This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

43910 

Vol. 82, No. 181 

Wednesday, September 20, 2017 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Parts 25 and 195 

[Docket ID OCC–2017–0008] 

RIN 1557–AE15 

FEDERAL RESERVE SYSTEM 

12 CFR Part 228 

[Docket No. R–1574] 

RIN 7100–AE84 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 345 

RIN 3064–AE58 

Community Reinvestment Act 

Regulations 

AGENCY: Office of the Comptroller of the 

Currency, Treasury; Board of Governors 

of the Federal Reserve System; and 

Federal Deposit Insurance Corporation. 

ACTION: Joint notice of proposed 

rulemaking; request for comment. 

SUMMARY: The Office of the Comptroller 

of the Currency (OCC), the Board of 

Governors of the Federal Reserve 

System (Board), and the Federal Deposit 

Insurance Corporation (FDIC) 

(collectively, the Agencies) propose to 

amend their regulations implementing 

the Community Reinvestment Act (CRA) 

to update the existing definitions of 

‘‘home mortgage loan’’ and ‘‘consumer 

loan,’’ related cross references, and the 

public file content requirements to 

conform recent revisions made by the 

Consumer Financial Protection Bureau 

(Bureau) to Regulation C, which 

implements the Home Mortgage 

Disclosure Act (HMDA), and to remove 

obsolete references to the Neighborhood 

Stabilization Program (NSP). 

DATES: Comments must be received on 

or before October 20, 2017. 

ADDRESSES: Comments should be 

directed to: 

OCC: Because paper mail in the 

Washington, DC area and at the OCC is 

subject to delay, commenters are 

encouraged to submit comments 

through the Federal eRulemaking Portal 

or email, if possible. Please use the title 

‘‘Community Reinvestment Act 

Regulations’’ to facilitate the 

organization and distribution of the 

comments. You may submit comments 

by any of the following methods: 

Federal eRulemaking Portal— 

‘‘Regulations.gov’’: Go to 

www.regulations.gov. Enter ‘‘Docket ID 

OCC–2017–0008’’ in the Search box and 

click ‘‘Search.’’ Click on ‘‘Comment 

Now’’ to submit public comments. 

• Click on the ‘‘Help’’ tab on the 

Regulations.gov home page to get 

information on using Regulations.gov, 

including instructions for submitting 

public comments. 

• Email: regs.comments@

occ.treas.gov. 

• Mail: Legislative and Regulatory 

Activities Division, Office of the 

Comptroller of the Currency, 400 7th 

Street SW., Suite 3E–218, Washington, 

DC 20219. 

• Hand Delivery/Courier: 400 7th 

Street SW., Suite 3E–218, Mail Stop 

9W–11, Washington, DC 20219. 

• Fax: (571) 465–4326. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘Docket 

ID OCC–2017–0008’’ in your comment. 

In general, OCC will enter all comments 

received into the docket and publish 

them on the Regulations.gov Web site 

without change, including any business 

or personal information that you 

provide such as name and address 

information, email addresses, or phone 

numbers. Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

include any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

You may review comments and other 

related materials that pertain to this 

rulemaking action by any of the 

following methods: 

• Viewing Comments Electronically: 

Go to www.regulations.gov. Enter 

‘‘Docket ID OCC–2017–0008’’ in the 

Search box and click ‘‘Search.’’ Click on 

‘‘Open Docket Folder’’ on the right side 

of the screen. Comments and supporting 

materials can be viewed and filtered by 

clicking on ‘‘View all documents and 

comments in this docket’’ and then 

using the filtering tools on the left side 

of the screen. 

• Click on the ‘‘Help’’ tab on the 

Regulations.gov home page to get 

information on using Regulations.gov. 

The docket may be viewed after the 

close of the comment period in the same 

manner as during the comment period. 

• Viewing Comments Personally: You 

may personally inspect and photocopy 

comments at the OCC, 400 7th Street 

SW., Washington, DC 20219. For 

security reasons, the OCC requires that 

visitors make an appointment to inspect 

comments. You may do so by calling 

(202) 649–6700 or, for persons who are 

deaf or hard of hearing, TTY, (202) 649– 

5597. Upon arrival, visitors will be 

required to present valid governmentissued photo identification and submit 

to security screening in order to inspect 

and photocopy comments. 

Board: When submitting comments, 

please consider submitting your 

comments by email or fax because paper 

mail in the Washington, DC area and at 

the Board may be subject to delay. You 

may submit comments, identified by 

Docket No. R–XXXX and RIN XXXX– 

XXXX, by any of the following methods: 

• Agency Web site: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

http://www.federalreserve.gov/general

info/foia/ProposedRegs.cfm. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Email: regs.comments@

federalreserve.gov. Include docket and 

RIN numbers in the subject line of the 

message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Ann E. Misback, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW., Washington, 

DC 20551. 

Instructions: All public comments 

will be made available on the Board’s 

Web site at http://www.federal

reserve.gov/generalinfo/foia/ 

ProposedRegs.cfm as submitted, unless 

modified for technical reasons. 

Accordingly, your comments will not be 

edited to remove any identifying or 

contact information. Public comments 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43911 

1 ‘‘Questions and Answers’’ refers to the 

‘‘Interagency Questions and Answers Regarding 

Community Reinvestment’’ in its entirety; ‘‘Q&A’’ 

refers to an individual question and answer within 

the Questions and Answers. 

2 60 FR 22156 (May 4, 1995). The CRA regulations 

were also issued by the Office of Thrift Supervision 

(OTS). In 2010, the OTS was integrated with the 

OCC pursuant to the Dodd-Frank Wall Street 

Reform and Consumer Protection Act (Dodd-Frank 

Act) (15 U.S.C. 5413), and the regulation of thrifts 

was transferred to the OCC, the Board, and the FDIC 

(15 U.S.C. 5412). 

3The Agencies originally proposed that the 

definition of ‘‘home mortgage loan’’ include all 

mortgage loans reportable under both the HMDA 

statute and its implementing regulations (see 58 FR 

67466, at 67473, Dec. 21, 1993). However, some 

commenters noted that the Board had already 

refined the definition of home mortgage loan in its 

HMDA regulations (12 CFR part 203). These 

commenters indicated it would be preferable and, 

perhaps, less confusing if the Agencies only 

referred to the Board’s HMDA regulations, rather 

than both the HMDA statute and the regulation. As 

a result of these comments, the Agencies amended 

the proposed definition in the 1995 CRA Rule and 

defined ‘‘home mortgage loan’’ as a ‘‘home 

improvement loan’’ or a ‘‘home purchase loan,’’ as 

those terms were defined in 12 CFR 203.2 of the 

Board’s Regulation C. 

may also be viewed electronically or in 

paper form in Room 3515, 1801 K Street 

NW. (between 18th and 19th Streets, 

NW.), Washington, DC 20006 between 

9:00 a.m. and 5:00 p.m. on weekdays. 

For security reasons, the Board requires 

that visitors make an appointment to 

inspect comments. You may do so by 

calling (202) 452–3684. Upon arrival, 

visitors will be required to present valid 

government-issued photo identification 

and to submit to security screening in 

order to inspect and photocopy 

comments. 

FDIC: You may submit comments, 

identified by RIN 3064–AE62, by any of 

the following methods: 

• Agency Web site: http://

www.fdic.gov/regulations/laws/federal/ 

propose.html. Follow instructions for 

submitting comments on the Agency 

Web site. 

• Email: Comments@fdic.gov. Include 

the RIN 3064–AE62 on the subject line 

of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW., Washington, DC 20429. 

• Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street Building 

(located on F Street) on business days 

between 7:00 a.m. and 5:00 p.m. 

Instructions: All comments received 

must include the agency name and RIN 

3064–AE62 for this rulemaking. All 

comments received will be posted 

without change to http://www.fdic.gov/ 

regulations/laws/federal/propose.html, 

including any personal information 

provided. Paper copies of public 

comments may be ordered from the 

FDIC Public Information Center, 3501 

North Fairfax Drive, Room E–1002, 

Arlington, VA 22226 by telephone at 

(877) 275–3342 or (703) 562–2200. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Emily R. Boyes, Attorney, 

Community and Consumer Law 

Division, (202) 649–6350; Allison 

Hester-Haddad, Counsel, Legislative and 

Regulatory Activities Division, (202) 

649–5490; for persons who are deaf or 

hard of hearing, TTY, (202) 649–5597; 

or Vonda J. Eanes, Director for CRA and 

Fair Lending Policy, Compliance Risk 

Policy Division, (202) 649–6907, Office 

of the Comptroller of the Currency, 400 

7th Street SW., Washington, DC 20219. 

Board: Amal S. Patel, Senior 

Supervisory Consumer Financial 

Services Analyst, Division of Consumer 

and Community Affairs, (202) 912– 

7879; Cathy Gates, Senior Project 

Manager, Division of Consumer and 

Community Affairs, (202) 452–2099, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW., Washington, 

DC 20551. 

FDIC: Patience R. Singleton, Senior 

Policy Analyst, Supervisory Policy 

Branch, Division of Depositor and 

Consumer Protection, (202) 898–6859; 

Sharon B. Vejvoda, Senior Examination 

Specialist, Examination Branch, 

Division of Depositor and Consumer 

Protection, (202) 898–3881; Richard M. 

Schwartz, Counsel, Legal Division (202) 

898–7424; or Sherry Ann Betancourt, 

Counsel, Legal Division (202) 898–6560, 

Federal Deposit Insurance Corporation, 

550 17th Street NW., Washington, DC 

20429. 

