This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
31171
Vol. 84, No. 126
Monday, July 1, 2019
1 12 U.S.C. 5411.
2 12 U.S.C. 5414(b).
3 76 FR 39246 (Jul. 6, 2011).
4 76 FR 47652 (Aug. 5, 2011).
5 12 U.S.C. 1813(q).
6 See also 12 U.S.C. 5412(b)(2)(C)(ii) (‘‘the
Corporation shall succeed to all powers, authorities,
rights, and duties that were vested in the Office of
Thrift Supervision and the Director of the Office of
Thrift Supervision on the day before the transfer
date relating to the functions transferred under
clause (i).’’ [relating to State savings associations]).
7 12 U.S.C. 5101, et seq.
8 See section 1100 of the Dodd-Frank Act.
9 See 12 CFR part 1007.
10 84 FR 1653 (Feb. 5, 2019).
11 See 84 FR 1655–58.
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 365 and 390
RIN 3064–AE22
Removal of Transferred OTS
Regulations Regarding Lending and
Investment; and Conforming
Amendments to Other Regulation
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Final rule.
SUMMARY: The Federal Deposit
Insurance Corporation (FDIC) is
adopting a final rule (final rule) to
rescind and remove the ‘‘Lending and
Investment’’ regulations because they
are unnecessary, redundant, or
duplicative of existing FDIC regulations;
to amend certain sections of existing
FDIC regulations governing real estate
lending standards to make them
applicable to all insured depository
institutions for which the FDIC is the
appropriate Federal banking agency;
and to rescind and remove ‘‘Registration
of Residential Mortgage Loan
Originators’’ regulations because
supervision and rulemaking authority in
this area was transferred to the
Consumer Financial Protection Bureau
(Bureau) by the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act).
DATES: The Final Rule is effective on
July 31, 2019.
FOR FURTHER INFORMATION CONTACT:
Karen J. Currie, Senior Examination
Specialist, (202) 898–3981, kcurrie@
fdic.gov, Division of Risk Management
Supervision; Cassandra Duhaney,
Senior Policy Analyst, (202) 898–6804,
Division of Depositor and Consumer
Protection; Rodney D. Ray, Counsel,
Legal Division, (202) 898–3556; Linda
Hubble Ku, Counsel, Legal Division,
(202) 898–6634; or Gregory S. Feder,
Counsel, Legal Division, (202) 898–
8724.
SUPPLEMENTARY INFORMATION:
I. Background
Beginning July 21, 2011, the transfer
date established by section 311 of the
Dodd-Frank Act,1 the powers, duties
and functions of the former Office of
Thrift Supervision (OTS) were divided
among the FDIC for State savings
associations and the Office of the
Comptroller of the Currency (OCC) for
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (FRB) for savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act provides the
manner of treatment of all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS.2 The
section provides that if such regulatory
issuances were in effect on the day
before the transfer date, they continue in
effect and are enforceable by or against
the appropriate successor agency until
they are modified, terminated, set aside,
or superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
The Dodd-Frank Act directed the
FDIC and the OCC to consult with one
another and to publish a list of
continued OTS regulations to be
enforced by each respective agency that
would continue to remain in effect until
the appropriate Federal banking agency
modified or removed the regulations in
accordance with the applicable laws.
The list was published by the FDIC and
OCC as a Joint Rule in the Federal
Register on July 6, 2011,3 and shortly
thereafter, the FDIC published its
transferred OTS regulations as new
FDIC regulations in 12 CFR parts 390
and 391.4 When it republished the
transferred OTS regulations, the FDIC
noted that its staff would evaluate the
transferred OTS regulations and might
later recommend incorporating the
transferred OTS rules into other FDIC
rules, amending them or rescinding
them, as appropriate.
Further, section 312(c) of the Dodd-
Frank Act amended the definition of
‘‘appropriate Federal banking agency’’
contained in section 3(q) of the Federal
Deposit Insurance Act (FDI Act) 5 to add
State savings associations to the list of
entities for which the FDIC is
designated the ‘‘appropriate Federal
banking agency.’’ As a result, when the
FDIC acts as the ‘‘appropriate Federal
banking agency’’ for State savings
associations, as it does today, it has the
authority to issue, modify, and rescind
regulations involving such associations
as well as for State nonmember banks
and insured U.S. branches of foreign
banks.6
Finally, the Dodd-Frank Act amended
the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008
(S.A.F.E. Act),7 transferring the
mortgage loan originator registration
authority of the FDIC and certain other
Federal agencies (the S.A.F.E. Act
Agencies) to the Bureau.8 On December
10, 2011, the Bureau published its
Regulation G 9 which substantially
duplicated the FDIC’s S.A.F.E. Act
regulation at part 365, subpart B of the
FDIC’s regulations.
