Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations 61145 

§ 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 

$1.252 billion. Intermediate small 

savings association means a small 

savings association with assets of at 

least $313 million as of December 31 of 

both of the prior two calendar years and 

less than $1.252 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 

is revised to read as follows: 

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

1842, 1843, 1844, and 2901 et seq. 

■ 6. Section 228.12 is amended by 

revising paragraph (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 $1.252 

billion. Intermediate small bank means 

a small bank with assets of at least $313 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.252 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. Section 345.12 is amended by 

redesignating paragraph (j)(5) as 

paragraph (j)(4) and revising paragraph 

(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 $1.252 

billion. Intermediate small bank means 

a small bank with assets of at least $313 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.252 billion as of December 31 of 

either of the prior two calendar years. 

* * * * * 

Dated: December 19, 2017. 

Karen Solomon, 

Acting 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. 

Ann E. Misback, 

Secretary of the Board. 

By order of the Board of Directors. 

Dated at Washington, DC, this 14th day of 

December 2017. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2017–27813 Filed 12–26–17; 8:45 am] 

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

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 790 

RIN 3133–AE81 

Agency Reorganization; Correction 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule; correction. 

SUMMARY: The NCUA is correcting a 

final rule that appeared in the Federal 

Register on December 20, 2017. The 

document implemented certain features 

of the NCUA reorganization that the 

NCUA Board announced earlier this 

year. This correction amends one 

reference within the document. 

DATES: This correction is effective 

January 6, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Wirick, Senior Staff Attorney, 

Office of General Counsel, 1775 Duke 

Street, Alexandria, VA 22314 or 

telephone (703) 518–6540. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2017–27411, appearing on page 60290 

in the Federal Register of Wednesday, 

December 20, 2017, the following 

corrections are made: 

§ 790.2 [Corrected] 

■ On page 60292, in the second column, 

in part 790, in amendment 10, the 

instruction ‘‘In § 790.2, revise the 

second sentence of paragraph (b)(6), 

paragraph (b)(12), the third sentence of 

paragraph (b)(13), and paragraph (b)(15) 

to read as follows:’’ is corrected to read 

‘‘In § 790.2, revise the second sentence 

of paragraph (b)(6), paragraph (b)(12), 

the fourth sentence of paragraph (b)(13), 

and paragraph (b)(15) to read as 

follows:’’ 

By the National Credit Union 

Administration Board on December 21, 2017. 

Gerard Poliquin, 

Secretary of the Board 

[FR Doc. 2017–27962 Filed 12–26–17; 8:45 am] 

BILLING CODE 7535–01–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 

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). Based on the 

2.1 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2017, the 

exemption threshold is adjusted to 

increase to $45 million from $44 

million. Therefore, banks, savings 

associations, and credit unions with 

assets of $45 million or less as of 

December 31, 2017, are exempt from 

collecting data in 2018. 

DATES: This final rule is effective 

January 1, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Monique Chenault, Paralegal Specialist, 

Office of Regulations, Consumer 

Financial Protection Bureau, 1700 G 


daltland on DSKBBV9HB2PROD with RULES
61146 Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations 

Street NW, Washington, DC 20552, 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 

their 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 

it provided for annual adjustments 

thereafter based on the annual 

percentage increase in the CPI–W, 

rounded to the nearest multiple of $1 

million. 

The definition of ‘‘financial 

institution’’ in § 1003.2(g) 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 $1 million. For 2017, the 

threshold was $44 million. During the 

12-month period ending in November 

2017, the average of the CPI–W 

increased by 2.1 percent. As a result, the 

exemption threshold is increased to $45 

million. Thus, banks, savings 

associations, and credit unions with 

assets of $45 million or less as of 

December 31, 2017, are exempt from 

collecting data in 2018. An institution’s 

exemption from collecting data in 2018 

does not affect its responsibility to 

report data it was required to collect in 

2017. 

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 2(g)–2 in 

Regulation C, supplement I, is amended 

to update the exemption threshold. The 

amendment in this final rule is 

technical and non-discretionary, 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 (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, 2018. 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 part 1320), the agency reviewed 

this final rule. No collections of 

information pursuant to the Paperwork 

Reduction Act are contained in the final 

rule. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), CFPB will 

submit a report containing this rule and 

other required information to the U.S. 