SUPPLEMENTARY INFORMATION: 

Background 

The Board, the FDIC, and the OCC 

implement the CRA (12 U.S.C. 2901 et 

seq.) through their CRA regulations. See 

12 CFR parts 25, 195, 228, and 345. The 

CRA is designed to encourage regulated 

financial institutions to help meet the 

credit needs of the local communities in 

which an institution is chartered. The 

CRA regulations establish the 

framework and criteria by which the 

Agencies assess a financial institution’s 

record of helping to meet the credit 

needs of its community, including lowand moderate-income neighborhoods, 

consistent with safe and sound 

operations. Under the CRA regulations, 

the Agencies apply different evaluation 

standards for financial institutions of 

different asset sizes and types. 

The Agencies also publish the 

Interagency Questions and Answers 

Regarding Community Reinvestment 

(Questions and Answers) 1 to provide 

guidance on the interpretation and 

application of the CRA regulations to 

agency personnel, financial institutions, 

and the public. 

Introduction 

The Agencies jointly propose to 

amend their regulations implementing 

the CRA (12 U.S.C. 2901 et seq.). This 

proposed rulemaking amends the 

current definitions of ‘‘home mortgage 

loan’’ and ‘‘consumer loan’’ and the 

public file content requirements to 

conform to recent revisions made by the 

Bureau to its Regulation C, which 

implements HMDA, makes technical 

amendments to remove unnecessary 

cross references as a result of the 

amended definitions, and removes an 

obsolete reference to the NSP. 

Amendments To Conform the CRA 

Regulations to Recent Revisions to the 

Bureau’s Regulation C 

Conforming Changes to the ‘‘Home 

Mortgage Loan’’ Definition 

The CRA regulations specify the type 

of lending and other activities that the 

Agencies evaluate to assess a financial 

institution’s CRA performance. In 1995, 

the Agencies substantively amended 

their CRA regulations to clarify the 

methods that examiners use to assess 

financial institutions’ CRA performance 

(1995 CRA Rule).2 These amended 

regulations added the definition of 

‘‘home mortgage loan,’’ to describe a 

category of loans that examiners 

evaluate when assessing a financial 

institution’s performance under the 

retail lending test. As part of efforts to 

produce a less-burdensome CRA 

assessment process, the Agencies relied 

on the scope of loans reported under the 

Board’s Regulation C, which 

implemented HMDA at the time, to 

define ‘‘home mortgage loan.’’ (12 CFR 

part 203 (1995)).3 The Board’s 

Regulation C required a HMDA reporter 

to report data to its supervisory agency 

on originations, purchases, and 

applications for loans that were made 

for one of two purposes: Home purchase 

or home improvement. (See 12 CFR 

203.1(c) (1995)). As a result, the 1995 

CRA Rule defined ‘‘home mortgage 

loan’’ to mean ‘‘home purchase loan’’ or 

‘‘home improvement loan,’’ as those 

terms were defined in the Board’s 

Regulation C in 12 CFR 203.2. 

On February 15, 2002, the Board 

made substantial revisions to its 

Regulation C (2002 HMDA Rule), 

including, among other things, changing 

the scope of loans reported under 

Regulation C to include all refinancings, 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43912 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

4 67 FR 7222 (Feb. 15, 2002). The 2002 HMDA 

Rule revisions became effective on January 1, 2004. 

5 70 FR 15570 (Mar. 28, 2005). 

6Public Law 111–203, 124 Stat. 1376 (2010), 

codified in relevant part at 12 U.S.C. 5301, 5481– 

5603, and in laws amended (Title X); and 12 U.S.C. 

5481 note, 15 U.S.C. 1601 note, 1602, and 1631 et 

seq. (Title XIV). The Bureau’s Regulation C is 

located at 12 CFR part 1003. 

7 80 FR 66127 (Oct. 28, 2015). On August 24, 

2017, the Bureau issued a final rule (2017 HMDA 

Rule) amending the 2015 HMDA Rule. The 2017 

HMDA Rule finalizes a proposal issued by the 

Bureau on April 25, 2017 (82 FR 19142), to address 

technical errors, ease the burden on certain 

reporting requirements, and clarify some key terms. 

The 2017 HMDA Rule also finalizes a proposal 

issued by the Bureau on July 14, 2017 (82 FR 

33455), to temporarily increase the institutional and 

transactional coverage thresholds for open-end lines 

of credit. See http://files.consumerfinance.gov/f/ 

documents/201708_cfpb_final-rule_homemortgage-disclosure_regulation-c.pdf 

8 80 FR at 66128. 

9The 2015 HMDA Rule revises the scope of 

transactions as well as financial institutions that 

must collect and report HMDA data. Under the 

revised rule, a financial institution that meets all 

other requirements for financial institution coverage 

is required to report HMDA data only if it originates 

at least 25 closed-end mortgage loans or at least 100 

open-end lines of credit in each of the two 

preceding calendar years. The open-end lines of 

credit threshold will increase from 100 to 500 loans 

on a temporary basis for a period of two years 

(calendar years 2018 and 2019) pursuant to the 

2017 HMDA Rule. The Bureau is not making the 

threshold increase for open-end lines of credit 

permanent at this time. Absent further action by the 

Bureau, effective January 1, 2020, the open-end 

threshold will be restored to the 2015 HMDA Rule 

level of 100 open-end lines of credit, and creditors 

originating between 100 and 499 open-end lines of 

credit will need to begin collecting and reporting 

HMDA data for open-end lines of credit at this time. 

While depository financial institutions with more 

than 100 open-end lines of credit (500 open-end 

lines of credit for 2018 and 2019) will have to report 

HMDA data, fewer depository financial institutions 

will report closed-end mortgage data under HMDA 

when the revised rule becomes effective. 

10Under current Regulation C, loans that are 

made primarily for personal, family or household 

purposes (i.e., consumer purpose) and that are 

secured by a dwelling are reportable if they are 

made for the purpose of home-purchase or 

refinancing. Loans that are made for the purpose of 

home improvement are reported regardless of 

whether they are secured by a dwelling. The 2015 

HMDA Rule modifies the types of transactions that 

are subject to Regulation C by changing this 

traditional ‘‘purpose-based’’ reporting approach to 

generally adopting a dwelling secured standard for 

transactional coverage. 

11 80 FR at 66128. 

12 Id. 

13 Id. 

14 Id. Under the 2015 HMDA Rule, dwellingsecured commercial-purpose transactions will be 

covered only if they are for home purchase, home 

improvement, or refinancing purposes. A closedend mortgage loan or an open-end line of credit to 

purchase or to improve a multifamily dwelling or 

a single-family investment property, or a 

refinancing of a closed-end mortgage loan or an 

open-end line of credit secured by a multifamily 

dwelling or a single-family investment property, 

would be a reportable transaction under the 2015 

HMDA Rule. See Comment 3(c)(10)—3.i. A closedend mortgage loan or an open-end line of credit 

whose funds will be used primarily to improve or 

expand a business, for example, to renovate a 

family restaurant that is not located in a dwelling 

or to purchase a warehouse, business equipment, or 

inventory, would not be a reportable transaction. 

See Comment 3(c)(10)—4.i. 

15 Id. Note that under current Regulation C, a loan 

to purchase property used primarily for agricultural 

purposes, is not a home purchase loan. However, 

under certain circumstances a refinance with a 

primarily agricultural purpose could be reported as 

a refinancing on the HMDA Loan Application 

Register (LAR). For purposes of CRA, this loan 

could be captured as both a ‘‘refinancing’’ under the 

CRA definition of ‘‘home mortgage loan’’ and, 

because the refinancing would be for an agricultural 

loan, the loan would also be captured on the Call 

Report as a refinance of a small farm loan. Under 

the 2015 HMDA Rule, all loans with a primarily 

agricultural purpose, whether they are for home 

purchase, home improvement, refinancing, or 

another purpose, will no longer be reported on the 

HMDA LAR. As a result, for purposes of CRA, the 

likelihood of double counting primarily agricultural 

purpose loans as both a ‘‘refinancing’’ under the 

definition of ‘‘home mortgage loan’’ and a 

refinancing of small farm loans is decreased. The 

Agencies do not believe the proposed change in 

transactional coverage for commercial loans and 

loans with a primarily agricultural purpose will 

negatively impact a financial institution’s CRA 

rating. 

16The 2015 HMDA Rule retains existing 

categories of excluded transactions, clarifies some 

categories of excluded transactions, and expands 

the existing exclusion for agricultural-purpose 

transactions. Effective January 1, 2018, the 

following transactions will not be reportable under 

Regulation C: 

1. A closed-end mortgage loan or open-end line 

of credit originated or purchased by a financial 

institution acting in a fiduciary capacity; 

2. A closed-end mortgage loan or open-end line 

of credit secured by a lien on unimproved land; 

3. Temporary financing; 

4. The purchase of an interest in a pool of closedend mortgage loans or open-end lines of credit; 

5. The purchase solely of the right to service 

closed-end mortgage loans or open-end lines of 

credit; 

6. The purchase of closed-end mortgage loans or 

open-end lines of credit as part of a merger or 

acquisition, or as part of the acquisition of all of the 

assets and liabilities of a branch office as defined 

in 12 CFR 1003.2(c); 

7. A closed-end mortgage loan or open-end line 

of credit, or an application of a closed-end mortgage 

regardless of purpose.4 Prior to this 

amendment, lenders were able to select 

from among four scenarios to decide 

which refinancings to report. The 2002 

HMDA Rule revised Regulation C to 

define and include ‘‘refinancings’’ in the 

scope of loans that were reportable 

under HMDA and Regulation C. 12 CFR 

203.1(c) (2004). As a result of this 

change, any closed-end home purchase 

or refinancing was reported if it was 

dwelling-secured and home 

improvement loans were reported 

whether or not they were dwellingsecured. To keep the CRA regulations 

aligned with the scope of loans 

reportable under HMDA and Regulation 

C, on March 28, 2005, the Agencies 

issued a final rule to change the 

definition of ‘‘home mortgage loan’’ in 

their CRA regulations to mean not only 

a ‘‘home improvement loan’’ or a ‘‘home 

purchase loan,’’ but also a ‘‘refinancing’’ 

as that term was defined in 12 CFR 

203.2 of the Board’s Regulation C.5

On July 21, 2011, rulemaking 

authority for HMDA transferred from 

the Board to the Bureau pursuant to the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank 

