83 FR 39323 - Repeal of Federal Housing Finance Board Regulations; Technical Amendments to FHFA Regulations
FEDERAL HOUSING FINANCE BOARD
FEDERAL HOUSING FINANCE AGENCY Federal Register Volume 83, Issue 154 (August 9, 2018)
FEDERAL HOUSING FINANCE AGENCY
Federal Register Volume 83, Issue 154 (August 9, 2018)
| Page Range | 39323-39326 | |
| FR Document | 2018-16972 |
[Federal Register Volume 83, Number 154 (Thursday, August 9, 2018)] [Rules and Regulations] [Pages 39323-39326] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-16972] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Rules and Regulations [[Page 39323]] FEDERAL HOUSING FINANCE BOARD 12 CFR Parts 900, 906, and 956 Through 999 FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1200, 1206, 1223, and 1261 RIN 2590-AA91 Repeal of Federal Housing Finance Board Regulations; Technical Amendments to FHFA Regulations AGENCY: Federal Housing Finance Agency; Federal Housing Finance Board. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Housing Finance Agency (FHFA) is repealing two parts of the Federal Housing Finance Board (Finance Board) regulations, which define terms used in Finance Board regulations, and which describe the process by which the Finance Board conducted its monthly interest rate survey (MIRS). The repealed definitions are either obsolete or duplicate definitions that FHFA has previously adopted. The regulation relating to the MIRS has become outdated because it does not accurately describe the manner in which FHFA currently conducts the survey. Although FHFA intends to continue to conduct the MIRS in the same manner as it is doing presently, there is no need to carry over this provision into its own regulations. This final rule also repeals a number of subchapters of the Finance Board regulations that it had previously reserved, but which no longer serve any purpose because they include no regulatory text, corrects inaccurate cross-references in regulations described in this rulemaking, and amends a table to update information relating to information collections under the Paperwork Reduction Act. DATES: This rule is effective on September 10, 2018. FOR FURTHER INFORMATION CONTACT: Vickie R. Olafson, Assistant General Counsel, [email protected], (202) 649-3025 (this is not a toll- free number), Federal Housing Finance Agency, 400 Seventh Street SW, Washington, DC 20219. The telephone number for the Telecommunications Device for the Deaf is (800) 877-8339. SUPPLEMENTARY INFORMATION: I. Background and Analysis Effective July 30, 2008, the Housing and Economic Recovery Act of 2008 (HERA) \1\ created FHFA as a new independent agency of the Federal Government, and transferred to FHFA the supervisory and oversight responsibilities of the Finance Board over the Federal Home Loan Banks (Banks), the oversight responsibilities of the Office of Federal Housing Enterprise Oversight (OFHEO) over the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (the Enterprises), and certain functions of the Department of Housing and Urban Development.\2\ Under section 1313(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act), FHFA is responsible for ensuring that the Banks and the Enterprises operate in a safe and sound manner, including that they maintain adequate capital and internal controls, that their activities foster liquid, efficient, competitive and resilient national housing finance markets, and that they carry out their public policy missions through authorized activities.\3\ The Banks and the Enterprises remain subject to, and continue to operate under, regulations promulgated by the Finance Board and by OFHEO and HUD, respectively, until such regulations are superseded by regulations issued by FHFA.\4\ The Finance Board regulations that are the subject of this rulemaking have remained in effect pursuant to that authority. --------------------------------------------------------------------------- \1\ HERA, Public Law 110-289, 122 Stat. 2654. \2\ See id. at section 1101, 122 Stat. 2661-62 (codified at 12 U.S.C. 4511, 4511 note, and 4513). \3\ 12 U.S.C. 4513(a). \4\ 12 U.S.C. 4511 note. --------------------------------------------------------------------------- On April 3, 2018, FHFA published a notice of proposed rulemaking to repeal certain outdated Finance Board regulations.\5\ FHFA proposed to repeal definitions under the Finance Board regulations that are obsolete or that duplicate FHFA definitions, and to repeal an outdated Finance Board regulation that describes the process the Finance Board used to conduct the MIRS. FHFA also proposed to repeal subchapters of the Finance Board regulations that were reserved and no longer serve any regulatory purpose. The comment period ended on May 18, 2018. FHFA received no comments in response to any part of the proposed rulemaking, and thus is finalizing the amendments to the Finance Board regulations as proposed. --------------------------------------------------------------------------- \5\ Repeal of Federal Housing Finance Board Regulations, 83 FR 14205 (Apr. 3, 2018). --------------------------------------------------------------------------- A. Definitions--Finance Board Part 900 FHFA proposed repealing the Finance Board definitions located in Subchapter A, which consists of part 900 of the Finance Board regulations, and includes definitions of forty-two terms that had been used throughout the Finance Board regulations. In 2013 FHFA carried over into its own regulations (at part 1201) most of the Finance Board definitions, but did not repeal the Finance Board definitions at that time because a number of substantive Finance Board regulations that used those terms remained in effect.