[Federal Register Volume 75, Number 120 (Wednesday, June 23, 2010)]
[Proposed Rules]
[Pages 35686-35689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15114]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 75, No. 120 / Wednesday, June 23, 2010 /
Proposed Rules
[[Page 35686]]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 25
[Docket ID OCC-2010-0011]
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Docket No. R-1386]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 345
RIN 3064-AD60
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 563e
[Docket ID OTS-2010-0019]
Community Reinvestment Act Regulation Hearings
AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC); Office of Thrift Supervision,
Treasury (OTS).
ACTION: Public hearings; request for comments.
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SUMMARY: The OCC, Board, FDIC, and OTS (collectively, ``the agencies'')
will hold a series of joint public hearings in four cities across the
country to receive public comments on the agencies' regulations
governing procedures for assessing a financial institution's
performance under the Community Reinvestment Act (CRA). The purpose of
the hearings is to seek a wide range of views on whether and how the
agencies should revise their regulations to better serve the goals of
the Community Reinvestment Act. The hearings will be held in:
Arlington, Virginia; Atlanta, Georgia; Chicago, Illinois; and Los
Angeles, California. The dates and details of how to request
participation are provided below.
DATES:
Public Hearing Dates:
1. July 19, 2010--Arlington, Virginia.
2. August 6, 2010--Atlanta, Georgia.
3. August 12, 2010--Chicago, Illinois.
4. August 17, 2010--Los Angeles, California.
Dates for Requests to Participate: Participants who wish to present
testimony or to attend one or more hearings in person must register
five business days in advance of the hearing date at http://www.ffiec.gov/cra/hearings.htm. Presenters are also strongly encouraged
to provide their written testimony five business days in advance of the
requested hearing date. The time available for presentations and the
space in the meeting rooms is limited. Therefore, participants are
encouraged to register early. Additional information is available on
the registration Web site and below under SUPPLEMENTARY INFORMATION.
Date to Submit Written Comments: Written comments (other than
testimony) may be provided to any agency as described below (under
ADDRESSES) through August 31, 2010.
ADDRESSES:
Public Hearing Addresses:
1. July 19, 2010--FDIC's L. William Seidman Center, 3501 Fairfax
Drive, Arlington, VA 22201-2305.
2. August 6, 2010--Federal Reserve Bank of Atlanta, 1000 Peachtree
Street Northeast, Atlanta, GA 30309.
3. August 12, 2010--Federal Reserve Bank of Chicago, 230 South La
Salle Street, Chicago, IL 60614.
4. August 17, 2010--Los Angeles Branch of the Federal Reserve Bank
of San Francisco, 950 South Grand Avenue, Los Angeles, CA 90015.
Addresses to Submit Written Comments: Persons are invited and
encouraged to submit written comments addressing their views on the CRA
regulations, whether or not they plan to testify at the hearings.
Written testimony to be delivered at the hearings should be provided
five business days in advance to the agency coordinating that hearing
location: Arlington: FDIC; Atlanta: Office of Thrift Supervision;
Chicago: Federal Reserve Board; and Los Angeles: Comptroller of the
Currency. Other comments may be submitted to any agency listed below.
Because paper mail in the Washington, DC area and at the agencies
is subject to delay, commenters are encouraged to submit comments by e-
mail or the appropriate agency Web site, if possible. Please use the
title ``Community Reinvestment Act Regulation Hearings'' and Docket or
RIN numbers to facilitate the organization and distribution of the
comments.
The agency addresses are as follows:
OCC: You may submit comments by any of the following methods:
E-mail: [email protected].
Mail: Office of the Comptroller of the Currency, 250 E
Street, SW., Mail Stop 2-3, Washington, DC 20219.
Fax: (202) 874-5274.
Hand Delivery/Courier: 250 E Street, SW., Mail Stop 2-3,
Washington, DC 20219.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2010-0011'' in your comment. In general, OCC will enter
all comments received into the docket and publish them on the
Regulations.gov Web site without change, including any business or
personal information that you provide such as name and address
information, e-mail addresses, or phone numbers. Comments received,
including attachments and other supporting materials, are part of the
public record and subject to public disclosure. Do not enclose any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
Viewing Comments Electronically: Go to http://www.regulations.gov. Select document type of ``Public Submissions,''
enter ``Docket ID OCC-2010-0011,'' click ``Search,'' under ``Agency''
heading check ``OCC,'' to view public comments.