Act).6 On October 15, 2015, the Bureau 

issued a final rule substantially revising 

Regulation C (12 CFR 1003), in part, to 

implement amendments to HMDA 

required by section 1094 of the DoddFrank Act (2015 HMDA Rule).7 The 

2015 HMDA Rule, which in relevant 

part has a January 1, 2018, effective 

date, revises the scope of transactions 

reportable under Regulation C.8 In some 

cases, the revised scope of loans 

reportable under HMDA is broader, and 

in other cases, it is more limited.9 For 

consumer-purpose transactions, the 

2015 HMDA Rule changes the 

traditional purpose-based reporting 

approach 10 to a dwelling-secured 

standard for all closed-end loans and 

open-end lines of credit that are for 

personal, family, or household purposes 

(i.e., consumer purpose).11 As a result, 

most consumer-purpose transactions, 

including closed-end mortgage loans, 

closed-end home equity loans, homeequity lines of credit, and reverse 

mortgages, will be reportable under 

HMDA if they are secured by a 

dwelling.12 Home improvement loans 

that are not secured by a dwelling (i.e., 

home improvement loans that are 

unsecured or that are secured by some 

other type of collateral), however, will 

now be excluded from Regulation C 

coverage.13

The 2015 HMDA Rule retains the 

traditional purpose-based reporting 

approach for all commercial-purpose 

transactions. Thus, if a dwellingsecured, commercial loan has the 

purpose of home purchase, home 

improvement, or refinancing, the loan 

will be subject to Regulation C.14

Commercial-purpose loans or lines of 

credit that are not for home purchase, 

home improvement, or refinancing will 

continue to be excluded from the 

regulation’s coverage under the 2015 

HMDA Rule, as are all primarily 

agricultural-purpose transactions.15

Effective January 1, 2018, Regulation 

C will require covered financial 

institutions to report applications for, 

and originations and purchases of, 

‘‘covered loans’’ that are secured by a 

dwelling. A ‘‘covered loan’’ is defined 

in 12 CFR 1003.2(e) to mean a closedend mortgage loan, as defined in 

§ 1003.2(d), or an open-end line of 

credit, as defined in § 1003.2(o), that is 

not an excluded transaction under 12 

CFR 1003.3(c).16 To conform to the new 


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Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43913 

loan or open-end line of credit, for which the total 

dollar amount is less than $500; 

8. The purchase of a partial interest in a closedend mortgage loan or open-end line of credit; 

9. A closed-end mortgage loan or open-end line 

of credit used primarily for agricultural purposes; 

10. A closed-end mortgage loan or open-end line 

of credit that is or will be made primarily for a 

business or commercial purpose, unless the closedend mortgage loan or open-end equity line of credit 

is a home improvement loan under § 1003.2(i), a 

home purchase under § 1003.2(j), or a refinancing 

under § 1003.2(p); 

11. A closed-end mortgage loan, if the financial 

institution originated fewer than 25 closed-end 

mortgage loans in either of the two preceding 

calendar years; a financial institution may collect, 

record, report, and disclose information, as 

described in §§ 1003.4 and 1003.5, for such an 

excluded closed-end mortgage loan as though it 

were a covered loan, provided that the financial 

institution complies with such requirements for all 

applications for closed-end mortgage loans that it 

receives, closed-end mortgage loans that it 

originates, and closed-end mortgage loans that it 

purchases that otherwise would have been covered 

loans during the calendar year during which final 

action is taken on the excluded closed-end 

mortgage loan; or 

12. An open-end equity line of credit, if the 

financial institution originated fewer than 500 

open-end equity lines of credit in either of the two 

preceding calendar years; a financial institution 

may collect, record, report, and disclose 

information, as described in §§ 1003.4 and 1003.5, 

for such an excluded open-end line of credit as 

though it were a covered loan, provided that the 

financial institution complies with such 

requirements for all applications for open-end lines 

of credit that it receives, open-end lines of credit 

that it originates, and open-end lines of credit that 

it purchases that otherwise would have been 

covered loans during the calendar year during 

which final action is taken on the excluded openend line of credit (as noted above, the increased 

threshold from 100 to 500 open-end lines of credit 

is temporary and applies only to calendar years 

2018 and 2019; absent action from the Bureau, the 

threshold for reporting open-end lines of credit 

reverts to 100 effective January 1, 2020); or 

13. A transaction that provided or, in the case of 

an application, proposed to provide new funds to 

the applicant or borrower in advance of being 

consolidated in a New York State consolidation, 

extension, and modification agreement classified as 

a supplemental mortgage under New York Tax Law 

section 255; the transaction is excluded only if final 

action on the consolidation was taken in the same 

calendar year as final action on the new funds 

transaction. 

17The 2017 HMDA Rule adds a new exclusion 

from reporting HMDA data for certain transactions 

concerning New York consolidation, extension, and 

modification agreements (also known as NY 

CEMAs) under new § 1003.3(c)(13). 18Q&A §ll.22(a)(1)—2. 

revisions in Regulation C, the proposed 

rule would revise the current definition 

of ‘‘home mortgage loan’’ in their CRA 

regulations, also effective on January 1, 

2018, to mean a ‘‘closed-end mortgage 

loan’’ or an ‘‘open-end line of credit,’’ as 

those terms are defined under new 12 

CFR 1003.2(d) and (o), respectively, and 

as may be amended from time to time, 

and that is not an excluded transaction 

under new 12 CFR 1003.3(c)(1)–(10) and 

(13), as may be amended from time to 

time.17 The Agencies have used the 

scope of HMDA reportable transactions 

to define ‘‘home mortgage loan’’ in the 

CRA regulations since 1995. The 

Agencies will review any amendments 

made to the cross-referenced definitions 

in HMDA to ensure that such crossreferenced terms continue to meet the 

statutory objectives of the CRA. 

As a result of the proposed revisions 

to the ‘‘home mortgage loan’’ definition, 

the manner in which some loan 

transactions are considered under CRA 

will be affected. Effective January 1, 

2018, home improvement loans that are 

not secured by a dwelling, which are 

currently required to be reported under 

Regulation C, will no longer be 

reportable transactions under the 2015 

HMDA Rule. Therefore, also effective 

January 1, 2018, for purposes of CRA, 

home improvement loans that are not 

secured by a dwelling may be 

considered at the option of the financial 

institution. A financial institution that 

opts to have its home improvement 

loans considered would need to collect 

and maintain data on these loans in 

machine readable form under the 

category of ‘‘other secured consumer 

loan’’ or ‘‘other unsecured consumer 

loan,’’ as appropriate. See 12 CFR ll

.12(j)(3) or (4). The Agencies note that, 

notwithstanding an institution’s option, 

home improvement loans that are not 

secured by a dwelling may still be 

evaluated by the Agencies under the 

lending test set out under 12 CFR ll

.22(a)(1), in circumstances where the 

consumer lending is so significant a 

portion of an institution’s lending by 

activity and dollar volume of loans that 

the lending test evaluation would not 

meaningfully reflect lending 

performance if consumer loans were 

excluded.18

Home equity lines of credit secured 

by a dwelling, which are currently 

reported at the option of the financial 

institution under Regulation C, will be 

covered loans under the 2015 HMDA 

Rule. Effective January 1, 2018, financial 

institutions that meet the reporting 

requirements under the 2015 HMDA 

Rule will be required to collect, 

maintain, and report data on home 

equity lines of credit secured by a 

dwelling. For purposes of CRA 

consideration, in the case of financial 

institutions that report closed-end 

mortgage loans and/or home equity 

lines of credit under the 2015 HMDA 

Rule, those loans would be considered 

as home mortgage loans under the 

proposed amended definition of ‘‘home 

mortgage loan.’’ The effect of the 

proposed change will vary depending 

upon the amount and characteristics of 

the financial institution’s mortgage loan 

portfolio. As with all aspects of an 

institution’s CRA performance 

evaluation, the performance context of 

the institution will affect how the 

Agencies will consider home equity 

lines of credit. Performance context 

includes a broad range of economic, 

demographic, and financial institution 

and community-specific information 

that the Agencies use to understand the 

circumstances in which a financial 

institution’s record of performance 

should be evaluated. Performance 

context information is used by the 

Agencies to support a financial 

institution’s level of performance and 

CRA performance rating. For financial 

institutions that would not be required 

to report these transactions under 

Regulation C, examiners may review the 

relevant files and consider these loans 

for CRA performance on a sampling 

basis under the home mortgage loan 

category. 

The Agencies request comment on 

their proposal to amend the definition 

of ‘‘home mortgage loan,’’ including 

how the amended definition may 

impact a financial institution’s CRA 

performance. 

Conforming Changes to the ‘‘Consumer 

Loan’’ Definition 

The CRA regulations currently define 

‘‘consumer loan’’ as a loan to one or 

more individuals for household, family, 

or other personal expenditures and that 

is not a home mortgage, small business, 

or small farm loan under 12 CFR 

ll.12(j). A ‘‘home equity loan’’ is one 

of five loan categories listed under the 

definition of ‘‘consumer loan’’ and is 

defined as a ‘‘consumer loan secured by 

a residence of the borrower’’ under 12 

CFR ll.12(j)(3). As noted above, the 

proposed CRA definition of ‘‘home 

mortgage loan’’ would refer to ‘‘closedend mortgage loans’’ and ‘‘open-end 

lines of credit’’ as those terms are 

defined in §§ 1003.2(d) and 1003.2(o), 

respectively, of Regulation C. Under 

Regulation C, a closed-end mortgage 

loan is defined ‘‘as an extension of 

credit secured by a lien on a dwelling,’’ 

and therefore, includes a home equity 

loan secured by a dwelling per 12 CFR 

1003.2(d), effective January 1, 2018. 