\6\ FHFA has now proposed repealing all of the definitions within part 900 of the Finance Board regulations because, since 2013, FHFA has relocated or repealed all of the substantive Finance Board regulations, other than those relating to Bank capital requirements, which are the subject of a separate rulemaking.\7\ The final rule is identical to the proposed rule on this topic. --------------------------------------------------------------------------- \6\ See Relocation of Regulations, 78 FR 2319 (Jan. 11, 2013). \7\ See Federal Home Loan Bank Capital Requirements, 82 FR 30776 (proposed July 3, 2017). As noted in the proposed rule, certain of those defined terms, such as ``capital plan,'' ``excess stock,'' and ``advance,'' are used within the Finance Board capital regulations at parts 930 and 932, which likely will remain in effect during an extended transition period to the new FHFA Bank capital regulations. 83 FR 14205, 14206. Each of those terms is well understood by the Banks and has been carried over into the FHFA definitions at part 1201 without substantive change, and to the extent any interpretive questions may arise with respect to parts 930 and 932 after the definitions in part 900 are repealed, the Banks may look to the identical definitions in part 1201 of the FHFA regulations to address those questions. Id. --------------------------------------------------------------------------- [[Page 39324]] B. Finance Board Part 906 FHFA proposed repealing subchapter B, consisting of part 906 of the Finance Board Regulations that contains reserved subparts A and C, and subpart B, Sec. 906.5. Section 906.5 describes the manner in which the Finance Board conducted the ``Monthly Survey of Rates and Terms on Conventional One-Family Non-farm Mortgage Loans,'' commonly referred to as the ``Monthly Interest Rate Survey'' or ``MIRS.'' The MIRS is a monthly survey of mortgage lenders that solicits information on the terms and conditions on all conventional, single-family, fully amortizing, purchase-money mortgage loans closed during the last five working days of the preceding month. It was originally conducted by the Federal Home Loan Bank Board (FHLBB), and was continued by the Finance Board, in accordance with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the legislation that abolished the FHLBB and established the Finance Board as its successor. FHFA also has continued to conduct the survey and publish the data tables monthly, as successor to the Finance Board. Historically, two housing finance benchmarks have been based on data obtained through the MIRS: (1) The ``national average one-family house price,'' which, between 1980 and 2008, Fannie Mae and Freddie Mac were statutorily required to use in making annual adjustments to the conforming loan limit; \8\ and (2) the Adjustable Rate Mortgage (ARM) Index, which at one time was widely used by lenders in determining the appropriate periodic interest rate adjustment on their ARM loans. --------------------------------------------------------------------------- \8\ The Housing and Community Development Act of 1980 tied the Fannie Mae and Freddie Mac conforming loan limits to MIRS. See Public Law 96-399, Title III, section 313(a), (b), 94 Stat. 1644-45 (Oct. 8, 1980). --------------------------------------------------------------------------- Adjustments in the conforming loan limits for Fannie Mae and Freddie Mac are no longer based on data collected through the MIRS. Some lenders, however, may still use FHFA's ARM Index, which is derived from MIRS data, as one factor in pricing mortgage loans that they originate. In addition, businesses, trade associations, and government agencies at both the federal and state level rely upon the MIRS data for various business and regulatory purposes. FHFA intends to continue conducting the MIRS and publishing the data results on its website monthly. Because the current MIRS regulation includes an outdated description of the manner in which the survey is conducted, however, and is not necessary in order to implement the statutory mandate that FHFA conduct the survey, FHFA has determined that the regulation is unnecessary.\9\ Given the absence of any comments on the proposed rule, the final rule is also identical to the proposed rule on this topic. --------------------------------------------------------------------------- \9\ See Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Public Law 101-73, Title IV, section 402(e), 103 Stat. 359-360 (Aug. 9, 1989), codified at 12 U.S.C. 1437 note (regarding the continuation of the ARM Index). --------------------------------------------------------------------------- C. Finance Board Parts 956-999 [Reserved] and Subchapters F-M [Reserved] The proposal also would have repealed subchapters F-M, consisting of parts 956-999 of title 12 of the Code of Federal Regulations (CFR), which are Finance Board provisions that are designated as ``[r]eserved.'' These reserved parts are currently the only items under subchapters F-M of chapter IX of title 12, and because they contain no substantive provisions there is nothing to revise and relocate to the FHFA regulations. Consequently, FHFA has determined that unless it affirmatively removes the reference to those parts as being reserved and removes subchapters F-M, those references and empty subchapters F-M would remain in the CFR after FHFA has removed or relocated all of the other substantive Finance Board regulations. Accordingly, in the interest of ensuring that all Finance Board regulations that will not be carried forward into the FHFA regulations are removed from the CFR, the final rule adopts the proposed provision to repeal without change. D. Other Amendments FHFA is also using this