Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Notices 38617 

SYSTEM MANAGER(S) AND ADDRESS: 

Director, Office of Management 

Services, Farm Credit Administration, 

McLean, VA 22102–5090. 

NOTIFICATION PROCEDURE: 

Direct all inquiries about this system 

of records to: Privacy Act Officer, Farm 

Credit Administration, McLean, VA 

22102–5090. 

RECORD ACCESS PROCEDURES: 

Same as above. 

CONTESTING RECORD PROCEDURES: 

Same as above. 

RECORD SOURCE CATEGORIES: 

Information in this system of records 

either comes from the individual to 

whom it applies or comes from 

information supplied by Agency 

officials. 

EXEMPTIONS CLAIMED FOR THE SYSTEM: 

None. 

Dated: July 30, 2009. 

Roland Smith, 

Secretary, Farm Credit Administration Board. 

[FR Doc. E9–18603 Filed 8–3–09; 8:45 am] 

BILLING CODE 6705–01–P 

FEDERAL ELECTION COMMISSION 

[NOTICE 2009–18] 

Agency Procedure for Notice to 

Respondents in Non-Complaint 

Generated Matters 

AGENCY: Federal Election Commission. 

ACTION: Agency procedure. 

SUMMARY: The Federal Election 

Commission (‘‘Commission’’) is 

establishing a new agency procedure 

that will provide respondents in certain 

enforcement matters brought under the 

Federal Election Campaign Act of 1971, 

as amended (‘‘FECA’’) with notice of a 

non-complaint generated referral and an 

opportunity to respond thereto, prior to 

the Commission’s consideration of 

whether it has reason to believe that a 

violation of the Act has been or is about 

to be committed by such respondent. 

This program will provide respondents 

in non-complaint generated matters 

procedural protections similar to those 

of respondents in complaint-generated 

matters. Further information about the 

procedures for providing notice to 

respondents in non-complaint generated 

matters is provided in the 

supplementary information that follows. 

DATES: Effective August 4, 2009. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Mark Shonkwiler, Assistant General 

Counsel, 999 E Street, NW., 

Washington, DC 20463, (202) 694–1650 

or (800) 424–9530. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On June 11, 2003, the Commission 

held a hearing concerning its 

enforcement procedures. The 

Commission received public comments, 

many of which argued for increased 

transparency in Commission procedures 

and expanded opportunities to contest 

allegations. Comments and statements 

for the record are available at: http:// 

www.fec.gov/agenda/agendas2003/ 

notice2003–09/comments.shtml. In 

response to issues raised at the hearing, 

the Commission issued new agency 

procedures. See Statement of Policy 

Regarding Deposition Transcripts in 

Nonpublic Investigations, 68 FR 50688 

(Aug. 22, 2003); Statement of Policy 

Regarding Treasurers Subject to 

Enforcement Proceedings, 70 FR 3 (Jan. 

3, 2005). 

On December 8, 2008, the 

Commission issued a notice of public 

hearing and request for public comment 

on the compliance and enforcement 

aspects of its agency procedures. 

Agency Procedures (Notice of public 

hearing and request for public 

comments), 73 FR 74495 (Dec. 8, 2008). 

On January 14–15, 2009, the 

Commission received comment and 

testimony. The comments received by 

the Commission, as well as the 

transcript of the hearing are available at: 

http://www.fec.gov/law/policy/ 

enforcement/ 

publichearing011409.shtml. 

The Commission received numerous 

comments regarding respondents in 

non-complaint generated matters not 

receiving notice when a matter has been 

referred to the Commission’s Office of 

General Counsel (‘‘OGC’’) for 

enforcement. One commenter opined 

that the Commission should never find 

reason to believe (‘‘RTB’’) that a 

violation occurred without first giving 

the respondent the opportunity to 

respond. Another commenter 

recommended instituting a program 

whereby potential respondents in noncomplaint generated matters are given a 

written summary of the matter and an 

opportunity to respond in writing before 

the Commission makes an RTB finding, 

in order to put respondents on notice 

about the potential outcome of the 

proceeding. Other commenters urged 

the Commission to adopt procedures to 

notify committees of any internal 

referral, and to implement procedures to 

provide respondents with the 

opportunity to review and respond to 

any adverse course of action 

recommended by OGC before the 

Commission considers such 

recommendation. 

