[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 42010-42013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16885]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: Notice is hereby given of the final approval of proposed
information collections by the Board of Governors of the Federal
Reserve System (Board) under OMB delegated authority, as per 5 CFR
1320.16 (OMB Regulations on
[[Page 42011]]
Controlling Paperwork Burdens on the Public). Board-approved
collections of information are incorporated into the official OMB
inventory of currently approved collections of information. Copies of
the Paperwork Reduction Act Submission, supporting statements and
approved collection of information instrument(s) are placed into OMB's
public docket files. The Federal Reserve may not conduct or sponsor,
and the respondent is not required to respond to, an information
collection that has been extended, revised, or implemented on or after
October 1, 1995, unless it displays a currently valid OMB control
number.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer, Cynthia Ayouch, Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551 (202)
452-3829. Telecommunications Device for the Deaf (TDD) users may
contact (202) 263-4869, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
OMB Desk Officer, Shagufta Ahmed, Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503.
Final approval under OMB delegated authority of the extension for three
years, without revision, of the following reports:
1. Report title: Notification of Nonfinancial Data Processing
Activities.
Agency form numbers: FR 4021.
OMB control number: 7100-0306.
Frequency: On occasion.
Reporters: Bank holding companies.
Estimated annual reporting hours: 4 hours.
Estimated average hours per response: 2 hours.
Number of respondents: 2.
General description of report: This information collection is
required to obtain a benefit. (12 U.S.C. 1843(c)(8), (j) and (k)) and
may be given confidential treatment upon request (5 U.S.C. 552(b)(4)).
Abstract: Bank holding companies submit this notification to
request permission to administer the 49-percent revenue limit on
nonfinancial data processing activities on a business-line or multiple-
entity basis. A request may be filed in a letter form; there is no
reporting form for this information collection.
2. Report title: Recordkeeping Requirements Associated With
Limitations on Interbank Liabilities.
Agency form number: Regulation F.
OMB control number: 7100-0331.
Frequency: On occasion.
Reporters: State member banks.
Estimated annual reporting hours: 6,672 hours.
Estimated average time per response: 8 hours.
Number of respondents: 834.
General description of report: This information collection is
mandatory pursuant to section 23 of the Federal Reserve Act, as added
by section 308 of the Federal Deposit Insurance Corporation Improvement
Act of 1991 (FDICIA) (12 U.S.C. 371b-2). Because the Federal Reserve
does not collect any information, no issue of confidentiality normally
arises. However, if a compliance program becomes a Federal Reserve
record during an examination, the information may be protected from
disclosure under exemptions (b)(4) and (b)(8) of the Freedom of
Information Act (5 U.S.C. 552(b)(4) and (b)(8)).
Abstract: Section 206.3 of Regulation F requires insured depository
institutions to establish and maintain policies and procedures designed
to prevent excessive exposure to correspondents in order to limit the
risks that the failure of a depository institution would pose to
insured depository institutions. The Federal Reserve accounts for the
paperwork burden on state member banks for Regulation F compliance.
3. Report title: Recordkeeping and Disclosure Requirements
Associated With Regulation R.
Agency form number: FR 4025.
OMB control number: 7100-0316.
Frequency: On occasion.
Reporters: Commercial banks and savings associations.
Estimated annual reporting hours: Section 701, disclosures to
customers: 12,500 hours; Section 701, disclosures to brokers: 375
hours; Section 723, recordkeeping; 188 hours; Section 741, disclosures
to customers: 62,500 hours.
Estimated average time per response: Section 701, disclosures to
customers: 5 minutes; Section 701, disclosures to brokers: 15 minutes;
Section 723, recordkeeping: 15 minutes; Section 741, disclosures to
customers: 5 minutes.
Number of respondents: Section 701, disclosures to customers:
1,500; Section 701, disclosures to brokers: 1,500; Section 723,
recordkeeping: 75; Section 741, disclosures to customers: 750.