final rule as a vehicle to address six other matters, each of which is technical in nature, that FHFA had not included in the proposed rule. The Paperwork Reduction Act of 1995 (PRA) \10\ and the implementing regulations of the Office of Management and Budget (OMB) \11\ require FHFA to display a currently valid control number for each collection of information the Agency conducts or sponsors. To satisfy this requirement, Sec. 1200.4(b) of FHFA's regulations includes a table identifying each section of the regulations that contains an information collection requirement and showing, for each of those collections, the control number assigned by OMB and the expiration date of that control number. FHFA is using this final rule as a means to update the information contained in that table to reflect recent OMB actions and approvals. --------------------------------------------------------------------------- \10\ 44 U.S.C. 3501 et seq. \11\ 5 CFR part 1320. --------------------------------------------------------------------------- Separately, Sec. 1261.9(c) of FHFA's Federal Home Loan Bank directorship regulations includes an inaccurate cross-reference to a provision within FHFA's minority and women inclusion regulations. The regulation currently refers to 12 CFR 1207.21(b)(5), which FHFA relocated in 2017 to 12 CFR 1223.21(b)(7).\12\ The cross-referenced provision requires the regulated entities to have policies to encourage the consideration of diversity when nominating or soliciting nominations for positions on their boards of directors. FHFA is also using this final rule as a means to correct the cross reference within 12 CFR 1261.9(c). --------------------------------------------------------------------------- \12\ The relocation and redesignation occurred in two phases. In March 2017, FHFA redesignated the Minority and Women Inclusion (MWI) regulations that apply to the regulated entities from 12 CFR part 1207 to 12 CFR part 1223, as a result of which Sec. 1207.21(b)(5) became Sec. 1223.21(b)(5). See Minority and Women Outreach Program, 82 FR 14992, 14993 (Mar. 24, 2017). In July 2017, FHFA again amended the MWI regulations that apply to the regulated entities by, among other things, redesignating Sec. 1223.21(b)(5) as Sec. 1223.21(b)(7). See 82 FR 34388, 34395-96 (July 25, 2017). --------------------------------------------------------------------------- This final rule also corrects inaccurate cross-references that had not been updated in four other regulations, as follows. First, the reference to ``12 U.S.C. 3645'' in Sec. 1206.3(a)(3) is replaced with ``12 U.S.C. 4635.'' Second, the reference to ``Sec. 1223.21(b)(6)'' in Sec. 1223.3(b) is replaced with ``Sec. 1223.21(b)(9).'' Third, the reference to ``Sec. 1207.3(b)'' in Sec. 1223.21(b)(9) is replaced with ``Sec. 1223.3(b).'' Fourth, the reference to ``Sec. Sec. 1207.20 and 1207.21'' in Sec. 1223.23(b)(20) is replaced with ``Sec. Sec. 1223.20 and 1223.21.'' The Administrative Procedure Act (APA) provides that an agency may amend its regulations without going through a notice and comment rulemaking if it finds good cause that it would be ``impracticable, unnecessary, or contrary to the public interest.'' \13\ Each of the six amendments described above is technical in nature and does not present any issues on which public comment would be necessary. Moreover, it is consistent with the public interest for FHFA to correct inaccurate citations within its regulations and to ensure that it periodically updates the information pertaining to OMB control numbers and the expiration dates for its collections of information. Accordingly, FHFA finds that there is good cause for amending these two provisions without an [[Page 39325]] opportunity for prior notice and comment. --------------------------------------------------------------------------- \13\ 5 U.S.C. 553(b)(B). --------------------------------------------------------------------------- II. Considerations of Differences Between the Banks and the Enterprises Section 1313(f) of the Safety and Soundness Act requires the FHFA Director, when promulgating regulations ``of general applicability and future effect'' relating to the Banks, to consider the differences between the Banks and the Enterprises as they may relate 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.\14\ As was stated in the proposed rule, FHFA has determined that no such analysis is required in this case because the final rule would not impose any new obligations on the Bank or have any future effect on their rights and responsibilities. --------------------------------------------------------------------------- \14\ 12 U.S.C. 4513(f). --------------------------------------------------------------------------- III. Paperwork Reduction Act The PRA requires that FHFA consider the impact of paperwork and other information collection burdens imposed on the public.\15\ Under the PRA and OMB's implementing regulations, an agency may not collect or sponsor the collection of information, nor may it impose an information collection requirement unless it displays a currently valid control number assigned by OMB.\16\ The MIRS addressed by 12 CFR 906.5 is a collection of information that OMB has approved under control number 2590-0004, which is due to expire on September 30, 2020. --------------------------------------------------------------------------- \15\ See 44 U.S.C. 3507(a), (d). \16\ See 44 U.S.C. 3512(a); 5 CFR 1320.8(b)(3)(vi). --------------------------------------------------------------------------- Although the final rule removes the descriptive provision regarding the MIRS that now appears at 12 CFR 906.5, that removal does not change any aspect of the information collection; that is, FHFA will continue to conduct the survey in accordance with the terms of the existing PRA clearance. Therefore, FHFA has not submitted to OMB a request to approve a revision to control number 2590-0004. IV. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that a final regulation that has a significant economic impact on a substantial number of small entities, small businesses, or small organizations must include a regulatory flexibility analysis describing the regulation's impact on small entities. Such an analysis need not be undertaken if the agency has certified that the regulation will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). FHFA has considered the impact of this rulemaking and certifies that it will not have a significant economic impact on a substantial number of small entities because the amendments are entirely technical in nature. Even if the final rule were to have an economic impact, it would apply only to the regulated entities, which are not small entities for purposes of the Regulatory Flexibility Act. V. Congressional Review Act FHFA has determined that this regulatory action does not qualify as either a ``rule'' or a ``major rule'' under the Congressional Review Act. See 5 U.S.C. 804(2), (3). List of Subjects 12 CFR Part 900 Federal home loan banks, Office of finance, Regulated entity. 12 CFR Part 906 Conventional one-family non-farm mortgage loans, Government contracts, Minority businesses, Monthly interest rate survey, Mortgages, Reporting and recordkeeping requirements. 12 CFR Part 1200 Organization and functions (Government agencies), Reporting and recordkeeping requirements, Seals and insignia. 12 CFR Part 1206 Federal home loan banks, Reporting and recordkeeping requirements. 12 CFR Part 1223 Civil rights, Equal employment opportunity, Government contracts, Minority businesses. 12 CFR Part 1261 Banking, Banks, Conflicts of interest, Elections, Ethical conduct, Federal home loan banks, Financial disclosure, Reporting and recordkeeping requirements. Authority and Issuance Accordingly, for reasons stated in the preamble and under the authority of 12 U.S.C. 4511, 4512, 4513, and 4526, FHFA amends subchapters A, B, and F-M of chapter IX and subchapters A and D of chapter XII of the Code of Federal Regulations as follows: CHAPTER IX--FEDERAL HOUSING FINANCE BOARD SUBCHAPTER A--[REMOVED AND RESERVED] 0 1. Remove and reserve subchapter A, consisting of part 900. SUBCHAPTER B--[REMOVED AND RESERVED] 0 2. Remove and reserve subchapter B, consisting of part 906. SUBCHAPTERS F-M--[REMOVED] 0 3. Remove reserved subchapters F-M, consisting of reserved parts 956 through 999. CHAPTER XII--FEDERAL HOUSING FINANCE AGENCY SUBCHAPTER A--ORGANIZATION AND FUNCTIONS PART 1200--ORGANIZATION AND FUNCTIONS 0 4. The authority citation for part 1200 continues to read as follows: Authority: 5 U.S.C. 552, 12 U.S.C. 4512, 12 U.S.C. 4526, 44 U.S.C. 3506. 0 5. In Sec. 1200.4, revise the table in paragraph (b) to read as follows: Sec. 1200.4 OMB control numbers assigned under the Paperwork Reduction Act. * * * * * (b) * * * ------------------------------------------------------------------------ 12 CFR part or section where identified OMB control Expiration and described No. date ------------------------------------------------------------------------ 1222.22................................. 2590-0013 07/31/2018 1222.23................................. 2590-0013 07/31/2018 1222.24................................. 2590-0013 07/31/2018 1222.25................................. 2590-0013 07/31/2018 1222.26................................. 2590-0013 07/31/2018 1223.23................................. 2590-0014 07/31/2018 1261.7.................................. 2590-0006 02/28/2021 [[Page 39326]] 1261.12................................. 2590-0006 02/28/2021 1261.14................................. 2590-0006 02/28/2021 1263.2.................................. 2590-0003 03/31/2020 1263.4.................................. 2590-0003 03/31/2020 1263.5.................................. 2590-0003 03/31/2020 1263.6.................................. 2590-0003 03/31/2020 1263.7.................................. 2590-0003 03/31/2020 1263.8.................................. 2590-0003 03/31/2020 1263.9.................................. 2590-0003 03/31/2020 1263.11................................. 2590-0003 03/31/2020 1263.12................................. 2590-0003 03/31/2020 1263.13................................. 2590-0003 03/31/2020 1263.14................................. 2590-0003 03/31/2020 1263.15................................. 2590-0003 03/31/2020 1263.16................................. 2590-0003 03/31/2020 1263.17................................. 2590-0003 03/31/2020 1263.18................................. 2590-0003 03/31/2020 1263.19................................. 2590-0003 03/31/2020 1263.24................................. 2590-0003 03/31/2020 1263.26................................. 2590-0003 03/31/2020 1263.31................................. 2590-0003 03/31/2020 1264.4.................................. 2590-0001 12/31/2018 1264.5.................................. 2590-0001 12/31/2018 1264.6.................................. 2590-0001 12/31/2018 1266.17................................. 2590-0001 12/31/2018 1268.7.................................. 2590-0008 02/29/2016 1277.22................................. 2590-0002 04/30/2020 1277.28................................. 2590-0002 04/30/2020 1290.2.................................. 2590-0005 03/31/2020 1290.3.................................. 2590-0005 03/31/2020 1290.4.................................. 2590-0005 03/31/2020 1290.5.................................. 