II. Procedures for Notice to 

Respondents in Non-Complaint 

Generated Matters 

The Commission is issuing a new 

agency procedure to provide 

notification to respondents of 

enforcement proceedings based on 

information ascertained by the 

Commission in the normal course of 

carrying out its supervisory 

responsibilities (i.e., non-complaint 

generated matters). See 2 U.S.C. 437g. In 

matters generated by complaints, the 

Commission may take no action on the 

complaint (other than dismissal) until 

respondents have at least 15 days after 

notification of the allegations contained 

in the complaint to answer the 

allegations. See 2 U.S.C. 437g(a)(1). 

However, the statute does not afford 

respondents the same opportunity to 

answer allegations in non-complaint 

generated matters. This agency 

procedure is intended to provide 

respondents in non-complaint generated 

enforcement matters with notice of the 

basis of the allegations, and an 

opportunity to respond. 

For matters arising from a referral 

from the Commission’s Reports Analysis 

Division or Audit Division (‘‘internal 

referrals’’), respondents will be notified 

of the referral within five days of receipt 

of the referral by OGC. The notice will 

contain a copy of the referral document 

and a cover letter setting forth the basis 

of the referral and potential violations of 

the Act and/or Commission regulations 

that arise based upon the referral. The 

respondent will then be given an 

opportunity to demonstrate that no 

action should be taken based on the 

referral, by submitting, within 15 days 

from receipt of the referral document 

and cover letter, a written explanation 

of why the Commission should take no 

action. The Commission will not take 

any action, or make any RTB finding 

against a respondent based on an 

internal referral unless it has considered 

such response or unless no such 

response has been served upon the 

Commission within 15 days. 

Under current Commission practice, 

non-complaint generated matters based 

on referrals from the U.S. Department of 

Justice or any other law enforcement or 

governmental agency (‘‘external 

referrals’’) are also deemed to be matters 

based on information ascertained in the 

normal course of carrying out its 

supervisory responsibilities. Under the 

new procedures, if OGC intends to 

initiate an enforcement proceeding 

based on an external referral, notice of 

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38618 Federal Register / Vol. 74, No. 148 / Tuesday, August 4, 2009 / Notices 

the referral will be provided to 

respondents in the same manner as an 

internal referral. However, where 

immediate notification to a respondent 

of an external referral is deemed 

inappropriate, OGC will notify the 

Commission of the referral within 5 

days of receipt of the referral from the 

governmental agency. In cases where, 

due to law enforcement purposes, the 

referral document may not be provided 

to a respondent, OGC will provide the 

respondent with a letter containing 

sufficient information regarding the 

facts and allegations to afford the 

respondent an opportunity to 

demonstrate that no action should be 

taken. Absent exercise of the 

Commission’s discretion (by the 

affirmative vote of four Commissioners), 

OGC will not proceed with an 

enforcement proceeding based on an 

external referral until the referral or 

substitute informational letter is 

provided to the respondent. 

III. Conclusion 

This notice establishes agency 

practices or procedures. This notice 

does not constitute an agency regulation 

requiring notice of proposed 

rulemaking, opportunities for public 

participation, prior publication, and 

delay effective under 5 U.S.C. 553 of the 

Administrative Procedures Act 

(‘‘APA’’). The provisions of the 

Regulatory Flexibility Act, 5 U.S.C. 

605(b), which apply when notice and 

comment are required by the APA or 

another statute, are not applicable. The 

above provides general guidance 

concerning notice to respondents in 

non-complaint generated matters and 

announces the general course of action 

that the Commission intends to follow. 

This notice sets forth the Commission’s 

intentions concerning the exercise of its 

discretion in its enforcement program. 

However, the Commission retains that 

discretion and will exercise it as 

appropriate with respect to the facts and 

circumstances of each matter it 

considers. Consequently, this notice 

does not bind the Commission or any 

member of the general public. 

On behalf of the Commission. 

Dated: July 29, 2009. 

Steven T. Walther, 

Chairman, Federal Election Commission. 

[FR Doc. E9–18542 Filed 8–3–09; 8:45 am] 

BILLING CODE 6715–01–P 

FEDERAL HOUSING FINANCE 

AGENCY 

[No. 2009–N–10] 

Federal Home Loan Bank Collateral for 

Advances and Interagency Guidance 

on Nontraditional Mortgage Products 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Notice of study and 

recommendations and request for 

comment. 

