83_FR_15367 83 FR 15298 - Community Reinvestment Act Regulations; Correction

83 FR 15298 - Community Reinvestment Act Regulations; Correction

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

Federal Register Volume 83, Issue 69 (April 10, 2018)

Page Range15298-15301
FR Document2018-06963

This document supplements and corrects the preamble of the final rule that was published in the Federal Register on November 24, 2017, entitled ``Community Reinvestment Act Regulations.''

Federal Register, Volume 83 Issue 69 (Tuesday, April 10, 2018) 
[Federal Register Volume 83, Number 69 (Tuesday, April 10, 2018)]
[Rules and Regulations]
[Pages 15298-15301]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06963]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2017-0008]
RIN 1557-AE15

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Docket No. R-1574]
RIN 7100-AE84

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AE58


Community Reinvestment Act Regulations; Correction

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

ACTION: Final rule; correction.

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SUMMARY: This document supplements and corrects the preamble of the 
final rule that was published in the Federal Register on November 24, 
2017, entitled ``Community Reinvestment Act Regulations.''

DATES: Effective April 10, 2018 and applicable beginning January 1, 
2018.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Emily R. Boyes, Attorney, Community and Consumer Law Division, 
(202) 649-6350; Allison Hester-Haddad, Counsel, Legislative and 
Regulatory Activities Division, (202) 649-5490; for persons who are 
deaf or hearing impaired, TTY, (202) 649-5597; or Vonda J. Eanes, 
Director for CRA and Fair Lending Policy, Compliance Risk Policy 
Division, (202) 649-5470, Office of the Comptroller of the Currency, 
400 7th Street SW, Washington, DC 20219.
    Board: Amal S. Patel, Senior Supervisory Consumer Financial 
Services Analyst, Division of Consumer and Community Affairs, (202) 
912-7879; Cathy Gates, Senior Project Manager, Division of Consumer and 
Community Affairs, (202) 452-2099, Board of Governors of the Federal

[[Page 15299]]

Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 
20551.
    FDIC: Patience R. Singleton, Senior Policy Analyst, Supervisory 
Policy Branch, Division of Depositor and Consumer Protection, (202) 
898-6859; Sharon B. Vejvoda, Senior Examination Specialist, Examination 
Branch, Division of Depositor and Consumer Protection, (202) 898-3881; 
Richard M. Schwartz, Counsel, Legal Division, (202) 898-7424; or Sherry 
Ann Betancourt, Counsel, Legal Division, (202) 898-6560, Federal 
Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 
20429.

SUPPLEMENTARY INFORMATION: 

I. Background

    This document supplements and corrects the SUPPLEMENTARY 
INFORMATION section of the final rule entitled ``Community Reinvestment 
Act Regulations'' (the CRA final rule), published on November 24, 2017, 
Federal Register Document 2017-25330 (82 FR 55734), by the OCC, the 
Board, and the FDIC (collectively, the Agencies), by addressing two 
additional comments that were timely submitted but inadvertently not 
included in the rulemaking record of the CRA final rule. The sections 
of this correction document are effective as if they had been included 
in the SUPPLEMENTARY INFORMATION section of the CRA final rule, 
effective January 1, 2018.

II. Waiver of Proposed Rulemaking and Waiver of 30-day Delayed 
Effective Date

    The Agencies ordinarily publish a notice of proposed rulemaking in 
the Federal Register to provide a period for public comment before the 
provisions of a rule take effect in accordance with section 553(b) of 
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). Nevertheless, 
an agency can waive this notice and comment procedure if it finds, for 
good cause, that the notice and comment process is impracticable, 
unnecessary, or contrary to the public interest and incorporates a 
statement of its findings and reasons in the notice.
    Section 553(d) of the APA ordinarily requires a 30-day delay in the 
effective date of a final rule after the date of its publication in the 
Federal Register. This 30-day delay in effective date can be waived, 
however, if an agency finds for good cause that the delay is 
impracticable, unnecessary, or contrary to the public interest, and the 
agency incorporates a statement of the findings and its reasons in the 
rule issued.
    The Agencies do not believe that this correction document 
constitutes a rule that would be subject to APA notice and comment or 
delayed effective date requirements. The document corrects and 
supplements the Agencies' discussion of public comments in the 
SUPPLEMENTARY INFORMATION section of the CRA final rule and does not 
make any changes to the regulatory text in the CRA final rule or 
otherwise alter the CRA final rule's effect. As a result, this 
correction document is intended to ensure that the CRA final rule's 
SUPPLEMENTARY INFORMATION section accurately reflects the record of 
comments received and the Agencies' responses.
    Moreover, even if the notice and comment and delayed effective date 
requirements applied to this rule, the Agencies find that there is good 
cause to waive those requirements because they are unnecessary as the 
CRA final rule had been previously subjected to the notice and comment 
procedures. As noted above, the Agencies are merely supplementing and 
correcting a discussion of public comments in the SUPPLEMENTARY 
INFORMATION section through this correction document. The Agencies are 
not making any changes to the regulatory text in the CRA final rule. 
Therefore, the Agencies find it unnecessary to undertake further notice 
and comment procedures with respect to this correction document.

