Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 76839 

PART 430—ENERGY CONSERVATION 

PROGRAM FOR CONSUMER 

PRODUCTS 

■ 1. The authority citation for part 430 

continues to read as follows: 

Authority: 42 U.S.C. 6291–6309; 28 U.S.C. 

2461 note. 

§ 430.3 [Amended] 

■ 2. Section 430.3 is amended by: 

■ a. Removing, in paragraph (m)(1), the 

words ‘‘appendix I, and appendix N’’ 

and adding in its place ‘‘and appendix 

I’’; 

■ b. Adding after ‘‘J2,’’ in paragraph 

(m)(2), ‘‘N,’’. 

■ 3. Appendix N to subpart B of part 

430 is amended: 

■ a. By revising the second sentence of 

the introductory note. 

■ b. In section 2.4., by removing the 

phrase ‘‘(First Edition 2005–06)’’ and 

adding in its place ‘‘(Edition 2.0 2011– 

01)’’; 

■ c. In section 8.6.1, by removing in the 

third sentence, the phrase ‘‘4.5 Power 

measurement accuracy’’ and adding in 

its place, the phrase ‘‘4.4 Power 

measurement instruments’’ and by 

adding a sentence at the end of the 

section. 

■ d. In section 8.6.2, by removing in the 

third sentence, the phrase ‘‘4.5 Power 

measurement accuracy’’ and adding in 

its place the phrase ‘‘4.4 Power 

measurement instruments’’, and by 

adding a sentence at the end of the 

section. 

The additions and revisions read as 

follows: 

Appendix N to Subpart B of Part 430— 

Uniform Test Method for Measuring the 

Energy Consumption of Furnaces and 

Boilers 

Note: * * * However, any representation 

related to standby mode and off mode energy 

consumption of these products made after 

July 1, 2013 must be based upon results 

generated under this test procedure, 

consistent with the requirements of 42 U.S.C. 

6293(c)(2). * * * 

* * * * * 

8.6.1 Standby power measurement. * * * 

The recorded standby power (PW,SB) shall be 

rounded to the second decimal place, and for 

loads greater than or equal to 10W, at least 

three significant figures shall be reported. 

8.6.2. Off mode power measurement. 

* * * The recorded off mode power (PW,OFF) 

shall be rounded to the second decimal 

place, and for loads greater than or equal to 

10W, at least three significant figures shall be 

reported. 

* * * * * 

[FR Doc. 2012–31175 Filed 12–28–12; 8:45 am] 

BILLING CODE 6450–01–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1003 

[Docket No. CFPB–2012–0049] 

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 

publishing a final rule amending the 

official commentary that interprets the 

requirements of the Bureau’s Regulation 

C (Home Mortgage Disclosure) to reflect 

a change in the asset-size exemption 

threshold for banks, savings 

associations, and credit unions based on 

the annual percentage change in the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers (CPI–W). 

The exemption threshold is adjusted to 

increase to $42 million from $41 

million. The adjustment is based on the 

2.23 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2012. Therefore, 

banks, savings associations, and credit 

unions with assets of $42 million or less 

as of December 31, 2012, are exempt 

from collecting data in 2013. 

DATES: This final rule is effective 

December 31, 2012. 

FOR FURTHER INFORMATION CONTACT: Joan 

Kayagil, Senior Counsel, Office of 

Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Home Mortgage Disclosure Act of 

1975 (HMDA) (12 U.S.C. 2801–2810) 

requires most mortgage lenders located 

in metropolitan areas to collect data 

about their housing-related lending 

activity. Annually, lenders must report 

those data to the appropriate Federal 

agencies and make the data available to 

the public. The Bureau’s Regulation C 

(12 CFR part 1003) 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. 12 U.S.C. 2808(b). The 

amendment increased the dollar amount 

of the asset-size exemption threshold by 

requiring a one-time 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 dollars. 

The definition of ‘‘financial 

institution’’ in Regulation C 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 million. 12 CFR 1003.2. For 

2012, the threshold was $41 million. 

