Federal Register / Vol. 89, No. 248 / Friday, December 27, 2024 / Rules and Regulations 105429 

(i.e., a threshold below which the 

dishwasher would not meet consumer 

expectations of cleanability). However, 

the current RCW test procedures do not 

define what constitutes ‘‘washing’’ up to 

a full load of normally soiled cotton 

clothing (i.e., the cleaning performance). 

In the June 2022 TP Final Rule, DOE 

discussed its consideration of adding a 

cleaning performance metric to its RCW 

test procedures, but ultimately DOE was 

unable to make a determination whether 

existing test procedures for determining 

cleaning performance would produce 

results for DOE’s purposes that are 

representative of an average use cycle, 

as required by EPCA. Furthermore, DOE 

was unable to assess whether the 

additional burden resulting from these 

additional tests would be outweighed by 

the benefits of incorporating these tests. 

Therefore, DOE did not include a 

measure of cleaning performance in the 

RCW test procedures in the June 2022 

TP Final Rule. 87 FR 33316, 33352. 

DOE continues, however, to evaluate 

the potential benefits and burdens of 

incorporating a measure of performance 

into its RCW test procedures, akin to the 

cleaning performance threshold 

incorporated into the appendix C2 test 

procedure for dishwashers. Any such 

amendments to the RCW test procedures 

would be considered in a separate 

rulemaking. 

c. Consumer Clothes Dryers 

In the November 2024 Proposed 

Withdrawal, DOE recognized that 

consumer clothes dryer manufacturers 

design consumer clothes dryers to 

achieve many different performance 

requirements (e.g., drying performance, 

noise, efficiency, cycle time). 

Manufacturers also provide multiple 

cycle types to meet different consumer 

needs (e.g., normal, heavy, light, quick, 

delicates). However, DOE reiterates that 

multiple clothes dryer models currently 

on the market provide a cycle time of 

less than 30 minutes, all of which meet 

the current standards—demonstrating 

that current standards do not require 

manufacturers to trade off cycle time 

with energy use. 89 FR 88661, 88679. 

ASAP et al. stated that there is no 

evidence that energy conservation 

standards have resulted in increased 

energy use as stated by the Fifth Circuit, 

noting that there is no evidence that 

standards have resulted in consumers 

running multiple cycles on the same 

load or that energy use has increased as 

a result of improved efficiency. ASAP et 

al. noted that data from RECS has 

shown that average number of cycles 

per year for consumer clothes dryers has 

declined with improved efficiency. 

(ASAP et al., No. 21 at pp. 3–4) 

DOE agrees with ASAP’s assessment 

that available nationally representative 

data from RECS shows that the average 

numbers of cycles for consumer clothes 

dryers has declined over time indicating 

households have not needed to run 

multiple cycles on the same load. 

Similar to dishwashers, for consumer 

clothes dryers DOE noted in the test 

procedure final rule published on 

October 8, 2021, that drying 

performance at the completion of a 

clothes dryer cycle may influence how 

a consumer uses the product. 86 FR 

56608. DOE acknowledged that if the 

dryness of the clothes after completion 

of a during cycle does not meet 

consumer expectations, consumers may 

alter their use of their consumer clothes 

dryer by selecting a different cycle type 

that consumers more energy, or 

operating the selected cycle type 

multiple times. DOE recognized the 

need to ensure that the cycle type tested 

in the DOE test procedure is 

representative of consumer use as the 

consumer clothes dryer market 

continuously evolves to higher levels of 

efficiency. DOE therefore established a 

2-percent final moisture content dryness 

threshold in the appendix D2 test 

procedure that was shown to be 

representative of the consumeracceptable dryness level after 

completion of a drying cycle. 86 FR 

56608, 56627–56628. Under appendix 

D2, a consumer clothes dryer must 

achieve this dryness threshold in order 

for the tested cycle to be considered 

valid for certifying compliance with the 

applicable standard. 