Senate, the U.S. House of 

Representatives, and the Comptroller 

General of the United States prior to the 

rule taking effect. The Office of 

Information and Regulatory Affairs 

(OIRA) has designated this rule as not 

a ‘‘major rule’’ as defined by 5 U.S.C. 

804(2). 

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 above, 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, 2(g) 

Financial Institution is revised to read 

as follows: 

Supplement I to Part 1003—Official 

Interpretations 

* * * * * 

Section 1003.2—Definitions 

* * * * * 

2(g) Financial Institution 

1. Preceding calendar year and 

preceding December 31. The definition 

of financial institution refers both to the 

preceding calendar year and the 

preceding December 31. These terms 

refer to the calendar year and the 

December 31 preceding the current 

calendar year. For example, in 2019, the 

preceding calendar year is 2018 and the 

preceding December 31 is December 31, 

2018. Accordingly, in 2019, Financial 

Institution A satisfies the asset-size 

threshold described in § 1003.2(g)(1)(i) 

if its assets exceeded the threshold 

specified in comment 2(g)–2 on 

December 31, 2018. Likewise, in 2020, 

Financial Institution A does not meet 

the loan-volume test described in 

§ 1003.2(g)(1)(v)(A) if it originated fewer 

than 25 closed-end mortgage loans 

during either 2018 or 2019. 

2. Adjustment of exemption threshold 

for banks, savings associations, and 

credit unions. For data collection in 

2018, the asset-size exemption threshold 

is $45 million. Banks, savings 

associations, and credit unions with 

assets at or below $45 million as of 

December 31, 2017, are exempt from 

collecting data for 2018. 

3. Merger or acquisition—coverage of 

surviving or newly formed institution. 

After a merger or acquisition, the 

surviving or newly formed institution is 

a financial institution under § 1003.2(g) 

if it, considering the combined assets, 

location, and lending activity of the 

surviving or newly formed institution 

and the merged or acquired institutions 

or acquired branches, satisfies the 

criteria included in § 1003.2(g). For 


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Federal Register / Vol. 82, No. 247 / Wednesday, December 27, 2017 / Rules and Regulations 61147 

example, A and B merge. The surviving 

or newly formed institution meets the 

loan threshold described in 

§ 1003.2(g)(1)(v)(B) if the surviving or 

newly formed institution, A, and B 

originated a combined total of at least 

500 open-end lines of credit in each of 

the two preceding calendar years. 

Likewise, the surviving or newly formed 

institution meets the asset-size 

threshold in § 1003.2(g)(1)(i) if its assets 

and the combined assets of A and B on 

December 31 of the preceding calendar 

year exceeded the threshold described 

in § 1003.2(g)(1)(i). Comment 2(g)–4 

discusses a financial institution’s 

responsibilities during the calendar year 

of a merger. 

4. Merger or acquisition—coverage for 

calendar year of merger or acquisition. 

The scenarios described below illustrate 

a financial institution’s responsibilities 

for the calendar year of a merger or 

acquisition. For purposes of these 

illustrations, a ‘‘covered institution’’ 

means a financial institution, as defined 

in § 1003.2(g), that is not exempt from 

reporting under § 1003.3(a), and ‘‘an 

institution that is not covered’’ means 

either an institution that is not a 

financial institution, as defined in 

§ 1003.2(g), or an institution that is 

exempt from reporting under 

§ 1003.3(a). 

i. Two institutions that are not 

covered merge. The surviving or newly 

formed institution meets all of the 

requirements necessary to be a covered 

institution. No data collection is 

required for the calendar year of the 

merger (even though the merger creates 

an institution that meets all of the 

requirements necessary to be a covered 

institution). When a branch office of an 

institution that is not covered is 

acquired by another institution that is 

not covered, and the acquisition results 

in a covered institution, no data 

collection is required for the calendar 

year of the acquisition. 

ii. A covered institution and an 

institution that is not covered merge. 

