Source: https://www.federalregister.gov/documents/2013/12/19/2013-29787/removal-of-transferred-ots-regulations-regarding-disclosure-and-reporting-of-cra-related-agreements
Timestamp: 2017-10-21 14:54:10
Document Index: 581795563

Matched Legal Cases: ['art 346', 'art 533', 'art 390', 'art 533', 'art 390', 'art 346', 'art 390', 'art 346', 'art 390', 'art 346', 'art 533', 'art 390', 'art 346', 'art 346', 'art 390', 'art 346', 'art 390', 'art 390', 'art 533', 'art 533', 'art 390', 'art 390', 'art 346', 'art 346', 'art 390', 'art 390', 'art 346', 'art 390', 'art 390', 'art 346', 'art 346', 'art 390', 'art 346', 'art 390', 'art 346', 'art 346', 'art 346', 'art 390', 'art 390', 'art 390', 'art 346', 'art 346', 'art 346', 'art 346', 'art 390', 'art 533', 'art 533', 'art 346', 'art 390', 'art 346', 'art 346', 'art 390', '§\u2009346', '§\u2009346', '§\u2009390']

Federal Register :: Removal of Transferred OTS Regulations Regarding Disclosure and Reporting of CRA-Related Agreements and Amendments to Other Rules and Regulations
A Proposed Rule by the Federal Deposit Insurance Corporation on 12/19/2013
76768-76772 (5 pages)
FDIC's Existing 12 CFR Part 346 and Former OTS's Part 533 (Transferred, in Part, to FDIC's Part 390, Subpart H)
Subpart H —Disclosure and Reporting of CRA-Related Agreements
https://www.federalregister.gov/d/2013-29787 https://www.federalregister.gov/d/2013-29787
Start Preamble Start Printed Page 76768
In this notice of proposed rulemaking, the Federal Deposit Insurance Corporation (“FDIC”) proposes to rescind and remove a regulation entitled “Disclosure and Reporting of CRA-Related Agreements.” This regulation was included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision (“OTS”) on July 21, 2011, in connection with the implementation of applicable provisions of Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”). The requirements for State savings associations in the rescinded regulation are substantively similar to those in another regulation also entitled “Disclosure and Reporting of CRA-Related Agreements,” which is applicable for all insured depository institutions (“IDIs”) for which the FDIC has been designated the appropriate Federal banking agency.
Upon removal of the rescinded regulation entitled “Disclosure and Reporting of CRA-Related Agreements,” regulations applicable for all IDIs for which the FDIC has been designated the appropriate Federal banking agency will be found at the regulation also entitled “Disclosure and Reporting of CRA-Related Agreements.”
FDIC Email: Comments@fdic.gov. Include RIN 3064-AE09 on the subject line of the message.
Patience Singleton, Division of Depositor and Consumer Protection, (202) 898-6859; Martha L. Ellett, Legal Division, (202) 898-6765; Richard M. Schwartz, Legal Division, (202) 898-7424; Jennifer Maree, Legal Division, (202) 898-6543.
Although section 312(b)(2)(B)(i)(II) of the Dodd-Frank Act, codified at 12 U.S.C. 5412(b)(2)(B)(i)(II), granted the OCC rulemaking authority relating to both State and Federal savings associations, nothing in the Dodd-Frank Act affected the FDIC's existing authority to issue regulations under the FDI Act and other laws as the “appropriate Federal banking agency” or under similar statutory terminology. Section 312(c) of the Dodd-Frank Act amended the definition of “appropriate Federal banking agency” contained in section 3(q) of the FDI Act, 12 U.S.C. 1813(q), to add State savings associations to the list of entities for which the FDIC is designated as the “appropriate Federal banking agency.” Start Printed Page 76769As a result, when the FDIC acts as the designated “appropriate Federal banking agency” (or under similar terminology) for State savings associations, as it does here, the FDIC is authorized to issue, modify and rescind regulations involving such associations, as well as for State nonmember banks and insured branches of foreign banks.
One of the OTS rules transferred to the FDIC governed OTS oversight of disclosure and reporting of CRA-related agreements in the context of State savings associations. The OTS rule, formerly found at 12 CFR part 533, was transferred to the FDIC with only minor nonsubstantive changes and is now found in the FDIC's rules at part 390, subpart H, entitled “Disclosure and Reporting of CRA-Related Agreements.” Before the transfer of the OTS rules and continuing today, the FDIC's rules contained part 346, also entitled “Disclosure and Reporting of CRA-Related Agreements,” a rule governing FDIC oversight of disclosure and reporting of CRA-related agreements with respect to IDIs for which the FDIC has been designated the appropriate Federal banking agency. After careful review and comparison of part 390, subpart H and part 346, the FDIC proposes to rescind part 390, subpart H, because, as discussed below, it is substantively redundant to existing part 346 and simultaneously we propose to make technical conforming edits to our existing rule.
