Other Real Estate Owned and Technical Amendments
| Citation | 85 FR 43420 |
| Record Number | 2020-14108 |
| Published date | 17 July 2020 |
| Section | Rules and Regulations |
| Court | The Comptroller Of The Currency Office,Treasury Department |
Federal Register, Volume 85 Issue 138 (Friday, July 17, 2020)
[Federal Register Volume 85, Number 138 (Friday, July 17, 2020)]
[Rules and Regulations]
[Pages 43420-43422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14108]
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DEPARTMENT OF TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
[Docket ID OCC-2019-0004]
RIN 1557-AE91
Other Real Estate Owned and Technical Amendments
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Final rule; correction.
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SUMMARY: On October 22, 2019, the Office of the Comptroller of the
Currency (OCC) published in the Federal Register a final rule to revise
provisions on other real estate owned and make related technical
amendments. Due to a technical error in the amendatory text, certain
revisions in the final rule were not incorporated in the Code of
Federal Regulations. This final rule corrects those omissions.
DATES: The final rule is effective on July 17, 2020.
FOR FURTHER INFORMATION CONTACT: Kevin Korzeniewski, Counsel, or
Anthony Borzaro, Attorney, Chief Counsel's Office, (202) 649-5490; or
for persons who are hearing impaired, TTY, (202) 649-5597.
SUPPLEMENTARY INFORMATION:
I. Background
On October 22, 2019, the OCC published in the Federal Register a
final rule to revise its rule on other real estate owned (OREO) at 12
CFR part 34, subpart E, and make related technical amendments (OREO
final rule).\1\ The OREO final rule was intended to apply to national
banks and federal savings associations, and the rule text printed in
the OREO final rule did incorporate both types of institutions in all
relevant sections. However, due to a technical error in the amendatory
instructions, the phrase ``federal savings associations'' was not
included in two places in the introductory text to 12 CFR
34.83(a)(3)(i). This final rule corrects the amendatory instructions to
add the phrase ``federal savings associations'' in those two locations.
This final rule does not make any substantive changes to the OREO final
rule or any requirements of 12 CFR part 34, subpart E.
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\1\ 84 FR 56369 (Oct. 22, 2019).
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II. Administrative Law Statements
A. Administrative Procedure Act
The OCC is issuing the final rule without prior notice and the
opportunity for public comment and the delayed effective date
ordinarily prescribed by the Administrative Procedure Act (APA).\2\
Pursuant to section 553(b)(B) of the APA, general notice and the
opportunity for public comment are not required with respect to a
rulemaking when an ``agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \3\
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\2\ 5 U.S.C. 553.
\3\ 5 U.S.C. 553(b)(3)(A).
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The OCC believes that the final rule should be effective
immediately upon publication in the Federal Register. The final rule
merely implements a technical correction to the amendatory text to
reflect the text of the OREO final rule for purposes of accurate
printing in the Code of Federal Regulations and has no substantive
effect. The OCC previously requested comment on the revision, adopted
the revision in a final rule, and believes requesting further comment
or delaying the correction would be unnecessary.
For these reasons, the OCC finds that there is good cause to issue
the rule without notice and comment.\4\
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\4\ 5 U.S.C. 553(b)(B); 553(d)(3).
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The APA also requires a 30-day delayed effective date, except for
(1) substantive rules which grant or
[[Page 43421]]
recognize an exemption or relieve a restriction; (2) interpretative
rules and statements of policy; or (3) as otherwise provided by the
agency for good cause.\5\ The final rule merely implements a technical
correction to the amendatory text to reflect the text of the OREO final
rule for purposes of accurate printing in the Code of Federal
Regulations and has no substantive effect.\6\ Therefore, the OCC
similarly finds good cause to dispense with the 30-day delayed
effective date.
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\5\ 5 U.S.C. 553(d).
\6\ 5 U.S.C. 553(d)(1).
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B. Congressional Review Act
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 Office of
Management and Budget (OMB), the Congressional Review Act generally
provides that the rule may not take effect until at least 60 days
following its publication.\8\
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\7\ 5 U.S.C. 801 et seq.