III. Summary of Errors

    In the SUPPLEMENTARY INFORMATION section of the CRA final rule, the 
Agencies discussed amendments to their Community Reinvestment Act (CRA) 
regulations. The Agencies referenced two public comments received in 
response to the Notice of Proposed Rulemaking for those amendments \1\ 
and provided responses to those comments. However, due to an 
inadvertent clerical error, the Agencies did not become aware of two 
additional comment letters that were timely submitted until after the 
Agencies had finalized and issued the amendments.
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    \1\ 82 FR 43910 (Sept. 20, 2017).
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    After analyzing the two additional comment letters, the Agencies 
have determined that no changes to the regulatory text in the CRA final 
rule are necessary. However, the Agencies are revising the 
administrative record to include the correct number of public comments 
received, the analysis of all comments received, and the Agencies' 
responses to the comments.

IV. Correction of Errors

    1. On page 55734, the third full paragraph in the third column is 
revised to read as follows:
    ``Together, the Agencies received four comment letters on the 
proposed amendments. One comment was from a community organization, two 
comment letters were from industry trade associations, and one comment 
was from a financial institution. Commenters generally supported the 
changes proposed by the Agencies, although each also raised concerns 
regarding certain aspects of the proposed rule and made other 
suggestions not related to the proposal. As explained below, the 
Agencies are finalizing the amendments as proposed.''
    2. On page 55735, the second full paragraph in the third column 
(continued in the first column on page 55736) and the first full 
paragraph in the first column on page 55736 are revised, and one 
paragraph is added following them to read as follows:
    ``The Agencies received three comment letters addressing this 
proposed revision. Two of the commenters supported the Agencies' 
efforts to conform the definition of ``home mortgage loan'' in the 
Agencies' CRA regulations to the scope of reportable transactions in 
Regulation C; one commenter opposed it. Of the two commenters 
supporting the proposed amendments, a community organization noted that 
some banks expressed concern that including home equity products 
(closed-end home equity loans and open-end home equity lines of credit) 
in CRA evaluations could have the effect of lowering the overall 
percentage of home mortgage loans made to low- and moderate-income 
borrowers and suggested that the Agencies consider evaluating home 
equity lending separately from other types of home lending. This 
commenter also urged the Agencies to consider loan purchases separately 
from originations during the CRA evaluation. A trade association 
opposed the proposed amendment to the ``home mortgage loan'' 
definition. This commenter recommended that data related to home equity 
products not be included in the CRA reports provided to the Agencies 
and the Agencies' analysis of home mortgage loans for purposes of the 
CRA evaluation. The commenter suggested that the Agencies only consider 
home equity-related data at the option of the financial institution. 
The commenter stated that treating home equity products in the same 
manner as purchase money mortgages or other real estate-secured lending 
fails to address the significant differences in the availability and 
use of these products across different geographies and income.

[[Page 15300]]