Viewing Comments Personally: You may personally inspect
and photocopy comments at the OCC, 250 E Street, SW., Washington, DC.
For security reasons, the OCC requires that visitors make an
appointment to inspect comments. You may do so by calling (202) 874-
4700. Upon arrival, visitors will be required to present valid
government-issued photo identification and to submit to security
screening in order to inspect and photocopy comments.
Docket: You may also view or request available background
documents and project summaries using the methods described above.
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Board: You may submit comments, identified by Docket No. R-1386, by
any of the following methods:
Agency Web site: http://www.federalreserve.gov. Follow the
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/Regs.cfm.
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: [email protected]. Include the
docket number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Address to Jennifer J. Johnson, Secretary, Board of
Governors of the Federal Reserve System, 20th Street and Constitution
Avenue, NW., Washington, DC 20551.
All public comments will be made available on the Board's Web site
at http://www.federalreserve.gov/generalinfo/foia/Regs.cfm as
submitted, unless modified for technical reasons. Accordingly, your
comments will not be edited to remove any identifying or contact
information. Public comments may also be viewed electronically or in
paper in Room MP-500 of the Board's Martin Building (20th and C
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.
FDIC: You may submit comments identified by RIN 3064-AD60 by any of
the following methods:
Agency Web site: http://www.FDIC.gov/regulations/laws/federal/notices.html. Follow instructions for submitting comments on
the Agency Web site.
E-mail: [email protected]. Include RIN [see
above] on the subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments, Federal Deposit Insurance Corporation, 550 17th Street, NW.,
Washington, DC 20429.
Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street Building (located on F
Street) on business days between 7 a.m. and 5 p.m.
Public Inspection: All comments received will be posted generally
without change to http://www.fdic.gov/regulations/laws/federal/propose.html, including any personal information provided. Comments may
be inspected and photocopied in the FDIC Public Information Center,
3501 North Fairfax Drive, Room E-1002, Arlington, VA 22226, between 9
a.m. and 5 p.m. (EST) on business days. Paper copies of public comments
may be ordered from the Public Information Center by telephone at (877)
275-3342 or (703) 562-2200.
OTS: You may submit comments identified by OTS-2010-0019, by any of
the following methods:
E-mail: [email protected]. Please include ID
OTS-2010-0019 in the subject line of the message and include your name
and telephone number in the message.
Fax: (202) 906-6518.
Mail: Regulation Comments, Chief Counsel's Office, Office
of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552,
Attention: OTS-2010-0019.
Hand Delivery/Courier: Guard's Desk, East Lobby Entrance,
1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention:
Regulation Comments, Chief Counsel's Office, Attention: OTS-2010-0019.
Instructions: All submissions received must include the agency name
and docket number for this notice. All comments received will be
entered into the docket and posted on the Internet without change,
including any personal information provided. Comments, including
attachments and other supporting materials received are part of the
public record and subject to public disclosure. Do not enclose any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
Viewing Comments Electronically: OTS will post comments on the OTS
Internet Site at http://www.ots.treas.gov/?p=LawsRegulations.
Viewing Comments On-Site: You may inspect comments at the Public
Reading Room, 1700 G Street, NW., by appointment. To make an
appointment for access, call (202) 906-5922, send an e-mail to
public.info@ots.treas.gov">public.info@ots.treas.gov, or send a facsimile transmission to (202)
906-6518. (Prior notice identifying the materials you will be
requesting will assist us in serving you.) We schedule appointments on
business days between 10 a.m. and 4 p.m. In most cases, appointments
will be available the next business day following the date we receive a
request.
FOR FURTHER INFORMATION CONTACT:
OCC (Los Angeles, CA hearing): Barry Wides, Deputy Comptroller for
Community Affairs, [email protected], (202) 874-4930 or Gregory
Nagel, Compliance Policy Specialist, [email protected], (202)
874-0942, Office of the Comptroller of the Currency, 250 E Street, SW.,
Washington, DC 20219.
