Community Reinvestment Act Regulations
| Published date | 23 December 2020 |
| Citation | 85 FR 83747 |
| Record Number | 2020-28116 |
| Section | Rules and Regulations |
| Court | Federal Deposit Insurance Corporation |
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
83747
Vol. 85, No. 247
Wednesday, December 23, 2020
1
Public Law 111–203, 124 Stat. 1376 (2010).
2
See OCC interim final rule, 76 FR 48950 (Aug.
9, 2011).
3
See Board interim final rule, 76 FR 56508 (Sept.
13, 2011).
4
85 FR 34734 (June 5, 2020). The final rule is
effective October 1, 2020. Institutions subject to the
final rule must comply with its provisions by
October 1, 2020, January 1, 2023, or January 1,
2024, as applicable. Id. at 34784.
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R–1735]
RIN 7100–AG05
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 345
RIN 3064–AF68
Community Reinvestment Act
Regulations
AGENCY
: Board of Governors of the
Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC).
ACTION
: Joint final rule; technical
amendment.
SUMMARY
: The Board and the FDIC
(collectively, the Agencies) are
amending their Community
Reinvestment Act (CRA) regulations to
adjust the asset-size thresholds used to
define ‘‘small bank’’ and ‘‘intermediate
small bank.’’ As required by the CRA
regulations, the adjustment to the
threshold amount is based on the
annual percentage change in the
Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI–W).
DATES
: Effective Date: January 1, 2021.
FOR FURTHER INFORMATION CONTACT
:
Board: Amal S. Patel, Counsel, (202)
912–7879, or Cathy Gates, Senior Project
Manager, (202) 452–2099, Division of
Consumer and Community Affairs; or
Gavin L. Smith, Senior Counsel, (202)
452–3474, Legal Division, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
For users of Telecommunications
Device for the Deaf (TDD) contact (202)
263–4869.
FDIC: Patience R. Singleton, Senior
Policy Analyst, Supervisory Policy
Branch, Division of Depositor and
Consumer Protection, (202) 898–6859;
or Richard M. Schwartz, Counsel, Legal
Division, (202) 898–7424, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION
:
Background and Description of the
Joint Final Rule
The Agencies’ CRA regulations
establish CRA performance standards
for small and intermediate small banks.
The CRA regulations define small and
intermediate small banks by reference to
asset-size criteria expressed in dollar
amounts, and they further require the
Agencies to publish annual adjustments
to these dollar figures based on the year-
to-year change in the average of the
CPI–W, not seasonally adjusted, for each
12-month period ending in November,
with rounding to the nearest million. 12
CFR 228.12(u)(2) and 345.12(u)(2). This
adjustment formula was first adopted
for CRA purposes by the Board, the
Office of the Comptroller of the
Currency (OCC), and the FDIC on
August 2, 2005, effective September 1,
2005. 70 FR 44256 (Aug. 2, 2005). At
that time, the Agencies noted that the
&CPI–W is also used in connection with
other federal laws, such as the Home
Mortgage Disclosure Act. See 12 U.S.C.
2808; 12 CFR 1003.2. On March 22,
2007, and effective July 1, 2007, the
former Office of Thrift Supervision
(OTS), the agency then responsible for
regulating savings associations, adopted
an annual adjustment formula
consistent with that of the other federal
banking agencies in its CRA rule
previously set forth at 12 CFR part 563e.
72 FR 13429 (Mar. 22, 2007).
Pursuant to the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act),
1
effective July 21,
2011, CRA rulemaking authority for
federal and state savings associations
was transferred from the OTS to the
OCC, and the OCC subsequently
republished, at 12 CFR part 195, the
CRA regulations applicable to those
institutions.
2
In addition, the Dodd-
Frank Act transferred responsibility for
supervision of savings and loan holding
companies and their non-depository
subsidiaries from the OTS to the Board,
and the Board subsequently amended its
CRA regulation to reflect this transfer of
supervisory authority.