Section 711 of the Gramm-Leach-Bliley Act (“GLB Act”) [4] added section 48 to the FDI Act,[5] entitled “CRA Sunshine Requirements.” Section 48 applies to written agreements that (1) are made in fulfillment of the Community Reinvestment Act of 1977 (“CRA”),[6] (2) involve funds or other resources of an IDI or affiliate with an aggregate value of more than $10,000 in a year, or loans with an aggregate principal value of more than $50,000 in a year, and (3) are entered into by an IDI or affiliate of an IDI and a nongovernmental entity or person (“NGEP”). The provisions of section 48 of the FDI Act require NGEPs, IDIs, and affiliates of IDIs that are parties to certain agreements that are in fulfillment of the CRA to make the agreements available to the public and the appropriate agency and to file annual reports concerning the agreements with the appropriate agency.
On January 10, 2001, pursuant to section 711 of the GLB Act,[7] the FDIC, the OTS, the OCC, and the FRB, published a joint final rule [8] to implement the CRA sunshine provisions of section 48 of the FDI Act. The joint final rule identifies the types of written agreements that are covered by section 48 (referred to as “covered agreements”) and defines many of the terms used in the statute. The rule also describes how the parties to a covered agreement must make the agreements available to the public and the appropriate agencies and explains the type of information that must be included in the annual report filed by a party to a covered agreement.[9]
Section 48 of the FDI Act, created by section 711 of the GLB Act, instructs the FDIC, OTS, OCC, and FRB (collectively, the “Federal banking agencies”) to consult and coordinate with one another “for the purposes of assuring, to the extent possible, that the regulations prescribed by each such agency are consistent and comparable with the regulations prescribed by the other such agencies.” [10] The Federal banking agencies consulted and coordinated with respect to this rulemaking and on an interagency basis jointly issued rules that are substantively identical with regard to their reporting and disclosure requirements,[11] including an identical definition of “covered agreement.” [12] Accordingly, the portion of the OTS regulations that applied to State savings associations and their subsidiaries, originally codified at 12 CFR part 533 and subsequently transferred to FDIC's part 390, subpart H, is substantively similar to the current FDIC regulations codified at 12 CFR part 346. Specifically, part 346 of the FDIC regulations applies to State nonmember insured banks and their subsidiaries,[13] while part 390, subpart H applies to State savings associations, their subsidiaries and their affiliates.[14] Therefore, by amending Part 346 to cover State savings associations and rescinding part 390, subpart H, the FDIC will streamline its regulations and reduce redundancy.
Although the former OTS rule and part 390, subpart H covers savings and loan holding companies that are affiliated with savings associations as well as the savings associations, the FDIC does not supervise savings and loan or bank holding companies for purposes of this rule. Section 312 of the Dodd-Frank Act [15] divides and transfers the functions of the former OTS to the FDIC, OCC, and FRB by amending section 1813(q) of the FDI Act. Specifically, section 312 transfers the former OTS's power to regulate State savings associations to the FDIC, while it transfers the power to regulate savings and loan holding companies to the FRB.[16] As a result, whereas the former OTS part 533 applied to State savings associations, their subsidiaries and their affiliates as well as to savings and loan holding companies,[17] upon transfer of part 533 to FDIC's part 390, subpart H, only the authority over State savings associations and their subsidiaries was transferred to the FDIC for purposes of this rule.[18] The FRB currently has jurisdiction over the regulation and supervision of disclosure and reporting of CRA-related agreements as it applies to affiliates, including savings and loan holding companies of State savings associations.[19] For this reason, the existing reference to affiliates in part 390, subpart H is not proposed to be added to part 346 of the FDIC rules.
After careful comparison of the FDIC's part 346 with the transferred OTS rule in part 390, subpart H, the FDIC has concluded that, with the exception of the scope of the two sections which changed as a result of the Dodd-Frank Act, the transferred OTS rules governing disclosure and reporting of CRA-related agreements are substantively redundant. Therefore, based on the foregoing, the FDIC proposes to rescind and remove Start Printed Page 76770from the Code of Federal Regulations the rules located at part 390, subpart H and to make minor conforming changes to part 346 to incorporate State savings associations.
Regarding the functions of the former OTS that were transferred to the FDIC, section 316(b)(3) of the Dodd-Frank Act, 12 U.S.C. 5414(b)(3), in pertinent part, provides that the former OTS's regulations will be enforceable by the FDIC until they are modified, terminated, set aside, or superseded in accordance with applicable law. After reviewing the rules currently found in part 390, subpart H, the FDIC, as the appropriate Federal banking agency for State savings associations, proposes to rescind part 390, subpart H in its entirety. The FDIC also proposes (1) to modify to the scope of part 346 to include State savings associations and their subsidiaries to conform to and reflect the scope of FDIC's current supervisory responsibilities as the appropriate Federal banking agency, and (2) to add a new subsection (m), which would define “State savings association” as having the same meaning as in section 3(b)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1813(b)(3)). If the proposal is finalized, oversight of disclosure and reporting of CRA-related agreements in part 346 would apply to all FDIC-supervised institutions, including State savings associations, and part 390, subpart H would be removed because it is largely redundant of those rules found in part 346. Rescinding part 390, subpart H will serve to streamline the FDIC's rules and eliminate unnecessary regulations.
