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.

Rules and Regulations Federal Register

83405 

Vol. 85, No. 246 

Tuesday, December 22, 2020 

1 85 FR 22010 (Apr. 21, 2020). 

2See https://www.nber.org/news/business-cycledating-committee-announcement-june-8-2020. 

3See Title IV of the Coronavirus Aid, Relief, and 

Economic Security Act, Public Law 116–136, 134 

Stat 281 (March 27, 2020). 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 701 

RIN 3133–AF15 

Temporary Regulatory Relief in 

Response to COVID–19–Extension 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule and temporary final 

rule; extension. 

SUMMARY: The NCUA Board (Board) is 

extending the effective date of its 

temporary final rule, which modified 

certain regulatory requirements to help 

ensure that federally insured credit 

unions (FICUs) remain operational and 

can properly conduct appropriate 

liquidity management to address 

economic conditions caused by the 

COVID–19 pandemic. Specifically, the 

temporary final rule issued by the Board 

in April 2020 temporarily raised the 

maximum aggregate amount of loan 

participations that a FICU may purchase 

from a single originating lender to the 

greater of $5,000,000 or 200 percent of 

the FICU’s net worth. The rule also 

temporarily suspended limitations on 

the eligible obligations that a Federal 

credit union (FCU) may purchase and 

hold. In addition, given physical 

distancing practices necessitated by 

COVID–19, the rule also tolled the 

required timeframes for the occupancy 

or disposition of properties not being 

used for FCU business or that have been 

abandoned. Unless extended, each of 

these temporary modifications will 

expire on December 31, 2020. Due to the 

continued impact of COVID–19, the 

Board has decided it is necessary to 

extend the effective period of these 

temporary modifications until December 

31, 2021. 

DATES: This rule is effective December 

22, 2020. The expiration date of the 

temporary final rule published on April 

21, 2020 (85 FR 22010), is extended 

through the close of December 31, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Policy and Analysis: Victoria Nahrwold, 

Office of Examination and Insurance, at 

(703) 548–2633; Legal: Thomas Zells 

and Ariel Pereira, Staff Attorneys, Office 

of General Counsel, at (703) 518–6540; 

or by mail at: National Credit Union 

Administration, 1775 Duke Street, 

Alexandria, Virginia 22314. 

SUPPLEMENTARY INFORMATION: 

I. Background 

II. Legal Authority 

III. Section-by-Section Analysis 

IV. Regulatory Procedures 

I. Background 

A. COVID–19 Pandemic 

The COVID–19 pandemic has created 

uncertainty for FICUs and their 

members. The Board continues to work 

with Federal and state regulatory 

agencies, in addition to FICUs, to assist 

FICUs in managing their operations and 

to facilitate continued assistance to 

credit union members and communities 

impacted by the novel coronavirus. In 

April 2020, as part of these ongoing 

efforts, the Board temporarily modified 

certain regulatory requirements to help 

ensure that FICUs remain operational 

and liquid during the COVID–19 

pandemic.1 The Board concluded that 

the amendments would provide FICUs 

necessary additional flexibility in a 

manner consistent with the NCUA’s 

responsibility to maintain the safety and 

soundness of the credit union system. 

The temporary amendments were to 

remain in place through the end of 

calendar year 2020 unless the Board 

took action to extend their effectiveness. 

The economic environment is a key 

determinant of credit union 

performance. After several years of solid 

growth, the economy entered a 

recession at the start of 2020.2 Given the 

potential depth of the recession, 

forecasters do not expect the economy 

to return to its pre-recession, late 2019 

peak before the end of 2021. A 

sustained, high level of unemployment 

could reduce loan demand, particularly 

for non-mortgage consumer loans, and 

affect credit quality. System-wide 

delinquency rates, which remained low 

through the second quarter, could begin 

to rise as the forbearance programs put 

in place during the spring come to an 

end.3 The economic impact of the 

COVID–19 pandemic may result in 

additional stress on credit union 

balance sheets, potentially requiring 

robust liquidity management over the 

course of 2021. While recovery in 

economic activity and labor markets is 

widely expected to continue, there is a 

high risk of a worse-than-expected 

outcome. This will depend on the path 

of COVID–19 infections. As COVID–19 

cases rise, another wave of temporary 

business closures and other measures 

that hinder economic activity may 

become necessary. As a result, the 

recovery could falter, leading to more 

job losses and higher unemployment. 