During the 12-month period ending in 

November 2012, the CPI–W increased 

by 2.23 percent. As a result, the 

exemption threshold is increased to $42 

million. Thus, banks, savings 

associations, and credit unions with 

assets of $42 million or less as of 

December 31, 2012, are exempt from 

collecting data in 2013. An institution’s 

exemption from collecting data in 2013 

does not affect its responsibility to 

report data it was required to collect in 

2012. 

II. Procedural Requirements 

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. 5 U.S.C. 553(b)(B). Pursuant to 

this final rule, comment 1003.2 

(Financial institution)–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 and the amendment is 

adopted in final form. 

Under section 553(d) of the APA, the 

required publication or service of a 

substantive rule shall be made not less 

than 30 days before its effective date 

except for certain instances, including 

when a substantive rule grants or 

recognizes an exemption or relieves a 

restriction. 5 U.S.C. 553(d). As this rule 

increases the exemption threshold, and 

is therefore a substantive rule that grants 

or recognizes an exemption or relieves 

a restriction, the Bureau is publishing 

this final rule less than 30 days before 

its effective date. Additionally, as it is 

in the public interest to make the 


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76840 Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Rules and Regulations 

updated threshold for the asset-size 

exemption available publicly as soon as 

possible after all data needed for the 

calculation are available, the Bureau is 

making the final rule effective 

immediately upon publication in the 

Federal Register. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where 

general notice of proposed rulemaking 

is not required. 5 U.S.C. 603 and 604. 

As noted previously, the Bureau has 

determined that it is unnecessary 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. 

List of Subjects in 12 CFR Part 1003 

Banks, Banking, Credit unions, 

Mortgages, National banks, Savings 

associations, Reporting and 

recordkeeping requirements. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau of Consumer 

Financial Protection amends 12 CFR 

part 1003 as follows: 

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, under the 

definition ‘‘Financial institution’’, 

paragraph 2 is revised to read as 

follows: 

Supplement I to Part 1003—Staff 

Commentary 

* * * * * 

Section 1003.2—Definitions 

* * * * * 

Financial institution. 

* * * * * 

2. Adjustment of exemption threshold for 

banks, savings associations, and credit 

unions. For data collection in 2013, the assetsize exemption threshold is $42 million. 

Banks, savings associations, and credit 

unions with assets at or below $42 million 

as of December 31, 2012, are exempt from 

collecting data for 2013. 

* * * * * 

Dated: December 21, 2012. 

Richard Cordray, 

Director, Consumer Financial Protection 

Bureau. 

[FR Doc. 2012–31311 Filed 12–28–12; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF THE TREASURY 

Comptroller of the Currency 

12 CFR Part 3 

Minimum Capital Ratios; Issuance of 

Directives 

CFR Correction 

In Title 12 of the Code of Federal 

Regulations, Parts 1 to 199, revised as of 

January 1, 2012, on page 52, in 

appendix C to Part 3, Part I, Section 1 

is revised to read as follows: 

Appendix C to Part 3—Capital 

Adequacy Guidelines for Banks: 

Internal-Ratings-Based and Advanced 

Measurement Approaches 

* * * * * 

Part I. General Provisions 

Section 1. Purpose, Applicability, 

Reservation of Authority, and Principle of 

Conservatism 

(a) Purpose. This appendix establishes: 

(1) Minimum qualifying criteria for banks 

using bank-specific internal risk 

measurement and management processes for 

calculating risk-based capital requirements; 

(2) Methodologies for such banks to 

calculate their risk-based capital 

requirements; and 

(3) Public disclosure requirements for such 

banks. 

