[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Rules and Regulations]
[Pages 77854-77855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30404]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1003


Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size 
Exemption Threshold

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule; official commentary.

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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 a change in 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). The exemption threshold is 
adjusted to increase to $44 million from $43 million. The adjustment is 
based on the 1.1 percent increase in the average of the CPI-W for the 
12-month period ending in November 2014. Therefore, banks, savings 
associations, and credit unions with assets of $44 million or less as 
of December 31, 2014, are exempt from collecting data in 2015.

DATES: This final rule is effective January 1, 2015.

FOR FURTHER INFORMATION CONTACT: James Wylie, Counsel, Office of 
Regulations, 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 that 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

[[Page 77855]]

it provided for annual adjustments thereafter based on the annual 
percentage increase in the CPI-W, rounded to the nearest multiple of $1 
million dollars.
    The definition of ``financial institution'' in Regulation C 
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 million. 12 CFR 1003.2. For 2014, the threshold was $43 
million. During the 12-month period ending in November 2014, the 
average of the CPI-W increased by 1.1 percent. As a result, the 
exemption threshold is increased to $44 million. Thus, banks, savings 
associations, and credit unions with assets of $44 million or less as 
of December 31, 2014, are exempt from collecting data in 2015. An 
institution's exemption from collecting data in 2015 does not affect 
its responsibility to report data it was required to collect in 2014.

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 1003.2 (Financial institution)-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 
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 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, 2015. 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 1320), the agency reviewed this final rule. No collections 
of information pursuant to the Paperwork Reduction Act are contained in 
the final rule.

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 in the preamble, the Bureau amends 
Regulation C, 12 CFR part 1003, as set forth below:

PART 1003--HOME MORTGAGE DISCLOSURE (REGULATION C)

0
1. The authority citation for part 1003 continues to read as follows:

    Authority: 12 U.S.C. 2803, 2804, 2805, 5512, 5581.


0
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 2015, the 
asset-size exemption threshold is $44 million. Banks, savings 
associations, and credit unions with assets at or below $44 million 
as of December 31, 2014, are exempt from collecting data for 2015.
* * * * *

    Dated: December 15, 2014.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2014-30404 Filed 12-24-14; 8:45 am]
BILLING CODE 4810-AM-P