Weaker-than-expected economic 

conditions or another downturn would 

keep interest rates low or cause them to 

decline, particularly at the long end of 

the yield curve, and pose more 

significant challenges for the credit 

union system. The NCUA, like credit 

unions, needs to plan and prepare for a 

range of economic outcomes that could 

affect credit union performance. This 

includes ensuring a regulatory 

environment that provides FICUs with 

the flexibility necessary to cope with 

and address the range of potential 

COVID–19 impacts. 

Due to the continuing impact of the 

COVID–19 pandemic on FICUs and 

their members, the Board has 

determined that it is necessary to extend 

the effectiveness of these temporary 

provisions. The economic impact of the 

COVID–19 pandemic remains uncertain 

and is forecasted to extend through 

2021. As such, the temporary 

amendments will remain in place 

through the end of calendar year 2021 

unless the Board finds conditions 

warrant additional action to further 

extend their effectiveness. 

B. The Temporary Amendments 

In general, two of the temporary 

amendments expanded the authority of 

FICUs to purchase loans and 

participations in loans, thereby 

enhancing FICUs’ ability to meet 

liquidity needs. Specifically, the Board 

temporarily raised the maximum 

aggregate amount of loan participations 

that a FICU may purchase from a single 

originating lender to the greater of 

$5,000,000 or 200 percent of the credit 


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83406 Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Rules and Regulations 

4 12 U.S.C. 1751 et seq. 

5 12 U.S.C. 1766(a). 

6 12 U.S.C. 1789. 

7An example of a provision of the Act that 

provides the Board with specific rulemaking 

authority is section 207 (12 U.S.C. 1787), which is 

a specific grant of authority over share insurance 

coverage, conservatorships, and liquidations. 

8 12 U.S.C. 1757(5)(e). 

9 12 CFR 701.22(b)(5)(ii). 

10 78 FR 37946 (June 25, 2013). 

11 Id. at 37951. 12 12 U.S.C. 1757(13). 

union’s net worth. The Board also 

temporarily suspended certain 

limitations on the types of eligible 

obligations that a FICU may purchase 

and hold. The third regulatory 

amendment tolled the required 

timeframes for the occupancy or 

disposition of properties not being used 

for FCU business or that have been 

abandoned to address the impact of the 

physical distancing practices 

necessitated by the COVID–19 

pandemic. 

Section III of this preamble discusses 

the temporary regulatory amendments 

in greater detail and the rationale for the 

extension of their temporary effect. 

II. Legal Authority 

The Board is issuing this temporary 

final rule pursuant to its authority under 

the Act.4 The Act grants the Board a 

broad mandate to issue regulations 

governing both Federal credit unions 

and, more generally, all FICUs. For 

example, section 120 of the Act is a 

general grant of regulatory authority and 

authorizes the Board to prescribe rules 

and regulations for the administration of 

the Act.5 Section 209 of the Act is a 

plenary grant of regulatory authority to 

issue rules and regulations necessary or 

appropriate for the Board to carry out its 

role as share insurer for all FICUs.6

Other provisions of the Act confer 

specific rulemaking authority to address 

prescribed issues or circumstances.7

Accordingly, the Act grants the Board 

broad rulemaking authority to ensure 

that the credit union industry and the 

NCUSIF remain safe and sound. 

III. Section-by-Section Analysis 

A. Aggregate Limit on Loan 

Participation Purchases (Section 

701.22(b)(5)(ii)) 

Section 107(5)(E) of the FCU Act 

authorizes an FCU to engage in 

participation lending with other credit 

unions, credit union organizations, or 

financial organizations in accordance 

with written policies of the FCU’s board 

of directors.8 The NCUA has 

implemented this statutory provision in 

§ 701.22 of its regulations, which 

applies to all FICUs. The statute 

contains no limitation on the amount of 

participations that an FCU may 

purchase from any single originating 

lender. 