To the extent that any individual 

consumer clothes dryers on the market 

have not met consumer expectations for 

dryness, such historical performance 

issues should be remedied moving 

forward, as the test procedure at 

appendix D2 ensures that any consumer 

clothes dryer tested for certification will 

have a valid energy and water 

representation only if the consumer 

clothes dryer meets or exceeds this 

threshold of dryness performance. 

III. Conclusions 

In conclusion, and for the reasons 

discussed in the preceding sections of 

this document, DOE has determined 

that a short-cycle feature does not justify 

separate product classes with separate 

standards under 42 U.S.C. 6295(q) for 

dishwashers, RCWs, and consumer 

clothes dryers. Therefore, products with 

short-cycle features remain subject to 

the currently applicable standards as 

specified in 10 CFR 430.32(f), (g), and 

(h), respectively. 

IV. Procedural Issues and Regulatory 

Review 

DOE has concluded that the 

determinations made pursuant to the 

various procedural requirements 

applicable to the January 2022 Final 

Rule remain unchanged for this 

confirmation of that rule. These 

determinations are set forth in the 

January 2022 Final Rule. 87 FR 2673, 

2686–2688. 

V. Approval of the Office of the 

Secretary 

The Secretary of Energy has approved 

publication of this final rule; 

confirmation of effective date. 

Signing Authority 

This document of the Department of 

Energy was signed on December 19, 

2024, by Jeffrey Marootian, Principal 

Deputy Assistant Secretary for Energy 

Efficiency and Renewable Energy, 

pursuant to delegated authority from the 

Secretary of Energy. That document 

with the original signature and date is 

maintained by DOE. For administrative 

purposes only, and in compliance with 

requirements of the Office of the Federal 

Register, the undersigned DOE Federal 

Register Liaison Officer has been 

authorized to sign and submit the 

document in electronic format for 

publication, as an official document of 

the Department of Energy. This 

administrative process in no way alters 

the legal effect of this document upon 

publication in the Federal Register. 

Signed in Washington, DC, on December 

19, 2024. 

Treena V. Garrett, 

Federal Register Liaison Officer, U.S. 

Department of Energy. 

[FR Doc. 2024–30797 Filed 12–26–24; 8:45 am] 

BILLING CODE 6450–01–P 

CONSUMER FINANCIAL PROTECTION 

BUREAU 

12 CFR Part 1003 

Home Mortgage Disclosure 

(Regulation C) Adjustment to AssetSize Exemption Threshold 

AGENCY: Consumer Financial Protection 

Bureau. 

ACTION: Final rule; official 

interpretation. 

SUMMARY: The Consumer Financial 

Protection Bureau (CFPB) is amending 

official commentary interpreting 

requirements of the CFPB’s Regulation C 

to reflect the asset-size exemption 

threshold for banks, savings 

associations, and credit unions based on 


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105430 Federal Register / Vol. 89, No. 248 / Friday, December 27, 2024 / Rules and Regulations 

1 12 U.S.C. 2801–2810. 

2 12 CFR part 1003. 

3 12 U.S.C. 2808(b). 

4 5 U.S.C. 553(b)(B). 

5 5 U.S.C. 553(d). 

6 5 U.S.C. 603(a), 604(a). 

7 44 U.S.C. 3506; 5 CFR part 1320. 

8 5 U.S.C. 801 et seq. 

the annual percentage change in the 

average of the Consumer Price Index for 

Urban Wage Earners and Clerical 

Workers (CPI–W). Based on the 2.9 

percent average increase in the CPI–W 

for the 12-month period ending 

November 2024, the exemption 

threshold is adjusted to $58 million 

from $56 million. Institutions with 

assets of $58 million or less as of 

December 31, 2024, are exempt from 

collecting data in 2025. 

DATES: This rule is effective on January 

1, 2025. 

FOR FURTHER INFORMATION CONTACT: 

George Karithanom, Regulatory 

Implementation & Guidance Program 

Analyst, Office of Regulations, at (202) 

435–7700 or at: https://reginquiries.

consumerfinance.gov. If you require this 

document in an alternative electronic 

format, please contact CFPB_

Accessibility@cfpb.gov. 

