83 FR 14781 - Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance
FEDERAL HOUSING FINANCE AGENCY Federal Register Volume 83, Issue 67 (April 6, 2018)
Federal Register Volume 83, Issue 67 (April 6, 2018)
| Page Range | 14781-14785 | |
| FR Document | 2018-07044 |
[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)] [Proposed Rules] [Pages 14781-14785] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07044] ======================================================================= ----------------------------------------------------------------------- FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1239 and 1273 RIN 2590-AA90 Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance AGENCY: Federal Housing Finance Agency. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Federal Housing Finance Agency (FHFA) is proposing to amend its regulation on the Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance for its regulated entities. The proposed rule would amend the existing regulation pertaining to Federal Home Loan Bank strategic business plans so that it would apply as well to the Enterprises, and would make a number of adjustments and conforming changes to the existing regulation. As amended, the regulation would require that the board of directors of each regulated entity have in effect at all times a strategic business plan that describes how the regulated entity's business activities will achieve its statutory purposes. The proposed rule would retain the provision that requires each regulated entity's board of directors to review the strategic business plan at least annually, re-adopt it at least once every three years, and establish reporting requirements for and monitor implementation of the strategic business plan. The proposed rule would add a new provision regarding current and emerging business risks, repeal two outdated provisions of the existing regulation, and make a conforming change to the Office of Finance Board of Directors regulation. DATES: Written comments on the proposed rule must be received on or before June 5, 2018. ADDRESSES: You may submit your comments on the proposed rule, identified by regulatory information number (RIN) 2590-AA90, by any of the following methods:Agency Website: 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 FHFA. Please include ``Comments/RIN 2590-AA90'' in the subject line of the submission. Courier/Hand Delivery: The hand delivery address is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA90, 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. and 5 p.m. U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA90, Federal Housing Finance Agency, 400 Seventh Street SW, Eighth Floor, Washington, DC 20219. FOR FURTHER INFORMATION CONTACT: Daniel Callis, Principal Risk Analyst, Office of the Chief Accountant, at [email protected] or (202) 649- 3448, or Ming-Yuen Meyer-Fong, Office of General Counsel, at [email protected] or (202) 649-3078 (these are not toll-free numbers), Federal Housing Finance Agency, Constitution Center, 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. Request for Comments FHFA invites comments on all aspects of this proposed rule. After considering all comments, FHFA intends to issue a final rule. FHFA will post on the FHFA website at http://www.fhfa.gov all [[Page 14782]] public comments it receives without change, including any personal information you provide, such as your name, address, email address, and telephone number. In addition, copies of all comments received will be available for examination by the public through the electronic rulemaking docket for this proposed rule also located on the FHFA website. II. Background and Summary FHFA previously consolidated and relocated the regulations of its predecessor agencies, the Federal Housing Finance Board (Finance Board) and the Office of Federal Housing Enterprise Oversight, that pertained to the responsibilities of boards of directors, corporate practices, and corporate governance matters into a new regulation at 12 CFR part 1239. 80 FR 72327 (November 19, 2015). The FHFA regulation is organized such that some parts apply to all of FHFA's regulated entities and other parts, because of differences in their corporate structure or business models, apply only to the Federal Home Loan Banks (Banks), or only to Fannie Mae and Freddie Mac (Enterprises). The current regulation requires each Bank's board of directors to have in effect at all times a strategic business plan that describes how the business activities of the Bank will achieve the mission of the Bank, consistent with the Federal Home Loan Bank Act (Bank Act), 12 U.S.C. 1421 et seq. The current regulation also requires a Bank's board of directors periodically to review and re-adopt the Bank's strategic business plan, establish management reporting requirements, and monitor implementation of the strategic business plan. 12 CFR 1239.31. FHFA proposes to adopt a similar requirement for the Enterprises. Strategic planning is an organization's process of defining its direction and making decisions on allocating its resources to pursue this direction. The result of this process is the organization's strategy--a guiding vision of what the organization intends to accomplish and key initiatives or action plans for achieving the vision. It is necessarily forward-looking, actionable, and measurable, and it should be updated periodically to reflect, among other things, changing risks, business environments, and corporate direction. A strategic plan is adopted by an organization's board of directors and executed by its senior management on behalf of its stakeholders. The proposed rule would replace the existing Bank-only strategic business plan provision currently at 12 CFR 1239.31 with a new provision, to be located at 12 CFR 1239.14. The new provision would adapt the current Bank-only strategic business plan requirements to cover the Enterprises, and make adjustments and conforming changes as needed to reflect the requirements of the Banks and the Enterprises. The most significant change would be to bring the Enterprises within the scope of the strategic business plan requirement currently required only of the board of directors at each Bank. The proposed rule would also include a new requirement for each regulated entity to identify current and emerging risks in its strategic business plan. Apart from that provision, the proposed rule would not impose any new requirements on the Banks' strategic business plans. The proposed rule would also repeal an existing provision relating to quantitative