Thus, the Agencies believe it is no 

longer necessary to separately categorize 

home equity loans under the CRA 

definition of ‘‘consumer loan’’ because 

both home equity loans and home 

equity lines of credit would be 

specifically included in the proposed 

revised CRA definition of ‘‘home 

mortgage loan.’’ Accordingly, the 

proposed rule would remove the term 

‘‘home equity loan’’ from the list of 

consumer loan categories provided 

under the definition of ‘‘consumer loan’’ 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43914 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

19Public Law 110–289, 122 Stat. 2654 (2008). 

20 75 FR 79278 (Dec. 20, 2010). 

21See https://www.hudexchange.info/resources/ 

documents/NSP3_100_Expenditure_Deadline.pdf. 

in 12 CFR ll.12(j). The Agencies 

request comment on their proposal to 

amend the definition of ‘‘consumer 

loan.’’ 

Changes to the Content of the Public 

File 

The CRA regulations currently 

provide that financial institutions shall 

maintain a public file of certain 

information and specify, among other 

things, the information that should be 

maintained and made available to the 

public upon request under 12 CFRll

.43(a)–(d). Currently, a financial 

institution that is required to report 

HMDA data under Regulation C must 

include a copy of the HMDA disclosure 

statement that is provided to each 

financial institution by the Federal 

Financial Institutions Examination 

Council in the institution’s CRA public 

file for each of the prior two calendar 

years per 12 CFR ll.43(b)(2). 

However, pursuant to changes to 

Regulation C under the 2015 HMDA 

Rule, which becomes effective January 

1, 2018, financial institutions will no 

longer be required to provide this 

HMDA disclosure statement directly to 

the public. Instead, pursuant to 

Regulation C, a financial institution will 

only be required to provide a notice that 

clearly conveys to the public that they 

can obtain a copy of the financial 

institution’s disclosure statement on the 

Bureau’s Web site under 12 CFR 

1003.5(b). As a result, the proposed rule 

would amend the CRA public file 

content requirements under 12 CFRll

.43(b)(2) for consistency and to reduce 

burden. Specifically, under the 

proposal, institutions that are required 

to report HMDA data would need to 

only maintain the notice required under 

Regulation C in their CRA public file, 

rather than a copy of the HMDA 

disclosure statement. The Agencies 

request comment on their proposal to 

amend the CRA public file content 

requirements. 

As explained in more detail under the 

Regulatory Analysis section of this 

proposal, the Agencies expect the 

proposed changes to the CRA 

definitions and to the content of the 

public file, to reflect revisions made to 

the Bureau’s Regulation C, to generally 

have little economic effect and believe 

the proposed changes would not create 

additional regulatory burden on 

financial institutions. 

Technical Amendments 

‘‘Home Equity’’ When Used as a 

Category of Consumer Loans 

As indicated above, the proposed rule 

would remove the term ‘‘home equity 

loan’’ currently included under 12 CFR 

ll.12(j)(3) from the categories of 

consumer loans listed in 12 CFR ll

.12(j). Based on the new proposed 

definition of ‘‘consumer loan,’’ any 

cross-references to home equity loans as 

a category of ‘‘consumer loans’’ in the 

CRA regulations would be invalid. As a 

result, the proposed rule would amend 

12 CFR ll.22, Lending Test, and 12 

CFR l.42, Data Collection, Reporting, 

and Disclosure, to remove the term 

‘‘home equity’’ each time it appears as 

a category of consumer loans. 

Technical Revision to the ‘‘Community 

Development Loan’’ Definition 

The CRA regulations under 12 CFR 

ll.12(h) currently define ‘‘community 

development loan’’ as a loan that, 

(1) Has as its primary purpose, community 

development; and 

(2) Except in the case of a wholesale or 

limited purpose bank: 

(i) Has not been reported or collected by 

the bank or an affiliate for consideration in 

the bank’s assessment as a home mortgage, 

small business, small farm, or consumer loan, 

unless it is a multifamily dwelling loan (as 

described in appendix A to part 1003 of this 

title); and 

(ii) Benefits the bank’s assessment area(s) 

or a broader statewide or regional area that 

includes the bank’s assessment area(s). 

Effective January 1, 2019, the 2015 

HMDA Rule removes appendix A from 

Regulation C. The instructions for 

completion of the HMDA LAR currently 

found in part 1 of that appendix A will 

not apply to data collected pursuant to 

the amendments to Regulation C that are 

effective January 1, 2018. The 

substantive requirements found in 

existing appendix A will be moved to 

the text and commentary of Regulation 

C and going forward, any reference to 

appendix A will become obsolete. As a 

result, the Agencies believe that the 

reference to appendix A of Regulation C 

in the ‘‘community development loan’’ 

definition in the CRA regulations needs 

to be removed. Moreover, effective 

January 1, 2018, the term ‘‘multifamily 

dwelling’’ will be specifically defined 

under 12 CFR 1003.2(n). Accordingly, 

the proposed rule would remove the 

reference to appendix A in the 

definition of ‘‘community development 

loan’’ and replace it with a reference to 

the definition of ‘‘multifamily dwelling’’ 

under new 12 CFR 1003.2(n). 

Removal of Obsolete Language Related 

to the NSP 

The NSP was authorized by the 

Housing and Economic Recovery Act 19

to stabilize communities suffering from 

foreclosures and abandonment. On 

December 20, 2010, the Agencies issued 

a joint final rule amending the 

definition of ‘‘community development’’ 

to include qualifying NSP-related 

activities that benefit low-, moderate-, 

and middle-income individuals and 

geographies in NSP-target areas.20

Under the joint final rule, NSP-eligible 

activities would receive consideration if 

conducted no later than two years after 

the last date appropriated funds for the 

program were required to be spent by 

the grantees. After the two-year period, 

the rule would cease to apply. The last 

date appropriated funds were required 

to be spent by grantees was March 

2014.21 Thus, pursuant to 12 CFR ll

.12(g)(5)(ii), after March 2016, NSPeligible activities no longer receive 

consideration as ‘‘community 

development’’ under the CRA 

regulations. On that basis, the proposed 

rule would amend 12 CFR 25.12, 

195.12, 228.12, and 345.12 to revise the 

definition of ‘‘community development’’ 

to remove qualifying NSP-related 

activities that benefit low-, moderate-, 

and middle-income individuals and 

geographies in NSP-targeted areas. 

The Agencies request comment on 

their proposal to make the technical 

amendments described above. 

The Agencies note that they plan to 

make conforming changes to the 

relevant Interagency CRA Q&As if the 

proposed changes to the CRA 

regulations become final. 

Effective Date 

The proposed rule would have an 

effective date of January 1, 2018, to 

conform to the effective date of the 

revisions resulting from the Bureau’s 

Regulation C. The Agencies request 

comment on the proposed effective date. 

Regulatory Analysis 

Regulatory Flexibility Act 

OCC: In general, the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601 et 

seq.) requires that in connection with a 

rulemaking, an agency prepare and 

make available for public comment a 

regulatory flexibility analysis that 

describes the impact of the rule on small 

entities. Under section 605(b) of the 

RFA, this analysis is not required if an 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities 

and publishes its certification and a 

brief explanatory statement in the 

Federal Register along with its rule. 

The OCC currently supervises 

approximately 956 small entities. 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43915 

22See 5 U.S.C. 601 et seq. 

23Call Report Data as of June 30, 2017. 

24 2016 HMDA Data and Call Report Data as of 

June 30, 2017. 

25 2015 Summary of Deposits Data. 

26Estimated total hourly compensation for 

Compliance Officers in the Depository Credit 

Intermediation sector as of December 2016. The 

estimate includes the May 2015 90th percentile 

hourly wage rate reported by the Bureau of Labor 

Statistics, National Industry-Specific Occupational 

Employment, and Wage Estimates. This wage rate 

has been adjusted for changes in the Consumer 

Price Index for all Urban Consumers between May 

2015 and December 2016 (2.5 percent) and grossed 

up by 54.3 percent to account for non-monetary 

compensation as reported by the December 2016 

Employer Costs for Employee Compensation Data. 

27Assuming that each covered institution will no 

longer have to print and file the CRA notification, 

the recordkeeping burden for each branch office 

declines by 10 minutes for all 7.9 branch offices, 

for all 304 small entities that are HMDA filers. 

28The open-end lines of credit threshold will 

increase from 100 to 500 loans on a temporary basis 

for a period of two years (calendar years 2018 and 

2019) pursuant to the 2017 HMDA Rule. The 

Bureau is not making the threshold increase for 

open-end lines of credit permanent at this time. 

Absent further action by the Bureau, effective 

January 1, 2020, the open-end threshold will be 

restored to the 2015 HMDA Rule level of 100 openend lines of credit, and creditors originating 

between 100 and 499 open-end lines of credit will 

need to begin collecting and reporting HMDA data 

for open-end lines of credit at this time. 