2590-0005 03/31/2020 1291.5.................................. 2590-0007 03/31/2020 1291.6.................................. 2590-0007 03/31/2020 1291.7.................................. 2590-0007 03/31/2020 1291.8.................................. 2590-0007 03/31/2020 1291.9.................................. 2590-0007 03/31/2020 ------------------------------------------------------------------------ PART 1206--ASSESSMENTS 0 6. The authority citation for part 1206 continues to read as follows: Authority: 12 U.S.C. 4516. Sec. 1206.3 [Amended] 0 7. Amend Sec. 1206.3(a)(3) by removing the reference ``12 U.S.C. 3645'' and adding in its place the reference ``12 U.S.C. 4635''. SUBCHAPTER B--ENTITY REGULATIONS PART 1223--MINORITY AND WOMEN INCLUSION 0 8. The authority citation for part 1223 continues to read as follows: Authority: 12 U.S.C. 4520 and 4526; 12 U.S.C. 1833e; E.O. 11478. Sec. 1223.3 [Amended] 0 9. Amend Sec. 1223.3(b) by removing the reference ``Sec. 1223.21(b)(6)'' and adding in its place the reference ``Sec. 1223.21(b)(9)''. Sec. 1223.21 [Amended] 0 10. Amend Sec. 1223.21(b)(9) by removing the reference ``Sec. 1207.3(b)'' and adding in its place the reference ``Sec. 1223.3(b)''. Sec. 1223.23 [Amended] 0 11. Amend Sec. 1223.23(b)(20) by removing the reference ``Sec. Sec. 1207.20 and 1207.21'' and adding in its place the reference ``Sec. Sec. 1223.20 and 1223.21''. SUBCHAPTER D--FEDERAL HOME LOAN BANKS PART 1261--FEDERAL HOME LOAN BANK DIRECTORS 0 12. The authority citation for part 1261 continues to read as follows: Authority: 12 U.S.C. 1426, 1427, 1432, 4511 and 4526. Sec. 1261.9 [Amended] 0 13. Amend Sec. 1261.9(c) introductory text by removing the reference ``Sec. 1207.21(b)(5)'' and adding in its place the reference ``Sec. 1223.21(b)(7)''. Dated: August 2, 2018. Melvin L. Watt, Director, Federal Housing Finance Agency. [FR Doc. 2018-16972 Filed 8-8-18; 8:45 am] BILLING CODE 8070-01-P
![39324 Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Rules and Regulations
B. Finance Board Part 906 which the survey is conducted, update the information contained in
FHFA proposed repealing subchapter however, and is not necessary in order that table to reflect recent OMB actions
B, consisting of part 906 of the Finance to implement the statutory mandate that and approvals.
Board Regulations that contains FHFA conduct the survey, FHFA has Separately, § 1261.9(c) of FHFA’s
reserved subparts A and C, and subpart determined that the regulation is Federal Home Loan Bank directorship
B, § 906.5. Section 906.5 describes the unnecessary.9 Given the absence of any regulations includes an inaccurate
manner in which the Finance Board comments on the proposed rule, the cross-reference to a provision within
conducted the ‘‘Monthly Survey of final rule is also identical to the FHFA’s minority and women inclusion
Rates and Terms on Conventional One- proposed rule on this topic. regulations. The regulation currently
Family Non-farm Mortgage Loans,’’ C. Finance Board Parts 956–999 refers to 12 CFR 1207.21(b)(5), which
commonly referred to as the ‘‘Monthly [Reserved] and Subchapters F–M FHFA relocated in 2017 to 12 CFR
Interest Rate Survey’’ or ‘‘MIRS.’’ The [Reserved] 1223.21(b)(7).12 The cross-referenced
MIRS is a monthly survey of mortgage provision requires the regulated entities
The proposal also would have to have policies to encourage the
lenders that solicits information on the repealed subchapters F–M, consisting of
terms and conditions on all consideration of diversity when
parts 956–999 of title 12 of the Code of
conventional, single-family, fully nominating or soliciting nominations for
Federal Regulations (CFR), which are
amortizing, purchase-money mortgage positions on their boards of directors.
Finance Board provisions that are
loans closed during the last five working FHFA is also using this final rule as a
designated as ‘‘[r]eserved.’’ These
days of the preceding month. It was means to correct the cross reference
reserved parts are currently the only
originally conducted by the Federal within 12 CFR 1261.9(c).
items under subchapters F–M of chapter
Home Loan Bank Board (FHLBB), and IX of title 12, and because they contain This final rule also corrects inaccurate
was continued by the Finance Board, in no substantive provisions there is cross-references that had not been
accordance with the Financial nothing to revise and relocate to the updated in four other regulations, as
Institutions Reform, Recovery, and FHFA regulations. Consequently, FHFA follows. First, the reference to ‘‘12
Enforcement Act of 1989, the legislation has determined that unless it U.S.C. 3645’’ in § 1206.3(a)(3) is
that abolished the FHLBB and affirmatively removes the reference to replaced with ‘‘12 U.S.C. 4635.’’
established the Finance Board as its those parts as being reserved and Second, the reference to
successor. FHFA also has continued to removes subchapters F–M, those ‘‘§ 1223.21(b)(6)’’ in § 1223.3(b) is
conduct the survey and publish the data references and empty subchapters F–M replaced with ‘‘§ 1223.21(b)(9).’’ Third,
tables monthly, as successor to the would remain in the CFR after FHFA the reference to ‘‘§ 1207.3(b)’’ in
Finance Board. has removed or relocated all of the other § 1223.21(b)(9) is replaced with
Historically, two housing finance substantive Finance Board regulations. ‘‘§ 1223.3(b).’’ Fourth, the reference to
benchmarks have been based on data Accordingly, in the interest of ensuring ‘‘§§ 1207.20 and 1207.21’’ in
obtained through the MIRS: (1) The that all Finance Board regulations that § 1223.23(b)(20) is replaced with
‘‘national average one-family house will not be carried forward into the ‘‘§§ 1223.20 and 1223.21.’’
