Credit Risk Retention-Notice of Commencement of Review

 
CONTENT
Federal Register, Volume 84 Issue 245 (Friday, December 20, 2019)
[Federal Register Volume 84, Number 245 (Friday, December 20, 2019)]
[Proposed Rules]
[Pages 70073-70076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27490]
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Proposed Rules
                                                Federal Register
________________________________________________________________________
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.
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Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 /
Proposed Rules
[[Page 70073]]
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. 34-87714]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 267
[FR-6172-N-01]
Credit Risk Retention-Notice of Commencement of Review
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: Notice of commencement of review.
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SUMMARY: The OCC, Board, FDIC, Commission, FHFA, and HUD (the agencies)
are providing notice of the commencement 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.
DATES: Comments on the review must be received by February 3, 2020.
ADDRESSES: Interested parties are encouraged to submit written comments
jointly to all of the agencies and use the title ``QRM review'' to
facilitate the organization and distribution of comments among the
agencies.
    Office of the Comptroller of the Currency: Commenters are
encouraged to submit comments through the Federal eRulemaking Portal or
email, if possible. Please use the title ``Credit Risk Retention-Notice
of Commencement of Review'' to facilitate the organization and
distribution of the comments. You may submit comments by any of the
following methods:
 Federal eRulemaking Portal--Regulations.gov Classic or
Regulations.gov Beta
    Regulations.gov Classic: Go to https://www.regulations.gov/. Enter
``Docket ID OCC-2019-0012'' in the Search Box and click ``Search.''
Click on ``Comment Now'' to submit public comments. For help with
submitting effective comments please click on ``View Commenter's
Checklist.'' Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
    Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov classic
homepage. Enter ``Docket ID OCC-2019-0012'' in the Search Box and click
``Search.'' Public comments can be submitted via the ``Comment'' box
below the displayed document information or click on the document title
and click the ``Comment'' box on the top-left side of the screen. For
help with submitting effective comments please click on ``Commenter's
Checklist.'' For assistance with the Regulations.gov Beta site please
call (877)-378-5457 (toll free) or (703) 454-9859 Monday-Friday, 9
a.m.-5 p.m. ET or email to [email protected].
     Email: [email protected].
     Mail: Chief Counsel's Office, Attention: Comment
Processing, 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,
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2019-0012'' in your comment. In general, the OCC will
enter all comments received into the docket and publish the comments on
the Regulations.gov website without change, including any business or
personal information provided 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 notice by any of the following methods:
 Viewing Comments Electronically--Regulations.gov Classic or
Regulations.gov Beta
    Regulations.gov Classic: Go to https://www.regulations.gov/. Enter
``Docket ID OCC-2019--0012'' 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.
    Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov classic
homepage. Enter ``Docket ID OCC-2019-0012'' in the Search Box and click
``Search.'' Click on the ``Comments'' tab. Comments can be viewed and
filtered by clicking on the
[[Page 70074]]
``Sort By'' drop-down on the right side of the screen or the ``Refine
Results'' options on the left side of the screen. Supporting Materials
can be viewed by clicking on the ``Documents'' tab and filtered by
clicking on the ``Sort By'' drop-down on the right side of the screen
or the ``Refine Results'' options on the left side of the screen.'' For
assistance with the Regulations.gov Beta site please call (877)-378-
5457 (toll free) or (703) 454-9859 Monday-Friday, 9 a.m.-5 p.m. ET or
email to [email protected].
    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
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 hearing impaired, TTY, (202) 649-5597. Upon
arrival, visitors will be required to present valid government-issued
photo identification and submit to security screening in order to
inspect comments.
    Board of Governors of the Federal Reserve System:
    You may submit comments, identified by Docket No. OP-1688, by any
of the following methods:
     Agency website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include the
docket number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Address to Ann E. Misback, Secretary, Board of
Governors of the Federal Reserve System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
    All public comments will be made available on the Board's website
at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical reasons or to remove sensitive
personal identifying information at the commenter's request.
Accordingly, comments will not be edited to remove any identifying or
contact information. Public comments may also be viewed electronically
or in paper form in Room 146, 1709 New York Avenue NW, Washington, DC
20006, between 9:00 a.m. and 5:00 p.m. on weekdays.
    Federal Deposit Insurance Corporation: You may submit comments,
identified by RIN 3064-ZA07, by any of the following methods:
     Agency Website: http://www.FDIC.gov/regulations/laws/federal. Follow instructions for submitting comments on the agency
website.
     Email: [email protected]. Include RIN 3064-ZA07 in 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/Courier: 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.
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
    Instructions: All comments will be posted without change to http://www.fdic.gov/regulations/laws/federal/, including any personal
information provided. Paper copies of public comments may be ordered
from the Public Information Center by telephone at (877) 275-3342 or
(703) 562-2200.
    Securities and Exchange Commission: Comments may be submitted by
any of the following methods:
Electronic Comments
     Use the Commission's internet comment form (http://www.sec.gov/rules/proposed.shtml); or
     Send an email to [email protected]. Please include
File Number S7-14-11 on the subject line.
Paper Comments
     Send paper comments to Secretary, Securities and Exchange
Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number S7-14-11. This file number
should be included on the subject line if email is used. To help us
process and review your comments more efficiently, please use only one
method. The Commission will post all comments on the Commission's
internet website (http://www.sec.gov/rules/proposed.shtml). Comments
are also available for website viewing and printing in the Commission's
Public Reference Room, 100 F Street NE, Washington, DC 20549, on
official business days between the hours of 10:00 a.m. and 3:00 p.m.
All comments received will be posted without change. Persons submitting
comments are cautioned that the Commission does not redact or edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly.