3
On May 20, 2020, the OCC issued a
CRA final rule establishing a revised
CRA regulatory framework
4
and has
determined that it will adjust the asset-
size criteria for institutions that are
subject to OCC-issued CRA regulations,
including national banks and federal
and state savings associations, by a
means separate from this rulemaking
process.
The threshold for small banks was
revised most recently in December 2019
and became effective January 1, 2020. 84
FR 71738 (Dec. 30, 2019). The current
CRA regulations provide that banks that,
as of December 31 of either of the prior
two calendar years, had assets of less
than $1.305 billion are small banks.
Small banks with assets of at least $326
million as of December 31 of both of the
prior two calendar years and less than
$1.305 billion as of December 31 of
either of the prior two calendar years are
intermediate small banks. 12 CFR
228.12(u)(1) and 345.12(u)(1). This joint
final rule revises these thresholds.
During the 12-month period ending
November 2020, the CPI–W increased
by 1.29 percent. As a result, the
Agencies are revising 12 CFR
228.12(u)(1) and 345.12(u)(1) to make
this annual adjustment. Beginning
January 1, 2021, banks that, as of
December 31 of either of the prior two
calendar years, had assets of less than
$1.322 billion are small banks. Small
banks with assets of at least $330
million as of December 31 of both of the
prior two calendar years and less than
$1.322 billion as of December 31 of
either of the prior two calendar years are
intermediate small banks. The Agencies
also publish current and historical asset-
size thresholds on the website of the
Federal Financial Institutions
Examination Council at http://
www.ffiec.gov/cra/.
Administrative Procedure Act and
Effective Date
Under 5 U.S.C. 553(b)(B) of the
Administrative Procedure Act (APA), an
agency may, for good cause, find (and
incorporate the finding and a brief
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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Rules and Regulations
5
12 U.S.C 4802(a).
6
12 U.S.C 4802(b).
7
5 U.S.C. 801 et seq.
8
5 U.S.C. 801(a)(3).
9
5 U.S.C. 804(2).
statement of reasons therefore in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.
The amendments to the regulations to
adjust the asset-size thresholds for small
and intermediate small banks result
from the application of a formula
established by a provision in the
respective CRA regulations that the
Agencies previously published for
comment. See 70 FR 12148 (Mar. 11,
2005), 70 FR 44256 (Aug. 2, 2005), 71
FR 67826 (Nov. 24, 2006), and 72 FR
13429 (Mar. 22, 2007). As a result,
§§ 228.12(u)(1) and 345.12(u)(1) of the
Agencies’ respective CRA regulations
are amended by adjusting the asset-size
thresholds as provided for in
§§ 228.12(u)(2) and 345.12(u)(2).
Accordingly, the Agencies’ rules
provide no discretion as to the
computation or timing of the revisions
to the asset-size criteria. For this reason,
the Agencies have determined that
publishing a notice of proposed
rulemaking and providing opportunity
for public comment are unnecessary.
The effective date of this joint final
rule is January 1, 2021. Under 5 U.S.C.
553(d)(3) of the APA, the required
publication or service of a substantive
rule shall be made not less than 30 days
before its effective date, except, among
other things, as provided by the agency
for good cause found and published
with the rule. Because this rule adjusts
asset-size thresholds consistent with the
procedural requirements of the CRA
rules, the Agencies conclude that it is
not substantive within the meaning of
the APA’s delayed effective date
provision. Moreover, the Agencies find
that there is good cause for dispensing
with the delayed effective date
requirement, even if it applied, because
their current rules already provide
notice that the small and intermediate
small asset-size thresholds will be
adjusted as of December 31 based on 12-
month data as of the end of November
each year.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking when a
general notice of proposed rulemaking
is not required. 5 U.S.C. 603 and 604.