SUMMARY: Section 1217 of the Housing 

and Economic Recovery Act of 2008 

(HERA) requires the Director of the 

Federal Housing Finance Agency 

(FHFA) to conduct a study on the extent 

to which loans and securities used as 

collateral to support Federal Home Loan 

Bank (FHLBank) advances are 

consistent with the interagency 

guidance on nontraditional mortgage 

products. The study must be submitted 

to the Committee on Banking, Housing 

and Urban Affairs of the Senate and the 

Committee on Financial Services of the 

House of Representatives no later than 

July 30, 2009, one year after the date of 

the HERA enactment. Further, the study 

(the HERA Section 1217 Study) must 

consider and recommend any additional 

regulations, guidance, advisory 

bulletins, or other administrative 

actions necessary to ensure that the 

FHLBanks are not supporting loans with 

predatory characteristics. Section 1217 

of HERA also requires that the public 

have an opportunity to comment on any 

recommendations made as a result of 

the study. This Federal Register Notice 

is intended to inform the public about 

the HERA Section 1217 Study and 

provide the public with the requisite 

opportunity to comment. 

DATES: Comments must be received on 

or before October 2, 2009. 

ADDRESSES: You may submit your 

comments on the HERA Section 1217 

Study, identified by a subject line of 

‘‘HERA Section 1217 Study,’’ by any of 

the following methods: 

• U.S. Mail, United Parcel Post, 

Federal Express, or Other Mail Service: 

The mailing address for comments is: 

Alfred M. Pollard, General Counsel, 

Attention: Comments/HERA Section 

1217 Study, Federal Housing Finance 

Agency, Fourth Floor, 1700 G Street, 

NW., Washington, DC 20552. 

• Hand Delivered/Courier: The hand 

delivery address is: Alfred M. Pollard, 

General Counsel, Attention: Comments/ 

HERA Section 1217 Study, Federal 

Housing Finance Agency, Fourth Floor, 

1700 G Street, NW., Washington, DC 

20552. The package should be logged at 

the Guard Desk, First Floor, on business 

days between 9 a.m. and 5 p.m. 

• E-mail: Comments to Alfred M. 

Pollard, General Counsel, may be sent 

by e-mail at RegComments@fhfa.gov. 

Please include ‘‘HERA Section 1217 

Study’’ in the subject line of the 

message. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. If 

you submit your comment to the 

Federal eRulemaking Portal, please also 

send it by e-mail to FHFA at 

RegComments@fhfa.gov to ensure 

timely receipt by the agency. Please 

include ‘‘HERA Section 1217 Study’’ in 

the subject line of the message. 

FOR FURTHER INFORMATION CONTACT: 

Louis M. Scalza, Associate Director, 

(202) 408–2953 or Linda L. Campbell, 

Senior Bank Examiner, (202) 408–2586, 

Division of Federal Home Loan Bank 

Regulation; or Neil R. Crowley, Deputy 

General Counsel, Office of General 

Counsel, (202) 343–1316, Federal 

Housing Finance Agency, 1625 Eye 

Street, NW., Washington, DC 20006. The 

telephone number for the 

Telecommunications Device for the Deaf 

is (800) 877–8339. 

SUPPLEMENTARY INFORMATION: Section I 

of this Notice provides background on 

FHFA, the FHLBank System, and the 

collateral securing FHLBank advances. 

Section II summarizes the provisions of 

the interagency guidance and three 

Federal Housing Finance Board (FHFB) 

advisory bulletins relating to 

nontraditional, subprime, and antipredatory lending. Section III describes 

the resources used to complete the 

HERA Section 1217 Study, including a 

collateral data survey that FHFA 

conducts annually, in-depth secured 

credit reviews performed during recent 

examinations, and a specific 

questionnaire related to the HERA 

Section 1217 issues that FHFA sent to 

the FHLBanks. Sections IV and V of this 

report present FHFA’s analysis and 

conclusions from the HERA Section 

1217 Study and Section VI requests 

comments on specific related questions. 

The HERA Section 1217 Study reports 

that FHLBanks’ reliance on collateral 

described as nontraditional, subprime or 

Alt-A declined during 2008, accounting 

for about one-fifth of collateral securing 

advances as of December 31, 2008. 

Some portion of this collateral predates 

the issuance of the interagency 

guidance, but the FHLBanks need to 

manage and mitigate the risks associated 

with all of the collateral supporting 

advances. 

FHFA, through advisory bulletins 

issued by the prior regulator of the 

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