performance goals for Bank products related to multifamily housing and to community financial institution collateral, and a related existing reporting provision. III. The Proposed Rule A. Analysis of the Proposed Rule The proposed rule would require the board of directors at each regulated entity to adopt and have in effect at all times a strategic business plan for the regulated entity. The regulated entity's strategic business plan adopted by the board of directors must meet certain minimum requirements pertaining to operating goals, credit needs and market opportunities, new activities, supporting analyses, and current and emerging risks. As noted above, all of these requirements, except for the current and emerging risks, already apply to the Banks. The proposed rule would also require the board of directors at each regulated entity to review the regulated entity's strategic business plan at least annually, to re-adopt the strategic business plan for the regulated entity at least every three years, to establish management reporting requirements, and to monitor implementation of the strategic business plan, as set forth in proposed Sec. 1239.14(b). The Enterprises are congressionally chartered entities established to advance certain statutory purposes. These statutory purposes include providing stability in the secondary market for residential mortgages, responding appropriately to the private capital market, providing ongoing assistance (by facilitating liquidity and distribution of investment capital) to the secondary market for residential mortgages (including activities relating to mortgages on housing for low- and moderate-income families), and promoting access to mortgage credit throughout the nation. 12 U.S.C. 1716 et seq. (Fannie Mae); 12 U.S.C. 1451 note (Freddie Mac). Their public purposes also include other, more-specific statutory or regulatory obligations including, for example, an Enterprise's obligations to meet its affordable housing goals, and its duty to serve specified underserved markets. See Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act), 12 U.S.C. 4501 et seq. Similarly, the Banks are entities established under federal law to serve a housing finance and community lending mission. 12 U.S.C. 1430 and 1430b. For example, in addition to advances, Bank core mission activities include debt or equity investments that primarily benefit households having a targeted income level or living in areas targeted for redevelopment, by supporting housing, economic development, community services, permanent jobs, or area revitalization or stabilization. 12 CFR 1265.3(e). Like the Enterprises, the Banks have affordable housing goals, but only to the extent that they purchase mortgages from their members. 12 U.S.C. 1430c. Paragraph 1239.14(a)(1)(i) of the proposed rule would replace the requirement to enumerate operating goals and objectives with a requirement to articulate measurable operating goals and objectives. The change is intended to clarify that goals and objectives are to be described, rather than simply listed, in a manner to allow the board of directors to monitor and hold management accountable for successful execution of the strategic business plan. A regulated entity's board could articulate measurable goals and objectives by specifying quantitative requirements or qualitative requirements. The proposed rule does not prescribe the specific ways in which operating goals and objectives must be articulated, so long as such operating goals and objectives are articulated in a measurable manner necessary to support a regulated entity's board of director's review and monitoring responsibilities under proposed Sec. 1239.14(b), and to allow the board of directors to evaluate and hold management accountable for successful implementation of the strategic business plan. Proposed Sec. 1239.14(a)(1)(i) would require each Bank's strategic business plan to articulate measurable operating goals and objectives for each significant business activity and all authorized new [[Page 14783]] business activities, which must include plans for maximizing activities that further the Bank's housing finance and community lending mission. This provision is much the same as the existing regulation, but includes several proposed changes to coordinate with the Enterprise requirement, including the reference to ``significant business activity,'' a proposed change from the existing reference to ``major business activity.'' The proposed rule would also require a Bank's strategic business plan to articulate measurable operating goals and objectives for all ``authorized new business activities.'' FHFA regulations currently provide for agency review and action on a Bank's ``new business activity'' before a Bank may commence with the new business activity. 12 CFR part 1272. That regulation authorizes a Bank to commence a new business activity absent affirmative approval if FHFA does not take action within the timeframes established under 12 CFR part 1272. The proposed requirement to articulate operating goals and objectives would not apply to new business activities that are denied, are pending FHFA action, or are not yet submitted to FHFA, but only to those new business activities that have been authorized under the new business activities regulation. The proposed rule would retain the existing requirement that a Bank's strategic plan ``include plans for maximizing activities that further the Bank's housing finance and community lending mission, consistent with part 1265 of this chapter.'' Retaining this clause would reiterate the priority the Banks should continue to place on their core mission activities to further their housing finance and community lending mission, consistent with 12 CFR part 1265. For the Enterprises, proposed Sec. 1239.14(a)(1)(ii) would similarly require each Enterprise's strategic business plan to ``articulate measurable operating goals and objectives for each significant existing activity and all authorized new activities.'' The Enterprises do not have a core mission activity regulation comparable to that of the Banks, so, a requirement analogous to that for the Banks described above is not included in the Enterprise provisions. However, proposed Sec. 1239.14(a)(1)(ii) would achieve an outcome for the Enterprises similar to that for the Banks under Sec. 1239.14(a)(1)(i). It does so by generally requiring the strategic business plan to describe ``how the [Enterprise's] business activities . . . will achieve [its] mission and public purposes,'' consistent with its charter act and the Safety and Soundness Act. It also does so by requiring the Enterprise's strategic business plan to articulate ``measurable operating goals and objectives'' in achieving the Enterprise's statutory purposes. Describing how the Enterprise's business activities will achieve its mission and public purposes, and articulating measurable goals and objectives for significant existing activities, would help to enable an Enterprise's board of directors to monitor, review, and hold management accountable for successful execution of the strategic business plan. Proposed Sec. 1239.14(a)(1)(ii) would reference ``authorized new activities'' in its ``measurable operating goals and objectives'' requirement. FHFA regulations currently provide for agency review and action on an Enterprise's ``new activity'' before the Enterprise may commence with the new activity. 