price,’’ which, between 1980 and 2008, FHFA regulations are removed from the The Administrative Procedure Act
Fannie Mae and Freddie Mac were CFR, the final rule adopts the proposed (APA) provides that an agency may
statutorily required to use in making provision to repeal without change. amend its regulations without going
annual adjustments to the conforming through a notice and comment
loan limit; 8 and (2) the Adjustable Rate D. Other Amendments rulemaking if it finds good cause that it
Mortgage (ARM) Index, which at one FHFA is also using this final rule as would be ‘‘impracticable, unnecessary,
time was widely used by lenders in a vehicle to address six other matters, or contrary to the public interest.’’ 13
determining the appropriate periodic each of which is technical in nature, Each of the six amendments described
interest rate adjustment on their ARM that FHFA had not included in the above is technical in nature and does
loans. proposed rule. not present any issues on which public
Adjustments in the conforming loan The Paperwork Reduction Act of 1995 comment would be necessary.
limits for Fannie Mae and Freddie Mac (PRA) 10 and the implementing Moreover, it is consistent with the
are no longer based on data collected regulations of the Office of Management public interest for FHFA to correct
through the MIRS. Some lenders, and Budget (OMB) 11 require FHFA to inaccurate citations within its
however, may still use FHFA’s ARM display a currently valid control number regulations and to ensure that it
Index, which is derived from MIRS data, for each collection of information the periodically updates the information
as one factor in pricing mortgage loans Agency conducts or sponsors. To satisfy pertaining to OMB control numbers and
that they originate. In addition, this requirement, § 1200.4(b) of FHFA’s the expiration dates for its collections of
businesses, trade associations, and regulations includes a table identifying information. Accordingly, FHFA finds
government agencies at both the federal each section of the regulations that that there is good cause for amending
and state level rely upon the MIRS data contains an information collection these two provisions without an
for various business and regulatory requirement and showing, for each of
purposes. those collections, the control number 12 The relocation and redesignation occurred in
FHFA intends to continue conducting assigned by OMB and the expiration two phases. In March 2017, FHFA redesignated the
the MIRS and publishing the data date of that control number. FHFA is Minority and Women Inclusion (MWI) regulations
results on its website monthly. Because that apply to the regulated entities from 12 CFR part
using this final rule as a means to
sradovich on DSK3GMQ082PROD with RULES
1207 to 12 CFR part 1223, as a result of which
the current MIRS regulation includes an § 1207.21(b)(5) became § 1223.21(b)(5). See
outdated description of the manner in 9 See Financial Institutions Reform, Recovery,
Minority and Women Outreach Program, 82 FR
and Enforcement Act of 1989, Public Law 101–73, 14992, 14993 (Mar. 24, 2017). In July 2017, FHFA
8 The Housing and Community Development Act Title IV, section 402(e), 103 Stat. 359–360 (Aug. 9, again amended the MWI regulations that apply to
of 1980 tied the Fannie Mae and Freddie Mac 1989), codified at 12 U.S.C. 1437 note (regarding the the regulated entities by, among other things,
conforming loan limits to MIRS. See Public Law continuation of the ARM Index). redesignating § 1223.21(b)(5) as § 1223.21(b)(7). See
10 44 U.S.C. 3501 et seq. 82 FR 34388, 34395–96 (July 25, 2017).
96–399, Title III, section 313(a), (b), 94 Stat. 1644–
45 (Oct. 8, 1980). 11 5 CFR part 1320. 13 5 U.S.C. 553(b)(B).
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![Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Rules and Regulations 39325
opportunity for prior notice and economic impact on a substantial 12 CFR Part 1261
comment. number of small entities, small
businesses, or small organizations must Banking, Banks, Conflicts of interest,
II. Considerations of Differences Elections, Ethical conduct, Federal
include a regulatory flexibility analysis
Between the Banks and the Enterprises home loan banks, Financial disclosure,
describing the regulation’s impact on
Section 1313(f) of the Safety and small entities. Such an analysis need Reporting and recordkeeping
Soundness Act requires the FHFA not be undertaken if the agency has requirements.
Director, when promulgating regulations certified that the regulation will not
‘‘of general applicability and future Authority and Issuance
have a significant economic impact on
effect’’ relating to the Banks, to consider a substantial number of small entities. 5 Accordingly, for reasons stated in the
the differences between the Banks and U.S.C. 605(b). FHFA has considered the preamble and under the authority of 12
the Enterprises as they may relate to the impact of this rulemaking and certifies
Banks’ cooperative ownership structure, U.S.C. 4511, 4512, 4513, and 4526,
that it will not have a significant FHFA amends subchapters A, B, and F–
mission of providing liquidity to economic impact on a substantial
members, affordable housing and M of chapter IX and subchapters A and
number of small entities because the D of chapter XII of the Code of Federal
community development mission, amendments are entirely technical in
capital structure, and joint and several Regulations as follows:
nature. Even if the final rule were to
liability.14 As was stated in the have an economic impact, it would CHAPTER IX—FEDERAL HOUSING
proposed rule, FHFA has determined apply only to the regulated entities, FINANCE BOARD
that no such analysis is required in this which are not small entities for
case because the final rule would not SUBCHAPTER A—[REMOVED AND
purposes of the Regulatory Flexibility RESERVED]
impose any new obligations on the Bank Act.
or have any future effect on their rights ■ 1. Remove and reserve subchapter A,
and responsibilities. V. Congressional Review Act
consisting of part 900.
