Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 1659 

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. 

PENALTIES APPLICABLE TO FEDERAL SAVINGS ASSOCIATIONS—Continued 

U.S. code citation CMP description 

Maximum 

penalty 

amount 

(in dollars) 8

12 U.S.C. 

1820(k)(6)(A)(ii).

Violation of Post-Employment Restrictions: 

Per violation ..................................................................................................................................... 362,217 

12 U.S.C. 1832(c) .......... Violation of Withdrawals by Negotiable or Transferable Instruments for Transfers to Third Parties: 

Per violation ..................................................................................................................................... 2,907 

12 U.S.C. 1884 .............. Violation of the Bank Protection Act ....................................................................................................... 320 

12 U.S.C. 1972(2)(F) ..... Violation of Provisions regarding Correspondent Accounts, Unsafe or Unsound Practices, or Breach 

of Fiduciary Duty: 

Tier 1 ................................................................................................................................................ 11,011 

Tier 2 ................................................................................................................................................ 55,052 

Tier 3 ................................................................................................................................................ 2 2,202,123 

15 U.S.C. 78u–2(b) ........ Violations of Various Provisions of the Securities Act, the Securities Exchange Act, the Investment 

Company Act, or the Investment Advisers Act: 

1st Tier (natural person)—Per violation ........................................................................................... 10,360 

1st Tier (other person)—Per violation ............................................................................................. 103,591 

2nd Tier (natural person)—Per violation ......................................................................................... 103,591 

2nd Tier (other person)—Per violation ............................................................................................ 517,955 

3rd Tier (natural person)—Per violation .......................................................................................... 207,183 

3rd Tier (other person)—Per violation ............................................................................................. 1,035,909 

15 U.S.C. 1639e(k) ........ Violation of Appraisal Independence Requirements: 

First violation .................................................................................................................................... 12,647 

Subsequent violations ...................................................................................................................... 25,293 

42 U.S.C. 4012a(f)(5) .... Flood Insurance: 

Per violation ..................................................................................................................................... 2,392 

8The maximum penalty amount is per day, unless otherwise indicated. 

2The maximum penalty amount for a federal savings association is the lesser of this amount or 1 percent of total assets. 

3These amounts also apply to statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 

U.S.C. 1607, 1681s, 1691c, and 1692l. 

Benjamin W. McDonough, 

Senior Deputy Comptroller and Chief 

Counsel, Office of the Comptroller of the 

Currency. 

[FR Doc. 2022–00109 Filed 1–11–22; 8:45 am] 

BILLING CODE 4810–33–P 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Parts 1209, 1217, and 1250 

RIN 2590–AA43 

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 12, 2022, and 

applicable beginning January 15, 2022. 

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 


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1660 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 

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 

January 29, 2021. 86 FR 7493. 

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

Policy, AB 2013–03 (May 31, 2013). 

10 28 U.S.C. 2461 note. 

11See 86 FR 7493 (January 29, 2021). 

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. 

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 

October of the calendar year before.10

The maximum CMP amounts for FHFA 

penalties were last adjusted in 2021.11

Since FHFA is making this round of 

adjustments in calendar year 2022, and 

the maximum CMP amounts were last 

set in calendar year 2021, the inflation 

adjustment amount for each maximum 

CMP amount was calculated by 

comparing the CPI–U for October 2020 

with the CPI–U for October 2021, 

resulting in an inflation factor of 

1.06222. 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. 

U.S. Code citation Description 

Previous 

maximum 

penalty amount 

Rounded 

inflation 

increase 

New adjusted 

maximum 

penalty amount 

Enforcement Regulations 

12 U.S.C. 4636(b)(1) ............ First Tier ............................................................................ 12,023 748 12,771 

12 U.S.C. 4636(b)(2) ............ Second Tier ....................................................................... 60,115 3,740 63,855 

12 U.S.C. 4636(b)(4) ............ Third Tier (Entity-affiliated party or Regulated entity) ...... 2,404,608 149,615 2,554,223 

Program Fraud Civil Remedies Regulation 

31 U.S.C. 3802(a)(1) ............ Maximum penalty per false claim ..................................... 11,803 734 12,537 

31 U.S.C. 3802(a)(2) ............ Maximum penalty per false statement .............................. 11,803 734 12,537 

Flood Insurance Regulation 

42 U.S.C. 4012a(f)(5) ........... Maximum penalty per violation ......................................... 585 36 621 

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

in a calendar year.

168,631 10,492 179,123 

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. 


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Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 1661 

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). 

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

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. 

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 .................................................................................................................... $12,771 

12 U.S.C. 4636(b)(2) ............................... Second Tier ............................................................................................................... 63,855 

12 U.S.C. 4636(b)(4) ............................... Third Tier (Regulated Entity or Entity-Affiliated party) .............................................. 2,554,223 

■ 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, 2022. 