General description of report: This information collection is
required to obtain a benefit pursuant to section 3(a)(4)(F) of the
Exchange Act (15 U.S.C. 78c(a)(4)(F)) and may be given confidential
treatment under the authority of the Freedom of Information Act (5
U.S.C. 552(b)(4) and (b)(8)).
Abstract: Regulation R implements certain exceptions for banks from
the definition of broker under Section 3(a)(4) of the Securities
Exchange Act of 1934, as amended by the Gramm-Leach-Bliley Act.
Sections 701, 723, and 741 of Regulation R contain information
collection requirements. Section 701 requires banks that wish to
utilize the exemption in that section to make certain disclosures to
the high net worth customer or institutional customer. In addition,
section 701 requires banks that wish to utilize the exemption in that
section to provide a notice to its broker-dealer partner regarding
names and other identifying information about bank employees. Section
723 requires a bank that chooses to rely on the exemption in that
section to exclude certain trust or fiduciary accounts in determining
its compliance with the chiefly compensated test in section 721 to
maintain certain records relating to the excluded accounts. Section 741
requires a bank relying on the exemption provided by that section to
provide customers with a prospectus for the money market fund
securities, not later than the time the customer authorizes the bank to
effect the transaction in such securities, if the class of series of
securities are not no-load.
4. Report title: Registration of Mortgage Loan Originators.
Agency form number: CFPB Regulation G (12 CFR 1007).
OMB control number: 7100-0328.
Frequency: Annually.
Reporters: Employees of state member banks, certain subsidiaries of
state member banks, branches and agencies of foreign banks that are
regulated by the Federal Reserve, and commercial lending companies of
foreign banks who act as residential mortgage loan originators (MLOs).
Estimated annual reporting hours: MLOs (new) Initial set up and
disclosure; 938 hours; MLOs (existing) Maintenance and disclosure:
16,255 hours; MLOs (existing) Updates for changes: 2,391 hours;
Depository Institutions and subsidiaries: 90,388 hours.
Estimated average time per response: MLOs (new) Initial set up and
disclosure: 3.50 hours; MLOs (existing) Maintenance and disclosure: .85
hours; MLOs (existing) Updates for changes: .25 hours; Depository
Institutions and subsidiaries: 118 hours.
Number of respondents: MLOs (new) Initial set up and disclosure:
268; MLOs (existing) Maintenance and disclosure: 19,124; MLOs
(existing) Updates for changes: 9,562; Depository Institutions, and
subsidiaries: 766.
General description of report: Section 1507 of the Secure and Fair
[[Page 42012]]
Enforcement for Mortgage Licensing Act (the S.A.F.E. Act), 12 U.S.C.
5106, requires that the Consumer Financial Protection Bureau (CFPB)
develop and maintain a system for registering individual MLOs of
covered financial institutions supervised directly by the Bureau or
regulated by a federal banking agency with the Nationwide Mortgage
Licensing System and Registry. Section 1504 of the S.A.F.E. Act, 12
U.S.C. 5103, requires that an individual desiring to engage in the
business of a loan originator maintain an annual federal registration
(or be licensed by an equivalent state regulatory scheme) and appear on
the Registry with a unique identifier. Section 1007.103 of Regulation G
implements this registration scheme on behalf of the Bureau, and
Section 1007.105 of Regulation G requires that covered financial
institutions provide the unique identifiers of MLOs to consumers. 12
CFR 1007.103 thru 105. This information collection is mandatory.
The unique identifier of MLOs must be made public and is not
considered confidential. In addition, most of the information that MLOs
submit in order to register with the Nationwide Mortgage Licensing
System and Registry will be publicly available. However, certain
identifying data on individuals who act as MLOs are entitled to
confidential treatment under (b)(6) of the Freedom of Information Act
(FOIA), which protects from disclosure information that ``would
constitute a clearly unwarranted invasion of personal privacy.'' 5
U.S.C. 552(b)(6).
With respect to the information collection requirements imposed on
depository institutions, because the requirements are that depository
institutions retain their own records and make certain disclosures to
customers, the FOIA would only be implicated if the Federal Reserve's
examiners obtained a copy of these records as part of the examination
or supervision process of a financial institution. However, records
obtained in this manner are exempt from disclosure under FOIA exemption
(b)(8), regarding examination-related materials. 5 U.S.C. 552(b)(8).