12 CFR part 1253. The term ``authorized new activities'' is used because the current regulation for considering new activities authorizes an Enterprise to engage in a new activity absent affirmative approval. This could occur where FHFA does not take action within 15 days from receipt of a complete new activity notice. 12 CFR 1253.3(d). As a result, Sec. 1239.14(a)(1)(ii) requires articulation of measurable operating goals and objectives for all ``authorized new activities,'' which could include both new activities that were affirmatively approved by FHFA and those authorized by passage of time. Proposed Sec. 1239.14(a)(1)(ii) would not require a strategic business plan to articulate measurable goals and objectives for new activities that are denied, pending FHFA action, or not yet submitted to FHFA. Proposed Sec. 1239.14(a)(2) would require each regulated entity's strategic business plan to discuss how the regulated entity will address credit needs and market opportunities identified through ongoing market research and stakeholder consultations. In the case of the Banks, stakeholders would include members, housing associates, and public and private organizations. In the case of the Enterprises, stakeholders would include mortgage market participants and public and private organizations, including those that advocate for access to credit. The purpose of Sec. 1239.14(a)(2) is similar to that currently in effect for the Banks, that is, to require regulated entity board engagement with market research and stakeholder consultations to identify areas of credit needs and market opportunities to further the regulated entity's public purposes. Proposed Sec. 1239.14(a)(3) would require a regulated entity's strategic business plan to describe ``significant activities in which the regulated entity is planning to be engaged,'' including any changes to business strategy or approach that the regulated entity is planning to undertake, and discuss how such activities further the regulated entity's public purposes. FHFA considered whether to retain the existing language in 12 CFR 1239.31(a)(4), which requires a regulated entity's strategic business plan to describe any ``proposed new business activities or enhancements of existing activities.'' However, the language of the existing requirement is unclear as to whether activities in various stages of development are covered. Specifically, the existing regulatory language referring to ``proposed new business activities or enhancements of existing activities'' in Sec. 1239.31(a)(4) may be ambiguous in that it could be interpreted to include those activities that are in the planning or development process within a Bank, but not yet submitted as a new business activity. Alternatively, it could be interpreted to refer to only those new business activities submitted to and pending approval with FHFA. Rather than referring to proposed new business activities and enhancements of existing activities, FHFA proposes to modify the existing language for the Banks and apply the same requirement to the Enterprises. Proposed Sec. 1239.14(a)(3) would eliminate the need, in the context of the strategic business plan requirement, to determine whether an activity is a new business activity in the case of a Bank, or a new activity in the case of an Enterprise, for purposes of the respective regulation, and whether it has been submitted or approved as such. The focus of the requirement would be on significant activities in which the regulated entity is planning to be engaged and how these planned activities would further the regulated entity's public purposes. To the extent the significant activities described would affect the future financial condition or risk profile of the regulated entity, the strategic business plan should address such risks. For the Banks, proposed Sec. 1239.14(a)(3) would clarify the existing regulatory language in 12 CFR 1239.31(a)(4) for each Bank's strategic business plan to describe any ``proposed new business activities or enhancements of existing activities.'' Instead, the proposed change would require the plan to describe any ``significant activities in which the [[Page 14784]] regulated entity is planning to be engaged.'' Proposed Sec. 1239.14(a)(4)(i) would continue to require a Bank strategic business plan to be supported by appropriate and timely research and analysis of relevant market developments and member and housing associate demand for Bank products and services. This is the same as the existing requirement for the Banks. In addition, the existing reference to ``associate'' would be revised to ``housing associate.'' Similarly, Sec. 1239.14(a)(4)(ii) would require an Enterprise's strategic business plan to be supported by appropriate and timely research and analysis of relevant market developments. This Enterprise requirement is consistent with the existing requirement for the Banks, and does not include the Bank-specific reference to member and housing associate demand for Bank products and services. Proposed Sec. 1239.14(a)(5) would require a regulated entity's strategic business plan to identify current and emerging risks, including such current and emerging risks associated with the regulated entity's existing activities or new activities, and discuss how the regulated entity plans to further its public purposes and mission in a safe and sound manner. Emerging risks are risks that are potentially significant but which may not be fully known or understood, and could be associated with new or existing activities. This requirement would be a new requirement for the Banks. Proposed Sec. 1239.14(b) would require each regulated entity's board of directors to review the strategic business plan at least