    ``The Agencies have considered all comments and are finalizing the 
amendment to the ``home mortgage loan'' definition as proposed. First, 
the commenter's suggestion to consider home mortgage loan purchases 
separately from loan originations would require a change to the lending 
test in the CRA regulations (12 CFR 25.22, 195.22, 228.22, and 345.22), 
which is beyond the scope of the proposed amendments. Second, excluding 
home equity loans and home equity lines of credit from the ``home 
mortgage loan'' definition would create an inconsistency between the 
CRA and HMDA regulations and a separate reporting requirement for CRA 
reporters that are also HMDA reporters. The change in the ``home 
mortgage loan'' definition does not require that the Agencies evaluate 
home mortgage loans with different purposes (e.g., home purchase, 
refinance, home improvement) the same during the CRA evaluation. 
Instead, the Agencies note that, as with all aspects of an 
institution's CRA performance evaluation, the Agencies will consider 
the performance context of the financial institution when evaluating 
its performance related to home mortgage lending, including home equity 
products. The Agencies emphasize that performance context may include 
additional information to explain how various loan products may impact 
bank performance. The Agencies believe that the commenters' concerns 
can be addressed effectively through the supervisory process. 
Accordingly, the Agencies are finalizing the revised definition of 
``home mortgage loan'' as proposed.
    ``As we stated in the proposed rule, the Agencies have relied on 
the scope of HMDA-reportable transactions to define ``home mortgage 
loan'' in the CRA regulations, in order to reduce burden on 
institutions by avoiding unnecessary costs and confusion, and have made 
conforming changes when the scope of HMDA-reportable transactions has 
changed, provided that the revised terms continue to meet the statutory 
purposes of the CRA. The Agencies are aware that the Bureau announced 
its intention to open a rulemaking to reconsider various aspects of the 
2015 HMDA Rule in its December 21, 2017, Public Statement on Home 
Mortgage Disclosure Act Compliance, which is available at https://www.consumerfinance.gov/about-us/newsroom/cfpb-issues-public-statement-home-mortgage-disclosure-act-compliance/. The Agencies will continue to 
review and monitor any new developments, including any amendments made 
to the cross-referenced definitions in HMDA and Regulation C that 
impact the CRA regulations, to ensure that such cross-referenced terms 
continue to meet the statutory objectives of the CRA.''
    3. On page 55736, the first and second full paragraphs in the 
second column are revised and two paragraphs are added following them 
to read as follows:
    ``The Agencies received three comments addressing the proposed 
revision. These commenters supported amending the definition of 
``consumer lending'' in the Agencies' CRA regulations to conform to 
changes in the scope of loans reportable under Regulation C, which will 
be effective January 1, 2018, but made additional suggestions, 
including some not related to the proposal. A trade association urged 
the Agencies to consider automatically home improvement loans not 
secured by a dwelling if the financial institution opts to have them 
considered. This commenter also suggested that if the financial 
institution opts not to have such loans considered, then the Agencies 
should not require the institution to produce data on those loans for 
CRA evaluation. A community organization suggested that the Agencies 
should have examiners evaluate consumer lending, including home 
improvement lending not secured by a dwelling, during CRA exams when 
such lending constitutes a ``significant amount'' of the bank's 
business rather than a ``substantial majority,'' as is currently 
required under 12 CFR __.22(a)(1). Another trade association encouraged 
the Agencies to create a fifth category under the ``consumer loan'' 
definition to take the place of the ``home equity loan'' category, 
which the Agencies proposed to remove as a result of home equity loans 
and home equity lines of credit being included in the amended 