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 

$12,537 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 $12,537 

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: 


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1662 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Rules and Regulations 

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 $621 for each 

violation that occurs before January 15, 

2022, with total penalties not to exceed 

$179,123. For violations that occur on or 

after January 15, 2022, the civil money 

penalty under this section may not 

exceed $621 for each violation, with 

total penalties assessed under this 

section against an Enterprise during any 

calendar year not to exceed $179,123. 

* * * * * 

Sandra L. Thompson, 

Acting Director, Federal Housing Finance 

Agency. 

[FR Doc. 2022–00361 Filed 1–11–22; 8:45 am] 

BILLING CODE 8070–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2021–0484; Special 

Conditions No. 25–794–SC] 

Special Conditions: Learjet, Inc.; 

Electronic System Security Protection 

From Unauthorized External Access 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for a supplemental type 

certificate on certain transport category 

airplanes. These airplanes, as modified 

by Learjet, Inc. (Learjet), will have a 

novel or unusual design feature when 

compared to the state of technology 

envisioned in the airworthiness 

standards for transport-category 

airplanes. This design feature is the 

installation of a system that allows 

connection to airplane electronics and 

networks, and access from aircraft 

external sources (e.g., operator 

networks, wireless devices, internet 

connectivity, service provider satellite 

communications, electronic flight bags, 

etc.) to the previously isolated airplane 

electronic assets (networks, systems, 

and databases). The applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for this design feature. These special 

conditions contain the additional safety 

standards that the Administrator 

considers necessary to establish a level 

of safety equivalent to that established 

by the existing airworthiness standards. 

DATES: This action is effective on Learjet 

on January 12, 2022. Send comments on 

or before February 28, 2022. 

ADDRESSES: Send comments identified 

by Docket No. FAA–2021–0484 using 

any of the following methods: 

• Federal eRegulations Portal: Go to 

https://www.regulations.gov/ and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: Except for Confidential 

Business Information (CBI) as described 

in the following paragraph, and other 

information as described in title 14, 

Code of Federal Regulations (14 CFR) 

11.35, the FAA will post all comments 

received without change to https://

www.regulations.gov/, including any 

personal information you provide. The 

FAA will also post a report 

summarizing each substantive verbal 

contact received about these special 

conditions. 

Confidential Business Information: 

Confidential Business Information (CBI) 

is commercial or financial information 

that is both customarily and actually 

treated as private by its owner. Under 

the Freedom of Information Act (FOIA) 

(5 U.S.C. 552), CBI is exempt from 

public disclosure. If your comments 

responsive to these special conditions 

contain commercial or financial 

information that is customarily treated 

as private, that you actually treat as 

private, and that is relevant or 

responsive to these special conditions, it 

is important that you clearly designate 

the submitted comments as CBI. Please 

mark each page of your submission 

containing CBI as ‘‘PROPIN.’’ The FAA 

will treat such marked submissions as 

confidential under the FOIA, and the 

indicated comments will not be placed 

in the public docket of these special 

conditions. Send submissions 

containing CBI to the person indicated 

in the Contact section below. Comments 

the FAA receives, which are not 

specifically designated as CBI, will be 

placed in the public docket for this 

rulemaking. 

Docket: Background documents or 

comments received may be read at 

https://www.regulations.gov/ at any 

time. Follow the online instructions for 

accessing the docket or go to Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE, Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Varun Khanna, Aircraft Information 

Systems Section, AIR–622, Technical 

Innovation Policy Branch, Policy and 

Innovation Division, Aircraft 

Certification Service, Federal Aviation 

Administration, 2200 South 216th 

Street, Des Moines, Washington 98198; 

telephone and fax 206–231–3159; email 

varun.khanna@faa.gov. 

SUPPLEMENTARY INFORMATION: The 

substance of these special conditions 

has been published in the Federal 

Register for public comment in several 

prior instances with no substantive 

comments received. Therefore, the FAA 

finds, pursuant to § 11.38(b), that new 

comments are unlikely, and notice and 

comment prior to this publication are 

unnecessary. 

Comments Invited 

The FAA invites interested people to 

take part in this rulemaking by sending 

written comments, data, or views. The 

most helpful comments reference a 

specific portion of the special 

conditions, explain the reason for any 

recommended change, and include 

supporting data. 

The FAA will consider all comments 

received by the closing date for 

comments. The FAA may change these 

special conditions based on the 

comments received. 

Background 

On May 15, 2020, Learjet applied for 

a supplemental type certificate to install 

an Aircraft Health Management System 

(AHMS) in the airplanes listed on the 

approved model list (AML) for STC No. 

ST01970WI. These airplanes are supermidsize-category business jets with 

maximum passenger capacity of 16. 

These airplanes have a maximum 

takeoff weight of 38,850 pounds. 

Type Certification Basis 

Under the provisions of 14 CFR 

21.101, Learjet must show that airplanes 

for which they make application to 

modify by STC no. ST01970WI, as 

changed, continue to meet the 

applicable provisions of the regulations 


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