Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 513 

7 5 U.S.C. 551 et seq. 

8 5 U.S.C. 553(b)(3)(A). 

9 5 U.S.C. 553(d). 

10 5 U.S.C. 603, 604. 

11 44 U.S.C. 3506; see 5 CFR part 1320, appendix 

A.1. 

developments and assess their implications 

for the economic outlook. 

In view of realized and expected labor 

market conditions and inflation, the 

Committee decided to raise the target range 

for the federal funds rate to 21⁄4 to 21⁄2

percent. 

A Federal Reserve Implementation 

note released simultaneously with the 

announcement stated: 

The Board of Governors of the Federal 

Reserve System voted unanimously to raise 

the interest rate paid on required and excess 

reserve balances to 2.40 percent, effective 

December 20, 2018. Setting the interest rate 

paid on required and excess reserve balances 

10 basis points below the top of the target 

range for the federal funds rate is intended 

to foster trading in the federal funds market 

at rates well within the FOMC’s target range. 

As a result, the Board is amending 

§ 204.10(b)(5) of Regulation D to change 

IORR to 2.40 percent and IOER to 2.40 

percent. 

III. Administrative Procedure Act 

In general, the Administrative 

Procedure Act (‘‘APA’’) 7 imposes three 

principal requirements when an agency 

promulgates legislative rules (rules 

made pursuant to congressionally 

delegated authority): (1) Publication 

with adequate notice of a proposed rule; 

(2) followed by a meaningful 

opportunity for the public to comment 

on the rule’s content; and (3) 

publication of the final rule not less 

than 30 days before its effective date. 

The APA provides that notice and 

comment procedures do not apply if the 

agency for good cause finds them to be 

‘‘unnecessary, impracticable, or contrary 

to the public interest.’’ 8 Section 553(d) 

of the APA also provides that 

publication at least 30 days prior to a 

rule’s effective date is not required for 

(1) a substantive rule which grants or 

recognizes an exemption or relieves a 

restriction; (2) interpretive rules and 

statements of policy; or (3) a rule for 

which the agency finds good cause for 

shortened notice and publishes its 

reasoning with the rule.9

The Board has determined that good 

cause exists for finding that the notice, 

public comment, and delayed effective 

date provisions of the APA are 

unnecessary, impracticable, or contrary 

to the public interest with respect to 

these final amendments to Regulation D. 

The rate increases for IORR and IOER 

that are reflected in the final 

amendments to Regulation D were made 

with a view towards accommodating 

commerce and business and with regard 

to their bearing upon the general credit 

situation of the country. Notice and 

public comment would prevent the 

Board’s action from being effective as 

promptly as necessary in the public 

interest and would not otherwise serve 

any useful purpose. Notice, public 

comment, and a delayed effective date 

would create uncertainty about the 

finality and effectiveness of the Board’s 

action and undermine the effectiveness 

of that action. Accordingly, the Board 

has determined that good cause exists to 

dispense with the notice, public 

comment, and delayed effective date 

procedures of the APA with respect to 

these final amendments to Regulation D. 

IV. Regulatory Flexibility Analysis 

The Regulatory Flexibility Act 

(‘‘RFA’’) does not apply to a rulemaking 

where a general notice of proposed 

rulemaking is not required.10 As noted 

previously, the Board has determined 

that it is unnecessary and contrary to 

the public interest to publish a general 

notice of proposed rulemaking for this 

final rule. Accordingly, the RFA’s 

requirements relating to an initial and 

final regulatory flexibility analysis do 

not apply. 

V. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act (‘‘PRA’’) of 1995,11 the 

Board reviewed the final rule under the 

authority delegated to the Board by the 

Office of Management and Budget. The 

final rule contains no requirements 

subject to the PRA. 

