Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Rules and Regulations 3331 

1See Safety and Soundness Act, 12 U.S.C. 4513 

and 4631–4641. 

2 Id. 

3See 12 CFR part 1209. 

4See 12 CFR part 1250. 

5See generally, 31 U.S.C. 3801 et seq. 

6See 28 U.S.C. 2461 note. 

7FHFA promulgated its catch-up adjustment of 

its CMPs with an interim final rule published July 

1, 2016. 81 FR 43028. 

8FHFA promulgated its most recent annual 

adjustment of its CMP with a final rule published 

December 29, 2022. 87 FR 80023. 

9See, e.g., 12 CFR 1209.7(c); FHFA Enforcement 

Policy, AB 2013–03 (May 31, 2013). 

Authority: 8 U.S.C. 1101, 1103, 1182, 

1221, 1228, 1229, 8 CFR part 2. 

■ 6. Section 233.6 is revised to read as 

follows: 

§ 233.6 Aliens entering Guam or the 

Commonwealth of the Northern Mariana 

Islands pursuant to Title VII of Public Law 

110–229, ‘‘Consolidated Natural Resources 

Act of 2008.’’ 

A transportation line bringing aliens 

to Guam or the Commonwealth of the 

Northern Mariana Islands under the visa 

waiver provisions of § 212.1(q) of this 

chapter or to the Commonwealth of the 

Northern Mariana Islands under the visa 

waiver provisions of § 212.1(r) of this 

chapter must enter into an agreement on 

CBP Form I–760. Such agreements must 

be negotiated directly by U.S. Customs 

and Border Protection and head offices 

of the transportation lines. 

Alejandro N. Mayorkas, 

Secretary of Homeland Security. 

[FR Doc. 2024–00645 Filed 1–17–24; 8:45 am] 

BILLING CODE 9111–14–P 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Parts 1209, 1217, and 1250 

RIN 2590–AB31 

Rules of Practice and Procedure; Civil 

Money Penalty Inflation Adjustment 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Final rule. 

SUMMARY: The Federal Housing Finance 

Agency (FHFA) is adopting this final 

rule amending its Rules of Practice and 

Procedure and other agency regulations 

to adjust each civil money penalty 

within its jurisdiction to account for 

inflation, pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

DATES: Effective January 18, 2024, and 

applicable beginning January 15, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Frank R. Wright, Assistant General 

Counsel, at (202) 649–3087, 

Frank.Wright@fhfa.gov (not a toll-free 

number); Federal Housing Finance 

Agency, 400 7th Street SW, Washington, 

DC 20219. For TTY/TRS users with 

hearing and speech disabilities, dial 711 

and ask to be connected to any of the 

contact numbers above. 

SUPPLEMENTARY INFORMATION: 

I. Background 

FHFA is an independent agency of the 

Federal government, and the financial 

safety and soundness regulator of the 

Federal National Mortgage Association 

(Fannie Mae) and the Federal Home 

Loan Mortgage Corporation (Freddie 

Mac) (collectively, the Enterprises), as 

well as the Federal Home Loan Banks 

(collectively, the Banks) and the Office 

of Finance under authority granted by 

the Federal Housing Enterprises 

Financial Safety and Soundness Act of 

1992 (Safety and Soundness Act).1

FHFA oversees the Enterprises and 

Banks (collectively, the regulated 

entities) and the Office of Finance to 

ensure that they operate in a safe and 

sound manner and maintain liquidity in 

the housing finance market in 

accordance with applicable laws, rules 

and regulations. To that end, FHFA is 

vested with broad supervisory 

discretion and specific civil 

administrative enforcement powers, 

similar to such authority granted by 

Congress to the Federal bank regulatory 

agencies.2 Section 1376 of the Safety 

and Soundness Act (12 U.S.C. 4636) 

empowers FHFA to impose civil money 

penalties under specific conditions. 

