Federal Register / Vol. 74, No. 154 / Wednesday, August 12, 2009 / Rules and Regulations 40477 

(iii) Documentation verifying the 

member of the armed forces was killed 

while on active duty. 

(2) A spouse may receive only one 

noncompetitive appointment under this 

section to a permanent position per the 

service member’s orders authorizing a 

permanent change of station. 

(3) Any law, Executive order, or 

regulation that disqualifies an applicant 

for appointment also disqualifies a 

spouse for appointment under this 

section. 

(e) Proof of Eligibility. (1) Prior to 

appointment, the spouse of a member of 

the armed forces as defined in 

paragraph (b)(4)(i) of this section must 

submit to the employing agency: 

(i) A copy of the service member’s 

active duty orders which authorize a 

permanent change of station. This 

authorization must include: 

(A) A statement authorizing the 

service member’s spouse to accompany 

the member to the new permanent duty 

station; 

(B) The specific location to which the 

member of the armed forces is to be 

assigned, reassigned, or transferred 

pursuant to permanent change of station 

orders; and 

(C) The effective date of the 

permanent change of station; and 

(ii) Documentation verifying marriage 

to the member of the armed forces (i.e., 

a marriage license or other legal 

documentation verifying marriage). 

(2) Prior to appointment, the spouse 

of a member of the armed forces as 

defined in paragraph (b)(4)(ii) of this 

section must submit to the employing 

agency copies of: 

(i) Documentation showing the 

member of the armed forces was 

released or discharged from active duty 

due to a service-connected disability; 

(ii) Documentation showing the 

member of the armed forces retired, or 

was released or discharged from active 

duty, with a disability rating of 100 

percent; and 

(iii) Documentation verifying marriage 

to the member of the armed forces (i.e., 

a marriage license or other legal 

documentation verifying marriage). 

(3) Prior to appointment, the spouse 

of a member of the armed forces as 

defined in paragraph (b)(4)(iii) of this 

section must submit to the employing 

agency copies of: 

(i) Documentation showing the 

individual was released or discharged 

from active duty due to his or her death 

while on active duty; 

(ii) Documentation verifying the 

member of the armed forces was killed 

while serving on active duty; and 

(iii) Documentation verifying marriage 

to the member of the armed forces (i.e., 

a marriage license or other legal 

documentation verifying marriage); and 

(iv) A statement certifying that he or 

she is the un-remarried widow or 

widower of the service member. 

(f) Acquisition of competitive status. 

A person appointed under paragraph (a) 

of this section acquires competitive 

status automatically upon completion of 

probation. 

(g) Tenure on appointment. An 

appointment under paragraph (a) of this 

section is career-conditional unless the 

appointee has already satisfied the 

requirements for career tenure or is 

exempt from the service requirement 

pursuant to § 315.201. 

PART 316—TEMPORARY AND TERM 

EMPLOYMENT 

■ 3. The authority citation for part 316 

continues to read as follows: 

Authority: 5 U.S.C. 3301, 3302; E.O. 10577, 

3 CFR, 1954–1958 Comp., p. 218. 

■ 4. Section 316.302(b)(3) is revised to 

read as follows: 

§ 316.302 Selection of term employees. 

* * * * * 

(b) * * * 

(3) Career-conditional appointment 

under § 315.601, 315.604, 315.605, 

315.606, 315.607, 315.608, 315.609, 

315.612, or 315.711 of this chapter; 

* * * * * 

■ 5. Section 316.402(b)(3) is revised to 

read as follows: 

§ 316.402 Procedures for making 

temporary appointments. 

* * * * * 

(b) * * * 

(3) Career-conditional appointment 

under § 315.601, 315.604, 315.605, 

315.606, 315.607, 315.608, 315.609, 

315.612, 315.703, or 315.711 of this 

chapter. 

* * * * * 

[FR Doc. E9–19340 Filed 8–11–09; 8:45 am] 

BILLING CODE 6325–39–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 226 

[Regulation Z; Docket No. R–1365] 

Truth in Lending 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule; staff commentary. 