List of Subjects in 12 CFR Part 204 

Banks, Banking, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, the Board amends 12 CFR 

part 204 as follows: 

PART 204—RESERVE 

REQUIREMENTS OF DEPOSITORY 

INSTITUTIONS (REGULATION D) 

■ 1. The authority citation for part 204 

continues to read as follows: 

Authority: 12 U.S.C. 248(a), 248(c), 461, 

601, 611, and 3105. 

■ 2. Section 204.10 is amended by 

revising paragraph (b)(5) to read as 

follows: 

§ 204.10 Payment of interest on balances. 

* * * * * 

(b) * * * 

(5) The rates for IORR and IOER are: 

Rate 

(percent) 

IORR ..................................... 2.40 

IOER ..................................... 2.40 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, December 20, 2018. 

Ann Misback, 

Secretary of the Board. 

[FR Doc. 2018–28424 Filed 1–30–19; 8:45 am] 

BILLING CODE 6210–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1003 

RIN 3170–AA92 

Home Mortgage Disclosure 

(Regulation C) Adjustment to AssetSize Exemption Threshold 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official commentary. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

amending the official commentary that 

interprets the requirements of the 

Bureau’s Regulation C (Home Mortgage 

Disclosure) to reflect the asset-size 

exemption threshold for banks, savings 

associations, and credit unions based on 

the annual percentage change in the 

average of the Consumer Price Index for 

Urban Wage Earners and Clerical 

Workers (CPI–W). Based on the 2.6 

percent increase in the average of the 

CPI–W for the 12-month period ending 

in November 2018, the exemption 

threshold is adjusted to increase to $46 

million from $45 million. Therefore, 

banks, savings associations, and credit 

unions with assets of $46 million or less 

as of December 31, 2018, are exempt 

from collecting data in 2019. 

DATES: Effective date: This rule is 

effective January 31, 2019. 

Applicability date: This rule is 

applicable on January 1, 2019, 

consistent with relevant statutory or 

regulatory provisions. 

FOR FURTHER INFORMATION CONTACT: 

Monique Chenault, Paralegal Specialist, 

Office of Regulations, at (202) 435–7700. 

If you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 


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514 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 

1 12 U.S.C. 2801–2810. 

2 12 CFR part 1003. 

3 12 U.S.C. 2808(b). 

4 5 U.S.C. 553(b)(B). 

5 5 U.S.C. 553(d). 

6 5 U.S.C. 603(a), 604(a). 

7 44 U.S.C. 3506; 5 CFR part 1320. 

I. Background 

The Home Mortgage Disclosure Act of 

1975 (HMDA) 1 requires most mortgage 

lenders located in metropolitan areas to 

collect data about their housing related 

lending activity. Annually, lenders must 

report their data to the appropriate 

Federal agencies and make the data 

available to the public. The Bureau’s 

Regulation C2 implements HMDA. 

Prior to 1997, HMDA exempted 

certain depository institutions as 

defined in HMDA (i.e., banks, savings 

associations, and credit unions) with 

assets totaling $10 million or less as of 

the preceding year-end. In 1996, HMDA 

was amended to expand the asset-size 

exemption for these depository 

institutions.3 The amendment increased 

the dollar amount of the asset-size 

exemption threshold by requiring a onetime adjustment of the $10 million 

figure based on the percentage by which 

the CPI–W for 1996 exceeded the 

CPI–W for 1975, and it provided for 

annual adjustments thereafter based on 

the annual percentage increase in the 

CPI–W, rounded to the nearest multiple 

of $1 million. 

The definition of ‘‘financial 

institution’’ in § 1003.2(g) provides that 

the Bureau will adjust the asset 

threshold based on the year-to-year 

change in the average of the CPI–W, not 

seasonally adjusted, for each 12-month 

period ending in November, rounded to 

the nearest $1 million. For 2018, the 

threshold was $45 million. During the 

12-month period ending in November 

2018, the average of the CPI–W 

increased by 2.6 percent. As a result, the 

exemption threshold is increased to $46 

million for 2019. Thus, banks, savings 

associations, and credit unions with 

assets of $46 million or less as of 

December 31, 2018, are exempt from 

collecting data in 2019. An institution’s 

exemption from collecting data in 2019 

does not affect its responsibility to 

report data it was required to collect in 

2018. 