Board (Chicago, IL hearing): Joseph A. Firschein, Community Affairs
Officer, [email protected], (202) 736-5531 or Jamie Goodson,
Attorney, [email protected], (202) 452-3667 or Catherine M. J.
Gates, Senior Project Manager, [email protected] (202) 452-2099.
FDIC (Arlington, VA hearing): Janet Gordon, Senior Policy Analyst,
Division of Supervision and Consumer Protection, [email protected],
(202) 898-3850 or Richard Schwartz, Counsel, Legal Division (202) 898-
7424, [email protected], Federal Deposit Insurance Corporation, 550
17th Street, NW., Washington, DC 20429.
OTS (Atlanta, GA hearing): Stephanie Caputo, Senior Compliance
Program Analyst, [email protected], (202) 906-6549, or
Richard Bennett, Senior Compliance Counsel,
[email protected], (202) 906-7409, Office of Thrift
Supervision, 1700 G Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
Background
The Community Reinvestment Act (CRA) (12 U.S.C. 2901 et seq.) is
intended to encourage insured depository institutions to help meet the
credit needs of their communities, including low- and moderate-income
neighborhoods, consistent with safe and sound operation of the
institutions. The CRA requires each of the agencies to use its
authority when examining financial institutions to encourage such
institutions to help meet the credit needs of the local communities
they are chartered to serve. The agencies are required to consider this
record in evaluating an application for a charter, deposit insurance,
branch or other deposit facility, office relocation, merger, or holding
company acquisition of an insured depository institution. Detailed
information on CRA regulations and Interagency Examination Procedures
are available on the Federal Financial Institutions Examination Council
(FFIEC) Web site at http://www.ffiec.gov/cra/default.htm.
Public Hearings
The purpose of the public hearings is to receive public comments on
the agencies' CRA regulations and to solicit views on whether and how
the agencies should revise their CRA regulations to better serve the
goals of the CRA. The agencies invite testimony (oral and written) on
any issues regarding the
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CRA from any interested person.\1\ While the agencies recognize public
comments may discuss matters requiring statutory changes, the agencies'
focus is on potential regulatory changes.
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\1\ These hearings do not fall under the Negotiated Rulemaking
Act, 5 U.S.C. 561 et seq., or the Federal Advisory Committee Act, 5
U.S.C. Appendix 2.
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To participate in or attend the hearings in person, registration is
required at http://www.ffiec.gov/cra/hearings.htm and must be completed
at least five (5) business days before the hearing date. Individuals
proposing to testify are also strongly encouraged to provide their
written testimony at the time of registration. The time available for
presentations and the space in the meeting rooms is limited. Depending
on the number of requests, the agencies may not be able to accommodate
all who desire to speak or attend. In that case, the agencies will
establish a waiting list. By providing an email address and daytime
telephone number, you will enable us to confirm your participation and
arrange security clearance.
The hearings will address the broad range of CRA issues listed
below under Topics and Questions, as well as other CRA issues that may
be suggested by participants. Individuals requesting to participate in
the hearings should indicate to the agencies the primary topics they
intend to cover. The agencies will organize panels of presenters who
will have five minutes to make opening remarks. Representatives of the
regulatory agencies will then ask questions of the panelists. In
addition, there will be an opportunity for other participants to
deliver oral statements of three minutes or less. While all of the
topics will be open for discussion at all of the hearings, the agencies
plan to organize panels that will include invited participants, to
focus on particular topics in particular hearing locations. Panels are
being considered in the hearing locations as noted below:
Arlington: Community Development; Ratings and Incentives;
Effect of Evidence of Discriminatory or Other Illegal Credit Practices
on CRA Performance Evaluations.
Atlanta: Access to Banking Services (focus on serving both
unbanked and under-banked individuals and distressed and underserved
areas; Revisions to CRA Performance Tests (focus on rural communities
and small institutions).
Chicago: Geographic Coverage; Affiliate Activities;
Revisions to CRA Performance Tests.
Los Angeles: Small Business and Consumer Lending; CRA Data
Collection, Reporting and Disclosure, and Performance Evaluations.
Oral presentations will be limited to the time available. Potential
presenters are, therefore, strongly encouraged to make their written
testimony available to the agencies five business days in advance of
the hearing to provide additional information and help facilitate the
question period. Hearing proceedings will be recorded.