As noted previously, the Agencies have
determined that it is unnecessary to
publish a general notice of proposed
rulemaking for this joint final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act of 1995
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3521) states that no
agency may conduct or sponsor, nor is
the respondent required to respond to,
an information collection unless it
displays a currently valid Office of
Management and Budget (OMB) control
number. The Agencies have determined
that this final rule does not create any
new, or revise any existing, collections
of information pursuant to the
Paperwork Reduction Act.
Consequently, no information collection
request will be submitted to the OMB
for review.
Riegle Community Development and
Regulatory Improvement Act of 1994
Section 302 of the Riegle Community
Development and Regulatory
Improvement Act of 1994 (RCDRIA) (12
U.S.C. 4802) requires that each Federal
banking agency, in determining the
effective date and administrative
compliance requirements for new
regulations that impose additional
reporting, disclosure, or other
requirements on insured depository
institutions (IDIs), consider, consistent
with principles of safety and soundness
and the public interest, any
administrative burdens that such
regulations would place on depository
institutions, including small depository
institutions, and customers of
depository institutions, as well as the
benefits of such regulations.
5
In
addition, new regulations and
amendments to regulations that impose
additional reporting, disclosures, or
other new requirements on IDIs
generally must take effect on the first
day of a calendar quarter that begins on
or after the date on which the
regulations are published in final form.
6
Because the final rule does not
impose additional reporting, disclosure,
or other requirements on IDIs, section
302 of RCDRIA does not apply.
Nevertheless, the requirements of
section 302 of RCDRIA, and the
administrative burdens and benefits of
the final rule, were considered as part
of the overall rulemaking process.
Congressional Review Act
FDIC
For purposes of Congressional Review
Act, the OMB makes a determination as
to whether a final rule constitutes a
‘‘major’’ rule.
7
If a rule is deemed a
‘‘major rule’’ by the OMB, the
Congressional Review Act generally
provides that the rule may not take
effect until at least 60 days following its
publication.
8
The Congressional Review Act defines
a ‘‘major rule’’ as any rule that the
Administrator of the Office of
Information and Regulatory Affairs of
the OMB finds has resulted in or is
likely to result in—(A) an annual effect
on the economy of $100,000,000 or
more; (B) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions, or (C) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreign-
based enterprises in domestic and
export markets.
9
As required by the
Congressional Review Act, the FDIC
will submit the final rule and other
appropriate reports to Congress and the
Government Accountability Office for
review.
List of Subjects
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.
Federal Reserve System
12 CFR Chapter II
For the reasons set forth in the
common preamble, the Board of
Governors of the Federal Reserve
System amends 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.
■2. Section 228.12 is amended by
revising paragraph (u)(1) to read as
follows:
§ 228.12 Definitions.
* * * * *
(u) * * * (1) Definition. Small bank
means a bank that, as of December 31
of either of the prior two calendar years,
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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Rules and Regulations
1
15 U.S.C. 1681g.
2
15 U.S.C. 1681j(a).
had assets of less than $1.322 billion.
Intermediate small bank means a small
bank with assets of at least $330 billion
as of December 31 of both of the prior
two calendar years and less than $1.322
billion as of December 31 of either of the
prior two calendar years.
* * * * *
Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the
common preamble, the Board of
Directors of the Federal Deposit
Insurance Corporation amends part 345
of chapter III of title 12 of the Code of
Federal Regulations to read as follows:
PART 345—COMMUNITY
REINVESTMENT
■3. 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).
■4. Section 345.12 is amended by
revising paragraph (u)(1) to read as
follows:
§ 345.12 Definitions.
* * * * *
(u) * * * (1) Definition. Small bank
means a bank that, as of December 31
of either of the prior two calendar years,
had assets of less than $1.322 billion.
Intermediate small bank means a small
bank with assets of at least $330 million
as of December 31 of both of the prior
two calendar years and less than $1.322
billion as of December 31 of either of the
prior two calendar years.