II. Procedural Requirements 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

Bureau finds that notice and public 

comment are impracticable, 

unnecessary, or contrary to the public 

interest.4 Pursuant to this final rule, 

comment 2(g)–2 in Regulation C, 

supplement I, is amended to update the 

exemption threshold. The amendment 

in this final rule is technical and nondiscretionary, and it merely applies the 

formula established by Regulation C for 

determining any adjustments to the 

exemption threshold. For these reasons, 

the Bureau has determined that 

publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

Therefore, the amendment is adopted in 

final form. 

Section 553(d) of the APA generally 

requires publication of a final rule not 

less than 30 days before its effective 

date, except (1) a substantive rule which 

grants or recognizes an exemption or 

relieves a restriction; (2) interpretive 

rules and statements of policy; or (3) as 

otherwise provided by the agency for 

good cause found and published with 

the rule.5 At a minimum, the Bureau 

believes the amendments fall under the 

third exception to section 553(d). The 

Bureau finds that there is good cause to 

make the amendments effective on 

January 31, 2019. The amendment in 

this final rule is technical and nondiscretionary, and it applies the method 

previously established in the agency’s 

regulations for determining adjustments 

to the threshold. 

B. Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required, the Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis.6

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 7, the agency 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Bureau 

will submit a report containing this rule 

and other required information to the 

United States Senate, the United States 

House of Representatives, and the 

Comptroller General of the United 

States prior to the rule taking effect. The 

Office of Information and Regulatory 

Affairs (OIRA) has designated this rule 

as not a ‘‘major rule’’ as defined by 5 

U.S.C. 804(2). 

List of Subjects in 12 CFR Part 1003 

Banking, Banks, Credit unions, 

Mortgages, National banks, Reporting 

and recordkeeping requirements, 

Savings associations. 

Authority and Issuance 

For the reasons set forth above, the 

Bureau amends Regulation C, 12 CFR 

part 1003, as set forth below: 

PART 1003—HOME MORTGAGE 

DISCLOSURE (REGULATION C) 

■ 1. The authority citation for part 1003 

continues to read as follows: 

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

5512, 5581. 

■ 2. In supplement I to part 1003, under 

Section 1003.2—Definitions, 2(g) 

Financial Institution is revised to read 

as follows: 

Supplement I to Part 1003—Official 

Interpretations 

* * * * * 

Section 1003.2—Definitions 

* * * * * 

2(g) Financial Institution. 

1. Preceding calendar year and preceding 

December 31. The definition of financial 

institution refers both to the preceding 

calendar year and the preceding December 

31. These terms refer to the calendar year and 

the December 31 preceding the current 

calendar year. For example, in 2019, the 

preceding calendar year is 2018 and the 

preceding December 31 is December 31, 

2018. Accordingly, in 2019, Financial 

Institution A satisfies the asset-size threshold 

described in § 1003.2(g)(1)(i) if its assets 

exceeded the threshold specified in comment 

2(g)–2 on December 31, 2018. Likewise, in 

2020, Financial Institution A does not meet 

the loan-volume test described in 

§ 1003.2(g)(1)(v)(A) if it originated fewer than 

25 closed-end mortgage loans during either 

2018 or 2019. 

2. Adjustment of exemption threshold for 

banks, savings associations, and credit 

unions. For data collection in 2019, the assetsize exemption threshold is $46 million. 

Banks, savings associations, and credit 

unions with assets at or below $46 million 

as of December 31, 2018, are exempt from 

collecting data for 2019. 

