[Federal Register Volume 65, Number 125 (Wednesday, June 28, 2000)]
[Rules and Regulations]
[Pages 39786-39788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16287]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

12 CFR Part 1700

RIN 2550-AA10


Organization and Functions

AGENCY: Office of Federal Housing Enterprise Oversight, HUD.

ACTION: Final rule.

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SUMMARY: The Office of Federal Housing Enterprise Oversight (OFHEO) is 
revising its regulations that describe the Agency's organization and 
functions. The revisions reflect changes in the organizational 
structure of the Agency and the functional responsibilities of its 
offices. The revisions include a summary of two new offices and a 
reference to the location of OFHEO's website.
    In promulgating this rule, OFHEO finds that notice and public 
comment are not necessary. Section 553(b)(3)(A) of Title 5, United 
States Code, provides that when regulations involve matters of agency 
organization, procedure or practice, the Agency may publish regulations 
in final form. In addition, OFHEO finds, in accordance with 5 U.S.C. 
553(d), that a delayed effective date is unnecessary. Accordingly, 
these regulations are effective upon publication.

EFFECTIVE DATE: The final rule is effective June 28, 2000.

FOR FURTHER INFORMATION CONTACT: Christine C. Dion, Associate General 
Counsel, telephone (202) 414-3838 (not a toll-free number), Office of 
Federal Housing Enterprise Oversight, Fourth Floor, 1700 G Street, NW., 
Washington, DC 20552. The telephone number for the Telecommunications 
Device for the Deaf is (800) 877-8339.

SUPPLEMENTARY INFORMATION:

Discussion of the Final Regulation

    This final rule informs the public about structural and functional 
changes within OFHEO that were recently implemented by the Director. 
Changes in the Agency's structure consist of the establishment of the 
``Office of Information Technology'' and the ``Office of Strategic 
Planning and Management''.
    The function of the ``Office of Information Technology'' is to 
plan, develop, secure, maintain, and assure the quality of OFHEO 
information systems and records management functions. The functions of 
the ``Office of Strategic Planning and Management''are to assist the 
Director in developing and maintaining a long-term strategic plan that 
is consistent with the mission of OFHEO, and to facilitate efforts to 
ensure that agency activities and operations are consistent with its 
strategic plan. This office also is responsible for leading the 
development of OFHEO's Annual Performance Plans and Annual Performance 
Reports.
    Functional changes made by the Director to existing OFHEO offices 
are reflected in the offices' new titles. The ``Office of Research, 
Analysis and Capital Standards'' has been renamed the ``Office of Risk 
Analysis and Model Development''. This new title indicates that this 
office's principal functions are to develop and apply econometric, 
financial, and accounting models to evaluate the credit and interest 
rate risks of Freddie Mac and Fannie Mae (collectively, the 
``Enterprises''), and to undertake related research and analyses. 
Notably, this office has developed and continues to maintain and 
enhance the set of models used for stress tests of the Enterprises, 
including the stress test to determine risk-based capital requirements, 
as required by OFHEO's enabling statute.\1\ In addition to risk 
analysis and model development, this office has ongoing responsibility 
for determining the capital classifications of the Enterprises in order 
to ensure their capital adequacy.
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    \1\ Federal Housing Enterprises Financial Safety and Soundness 
Act of 1992, Title XIII, Pub. L. 102-550, 106 Stat. 3941 et seq. 
(Oct. 29, 1992), section 1361.
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    Moreover, the ``Office of the Chief Economist'' has been renamed 
the ``Office of Policy Analysis and Research''. The name change 
reflects that the office's primary function is conducting research and 
policy analysis to assess and project the short- and long-term impact 
of issues and trends in housing finance. In addition to performing 
research and analyses, this office is responsible for developing policy 
options and making recommendations on a broad range of

[[Page 39787]]

issues relevant to OFHEO's regulatory oversight.
    Although its functions have not changed, the ``Office of 
Congressional and Public Affairs'' has been renamed the ``Office of 
External Relations'' to represent its broader external 
responsibilities, including the coordination and communication with 
Congress, the news media and the public. The head of the office, the 
Associate Director for External Relations, continues to serve as 
spokesperson for OFHEO.
    The ``Office of the General Counsel'' is not included in this rule 
because its functions and name have not changed. The ``Office of 
Examination Oversight'' and the ``Office of Finance and 
Administration'' are included in order to provide more detail about 
their functions.
    This rule also references OFHEO's website where, among other 
things, the public may learn about the Agency. To that end, OFHEO's 
website includes an organizational chart, which reflects the Agency's 
structure noted in this rule.

Regulatory Impact

Executive Order 12866, Regulatory Planning and Review

    This final rule is not classified as a significant rule under 
Executive Order 12866 because it will not result in: (1) An annual 
effect on the economy of $100 million or more; (2) a major increase in 
costs or prices for consumers, individual industries, Federal, State, 
or local government agencies, or geographic regions; or (3) significant 
adverse effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic or foreign markets. 
Accordingly, no regulatory impact assessment is required and this final 
rule has not been submitted to the Office of Management and Budget for 
review.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
a rule that has a significant economic impact on a substantial number 
of small entities, small businesses, or small organizations must 
include an initial regulatory flexibility analysis describing the 
regulation's impact on small entities. Such an analysis need not be 
undertaken if the Agency has certified that the regulation will not 
have a significant economic impact on a substantial number of small 
entities. 5 U.S.C. 605(b). OFHEO has considered the impact of this 
final rule under the Regulatory Flexibility Act. The General Counsel 
certifies that this final rule will not have a significant economic 
impact on a substantial number of small business entities.