\8\ 5 U.S.C. 801(a)(3).
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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\
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\9\ 5 U.S.C. 804(2).
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For the same reasons set forth above, the OCC is adopting the final
rule without the delayed effective date generally prescribed under the
Congressional Review Act. The delayed effective date required by the
Congressional Review Act does not apply to any rule for which an agency
for good cause finds (and incorporates the finding and a brief
statement of reasons therefor in the rule issued) that notice and
public procedure thereon are impracticable, unnecessary, or contrary to
the public interest.\10\ In light of the fact that the final rule has
no substantive effect and merely implements a technical correction to
the amendatory text to reflect the text of the OREO final rule for
purposes of accurate printing in the Code of Federal Regulations, the
OCC believes that delaying the effective date of the rule is
unnecessary.
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\10\ 5 U.S.C. 808.
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As required by the Congressional Review Act, the OCC will submit
the final rule and other appropriate reports to Congress and the
Government Accountability Office for review.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (PRA)
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 OMB control number. The final rule does not affect any
current information collections for 12 CFR part 34.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) \11\ requires an agency to
consider whether the rules it proposes will have a significant economic
impact on a substantial number of small entities.\12\ The RFA applies
only to rules for which an agency publishes a general notice of
proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed
previously, consistent with section 553(b)(B) of the APA, the OCC has
determined for good cause that general notice and opportunity for
public comment is unnecessary, and therefore the OCC has not issued a
notice of proposed rulemaking. Accordingly, the OCC has concluded that
the RFA's requirements relating to initial and final regulatory
flexibility analysis do not apply.
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\11\ 5 U.S.C. 601 et seq.
\12\ Under regulations issued by the Small Business
Administration, a small entity includes a depository institution,
bank holding company, or savings and loan holding company with total
assets of $600 million or less and trust companies with total assets
of $41.5 million or less. See 13 CFR 121.201.
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E. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\13\ 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), each Federal banking agency
must consider, consistent with the principle 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. In addition, section 302(b)
of RCDRIA requires new regulations and amendments to regulations that
impose additional reporting, disclosures, or other new requirements on
IDIs generally to 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, with certain exceptions, including for good cause.\14\
For the reasons described above, the OCC finds good cause exists under
section 302 of RCDRIA to publish this final rule with an immediate
effective date.
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\13\ 12 U.S.C. 4802(a).
\14\ 12 U.S.C. 4802.
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As such, the final rule will be effective on July 17, 2020.
F. Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act \15\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The OCC has sought to present the
final rule in a simple and straightforward manner.
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\15\ 12 U.S.C. 4809.
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G. Unfunded Mandates
As a general matter, the Unfunded Mandates Act of 1995 (UMRA), 2
U.S.C. 1531 et seq., requires the preparation of a budgetary impact
statement before promulgating a rule that 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. However, the UMRA does not apply to
final rules for which a general notice of proposed rulemaking was not
published. See 2 U.S.C. 1532(a). Therefore, because the OCC has found
good cause to dispense with notice and comment for this final rule, the
OCC has not prepared a budgetary impact statement for the rule under
the UMRA.
List of Subjects in 12 CFR Part 34
Appraisal, Appraiser, Banks, Banking, Consumer protection, Credit,
Mortgages, National banks, Reporting and recordkeeping requirements,
Savings associations, Truth in lending.
For the reasons stated in the preamble, the Office of the
Comptroller of the Currency amends 12 CFR part 34 as follows:
PART 34--REAL ESTATE LENDING AND APPRAISALS
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1. The authority citation for part 34 continues to read as follows:
Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, 371, 1462a, 1463,
1464, 1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., and
5412(b)(2)(B) and 15 U.S.C. 1639h.
[[Page 43422]]
Subpart E--Other Real Estate Owned
Sec. 34.83 [Amended]
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2. In Sec. 34.83 amend paragraph (a)(3)(i) introductory text by adding
``or Federal savings association'' after ``national bank'' wherever it
occurs.
Brian P. Brooks,
Acting Comptroller of the Currency.
[FR Doc. 2020-14108 Filed 7-16-20; 8:45 am]
BILLING CODE 4810-33-P