Although the proposed rule would 

apply to all OCC-supervised financial 

institutions, we anticipate that the 

proposal would not impose costs on any 

OCC-supervised financial institutions 

since the proposed rule does not impose 

new requirements or include new 

mandates. Any burden that may be 

associated with changes made to 

Regulation C HMDA reporting are a 

result of Bureau rulemakings. However, 

the proposed rule may reduce regulatory 

costs for covered financial institutions 

that are required to report HMDA data 

because those institutions would no 

longer be required to keep two years of 

HMDA disclosure statements in their 

CRA public file. Instead, covered 

financial institutions would provide a 

notice in the public file with a Web site 

address indicating where the HMDA 

disclosure statements can be accessed. 

Among the small entities that the OCC 

currently supervises, 518 are HMDA 

reporters. By not having to keep paper 

copies of the HMDA disclosure 

statements in their CRA public file, the 

OCC estimates that the savings for these 

small entities will be less than $1,142 

(10 hours × $114.20 per hour) per entity. 

Therefore, the proposal will not have a 

significant economic impact on a 

substantial number of small entities. 

Accordingly, the OCC certifies that the 

joint proposed rule, if promulgated, will 

not have a significant economic impact 

on a substantial number of small OCCsupervised entities. 

Board: The RFA (5 U.S.C. 601 et seq.) 

generally requires an agency to publish 

an initial regulatory flexibility analysis 

with a proposed rule or certify that the 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities.22 Based on its 

analysis, and for the reasons stated 

below, the Board believes that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. Nevertheless, 

the Board is publishing an initial 

regulatory flexibility analysis and 

requests public comment on all aspects 

of its analysis. The Board will, if 

necessary, conduct a final regulatory 

flexibility analysis after considering the 

comments received during the public 

comment period. 

There are 820 Board-supervised state 

member banks, and 566 are identified as 

small entities according to the RFA.23

The Board estimates that the proposed 

rule will have generally small economic 

effects for small entities. The new CRA 

public file disclosure statement option 

will reduce recordkeeping burden for 

covered financial institutions. 

Additionally, the Board expects that the 

proposed changes to definitions within 

the CRA performance standards will 

have little impact on supervisory 

assessments of CRA performance 

generally, but could affect some 

financial institutions more than others 

depending upon the amount and 

characteristics of their loan portfolio. 

The proposed rule changes the CRA 

public file notification requirements for 

covered financial institutions. Financial 

institutions that are required to report 

HMDA data can maintain the notice 

required under Regulation C in their 

CRA public file of their branch office, 

rather than the HMDA Disclosure 

Statement. By allowing covered 

financial institutions to utilize the same 

disclosure for both purposes, the 

proposed rule will reduce compliance 

burden. As previously stated, there are 

566 Board-supervised entities that are 

identified as small entities by the terms 

of the RFA. Of those, 304 were HMDA 

filers in 2016.24 All FDIC-insured 

financial institutions reported having 

31,096 branch offices, for an average of 

7.9 branches per financial institution.25

The Board assumes it takes one 

employee 10 minutes at a rate of $76.61 

an hour 26 to print and file the CRA 

notification and an additional 10 

minutes to print and file the HMDA 

notification per year. This equates to an 

estimated annual printing and filing 

cost of $25.54 per branch office. 

Therefore, complying with the new rule 

will save small entities an estimated 

$61,336.86 in costs per year.27

The Board expects the proposed 

changes to definitions within the CRA 

performance standards to generally have 

little economic effect for small entities, 

however the amendments could pose 

some effects for individual entities 

depending upon the amount and 

characteristics of their loan portfolio. As 

noted previously, in some cases the 

revised scope of the CRA definitions is 

broader, and in other cases, it is more 

limited. These changes could affect 

supervisory assessment of CRA 

performance for small entities. 

However, it is unlikely that small 

financial institutions will be 

significantly affected given that HMDA 

reporting will be limited to financial 

institutions that originate more than 25 

home mortgage loans or 100 home 

equity lines of credit each year.28 There 

could be a net effect on CRA 

examination results for some small 

entities which may, in turn, affect the 

future behavior of those financial 

institutions. But, it is difficult to 

accurately determine the likelihood and 

degree of aggregate lending or economic 

effects that may result because they are 

dependent upon firm-specific business 

plans and propensities to lend. 

Finally, Board-supervised small 

entities will likely benefit from the 

harmonization of definitions for CRA 

performance standards with HMDA data 

reporting requirements by avoiding 

unnecessary confusion and costs. 

Inconsistencies between CRA 

examination metrics and the HMDA 

data, which is used to assess 

performance, could lead to misleading 

results causing small entities to change 

future lending behavior. 

1. Statement of the need for, and 

objectives of, the proposed rule. The 

proposed rule makes revisions to certain 

definitions in the current CRA 

regulations and the public file content 

requirements to conform to recent 

changes made by the Bureau to 

Regulation C, removes cross references 

related to the proposed definitional 

changes, and removes an obsolete 

reference to the NSP. 

2. Small entities affected by the 

proposed rule. State member banks that 

are subject to the Board’s CRA 

regulation would be affected. The Board 

currently supervises approximately 566 

small entities, and does not believe the 

proposed rule will have a significant 

economic impact on these entities. As 

noted, the Board believes that the 

proposed changes to the definition of 

‘‘home mortgage loan’’ and ‘‘consumer 

loan’’ will have minimal impact on 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43916 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

29Call Report Data as of Dec. 31, 2016. 

30 2015 HMDA Data and Call Report Data as of 

Dec. 31, 2015. 

31 2015 Summary of Deposits Data. 

32Estimated total hourly compensation for 

Compliance Officers in the Depository Credit 

Intermediation sector as of December 2016. The 

estimate includes the May 2015 90th percentile 

hourly wage rate reported by the Bureau of Labor 

Statistics, National Industry-Specific Occupational 

Employment, and Wage Estimates. This wage rate 

has been adjusted for changes in the Consumer 

Price Index for all Urban Consumers between May 

2015 and December 2016 (2.5 percent) and grossed 

up by 54.3 percent to account for non-monetary 

compensation as reported by the December 2016 

Employer Costs for Employee Compensation Data. 

33Assuming that each covered institution will no 

longer have to print and file the CRA notification, 

the recordkeeping burden for each branch office 

declines by 10 minutes for all 7.9 branch offices, 

for all 1,856 small entities that are HMDA filers. 

34The open-end lines of credit threshold will 

increase from 100 to 500 loans on a temporary basis 

for a period of two years (calendar years 2018 and 

2019) pursuant to the 2017 HMDA Rule. The 

Bureau is not making the threshold increase for 

open-end lines of credit permanent at this time. 

Absent further action by the Bureau, effective 

January 1, 2020, the open-end threshold will be 

restored to the 2015 HMDA Rule level of 100 openend lines of credit, and creditors originating 

between 100 and 499 open-end lines of credit will 

need to begin collecting and reporting HMDA data 

for open-end lines of credit at this time. 

supervisory assessments of a financial 

institution’s CRA performance 

generally, but could affect some 

financial institutions more than others 

depending on the characteristics of their 

loan portfolios. For example, home 

improvement loans that are not secured 

by a dwelling, which are currently 

required to be reported under 

Regulation C, will no longer be 

reportable transactions under HMDA, 

effective January 1, 2018. A financial 

institution that opts to have these loans 

considered would need to collect and 

maintain data on these loans in machine 

readable form under the category of 

‘‘other secured consumer loan’’ or 

‘‘other unsecured consumer loan,’’ as 

appropriate. 

The Board invites comment on the 

effect of the proposed rule on small 

entities. 

3. Recordkeeping, reporting, and 

compliance requirements. The proposed 

rule would impose minor 

recordkeeping, reporting, or compliance 

requirements on some entities. 

Additionally, it is anticipated that by 

allowing covered financial institutions 

to utilize the Regulation C notice that 

clearly conveys to the public that they 

can obtain a copy of the financial 

institution’s HMDA disclosure 

statement at the Bureau’s Web site to 

satisfy the associated CRA public file 

content requirements the proposed rule 

will reduce compliance burden. 

4. Other federal rules. The Board has 

not identified any federal rules that 

duplicate, overlap, or conflict with the 

proposed rule. 

5. Significant alternatives to the 

proposed revisions. The Board is not 

aware of any significant alternatives that 

would further minimize the impact on 

small entities of the proposed rule, but 

solicits comment on any significant 

alternatives that would reduce the 

regulatory burden associated on small 

entities with this proposed rule. 

FDIC: The RFA (5 U.S.C. 601 et seq.) 

generally requires that, in connection 

with a notice of proposed rulemaking, 

an agency prepare and make available 

for public comment an initial regulatory 

flexibility analysis that describes the 

impact of a proposed rule on small 

entities (defined in regulations 

promulgated by the Small Business 

Administration to include banking 

organizations with total assets of less 

than or equal to $550 million). A 

regulatory flexibility analysis, however, 

is not required if the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities, and publishes 

its certification and a short explanatory 

statement in the Federal Register 

together with the proposed rule. For the 

reasons provided below, the FDIC 

certifies that the proposed rule will not 

have a significant economic impact on 

a substantial number of small entities. 

There are 3,787 FDIC-supervised 

financial institutions, and 3,080 are 

identified as small entities according to 

the RFA.29 The FDIC estimates that the 

proposed rule would have generally 

small economic effects for small 

entities. The new proposed CRA public 

file disclosure statement option would 

reduce regulatory costs for covered 

financial institutions. Additionally, the 

FDIC expects that the proposed changes 

to definitions within the CRA 

performance standards would have little 

impact on supervisory assessments of 

CRA performance generally, but could 

affect some financial institutions more 

than others depending upon the amount 

and characteristics of their loan 

portfolio. 