Details on the agendas of the specific hearings will be made
available on the registration Web site. Confirmations will also be
provided to the hearing presenters by email by an agency contact.
Written Comments
As noted above, individuals are invited and encouraged to submit
written comments addressing their views on the CRA regulation, whether
or not they plan to participate in the hearings. Persons wishing to
provide written comments (other than testimony) may submit them as
provided above through August 31, 2010.
Topics and Questions
The agencies are particularly interested in receiving hearing
testimony and written comments on the following topics and questions:
Geographic coverage. What are the best approaches to evaluating the
geographic scope of depository institution lending, investment and/or
deposit-taking activities under CRA? Should geographic scope differ for
institutions that are traditional branch-based retail institutions
compared to institutions with limited or no physical deposit-taking
facilities? Should it differ for small local institutions compared to
institutions with a nationwide customer base? If so, how? As the
financial services industry continues to evolve and uses new
technologies to serve customers, how should the agencies adapt their
CRA evaluations of urban and rural communities?
CRA performance tests, asset thresholds and designations. Should
the agencies revise the criteria used to assess performance under the
current CRA tests: Small institution; intermediate small institution;
large institution; wholesale and limited purpose institution or
strategic plan? Are the current asset thresholds that apply to
institutions and tests appropriate?
Affiliate activities. Currently, the agencies consider affiliate
activities only at the request of the related depository institution.
Should the agencies revise the regulation and, instead, require that
examiners routinely consider activities by affiliates? If so, what
affiliates or activities should be reviewed? How should consideration
of affiliates affect the geographic coverage of CRA assessments?
Small business and consumer lending evaluations and data. Should
the agencies revise the evaluation of and/or data requirements for
small business and small farm lending activities or for consumer
lending activities, including activities or products designed to meet
the needs of low- and moderate-income consumers? If so, what changes
are needed?
Access to banking services. How should access to financial services
be considered under CRA? What changes would encourage financial
institutions to expand access to un-banked and under-banked consumers
in a safe and sound manner and to promote affordable, safe transaction
and savings accounts? Should the agencies revise CRA to include
additional regulatory incentives to provide access to services for
historically underserved and distressed areas?
Community development. What are the opportunities to better
encourage community development loans, investments and services to
support projects that have a significant impact on a neighborhood?
Should the agencies consider revisions to the Community Development
Test or to the definition of community development? How could the rules
most effectively balance support for community development
organizations of different sizes, varying geographic scope, and in
diverse rural and urban communities? How might they balance incentives
for meeting local needs as well as the needs of very distressed areas
or those with emergency conditions?
Ratings and incentives. Is there an opportunity to improve the
rules governing CRA ratings to differentiate strong, mediocre, and
inadequate CRA performance more consistently and effectively? Are there
more effective measures to assess the qualitative elements of an
institution's performance? Are there regulatory incentives that could
be considered to encourage and recognize those institutions with
superior CRA performance?
Effect of evidence of discriminatory or other illegal credit
practices on CRA Performance Evaluations. Currently, the agencies'
evaluations of CRA performance are adversely affected by evidence of
discriminatory or other illegal credit practices as outlined in the
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CRA rules. Are the existing standards adequate? Should the regulations
require the agencies to consider violations of additional consumer
laws, such as the Truth in Savings Act, the Electronic Fund Transfer
Act, and the Fair Credit Reporting Act? Should the regulations be
revised to more specifically address how evidence of unsafe and unsound
lending practices adversely affects CRA ratings?
CRA disclosures and Performance Evaluations. Should the agencies
consider changes to data collection, reporting, and disclosure
requirements, for example, on community development loans and
investments? What changes to public Performance Evaluations would
streamline the reports, simplify compliance, improve consistency and
enhance clarity? Should the agencies consider changes to how
Performance Evaluations incorporate information from community contacts
or public comments?
Dated: June 16, 2010.
John C. Dugan,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, June 15, 2010.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, June 16, 2010.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
Dated: May 26, 2010.
By the Office of Thrift Supervision.
John E. Bowman,
Acting Director.
[FR Doc. 2010-15114 Filed 6-22-10; 8:45 am]
BILLING CODE 6210-01-P, 6720-01-P, 6714-01-P, 4810-33-P