[Federal Register Volume 75, Number 36 (Wednesday, February 24, 2010)]
[Rules and Regulations]
[Pages 8239-8241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3612]
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FEDERAL HOUSING FINANCE BOARD
12 CFR Parts 926, 940 and 960
FEDERAL HOUSING FINANCE AGENCY
12 CFR Parts 1264, 1265 and 1269
RIN 2590-AA33
Federal Home Loan Bank Housing Associates, Core Mission
Activities and Standby Letters of Credit
AGENCY: Federal Housing Finance Agency, Federal Housing Finance Board.
ACTION: Final rule.
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SUMMARY: The Federal Housing Finance Agency (FHFA) is transferring
regulations of the former Federal Housing Finance Board (Finance Board)
to the FHFA's regulations. These regulations address, respectively,
Federal Home Loan Bank (Bank) housing associates, the Banks' core
mission activities, and Bank issuance of standby letters of credits.
FHFA is not making any substantive amendments to these regulations, and
is making only those changes that are necessary to accomplish the
transfer and to account for the fact that FHFA has succeeded the
Finance Board as the regulator for the Banks.
DATES: This rule is effective March 26, 2010.
FOR FURTHER INFORMATION CONTACT: Neil R. Crowley, Deputy General
Counsel, 202-343-1316, neil.crowley@fhfa.gov, Office of General
Counsel, Federal Housing Finance Agency, Fourth Floor, 1700 G Street,
NW., Washington, DC 20552. The telephone number for the
Telecommunications Device for the Deaf is (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On July 30, 2008, the Housing and Economic Recovery Act of 2008
(HERA), Public Law 110-289, 122 Stat. 2654 (2008), became law and
created FHFA as an independent agency of the Federal Government. Among
other things, HERA transferred to FHFA the supervisory and oversight
responsibilities over the Banks that formerly had been vested in the
now abolished Finance Board. The Banks continue to operate under
regulations promulgated by the Finance Board until such time as the
existing regulations are supplanted by regulations promulgated by FHFA.
II. The Final Regulation
The final regulation relocates rules addressing Bank housing
associates from part 926 of the Finance Board regulations to part 1263
of the FHFA regulations; the Banks' core mission activities from part
940 of the Finance Board regulations to part 1265 of the FHFA
regulations and Bank issuance of standby letters of credit from part
960 of the Finance Board regulations to part 1269 of the FHFA
regulations. This rulemaking is part of FHFA's efforts to transfer the
regulations of the former Finance Board from 12 CFR chapter IX, to 12
CFR chapter XII, which contains the FHFA regulations. The rule also
makes conforming changes to references to reflect the new part numbers
and will add to the new parts definitions that are contained in part
900 of the Finance Board regulations and are applicable to all
regulations contained in 12 CFR chapter IX (but would not be applicable
to the regulations after they are transferred to 12 CFR chapter XII).
The rule also changes references such as those to the Finance Board, to
conform to statutory changes made by HERA.
[[Page 8240]]
Authority citations in each part also are being amended to conform to
statutory changes made by HERA. Finally, the rulemaking will revise
newly designated 1264.6(a) to update the address for submitting appeals
of a Bank's decision to deny an application for certification as a
housing associate. All the changes are either technical or conforming
in nature, and no substantive changes are being made to any
requirements contained in the regulations.
III. Notice and Public Participation
FHFA finds that good cause exists for adopting these rule changes
as a final rule without public notice and comment under 5 U.S.C. 553(b)
because the changes simply relocate and redesignate existing Finance
Board regulations while making only minor technical and conforming
changes to the existing rules. No substantive changes are being made to
the regulations. Thus, FHFA believes that public comments are
unnecessary and would serve no purpose. The rulemaking reflects the
fact that HERA transferred the oversight functions of the Finance Board
to the FHFA and is part of the effort to relocate Finance Board
regulations from 12 CFR chapter IX to 12 CFR chapter XII.
IV. Paperwork Reduction Act
The information collection contained in the current Federal Home
Loan Bank Housing Associates regulation, has been assigned control
number 2590-0001 by the Office of Management and Budget (OMB). Neither
the transfer of this regulation from part 926 to part 1264 nor any of
the conforming changes will substantively or materially modify the
approved information collection. The other regulations, and any
technical or conforming amendments being made by this rulemaking, do
not contain collections of information pursuant to the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.). As a consequence, FHFA
has not submitted any information to the Office of Management and
Budget for review.