SUMMARY: The Board is publishing a 

final rule amending the staff 

commentary that interprets the 

requirements of Regulation Z (Truth in 

Lending). The Board is required to 

adjust annually the dollar amount that 

triggers requirements for certain home 

mortgage loans bearing fees above a 

certain amount. The Home Ownership 

and Equity Protection Act of 1994 

(HOEPA) sets forth rules for homesecured loans in which the total points 

and fees payable by the consumer at or 

before loan consummation exceed the 

greater of $400 or 8 percent of the total 

loan amount. In keeping with the 

statute, the Board has annually adjusted 

the $400 amount based on the annual 

percentage change reflected in the 

Consumer Price Index as reported on 

June 1st. The adjusted dollar amount for 

2010 is $579. 

DATES: Effective Date: January 1, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Dana Miller, Attorney, Division of 

Consumer and Community Affairs, 

Board of Governors of the Federal 

Reserve System, at (202) 452–3667. For 

the users of Telecommunications Device 

for the Deaf (‘‘TDD’’) only, contact (202) 

263–4869. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Truth in Lending Act (TILA; 15 

U.S.C. 1601–1666j) requires creditors to 

disclose credit terms and the cost of 

consumer credit as an annual 

percentage rate. The act requires 

additional disclosures for loans secured 

by a consumer’s home, and permits 

consumers to cancel certain transactions 

that involve their principal dwelling. 

TILA is implemented by the Board’s 

Regulation Z (12 CFR part 226). The 

Board’s official staff commentary (12 

CFR part 226 (Supp. I)) interprets the 

regulation, and provides guidance to 

creditors in applying the regulation to 

specific transactions. 

In 1995, the Board published 

amendments to Regulation Z 

implementing HOEPA, contained in the 

Riegle Community Development and 

Regulatory Improvement Act of 1994, 

Public Law 103–325, 108 Stat. 2160 (60 

FR 15463). These amendments, 

contained in §§ 226.32 and 226.34 of the 

regulation, impose substantive 

limitations and additional disclosure 

requirements on certain closed-end 

home mortgage loans bearing rates or 

fees above a certain percentage or 

amount. As enacted, the statute requires 

creditors to comply with the HOEPA 

rules if the total points and fees payable 

by the consumer at or before loan 

consummation exceed the greater of 

$400 or 8 percent of the total loan 

amount. TILA and Regulation Z provide 

that the $400 figure shall be adjusted 

annually on January 1 by the annual 


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40478 Federal Register / Vol. 74, No. 154 / Wednesday, August 12, 2009 / Rules and Regulations 

percentage change in the Consumer 

Price Index (CPI) that was reported on 

the preceding June 1. 15 U.S.C. 

1602(aa)(3) and 12 CFR 226.32(a)(1)(ii). 

The Board adjusted the $400 amount to 

$583 for the year 2009. 

The Bureau of Labor Statistics 

publishes consumer-based indices 

monthly, but does not report a CPI 

change on June 1; adjustments are 

reported in the middle of each month. 

The Board uses the CPI–U index, which 

is based on all urban consumers and 

represents approximately 87 percent of 

the U.S. population, as the index for 

adjusting the $400 dollar figure. The 

adjustment to the CPI–U index reported 

by the Bureau of Labor Statistics on May 

15, 2009 was the CPI–U index in effect 

on June 1, and reflects the percentage 

change from April 2008 to April 2009. 

The adjustment to the $400 figure below 

reflects a 0.74 percent decrease in the 

CPI–U index for this period and is 

rounded to whole dollars for ease of 

compliance. 

The fee trigger being adjusted in this 

Federal Register notice pursuant to 

TILA section 103(aa) is used in 

determining whether a loan is covered 

by section 226.32 of Regulation Z. Such 

loans have generally been known as 

‘‘HOEPA loans.’’ In July 2008, the Board 

revised Regulation Z to adopt additional 

protections for ‘‘higher-priced’’ loans, 

using its authority under TILA section 

129(l)(2). Those revisions define a class 

of dwelling-secured transactions, 

described in section 226.35 of 

Regulation Z, using a threshold based 

on average market rates that the Board 

publishes on a regular basis. The 

adjustment published today does not 

affect the triggers issued in July 2008 for 

higher-priced loans. 