The regulation limits the aggregate 

amount of loan participations that a 

FICU may purchase from any one 

originating lender to the greater of 

$5,000,000 or 100 percent of the FICU’s 

net worth.9 As explained in the 

preamble to the final rule that 

established the limitation, the purpose 

of the provision is to mitigate the 

exposure of FICUs to concentration 

risk.10 The preamble explained that, in 

prescribing concentration limits on loan 

participations, the Board’s goal was ‘‘to 

strike an appropriate balance between 

mitigating risk and fostering the [credit 

union] industry’s growth and 

stability.’’ 11

Under the temporary final rule issued 

in April 2020, the aggregate limit below 

which a waiver from the appropriate 

NCUA Regional Director is not required 

was temporarily raised to the greater of 

$5,000,000 or 200 percent of a FICU’s 

net worth. The increase was intended to 

help safeguard the stability of FICUs 

during the COVID–19 pandemic, 

without undue additional risk to the 

safety and soundness of the credit union 

system. The temporary increase was set 

to expire at the close of December 31, 

2020. 

Due to the ongoing COVID–19 

pandemic and its continued impact on 

FICUs, the Board believes it necessary to 

extend the effective period of this 

temporary amendment until the close of 

December 31, 2021. As noted in the 

April 2020 temporary final rule, the 

Board continues to believe that a cap is 

an important protection against FICU 

insolvency. However, the Board also 

continues to believe that, as currently 

formulated in § 701.22(b)(5)(ii), the 

limitation may be overly prescriptive 

during this time. Additional regulatory 

flexibility continues to be especially 

warranted to deal with the economic 

impact of the COVID–19 pandemic, 

which may result in additional stress on 

credit union balance sheets, potentially 

requiring robust liquidity management. 

When the Board issued the temporary 

increase in April, it emphasized its 

belief that this amendment would help 

safeguard the stability of FICUs during 

the COVID–19 pandemic, without 

undue additional risk to the safety and 

soundness of the credit union system. 

The Board maintains this belief and 

expects that the impact of the COVID– 

19 pandemic will warrant an increased 

cap until the close of December 31, 

2021. The Board also continues to 

believe that the temporary increase is 

needed to strike the balance the Board 

sought in originally promulgating the 

rule in 2013; the Board encourages 

FICUs to engage in appropriate due 

diligence in this context. As such, the 

Board feels it necessary to extend this 

relief until the close of December 31, 

2021 to continue to allow FICUs the 

flexibility to conduct robust liquidity 

management to cope with the atypical 

economic conditions caused by the 

COVID–19 pandemic. The Board 

believes that a one-year extension 

appropriately balances the 

unpredictable length of the economic 

impact of the COVID–19 pandemic with 

safety and soundness considerations. 

In the April 2020 temporary final rule, 

the Board noted that, subsequent to the 

temporary rule’s expiration at the close 

of December 31, 2020, a FICU must 

return into compliance with the current 

limitation (that is, the greater of 

$5,000,000 or 100 percent of its net 

worth) by either ceasing to purchase 

loan participations from the originating 

lender or requesting a waiver as 

provided in the regulation. With this 

extension of the expiration, a FICU now 

must return into compliance with the 

current limitation or obtain a waiver at 

the close of December 31, 2021. 

B. Purchase, Sale, and Pledge of Eligible 

Obligations (Section 701.23(b)) 

Section 107(13) of the FCU Act 

authorizes an FCU, ‘‘in accordance with 

rules and regulations prescribed by the 

Board,’’ to purchase, sell, or pledge all 

or part of an eligible obligation to one 

of its own members.12 The NCUA has 

implemented this authority in its 

regulations at § 701.23(b)(1)(i) and 

(b)(2)(i), which provide that an FCU 

may purchase an eligible obligation 

from any source, provided the FCU is 

empowered to grant the loan or the loan 

is refinanced within 60 days following 

its purchase so that it is a loan the FCU 

is empowered to grant. 