III. Paperwork Reduction Act FHFA has determined that this
regulatory action does not qualify as SUBCHAPTER B—[REMOVED AND
The PRA requires that FHFA consider RESERVED]
either a ‘‘rule’’ or a ‘‘major rule’’ under
the impact of paperwork and other
the Congressional Review Act. See 5 ■ 2. Remove and reserve subchapter B,
information collection burdens imposed
U.S.C. 804(2), (3). consisting of part 906.
on the public.15 Under the PRA and
OMB’s implementing regulations, an List of Subjects SUBCHAPTERS F–M—[REMOVED]
agency may not collect or sponsor the
collection of information, nor may it 12 CFR Part 900
■ 3. Remove reserved subchapters F–M,
impose an information collection Federal home loan banks, Office of consisting of reserved parts 956 through
requirement unless it displays a finance, Regulated entity. 999.
currently valid control number assigned
12 CFR Part 906 CHAPTER XII—FEDERAL HOUSING
by OMB.16 The MIRS addressed by 12
CFR 906.5 is a collection of information Conventional one-family non-farm FINANCE AGENCY
that OMB has approved under control mortgage loans, Government contracts, SUBCHAPTER A—ORGANIZATION AND
number 2590–0004, which is due to Minority businesses, Monthly interest FUNCTIONS
expire on September 30, 2020. rate survey, Mortgages, Reporting and
Although the final rule removes the recordkeeping requirements. PART 1200—ORGANIZATION AND
descriptive provision regarding the FUNCTIONS
12 CFR Part 1200
MIRS that now appears at 12 CFR 906.5,
that removal does not change any aspect Organization and functions ■ 4. The authority citation for part 1200
of the information collection; that is, (Government agencies), Reporting and continues to read as follows:
FHFA will continue to conduct the recordkeeping requirements, Seals and
survey in accordance with the terms of insignia. Authority: 5 U.S.C. 552, 12 U.S.C. 4512, 12
the existing PRA clearance. Therefore, U.S.C. 4526, 44 U.S.C. 3506.
12 CFR Part 1206
FHFA has not submitted to OMB a
request to approve a revision to control Federal home loan banks, Reporting ■ 5. In § 1200.4, revise the table in
number 2590–0004. and recordkeeping requirements. paragraph (b) to read as follows:
IV. Regulatory Flexibility Act 12 CFR Part 1223 § 1200.4 OMB control numbers assigned
under the Paperwork Reduction Act.
The Regulatory Flexibility Act (5 Civil rights, Equal employment
U.S.C. 601 et seq.) requires that a final opportunity, Government contracts, * * * * *
regulation that has a significant Minority businesses. (b) * * *
OMB Expiration
12 CFR part or section where identified and described control No. date
1222.22 .................................................................................................................................................................... 2590–0013 07/31/2018
1222.23 .................................................................................................................................................................... 2590–0013 07/31/2018
sradovich on DSK3GMQ082PROD with RULES
1222.24 .................................................................................................................................................................... 2590–0013 07/31/2018
1222.25 .................................................................................................................................................................... 2590–0013 07/31/2018
1222.26 .................................................................................................................................................................... 2590–0013 07/31/2018
1223.23 .................................................................................................................................................................... 2590–0014 07/31/2018
1261.7 ...................................................................................................................................................................... 2590–0006 02/28/2021
14 12 U.S.C. 4513(f). 15 See 44 U.S.C. 3507(a), (d). 16 See 44 U.S.C. 3512(a); 5 CFR 1320.8(b)(3)(vi).
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![39326 Federal Register / Vol. 83, No. 154 / Thursday, August 9, 2018 / Rules and Regulations
OMB Expiration
12 CFR part or section where identified and described control No. date
1261.12 .................................................................................................................................................................... 2590–0006 02/28/2021
1261.14 .................................................................................................................................................................... 2590–0006 02/28/2021
1263.2 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.4 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.5 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.6 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.7 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.8 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.9 ...................................................................................................................................................................... 2590–0003 03/31/2020
1263.11 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.12 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.13 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.14 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.15 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.16 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.17 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.18 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.19 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.24 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.26 .................................................................................................................................................................... 2590–0003 03/31/2020
1263.31 .................................................................................................................................................................... 2590–0003 03/31/2020
1264.4 ...................................................................................................................................................................... 2590–0001 12/31/2018
1264.5 ...................................................................................................................................................................... 2590–0001 12/31/2018
1264.6 ...................................................................................................................................................................... 2590–0001 12/31/2018
1266.17 .................................................................................................................................................................... 2590–0001 12/31/2018
1268.7 ...................................................................................................................................................................... 2590–0008 02/29/2016
1277.22 .................................................................................................................................................................... 2590–0002 04/30/2020
1277.28 .................................................................................................................................................................... 2590–0002 04/30/2020
1290.2 ...................................................................................................................................................................... 2590–0005 03/31/2020
1290.3 ...................................................................................................................................................................... 2590–0005 03/31/2020
1290.4 ...................................................................................................................................................................... 2590–0005 03/31/2020
1290.5 ...................................................................................................................................................................... 2590–0005 03/31/2020
1291.5 ...................................................................................................................................................................... 2590–0007 03/31/2020
1291.6 ...................................................................................................................................................................... 2590–0007 03/31/2020
1291.7 ...................................................................................................................................................................... 2590–0007 03/31/2020
1291.8 ...................................................................................................................................................................... 2590–0007 03/31/2020
1291.9 ...................................................................................................................................................................... 2590–0007 03/31/2020
PART 1206—ASSESSMENTS and adding in its place the reference DEPARTMENT OF TRANSPORTATION
‘‘§ 1223.3(b)’’.