* * * * *
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 December 15,
2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020–28116 Filed 12–22–20; 8:45 am]
BILLING CODE 6210–01–P; 4810–33–P; 6714–01–P
FARM CREDIT ADMINISTRATION
12 CFR Part 615
RIN 3052–AD35
Organization; Funding and Fiscal
Affairs, Loan Policies and Operations,
and Funding Operations; Investment
Eligibility
AGENCY
: Farm Credit Administration.
ACTION
: Notification of effective date.
SUMMARY
: The Farm Credit
Administration (FCA or we) issued a
final rule that amends its investment
regulations to authorize Farm Credit
System (FCS or System) associations to
purchase in the secondary market and
hold as investments, portions of loans
that non-FCS lenders originate, and that
the United States Department of
Agriculture (USDA) fully and
unconditionally guarantees or insures as
to the timely payment of principal and
interest. In accordance with statute, the
effective date of the final rule is no
earlier than 30 days from the date of
publication in the Federal Register
during which either or both House of
Congress are in session.
DATES
: The final rule regulation
amending 12 CFR part 615 published on
October 6, 2020 (85 FR 62945), and
corrected on November 6, 2020 (85 FR
62949), is effective as of December 23,
2020.
FOR FURTHER INFORMATION CONTACT
:
Technical information: David J.
Lewandrowski, Senior Policy Analyst,
Finance & Capital Market Team, Office
of Regulatory Policy, (703) 883–4414,
TTY (703) 883–4056, lewandrowskid@
fca.gov.
Legal information: Richard A. Katz,
Senior Counsel, Office of General
Counsel, (703) 883–4020, TTY (703)
883–4056, katzr@fca.gov.
SUPPLEMENTARY INFORMATION
: On August
13, 2020, the FCA issued a final rule
that amended § 615.5140(b) so FCS
associations are authorized to purchase
in the secondary market and hold as
investments, portions of loans that non-
System lenders originate, and the USDA
fully and unconditionally guarantees as
to the payment of principal and interest.
The final rule was published in the
Federal Register on October 6, 2020.
In accordance with 12 U.S.C.
2252(c)(1), the effective date of the final
rule is no earlier than 30 days from the
date of publication in the Federal
Register during which either or both
Houses of Congress are in session. Based
on the records of the sessions of
Congress, the effective date of the
regulation is December 23, 2020.
Dated: December 7, 2020.
Dale Aultman,
Secretary, Farm Credit Administration Board.
[FR Doc. 2020–27144 Filed 12–22–20; 8:45 am]
BILLING CODE 6705–01–P
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1022
Fair Credit Reporting Act Disclosures
AGENCY
: Bureau of Consumer Financial
Protection.
ACTION
: Final rule; official
interpretation.
SUMMARY
: The Bureau of Consumer
Financial Protection (Bureau) is issuing
this final rule amending an appendix for
Regulation V, which implements the
Fair Credit Reporting Act (FCRA). The
Bureau is required to calculate annually
the dollar amount of the maximum
allowable charge for disclosures by a
consumer reporting agency to a
consumer pursuant to FCRA section
609; this final rule establishes the
maximum allowable charge for the 2021
calendar year.
DATES
: This final rule is effective
January 1, 2021.
FOR FURTHER INFORMATION CONTACT
:
Willie Williams, Paralegal Specialist;
Rachel Ross, Attorney-Advisor; Office of
Regulations, at (202) 435–7700. If you
require this document in an alternative
electronic format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION
: The
Bureau is amending appendix O for
Regulation V, which implements the
FCRA, to establish the maximum
allowable charge for disclosures by a
consumer reporting agency to a
consumer for 2021. The maximum
allowable charge will be $13.00 for
2021.
I. Background
Under section 609 of the FCRA, a
consumer reporting agency must, upon
a consumer’s request, disclose to the
consumer information in the consumer’s
file.
1
Section 612(a) of the FCRA gives
consumers the right to a free file
disclosure upon request once every 12
months from the nationwide consumer
reporting agencies and nationwide
specialty consumer reporting agencies.
2
Section 612 of the FCRA also gives
consumers the right to a free file
disclosure under certain other, specified
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