[Federal Register Volume 79, Number 115 (Monday, June 16, 2014)]
[Rules and Regulations]
[Pages 34224-34226]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14007]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 1710, 1715, 1720, 3400, and 3500

[Docket No. FR-5788-F-01]
RIN 2501-AD67


Removal of Regulations Transferred to the Consumer Financial 
Protection Bureau

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: Through this rule, HUD removes its regulations previously 
authorized under the Real Estate Settlement Procedures Act of 1974 
(RESPA), the Secure and Fair Enforcement for Mortgage Licensing Act of 
2008 (SAFE Act), and the Interstate Land Sales Full Disclosure Act 
(ILSFDA). Responsibility for administration of these statutes, 
including authority to issue regulations, was transferred to the 
Consumer Financial Protection Bureau (CFPB)

[[Page 34225]]

pursuant to title X of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (Dodd-Frank Act). Accordingly, HUD's regulations for 
these statutes are no longer operative, and are being removed by this 
final rule.

DATES: Effective Date: July 16, 2014.

FOR FURTHER INFORMATION CONTACT: Camille E. Acevedo, Associate General 
Counsel for Legislation and Regulations, Office of General Counsel, 
Department of Housing and Urban Development, 451 7th Street SW., Room 
10276, Washington, DC 20410; telephone number 202-708-1793 (this is not 
a toll-free number). Persons with hearing or speech impairments may 
access this number through TTY by calling the Federal Relay Service at 
800-877-8389 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background

    The Dodd-Frank Act \1\ transferred from HUD to the CFPB the 
authority to administer, enforce, and otherwise implement the RESPA (12 
U.S.C. 2601 et seq.), the SAFE Act (12 U.S.C. 5101 et seq.), and the 
ILSFDA (15 U.S.C. 1701 et seq.).\2\ Until enactment of the Dodd-Frank 
Act, the responsibility to administer, enforce, and otherwise implement 
these statutes was placed on HUD. Under HUD's authority, HUD's issued 
regulations implementing these laws were codified at 24 CFR part 3500 
for RESPA, 24 CFR part 3400 for the SAFE Act, and 24 CFR parts 1710, 
1715, and 1720 for the ILSFDA. The transfer of authority to the CFPB 
occurred on July 21, 2011,\3\ and the CFPB has since issued its own 
regulations for these statutes.\4\ Entities covered by these statutes 
must now comply with the regulations issued by the CFPB. Accordingly, 
HUD is removing the regulations from title 24 of the Code of Federal 
Regulations.
---------------------------------------------------------------------------

    \1\ Public Law 111-203, 124 Stat. 1376, approved July 21, 2010.
    \2\ 12 U.S.C. 5581. See Dodd-Frank Act, section 1061(b)(7).
    \3\ See http://www.gpo.gov/fdsys/pkg/FR-2010-09-20/pdf/2010-23487.pdf.
    \4\ See 12 CFR part 1024 for RESPA, 12 CFR parts 1007 and 1008 
for the SAFE Act, and 12 CFR part 1024 for ILSFDA.
---------------------------------------------------------------------------

II. Justification for Final Rulemaking

    Pursuant to the Administrative Procedure Act (APA), notice and 
comment are not required prior to the issuance of a final rule if an 
agency, for good cause, finds that ``notice and public procedure 
thereon are impracticable, unnecessary, or contrary to the public 
interest.'' \5\ HUD finds that public notice and comment are not 
necessary for this rulemaking because the Dodd-Frank Act transferred 
all authority, including rulemaking authority, for RESPA, the SAFE Act, 
and the ILSFDA to the CFPB as of July 21, 2011. Therefore, HUD's rules 
for these laws are no longer operative. The removal of these 
regulations from title 24 of the Code of Federal Regulations is 
clerical in nature and will reduce any possible confusion that may 
result from having two sets of rules addressing these laws.
---------------------------------------------------------------------------

    \5\ 5 U.S.C. 553(b).
---------------------------------------------------------------------------

    For these reasons, HUD has determined that it is unnecessary to 
delay the effectiveness of this rule in order to solicit prior public 
comment.

III. Findings and Certification

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because HUD has determined that good cause exists to issue this rule 
without prior public comment, this rule is not subject to the 
requirement to publish an initial or final regulatory flexibility 
analysis under the RFA as part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \6\ 
requires that an agency prepare 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. If a budgetary impact statement is required, section 205 of UMRA 
also requires an agency to identify and consider a reasonable number of 
regulatory alternatives before promulgating a rule.\7\ However, the 
UMRA applies only to rules for which an agency publishes a general 
notice of proposed rulemaking pursuant to the APA.\8\ As discussed 
above, HUD has determined, for good cause, that the APA does not 
require general notice and public comment on this rule and, therefore, 
the UMRA does not apply to this final rule.
---------------------------------------------------------------------------

    \6\ 2 U.S.C. 1532.
    \7\ 2 U.S.C. 1534.
    \8\ 2 U.S.C. 1532(a).
---------------------------------------------------------------------------

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This final rule will not have 
federalism implications and would not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive order.

Environmental Review

    This final rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern, or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects

24 CFR Part 1710

    Consumer protection, Land sales, Reporting and recordkeeping 
requirements.

24 CFR Part 1715

    Advertising, Consumer protection, Fraud, Land sales.

24 CFR Part 1720

    Administrative practice and procedure.

24 CFR Part 3400

    Licensing, Mortgages, Registration, Reporting and recordkeeping 
requirements.

24 CFR Part 3500

    Consumer protection, Housing, Mortgages, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, and under the authority 
of 42 U.S.C. 3535(d), title 24 of the Code of Federal Regulations is 
amended as follows:

PART 1710--[REMOVED]

0
1. Remove part 1710.

PART 1715--[REMOVED]

0
2. Remove part 1715.

[[Page 34226]]

PART 1720--[REMOVED]

0
3. Remove part 1720.

PART 3400--[REMOVED]

0
4. Remove part 3400.

PART 3500--[REMOVED]

0
5. Remove part 3500.

    Dated: June 10, 2014.
Shaun Donovan,
Secretary.
[FR Doc. 2014-14007 Filed 6-13-14; 8:45 am]
BILLING CODE 4210-67-P