Paperwork Reduction Act

    This final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

Unfunded Mandates Reform Act of 1995

    This final rule does not require the preparation of an assessment 
statement in accordance with the Unfunded Mandates Reform Act of 1995, 
2 U.S.C. 1531. Assessment statements are not required for regulations 
that incorporate requirements specifically set forth in law. As 
explained in the preamble, this rule implements specific statutory 
requirements. In addition, this rule does not include a Federal mandate 
that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more (adjusted annually for inflation) in any one year.

List of Subjects in 12 CFR Part 1700

    Organization and functions (Government agencies).

    For the reasons stated in the preamble, OFHEO is amending 12 CFR 
part 1700 as follows:

PART 1700--ORGANIZATION AND FUNCTIONS

    1. The authority citation for part 1700 continues to read as 
follows:

    Authority: 5 U.S.C. 552; 12 U.S.C. 4513, 4526.


    2. Section 1700.2 is amended by:
    A. Revising paragraphs (c)(1), (c)(2), (c)(3), (c)(5) and (c)(6);
    B. Adding paragraphs (c)(7) and (c)(8); and
    C. Revising paragraph (d).


Sec. 1700.2  Organization of the Office of Federal Housing Enterprise 
Oversight.

* * * * *
    (c) Offices and functions. (1) Office of Examination and Oversight. 
The Office of Examination and Oversight plans and conducts examinations 
of the Enterprises, as required by the Act, prepares and issues reports 
of examination summarizing the financial condition and management 
practices of each Enterprise, and recommends corrective and 
preventative actions as appropriate. This office also is responsible 
for off-site financial safety and soundness monitoring.
    (2) Office of Risk Analysis and Model Development. The Office of 
Risk Analysis and Model Development develops and applies econometric, 
financial and accounting models to evaluate the credit and interest 
rate risks of the Enterprises, and undertakes other related research 
and analyses. This office has developed and continues to maintain and 
enhance the set of models used for stress tests of the Enterprises, 
including the stress test to determine risk-based capital requirements, 
as required by the Act. This office is responsible for applying minimum 
and risk-based capital requirements in determining the capital 
classifications of the Enterprises in order to ensure their capital 
adequacy.
    (3) Office of Finance and Administration. The Office of Finance and 
Administration provides support services in all areas of financial and 
administrative management of OFHEO. This office is responsible for 
developing, managing and implementing agency policies and procedures 
governing: (i) All human resources functions, including payroll; (ii) 
Support for all facility and supply requirements; (iii) Agency 
contracting and procurement programs; and (iv) Agency financial 
management, budgeting and accounting functions, including travel, 
internal controls and financial reporting.
* * * * *
    (5) Office of External Relations. The Office of External Relations 
is responsible for coordinating and communicating on behalf of OFHEO 
with the Congress, for monitoring relevant legislative developments, 
and for analyzing and assisting the Director in developing legislative 
proposals. This office also is responsible for directing and 
coordinating communication with the news media and the public. The 
Associate Director for Public Affairs serves as spokesperson for OFHEO.
    (6) Office of Policy Analysis and Research. The Office of Policy 
Analysis and Research conducts research and policy analysis to assess 
and project the short- and long-term impact of issues and trends in 
housing finance on OFHEO's regulatory and supervisory responsibilities. 
This office also develops policy options and makes recommendations to 
the Director on a broad range of issues.
    (7) Office of Information Technology. The Office of Information 
Technology plans, develops, secures, maintains, and assures the quality 
of the OFHEO information systems and records

[[Page 39788]]

management functions. This office is responsible for establishing and 
implementing policies, procedures and standards in the following areas: 
information systems development and procurement, office automation, 
records management, information systems security and other information 
technology-related services.
    (8) Office of Strategic Planning and Management. The Office of 
Strategic Planning and Management assists the Director in developing 
and maintaining a long term strategic plan that is consistent with the 
mission of OFHEO and facilitates efforts to ensure that the activities 
and operations of the Agency are consistent with the strategic plan. 
This office also is responsible for leading the development of OFHEO's 
Annual Performance Plans and Annual Performance Reports.
    (d) Additional information. Current information on the organization 
of OFHEO may be obtained by mail from the Office of External Affairs, 
1700 G Street NW, 4th Floor, Washington, DC 20552. Such information, as 
well as other OFHEO information, also may be obtained electronically by 
accessing OFHEO's website located at ``www.OFHEO.gov''.

    Dated: June 22, 2000.
Armando Falcon, Jr.,
Director, Office of Federal Housing Enterprise Oversight.
[FR Doc. 00-16287 Filed 6-27-00; 8:45 am]
BILLING CODE 4226-01-U