79286 Federal Register / Vol. 78, No. 250 / Monday, December 30, 2013 / Rules and Regulations 

For these reasons, the Bureau has 

determined that publishing a notice of 

proposed rulemaking and providing 

opportunity for public comment are 

unnecessary and 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, 

2014. The amendment in this notice is 

technical and non-discretionary, and it 

applies the method previously 

established in the agency’s regulations 

for determining adjustments to the 

threshold. 

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). 

List of Subjects in 12 CFR Part 1003 

Banks, Banking, Credit unions, 

Mortgages, National banks, Savings 

associations, Reporting and 

recordkeeping requirements. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau of Consumer 

Financial Protection amends 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 2014, the assetsize exemption threshold is $43 million. 

Banks, savings associations, and credit 

unions with assets at or below $43 million 

as of December 31, 2013, are exempt from 

collecting data for 2014. 

* * * * * 

Dated: December 24, 2013. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2013–31223 Filed 12–26–13; 11:15 am] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1026 

Truth in Lending (Regulation Z): 

Adjustment to Asset-Size Exemption 

Threshold 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Final rule; official commentary. 

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 $2.028 billion from $2 

billion. The adjustment is based on the 

1.4 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2013. Therefore, 

creditors with assets of $2.028 billion or 

less as of December 31, 2013, are 

exempt, if other requirements of 

Regulation Z also are met, from 

establishing escrow accounts for higherpriced mortgage loans in 2014. 

DATES: This final rule is effective 

January 1, 2014. 

FOR FURTHER INFORMATION CONTACT: 

David Friend, Counsel, Office of 

Regulations, Consumer Financial 

Protection Bureau, 1700 G Street NW., 

Washington, DC 20552 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 

the higher-priced mortgage loan escrow 

requirement for a creditor that: (1) 

Operates predominantly in rural or 

underserved areas; (2) together with all 

affiliates, has total annual mortgage loan 

originations that do not exceed a limit 

set by the Bureau; (3) retains its 

mortgage obligations in portfolio; and 

(4) meets any asset-size threshold and 

any other criteria as the Bureau may 

establish. 

In the 2013 Escrows Final Rule, 78 FR 

4726 (January 22, 2013), the Bureau 

established such an asset-size threshold 

of $2,000,000,000, which will adjust 

automatically each year, based on the 

year-to year change in the average of the 

CPI–W for each 12-month period ending 

in November, with rounding to the 

nearest million dollars. See 12 CFR 

1026.35(b)(2)(iii)(C). For 2013, the 

threshold was $2 billion. During the 12- 

month period ending in November 

2013, the average CPI–W increased by 

1.4 percent. As a result, the exemption 

threshold is increased to $2.028 billion 

for 2014. Thus, loans made by creditors 

with assets of $2.028 billion or less as 

of December 31, 2013, that meet the 

other requirements of 12 CFR 

1026.35(b)(2)(iii) will be exempt in 2014 

from the escrow-accounts requirement 

for higher-priced mortgage loans. 

II. Procedural Requirements 

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, supplement I and 

comment 35(b)(2)(iii)–1 in Regulation Z, 

are amended to update the exemption 

threshold. The amendment in this final 

rule is technical and nondiscretionary, 

and it merely applies the formulas 

established by Regulation X 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 and 

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 


wreier-aviles on DSK5TPTVN1PROD with RULES
Federal Register / Vol. 78, No. 250 / Monday, December 30, 2013 / Rules and Regulations 79287 

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, 

2014. The amendment in this notice is 

technical and non-discretionary, and it 

applies the method previously 

established in the agency’s regulations 

for automatic adjustments to the 

threshold. 

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). 

List of Subjects in 12 CFR Part 1026 

Advertising, Consumer protection, 

Credit, Credit unions, Mortgages, 

National banks, Reporting and 

recordkeeping requirements, Savings 

associations, Truth in lending. 

Authority and Issuance 

For the reasons set forth in the 

preamble, the Bureau amends 

Regulation Z, 12 CFR part 1026, as set 

forth below: 

PART 1026—TRUTH IN LENDING 

(REGULATION Z) 

■ 1. The authority citation for part 1026 

continues to read as follows: 

Authority: 12 U.S.C. 2601, 2603–2605, 

2607, 2609, 2617, 5511, 5512, 5532, 5581; 15 

U.S.C. 1601 et seq. 

■ 2. In Supplement I to part 1026— 

Official Interpretations, under Section 

1026.35—Requirements for HigherPriced Mortgage Loans, 35(b)(2) 

Exemptions, Paragraph 35(b)(2)(iii), 

paragraph 1.iii is revised. 