SUPPLEMENTARY INFORMATION: The CFPB 

is amending Regulation C, which 

implements the Home Mortgage 

Disclosure Act of 1975 (HMDA) asset 

thresholds, to establish the asset-sized 

exemption threshold for depository 

financial institutions for 2025. The asset 

threshold will be $58 million for 2025. 

I. Background 

HMDA requires most mortgage 

lenders located in metropolitan areas to 

collect data about their housing-related 

lending activity.1 Annually, lenders 

must report their data to the appropriate 

Federal agencies and make the data 

available to the public. The CFPB’s 

Regulation C implements HMDA.2

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.3 The amendment increased 

the dollar amount of the asset-size 

exemption threshold by requiring a onetime 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 CFPB 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 2024, the 

threshold was $56 million. During the 

12-month period ending in November 

2024, the average of the CPI–W 

increased by 2.9 percent. As a result, the 

exemption threshold is increased to $58 

million for 2025. Thus, banks, savings 

associations, and credit unions with 

assets of $58 million or less as of 

December 31, 2024, are exempt from 

collecting data in 2025. An institution’s 

exemption from collecting data in 2025 

does not affect its responsibility to 

report data it was required to collect in 

2024. 

II. Procedural Requirements 

A. Administrative Procedure Act 

Under the Administrative Procedure 

Act (APA), notice and opportunity for 

public comment are not required if the 

CFPB finds that notice and opportunity 

for public comment are impracticable, 

unnecessary, or contrary to the public 

interest.4 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 nondiscretionary, and it merely applies the 

formula established by Regulation C for 

determining any adjustments to the 

exemption threshold. For these reasons, 

the CFPB 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 in the case of (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 At 

a minimum, the CFPB has determined 

that the amendment falls under the 

third exception to section 553(d). The 

CFPB finds that there is good cause to 

make the amendment effective on 

January 1, 2025. The amendment in this 

final rule is technical and nondiscretionary, and it applies the method 

previously established in the agency’s 

regulations for determining adjustments 

to the threshold. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking where a 

general notice of proposed rulemaking 

is not required.6 As noted previously, 

the CFPB has determined that it is 

unnecessary to publish a general notice 

of proposed rulemaking for this final 

rule. Accordingly, the RFA’s 

requirement relating to an initial and 

final regulatory flexibility analysis does 

not apply. 

C. Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,7 the CFPB 

reviewed this final rule. The CFPB has 

determined that this rule does not create 

any new information collections or 

substantially revise any existing 

collections. 

D. Congressional Review Act 

Pursuant to the Congressional Review 

Act, the CFPB will submit a report 

containing this rule and other required 

information to the United States Senate, 

the United States House of 

Representatives, and the Comptroller 

General of the United States prior to the 

rule taking effect.8 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 

Banks, banking, Credit unions, 

Mortgages, National banks, Reporting 

and recordkeeping requirements, 

Savings associations. 

Authority and Issuance 

For the reasons set forth above, the 

CFPB 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. Supplement I to part 1003 is 

amended by revising 2(g) Financial 

Institution under the heading Section 

1003.2—Definitions to read as follows: 

Supplement I to Part 1003—Official 

Interpretations 

* * * * * 

Section 1003.2—Definitions 

* * * * * 


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Federal Register / Vol. 89, No. 248 / Friday, December 27, 2024 / Rules and Regulations 105431 

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 

2025, the asset-size exemption threshold 

is $58 million. Banks, savings 

associations, and credit unions with 

assets at or below $58 million as of 

December 31, 2024, are exempt from 

collecting data for 2025. 

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 

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 

200 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 200 

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). 

* * * * * 

Brian Shearer, 

Assistant Director, Office of Policy Planning 

and Strategy, Consumer Financial Protection 

Bureau. 

[FR Doc. 2024–30652 Filed 12–26–24; 8:45 am] 

BILLING CODE 4810–25–P 


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