annually, re-adopt the plan at least every three years, and to establish reporting requirements and monitor implementation of the strategic business plan. The substance of this provision is identical to that of the existing Bank strategic business plan provision. B. Provisions to be Repealed The proposed rule would repeal the provision from the existing regulation at 12 CFR 1239.31(a)(3) that requires the Banks to include in their strategic business plans quantitative performance goals for Bank products related to multifamily housing and to community financial institution (CFI) collateral. The Finance Board added this requirement to the strategic business plan regulation shortly after Congress first authorized the Banks to accept CFI collateral. When doing so, the Finance Board explained that it wanted to make clear that providing financing for multifamily lending and for advances secured by the newly authorized CFI collateral is a part of the Banks' mission. In the 17 years that have passed since the Finance Board adopted this requirement, FHFA has monitored the Banks' acceptance of CFI collateral and has determined that this is very much a member-driven practice. There is considerable variation among the Banks as to the extent to which the Banks' members pledge CFI collateral, which FHFA believes is driven by the different types of loans made by the members in different Bank districts. Some Banks have significant numbers of members that make loans for small farm, small agribusiness, small business, or community development purposes, while other Banks have fewer members engaged in making those types of loans. Moreover, CFI collateral is no longer new, and decisions about what type of collateral to pledge are ultimately made by the individual members, based on their particular business needs. FHFA does not require Banks to set quantitative goals for the other types of collateral that members may pledge. In light of all of those factors, FHFA believes that there is no longer any need for the strategic business plans to address these categories of collateral. The proposed rule would repeal this provision, as well as a separate provision at 12 CFR 1239.31(c) that requires the Banks to report annually on their progress towards meeting those goals. The proposed rule would also make a conforming change to a reference contained in Sec. 1273.8(d)(2) relating to the Office of Finance board of directors' duty to approve a strategic business plan, to reference the proposed new provision at Sec. 1239.14. C. Corporate Governance Requirements and Conservatorship As FHFA noted when it most recently adopted its corporate governance regulation, the regulation is not intended to address conservatorship matters. 80 FR at 72328. Instead, the corporate governance regulation is intended to address matters of corporate practice and governance at the regulated entities. FHFA, as conservator, currently possesses ultimate authority over all operations of the Enterprises. Pursuant to its conservatorship authority, FHFA has provided for Enterprise boards to exercise the functions of management oversight that exist under applicable law and regulation, including FHFA's corporate governance regulation, while reserving for itself decision making authority to establish conservatorship direction. Accordingly, under the proposed rule, as part of their corporate governance requirements, the board of directors at each Enterprise would be required to adopt a strategic business plan. Each Enterprise's strategic business plan should describe, at a minimum, how the business activities of the Enterprise will achieve its public purposes as set forth under its respective statutory charter and the Safety and Soundness Act. Although the Enterprises remain in conservatorship, their boards of directors have been operating under FHFA regulations, including the standards set forth in FHFA's corporate governance regulation at 12 CFR part 1239, that govern board members outside of conservatorship, except as modified by the conservator. Such duties include establishing strategic objectives that incorporate the priorities of the conservator while achieving the Enterprise's statutory purposes in a safe and sound manner. D. Consideration of Differences Between the Banks and the Enterprises When promulgating regulations that relate to the Banks, section 1313(f) of the Safety and Soundness Act requires FHFA to consider the differences between the Banks and the Enterprises with respect to the Banks': Cooperative ownership structure; mission of providing liquidity to members; affordable housing and community development mission; capital structure; and joint and several liability. 12 U.S.C. 4513(f). In developing the proposed rule, FHFA has considered these areas of differences between the Banks and the Enterprises, and has determined that the proposed rule is unlikely to adversely affect the Banks in these areas of differences. FHFA is requesting public comment on whether differences related to these factors should result in a revision of the proposed rule as it relates to the Banks. IV. Paperwork Reduction Act The proposed rule does not contain any collections of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). Therefore, FHFA has not submitted any information to the Office of Management and Budget for review. V. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an agency to analyze a regulation's impact on small entities if the regulation is expected to have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). FHFA has considered the impact of this proposed rule and the [[Page 14785]] General Counsel of FHFA certifies that the proposed rule, if adopted as a final rule, is not likely to have a significant economic impact on a substantial number of small entities because it applies only to the regulated entities and the Office of Finance, which are not small entities for purposes of the Regulatory Flexibility Act. Therefore, an initial regulatory flexibility analysis is not required. List of Subjects 12 CFR Part 1239 Administrative practice and procedure, Federal home loan banks, Government-sponsored enterprises, Reporting and recordkeeping requirements. 12 CFR Part 1273 Federal home loan banks, Securities. Accordingly, for reasons stated in the Supplementary Information, FHFA hereby proposes to amend 12 CFR parts 1239 and 1273 as follows: Subchapter B--Regulated Entities PART 1239--[AMENDED] 0 1. The authority citation for part 1239 continues to read as follows: Authority: 12 U.S.C. 1426, 1427, 1432(a), 1436(a), 1440, 4511(b), 4513(a), 4513(b), and 4526. 