FHFA’s Rules of Practice and Procedure 

(12 CFR part 1209) (the Enforcement 

regulations) govern cease and desist 

proceedings, civil money penalty 

assessment proceedings, and other 

administrative adjudications.3 FHFA’s 

Flood Insurance regulation (12 CFR part 

1250) governs flood insurance 

responsibilities as they pertain to the 

Enterprises.4 FHFA’s Implementation of 

the Program Fraud Civil Remedies Act 

of 1986 regulation (12 CFR part 1217) 

sets forth procedures for imposing civil 

penalties and assessments under the 

Program Fraud Civil Remedies Act (31 

U.S.C. 3801 et seq.) on any person that 

makes a false claim for property, 

services or money from FHFA, or makes 

a false material statement to FHFA in 

connection with a claim, where the 

amount involved does not exceed 

$150,000.5

The Adjustment Improvements Act 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990 (Inflation 

Adjustment Act), as amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Adjustment Improvements Act), 

requires FHFA, as well as other federal 

agencies with the authority to issue civil 

money penalties (CMPs), to adjust by 

regulation the maximum amount of each 

CMP authorized by law that the agency 

has jurisdiction to administer.6 The 

Adjustment Improvements Act required 

agencies to make an initial ‘‘catch-up’’ 

adjustment of their CMPs upon the 

statute’s enactment,7 and further 

requires agencies to make additional 

adjustments on an annual basis 

following the initial adjustment.8

The Adjustment Improvements Act 

sets forth the formula that agencies must 

apply when making annual adjustments, 

based on the percent change between 

the October Consumer Price Index for 

All Urban Consumers (the CPI–U) 

preceding the date of the last adjustment 

and the October CPI–U for the year 

before that. 

II. Description of the Rule 

This final rule adjusts the maximum 

penalty amount within each of the three 

tiers specified in 12 U.S.C. 4636 by 

amending the table contained in 12 CFR 

1209.80 of the Enforcement regulations 

to reflect the new adjusted maximum 

penalty amount that FHFA may impose 

upon a regulated entity or any entityaffiliated party within each tier. The 

increases in maximum penalty amounts 

contained in this final rule may not 

necessarily affect the amount of any 

CMP that FHFA may seek for a 

particular violation, which may not be 

the maximum that the law allows; 

FHFA would calculate each CMP on a 

case-by-case basis in light of a variety of 

factors.9 This rule also adjusts the 

maximum penalty amounts for 

violations under the FHFA Flood 

Insurance regulation by amending the 

text of 12 CFR 1250.3 to reflect the new 

adjusted maximum penalty amount that 

FHFA may impose for violations under 

that regulation. This rule also adjusts 

the maximum amounts for civil money 

penalties under the Program Fraud Civil 

Remedies Act by amending the text of 

12 CFR 1217.3 to reflect the new 

adjusted maximum penalty amount that 

FHFA may impose for violations under 

that regulation. 

The Adjustment Improvements Act 

directs federal agencies to calculate each 

annual CMP adjustment as the percent 

change between the CPI–U for the 

previous October and the CPI–U for 


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3332 Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Rules and Regulations 

10 28 U.S.C. 2461 note. 

11See 87 FR 80023 (December 29, 2022). 

12 28 U.S.C. 2461 note. 

13So in original; no paragraphs (d) and (e) were 

enacted. See 12 U.S.C.A. 4513 n 1. 

14 28 U.S.C. 2461 note, section 4(b)(2). 

15 5 U.S.C. 603. 

16 5 U.S.C. 603(a), 604(a). 

October of the calendar year before.10

The maximum CMP amounts for FHFA 

penalties were last adjusted in 2023.11

Since FHFA is making this round of 

adjustments in calendar year 2024, and 

the maximum CMP amounts were last 

set in calendar year 2023, the inflation 

adjustment amount for each maximum 

CMP amount was calculated by 

comparing the CPI–U for October 2022 

with the CPI–U for October 2023, 

resulting in an inflation factor of 

1.03241. For each maximum CMP 

calculation, the product of this inflation 

adjustment and the previous maximum 

penalty amount was then rounded to the 

nearest whole dollar as required by the 

Adjustment Improvements Act, and was 

then summed with the previous 

maximum penalty amount to determine 

the new adjusted maximum penalty 

amount.12 The tables below set out these 

items accordingly. 

ENFORCEMENT REGULATIONS

U.S. Code citation Description 

Previous 

maximum 

penalty 

amount 

Rounded 

inflation 

increase 

New adjusted 

maximum 

penalty 

amount 

12 U.S.C. 4636(b)(1) ...................................... First Tier ......................................................... 13,760 446 14,206 

12 U.S.C. 4636(b)(2) ...................................... Second Tier .................................................... 68,801 2,230 71,031 

12 U.S.C. 4636(b)(4) ...................................... Third Tier (Entity-affiliated party or Regulated 

entity).