The covered institution is the surviving 

institution, or a new covered institution 

is formed. For the calendar year of the 

merger, data collection is required for 

covered loans and applications handled 

in the offices of the merged institution 

that was previously covered and is 

optional for covered loans and 

applications handled in offices of the 

merged institution that was previously 

not covered. When a covered institution 

acquires a branch office of an institution 

that is not covered, data collection is 

optional for covered loans and 

applications handled by the acquired 

branch office for the calendar year of the 

acquisition. 

iii. A covered institution and an 

institution that is not covered merge. 

The institution that is not covered is the 

surviving institution, or a new 

institution that is not covered is formed. 

For the calendar year of the merger, data 

collection is required for covered loans 

and applications handled in offices of 

the previously covered institution that 

took place prior to the merger. After the 

merger date, data collection is optional 

for covered loans and applications 

handled in the offices of the institution 

that was previously covered. When an 

institution remains not covered after 

acquiring a branch office of a covered 

institution, data collection is required 

for transactions of the acquired branch 

office that take place prior to the 

acquisition. Data collection by the 

acquired branch office is optional for 

transactions taking place in the 

remainder of the calendar year after the 

acquisition. 

iv. Two covered institutions merge. 

The surviving or newly formed 

institution is a covered institution. Data 

collection is required for the entire 

calendar year of the merger. The 

surviving or newly formed institution 

files either a consolidated submission or 

separate submissions for that calendar 

year. When a covered institution 

acquires a branch office of a covered 

institution, data collection is required 

for the entire calendar year of the 

merger. Data for the acquired branch 

office may be submitted by either 

institution. 

5. Originations. Whether an 

institution is a financial institution 

depends in part on whether the 

institution originated at least 25 closedend mortgage loans in each of the two 

preceding calendar years or at least 500 

open-end lines of credit in each of the 

two preceding calendar years. 

Comments 4(a)–2 through –4 discuss 

whether activities with respect to a 

particular closed-end mortgage loan or 

open-end line of credit constitute an 

origination for purposes of § 1003.2(g). 

6. Branches of foreign banks—treated 

as banks. A Federal branch or a Statelicensed or insured branch of a foreign 

bank that meets the definition of a 

‘‘bank’’ under section 3(a)(1) of the 

Federal Deposit Insurance Act (12 

U.S.C. 1813(a)) is a bank for the 

purposes of § 1003.2(g). 

7. Branches and offices of foreign 

banks and other entities—treated as 

nondepository financial institutions. A 

Federal agency, State-licensed agency, 

State-licensed uninsured branch of a 

foreign bank, commercial lending 

company owned or controlled by a 

foreign bank, or entity operating under 

section 25 or 25A of the Federal Reserve 

Act, 12 U.S.C. 601 and 611 (Edge Act 

and agreement corporations) may not 

meet the definition of ‘‘bank’’ under the 

Federal Deposit Insurance Act and may 

thereby fail to satisfy the definition of a 

depository financial institution under 

§ 1003.2(g)(1). An entity is nonetheless 

a financial institution if it meets the 

definition of nondepository financial 

institution under § 1003.2(g)(2). 

* * * * * 

Dated: December 14, 2017. 

Mick Mulvaney, 

Acting Director, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2017–27879 Filed 12–21–17; 4:15 pm] 

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 $2.112 billion from $2.069 

billion. The adjustment is based on the 

2.1 percent increase in the average of 

the CPI–W for the 12-month period 

ending in November 2017. Therefore, 

creditors with assets of less than $2.112 

billion (including assets of certain 

affiliates) as of December 31, 2017, are 

exempt, if other requirements of 

Regulation Z also are met, from 

establishing escrow accounts for higherpriced mortgage loans in 2018. This 

asset limit will also apply during a grace 

period, in certain circumstances, with 

respect to transactions with applications 

received before April 1 of 2019. The 

adjustment to the escrows asset-size 

exemption threshold will also increase 

a similar threshold for small-creditor 

portfolio and balloon-payment qualified 

mortgages. Balloon-payment qualified 

mortgages that satisfy all applicable 


daltland on DSKBBV9HB2PROD with RULES