The purpose of the refinancing 

requirement is to help ensure that loans 

purchased by an FCU comply with the 

statutory and regulatory requirements 

applicable to loans made by the FCU. 

Although the Board’s longstanding 

policy has been that all eligible 

obligations of an FCU, whether made or 

purchased, comply with the 

requirements and goals of the FCU Act, 

the explicit statutory language of the 

FCU Act does not necessarily compel 

this. As explained in the April 2020 

temporary final rule, the Board believes 

that, given the impact of the COVID–19 

pandemic, the balance weighs in favor 


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13 44 FR 27068, 27069 (May 9, 1979). 

14Section 701.23 also contains exceptions to the 

membership requirement for certain purchases of 

student loans and real estate loans that an FCU 

purchases to complete a pool for sale. The Board 

established this exception in the 1979 final rule 

discussed above. 44 FR 27068 (May 9, 1979). 

15Section 107(14) is codified in 12 U.S.C. 

1757(14). For the Board’s prior statements on this 

matter, please refer to 66 FR 58656, 58660 (Nov. 23, 

2001); 51 FR15055, 15059 (Mar. 15, 2001), and 76 

FR 81421, 81426 (Dec. 28, 2011). 

16 Generally, credit unions with a CAMEL 

composite rating lower than 3 are considered to be 

in ‘‘troubled condition’’ under the NCUA’s 

regulations. 12 CFR 700.2. 17 12 U.S.C. 1757(4). 

18 12 CFR 701.36(c)(1). 

19 12 CFR 701.36(c)(2). 

20See https://www.nytimes.com/interactive/2020/ 

us/coronavirus-stay-at-home-order.html. (‘‘[A] a 

vast majority of Americans — nine in 10 United 

States residents — are now or will soon be under 

instructions to stay at home.’’) 

of adopting a closer reading of the text 

of the statute and suspending the 

refinancing requirement for a temporary 

period to promote the extension of 

credit and flow of liquidity in the credit 

union system generally. 

As noted, the FCU Act and § 701.23 

generally do not authorize an FCU to 

purchase a loan unless the person liable 

on the loan is a member of that credit 

union. The Board’s publicly articulated 

interpretation since the 1979 

rulemaking that implemented section 

107(13) is that Congress did not intend 

section 107(13) to be an express 

prohibition on purchases of obligations 

made to non-members provided they are 

authorized by other sections of the FCU 

Act.13

The Board’s regulations in § 701.23 

generally require that purchased eligible 

obligations be obligations of a 

purchasing FCU’s members. However, 

§ 701.23(b)(2) provides certain limited 

exceptions to the general requirements 

for well-capitalized FCUs that have 

composite CAMEL ratings of ‘‘1’’ or 

‘‘2.’’ 14 The regulations authorize these 

FCUs to purchase the eligible 

obligations of any FICU or of any 

liquidating credit union without regard 

to whether they are obligations of the 

purchasing FCU’s members. As the 

Board has previously noted, these types 

of purchases could be construed as 

being made under section 107(14) of the 

FCU Act (which does not impose a 

membership requirement), as opposed 

to under section 107(13).15 Section 

107(14) authorizes FCUs to ‘‘purchase 

all or part of the assets of another credit 

union and to assume the liabilities of 

the selling credit union and those of its 

members.’’ This statutory interpretation 

is consistent with the general principle 

that the more specific provision or 

authority applies in favor of the more 

general provision. 