Abstract: On July 28, 2010, the Federal Reserve amended Regulation
H to implement the Secure and Fair Enforcement for Mortgage Licensing
Act (the S.A.F.E. Act) with respect to its regulated entities, enacted
July 30, 2008.\1\ On July 21, 2011, provisions of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act)
transferred certain S.A.F.E. Act responsibilities to the CFPB,
including rulemaking authority for all federal depository institutions
and supervisory authority for S.A.F.E. Act compliance for entities
under the CFPB's jurisdiction. On December 19, 2011, the CFPB published
an interim final rule establishing a new Regulation G,\2\ S.A.F.E. ACT
Mortgage Licensing Act--Federal Registration of Residential Mortgage
Loan Originators.\3\ The CFPB's rule did not impose any new substantive
obligations on regulated persons or entities. The Federal Reserve
retains supervisory authority for S.A.F.E. Act compliance for most
Federal Reserve-supervised entities with consolidated assets of $10
billion or less.
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\1\ 75 FR 44656 (July 28, 2010). See also the revised Federal
Register preamble at 75 FR 51623 (August 23, 2010).
\2\ 12 CFR 1007.
\3\ 76 FR 78483.
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The CFPB's Regulation G requires employees of state member banks,
certain subsidiaries of state member banks, branches and agencies of
foreign banks that are regulated by the Federal Reserve, and commercial
lending companies of foreign banks who act as residential mortgage loan
originators (MLOs) to register with the Nationwide Mortgage Licensing
System and Registry (NMLSR), obtain a unique identifier, maintain this
registration, and disclose to consumers upon request and through the
NMLSR their unique identifier, and the MLO's employment history and
publicly adjudicated disciplinary and enforcement actions. The CFPB's
regulation also requires the institutions employing these MLOs to adopt
and follow written policies and procedures to ensure their employees
comply with these requirements and to disclose the unique identifiers
of their MLOs.
5. Report title: Recordkeeping and Disclosure Requirements
Associated with Securities Transactions Pursuant to Regulation H.
Agency form number: Reg H-3.
OMB control number: 7100-0196.
Frequency: On occasion.
Reporters: State member banks.
Estimated annual reporting hours: 97,869 hours.
Estimated average time per response: State member banks (de novo):
recordkeeping, 40 hours.
State member banks with trust departments: recordkeeping, 2 hours;
disclosure, 16 hours. State member banks without trust departments:
recordkeeping, 15 minutes; disclosure, 5 hours.
Number of respondents: State member banks (de novo): 3; state
member banks with trust departments: 228; state member banks without
trust departments: 615.
General description of report: Regulation H requirements are
authorized by Section 23 of the Securities Exchange Act of 1934 (``the
34 Act''), 15 U.S.C. 78w, which empowers the Federal Reserve to make
rules and regulations implementing those portions of the 34 Act for
which it is responsible. The requirements of 12 CFR 208.34(c), (d), &
(g) also are impliedly authorized by Section 9 of the Federal Reserve
Act, 12 U.S.C. 325, which requires state member banks to submit to
examinations by the Federal Reserve System. These securities
transactions requirements appear to be reasonably related to the
Federal Reserve's supervisory authority with respect to the safety and
soundness of state member banks. Accordingly, the Federal Reserve is
authorized by implication under 12 U.S.C. 325 to impose these
recordkeeping, disclosure, and policy establishment requirements. The
obligation of a state member bank to comply with the Regulation H
requirements is mandatory, save for the limited exceptions set forth in
12 CFR 208.34(a).
Inasmuch as the Federal Reserve System does not collect or receive
any information concerning securities transactions pursuant to these
requirements, no issues of confidentiality normally will arise. If,
however, these records were to come into the possession of the Federal
Reserve, they may be protected from disclosure pursuant to exemption 4
of the Freedom of Information Act (``FOIA''), 5 U.S.C. 552(b)(4), under
the standards set forth in National Parks & Conservation Ass'n v.