definition of ``home mortgage loan.''
    ``The Agencies have considered the comments and are finalizing the 
definition of ``consumer lending'' as proposed. First, the commenters' 
suggestions to defer always to the financial institution on the 
inclusion of unsecured home improvement loans and to change 
``substantial majority'' to ``significant amount'' would require a 
change to the CRA regulations beyond the scope of the proposed 
amendments. Specifically, consumer loans are considered in the large 
bank lending test under 12 CFR __.22(a)(1) under two circumstances: 
``if the bank has collected and maintained [data], as required under 12 
CFR __.42(c)(1), and elects to have those loans considered'' or ``[i]f 
consumer lending constitutes a substantial majority of a bank's 
business.'' 12 CFR __.22(a)(1). Thus, in the case of financial 
institutions evaluated under the large bank lending test, following 
these commenters' recommendations would require a regulatory change in 
the retail lending test under 12 CFR __.22(a)(1), which was not 
proposed.
    ``Further, in regard to the commenter's suggestion to use 
``significant amount'' instead of ``substantial majority,'' loan 
products evaluated in the small and intermediate small bank tests are 
generally based on the financial institution's major product lines, or 
primary products, whichever term applies depending on the supervising 
agency. The categorization of consumer loans by type applies solely to 
financial institutions evaluated using the large bank lending test. The 
selection of major product lines, or primary products, for small and 
intermediate small banks typically involves a review of loan 
originations during the evaluation period, by loan type, along with a 
discussion with bank management to understand the bank's business 
focus. As a result, examiners already may include or exclude home 
improvement loans in evaluating bank performance if they are not a 
major product line, or primary product, as applicable.
    ``Second, the Agencies do not believe that creating a fifth, ``home 
improvement,'' category of consumer loans is warranted given the 
flexibility already provided through the supervisory process. 
Additionally, creating a separate ``home improvement loan'' category of 
consumer loans could result in additional burden for many financial 
institutions, particularly community banks, through the separate 
tracking of loans and could result in a double counting of loans, under 
HMDA and CRA, for home improvement purposes that are secured by a 
dwelling. For these reasons, the Agencies opted to consider home 
improvement loans not secured by a dwelling included in evaluating 
performance under the large bank lending test under the existing 
consumer loan categories of ``other secured'' and ``other unsecured,'' 
rather than to create a new category of consumer loans. Accordingly, 
the Agencies are finalizing the definition of ``consumer lending'' as 
proposed. We note, however, that although the Agencies are not adopting 
changes pursuant to the commenters' recommendations, the Agencies 
regularly review examination policies, procedures, guidance, and the 
CRA

[[Page 15301]]

regulations to better serve the goals of the CRA.''
    4. On page 55736, the first full paragraph in the third column is 
revised to read as follows:
    ``The Agencies received two comments on the proposed changes to the 
CRA public file content requirements. One trade association supported 
the Agencies' efforts to streamline the public file content 
requirements to make it consistent with the new HMDA public disclosure 
requirements. Another trade association suggested that because 
financial institutions will no longer need to provide HMDA Loan 
Application Registers to the public, financial institutions should also 
not be required to produce their CRA Loan Application Registers (CRA 
LARs) so as to reduce regulatory burden. Changing the requirements in 
the CRA public file with respect to CRA LARs would require a regulation 
change that was not proposed by the Agencies and did not have the 
benefit of notice and comment. Accordingly, the Agencies are adopting 
the revisions as proposed.''

