Document ID: SEC-2020-1022-0001
Agency: sec
Document Type: Proposed Rule
Title: Credit Risk Retention-Commencement of Review; Extension of Review Period
Posted Date: 2020-06-30T04:00Z

[Federal Register Volume 85, Number 126 (Tuesday, June 30, 2020)]
[Proposed Rules]
[Pages 39099-39100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13830]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 43

[Docket No. OCC-2019-0012]

FEDERAL RESERVE SYSTEM

12 CFR Part 244

[Docket No. OP-1688]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 373

RIN 3064-ZA07

FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1234

[Notice No. 2019-N-7]

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 246

[Release No. 34-89100]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 267

[FR-6172-N-02]

Credit Risk Retention--Notification of Commencement of Review; 
Extension of Review Period

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); U.S. Securities and Exchange 
Commission (Commission); Federal Housing Finance Agency (FHFA); and 
Department of Housing and Urban Development (HUD).

ACTION: Notification of commencement of review; extension of review 
period.

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SUMMARY: The OCC, Board, FDIC, Commission, FHFA, and HUD (the agencies) 
are providing notice of the extension of the period for the review, and 
publication of determination of the review, of the definition of 
qualified residential mortgage; the community-focused residential 
mortgage exemption; and the exemption for qualifying three-to-four unit 
residential mortgage loans, in each case as currently set forth in the 
Credit Risk Retention Regulations (as defined below) as adopted by the 
agencies.

[[Page 39100]]

DATES: The period for completion of the review of the subject 
residential mortgage provisions and publication of notice disclosing 
determination of this review is extended until June 20, 2021.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Daniel Borman, Senior Attorney, (202) 649-6929 or, for persons 
who are deaf or hearing impaired, TTY, (202) 649-5597, Chief Counsel's 
Office; Ajay Palvia, (202) 649-5505, Senior Financial Economist, Office 
of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 
20219.
    Board: Flora H. Ahn, Special Counsel, (202) 452-2317, David W. 
Alexander, Senior Counsel, (202) 452-287, or Matthew D. Suntag, Senior 
Counsel, (202) 452-3694, Legal Division; Donald N. Gabbai, Lead 
Financial Institutions Policy Analyst, Division of Supervision and 
Regulation, (202) 452-3358; Karen Pence, Assistant Director, Division 
of Research & Statistics, (202) 452-2342; Nikita Pastor, Senior 
Counsel, Division of Consumer & Community Affairs, (202) 452-3692; 
Board of Governors of the Federal Reserve System, 20th and C Streets 
NW, Washington, DC 20551.
    FDIC: Rae-Ann Miller, Associate Director, (202) 898-3898; Kathleen 
M. Russo, Counsel, (703) 562-2071, krusso@fdic.gov; or Phillip E. 
Sloan, Counsel, (703) 562-6137, psloan@fdic.gov, Federal Deposit 
Insurance Corporation, 550 17th Street NW, Washington, DC 20429.
    Commission: Arthur Sandel, Special Counsel; Kayla Roberts, Special 
Counsel; Katherine Hsu, Chief, (202) 551-3850, in the Office of 
Structured Finance, Division of Corporation Finance; or Chandler Lutz, 
Economist, (202) 551-6600, in the Office of Risk Analysis, Division of 
Economic and Risk Analysis, U.S. Securities and Exchange Commission, 
100 F Street NE, Washington, DC 20549.
    FHFA: Ron Sugarman, Principal Policy Analyst, Office of Financial 
Analysis, Modeling and Simulations, (202) 649-3208, 
Ron.Sugarman@fhfa.gov, or Peggy K. Balsawer, Associate General Counsel, 
Office of General Counsel, (202) 649-3060, Peggy.Balsawer@fhfa.gov, 
Federal Housing Finance Agency, Constitution Center, 400 7th Street SW, 
Washington, DC 20219. The telephone number for the Telecommunications 
Device for the Deaf is (800) 877-8339.
    HUD: Keith Becker, Deputy Assistant Secretary for Risk Management & 
Regulatory Affairs, U.S. Department of Housing & Urban Development, 451 
7th Street SW, Washington, DC 20410; telephone number (202) 402-3722 
(this is not a toll-free number). Persons with hearing or speech 
impairments may access this number through TTY by calling the toll-free 
Federal Relay at (800) 877-8339.

SUPPLEMENTARY INFORMATION: The credit risk retention regulations are 
codified at 12 CFR part 43; 12 CFR part 244; 12 CFR part 373; 17 CFR 
part 246; 12 CFR part 1234; and 24 CFR part 267 (the Credit Risk 
Retention Regulations). The Credit Risk Retention Regulations require 
the OCC, Board, FDIC, and Commission, in consultation with the FHFA and 
HUD, to commence, and give notice of commencement of, a review of the 
following provisions of the Credit Risk Retention Regulations no later 
than December 24, 2019: (1) The definition of qualified residential 
mortgage (QRM) in section _.13 of the Credit Risk Retention 
Regulations; (2) the community-focused residential mortgage exemption 
in section _.19(f) of the Credit Risk Retention Regulations; and (3) 
the exemption for qualifying three-to-four unit residential mortgage 
loans in section _.19(g) of the Credit Risk Retention Regulations 
(collectively, the ``subject residential mortgage provisions''). The 
Credit Risk Retention Regulations also require that, after completion 
of this review, but no later than six months after publication of a 
notification announcing the review, unless extended by the agencies, 
the agencies publish a notification disclosing the determination of 
their review. Notification of the commencement of the review was 
published in the Federal Register on December 20, 2019 (84 FR 70073).
    This notification is being published to give notice that, due to 
various factors considered among the agencies, including market and 
other disruptions precipitated by COVID-19, the agencies have 
determined to extend the period for completion of their review of the 
subject residential mortgage provisions and publication of notice 
disclosing determination of this review until June 20, 2021.

Brian P. Brooks,
Acting Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve System 
acting through the Secretary of the Board under delegated authority.
Ann E. Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on June 19, 2020.
James P. Sheesley,
Acting Assistant Executive Secretary.

    Dated: June 19, 2020.

    By the Securities and Exchange Commission.
Vanessa A. Countryman,
Secretary.
Mark A. Calabria,
Director, Federal Housing Finance Agency.

    By the Department of Housing and Urban Development.
Len Wolfson,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2020-13830 Filed 6-29-20; 8:45 am]
BILLING CODE 6210-01-P; 4810-33-P; 6210-01-P; 3064-01-P; 8070-01-P; 
8011-01-P; 4210-67-P