II. Adjustment and Commentary 

Revision 

Effective January 1, 2010, for purposes 

of determining whether a home 

mortgage transaction is covered by 12 

CFR 226.32 (based on the total points 

and fees payable by the consumer at or 

before loan consummation), a loan is 

covered if the points and fees exceed the 

greater of $579 or 8 percent of the total 

loan amount. Comment 32(a)(1)(ii)–2, 

which lists the adjustments for each 

year, is amended to reflect the dollar 

adjustment for 2010. Because the timing 

and method of the adjustment is set by 

statute, the Board finds that notice and 

public comment on the change are 

unnecessary. 

III. Regulatory Flexibility Analysis 

The Board certifies that this 

amendment to Regulation Z will not 

have a significant economic impact on 

a substantial number of small entities. 

The only change is to lower the 

threshold for transactions requiring 

HOEPA disclosures. This change is 

mandated by statute. 

List of Subjects in 12 CFR Part 226 

Advertising, Federal Reserve System, 

Mortgages, Reporting and recordkeeping 

requirements, Truth in lending. 

■ For the reasons set forth in the 

preamble, the Board amends Regulation 

Z, 12 CFR part 226, as set forth below: 

PART 226—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 226 

continues to read as follows: 

Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 

and 1637(c)(5). 

■ 2. In Supplement I to Part 226, under 

Section 226.32—Requirements for 

Certain Closed-End Home Mortgages, 

under Paragraph 32(a)(1)(ii), paragraph 

2. xv. is added. 

Supplement I to Part 226—Official Staff 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain 

Home Mortgage Transactions 

* * * * * 

Section 226.32—Requirements for 

Certain Closed-End Home Mortgages 

32(a) Coverage 

* * * * * 

Paragraph 32(a)(1)(ii) 

* * * * * 

2. Annual adjustment of $400 amount. 

* * * * * 

xv. For 2010, $579, reflecting a 0.74 

percent decrease in the CPI–U from June 

2008 to June 2009, rounded to the nearest 

whole dollar. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Director of the Division of Consumer and 

Community Affairs under delegated 

authority, August 6, 2009. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. E9–19254 Filed 8–11–09; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 308 and 363 

RIN 3064–AD21 

Annual Independent Audits and 

Reporting Requirements 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Final rule; correction. 

SUMMARY: On July 20, 2009, the FDIC 

published in the Federal Register a final 

rule amending part 363 of its regulations 

concerning annual independent audits 

and reporting requirements for certain 

insured depository institutions, which 

implements section 36 of the Federal 

Deposit Insurance Act (FDI Act), largely 

as proposed, but with certain 

modifications made in response to the 

comments received and making a 

technical amendment to its rules and 

procedures (part 308, subpart U) for the 

removal, suspension, or debarment of 

accountants and accounting firms. The 

publication of the final rule corrected 

certain errors in the original publication 

of the final rule, which had been 

published in the Federal Register on 

July 7, 2009. It has come to the attention 

of the FDIC that the July 20 republication included one additional 

error. This correction will rectify that 

oversight. 

DATES: Effective Date: This correction is 

effective August 6, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Harrison E. Greene, Jr., Senior Policy 

Analyst (Bank Accounting), Division of 

Supervision and Consumer Protection, 

at hgreene@fdic.gov or (202) 898–8905; 

or Michelle Borzillo, Senior Counsel, 

Corporate and Legal Operations Section, 

Legal Division, at mborzillo@fdic.gov or 

(202) 898–7400. 

SUPPLEMENTARY INFORMATION: On July 

20, 2009, the FDIC published in the 

Federal Register a final rule amending 

part 363 of its regulations concerning 

annual independent audits and 

reporting requirements for certain 

insured depository institutions, which 

implements section 36 of the Federal 

Deposit Insurance Act (FDI Act), largely 

as proposed, but with certain 

modifications made in response to the 

comments received and making a 

technical amendment to its rules and 

procedures (part 308, subpart U) for the 

removal, suspension, or debarment of 

accountants and accounting firms. The 

July 20, 2009, publication of the final 

rule corrected certain errors in the 

original publication of the final rule, 

which had been published in the 


jlentini on DSKJ8SOYB1PROD with RULES