    Dated: March 30, 2018.
Joseph M. Otting,
Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, March 13, 2018.
Ann E. Misback,
Secretary of the Board.
    Dated at Washington, DC, this 12th of March, 2018.

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-06963 Filed 4-9-18; 8:45 am]
 BILLING CODE 4810-33; 6210-01; 6714-01-P

15298 Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Rules and Regulations granted leave under § 630.1603. emergency employee could work from subpart as a category of leave separate Employees who are eligible to telework an approved telework site in lieu of from other types of leave. and participating in a telework program traveling to the regular worksite in [FR Doc. 2018–07348 Filed 4–9–18; 8:45 am] under applicable agency policies are appropriate circumstances, an agency BILLING CODE 6325–39–P typically able to safely perform work at should encourage the employee to enter their approved telework site (e.g., into a telework agreement providing for home), since they are not required to that contingency. An agency may DEPARTMENT OF THE TREASURY work at their regular worksite. designate different emergency (2)(i) If, in the agency’s judgment, the employees for the different Office of the Comptroller of the conditions in § 630.1603 could not circumstances expected to arise from Currency reasonably be anticipated, an agency these conditions. Emergency employees may provide leave under this subpart to must report to work at their regular 12 CFR Parts 25 and 195 the extent an employee was not able to worksite or another approved location prepare for telework as described in as directed by the agency, unless— [Docket ID OCC–2017–0008] paragraph (a)(3) of this section and is (1) The agency determines that travel RIN 1557–AE15 otherwise unable to perform productive to or performing work at the worksite is work at the telework site. unsafe for emergency employees, in FEDERAL RESERVE SYSTEM (ii) If an employee is prevented from which case the agency may require the safely working at the approved telework employees to work at another location, 12 CFR Part 228 site due to circumstances, arising from including a telework site as provided in one or more of the conditions in [Docket No. R–1574] paragraph (a) of this section, as § 630.1603, applicable to the telework appropriate; or RIN 7100–AE84 site, an agency may, at its discretion, (2) The agency determines that provide leave under this subpart to the circumstances justify granting leave FEDERAL DEPOSIT INSURANCE employee. under this subpart to emergency CORPORATION (iii) Notwithstanding paragraphs employees. (a)(2)(i) and (ii) of this section, an 12 CFR Part 345 agency may decide not to provide leave § 630.1606 Administration of weather and under this subpart when the conditions safety leave. RIN 3064–AE58 in § 630.1603 do not prevent the (a) An agency must use the same employee from safely traveling to or Community Reinvestment Act minimum charge increments for safely performing work at a regular Regulations; Correction weather and safety leave as it does for worksite, even if the affected day is a annual and sick leave under § 630.206. AGENCY: Office of the Comptroller of the scheduled telework day. (b) Employees may be granted Currency, Treasury (OCC); Board of (3) In making a determination under weather and safety leave only for hours Governors of the Federal Reserve paragraph (a)(2) of this section, an within the tour of duty established for System (Board); and Federal Deposit agency must evaluate whether any of purposes of charging annual and sick Insurance Corporation (FDIC). the conditions in § 630.1603 could be leave when absent. For full-time ACTION: Final rule; correction. reasonably anticipated and whether the employees, that tour is the 40-hour basic employee took reasonable steps (within workweek as defined in 5 CFR 610.102, SUMMARY: This document supplements the employee’s control) to prepare to the basic work requirement established and corrects the preamble of the final perform telework at the approved for employees on a flexible or rule that was published in the Federal telework site. For example, if a compressed work schedule as defined in Register on November 24, 2017, entitled significant snowstorm is predicted, the 5 U.S.C. 6121(3), or an uncommon tour ‘‘Community Reinvestment Act employee may need to prepare by taking of duty under § 630.210. Regulations.’’ home any equipment (e.g., laptop (c) Employees may not receive computer) and work needed for DATES: Effective April 10, 2018 and weather and safety leave for hours teleworking. To the extent that an applicable beginning January 1, 2018. during which they are on other employee is unable to perform work at preapproved leave (paid or unpaid) or FOR FURTHER INFORMATION CONTACT: a telework site because of failure to paid time off. Agencies should not OCC: Emily R. Boyes, Attorney, make necessary preparations for provide weather and safety leave to an Community and Consumer Law reasonably anticipated conditions, an employee who, in the agency’s Division, (202) 649–6350; Allison agency may not provide weather and judgment, is cancelling preapproved Hester-Haddad, Counsel, Legislative and safety leave, and the employee would leave or paid time off, or changing a Regulatory Activities Division, (202) need to use other appropriate paid regular day off in a flexible or 649–5490; for persons who are deaf or leave, paid time off, or leave without compressed work schedule, for the hearing impaired, TTY, (202) 649–5597; pay. primary purpose of obtaining weather or Vonda J. Eanes, Director for CRA and (b) Emergency employees. An agency and safety leave. Fair Lending Policy, Compliance Risk may designate emergency employees Policy Division, (202) 649–5470, Office who are critical to agency operations § 630.1607 Records and reporting. of the Comptroller of the Currency, 400 and for whom weather and safety leave (a) Record of placement on leave. An 7th Street SW, Washington, DC 20219. may not be applicable. To the extent agency must maintain an accurate Board: Amal S. Patel, Senior jstallworth on DSKBBY8HB2PROD with RULES practicable, an agency should inform record of the placement of an employee Supervisory Consumer Financial employees of their designation as on weather and safety leave. Services Analyst, Division of Consumer emergency employees well in advance (b) Reporting. In agency data systems and Community Affairs, (202) 912– in anticipation of the possible (including timekeeping systems) and in 7879; Cathy Gates, Senior Project occurrence of the conditions set forth in data reports submitted to OPM, an Manager, Division of Consumer and § 630.1603. If the agency wishes to agency must record weather and safety Community Affairs, (202) 452–2099, provide for the possibility that an leave under section 6329c and this Board of Governors of the Federal VerDate Sep<11>2014 14:31 Apr 09, 2018 Jkt 244001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\10APR1.SGM 10APR1

Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Rules and Regulations 15299 Reserve System, 20th Street and that would be subject to APA notice and ‘‘Together, the Agencies received four Constitution Avenue NW, Washington, comment or delayed effective date comment letters on the proposed DC 20551. requirements. The document corrects amendments. One comment was from a FDIC: Patience R. Singleton, Senior and supplements the Agencies’ community organization, two comment Policy Analyst, Supervisory Policy discussion of public comments in the letters were from industry trade Branch, Division of Depositor and SUPPLEMENTARY INFORMATION section of associations, and one comment was Consumer Protection, (202) 898–6859; the CRA final rule and does not make from a financial institution. Sharon B. Vejvoda, Senior Examination any changes to the regulatory text in the Commenters generally supported the Specialist, Examination Branch, CRA final rule or otherwise alter the changes proposed by the Agencies, Division of Depositor and Consumer CRA final rule’s effect. As a result, this although each also raised concerns Protection, (202) 898–3881; Richard M. correction document is intended to regarding certain aspects of the Schwartz, Counsel, Legal Division, (202) ensure that the CRA final rule’s proposed rule and made other 898–7424; or Sherry Ann Betancourt, SUPPLEMENTARY INFORMATION section suggestions not related to the proposal. Counsel, Legal Division, (202) 898– accurately reflects the record of As explained below, the Agencies are 6560, Federal Deposit Insurance comments received and the Agencies’ finalizing the amendments as Corporation, 550 17th Street NW, responses. proposed.’’ Washington, DC 20429. Moreover, even if the notice and 2. On page 55735, the second full SUPPLEMENTARY INFORMATION: comment and delayed effective date paragraph in the third column requirements applied to this rule, the (continued in the first column on page I. Background Agencies find that there is good cause 55736) and the first full paragraph in the This document supplements and to waive those requirements because first column on page 55736 are revised, corrects the SUPPLEMENTARY they are unnecessary as the CRA final and one paragraph is added following INFORMATION section of the final rule rule had been previously subjected to them to read as follows: entitled ‘‘Community Reinvestment Act the notice and comment procedures. As ‘‘The Agencies received three Regulations’’ (the CRA final rule), noted above, the Agencies are merely comment letters addressing this published on November 24, 2017, supplementing and correcting a proposed revision. Two of the Federal Register Document 2017–25330 discussion of public comments in the commenters supported the Agencies’ (82 FR 55734), by the OCC, the Board, SUPPLEMENTARY INFORMATION section efforts to conform the definition of and the FDIC (collectively, the through this correction document. The ‘‘home mortgage loan’’ in the Agencies’ Agencies), by addressing two additional Agencies are not making any changes to CRA regulations to the scope of comments that were timely submitted the regulatory text in the CRA final rule. reportable transactions in Regulation C; but inadvertently not included in the Therefore, the Agencies find it one commenter opposed it. Of the two rulemaking record of the CRA final rule. unnecessary to undertake further notice commenters supporting the proposed The sections of this correction and comment procedures with respect amendments, a community organization document are effective as if they had to this correction document. noted that some banks expressed been included in the SUPPLEMENTARY concern that including home equity INFORMATION section of the CRA final III. Summary of Errors products (closed-end home equity loans rule, effective January 1, 2018. In the SUPPLEMENTARY INFORMATION and open-end home equity lines of section of the CRA final rule, the credit) in CRA evaluations could have II. Waiver of Proposed Rulemaking and the effect of lowering the overall Agencies discussed amendments to Waiver of 30-day Delayed Effective percentage of home mortgage loans their Community Reinvestment Act Date made to low- and moderate-income (CRA) regulations. The Agencies The Agencies ordinarily publish a referenced two public comments borrowers and suggested that the notice of proposed rulemaking in the received in response to the Notice of Agencies consider evaluating home Federal Register to provide a period for Proposed Rulemaking for those equity lending separately from other public comment before the provisions of amendments 1 and provided responses types of home lending. This commenter a rule take effect in accordance with to those comments. However, due to an also urged the Agencies to consider loan section 553(b) of the Administrative inadvertent clerical error, the Agencies purchases separately from originations Procedure Act (APA) (5 U.S.C. 553(b)). did not become aware of two additional during the CRA evaluation. A trade Nevertheless, an agency can waive this comment letters that were timely association opposed the proposed notice and comment procedure if it submitted until after the Agencies had amendment to the ‘‘home mortgage finds, for good cause, that the notice and finalized and issued the amendments. loan’’ definition. This commenter comment process is impracticable, After analyzing the two additional recommended that data related to home unnecessary, or contrary to the public comment letters, the Agencies have equity products not be included in the interest and incorporates a statement of determined that no changes to the CRA reports provided to the Agencies its findings and reasons in the notice. regulatory text in the CRA final rule are and the Agencies’ analysis of home Section 553(d) of the APA ordinarily necessary. However, the Agencies are mortgage loans for purposes of the CRA requires a 30-day delay in the effective revising the administrative record to evaluation. The commenter suggested date of a final rule after the date of its include the correct number of public that the Agencies only consider home publication in the Federal Register. comments received, the analysis of all equity-related data at the option of the This 30-day delay in effective date can comments received, and the Agencies’ financial institution. The commenter be waived, however, if an agency finds responses to the comments. stated that treating home equity jstallworth on DSKBBY8HB2PROD with RULES for good cause that the delay is products in the same manner as impracticable, unnecessary, or contrary IV. Correction of Errors purchase money mortgages or other real to the public interest, and the agency 1. On page 55734, the third full estate-secured lending fails to address incorporates a statement of the findings paragraph in the third column is revised the significant differences in the and its reasons in the rule issued. to read as follows: availability and use of these products The Agencies do not believe that this across different geographies and correction document constitutes a rule 1 82 FR 43910 (Sept. 20, 2017). income. VerDate Sep<11>2014 14:31 Apr 09, 2018 Jkt 244001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\10APR1.SGM 10APR1