Morton, 498 F.2d 765 (D.C. Cir. 1974), to the extent an institution can
establish the potential for substantial competitive harm. They also may
be subject to withholding under FOIA exemption 6, 5 U.S.C. 552(b)(6),
should disclosure constitute an unwarranted invasion of personal
privacy. Additionally, if such information were included in the work
papers of System examiners or abstracted in System reports of
examination, the information also would be protected under exemption 8
of FOIA, 5 U.S.C. 552(b)(8). Any withholding determination would be
made on a case-by-case basis in response to a specific request for
disclosure of the information.
Abstract: The Federal Reserve's Regulation H requires state member
banks to maintain records for three years following a securities
transaction. These requirements are necessary to protect the customer,
to avoid or settle
[[Page 42013]]
customer disputes, and to protect the institution against potential
liability arising under the anti-fraud and insider trading provisions
of the Securities Exchange Act of 1934.
6. Report title: HMDA Loan/Application Register.
Agency form number: FR HMDA-LAR.
OMB control number: 7100-0247.
Frequency: Annually.
Reporters: State member banks, subsidiaries of state member banks,
subsidiaries of bank holding companies, U.S. branches and agencies of
foreign banks (other than federal branches, federal agencies, and
insured state branches of foreign banks), commercial lending companies
owned or controlled by foreign banks, and organizations operating under
section 25 or 25A of the Federal Reserve Act.\4\
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\4\ The CFPB supervises, among other institutions, insured
depository institutions with over $10 billion in assets and their
affiliates (including affiliates that are themselves depository
institutions regardless of asset size and subsidiaries of such
affiliates).
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Estimated annual reporting hours: 127,652 hours.
Estimated average time per response: State member banks: 242 hours;
mortgage subsidiaries: 192 hours.
Number of respondents: State member banks: 514; mortgage
subsidiaries: 17.
General description of report: Section 304(j) of the Home Mortgage
Disclosure Act (HMDA), which requires the Consumer Financial Protection
Bureau (CFPB) to prescribe by regulation the form of a LAR that must be
maintained by lending institutions, is mandatory for covered
institutions. Regulation C implements this statutory provision and
requires that reports be sent to the appropriate federal banking
agency. HMDA requires that the LAR be made available to the public in
the form prescribed by the CFPB. The CFPB is authorized to require
certain deletions from the LAR information to protect the privacy of
applicants and to protect depository institutions from liability under
Federal or state privacy law. The deleted information is exempt from
disclosure under that provision of HMDA and pursuant to Exemption 6 of
the Freedom of Information Act (5 U.S.C. 552(b)(6)).
Abstract: HMDA was enacted in 1975 and is implemented by Regulation
C. HMDA requires depository and certain for-profit, non-depository
institutions to collect, report to regulators, and disclose to the
public data about originations and purchases of home mortgage loans
(home purchase and refinancing) and home improvement loans, as well as
loan applications that do not result in originations (for example,
applications that are denied or withdrawn). HMDA was enacted to provide
the public with loan data that can be used to: (1) Help determine
whether financial institutions are serving the housing needs of their
communities, (2) assist public officials in distributing public-sector
investments so as to attract private investment to areas where it is
needed, and (3) assist in identifying possible discriminatory lending
patterns and enforcing anti-discrimination statutes.\5\
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\5\ 12 CFR 1003.1(b).
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Current Actions: On April 18, 2014, the Federal Reserve published a
notice in the Federal Register (79 FR 21926) requesting public comment
for 60 days on the extension, without revision, of the FR 4021, Reg F,
FR 4025, CFPB Regulation G (12 CFR 1007), Reg H-3, and FR HMDA-LAR. The
comment period for this notice expired on June 17, 2014. The Federal
Reserve did not receive any comments.
Board of Governors of the Federal Reserve System, July 14, 2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014-16885 Filed 7-17-14; 8:45 am]
BILLING CODE 6210-01-P