In the April 2020 temporary final rule, 

the Board explained that—while it 

continues to believe that this exception 

should generally be limited to FCUs 

with CAMEL 1 or 2 composite ratings— 

it also recognizes the urgent need to 

support the extension of credit and 

facilitate downstream loan purchases as 

a tool to manage liquidity. The Board, 

therefore, temporarily amended its 

regulations to authorize FCUs with 

CAMEL composite ratings of 1, 2, or 3 

to purchase eligible obligations of FICUs 

and liquidating credit unions 

irrespective of whether the obligation 

belongs to the purchasing FCU’s 

members. This change did not alter the 

requirement for a purchasing FCU to be 

well-capitalized under § 701.22(b)(2).16

This temporary amendment was set to 

expire at the close of December 31, 

2020. Due to the ongoing and 

unforeseeable impact of the COVID–19 

pandemic, the Board believes it 

appropriate to extend these temporary 

provisions until the close of December 

31, 2021. The Board recognizes that the 

need to support the extension of credit 

and facilitate the downstream loan 

purchases as a tool to manage liquidity 

remains, and likely will remain for the 

foreseeable future. The Board believes 

that a one-year extension appropriately 

balances the unpredictable length of the 

economic impact of the COVID–19 

pandemic with safety and soundness 

considerations. 

As noted in the April 2020 temporary 

final rule, the Board reiterates that this 

change allows FCUs to continue to hold 

obligations purchased pursuant to this 

temporary final rule subsequent to the 

rule’s expiration. The standard 

requirements applicable to the purchase 

of obligations under § 701.23 will 

resume after the expiration of the 

temporary provisions at the close of 

December 31, 2021, unless extended, 

and will apply to all future purchases, 

including to purchases of obligations 

previously acquired under the 

provisions of this temporary final rule. 

The Board also reiterates that the 

restrictions temporarily relieved in 

§ 701.23 do not apply to state-chartered, 

federally insured credit unions. Any 

such restrictions applicable to statechartered credit unions would be based 

on state laws or regulations. This 

temporary final rule does not modify the 

current authority of FCUs under 

§ 701.23 to purchase the obligations of 

a liquidating credit union without 

regard to whether the obligations belong 

to the purchasing FCU’s members. 

C. FCU Occupancy and Disposal of 

Acquired Premises (Section 701.36(c)) 

Section 107(4) of the FCU Act 

authorizes an FCU to purchase, hold, 

and dispose of property necessary or 

incidental to its operations.17 The Board 

has implemented and interpreted this 

provision of the FCU Act in its 

regulation at 12 CFR 701.36. In general, 

an FCU may only invest in property that 

it intends to use to transact credit union 

business or in property that supports its 

internal operations or serves its 

members. Among other provisions, 

§ 701.36: (1) Limits FCU investments in 

fixed assets; and (2) establishes 

occupancy, planning, and disposal 

requirements for acquired and 

abandoned premises. 

The regulation provides that if an 

FCU acquires premises, including 

unimproved land or unimproved real 

property, it must partially occupy them 

‘‘no later than six years after the date of 

acquisition,’’ subject to the NCUA 

granting a waiver.18 Further, an FCU 

must make diligent efforts to dispose of 

abandoned premises and any other real 

property it does not intend to use in 

transacting business. Additionally, the 

FCU must advertise for sale premises 

that have been abandoned for four 

years.19 The specific terms of these 

requirements do not stem directly from 

the FCU Act, but instead reflect the 

Board’s judgment in implementing the 

general statutory provision. 

In the April temporary final rule, the 

Board—noting the impact of the 

physical distancing measures adopted 

by many states and localities related to 

COVID–19 20 on FCU’s ability to comply 

with the occupancy and disposition 

requirements in § 701.36—adopted 

provisions to temporarily toll the 

regulatory mandated timeframes in the 

rule. The Board emphasized that these 

health-related restrictions on the 

mobility of individuals made the 

changes in occupancy and dispositions 

required by § 701.36 extremely difficult. 

The Board explained that this temporary 

change appropriately reflected these 

unique circumstances while 

maintaining consistency with the 

statutory provision as interpreted and 

implemented by the Board. 