The revision reads as follows: 

Supplement I to Part 1026—Official 

Interpretations 

* * * * * 

Subpart E—Special Rules for Certain 

Home Mortgage Transactions 

* * * * * 

Section 1026.35—Requirements for 

Higher-Priced Mortgage Loans 

* * * * * 

35(b)(2) Exemptions. 

* * * * * 

Paragraph 35(b)(2)(iii) 

1. Requirements for exemption. * * * 

* * * * * 

iii. As of the end of the preceding calendar 

year, the creditor had total assets that are less 

than the asset threshold for the relevant 

calendar year. For calendar year 2014, the 

asset threshold is $2,028,000,000. Creditors 

that had total assets of less than 

$2,028,000,000 on December 31, 2013, satisfy 

this criterion for purposes of the exemption 

during 2014. This asset threshold shall adjust 

automatically each year based on the year-toyear change in the average of the Consumer 

Price Index for Urban Wage Earners and 

Clerical Workers, not seasonally adjusted, for 

each 12-month period ending in November, 

with rounding to the nearest million dollars. 

The Bureau will publish notice of the asset 

threshold each year by amending this 

comment. For historical purposes, the prior 

asset threshold was: 

A. For calendar year 2013, the asset 

threshold was $2,000,000,000. Creditors that 

had total assets of less than $2,000,000,000 

on December 31, 2012, satisfied this criterion 

for purposes of the exemption during 2013. 

* * * * * 

Dated: December 24, 2013. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2013–31225 Filed 12–26–13; 11:15 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2013–0370; Directorate 

Identifier 2013–NM–034–AD; Amendment 

39–17711; AD 2013–26–02] 

RIN 2120–AA64 

Airworthiness Directives; Bombardier, 

Inc. Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

Bombardier, Inc. Model CL–600–2C10 

(Regional Jet Series 700, 701, & 702), 

CL–600–2D15 (Regional Jet Series 705), 

and CL–600–2D24 (Regional Jet Series 

900) airplanes. This AD was prompted 

by a report that traces of oil could be 

found in the crew oxygen system due to 

the use of incorrect pressure testing 

procedures during manufacturing. This 

AD requires cleaning the crew oxygen 

system. We are issuing this AD to detect 

and correct oil contaminants, which 

could cause an ignition and result in a 

fire in the oxygen system. 

DATES: This AD becomes effective 

February 3, 2014. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of February 3, 2014. 

ADDRESSES: You may examine the AD 

on the Internet at http://

www.regulations.gov/

#!docketDetail;D=FAA-2013-0370; or in 

person at the U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC. 

For service information identified in 

this AD, contact Bombardier, Inc., 400 

Coˆte-Vertu Road West, Dorval, Que ́bec 

H4S 1Y9, Canada; telephone 514–855– 

5000; fax 514–855–7401; email thd.crj@

aero.bombardier.com; Internet http://

www.bombardier.com. You may review 

copies of the referenced service 

information at the FAA, Transport 

Airplane Directorate, 1601 Lind Avenue 

SW., Renton, WA. For information on 

the availability of this material at the 

FAA, call 425–227–1221. 

FOR FURTHER INFORMATION CONTACT: 

Cesar Gomez, Aerospace Engineer, 

Airframe and Mechanical Systems 

Branch, ANE–171, FAA, New York 

Aircraft Certification Office, 1600 

Stewart Avenue, Suite 410, Westbury, 

New York 11590; telephone (516) 228– 

7318; fax (516) 794–5531. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. The 

NPRM published in the Federal 

Register on May 10, 2013 (78 FR 27314). 

The NPRM proposed to correct an 

unsafe condition for the specified 

products. 

Transport Canada Civil Aviation 

(TCCA), which is the aviation authority 

for Canada, has issued Canadian 

Airworthiness Directive CF–2013–01, 

dated January 22, 2013 (referred to after 

this as the Mandatory Continuing 

Airworthiness Information, or ‘‘the 

MCAI’’), to correct an unsafe condition 

for the specified products. The MCAI 

states: 

It was found that traces of oil could be 

present in the crew oxygen system due to the 

use of incorrect pressure testing procedures 

during manufacturing. Field sampling of nine 

aeroplanes have confirmed this condition. 

When the oxygen system is used, oil 

contaminants can cause an ignition and 

result in a fire in the oxygen system. 

This [Canadian] AD mandates the cleaning 

of the crew oxygen system to reduce oil 

contaminants to a safe level. 

You may examine the MCAI in the 

AD docket on the Internet at http://

www.regulations.gov/


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