[Federal Register Volume 70, Number 5 (Friday, January 7, 2005)]
[Notices]
[Page 1444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-305]
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FEDERAL HOUSING FINANCE BOARD
[No. 2004-N-13]
Notice of Annual Adjustments
AGENCY: Federal Housing Finance Board.
ACTION: Notice.
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SUMMARY: The Federal Housing Finance Board (Finance Board) has adjusted
the cap on average total assets that defines a ``Community Financial
Institution'' (CFI) and the limits on annual compensation for Federal
Home Loan Bank (Bank) directors based on the annual percentage increase
in the Consumer Price Index for all urban consumers (CPI-U), as
published by the U.S. Department of Labor (DOL). The Finance Board also
has made similar adjustments to the maximum dollar limits on certain
allocations by a Bank of its annual required Affordable Housing Program
(AHP) contributions.
FOR FURTHER INFORMATION CONTACT: Scott L. Smith, Associate Director, by
telephone at (202) 408-2991 or by electronic mail at smiths@fhfb.gov,
or Mark Edward Stover, Senior Economist, by telephone at (202) 408-2828
or by electronic mail at stoverm@fhfb.gov. Send regular mail to the
Federal Housing Finance Board, Office of Supervision, Regulations and
Research, 1777 F Street, NW., Washington, DC 20006.
SUPPLEMENTARY INFORMATION: The Bank Act and Finance Board regulations
require publication of annual adjustments to the following dollar
amounts, based on any increase in the CPI-U, as published by the DOL:
The cap on average total assets that defines a CFI (CFI
Asset Cap). See 12 U.S.C. 1422(13) and 12 CFR 925.1.
The limits on annual compensation for Bank directors. See
12 U.S.C. 1427(i)(2) and 12 CFR 918.3(a).
Maximum dollar limits allocations by a Bank of its annual
required AHP contributions towards homeownership set-aside programs and
an additional homeownership set-aside program assisting first-time
homebuyers, and from its annual required AHP contribution for the
subsequent year to the current year's competitive application program.
See 12 CFR 951.3(a)(1)-(2).
These annual adjustments, which are effective January 1, 2005, are
based on the percentage increase in the CPI-U from November 2003 to
November 2004. The CPI-U increased 3.5 percent from November 2003 to
November 2004.
The Finance Board uses data from November rather than waiting for
the December data, which is published in mid-January, in order to
provide notice to the Banks as close to the January 1st effective date
as possible. This is consistent with the practice of other Federal
agencies that rely on other than December data when calculating annual
inflation adjustments so they can announce their adjustments prior to
the effective date of January 1. The Finance Board also uses data that
has not been seasonally adjusted. The DOL encourages the use of CPI-U
data that has not been seasonally adjusted in ``escalation agreements''
because seasonal factors are updated annually and seasonally adjusted
data are subject to revision for up to five years following the
original release. Unadjusted data are not routinely subject to
revision, and previously published unadjusted data are corrected only
when significant calculation errors are discovered.
Based on the 3.5 percent increase in the CPI-U, the Finance Board
has made the following adjustments, effective January 1, 2005:
CFI Asset Cap. The CFI Asset Cap increased to $567 million
(2004 limit was $548 million). The Finance Board arrived at the
adjusted limit of $567 million by rounding to the nearest million.\1\
Bank Director Compensation. The annual compensation limits
for Bank directors increased for a chairperson to $28,364 (2004 limit
was $27,405), for a vice-chairperson to $22,692 (2004 limit was
$21,924), and for all other board members to $17,019 (2004 limit was
$16,443). The Finance Board arrived at these adjusted annual
compensation limits by rounding to the nearest dollar.\1\
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\1\ Since the calculations are based on cumulative CPI-U changes
applied to the limits as they first appeared in Finance Board
regulations, the changes are not distorted over time by rounding.
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AHP. The limit on contributions towards homeownership set-
aside programs increased to $3.2 million (2004 limit was $3.1 million).
The limit on contributions towards an additional first-time homebuyer
set-aside program remains at $1.6 million. The limit on allocations
from a Bank's annual required AHP contribution for the subsequent year
to the current year's competitive application program increased to $3.2
million (2004 limit was $3.1 million). The limits on allocations from
AHP contributions are rounded to the nearest $100,000.\1\
Dated: December 30, 2004.
By the Federal Housing Finance Board.
Ronald A. Rosenfeld,
Chairman.
[FR Doc. 05-305 Filed 1-6-05; 8:45 am]
BILLING CODE 6725-01-P