The temporary final rule provided 

that any days that fall within the period 

commencing on April 21, 2020 and 

concluding at the close of December 31, 

2020 shall not be counted for purposes 

of determining an FCU’s compliance 

with the regulatory time periods. This 

temporary deferral has provided FCUs 

additional flexibility to comply with the 

prescribed time periods, while still 

complying with the statutory and 

regulatory goals of ensuring that 


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83408 Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Rules and Regulations 

21See https://www.nytimes.com/interactive/2020/ 

us/states-reopen-map-coronavirus.html. (‘‘As 

coronavirus cases continue to surge and hospitals 

in some areas stretch to capacity, many states are 

once again imposing limits on businesses and 

everyday life. Some governors are closing sectors 

they had reopened after spring lockdowns. Others, 

wary of an ailing economy, are letting businesses 

remain largely open but setting stricter capacity 

limits or mandating the wearing of masks in 

public.’’) 

22 5 U.S.C. 551 et seq. 23 5 U.S.C. 553(b)(3). 

24 5 U.S.C. 553(d). 

25 5 U.S.C. 801–808. 

26 5 U.S.C. 804(2). 

27 5 U.S.C. 808. 

properties acquired or held by FCUs are 

used for credit union business. 

Due to the ongoing nature of the 

COVID–19 pandemic and its continued 

impact on FICUs, the Board has decided 

it is necessary to extend the 

effectiveness of this temporary 

amendment until the close of December 

31, 2021. Physical distancing practices 

continue to be a key component of 

preventing the spread of COVID–19 and 

many states, localities, and businesses 

have adopted related requirements or 

policies 21 that continue to make the 

changes in occupancy and dispositions 

required by § 701.36 extremely difficult. 

The Board continues to believe this 

temporary change appropriately reflects 

the unique circumstances necessitated 

by the COVID–19 pandemic while 

maintaining consistency with the 

statutory provision as interpreted and 

implemented by the Board. The Board 

feels that a one-year extension 

appropriately balances the 

unpredictable length of the impact of 

the COVID–19 pandemic with safety 

and soundness considerations. 

Example One: An FCU closed on the 

purchase of an office building 30 days 

before April 21, 2020 (that is, the 

temporary final rule is published on the 

31st day following acquisition). Under 

the temporary regulatory amendment, 

January 1, 2022 would be deemed the 

31st day following acquisition for 

purposes of calculating the six-year 

deadline for partial occupancy. 

Example Two: An FCU has an 

abandoned parcel of land that, under 

§ 701.36(c)(2), it is required to advertise 

for sale no later than November 9, 2020 

(i.e., that fourth year anniversary of the 

date the parcel was abandoned). Under 

this temporary final rule, the FCU would 

have an additional amount of time to 

meet this requirement equal to the 

number of days between the publication 

date and January 1, 2022. 

IV. Regulatory Procedures 

A. Administrative Procedure Act 

The Board is issuing the extension of 

the temporary final rule without prior 

notice and the opportunity for public 

comment and the delayed effective date 

ordinarily prescribed by the 

Administrative Procedure Act (APA).22

Pursuant to the APA, general notice and 

the opportunity for public comment are 

not required with respect to a 

rulemaking when an ‘‘agency for good 

cause finds (and incorporates the 

finding and a brief statement of reasons 

therefor in the rules issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest.’’ 23

The Board believes that the public 

interest is best served by implementing 

the extension of the previously issued 

temporary final rule immediately upon 

publication in the Federal Register. The 

Board notes that the COVID–19 crisis is 

unprecedented. It is a rapidly changing 

situation and difficult to anticipate how 

the disruptions caused by the crisis will 

manifest themselves within the 

financial system and how individual 

credit unions may be impacted. Because 

of the widespread impact of a pandemic 

and the temporary nature of both the 

relief contemplated by the temporary 

final rule and this extension of such 

relief, the Board believes it is has good 

cause to determine that ordinary notice 

and public procedure are impracticable 

and that moving expeditiously to extend 

the temporary final rule is in the best of 

interests of the public and the FICUs 

that serve that public. The extension of 

these temporary regulatory changes are 

proactive steps that are designed help 

FICUs cope with the economic impact 

of the COVID–19 pandemic, which may 

result in additional stress on credit 

union balance sheets, potentially 

requiring robust liquidity management 

over the course of 2021. The changes are 

undertaken with expedience to ensure 

the maximum intended effects remain 

in place. 