The proposed rule changes the CRA 

public file notification requirements for 

covered financial institutions. Financial 

institutions required to report HMDA 

data can maintain the notice required 

under Regulation C in the CRA public 

file of their branch office, rather than 

the HMDA Disclosure Statement. By 

allowing covered financial institutions 

to utilize the same disclosure for both 

purposes, the proposed rule would 

reduce regulatory costs. As previously 

stated, there are 3,080 FDIC-supervised 

entities that are identified as small 

entities by the terms of the RFA. Of 

those, 1,856 were HMDA filers in 

2015.30 All FDIC-insured financial 

institutions reported having 31,096 

branch offices, for an average of 7.9 

branches per financial institution.31 The 

FDIC assumes it takes one employee 10 

minutes at a rate of $76.61 an hour 32 to 

print and file the CRA notification and 

an additional 10 minutes to print and 

file the HMDA notification per year. 

This equates to an estimated annual 

printing and filing cost of $25.54 per 

branch office. Therefore, complying 

with the new rule would save small 

entities an estimated $187,214 in costs 

per year.33

The FDIC expects the proposed 

changes to definitions within the CRA 

performance standards to generally have 

little economic effect for small entities, 

however the amendments could pose 

some effects for individual entities 

depending upon the amount and 

characteristics of their loan portfolio. As 

noted previously, in some cases the 

revised scope of the CRA definitions is 

broader, and in other cases, it is more 

limited. These changes could affect 

supervisory assessment of CRA 

performance for small entities. 

However, it is unlikely that small 

financial institutions would be 

significantly affected given that HMDA 

reporting will be limited to financial 

institutions that originate more than 25 

home mortgage loans or 100 home 

equity lines of credit each year.34 There 

could be a net effect on CRA 

examination results for some small 

entities which may, in turn, affect the 

future behavior of those financial 

institutions. But, it is difficult to 

accurately determine the likelihood and 

degree of aggregate lending or economic 

effects that may result because they are 

dependent upon firm-specific business 

plans and propensities to lend. 

Finally, FDIC-supervised small 

entities would likely benefit from the 

harmonization of definitions for CRA 

performance standards with HMDA data 

reporting requirements by avoiding 

unnecessary confusion and costs. 

Inconsistencies between CRA 

examination metrics and the HMDA 

data which is used to assess 

performance could lead to misleading 

results causing small entities to change 

future lending behavior. 

Paperwork Reduction Act of 1995 

Certain provisions of the proposed 

rule contain ‘‘collection of information’’ 

requirements within the meaning of the 

Paperwork Reduction Act (PRA) of 1995 

(44 U.S.C. 3501–3521). In accordance 

with the requirements of the PRA, the 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43917 

35OMB Control Number 1557–0159 (OCC); OMB 

Control Number 7100–0247 (Board); and OMB 

Control Number 3064–0046 (FDIC). 

36As noted above in footnote 2, the Dodd-Frank 

Act transferred from the OTS all authorities 

(including rulemaking) relating to savings 

associations to the OCC and all authorities 

(including rulemaking) relating to savings and loan 

holding companies (SLHCs) to the Board on July 21, 

2011. 

37See 60 FR 22156 (May 4, 1995). 

38Beginning January 18, 2017, banks and savings 

associations that, as of December 31 of either of the 

prior two calendar years, had assets of less than 

$1.226 billion are small banks or small savings 

associations. Small banks or small savings 

associations with assets of at least $307 million as 

of December 31 of both of the prior two calendar 

years, and less than $1.226 billion as of December 

31 of either of the prior two calendar years, are 

intermediate small banks or intermediate small 

savings associations. 

39See 82 FR 5354 (Jan. 18, 2017). 

Agencies may not conduct or sponsor, 

and the respondent is not required to 

respond to, an information collection 

unless it displays a currently-valid 

Office of Management and Budget 

(OMB) control number. The information 

collection requirements contained in 

this proposed rulemaking have been 

submitted by the OCC and FDIC to OMB 

for review and approval under section 

3507(d) of the PRA (44 U.S.C. 3507(d)) 

and section 1320.11 of the OMB’s 

implementing regulations (5 CFR 1320). 

The OMB control number for the OCC 

is 1557–0160 and the FDIC is 3064– 

0092. The OMB control number for the 

Board is 7100–0197 and will be 

extended, with revision. The Board 

reviewed the proposed rule under the 

authority delegated to the Board by 

OMB. 

Under this proposal, effective January 

1, 2018, financial institutions required 

to collect data under the CRA would 

also be required to collect data for openend lines of credit in MSA and nonMSA areas where they have no branch 

or home office. The Agencies estimate 

that this proposed change would not 

result in an increase in burden under 

the currently approved CRA information 

collections because the burden 

associated with the above-described 

requirement is accounted for under the 

HMDA information collections.35

The agencies have determined that 

the proposed revised definition of 

‘‘home mortgage loan’’ to include home 

equity lines of credit and to exclude 

home improvement loans that are not 

secured by a dwelling (i.e., home 

improvement loans that are unsecured 

or that are secured by some other type 

of collateral) does not warrant a change 

to the current burden estimates. 

Comments are invited on: 

(a) Whether the collections of 

information are necessary for the proper 

performance of the Agencies’ functions, 

including whether the information has 

practical utility; 

(b) The accuracy of the estimates of 

the burden of the information 

collections, including the validity of the 

methodology and assumptions used; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the information collections on 

respondents, including through the use 

of automated collection techniques or 

other forms of information technology; 

and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

All comments will become a matter of 

public record. Comments on aspects of 

this notice that may affect reporting, 

recordkeeping, or disclosure 

requirements and burden estimates 

should be sent to the addresses listed in 

the ADDRESSES section of this document. 

A copy of the comments may also be 

submitted to the OMB desk officer for 

the Agencies: By mail to U.S. Office of 

Management and Budget, 725 17th 

Street NW., #10235, Washington, DC 

20503; by facsimile to (202) 395–5806; 

or by email to: oira_submission@

omb.eop.gov, Attention, Federal 

Banking Agency Desk Officer. 

Proposed Information Collection 

Title of Information Collection: 

Reporting, Recordkeeping, and 

Disclosure Requirements Associated 

with the Community Reinvestment Act 

(CRA). 

Frequency of Response: Annually. 

Affected Public: Businesses or other 

for-profit. 

Respondents: 

OCC: National banks, trust 

companies, savings associations (except 

special purpose savings associations 

pursuant to 12 CFR 195.11(c)(2)), 

insured Federal branches and any 

Federal branch that is uninsured that 

results from an acquisition described in 

section 5(a)(8) of the International 

Banking Act of 1978 (12 U.S.C. 

3103(a)(8)). 

Board: State member banks. 

FDIC: Insured state nonmember banks 

and insured state branches. 

Abstract: The CRA was enacted in 

1977 and is implemented by 12 CFR 

parts 25, 195, 228, and 345. The CRA 

directs the Agencies to evaluate 

financial institutions’ records of helping 

to meet the credit needs of their entire 

communities, including low- and 

moderate-income areas consistent with 

the safe and sound operation of the 

institutions. The CRA is implemented 

through regulations issued by the 

Agencies.36

In 1995, the federal banking agencies 

issued substantially identical 

regulations under CRA to reduce 

unnecessary compliance burden, 

promote consistency in CRA 

assessments, and encourage improved 

performance.37 As a result, the current 

reporting, recordkeeping, and disclosure 

requirements under the CRA regulations 

depend in part on a bank’s size. 

Under the CRA regulations, large 

banks are defined as those with assets 

of $1.226 billion or more for the past 

two consecutive year-ends; all other 

banks are considered small or 

intermediate.38 The banking agencies 

amend the definition of a small bank 

and an intermediate small bank in their 

CRA regulations each year when the 

asset thresholds are adjusted for 

inflation pursuant to the CRA 

regulations, most recently in January 

2017.39

Other than the information collections 

pursuant to the CRA, the Agencies have 

no information collection that supplies 

data regarding the community 

reinvestment activities. 

PRA Burden Estimates 

OCC 

Number of respondents: 

Recordkeeping requirement, small 

business and small farm loan register, 

142; Optional recordkeeping 

requirements, consumer loan data, 85, 

and other loan data, 25; Reporting 

requirements, assessment area 

delineation, 189; loan data: Small 

business and small farm, 142, 

community development, 142, and 

HMDA out of MSA, 142; Optional 

reporting requirements, data on lending 

by a consortium or third party, 31; 

affiliate lending data, 9; request for 

strategic plan approval, 5; request for 

designation as a wholesale or limited 

purpose bank, 12; Disclosure 

requirement, public file, 1,234. 

Estimated average hours per response: 

Recordkeeping requirement, small 

business and small farm loan register: 

219 hours; Optional recordkeeping 

requirements, consumer loan data, 326 

hours, and other loan data, 25 hours; 

Reporting requirements, assessment area 

delineation, 2 hours; loan data: Small 

business and small farm, 8 hours, 

community development, 13 hours, and 

HMDA out of MSA, 253 hours; Optional 

reporting requirements, data on lending 

by a consortium or third party, 17 hours; 

affiliate lending data, 38 hours; request 

for strategic plan approval, 275 hours; 

request for designation as a wholesale or 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43918 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

40The OCC anticipates that the proposal would 

not impose costs on any OCC-supervised financial 

institutions since the proposed rule does not 

impose new requirements or include new 

mandates. Any burden that may be associated with 

changes made to Regulation C HMDA reporting are 

a result of CFPB rulemakings. 

limited purpose bank, 4 hours; 

Disclosure requirement, public file, 10 

hours. 