V. Regulatory Flexibility Act
The final regulation applies only to the Banks, which do not come
within the meaning of small entities as defined in the Regulatory
Flexibility Act (RFA). See 5 U.S.C. 601(6). The final regulation is
also purely administrative in nature and does not alter any
requirements currently applicable to the Banks. Therefore in accordance
with section 605(b) of the RFA, FHFA certifies that this final
regulation will not have significant economic impact on a substantial
number of small entities.
List of Subjects
12 CFR Parts 926 and 1264
Community development, Credit, Federal home loan banks, Housing,
Reporting and recordkeeping requirements.
12 CFR Parts 940 and 1265
Community development, Credit, Federal home loan banks, Housing.
12 CFR Parts 960 and 1269
Community development, Credit, Federal home loan banks, Housing,
Letters of credit.
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For the reasons stated in the preamble, FHFA hereby amends chapters IX
and XII, of title 12 of the Code of Federal Regulations as follows:
CHAPTER IX--FEDERAL HOUSING FINANCE BOARD
PART 926--[REDESIGNATED AS PART 1264]
0
1. Transfer 12 CFR part 926 from chapter IX, subchapter D, to chapter
XII, subchapter D and redesignate as 12 CFR part 1264.
PART 1264--FEDERAL HOME LOAN BANK HOUSING ASSOCIATES
0
2. The authority citation for newly redesignated part 1264 is revised
to read as follows:
Authority: 12 U.S.C. 1430b, 4511, 4513 and 4526.
0
3. Amend newly redesignated part 1264 as indicated in the table below:
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By removing the And adding in its
Amend: reference to: place:
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Sec. 1264.2............... part 950 of this part 950 of this
chapter. title.
Sec. 1264.3(a), Sec. 926.4........ Sec. 1264.4.
Introductory text.
Sec. 1264.3(b)............ Sec. 950.17(b)(2) Sec. 950.17(b)(2)
of this chapter. of this title.
Sec. 1264.3(b)............ Sec. 926.1........ Sec. 1264.1.
Sec. 1264.4(a)............ Sec. 926.3(a)(1).. Sec. 1264.3(a)(1).
Sec. 1264.4(b), Sec. 926.3(a)(2).. Sec. 1264.3(a)(2).
Introductory text.
Sec. 1264.4(c)(1)......... Sec. 926.3(a)(3).. Sec. 1264.3(a)(3).
Sec. 1264.4(d)............ Sec. 926.3(a)(4).. Sec. 1264.3(a)(4).
Sec. 1264.4(e)............ Sec. 926.3(a)(5).. Sec. 1264.3(a)(5).
Sec. 1264.5(b)............ part 925 of this part 1263 of this
chapter. title.
Sec. 1264.6(b)............ Sec. 926.5(c)(3).. Sec. 1264.5(c)(3).
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4. In newly redesignated part 1264 revise all references to ``Finance
Board'' to read ``FHFA''.
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5. In newly redesignated Sec. 1264.1, add definitions for ``Act,''
``Bank,'' and ``FHFA'' in correct alphabetical order to read as
follows:
Sec. 1264.1 Definitions.
* * * * *
Act means the Federal Home Loan Bank Act as amended (12 U.S.C. 1421
through 1449).
Bank written in title case means a Federal Home Loan Bank
established under section 12 of the Act (12 U.S.C. 1432).
FHFA means the Federal Housing Finance Agency.
* * * * *
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6. In newly redesignated Sec. 1264.6, revise paragraph (a) to read as
follows:
Sec. 1264.6 Appeals.
(a) General. Within 90 calendar days of the date of a Bank's
decision to deny an application for certification as a housing
associate, the applicant may submit a written appeal to FHFA that
includes the Bank's decision resolution and a statement of the basis
for the appeal with sufficient facts, information, analysis and
explanation to support the applicant's position. Send appeals to the
Deputy Director for Federal Home Loan Bank Regulation, Federal Housing
Finance Agency, 1625 Eye Street NW., Washington DC 20006, with a copy
to the Bank.
* * * * *
CHAPTER IX--FEDERAL HOUSING FINANCE BOARD
PART 940--[REDESIGNATED AS PART 1265]
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7. Transfer 12 CFR part 940 from chapter IX, subchapter F, to chapter
XII, subchapter D and redesignate as 12 CFR part 1265.
[[Page 8241]]
PART 1265--CORE MISSION ACTIVITIES
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8. The authority citation for newly redesignated part 1265 is revised
to read as follows:
Authority: 12 U.S.C. 1430, 1430b, 1431, 4511, 4513 and 4526.