0 2. Add new Sec. 1239.14 to subpart C to read as follows: Sec. 1239.14 Strategic business plan. (a) Adoption of strategic business plan. Each board of directors shall adopt and have in effect at all times a strategic business plan for the regulated entity that describes, at a minimum, how the business activities of the regulated entity will achieve its mission and public purposes consistent with its authorizing statute, the Safety and Soundness Act, and, in the case of a Bank, part 1265 of this chapter. Specifically, each regulated entity's strategic business plan shall at a minimum: (1)(i) In the case of a Bank, articulate measurable operating goals and objectives for each significant business activity and for all authorized new business activities, which must include plans for maximizing activities that further the Bank's housing finance and community lending mission, consistent with part 1265 of this chapter; (ii) In the case of an Enterprise, articulate measurable operating goals and objectives for each significant existing activity and for all authorized new activities; (2) Discuss how the regulated entity will address credit needs and market opportunities identified through ongoing market research and stakeholder consultations; (3) Describe any significant activities in which the regulated entity is planning to be engaged, including any changes to business strategy or approach that the regulated entity is planning to undertake, and discuss how such activities would further the regulated entity's mission and public purposes; (4)(i) In the case of a Bank, be supported by appropriate and timely research and analysis of relevant market developments and member and housing associate demand for Bank products and services; (ii) In the case of an Enterprise, be supported by appropriate and timely research and analysis of relevant market developments; and (5) Identify current and emerging risks, including those associated with the regulated entity's existing activities or new activities, and discuss how the regulated entity plans to address emerging risks while furthering its public purposes and mission in a safe and sound manner. (b) Review and monitoring. Each board of directors shall: (1) Review the regulated entity's strategic business plan at least annually; (2) Re-adopt the strategic business plan for the regulated entity at least every three years; and (3) Establish management reporting requirements and monitor implementation of the strategic business plan and the operating goals and objectives contained therein. Sec. 1239.31 [Removed and reserved] 0 3. Remove and reserve Sec. 1239.31. Subchapter D--Federal Home Loan Banks PART 1273--[AMENDED] 0 4. The authority citation for part 1273 continues to read as follows: Authority: 12 U.S.C. 1431, 1440, 4511(b), 4513, 4514(a), 4526(a). Sec. 1273.8 [Amended] 0 5. Section 1273.8(d)(2) is amended by removing the reference to ``Sec. 1239.31'' and adding in its place ``Sec. 1239.14.'' Dated: April 2, 2018. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2018-07044 Filed 4-5-18; 8:45 am] BILLING CODE 8070-01-P
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from the assessments required under stream of commerce in the United monitor implementation of the strategic
§ 1206.42. States. Included are persons who hold business plan. The proposed rule would
(b) A first handler or importer title to foreign-produced mangos add a new provision regarding current
desiring an exemption shall apply to the immediately upon release by Customs, and emerging business risks, repeal two
Board, on a form provided by the Board, as well as any persons who act on behalf outdated provisions of the existing
for a certificate of exemption. A first of others, as agents or brokers, to secure regulation, and make a conforming
handler must certify that it will receive the release of mangos from Customs change to the Office of Finance Board of
less than 500,000 pounds of domestic when such mangos are entered or Directors regulation.
fresh mangos during the fiscal period for withdrawn for consumption in the DATES: Written comments on the
which the exemption is claimed. An United States. proposed rule must be received on or
importer must certify that it will import (e) Mangos means the fruit of before June 5, 2018.
less than 500,000 pounds of fresh Mangifera indica L. of the family ADDRESSES: You may submit your
mangos or less than 200,000 pounds of Anacardiaceae. The term mangos comments on the proposed rule,
frozen mangos for the fiscal period for includes: identified by regulatory information
which the exemption is claimed. (1) Fresh mangos, which means in number (RIN) 2590–AA90, by any of the
* * * * * their fresh form; and following methods:
■ 14. Revise § 1206.78 to read as (2) Frozen mangos, which means • Agency Website: www.fhfa.gov/
follows: mangos that are uncooked or cooked by open-for-comment-or-input.
steaming or boiling in water, and then • Federal eRulemaking Portal: http://
§ 1206.78 OMB control number. frozen, whether or not containing added www.regulations.gov. Follow the
The control numbers assigned to the sugar or other sweetening agent. instructions for submitting comments. If
information collection requirements of * * * * * you submit your comment to the
this part by the Office of Management
Dated: April 2, 2018. Federal eRulemaking Portal, please also
and Budget pursuant to the Paperwork
Bruce Summers, send it by email to FHFA at
Reduction Act of 1995, 44 U.S.C.
Acting Administrator. RegComments@fhfa.gov to ensure
Chapter 35, are OMB control number
timely receipt by the FHFA. Please
0505–0001 and OMB control number [FR Doc. 2018–06968 Filed 4–5–18; 8:45 am]
include ‘‘Comments/RIN 2590–AA90’’
0581–0093. BILLING CODE 3410–02–P
■ 15. In § 1206.101, revise paragraphs
in the subject line of the submission.
• Courier/Hand Delivery: The hand
(c), (d) and (e) to read as follows:
delivery address is: Alfred M. Pollard,
§ 1206.101 Definitions. FEDERAL HOUSING FINANCE General Counsel, Attention: Comments/
AGENCY RIN 2590–AA90, Federal Housing
* * * * *
(c) Eligible first handler means any Finance Agency, 400 Seventh Street
12 CFR Parts 1239 and 1273
person, (excluding a common or SW, Eighth Floor, Washington, DC
contract carrier), receiving 500,000 or RIN 2590–AA90 20219. Deliver the package to the
more pounds of fresh mangos from Seventh Street entrance Guard Desk,
producers in a calendar year and who as Responsibilities of Boards of First Floor, on business days between 9
owner, agent, or otherwise ships or Directors, Corporate Practices, and a.m. and 5 p.m.