3. Merger or acquisition—coverage of 

surviving or newly formed institution. After 

a merger or acquisition, the surviving or 

newly formed institution is a financial 

institution under § 1003.2(g) if it, considering 

the combined assets, location, and lending 

activity of the surviving or newly formed 

institution and the merged or acquired 

institutions or acquired branches, satisfies 

the criteria included in § 1003.2(g). For 

example, A and B merge. The surviving or 

newly formed institution meets the loan 

threshold described in § 1003.2(g)(1)(v)(B) if 

the surviving or newly formed institution, A, 

and B originated a combined total of at least 

500 open-end lines of credit in each of the 

two preceding calendar years. Likewise, the 

surviving or newly formed institution meets 

the asset-size threshold in § 1003.2(g)(1)(i) if 

its assets and the combined assets of A and 


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Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 515 

1 15 U.S.C. 1681g. 

2 15 U.S.C. 1681j(a). 

3 15 U.S.C. 1681j(b)–(d). The maximum allowable 

charge announced by the Bureau does not apply to 

requests made under Section 612(a)–(d) of the 

FCRA. The charge does apply when a consumer 

who orders a file disclosure has already received a 

free annual file disclosure and does not otherwise 

qualify for an additional free file disclosure. 

4 15 U.S.C. 1681j(f)(1)(A). 

B on December 31 of the preceding calendar 

year exceeded the threshold described in 

§ 1003.2(g)(1)(i). Comment 2(g)–4 discusses a 

financial institution’s responsibilities during 

the calendar year of a merger. 

4. Merger or acquisition—coverage for 

calendar year of merger or acquisition. The 

scenarios described below illustrate a 

financial institution’s responsibilities for the 

calendar year of a merger or acquisition. For 

purposes of these illustrations, a ‘‘covered 

institution’’ means a financial institution, as 

defined in § 1003.2(g), that is not exempt 

from reporting under § 1003.3(a), and ‘‘an 

institution that is not covered’’ means either 

an institution that is not a financial 

institution, as defined in § 1003.2(g), or an 

institution that is exempt from reporting 

under § 1003.3(a). 

i. Two institutions that are not covered 

merge. The surviving or newly formed 

institution meets all of the requirements 

necessary to be a covered institution. No data 

collection is required for the calendar year of 

the merger (even though the merger creates 

an institution that meets all of the 

requirements necessary to be a covered 

institution). When a branch office of an 

institution that is not covered is acquired by 

another institution that is not covered, and 

the acquisition results in a covered 

institution, no data collection is required for 

the calendar year of the acquisition. 

ii. A covered institution and an institution 

that is not covered merge. The covered 

institution is the surviving institution, or a 

new covered institution is formed. For the 

calendar year of the merger, data collection 

is required for covered loans and 

applications handled in the offices of the 

merged institution that was previously 

covered and is optional for covered loans and 

applications handled in offices of the merged 

institution that was previously not covered. 

When a covered institution acquires a branch 

office of an institution that is not covered, 

data collection is optional for covered loans 

and applications handled by the acquired 

branch office for the calendar year of the 

acquisition. 

iii. A covered institution and an institution 

that is not covered merge. The institution 

that is not covered is the surviving 

institution, or a new institution that is not 

covered is formed. For the calendar year of 

the merger, data collection is required for 

covered loans and applications handled in 

offices of the previously covered institution 

that took place prior to the merger. After the 

merger date, data collection is optional for 

covered loans and applications handled in 

the offices of the institution that was 

previously covered. When an institution 

remains not covered after acquiring a branch 

office of a covered institution, data collection 

is required for transactions of the acquired 

branch office that take place prior to the 

acquisition. Data collection by the acquired 

branch office is optional for transactions 

taking place in the remainder of the calendar 

year after the acquisition. 

iv. Two covered institutions merge. The 

surviving or newly formed institution is a 

covered institution. Data collection is 

required for the entire calendar year of the 

merger. The surviving or newly formed 

institution files either a consolidated 

submission or separate submissions for that 

calendar year. When a covered institution 

acquires a branch office of a covered 

institution, data collection is required for the 

entire calendar year of the merger. Data for 

the acquired branch office may be submitted 

by either institution. 