(1) Are there any specific provisions of part 346 that are outdated or obsolete, or are behind industry standards? If so, please describe and recommend alternate disclosure and reporting methodology.
(2) Are the provisions of proposed part 346 sufficient to provide adequate disclosure and reporting of CRA-related agreements? Are the provisions of proposed part 346 overly burdensome? Please substantiate your answer.
(3) What impacts, positive or negative, can you foresee in the FDIC's proposal to rescind part 390, subpart H?
Written comments must be received by the FDIC no later than February 18, 2014.
The Proposed Rule would rescind and remove from FDIC regulations part 390, subpart H. This rule was transferred with only nominal changes to the FDIC from the OTS when the OTS was abolished by Title III of the Dodd-Frank Act. Part 390, subpart H is largely redundant of the FDIC's existing part 346 regarding disclosure and reporting of CRA-related agreements. The information collections contained in part 346 are cleared by OMB under the FDIC's “CRA Sunshine” information collection (OMB No. 3064-0139). The FDIC reviewed its burden estimates for the collection at the time it assumed responsibility for supervision of State savings associations transferred from the OTS and determined that no changes to the burden estimates were necessary. This Proposed Rule will not modify the FDIC's existing collection and does not involve any new collections of information pursuant to the PRA.
Finally, the Proposed Rule would amend sections 346.1 and 346.11 to include State savings associations and their subsidiaries within the scope of part 346 and to define “State savings association,” respectively. These measures clarify that State savings associations, as well as State nonmember banks are subject to part 346. Thus, these provisions of the Proposed Rule will not involve any new collections of information under the PRA or impact current burden estimates. Based on the foregoing, no information collection request has been submitted to the OMB for review.
The Regulatory Flexibility Act (“RFA”), 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 the 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 $500 million).[20] However, a regulatory flexibility analysis 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 rule. For the reasons provided below, the FDIC certifies that the Proposed Rule, if adopted in final form, would not have a significant economic impact on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required.
As discussed in this notice of proposed rulemaking, part 390, subpart H was transferred from OTS part 533, which governed disclosure and reporting of CRA-related agreements. OTS part 533 had been in effect since 2001, and all State savings associations were required to comply with it. Because it is redundant of existing part 346 of the FDIC's rules, the FDIC proposes rescinding and removing part 390, subpart H. As a result, all FDIC-supervised institutions—including State savings associations and their subsidiaries—would be required to comply with part 346 if they are in CRA-related agreements. Because all State savings associations and their subsidiaries have been required to comply with substantially similar disclosure and reporting rules if they engaged in CRA-related agreements since 2001, today's Proposed Rule would have no significant economic impact on any State savings association.
What else could we do to make the regulation easier to understand?Start Printed Page 76771
Under section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (“EGRPRA”), the FDIC is required to review all of its regulations, at least once every 10 years, in order to identify any outdated or otherwise unnecessary regulations imposed on insured institutions.[21] The FDIC completed the last comprehensive review of its regulations under EGRPRA in 2006 and is commencing the next decennial review. The action taken on this rule will be included as part of the EGRPRA review that is currently in progress. As part of that review, the FDIC invites comments concerning whether the Proposed Rule would impose any outdated or unnecessary regulatory requirements on insured depository institutions. If you provide such comments, please be specific and provide alternatives whenever appropriate.
banking; Disclosure and reporting of CRA-related agreements; Savings associations
For the reasons stated in the preamble, the Board of Directors of the Federal Deposit Insurance Corporation proposes to amend part 346 of title 12 of the Code of Federal Regulations and part 390 of title 12 of the Code of Federal Regulations as set forth below:
2. Revise § 346.1 to read as follows:
(3) Nongovernmental entities or persons that enter into covered agreements with any company listed in paragraph (b)(1), (2), (4) and (5) of this section.
&3. Revise § 346.11 to read as follows:
(iv) An officer, director, employee, or representative (acting in his or her capacity as an officer, director, employee, or representative) of an entity Start Printed Page 76772listed in paragraphs (j)(2)(i) through (iii) of this section.
5. Remove and reserve subpart H consisting of §§ 390.160 through 390.170.
5. 12 U.S.C. 1831y (1999).
6. Community Reinvestment Act of 1977, Public Law 95-128, 91 Stat. 1147 (1977) (codified at 12 U.S.C. 2901 et seq.).
7. 12 U.S.C. 1831y(h)(1).
8. 66 FR 2052 (Jan. 10, 2001).
10. 12 U.S.C. 1831y(h)(4).
11. 66 FR 2099 (Jan. 10, 2001).
12. See 12 CFR 346.2; 12 CFR 390.161; 12 CFR 533.2.
13. 12 CFR 346.1.
14. 12 CFR 390.160.
15. Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law. 111-203, 124 Stat. 1376 (2010) (codified at 12 U.S.C. 5412).
16. 12 U.S.C. 5412.
17. 12 CFR 533.1.
18. 12 CFR 390.160.
19. 12 CFR 207.1.