causes mangos to be shipped as Corporate Governance • U.S. Mail, United Parcel Service,
specified in this Order. This definition AGENCY: Federal Housing Finance Federal Express, or Other Mail Service:
includes those engaged in the business Agency. The mailing address for comments is:
of buying, selling and/or offering for Alfred M. Pollard, General Counsel,
ACTION: Proposed rule.
sale; receiving; packing; grading; Attention: Comments/RIN 2590–AA90,
marketing; or distributing mangos in SUMMARY: The Federal Housing Finance Federal Housing Finance Agency, 400
commercial quantities. The term first Agency (FHFA) is proposing to amend Seventh Street SW, Eighth Floor,
handler includes a producer who its regulation on the Responsibilities of Washington, DC 20219.
handles or markets mangos of the Boards of Directors, Corporate Practices, FOR FURTHER INFORMATION CONTACT:
producer’s own production. and Corporate Governance for its Daniel Callis, Principal Risk Analyst,
(d) Eligible importer means any regulated entities. The proposed rule Office of the Chief Accountant, at
person importing 500,000 or more would amend the existing regulation Daniel.Callis@fhfa.gov or (202) 649–
pounds of fresh mangos or 200,000 or pertaining to Federal Home Loan Bank 3448, or Ming-Yuen Meyer-Fong, Office
more pounds of frozen mango into the strategic business plans so that it would of General Counsel, at Ming-
United States in a calendar year as a apply as well to the Enterprises, and Yuen.Meyer-Fong@fhfa.gov or (202)
principal or as an agent, broker, or would make a number of adjustments 649–3078 (these are not toll-free
consignee of any person who produces and conforming changes to the existing numbers), Federal Housing Finance
or handles mangos outside of the United regulation. As amended, the regulation Agency, Constitution Center, 400
States for sale in the United States, and would require that the board of directors Seventh Street SW, Washington, DC
who is listed as the importer of record of each regulated entity have in effect at 20219. The telephone number for the
for such mangos that are identified in all times a strategic business plan that Telecommunications Device for the
the Harmonized Tariff Schedule of the describes how the regulated entity’s Hearing Impaired is (800) 877–8339.
daltland on DSKBBV9HB2PROD with PROPOSALS
United States by the numbers business activities will achieve its SUPPLEMENTARY INFORMATION:
0804.50.4045, 0804.50.4055, statutory purposes. The proposed rule
0804.50.6045, 0804.50.6055, and would retain the provision that requires I. Request for Comments
0811.90.5200, during the representative each regulated entity’s board of FHFA invites comments on all aspects
period. Importation occurs when directors to review the strategic business of this proposed rule. After considering
mangos originating outside of the plan at least annually, re-adopt it at all comments, FHFA intends to issue a
United States are released from custody least once every three years, and final rule. FHFA will post on the FHFA
by Customs and introduced into the establish reporting requirements for and website at http://www.fhfa.gov all
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business activities, which must include consistent with its charter act and the Proposed § 1239.14(a)(3) would
plans for maximizing activities that Safety and Soundness Act. It also does require a regulated entity’s strategic
further the Bank’s housing finance and so by requiring the Enterprise’s strategic business plan to describe ‘‘significant
community lending mission. This business plan to articulate ‘‘measurable activities in which the regulated entity
provision is much the same as the operating goals and objectives’’ in is planning to be engaged,’’ including
existing regulation, but includes several achieving the Enterprise’s statutory any changes to business strategy or
proposed changes to coordinate with the purposes. Describing how the approach that the regulated entity is
Enterprise requirement, including the Enterprise’s business activities will planning to undertake, and discuss how
reference to ‘‘significant business achieve its mission and public such activities further the regulated
activity,’’ a proposed change from the purposes, and articulating measurable entity’s public purposes. FHFA
existing reference to ‘‘major business goals and objectives for significant considered whether to retain the
activity.’’ existing activities, would help to enable existing language in 12 CFR
The proposed rule would also require an Enterprise’s board of directors to 1239.31(a)(4), which requires a
a Bank’s strategic business plan to monitor, review, and hold management regulated entity’s strategic business plan
articulate measurable operating goals accountable for successful execution of to describe any ‘‘proposed new business
and objectives for all ‘‘authorized new the strategic business plan. activities or enhancements of existing
business activities.’’ FHFA regulations Proposed § 1239.14(a)(1)(ii) would activities.’’ However, the language of the
currently provide for agency review and reference ‘‘authorized new activities’’ in existing requirement is unclear as to
action on a Bank’s ‘‘new business its ‘‘measurable operating goals and whether activities in various stages of
activity’’ before a Bank may commence objectives’’ requirement. FHFA development are covered.
with the new business activity. 12 CFR regulations currently provide for agency Specifically, the existing regulatory
part 1272. That regulation authorizes a review and action on an Enterprise’s language referring to ‘‘proposed new
Bank to commence a new business ‘‘new activity’’ before the Enterprise business activities or enhancements of
activity absent affirmative approval if may commence with the new activity. existing activities’’ in § 1239.31(a)(4)
FHFA does not take action within the 12 CFR part 1253. The term ‘‘authorized may be ambiguous in that it could be
timeframes established under 12 CFR new activities’’ is used because the interpreted to include those activities
part 1272. The proposed requirement to current regulation for considering new that are in the planning or development
articulate operating goals and objectives activities authorizes an Enterprise to process within a Bank, but not yet
would not apply to new business engage in a new activity absent submitted as a new business activity.