5. Originations. Whether an institution is a 

financial institution depends in part on 

whether the institution originated at least 25 

closed-end mortgage loans in each of the two 

preceding calendar years or at least 500 openend lines of credit in each of the two 

preceding calendar years. Comments 4(a)–2 

through –4 discuss whether activities with 

respect to a particular closed-end mortgage 

loan or open-end line of credit constitute an 

origination for purposes of § 1003.2(g). 

6. Branches of foreign banks—treated as 

banks. A Federal branch or a State-licensed 

or insured branch of a foreign bank that 

meets the definition of a ‘‘bank’’ under 

section 3(a)(1) of the Federal Deposit 

Insurance Act (12 U.S.C. 1813(a)) is a bank 

for the purposes of § 1003.2(g). 

7. Branches and offices of foreign banks 

and other entities—treated as nondepository 

financial institutions. A Federal agency, 

State-licensed agency, State-licensed 

uninsured branch of a foreign bank, 

commercial lending company owned or 

controlled by a foreign bank, or entity 

operating under section 25 or 25A of the 

Federal Reserve Act, 12 U.S.C. 601 and 611 

(Edge Act and agreement corporations) may 

not meet the definition of ‘‘bank’’ under the 

Federal Deposit Insurance Act and may 

thereby fail to satisfy the definition of a 

depository financial institution under 

§ 1003.2(g)(1). An entity is nonetheless a 

financial institution if it meets the definition 

of nondepository financial institution under 

§ 1003.2(g)(2). 

* * * * * 

Dated: December 20, 2018. 

Kathleen Kraninger, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2018–28373 Filed 1–29–19; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1022 

RIN 3170–AA94 

Fair Credit Reporting Act Disclosures 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

amending Regulation V, which 

implements the Fair Credit Reporting 

Act (FCRA), to add a section 

establishing a maximum allowable 

charge for disclosures by a consumer 

reporting agency to a consumer 

pursuant to FCRA section 609. The 

Bureau is also amending Regulation V to 

add an appendix setting forth the 

statutory requirements for determining 

the maximum allowable charge; 

announcing the maximum charge for 

2019; and preserving a list of historical 

maximum allowable charges. 

Historically, the Bureau has published 

these FCRA annual adjustments as a 

notice. The Bureau is now codifying 

those notices and adding a provision to 

Regulation V to track the FCRA’s 

provisions concerning the annual 

maximum allowable charge. 

DATES: Effective date: This rule is 

effective January 31, 2019. 

Applicability date: This rule is 

applicable on January 1, 2019, 

consistent with relevant statutory 

provisions. 

FOR FURTHER INFORMATION CONTACT: Seth 

Caffrey, Senior Counsel; or Monique 

Chenault, Paralegal Specialist at (202) 

435–7700 or https://

reginquiries.consumerfinance.gov. If 

you require this document in an 

alternative electronic format, please 

contact CFPB_Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Under section 609 of the FCRA, a 

consumer reporting agency must, upon 

a consumer’s request, disclose to the 

consumer information in the consumer’s 

file.1 Section 612(a) of the FCRA gives 

consumers the right to a free file 

disclosure upon request once every 12 

months from the nationwide consumer 

reporting agencies and nationwide 

specialty consumer reporting agencies.2

Section 612 of the FCRA also gives 

consumers the right to a free file 

disclosure under certain other, specified 

circumstances.3 Where the consumer is 

not entitled to a free file disclosure, 

section 612(f)(1)(A) of the FCRA 

provides that a consumer reporting 

agency may impose a reasonable charge 

on a consumer for making a file 

disclosure. Section 612(f)(1)(A) of the 

FCRA provides that the charge for such 

a disclosure shall not exceed $8.00 and 

shall be indicated to the consumer 

before making the file disclosure.4

Section 612(f)(2) of the FCRA also 

states that the $8.00 maximum amount 

shall increase on January 1 of each year, 


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