■ 6. The authority citation for part 1206 Federal Aviation Administration
continues to read as follows: § 1223.23 [Amended]
Authority: 12 U.S.C. 4516. ■ 11. Amend § 1223.23(b)(20) by 14 CFR Part 39
removing the reference ‘‘§§ 1207.20 and [Docket No. FAA–2018–0165; Product
§ 1206.3 [Amended] 1207.21’’ and adding in its place the Identifier 2017–NM–122–AD; Amendment
■ 7. Amend § 1206.3(a)(3) by removing reference ‘‘§§ 1223.20 and 1223.21’’. 39–19342; AD 2018–16–02]
the reference ‘‘12 U.S.C. 3645’’ and SUBCHAPTER D—FEDERAL HOME LOAN
adding in its place the reference ‘‘12 RIN 2120–AA64
BANKS
U.S.C. 4635’’. Airworthiness Directives; Airbus SAS
SUBCHAPTER B—ENTITY REGULATIONS PART 1261—FEDERAL HOME LOAN Airplanes
BANK DIRECTORS
PART 1223—MINORITY AND WOMEN AGENCY: Federal Aviation
INCLUSION ■ 12. The authority citation for part Administration (FAA), Department of
1261 continues to read as follows: Transportation (DOT).
■ 8. The authority citation for part 1223 Authority: 12 U.S.C. 1426, 1427, 1432, ACTION: Final rule.
continues to read as follows: 4511 and 4526.
Authority: 12 U.S.C. 4520 and 4526; 12 SUMMARY: We are adopting a new
U.S.C. 1833e; E.O. 11478. § 1261.9 [Amended] airworthiness directive (AD) for all
■ 13. Amend § 1261.9(c) introductory Airbus SAS Model A318–111 and –112
§ 1223.3 [Amended] airplanes, Model A319–111, –112, –113,
text by removing the reference
■ 9. Amend § 1223.3(b) by removing the ‘‘§ 1207.21(b)(5)’’ and adding in its place –114, and –115 airplanes, Model A320–
sradovich on DSK3GMQ082PROD with RULES
reference ‘‘§ 1223.21(b)(6)’’ and adding the reference ‘‘§ 1223.21(b)(7)’’. 211, –212, –214, and –216 airplanes,
in its place the reference and Model A321–111, –112, –211, –212,
Dated: August 2, 2018. and –213 airplanes. This AD was
‘‘§ 1223.21(b)(9)’’.
Melvin L. Watt, prompted by a report of a production
§ 1223.21 [Amended] Director, Federal Housing Finance Agency. quality deficiency on the inner retainer
■ 10. Amend § 1223.21(b)(9) by [FR Doc. 2018–16972 Filed 8–8–18; 8:45 am] installed on link assemblies of the aft
removing the reference ‘‘§ 1207.3(b)’’ BILLING CODE 8070–01–P engine mount, which could result in
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Document Created: 2018-08-09 01:12:15
Document Modified: 2018-08-09 01:12:15
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective on September 10, 2018. | |
| Contact | Vickie R. Olafson, Assistant General Counsel, [email protected], (202) 649-3025 (this is not a toll- free number), Federal Housing Finance Agency, 400 Seventh Street SW, Washington, DC 20219. The telephone number for the Telecommunications Device for the Deaf is (800) 877-8339. | |
| FR Citation | 83 FR 39323 | |
| RIN Number | 2590-AA91 | |
| CFR Citation | 12
CFR
1200 12 CFR 1206 12 CFR 1223 12 CFR 1261 12 CFR 900 12 CFR 906 12 CFR 956Through 999 | |
| CFR Associated | Organization and Functions (government Agencies); Seals and Insignia; Civil Rights; Equal Employment Opportunity; Banking; Banks; Conflicts of Interest; Elections; Ethical Conduct; Financial Disclosure; Federal Home Loan Banks; Office of Finance; Regulated Entity; Conventional One-Family Non-Farm Mortgage Loans; Government Contracts; Minority Businesses; Monthly Interest Rate Survey; Mortgages and Reporting and Recordkeeping Requirements |
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