(b) Applicability. (1) This appendix applies 

to a bank that: 

(i) Has consolidated assets, as reported on 

the most recent year-end Consolidated Report 

of Condition and Income (Call Report) equal 

to $250 billion or more; 

(ii) Has consolidated total on-balance sheet 

foreign exposure at the most recent year-end 

equal to $10 billion or more (where total onbalance sheet foreign exposure equals total 

cross-border claims less claims with head 

office or guarantor located in another country 

plus redistributed guaranteed amounts to the 

country of head office or guarantor plus local 

country claims on local residents plus 

revaluation gains on foreign exchange and 

derivative products, calculated in accordance 

with the Federal Financial Institutions 

Examination Council (FFIEC) 009 Country 

Exposure Report); 

(iii) Is a subsidiary of a depository 

institution that uses 12 CFR part 3, appendix 

C, 12 CFR part 208, appendix F, 12 CFR part 

325, appendix D, or 12 CFR part 567, 

appendix C, to calculate its risk-based capital 

requirements; or 

(iv) Is a subsidiary of a bank holding 

company that uses 12 CFR part 225, 

appendix G, to calculate its risk-based capital 

requirements. 

(2) Any bank may elect to use this 

appendix to calculate its risk-based capital 

requirements. 

(3) A bank that is subject to this appendix 

must use this appendix unless the OCC 

determines in writing that application of this 

appendix is not appropriate in light of the 

bank’s asset size, level of complexity, risk 

profile, or scope of operations. In making a 

determination under this paragraph, the OCC 

will apply notice and response procedures in 

the same manner and to the same extent as 

the notice and response procedures in 12 

CFR 3.12. 

(c) Reservation of authority—(1) Additional 

capital in the aggregate. The OCC may 

require a bank to hold an amount of capital 

greater than otherwise required under this 

appendix if the OCC determines that the 

bank’s risk-based capital requirement under 

this appendix is not commensurate with the 

bank’s credit, market, operational, or other 

risks. In making a determination under this 

paragraph, the OCC will apply notice and 

response procedures in the same manner and 

to the same extent as the notice and response 

procedures in 12 CFR 3.12. 

(2) Specific risk-weighted asset amounts. (i) 

If the OCC determines that the risk-weighted 

asset amount calculated under this appendix 

by the bank for one or more exposures is not 

commensurate with the risks associated with 

those exposures, the OCC may require the 

bank to assign a different risk-weighted asset 

amount to the exposures, to assign different 

risk parameters to the exposures (if the 

exposures are wholesale or retail exposures), 

or to use different model assumptions for the 

exposures (if relevant), all as specified by the 

OCC. 

(ii) If the OCC determines that the riskweighted asset amount for operational risk 

produced by the bank under this appendix is 

not commensurate with the operational risks 

of the bank, the OCC may require the bank 

to assign a different risk-weighted asset 

amount for operational risk, to change 

elements of its operational risk analytical 

framework, including distributional and 

dependence assumptions, or to make other 

changes to the bank’s operational risk 

management processes, data and assessment 

systems, or quantification systems, all as 

specified by the OCC. 

(3) Regulatory capital treatment of 

unconsolidated entities. If the OCC 

determines that the capital treatment for a 

bank’s exposure or other relationship to an 

entity not consolidated on the bank’s balance 

sheet is not commensurate with the actual 

risk relationship of the bank to the entity, for 

risk-based capital purposes, it may require 

the bank to treat the entity as if it were 

consolidated onto the bank’s balance sheet 

and require the bank to hold capital against 

the entity’s exposures. The OCC will look to 

the substance of and risk associated with the 

transaction as well as other relevant factors 

the OCC deems appropriate in determining 

whether to require such treatment and in 

determining the bank’s compliance with 

minimum risk-based capital requirements. In 

making a determination under this 

paragraph, the OCC will apply notice and 

response procedures in the same manner and 

to the same extent as the notice and response 

procedures in 12 CFR 3.12. 

(4) Other supervisory authority. Nothing in 

this appendix limits the authority of the OCC 

under any other provision of law or 

regulation to take supervisory or enforcement 

action, including action to address unsafe or 

unsound practices or conditions, deficient 

capital levels, or violations of law. 


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