2,752,048 89,194 2,841,242 

PROGRAM FRAUD CIVIL REMEDIES REGULATION

U.S. Code citation Description 

Previous 

maximum 

penalty 

amount 

Rounded 

inflation 

increase 

New adjusted 

maximum 

penalty 

amount 

31 U.S.C. 3802(a)(1) ...................................... Maximum penalty per false claim .................. 13,508 438 13,946 

31 U.S.C 3802(a)(2) ....................................... Maximum penalty per false statement ........... 13,508 438 13,946 

FLOOD INSURANCE REGULATION

U.S. Code citation Description 

Previous 

maximum 

penalty 

amount 

Rounded 

inflation 

increase 

New adjusted 

maximum 

penalty 

amount 

42 U.S.C. 4012a(f)(5) ..................................... Maximum penalty per violation ...................... 669 22 691 

42 U.S.C. 4012a(f)(5) ..................................... Maximum total penalties assessed against 

an Enterprise in a calendar year.

192,996 6,255 199,251 

III. Differences Between the Federal 

Home Loan Banks and the Enterprises 

When promulgating any regulation 

that may have future effect relating to 

the Banks, the Director is required by 

section 1313(f) of the Safety and 

Soundness Act to consider the 

differences between the Banks and the 

Enterprises with respect to the Banks’ 

cooperative ownership structure, 

mission of providing liquidity to 

members, affordable housing and 

community development mission, 

capital structure, and joint and several 

liability (12 U.S.C. 4513(f)).13 The 

Director considered the differences 

between the Banks and the Enterprises, 

as they relate to the above factors, and 

determined that this final rule is 

appropriate. The inflation adjustments 

effected by the final rule are mandated 

by law, and the special features of the 

Banks identified in section 1313(f) of 

the Safety and Soundness Act can be 

accommodated, if appropriate, along 

with any other relevant factors, when 

determining any actual penalties. 

IV. Regulatory Impact 

Administrative Procedure Act 

FHFA finds good cause that notice 

and an opportunity to comment on this 

final rule are unnecessary under section 

553(b) of the Administrative Procedure 

Act (APA), 5 U.S.C. 553(b). The 

Adjustment Improvements Act states 

that the annual civil money penalty 

adjustments shall be made 

notwithstanding the rulemaking 

provisions of 5 U.S.C. 553.14

Furthermore, this rulemaking conforms 

with and is consistent with the statutory 

directive set forth in the Adjustment 

Improvements Act. As a result, there are 

no issues of policy discretion about 

which to seek public comment. 

Accordingly, FHFA is adopting these 

amendments as a final rule. 

Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (RFA),15 an agency must prepare a 

regulatory flexibility analysis for all 

proposed and final rules that describes 

the impact of the rule on small entities, 

unless the head of an agency certifies 

that the rule will not have ‘‘a significant 

economic impact on a substantial 

number of small entities.’’ However, the 

RFA applies only to rules for which an 

agency publishes a general notice of 

proposed rulemaking pursuant to the 

APA.16 As discussed above, FHFA has 

determined for good cause that the APA 

does not require a general notice of 

proposed rulemaking for this rule. Thus, 

the RFA does not apply to this final 

rule. 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 89, No. 12 / Thursday, January 18, 2024 / Rules and Regulations 3333 

17 5 U.S.C. 804(2). 

Congressional Review Act 

The rule is not a ‘‘major rule’’ as 

defined by the Congressional Review 

Act, codified at 5 U.S.C. 801 et seq. The 

rule will not result in: (1) An annual 

effect on the economy of $100,000,000 

or more; (2) a major increase in costs or 

prices; or (3) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

the ability of United States-based 

companies to compete with foreignbased companies.17

Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. 3501 et seq.) requires that 

regulations involving the collection of 

information receive clearance from the 

Office of Management and Budget 

(OMB). This rule contains no such 

collection of information requiring OMB 

approval under the Paperwork 

Reduction Act. Consequently, no 

information has been submitted to OMB 

for review. 

Lists of Subjects 

12 CFR Part 1209 

Administrative practice and 

procedure, Penalties. 

12 CFR Part 1217 

Civil remedies, Program fraud. 

12 CFR Part 1250 

Flood insurance, Governmentsponsored enterprises, Penalties, 

Reporting and record keeping 

requirements. 