II. Proposed Rule
A. Removal of Part 390, Subpart P,
Lending and Investment
On February 5, 2019, the FDIC
published an NPR regarding the removal
of part 390, subpart P (formerly OTS
part 560), which addressed lending and
investments by State savings
associations.10 The former OTS rule was
transferred to the FDIC with only
nominal changes. The NPR proposed
removing part 390, subpart P from the
Code of Federal Regulations (CFR)
because, after careful review and
consideration, the FDIC believed it was
largely unnecessary, redundant, or
duplicative of existing FDIC
regulations.11
B. Amendments to Part 365, Subpart A,
Real Estate Lending Standards
In the NPR, the FDIC also proposed to
further effectuate the transfer of
VerDate Sep<11>2014 15:54 Jun 28, 2019 Jkt 247001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\01JYR1.SGM 01JYR1
khammond on DSKBBV9HB2PROD with RULES
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
31171
Vol. 84, No. 126
Monday, July 1, 2019
1 12 U.S.C. 5411.
2 12 U.S.C. 5414(b).
3 76 FR 39246 (Jul. 6, 2011).
4 76 FR 47652 (Aug. 5, 2011).
5 12 U.S.C. 1813(q).
6 See also 12 U.S.C. 5412(b)(2)(C)(ii) (‘‘the
Corporation shall succeed to all powers, authorities,
rights, and duties that were vested in the Office of
Thrift Supervision and the Director of the Office of
Thrift Supervision on the day before the transfer
date relating to the functions transferred under
clause (i).’’ [relating to State savings associations]).
7 12 U.S.C. 5101, et seq.
8 See section 1100 of the Dodd-Frank Act.
9 See 12 CFR part 1007.
10 84 FR 1653 (Feb. 5, 2019).
11 See 84 FR 1655–58.
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 365 and 390
RIN 3064–AE22
Removal of Transferred OTS
Regulations Regarding Lending and
Investment; and Conforming
Amendments to Other Regulation
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Final rule.
SUMMARY: The Federal Deposit
Insurance Corporation (FDIC) is
adopting a final rule (final rule) to
rescind and remove the ‘‘Lending and
Investment’’ regulations because they
are unnecessary, redundant, or
duplicative of existing FDIC regulations;
to amend certain sections of existing
FDIC regulations governing real estate
lending standards to make them
applicable to all insured depository
institutions for which the FDIC is the
appropriate Federal banking agency;
and to rescind and remove ‘‘Registration
of Residential Mortgage Loan
Originators’’ regulations because
supervision and rulemaking authority in
this area was transferred to the
Consumer Financial Protection Bureau
(Bureau) by the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act).
DATES: The Final Rule is effective on
July 31, 2019.
FOR FURTHER INFORMATION CONTACT:
Karen J. Currie, Senior Examination
Specialist, (202) 898–3981, kcurrie@
fdic.gov, Division of Risk Management
Supervision; Cassandra Duhaney,
Senior Policy Analyst, (202) 898–6804,
Division of Depositor and Consumer
Protection; Rodney D. Ray, Counsel,
Legal Division, (202) 898–3556; Linda
Hubble Ku, Counsel, Legal Division,
(202) 898–6634; or Gregory S. Feder,
Counsel, Legal Division, (202) 898–
8724.
SUPPLEMENTARY INFORMATION:
I. Background
Beginning July 21, 2011, the transfer
date established by section 311 of the
Dodd-Frank Act,1 the powers, duties
and functions of the former Office of
Thrift Supervision (OTS) were divided
among the FDIC for State savings
associations and the Office of the
Comptroller of the Currency (OCC) for
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (FRB) for savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act provides the
manner of treatment of all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS.2 The
section provides that if such regulatory
issuances were in effect on the day
before the transfer date, they continue in
effect and are enforceable by or against
the appropriate successor agency until
they are modified, terminated, set aside,
or superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
The Dodd-Frank Act directed the
FDIC and the OCC to consult with one
another and to publish a list of
continued OTS regulations to be
enforced by each respective agency that
would continue to remain in effect until
the appropriate Federal banking agency
modified or removed the regulations in
accordance with the applicable laws.