activities that are denied, are pending affirmative approval. This could occur Alternatively, it could be interpreted to
FHFA action, or are not yet submitted where FHFA does not take action within refer to only those new business
to FHFA, but only to those new business 15 days from receipt of a complete new activities submitted to and pending
activities that have been authorized activity notice. 12 CFR 1253.3(d). As a approval with FHFA. Rather than
under the new business activities result, § 1239.14(a)(1)(ii) requires referring to proposed new business
regulation. articulation of measurable operating activities and enhancements of existing
The proposed rule would retain the goals and objectives for all ‘‘authorized activities, FHFA proposes to modify the
existing requirement that a Bank’s new activities,’’ which could include existing language for the Banks and
strategic plan ‘‘include plans for both new activities that were apply the same requirement to the
maximizing activities that further the affirmatively approved by FHFA and Enterprises.
Bank’s housing finance and community those authorized by passage of time. Proposed § 1239.14(a)(3) would
lending mission, consistent with part Proposed § 1239.14(a)(1)(ii) would not eliminate the need, in the context of the
1265 of this chapter.’’ Retaining this require a strategic business plan to strategic business plan requirement, to
clause would reiterate the priority the articulate measurable goals and determine whether an activity is a new
Banks should continue to place on their objectives for new activities that are business activity in the case of a Bank,
core mission activities to further their denied, pending FHFA action, or not yet or a new activity in the case of an
housing finance and community lending submitted to FHFA. Enterprise, for purposes of the
mission, consistent with 12 CFR part Proposed § 1239.14(a)(2) would respective regulation, and whether it
1265. require each regulated entity’s strategic has been submitted or approved as such.
For the Enterprises, proposed business plan to discuss how the The focus of the requirement would be
§ 1239.14(a)(1)(ii) would similarly regulated entity will address credit on significant activities in which the
require each Enterprise’s strategic needs and market opportunities regulated entity is planning to be
business plan to ‘‘articulate measurable identified through ongoing market engaged and how these planned
operating goals and objectives for each research and stakeholder consultations. activities would further the regulated
significant existing activity and all In the case of the Banks, stakeholders entity’s public purposes. To the extent
authorized new activities.’’ The would include members, housing the significant activities described
Enterprises do not have a core mission associates, and public and private would affect the future financial
activity regulation comparable to that of organizations. In the case of the condition or risk profile of the regulated
the Banks, so, a requirement analogous Enterprises, stakeholders would include entity, the strategic business plan
to that for the Banks described above is mortgage market participants and public should address such risks.
not included in the Enterprise and private organizations, including For the Banks, proposed
provisions. However, proposed those that advocate for access to credit. § 1239.14(a)(3) would clarify the
daltland on DSKBBV9HB2PROD with PROPOSALS
§ 1239.14(a)(1)(ii) would achieve an The purpose of § 1239.14(a)(2) is similar existing regulatory language in 12 CFR
outcome for the Enterprises similar to to that currently in effect for the Banks, 1239.31(a)(4) for each Bank’s strategic
that for the Banks under that is, to require regulated entity board business plan to describe any ‘‘proposed
§ 1239.14(a)(1)(i). It does so by generally engagement with market research and new business activities or
requiring the strategic business plan to stakeholder consultations to identify enhancements of existing activities.’’
describe ‘‘how the [Enterprise’s] areas of credit needs and market Instead, the proposed change would
business activities . . . will achieve [its] opportunities to further the regulated require the plan to describe any
mission and public purposes,’’ entity’s public purposes. ‘‘significant activities in which the
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![Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Proposed Rules 14785
General Counsel of FHFA certifies that (2) Discuss how the regulated entity DEPARTMENT OF TRANSPORTATION
the proposed rule, if adopted as a final will address credit needs and market
rule, is not likely to have a significant opportunities identified through Federal Aviation Administration
economic impact on a substantial ongoing market research and
number of small entities because it stakeholder consultations; 14 CFR Part 71
applies only to the regulated entities (3) Describe any significant activities [Docket No. FAA–2018–0094; Airspace
and the Office of Finance, which are not in which the regulated entity is Docket No. 18–ASW–4]
small entities for purposes of the planning to be engaged, including any
Regulatory Flexibility Act. Therefore, an RIN 2120–AA66
changes to business strategy or approach
initial regulatory flexibility analysis is that the regulated entity is planning to Proposed Amendment of Class D
not required. undertake, and discuss how such Airspace; Tulsa, OK
List of Subjects activities would further the regulated
entity’s mission and public purposes; AGENCY: Federal Aviation
12 CFR Part 1239 Administration (FAA), DOT.
(4)(i) In the case of a Bank, be
Administrative practice and ACTION: Notice of proposed rulemaking
supported by appropriate and timely
procedure, Federal home loan banks, research and analysis of relevant market (NPRM).
Government-sponsored enterprises, developments and member and housing SUMMARY: This action proposes to
Reporting and recordkeeping associate demand for Bank products and modify the Class D airspace designated
requirements. services; as an extension at Tulsa Lloyd Jones Jr.