0
9. Revise newly redesignated Sec. 1265.1 to read as follows:
Sec. 1265.1 Definitions.
As used in this part:
Acquired member assets or AMA means those assets that may be
acquired by a Bank under part 955 of this title.
Advance means a loan from a Bank that is:
(1) Provided pursuant to a written agreement;
(2) Supported by a note or other written evidence of the borrower's
obligations; and
(3) Fully secured by collateral in accordance with the Federal Home
Loan Bank Act (12 U.S.C. 1421 through 1449) and applicable regulations.
Bank written in title case means a Federal Home Loan Bank
established under section 12 of the Federal Home Loan Bank Act (12
U.S.C. 1432).
SBIC means a small business investment company formed pursuant to
section 301 of the Small Business Investment Act (15 U.S.C. 681).
Targeted income level means:
(1) For rural areas, incomes at or below 115 percent of the median
income for the area, as adjusted for family size in accordance with the
methodology of the applicable area median income standard or, at the
option of the Bank, for a family of four; and
(2) For urban areas, incomes at or below 100 percent of the median
income for the area, as adjusted for family size in accordance with the
methodology of the applicable area median income standard or, at the
option of the Bank, for a family of four.
CHAPTER IX--FEDERAL HOUSING FINANCE BOARD
PART 960--[REDESIGNATED AS PART 1269]
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10. Transfer 12 CFR part 960 from Chapter IX, subchapter G, to Chapter
XII, subchapter D and redesignate as 12 CFR part 1269.
PART 1269--STANDBY LETTERS OF CREDIT
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11. The authority citation for newly redesignated part 1269 is revised
to read as follows:
Authority: 12 U.S.C. 1429, 1430, 1430b, 1431, 4511, 4513 and
4526.
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12. Amend part 1269 as indicated in the table below:
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By removing the And adding in its
Amend: reference to: place:
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Sec. 1269.1, Definition of Sec. 926.1........ Sec. 1264.1.
SHFA associate.
Sec. 1269.1, Definition of Sec. 926.3(b)..... Sec. 1264.3(b).
SHFA associate.
Sec. 1269.2(b)............ Sec. 960.4(a)(2).. Sec. 1269.4(a)(2).
Sec. 1269.2(c)(1)......... Sec. 950.7 of this Sec. 950.7 of this
chapter. title.
Sec. 1269.3(a), Sec. Sec. Sec. Sec.
Introductory text. 950.17(b)(1)(i) or 950.17(b)(1)(i) or
(ii) of this (ii) of this title.
chapter.
Sec. 1269.3(b)............ Sec. Sec. Sec. Sec.
950.17(b)(2)(i)(A), 950.17(b)(2)(i)(A),
(B) or (C) of this (B) or (C) of this
chapter. title.
Sec. 1269.4(a)(1)......... Sec. Sec. Sec. Sec.
950.17(b)(2)(i)(B), 950.17(b)(2)(i)(B),
950.17(d) or 969.2 950.17(d) or 969.2
of this chapter. of this title.
Sec. 1269.4(c)............ part 950 of this part 950 of this
chapter. title.
Sec. 1269.5(b)(1)......... Sec. Sec. 960.2 Sec. Sec. 1269.2
or 960.3. or 1269.3.
Sec. 1269.5(b)(2)......... Sec. Sec. Sec. Sec.
950.7(d), 950.7(e), 950.7(d), 950.7(e),
950.8, 950.9 and 950.8, 950.9 and
950.10 of this 950.10 of this
chapter. title.
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13. In newly redesignated Sec. 1269.1, add definitions for ``Act,''
``Bank,'' ``Community lending,'' and ``NRSRO'' in correct alphabetical
order to read as follows:
Sec. 1269.1 Definitions.
* * * * *
Act means the Federal Home Loan Bank Act as amended (12 U.S.C. 1421
through 1449).
* * * * *
Bank written in title case means a Federal Home Loan Bank
established under section 12 of the Act (12 U.S.C. 1432).
* * * * *
Community lending means providing financing for economic
development projects for targeted beneficiaries, and, for community
financial institutions (as defined in Sec. 1263.1 of this title),
purchasing or funding small business loans, small farm loans or small
agri-business loans (as defined in Sec. 950.1 of this title).
* * * * *
NRSRO means a credit rating organization registered with the
Securities and Exchange Commission as a nationally recognized
statistical rating organization.
* * * * *
Dated: February 15, 2010.
Edward J. DeMarco,
Acting Director, Federal Housing Finance Agency.
[FR Doc. 2010-3612 Filed 2-23-10; 8:45 am]
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