Estimated annual reporting hours: 

Recordkeeping requirement, small 

business and small farm loan register: 

31,098 hours; Optional recordkeeping 

requirements, consumer loan data, 

27,710 hours and other loan data, 625 

hours; Reporting requirements, 

assessment area delineation, 378 hours; 

loan data: Small business and small 

farm, 1,136 hours, community 

development, 1,846 hours, and HMDA 

out of MSA, 35,926 hours; Optional 

reporting requirements, data on lending 

by a consortium or third party, 527 

hours; affiliate lending data, 342 hours; 

request for strategic plan approval, 

1,375 hours; request for designation as 

a wholesale or limited purpose bank, 48 

hours; Disclosure requirement, public 

file, 12,340 hours. 

Total annual burden: 113,351 hours. 

Board 

Number of respondents: 

Recordkeeping requirement, small 

business and small farm loan register, 

94; Optional recordkeeping 

requirements, consumer loan data, 21, 

and other loan data, 15; Reporting 

requirements, assessment area 

delineation, 98; loan data: Small 

business and small farm, 94, community 

development, 98, and HMDA out of 

MSA, 89; Optional reporting 

requirements, data on lending by a 

consortium or third party, 9; affiliate 

lending data, 8; request for strategic 

plan approval, 2; request for designation 

as a wholesale or limited purpose bank, 

1; Disclosure requirement, public file, 

817. 

Estimated average hours per response: 

Recordkeeping requirement, small 

business and small farm loan register: 

219 hours; Optional recordkeeping 

requirements, consumer loan data, 326 

hours, and other loan data, 25 hours; 

Reporting requirements, assessment area 

delineation, 2 hours; loan data: Small 

business and small farm, 8 hours, 

community development, 13 hours, and 

HMDA out of MSA, 253 hours; Optional 

reporting requirements, data on lending 

by a consortium or third party, 17 hours; 

affiliate lending data, 38 hours; request 

for strategic plan approval, 275 hours; 

request for designation as a wholesale or 

limited purpose bank, 4 hours; 

Disclosure requirement, public file, 10 

hours. 

Estimated annual reporting hours: 

Recordkeeping requirement, small 

business and small farm loan register: 

20,586 hours; Optional recordkeeping 

requirements, consumer loan data, 6,846 

hours and other loan data, 375 hours; 

Reporting requirements, assessment area 

delineation, 196 hours; loan data: Small 

business and small farm, 752 hours, 

community development, 1,274 hours, 

and HMDA out of MSA, 22,517 hours; 

Optional reporting requirements, data 

on lending by a consortium or third 

party, 153 hours; affiliate lending data, 

304 hours; request for strategic plan 

approval, 550 hours; request for 

designation as a wholesale or limited 

purpose bank, 4 hours; Disclosure 

requirement, public file, 8,170 hours. 

Total annual burden: 61,727 hours. 

FDIC 

Number of respondents: Reporting 

requirements: Request for designation as 

a wholesale or limited purpose bank, 1 

respondent; Strategic plan, 7 

respondents; Small business/small farm 

loan data, 393 respondents; Community 

development loan data, 393 

respondents; Home mortgage loans, 393 

respondents; Data on affiliate lending, 

200 respondents; Data on lending by a 

consortium or a third party, 75 

respondents; and Assessment area data, 

393 respondents; Recordkeeping 

requirements: Small business/small 

farm loan register, 393 respondents; 

Optional consumer loan data, 75 

respondents; and Other loan data, 100 

respondents; Disclosure requirements: 

Content and availability of public file, 

3,971 respondents. 

Estimated average hours per response: 

Reporting requirements: Request for 

designation as a wholesale or limited 

purpose bank, 4 hours; Strategic plan, 

400 hours; Small business/small farm 

loan data, 8 hours; Community 

development loan data, 13 hours; Home 

mortgage loans, 253 hours; Data on 

affiliate lending, 38 hours; Data on 

lending by a consortium or a third party, 

17 hours; and Assessment area data, 2 

hours; Recordkeeping requirements: 

Small business/small farm loan register, 

219 hours; Optional consumer loan 

data, 326 hours; and Other loan data, 25 

hours; Disclosure requirements: Content 

and availability of public file, 10 hours. 

Estimated annual reporting hours: 

Reporting requirements: Request for 

designation as a wholesale or limited 

purpose bank, 4 hours; Strategic plan, 

2,800 hours; Small business/small farm 

loan data, 3,144 hours; Community 

development loan data, 5,109 hours; 

Home mortgage loans, 99,429 hours; 

Data on affiliate lending, 7,600 hours; 

Data on lending by a consortium or a 

third party, 1,275 hours; and 

Assessment area data, 786 hours; 

Recordkeeping requirements: Small 

business/small farm loan register, 

86,067 hours; Optional consumer loan 

data, 24,450 hours; and Other loan data, 

2,500 hours; Disclosure requirements: 

Content and availability of public file, 

39,710 hours. 

Total annual burden: 272,874 hours. 

Unfunded Mandates Reform Act of 1995 

The OCC analyzed the proposed rule 

under the factors set forth in the 

Unfunded Mandates Reform Act of 1995 

(UMRA) (2 U.S.C. 1532). Under this 

analysis, the OCC considered whether 

the proposed rule includes a Federal 

mandate that may result in the 

expenditure by State, local, and Tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year (adjusted for inflation). 

The OCC has determined that this 

proposed rule would not result in 

expenditures by State, local, and Tribal 

governments, or the private sector, of 

$100 million or more in any one year.40

Accordingly, the OCC has not prepared 

a written statement to accompany this 

notice of proposed rulemaking. 

Plain Language 

Section 722 of the Gramm-LeachBliley Act requires the Agencies to use 

plain language in all proposed and final 

rules published after January 1, 2000. 

The Agencies invite comment on how to 

make this proposed rule easier to 

understand. 

For example: 

• Have the Agencies organized the 

material to inform your needs? If not, 

how could the Agencies present the 

proposed rule more clearly? 

• Are the requirements in the 

proposed rule clearly stated? If not, how 

could the proposal be more clearly 

stated? 

• Does the proposed regulation 

contain technical language or jargon that 

is not clear? If so, which language 

requires clarification? 

• Would a different format (grouping 

and order of sections, use of headings, 

paragraphing) make the proposed 

regulation easier to understand? If so, 

what changes would achieve that? 

• Is this section format adequate? If 

not, which of the sections should be 

changed and how? 

• What other changes can the 

agencies incorporate to make the 

proposed regulation easier to 

understand? 


sradovich on DSKBBY8HB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 43919 

List of Subjects 

12 CFR Part 25 

Community development, Credit, 

Investments, National banks, Reporting 

and recordkeeping requirements. 

12 CFR Part 195 

Community development, Credit, 

Investments, Reporting and 

recordkeeping requirements, Savings 

associations. 

12 CFR Part 228 

Banks, Banking, Community 

development, Credit, Investments, 

Reporting and recordkeeping 

requirements. 

12 CFR Part 345 

Banks, Banking, Community 

development, Credit, Investments, 

Reporting and recordkeeping 

requirements. 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

Authority and Issuance 

For the reasons discussed in the 

SUPPLEMENTARY INFORMATION section, the 

Office of the Comptroller of the 

Currency proposes to amend 12 CFR 

parts 25 and 195 as follows: 

PART 25—COMMUNITY 

REINVESTMENT ACT AND 

INTERSTATE DEPOSIT PRODUCTION 

REGULATIONS 

■ 1. The authority citation for part 25 

continues to read as follows: 

Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 

93a, 161, 215, 215a, 481, 1814, 1816, 1828(c), 

1835a, 2901 through 2908, and 3101 through 

3111. 

§ 25.12 [Amended] 

■ 2. Section 25.12 is amended: 

■ a. By adding ‘‘or’’ at the end of 

paragraph (g)(3); 

■ b. By removing ‘‘; or’’ at the end of 

(g)(4), and adding in its place ‘‘.’’; 

■ c. By removing paragraph (g)(5); 

■ d. In paragraph (h)(2)(i), by removing 

the phrase ‘‘unless it is a multifamily 

dwelling loan (as described in appendix 

A to part 1003 of this title)’’ and adding 

in its place the phrase ‘‘unless the loan 

is for a multifamily dwelling (as defined 

in § 1003.2(n) of this title)’’; 

■ e. By removing paragraph (j)(3), and 

redesignating paragraph (j)(4) as 

paragraph (j)(3) and redesignating 

paragraph (j)(5) as paragraph (j)(4); and 

■ f. In paragraph (l), by removing the 

phrase ‘‘ ‘home improvement loan,’ 

‘home purchase loan,’ or a ‘refinancing’ 

as defined in § 1003.2 of this title’’ and 

adding in its place the phrase ‘‘closedend mortgage loan or an open-end line 

of credit as these terms are defined 

under § 1003.2 of this title, and that is 

not an excluded transaction under 

§ 1003.3(c)(1)–(10) and (13) of this title’’. 

§ 25.22 [Amended] 

■ 3. Section 25.22 is amended in 

paragraph (a)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

§ 25.42 [Amended] 

■ 4. Section 25.42 is amended in 

paragraph (c)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

■ 5. Section 25.43 is amended by 

revising paragraph (b)(2) to read as 

follows: 

§ 25.43 Content and availability of public 

file. 

* * * * * 

(b) * * * 

(2) Banks required to report Home 

Mortgage Disclosure Act (HMDA) data. 

A bank required to report home 

mortgage loan data pursuant part 1003 

of this title shall include in its public 

file a written notice that the institution’s 

HMDA Disclosure Statement may be 

obtained on the Consumer Financial 

Protection Bureau’s (Bureau’s) Web site 

at www.consumerfinance.gov/hmda. In 

addition, a bank that elected to have the 

OCC consider the mortgage lending of 

an affiliate shall include in its public 

file the name of the affiliate and a 

written notice that the affiliate’s HMDA 

Disclosure Statement may be obtained at 

the Bureau’s Web site. The bank shall 

place the written notice(s) in the public 

file within three business days after 

receiving notification from the Federal 

Financial Institutions Examination 

Council of the availability of the 

disclosure statement(s). 