12 CFR Part 1273 (ii) In the case of an Enterprise, be Airport, Tulsa, OK. The FAA is
supported by appropriate and timely proposing this action as a result of an
Federal home loan banks, Securities.
research and analysis of relevant market airspace review caused by the
Accordingly, for reasons stated in the developments; and decommissioning of the Glenpool VHF
Supplementary Information, FHFA omnidirectional range (VOR)
hereby proposes to amend 12 CFR parts (5) Identify current and emerging
risks, including those associated with navigational aid as part of the VOR
1239 and 1273 as follows: Minimum Operational Network (MON)
the regulated entity’s existing activities
Subchapter B—Regulated Entities or new activities, and discuss how the Program and the cancellation of the
regulated entity plans to address associated instrument procedures. The
PART 1239—[AMENDED] emerging risks while furthering its geographic coordinates also would be
public purposes and mission in a safe amended, and an editorial change
■ 1. The authority citation for part 1239 would be made removing the airport
continues to read as follows: and sound manner.
name in the airspace designation, and
Authority: 12 U.S.C. 1426, 1427, 1432(a),
(b) Review and monitoring. Each removing the city name from the airport
1436(a), 1440, 4511(b), 4513(a), 4513(b), and board of directors shall: designation. Another editorial change
4526. (1) Review the regulated entity’s would be made to the legal description
■ 2. Add new § 1239.14 to subpart C to strategic business plan at least annually; replacing ‘‘Airport/Facility Directory’’
read as follows: (2) Re-adopt the strategic business with ‘‘Chart Supplement’’.
plan for the regulated entity at least DATES: Comments must be received on
§ 1239.14 Strategic business plan. every three years; and or before May 21, 2018.
(a) Adoption of strategic business ADDRESSES: Send comments on this
(3) Establish management reporting
plan. Each board of directors shall adopt proposal to the U.S. Department of
requirements and monitor
and have in effect at all times a strategic Transportation, Docket Operations,
implementation of the strategic business
business plan for the regulated entity West Building Ground Floor, Room
plan and the operating goals and
that describes, at a minimum, how the W12–140, 1200 New Jersey Avenue SE,
objectives contained therein.
business activities of the regulated Washington, DC 20590; telephone (202)
entity will achieve its mission and § 1239.31 [Removed and reserved] 366–9826, or (800) 647–5527. You must
public purposes consistent with its identify FAA Docket No. FAA–2018–
authorizing statute, the Safety and ■ 3. Remove and reserve § 1239.31.
0094; Airspace Docket No. 18–ASW–4,
Soundness Act, and, in the case of a Subchapter D—Federal Home Loan Banks at the beginning of your comments. You
Bank, part 1265 of this chapter. may also submit comments through the
Specifically, each regulated entity’s PART 1273—[AMENDED] internet at http://www.regulations.gov.
strategic business plan shall at a You may review the public docket
minimum: ■ 4. The authority citation for part 1273 containing the proposal, any comments
(1)(i) In the case of a Bank, articulate continues to read as follows: received, and any final disposition in
measurable operating goals and Authority: 12 U.S.C. 1431, 1440, 4511(b), person in the Dockets Office between
objectives for each significant business 4513, 4514(a), 4526(a). 9:00 a.m. and 5:00 p.m., Monday
activity and for all authorized new through Friday, except Federal holidays.
business activities, which must include § 1273.8 [Amended] FAA Order 7400.11B, Airspace
plans for maximizing activities that ■ 5. Section 1273.8(d)(2) is amended by Designations and Reporting Points, and
daltland on DSKBBV9HB2PROD with PROPOSALS
further the Bank’s housing finance and removing the reference to ‘‘§ 1239.31’’ subsequent amendments can be viewed
community lending mission, consistent and adding in its place ‘‘§ 1239.14.’’ online at http://www.faa.gov/air_traffic/
with part 1265 of this chapter; publications/. For further information,
(ii) In the case of an Enterprise, Dated: April 2, 2018. you can contact the Airspace Policy
articulate measurable operating goals Melvin L. Watt, Group, Federal Aviation
and objectives for each significant Director, Federal Housing Finance Agency. Administration, 800 Independence
existing activity and for all authorized [FR Doc. 2018–07044 Filed 4–5–18; 8:45 am] Avenue SW, Washington, DC 20591;
new activities; BILLING CODE 8070–01–P telephone: (202) 267–8783. The Order is
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Document Created: 2018-11-01 09:15:26
Document Modified: 2018-11-01 09:15:26
| 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 | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Written comments on the proposed rule must be received on or before June 5, 2018. | |
| Contact | Daniel Callis, Principal Risk Analyst, Office of the Chief Accountant, at [email protected] or (202) 649- 3448, or Ming-Yuen Meyer-Fong, Office of General Counsel, at Ming- [email protected] or (202) 649-3078 (these are not toll-free numbers), Federal Housing Finance Agency, Constitution Center, 400 Seventh Street SW, Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339. | |
| FR Citation | 83 FR 14781 | |
| RIN Number | 2590-AA90 | |
| CFR Citation | 12
CFR
1239 12 CFR 1273 | |
| CFR Associated | Administrative Practice and Procedure; Federal Home Loan Banks; Government-Sponsored Enterprises; Reporting and Recordkeeping Requirements and Securities |
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