Accordingly, for the reasons stated in 

the preamble and under the authority of 

12 U.S.C. 4513b and 12 U.S.C. 4526, the 

Federal Housing Finance Agency hereby 

amends subchapters A and C of chapter 

XII of title 12 of the Code of Federal 

Regulations as follows: 

Subchapter A—Organization and 

Operations 

PART 1209—RULES OF PRACTICE 

AND PROCEDURE 

■ 1. The authority citation for part 1209 

continues to read as follows: 

Authority: 5 U.S.C. 554, 556, 557, and 701 

et seq.; 12 U.S.C. 1430c(d); 12 U.S.C. 4501, 

4502, 4503, 4511, 4513, 4513b, 4517, 4526, 

4566(c)(1) and (c)(7), 4581–4588, 4631–4641; 

and 28 U.S.C. 2461 note. 

■ 2. Revise § 1209.80 to read as follows: 

§ 1209.80 Inflation adjustments. 

The maximum amount of each civil 

money penalty within FHFA’s 

jurisdiction, as set by the Safety and 

Soundness Act and thereafter adjusted 

in accordance with the Inflation 

Adjustment Act, is as follows: 

TABLE 1 TO § 1209.80 

U.S. Code citation Description 

New adjusted 

maximum 

penalty 

amount 

12 U.S.C. 4636(b)(1) .................................................................. First Tier ..................................................................................... $14,206 

12 U.S.C. 4636(b)(2) .................................................................. Second Tier ................................................................................ 71,031 

12 U.S.C. 4636(b)(4) .................................................................. Third Tier (Regulated Entity or Entity-Affiliated party) ............... 2,841,242 

■ 3. Revise § 1209.81 to read as follows: 

§ 1209.81 Applicability. 

The inflation adjustments set out in 

§ 1209.80 shall apply to civil money 

penalties assessed in accordance with 

the provisions of the Safety and 

Soundness Act, 12 U.S.C. 4636, and 

subparts B and C of this part, for 

violations occurring on or after January 

15, 2024. 

PART 1217—PROGRAM FRAUD CIVIL 

REMEDIES ACT 

■ 4. The authority citation for part 1217 

continues to read as follows: 

Authority: 12 U.S.C. 4501; 12 U.S.C. 4526, 

28 U.S.C. 2461 note; 31 U.S.C. 3801–3812. 

■ 5. Amend § 1217.3 by revising 

paragraphs (a)(1) introductory text and 

(b)(1) introductory text to read as 

follows: 

§ 1217.3 Basis for civil penalties and 

assessments. 

(a) * * * 

(1) A civil penalty of not more than 

$13,946 may be imposed upon a person 

who makes a claim to FHFA for 

property, services, or money where the 

person knows or has reason to know 

that the claim: 

* * * * * 

(b) * * * 

(1) A civil penalty of up to $13,946 

may be imposed upon a person who 

makes a written statement to FHFA with 

respect to a claim, contract, bid or 

proposal for a contract, or benefit from 

FHFA that: 

* * * * * 

Subchapter C—Enterprises 

PART 1250—FLOOD INSURANCE 

■ 6. The authority citation for part 1250 

continues to read as follows: 

Authority: 12 U.S.C. 4521(a)(4) and 4526; 

28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42 

U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10). 

■ 7. Amend § 1250.3 by revising 

paragraph (c) to read as follows: 

§ 1250.3 Civil money penalties. 

* * * * * 

(c) Amount. The maximum civil 

money penalty amount is $669 for each 

violation that occurs before January 15, 

2024, with total penalties not to exceed 

$192,996. For violations that occur on or 

after January 15, 2024, the civil money 

penalty under this section may not 

exceed $691 for each violation, with 

total penalties assessed under this 

section against an Enterprise during any 

calendar year not to exceed $199,251. 

* * * * * 

Sandra L. Thompson, 

Director, Federal Housing Finance Agency. 

[FR Doc. 2024–00874 Filed 1–17–24; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2023–2424; Special 

Conditions No. 25–846–SC] 

Special Conditions: Gulfstream 

Aerospace Corporation Model GVIII– 

G700 and GVIII–G800 Series Airplanes; 

Electronic System Security Protection 

From Unauthorized Internal Access 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 


khammond on DSKJM1Z7X2PROD with RULES