77854 Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 

(u) Small bank—(1) Definition. Small 

bank means a bank that, as of December 

31 of either of the prior two calendar 

years, had assets of less than $1.221 

billion. Intermediate small bank means 

a small bank with assets of at least $305 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.221 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 

PART 195—COMMUNITY 

REINVESTMENT 

■ 3. The authority citation for part 195 

continues to read as follows: 

Authority: 12 U.S.C. 1462a, 1463, 1464, 

1814, 1816, 1828(c), 2901 through 2908, and 

5412(b)(2)(B). 

■ 4. Revise § 195.12(u)(1) to read as 

follows: 

§ 195.12 Definitions. 

* * * * * 

(u) Small savings association—(1) 

Definition. Small savings association 

means a savings association that, as of 

December 31 of either of the prior two 

calendar years, had assets of less than 

$1.221 billion. Intermediate small 

savings association means a small 

savings association with assets of at 

least $305 million as of December 31 of 

both of the prior two calendar years and 

less than $1.221 billion as of December 

31 of either of the prior two calendar 

years. 

* * * * * 

Federal Reserve System 

12 CFR Chapter II 

For the reasons set forth in the 

SUPPLEMENTARY INFORMATION section, the 

Board of Governors of the Federal 

Reserve System amends part 228 of 

chapter II of title 12 of the Code of 

Federal Regulations as follows: 

PART 228—COMMUNITY 

REINVESTMENT (REGULATION BB) 

■ 5. The authority citation for part 228 

continues to read as follows: 

Authority: 12 U.S.C. 321, 325, 1828(c), 

1842, 1843, 1844, and 2901 et seq. 

■ 6. Revise § 228.12(u)(1) to read as 

follows: 

§ 228.12 Definitions. 

* * * * * 

(u) Small bank—(1) Definition. Small 

bank means a bank that, as of December 

31 of either of the prior two calendar 

years, had assets of less than $1.221 

billion. Intermediate small bank means 

a small bank with assets of at least $305 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.221 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons set forth in the 

SUPPLEMENTARY INFORMATION section, the 

Board of Directors of the Federal 

Deposit Insurance Corporation amends 

part 345 of chapter III of title 12 of the 

Code of Federal Regulations to read as 

follows: 

PART 345—COMMUNITY 

REINVESTMENT 

■ 7. The authority citation for part 345 

continues to read as follows: 

Authority: 12 U.S.C. 1814–1817, 1819– 

1820, 1828, 1831u and 2901–2908, 3103– 

3104, and 3108(a). 

■ 8. Revise § 345.12(u)(1) to read as 

follows: 

§ 345.12 Definitions. 

* * * * * 

(u) Small bank—(1) Definition. Small 

bank means a bank that, as of December 

31 of either of the prior two calendar 

years, had assets of less than $1.221 

billion. Intermediate small bank means 

a small bank with assets of at least $305 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.221 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 

Dated: December 17, 2014. 

Amy S. Friend, 

Senior Deputy Comptroller and Chief 

Counsel. 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority, December 18, 2014. 

Robert deV. Frierson, 

Secretary of the Board. 

By order of the Board of Directors. 

Dated at Washington, DC, this 18th day of 

December, 2014. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2014–30256 Filed 12–24–14; 8:45 am] 

BILLING CODE 4810–33–P; 6210–01–P; 6714–01–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 commentary. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is issuing 

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 

average of the Consumer Price Index for 

Urban Wage Earners and Clerical 

Workers (CPI–W). The exemption 

threshold is adjusted to increase to $44 

million from $43 million. The 

adjustment is based on the 1.1 percent 

increase in the average of the CPI–W for 

the 12-month period ending in 

November 2014. Therefore, banks, 

savings associations, and credit unions 

with assets of $44 million or less as of 

December 31, 2014, are exempt from 

collecting data in 2015. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

James Wylie, 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 

that 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 

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Federal Register / Vol. 79, No. 248 / Monday, December 29, 2014 / Rules and Regulations 77855 

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 

2014, the threshold was $43 million. 

During the 12-month period ending in 

November 2014, the average of the CPI– 

W increased by 1.1 percent. As a result, 

the exemption threshold is increased to 

$44 million. Thus, banks, savings 

associations, and credit unions with 

assets of $44 million or less as of 

December 31, 2014, are exempt from 

collecting data in 2015. An institution’s 

exemption from collecting data in 2015 

does not affect its responsibility to 

report data it was required to collect in 

2014. 

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. 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. 

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

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 1, 

2015. The amendment in this final rule 

is technical and non-discretionary, 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. 5 U.S.C. 603(a), 604(a). 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3506; 

5 CFR 1320), the agency reviewed this 

final rule. No collections of information 

pursuant to the Paperwork Reduction 

Act are contained in the final rule. 

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 in the 

preamble, 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, 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 2015, the assetsize exemption threshold is $44 million. 

Banks, savings associations, and credit 

unions with assets at or below $44 million 

as of December 31, 2014, are exempt from 

collecting data for 2015. 

* * * * * 

Dated: December 15, 2014. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2014–30404 Filed 12–24–14; 8:45 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending Act (Regulation Z) 

Adjustment to Asset-Size Exemption 

Threshold 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Bureau is amending the 

official commentary that interprets the 

requirements of the Bureau’s Regulation 

Z (Truth in Lending) to reflect a change 

in the asset size threshold for certain 

creditors to qualify for an exemption to 

the requirement to establish an escrow 

account for a higher-priced mortgage 

loan based on the annual percentage 

change in the average of the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers (CPI–W) for the 12- 

month period ending in November. The 

exemption threshold is adjusted to 

increase to $2.060 billion from $2.028 

billion. The adjustment is based on the 

1.1 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2014. Therefore, 

creditors with assets of $2.060 billion or 

less as of December 31, 2014, are 

exempt, if other requirements of 

Regulation Z also are met, from 

establishing escrow accounts for higherpriced mortgage loans in 2015. The 

adjustment to the escrows exemption 

asset-size threshold will also increase a 

similar threshold for small-creditor 

portfolio and balloon-payment qualified 

mortgages. Balloon-payment qualified 

mortgages that satisfy all applicable 

criteria, including being made by 

creditors that do not exceed the assetsize threshold, are also excepted from 

the prohibition on balloon payments for 

high-cost mortgages. 

DATES: This final rule is effective 

January 1, 2015. 

FOR FURTHER INFORMATION CONTACT: 

James Wylie, Counsel, Office of 

Regulations, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (DoddFrank Act) amended TILA section 

129D(a) to contain a general 

requirement that an escrow account be 

established by a creditor to pay for 

property taxes and insurance premiums 

for certain first-lien higher-priced 

mortgage loan transactions. Section 

1461 of the Dodd-Frank Act also 

generally permits an exemption from 

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