    Federal Housing Finance Agency: You may submit your written
comments on the notice, identified by notice number 2019-N-7, by any of
the following methods:
     Agency Website: www.fhfa.gov/open-for-comment-or-input.
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments. If you submit your
comments to the Federal eRulemaking Portal, please also send it by
email to FHFA at [email protected] to ensure timely receipt by the
agency. Please include ``QRM Review Input/Notice No. 2019-N-7'' in the
subject line of the message.
     U.S. Mail, United Parcel Service, Federal Express, or
Other Mail Service: The mailing address for comments is: Alfred M.
Pollard, General Counsel, Attention: QRM Review Input/Notice No. 2019-
N-7, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth
Floor, 400 7th Street SW, Washington, DC 20219.
     Hand Delivery/Courier: The hand delivery address is:
Alfred M. Pollard, General Counsel, Attention: QRM Review Input/Notice
No. 2019-N-7, Federal Housing Finance Agency, Constitution Center,
(OGC) Eighth Floor, 400 7th Street SW, Washington, DC 20219. Deliver
the package at the Seventh Street entrance Guard Desk, First Floor, on
business days between 9:00 a.m. and 5:00 p.m.
All comments received by the deadline will be posted for public
inspection without change, including any personal information you
provide, such as your name, address, email address, and telephone
number, on the FHFA website at http://www.fhfa.gov. In addition, copies
of all comments received will be available for examination by the
public through the electronic comments docket for this Notice also
located on the FHFA website.
    Department of Housing and Urban Development: Interested persons are
invited to submit comments regarding this rule to the Regulations
Division, Office of General Counsel, Department of Housing and Urban
Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500.
Communications must refer to the docket number and title. There are two
methods for submitting public comments.
     Submission of Comments by Mail. Comments may be submitted
by mail to the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 7th Street SW, Room
10276, Washington, DC 20410-0500.
[[Page 70075]]
     Electronic Submission of Comments. Interested persons may
submit comments electronically through the Federal eRulemaking Portal
at www.regulations.gov. HUD strongly encourages persons providing
comments to submit comments electronically. Electronic submission of
comments allows the submitter maximum time to prepare and submit
comments, ensures timely receipt by HUD, and enables HUD to make them
immediately available to the public. Comments submitted electronically
through the www.regulations.gov website can be viewed by other
submitters and interested members of the public. Submitters should
follow the instructions provided on that site to submit comments
electronically.
     Note: To receive consideration as public comments,
comments must be submitted through one of the two methods specified
above. Again, all submissions must refer to the docket number and title
of the rule.
     No Facsimile Comments. Facsimile (FAX) comments are not
acceptable.
     Public Inspection of Public Comments. All properly
submitted comments and communications submitted to HUD will be
available for public inspection and copying between 8 a.m. and 5 p.m.
weekdays at the above address. Due to security measures at the HUD
Headquarters building, an appointment to review the public comments
must be scheduled in advance by calling the Regulations Division at
202-708-3055 (this is not a toll-free number). Individuals with speech
or hearing impairments may access this number via TTY by calling the
Federal Relay Service at 800-877-8339. Copies of all comments submitted
are available for inspection and downloading at www.regulations.gov.
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, 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, [email protected]; or Phillip E.
Sloan, Counsel, (703) 562-6137, [email protected], 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 Policy
Analysis and Research, (202) 649-3208, [email protected], or Peggy
K. Balsawer, Associate General Counsel, Office of General Counsel,
(202) 649-3060, [email protected], 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,
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), require the OCC, Board, FDIC and Commission, in
consultation with the FHFA and HUD, to commence 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.
Notice of the commencement of this review is hereby given.
    In the Supplementary Information to the Credit Risk Retention
Regulations the agencies noted that they were committing in the final
rule to review the QRM definition at regular intervals to consider,
among other things, changes in the mortgage and securitization market
conditions and practices, and that this review might include, for
example, the structures of securitizations, the relationship between,
and roles undertaken by, the various transaction parties, implications
for investor protection and financial stability arising from the
relationship between government-sponsored enterprise (GSE) markets and
private label markets, and trends in mortgage products in various
markets and structures, as well as how the QRM definition is affecting
residential mortgage underwriting and securitization of residential
mortgage loans under evolving market conditions.\1\ The Supplementary
Information also stated that the agencies would want the opportunity to
consider the results of future reviews of, and any changes made to, the
qualified mortgage definition by the Consumer Financial Protection
Bureau, any additional regulatory changes affecting securitization that
are adopted by the agencies, as well as any changes to the structure
and framework of the GSEs and those markets.\2\ The simultaneous review
of the community-focused lending exemption and the exemption for
qualifying three-to-four unit residential mortgage loans will similarly
allow the agencies to evaluate the advantages and disadvantages of
these exemptions as their respective markets evolve over time.
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    \1\ See 79 FR 77601, 77689 (December 24, 2014).
    \2\ See 79 FR 77601, 77689 (December 24, 2014).
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    The agencies welcome public comments relating to the review of
these provisions of the Credit Risk Retention Regulations, including
the matters listed above that might be considered as part of the
review.
Joseph M. Otting,
Comptroller of the Currency.
    By Order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
    Dated at Washington, DC, on December 10, 2019.
Robert E. Feldman,
Executive Secretary.
    Dated: December 10, 2019.
[[Page 70076]]
    By the Securities and Exchange Commission.
Vanessa A. Countryman,
Secretary.
    Dated: November 21, 2019.
Mark A. Calabria,
Director, Federal Housing Finance Agency.
    Dated: November 21, 2019.
    By the Department of Housing and Urban Development.
John L. Garvin,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2019-27490 Filed 12-19-19; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 3064-01-P; 8070-01-P; 8011-01-P;
4210-67-P