The Board values public input in its 

rulemakings and believes that providing 

the opportunity for comment enhances 

its regulations. Accordingly, the Board 

often solicits comments on its rules 

even when not required under the APA, 

such as for the rules it issues on an 

interim-final basis. The Board, however, 

notes that the provisions extended in 

this rule are temporary in nature, and 

designed specifically to help credit 

unions affected by the COVID–19 

pandemic. The extension of the 

amendments made by the initial 

temporary final rule will automatically 

expire at the close of December 31, 

2021, and are limited in number and 

scope. For these reasons, the Board 

finds that there is good cause consistent 

with the public interest to issue the rule 

without advance notice and comment. 

The APA also requires a 30-day 

delayed effective date, except for: (1) 

Substantive rules which grant or 

recognize an exemption or relieve a 

restriction; (2) interpretative rules and 

statements of policy; or (3) as otherwise 

provided by the agency for good 

cause.24 Because the rules relieve 

currently codified limitations and 

restrictions, the extension of the 

temporary final rule is exempt from the 

APA’s delayed effective date 

requirement. As an alternative basis to 

make the rule effective without the 30- 

day delayed effective date, the Board 

finds there is good cause to do so for the 

same reasons set forth above regarding 

advance notice and opportunity for 

comment. 

B. Congressional Review Act 

For purposes of the Congressional 

Review Act,25 the Office of Management 

and Budget (OMB) makes a 

determination as to whether a final rule 

constitutes a ‘‘major’’ rule. If the OMB 

deems a rule to be a ‘‘major rule,’’ the 

Congressional Review Act generally 

provides that the rule may not take 

effect until at least 60 days following its 

publication. 

The Congressional Review Act defines 

a ‘‘major rule’’ as any rule that the 

Administrator of the Office of 

Information and Regulatory Affairs of 

the OMB finds has resulted in or is 

likely to result in (A) an annual effect 

on the economy of $100,000,000 or 

more; (B) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions, or (C) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets.26

For the same reasons set forth above, 

the Board is adopting the extension of 

the temporary final rule without the 

delayed effective date generally 

prescribed under the Congressional 

Review Act. The delayed effective date 

required by the Congressional Review 

Act does not apply to any rule for which 

an agency for good cause finds (and 

incorporates the finding and a brief 

statement of reasons therefor in the rule 

issued) that notice and public procedure 

thereon are impracticable, unnecessary, 

or contrary to the public interest.27 In 

light of current market uncertainty, the 

Board believes that delaying the 

effective date of the extension of the 


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28Executive Order 13132 on Federalism, was 

signed by former President Clinton on August 4, 

1999, and subsequently published in the Federal 

Register on August 10, 1999 (64 FR 43255). 

29Public Law 105–277, 112 Stat. 2681 (1998). 1 12 U.S.C. 2801–2810. 

temporary final rule would be contrary 

to the public interest for the same 

reasons discussed above. 

As required by the Congressional 

Review Act, the Board will submit the 

final rule and other appropriate reports 

to Congress and the Government 

Accountability Office for review. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) (44 U.S.C. 3501 et seq.) requires 

that the Office of Management and 

Budget (OMB) approve all collections of 

information by a Federal agency from 

the public before they can be 

implemented. Respondents are not 

required to respond to any collection of 

information unless it displays a valid 

OMB control number. 

In accordance with the PRA, the 

information collection requirements 

included in this temporary final rule 

extension have been submitted to OMB 

for approval under control numbers 

3133–0141, 3133–0127 and 3133–0040. 

D. Executive Order 13132, on 

Federalism 

Executive Order 13132 28 encourages 

independent regulatory agencies to 

consider the impact of their actions on 

state and local interests. The NCUA, an 

independent regulatory agency, as 

defined in 44 U.S.C. 3502(5), voluntarily 

complies with the Executive order to 

adhere to fundamental federalism 

principles. The extension of the 

temporary final rule will not have 

substantial direct effects on the states, 

on the relationship between the 

National Government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. The Board has 

therefore determined that this rule does 

not constitute a policy that has 

federalism implications for purposes of 

the Executive order. 

