt from collecting data for 2017.
* * * * *

    Dated: December 15, 2016.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2016-30731 Filed 12-19-16; 4:15 pm]
 BILLING CODE 4810-AM-P

93650 Federal Register / Vol. 81, No. 245 / Wednesday, December 21, 2016 / Rules and Regulations

incidental powers regulations apply union to purchase, hold, and dispose of your members or supporting your
only to FCUs, the final rule does not property necessary or incidental to its business operations. You may sell or
have a substantial direct effect on the operations. This section interprets and lease the excess capacity in facilities,
states, on the relationship between the implements that provision by such as office space and other premises.
national government and the states, or establishing occupancy and disposal You may sell or lease the excess
on the distribution of power and requirements for acquired and capacity in equipment or services, such
responsibilities among the various abandoned premises, and by prohibiting as employees and data processing, if
levels of government. As such, NCUA certain transactions. This section you reasonably anticipate that the
has determined that this rule does not applies only to federal credit unions. excess capacity will be taken up by the
constitute a policy that has federalism (b) * * * future expansion of services to your
implications for purposes of the Abandoned premises means premises members.
executive order. previously used to transact credit union * * * * *
business but no longer used for that [FR Doc. 2016–30657 Filed 12–20–16; 8:45 am]
D. Assessment of Federal Regulations
purpose. It also means premises BILLING CODE 7535–01–P
and Policies on Families
originally acquired to transact future
NCUA has determined that this rule credit union business but no longer
will not affect family well-being within intended for that purpose. BUREAU OF CONSUMER FINANCIAL
the meaning of Section 654 of the * * * * * PROTECTION
Treasury and General Government Partially occupy means occupation
Appropriations Act of 1999.8 and use, on a full-time basis, of at least 12 CFR Part 1003
List of Subjects fifty percent of each of the premises by
Home Mortgage Disclosure
the federal credit union, or the federal
12 CFR Part 701 (Regulation C) Adjustment to Asset-
credit union and a credit union service
Size Exemption Threshold
Credit unions, Reporting and organization in which the federal credit
recordkeeping requirements. union has a controlling interest in AGENCY: Bureau of Consumer Financial
accordance with Generally Accepted Protection.
12 CFR Part 721 Accounting Principles (GAAP). ACTION: Final rule; official commentary.
Credit unions, Functions, Implied * * * * *
powers. (c) Premises not currently used to SUMMARY: The Bureau of Consumer
transact credit union business. (1) If a Financial Protection (Bureau) is issuing
By the National Credit Union
Administration Board, on December 15, federal credit union acquires premises, a final rule amending the official
2016. including unimproved land or commentary that interprets the
Gerard Poliquin, unimproved real property, it must requirements of the Bureau’s Regulation
C (Home Mortgage Disclosure) to reflect
Secretary of the Board. partially occupy each of them within a
the asset-size exemption threshold for
reasonable period, but no later than six
For the reasons stated above, NCUA banks, savings associations, and credit
years after the date of acquisition.
amends 12 CFR parts 701 and 721 as unions based on the annual percentage
NCUA may waive the partial occupation
follows: change in the average of the Consumer
requirements. To seek a waiver, a
Price Index for Urban Wage Earners and
PART 701—ORGANIZATION AND federal credit union must submit a
Clerical Workers (CPI–W). Based on the
OPERATION OF FEDERAL CREDIT written request to its Regional Office
0.8 percent increase in the average of
UNIONS and fully explain why it needs the
the CPI–W for the 12-month period
waiver. The Regional Director will
ending in November 2016, the
■ 1. The authority citation for part 701 provide the federal credit union a
exemption threshold will remain at $44
is revised to read as follows: written response, either approving or
million. Therefore, banks, savings
Authority: 12 U.S.C. 1752(5), 1757, 1765, disapproving the request. The Regional
associations, and credit unions with
1766, 1781, 1782, 1787, 1789; Title V, Pub. Director’s decision will be based on
assets of $44 million or less as of
L. 109–351, 120 Stat. 1966. safety and soundness considerations.
December 31, 2016, are exempt from
■ 2. Amend § 701.36 as follows: * * * * * collecting data in 2017.
■ a. Revise the section heading. DATES: This final rule is effective
■ b. Revise paragraph (a). PART 721—INCIDENTAL POWERS
January 1, 2017.
■ c. Amend paragraph (b) by revising ■ 3. The authority citation for part 721 FOR FURTHER INFORMATION CONTACT:
the definitions of Abandoned premises continues to read as follows: Jaclyn Maier, Counsel, Office of
and Partially occupy. Regulations, Consumer Financial
■ d. Remove paragraph (c)(1). Authority: 12 U.S.C. 1757(17), 1766 and
1789. Protection Bureau, 1700 G Street NW.,
■ e. Redesignate paragraphs (c)(2) and
Washington, DC 20552, at (202) 435–
(3) as (c)(1) and (2), respectively. ■ 4. Amend § 721.3 by revising 7700.
■ f. Revise newly redesignated paragraph (e) to read as follows:
paragraph (c)(1). SUPPLEMENTARY INFORMATION:
The revisions read as follows: § 721.3 What categories of activities are
preapproved as incidental powers I. Background
asabaliauskas on DSK3SPTVN1PROD with RULES

§ 701.36 Federal credit union occupancy necessary or requisite to carry on a credit The Home Mortgage Disclosure Act of
and disposal of acquired and abandoned union’s business? 1975 (HMDA) (12 U.S.C. 2801–2810)
premises. * * * * * requires most mortgage lenders located
(a) Scope. Section 107(4) of the (e) Excess capacity. Excess capacity is in metropolitan areas to collect data
Federal Credit Union Act (12 U.S.C. the excess use or capacity remaining in about their housing related lending
1757(4)) authorizes a federal credit facilities, equipment, or services that activity. Annually, lenders must report
you properly invested in or established, their data to the appropriate Federal
8 Public Law 105–277, 112 Stat. 2681 (1998). in good faith, with the intent of serving agencies and make the data available to

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Document Created: 2018-02-14 09:12:00
Document Modified: 2018-02-14 09:12:00

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule; official commentary.
Dates		This final rule is effective January 1, 2017.
Contact		Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552, at (202) 435-7700.
FR Citation		81 FR 93580
CFR Associated		Banking; Banks; Credit Unions; Mortgages; National Banks; Reporting and Recordkeeping Requirements and Savings Associations