15300 Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Rules and Regulations ‘‘The Agencies have considered all new developments, including any elects to have those loans considered’’ comments and are finalizing the amendments made to the cross- or ‘‘[i]f consumer lending constitutes a amendment to the ‘‘home mortgage referenced definitions in HMDA and substantial majority of a bank’s loan’’ definition as proposed. First, the Regulation C that impact the CRA business.’’ 12 CFR __.22(a)(1). Thus, in commenter’s suggestion to consider regulations, to ensure that such cross- the case of financial institutions home mortgage loan purchases referenced terms continue to meet the evaluated under the large bank lending separately from loan originations would statutory objectives of the CRA.’’ test, following these commenters’ require a change to the lending test in 3. On page 55736, the first and second recommendations would require a the CRA regulations (12 CFR 25.22, full paragraphs in the second column regulatory change in the retail lending 195.22, 228.22, and 345.22), which is are revised and two paragraphs are test under 12 CFR __.22(a)(1), which beyond the scope of the proposed added following them to read as was not proposed. amendments. Second, excluding home follows: ‘‘Further, in regard to the equity loans and home equity lines of ‘‘The Agencies received three commenter’s suggestion to use credit from the ‘‘home mortgage loan’’ comments addressing the proposed ‘‘significant amount’’ instead of definition would create an revision. These commenters supported ‘‘substantial majority,’’ loan products inconsistency between the CRA and amending the definition of ‘‘consumer evaluated in the small and intermediate HMDA regulations and a separate lending’’ in the Agencies’ CRA small bank tests are generally based on reporting requirement for CRA reporters regulations to conform to changes in the the financial institution’s major product that are also HMDA reporters. The scope of loans reportable under lines, or primary products, whichever change in the ‘‘home mortgage loan’’ Regulation C, which will be effective term applies depending on the definition does not require that the January 1, 2018, but made additional supervising agency. The categorization Agencies evaluate home mortgage loans suggestions, including some not related of consumer loans by type applies solely with different purposes (e.g., home to the proposal. A trade association to financial institutions evaluated using purchase, refinance, home urged the Agencies to consider the large bank lending test. The improvement) the same during the CRA automatically home improvement loans selection of major product lines, or evaluation. Instead, the Agencies note not secured by a dwelling if the primary products, for small and that, as with all aspects of an financial institution opts to have them intermediate small banks typically institution’s CRA performance considered. This commenter also involves a review of loan originations evaluation, the Agencies will consider suggested that if the financial institution during the evaluation period, by loan the performance context of the financial opts not to have such loans considered, type, along with a discussion with bank institution when evaluating its then the Agencies should not require management to understand the bank’s the institution to produce data on those business focus. As a result, examiners performance related to home mortgage loans for CRA evaluation. A community already may include or exclude home lending, including home equity organization suggested that the Agencies improvement loans in evaluating bank products. The Agencies emphasize that should have examiners evaluate performance if they are not a major performance context may include consumer lending, including home product line, or primary product, as additional information to explain how improvement lending not secured by a applicable. various loan products may impact bank dwelling, during CRA exams when such ‘‘Second, the Agencies do not believe performance. The Agencies believe that lending constitutes a ‘‘significant that creating a fifth, ‘‘home the commenters’ concerns can be amount’’ of the bank’s business rather improvement,’’ category of consumer addressed effectively through the than a ‘‘substantial majority,’’ as is loans is warranted given the flexibility supervisory process. Accordingly, the currently required under 12 CFR __ already provided through the Agencies are finalizing the revised .22(a)(1). Another trade association supervisory process. Additionally, definition of ‘‘home mortgage loan’’ as encouraged the Agencies to create a fifth creating a separate ‘‘home improvement proposed. category under the ‘‘consumer loan’’ loan’’ category of consumer loans could ‘‘As we stated in the proposed rule, definition to take the place of the ‘‘home result in additional burden for many the Agencies have relied on the scope of equity loan’’ category, which the financial institutions, particularly HMDA-reportable transactions to define Agencies proposed to remove as a result community banks, through the separate ‘‘home mortgage loan’’ in the CRA of home equity loans and home equity tracking of loans and could result in a regulations, in order to reduce burden lines of credit being included in the double counting of loans, under HMDA on institutions by avoiding unnecessary amended definition of ‘‘home mortgage and CRA, for home improvement costs and confusion, and have made loan.’’ purposes that are secured by a dwelling. conforming changes when the scope of ‘‘The Agencies have considered the For these reasons, the Agencies opted to HMDA-reportable transactions has comments and are finalizing the consider home improvement loans not changed, provided that the revised definition of ‘‘consumer lending’’ as secured by a dwelling included in terms continue to meet the statutory proposed. First, the commenters’ evaluating performance under the large purposes of the CRA. The Agencies are suggestions to defer always to the bank lending test under the existing aware that the Bureau announced its financial institution on the inclusion of consumer loan categories of ‘‘other intention to open a rulemaking to unsecured home improvement loans secured’’ and ‘‘other unsecured,’’ rather reconsider various aspects of the 2015 and to change ‘‘substantial majority’’ to than to create a new category of HMDA Rule in its December 21, 2017, ‘‘significant amount’’ would require a consumer loans. Accordingly, the Public Statement on Home Mortgage change to the CRA regulations beyond Agencies are finalizing the definition of jstallworth on DSKBBY8HB2PROD with RULES Disclosure Act Compliance, which is the scope of the proposed amendments. ‘‘consumer lending’’ as proposed. We available at https:// Specifically, consumer loans are note, however, that although the www.consumerfinance.gov/about-us/ considered in the large bank lending test Agencies are not adopting changes newsroom/cfpb-issues-public-statement- under 12 CFR __.22(a)(1) under two pursuant to the commenters’ home-mortgage-disclosure-act- circumstances: ‘‘if the bank has recommendations, the Agencies compliance/. The Agencies will collected and maintained [data], as regularly review examination policies, continue to review and monitor any required under 12 CFR __.42(c)(1), and procedures, guidance, and the CRA VerDate Sep<11>2014 14:31 Apr 09, 2018 Jkt 244001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\10APR1.SGM 10APR1