E. Assessment of Federal Regulations 

and Policies on Families 

The NCUA has determined that the 

extension of the temporary final rule 

will not affect family well-being within 

the meaning of Section 654 of the 

Treasury and General Government 

Appropriations Act, 1999.29

F. Regulatory Flexibility Act (RFA) 

The Regulatory Flexibility Act (RFA) 

generally requires that when an agency 

issues a proposed rule or a final rule 

pursuant to the APA or another law, the 

agency must prepare a regulatory 

flexibility analysis that meets the 

requirements of the RFA and publish 

such analysis in the Federal Register. 

Specifically, the RFA normally requires 

agencies to describe the impact of a 

rulemaking on small entities by 

providing a regulatory impact analysis. 

For purposes of the RFA, the Board 

considers credit unions with assets less 

than $100 million to be small entities. 

As discussed previously, consistent 

with the APA, the Board has determined 

for good cause that general notice and 

opportunity for public comment is 

unnecessary, and therefore the Board is 

not issuing a notice of proposed 

rulemaking. Rules that are exempt from 

notice and comment procedures are also 

exempt from the RFA requirements, 

including conducting a regulatory 

flexibility analysis, when among other 

things the agency for good cause finds 

that notice and public procedure are 

impracticable, unnecessary, or contrary 

to the public interest. Accordingly, the 

Board has concluded that the RFA’s 

requirements relating to initial and final 

regulatory flexibility analysis do not 

apply. 

List of Subjects in 12 CFR Part 701 

Aged, Civil rights, Credit, Credit 

unions, Fair housing, Individuals with 

disabilities, Insurance, Mortgages, 

Reporting and recordkeeping 

requirements. 

By the NCUA Board, this 17th day of 

December 2020. 

Melane Conyers-Ausbrooks, 

Secretary of the Board. 

For the reasons discussed in the 

preamble, the Board amends 12 CFR 

part 701 as follows: 

PART 701—ORGANIZATION AND 

OPERATION OF CREDIT UNIONS 

■ 1. The authority citation for part 701 

continues to read as follows: 

Authority: 12 U.S.C. 1752(5), 1755, 1756, 

1757, 1758, 1759, 1761a, 1761b, 1766, 1767, 

1782, 1784, 1785, 1786, 1787, 1788, 1789. 

Section 701.6 is also authorized by 15 U.S.C. 

3717. Section 701.31 is also authorized by 15 

U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– 

3610. Section 701.35 is also authorized by 42 

U.S.C. 4311–4312. 

§ 701.22 [Amended] 

■ 2. In § 701.22(e), remove the date 

‘‘December 31, 2020’’ and add in its 

place the date ‘‘December 31, 2021’’. 

§ 701.23 [Amended] 

■ 3. In § 701.23(i) introductory text, 

remove the date ‘‘December 31, 2020’’ 

and add in its place the date ‘‘December 

31, 2021’’. 

§ 701.36 [Amended] 

■ 4. In § 701.36(c)(3), remove the date 

‘‘December 31, 2020’’ and add in its 

place the date ‘‘December 31, 2021’’. 

[FR Doc. 2020–28279 Filed 12–21–20; 8:45 am] 

BILLING CODE 7535–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1003 

Home Mortgage Disclosure 

(Regulation C) Adjustment to AssetSize Exemption Threshold 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official 

interpretation. 

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 1.3 

percent increase in the average of the 

CPI–W for the 12-month period ending 

in November 2020, the exemption 

threshold is adjusted to $48 million 

from $47 million. Therefore, banks, 

savings associations, and credit unions 

with assets of $48 million or less as of 

December 31, 2020, are exempt from 

collecting data in 2021. 

DATES: This rule is effective on January 

1, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Willie Williams, Paralegal Specialist; 

Rachel Ross, Attorney-Advisor; 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: The 

Bureau is amending Regulation C, 

which implements the HMDA asset 

thresholds, to establish the asset-sized 

exemption threshold for depository 

financial institution for 2021. The asset 

threshold will be $48 million for 2021. 

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 


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