* * * * * 

PART 195—COMMUNITY 

REINVESTMENT 

■ 6. The authority citation for part 195 

continues to read as follows: 

Authority: 12 U.S.C. 1462a, 1463, 1464, 

1814, 1816, 1828(c), 2901 through 2908, and 

5412(b)(2)(B). 

§ 195.12 [Amended] 

■ 7. Section 195.12 is amended: 

■ a. By adding ‘‘or’’ at the end of 

paragraph (g)(3); 

■ b. By removing ‘‘; or’’ at the end of 

(g)(4), and adding in its place ‘‘.’’; 

■ c. By removing paragraph (g)(5); 

■ d. In paragraph (h)(2)(i), by removing 

the phrase ‘‘unless it is a multifamily 

dwelling loan (as described in appendix 

A to part 1003 of this title)’’ and adding 

in its place the phrase ‘‘unless the loan 

is for a multifamily dwelling (as defined 

in § 1003.2(n) of this title)’’; 

■ e. By removing paragraph (j)(3), and 

redesignating paragraph (j)(4) as 

paragraph (j)(3) and redesignating (j)(5) 

as paragraph (j)(4); and 

■ f. In paragraph (l), by removing the 

phrase ‘‘ ‘home improvement loan,’ 

‘home purchase loan,’ or a ‘refinancing’ 

as defined in § 1003.2 of this title’’ and 

adding in its place the phrase ‘‘closedend mortgage loan or an open-end line 

of credit as these terms are defined 

under § 1003.2 of this title and that is 

not an excluded transaction under 

§ 1003.3(c)(1)–(10) and (13) of this title’’. 

§ 195.22 [Amended] 

■ 8. Section 195.22 is amended in 

paragraph (a)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

§ 195.42 [Amended] 

■ 9. Section 195.42 is amended in 

paragraph (c)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

■ 10. Section 195.43 is amended by 

revising paragraph (b)(2) to read as 

follows: 

§ 195.43 Content and availability of public 

file. 

* * * * * 

(b) * * * 

(2) Savings associations required to 

report Home Mortgage Disclosure Act 

(HMDA) data. A savings association 

required to report home mortgage loan 

data pursuant part 1003 of this title 

shall include in its public file a written 

notice that the institution’s HMDA 

Disclosure Statement may be obtained 

on the Consumer Financial Protection 

Bureau’s (Bureau’s) Web site at 

www.consumerfinance.gov/hmda. In 

addition, a savings association that 

elected to have the appropriate Federal 

banking agency consider the mortgage 

lending of an affiliate shall include in 

its public file the name of the affiliate 

and a written notice that the affiliate’s 

HMDA Disclosure Statement may be 

obtained at the Bureau’s Web site. The 

savings association shall place the 

written notice(s) in the public file 

within three business days after 

receiving notification from the Federal 

Financial Institutions Examination 

Council of the availability of the 

disclosure statement(s). 

* * * * * 

Federal Reserve System 

12 CFR Chapter II 

Authority and Issuance 

For the reasons discussed in the 

SUPPLEMENTARY INFORMATION section, the 


sradovich on DSKBBY8HB2PROD with PROPOSALS
43920 Federal Register / Vol. 82, No. 181 / Wednesday, September 20, 2017 / Proposed Rules 

Board of Governors of the Federal 

Reserve System proposes to amend part 

228 of chapter II of title 12 of the Code 

of Federal Regulations as follows: 

PART 228—COMMUNITY 

REINVESTMENT (REGULATION BB) 

■ 1. The authority citation for part 228 

continues to read as follows: 

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

1842, 1843, 1844, and 2901 et seq. 

§ 228.12 [Amended] 

■ 2. Section 228.12 is amended: 

■ a. By adding ‘‘or’’ at the end of 

paragraph (g)(3); 

■ b. By removing ‘‘; or’’ at the end of 

(g)(4), and adding in its place ‘‘.’’; 

■ c. By removing paragraph (g)(5); 

■ d. In paragraph (h)(2)(i), by removing 

the phrase ‘‘unless it is a multifamily 

dwelling loan (as described in appendix 

A to part 1003 of this title)’’ and adding 

in its place the phrase ‘‘unless the loan 

is for a multifamily dwelling (as defined 

in § 1003.2(n) of this title)’’; 

■ e. By removing paragraph (j)(3), and 

redesignating paragraph (j)(4) as 

paragraph (j)(3) and redesignating 

paragraph (j)(5) as paragraph (j)(4); and 

■ f. In paragraph (l), by removing the 

phrase ‘‘ ‘home improvement loan,’ 

‘home purchase loan,’ or a ‘refinancing’ 

as defined in § 1003.2 of this title’’ and 

adding in its place the phrase, ‘‘closedend mortgage loan or an open-end line 

of credit as these terms are defined 

under § 1003.2 of this title and that is 

not an excluded transaction under 

§ 1003.3(c)(1)–(10) and (13) of this title’’. 

§ 228.22 [Amended] 

■ 3. Section 228.22 is amended in 

paragraph (a)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

§ 228.42 [Amended] 

■ 4. Section 228.42 is amended in 

paragraph (c)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

■ 5. Section 228.43 is amended by 

revising paragraph (b)(2), to read as 

follows: 

§ 228.43 Content and availability of public 

file. 

* * * * * 

(b) * * * 

(2) Banks required to report Home 

Mortgage Disclosure Act (HMDA) data. 

A bank required to report home 

mortgage loan data pursuant part 1003 

of this title shall include in its public 

file a written notice that the institution’s 

HMDA Disclosure Statement may be 

obtained on the Consumer Financial 

Protection Bureau’s (Bureau’s) Web site 

at www.consumerfinance.gov/hmda. In 

addition, a bank that elected to have the 

Board consider the mortgage lending of 

an affiliate shall include in its public 

file the name of the affiliate and a 

written notice that the affiliate’s HMDA 

Disclosure Statement may be obtained at 

the Bureau’s Web site. The bank shall 

place the written notice(s) in the public 

file within three business days after 

receiving notification from the Federal 

Financial Institutions Examination 

Council of the availability of the 

disclosure statement(s). 

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons discussed in the 

SUPPLEMENTARY INFORMATION section, the 

Board of Directors of the Federal 

Deposit Insurance Corporation proposes 

to amend part 345 of chapter III of title 

12 of the Code of Federal Regulations to 

read as follows: 

PART 345—COMMUNITY 

REINVESTMENT 

■ 1. 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). 

§ 345.12 [Amended] 

■ 2. Section 345.12 is amended: 

■ a. By adding ‘‘or’’ at the end of 

paragraph (g)(3); 

■ b. By removing ‘‘; or’’ at the end of 

(g)(4), and adding in its place ‘‘.’’; 

■ c. By removing paragraph (g)(5); 

■ d. In paragraph (h)(2)(i), by removing 

the phrase ‘‘unless it is a multifamily 

dwelling loan (as described in appendix 

A to part 1003 of this title)’’ and adding 

in its place the phrase ‘‘unless the loan 

is for a multifamily dwelling (as defined 

in § 1003.2(n) of this title)’’; 

■ e. By removing paragraph (j)(3), and 

redesignating paragraph (j)(4) as 

paragraph (j)(3) and redesignating 

paragraph (j)(5) as paragraph (j)(4); and 

■ f. In paragraph (l), by removing the 

phrase ‘‘‘home improvement loan,’ 

‘home purchase loan,’ or a ‘refinancing’ 

as defined in§ 1003.2 of this title’’ and 

adding in its place the phrase, ‘‘closedend mortgage loan or an open-end line 

of credit as these terms are defined 

under § 1003.2 of this title and that is 

not an excluded transaction under 

§ 1003.3(c)(1)–(10) and (13) of this title’’. 

§ 345.22 [Amended] 

■ 3. Section 345.22 is amended in 

paragraph (a)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

§ 345.42 [Amended] 

■ 4. Section 345.42 is amended in 

paragraph (c)(1), by removing the phrase 

‘‘home equity,’’ after ‘‘credit card.’’ 

■ 5. Section 345.43 is amended by 

revising paragraph (b)(2), to read as 

follows: 

§ 345.43 Content and availability of public 

file. 

* * * * * 

(b) * * * 

(2) Banks required to report Home 

Mortgage Disclosure Act (HMDA) data. 

A bank required to report home 

mortgage loan data pursuant part 1003 

of this title shall include in its public 

file a written notice that the institution’s 

HMDA Disclosure Statement may be 

obtained on the Consumer Financial 

Protection Bureau’s (Bureau’s) Web site 

at www.consumerfinance.gov/hmda. In 

addition, a bank that elected to have the 

FDIC consider the mortgage lending of 

an affiliate shall include in its public 

file the name of the affiliate and a 

written notice that the affiliate’s HMDA 

Disclosure Statement may be obtained at 

the Bureau’s Web site. The bank shall 

place the written notice(s) in the public 

file within three business days after 

receiving notification from the Federal 

Financial Institutions Examination 

Council of the availability of the 

disclosure statement(s). 

* * * * * 

Dated: September 12, 2017. 

Keith A. Noreika, 

Acting Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, September 6, 2017. 

Ann E. Misback, 

Secretary of the Board. 

By order of the Board of Directors. 

Dated at Washington, DC, this 31st day of 

August, of 2017. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2017–19765 Filed 9–19–17; 8:45 am] 

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

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1, 31, and 301 

[REG–105004–16] 

RIN 1545–BN35 

Use of Truncated Taxpayer 

Identification Numbers on Forms W–2, 

Wage and Tax Statement, Furnished to 

Employees 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 


sradovich on DSKBBY8HB2PROD with PROPOSALS