Federal Register / Vol. 83, No. 69 / Tuesday, April 10, 2018 / Rules and Regulations 15301 regulations to better serve the goals of to the state of technology envisioned in DC, between 9 a.m. and 5 p.m., Monday the CRA.’’ the airworthiness standards for through Friday, except Federal holidays. 4. On page 55736, the first full transport category airplanes. These FOR FURTHER INFORMATION CONTACT: Greg paragraph in the third column is revised design features are systems that affect Schneider, Airframe and Cabin Safety to read as follows: structural performance, either directly Section, AIR–675, Transport Standards ‘‘The Agencies received two or as a result of a failure or malfunction. Branch, Policy and Innovation Division, comments on the proposed changes to The influence of these systems and their Aircraft Certification Service, Federal the CRA public file content failure conditions must be taken into Aviation Administration, 2200 South requirements. One trade association account when showing compliance with 216th Street, Des Moines, Washington supported the Agencies’ efforts to the FAA’s requirements. The applicable 98198; telephone 206–231–3213; email streamline the public file content airworthiness regulations do not contain Greg.Schneider@faa.gov. requirements to make it consistent with adequate or appropriate safety standards SUPPLEMENTARY INFORMATION: The the new HMDA public disclosure for these design features. These special requirements. Another trade association substance of these special conditions conditions contain the additional safety previously has been published in the suggested that because financial standards that the Administrator institutions will no longer need to Federal Register for public comment. considers necessary to establish a level These special conditions have been provide HMDA Loan Application of safety equivalent to that established Registers to the public, financial derived without substantive change by the existing airworthiness standards. from those previously issued. It is institutions should also not be required DATES: This action is effective on to produce their CRA Loan Application unlikely that prior public comment Textron Aviation Inc. on April 10, 2018. would result in a significant change Registers (CRA LARs) so as to reduce Send comments on or before May 25, regulatory burden. Changing the from the substance contained herein. 2018. Therefore, the FAA has determined that requirements in the CRA public file with respect to CRA LARs would ADDRESSES: Send comments identified prior public notice and comment are require a regulation change that was not by Docket No. FAA–2018–0293 using unnecessary, and finds that, for the proposed by the Agencies and did not any of the following methods: same reason, good cause exists for have the benefit of notice and comment. • Federal eRegulations Portal: Go to adopting these special conditions upon Accordingly, the Agencies are adopting http://www.regulations.gov/ and follow publication in the Federal Register. the revisions as proposed.’’ the online instructions for sending your Comments Invited Dated: March 30, 2018. comments electronically. We invite interested people to take Joseph M. Otting, • Mail: Send comments to Docket part in this rulemaking by sending Comptroller of the Currency. Operations, M–30, U.S. Department of written comments, data, or views. The By order of the Board of Governors of the Transportation (DOT), 1200 New Jersey most helpful comments reference a Federal Reserve System, March 13, 2018. Avenue SE, Room W12–140, West specific portion of the special Ann E. Misback, Building Ground Floor, Washington, conditions, explain the reason for any DC, 20590–0001. recommended change, and include Secretary of the Board. • Hand Delivery or Courier: Take supporting data. Dated at Washington, DC, this 12th of March, 2018. comments to Docket Operations in We will consider all comments we Room W12–140 of the West Building receive by the closing date for By order of the Board of Directors. Ground Floor at 1200 New Jersey comments. We may change these special Federal Deposit Insurance Corporation. Avenue SE, Washington, DC, between 9 conditions based on the comments we Robert E. Feldman, a.m. and 5 p.m., Monday through Executive Secretary. receive. Friday, except Federal holidays. [FR Doc. 2018–06963 Filed 4–9–18; 8:45 am] • Fax: Fax comments to Docket Background BILLING CODE 4810–33; 6210–01; 6714–01–P Operations at 202–493–2251. On November 20, 2014, Textron Privacy: The FAA will post all applied for a type certificate for their comments it receives, without change, new Model 700 series airplanes. The DEPARTMENT OF TRANSPORTATION to http://www.regulations.gov/, Textron Model 700 series airplanes are including any personal information the transport-category, twin turbofan- Federal Aviation Administration commenter provides. Using the search powered airplanes with standard seating function of the docket website, anyone provisions for up to 12 passengers and 14 CFR Part 25 can find and read the electronic form of 2 crewmembers, and a maximum takeoff [Docket No. FAA–2018–0293; Special all comments received into any FAA weight of 39,500 lbs. Conditions No. 25–723–SC] docket, including the name of the individual sending the comment (or Type Certification Basis Special Conditions: Textron Aviation signing the comment for an association, Under the provisions of title 14, Code Inc. Model 700 Series Airplanes; business, labor union, etc.). DOT’s of Federal Regulations (14 CFR) 21.17, Interaction of Systems and Structures complete Privacy Act Statement can be Textron must show that the Model 700 AGENCY: Federal Aviation found in the Federal Register published series airplanes meet the applicable Administration (FAA), DOT. on April 11, 2000 (65 FR 19477–19478). provisions of part 25, as amended by ACTION: Final special conditions; request Docket: Background documents or amendments 25–1 through 25–141. jstallworth on DSKBBY8HB2PROD with RULES for comments. comments received may be read at If the Administrator finds that the http://www.regulations.gov/ at any time. applicable airworthiness regulations SUMMARY: These special conditions are Follow the online instructions for (i.e., 14 CFR part 25) do not contain issued for the Textron Aviation Inc. accessing the docket or go to Docket adequate or appropriate safety standards (Textron) Model 700 series airplanes. Operations in Room W12–140 of the for the Textron Model 700 series These airplanes will have novel or West Building Ground Floor at 1200 airplanes because of novel or unusual unusual design features when compared New Jersey Avenue SE, Washington, design features, special conditions are VerDate Sep<11>2014 14:31 Apr 09, 2018 Jkt 244001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\10APR1.SGM 10APR1


Document Created: 2018-04-09 23:51:49
Document Modified: 2018-04-09 23:51:49
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; correction.
DatesEffective April 10, 2018 and applicable beginning January 1, 2018.
ContactOCC: Emily R. Boyes, Attorney, Community and Consumer Law Division, (202) 649-6350; Allison Hester-Haddad, Counsel, Legislative and Regulatory Activities Division, (202) 649-5490; for persons who are deaf or hearing impaired, TTY, (202) 649-5597; or Vonda J. Eanes, Director for CRA and Fair Lending Policy, Compliance Risk Policy Division, (202) 649-5470, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219.
FR Citation83 FR 15298 
RIN Number1557-AE15, 7100-AE84 and 3064-AE58
CFR Citation12 CFR 195
12 CFR 228
12 CFR 25
12 CFR 345
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