The list was published by the FDIC and
OCC as a Joint Rule in the Federal
Register on July 6, 2011,3 and shortly
thereafter, the FDIC published its
transferred OTS regulations as new
FDIC regulations in 12 CFR parts 390
and 391.4 When it republished the
transferred OTS regulations, the FDIC
noted that its staff would evaluate the
transferred OTS regulations and might
later recommend incorporating the
transferred OTS rules into other FDIC
rules, amending them or rescinding
them, as appropriate.
Further, section 312(c) of the Dodd-
Frank Act amended the definition of
‘‘appropriate Federal banking agency’’
contained in section 3(q) of the Federal
Deposit Insurance Act (FDI Act) 5 to add
State savings associations to the list of
entities for which the FDIC is
designated the ‘‘appropriate Federal
banking agency.’’ As a result, when the
FDIC acts as the ‘‘appropriate Federal
banking agency’’ for State savings
associations, as it does today, it has the
authority to issue, modify, and rescind
regulations involving such associations
as well as for State nonmember banks
and insured U.S. branches of foreign
banks.6
Finally, the Dodd-Frank Act amended
the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008
(S.A.F.E. Act),7 transferring the
mortgage loan originator registration
authority of the FDIC and certain other
Federal agencies (the S.A.F.E. Act
Agencies) to the Bureau.8 On December
10, 2011, the Bureau published its
Regulation G 9 which substantially
duplicated the FDIC’s S.A.F.E. Act
regulation at part 365, subpart B of the
FDIC’s regulations.
II. Proposed Rule
A. Removal of Part 390, Subpart P,
Lending and Investment
On February 5, 2019, the FDIC
published an NPR regarding the removal
of part 390, subpart P (formerly OTS
part 560), which addressed lending and
investments by State savings
associations.10 The former OTS rule was
transferred to the FDIC with only
nominal changes. The NPR proposed
removing part 390, subpart P from the
Code of Federal Regulations (CFR)
because, after careful review and
consideration, the FDIC believed it was
largely unnecessary, redundant, or
duplicative of existing FDIC
regulations.11
B. Amendments to Part 365, Subpart A,
Real Estate Lending Standards
In the NPR, the FDIC also proposed to
further effectuate the transfer of
VerDate Sep<11>2014 15:54 Jun 28, 2019 Jkt 247001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\01JYR1.SGM 01JYR1
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31172 Federal Register / Vol. 84, No. 126 / Monday, July 1, 2019 / Rules and Regulations
12 See id. at 1658.
13 The S.A.F.E. Act was enacted as part of the
Housing and Economic Recovery Act of 2008,
Public Law 110–289, 122 Stat. 2654, sections 1501–
17 (codified at 12 U.S.C. 5101–16) as amended by
Title X of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) (Pub. L.
111–203, 124 Stat. 1376). The S.A.F.E. Act requires
residential mortgage loan originators employed by
depository institutions, subsidiaries that are owned
and controlled by a depository institution and
regulated by a Federal banking agency, institutions
regulated by the National Credit Union
Administration, and institutions regulated by the
Farm Credit Administration to register with the
Nationwide Mortgage Licensing System and
Registry, obtain a unique identifier, and maintain
such registration.
14 See 84 FR 1658–59.
15 12 U.S.C. 1813(q).
16 44 U.S.C. 3501–3521.
17 5 U.S.C. 601, et seq.
18 The SBA defines a small banking organization
as having $550 million or less in assets, where ‘‘a
financial institution’s assets are determined by
averaging the assets reported on its four quarterly
financial statements for the preceding year.’’ See 13
CFR 121.201 (as amended, effective December 2,
2014). ‘‘SBA counts the receipts, employees, or
other measure of size of the concern whose size is
at issue and all of its domestic and foreign
affiliates. . . .’’ See 13 CFR 121.103. Following
these regulations, the FDIC uses a covered entity’s
affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the
FDIC-supervised institution is ‘‘small’’ for the
purposes of the RFA.
19 FDIC Call Report, December 31, 2018.
supervisory authority for State savings
associations from the former OTS to the
FDIC by amending certain parts of part
365 of the FDIC’s regulations to clarify
that part 365, subpart A applies to all
insured depository institutions,
including State savings associations, for
which the FDIC is the appropriate
Federal banking agency.12
C. Removal of Part 365, Subpart B,
Registration of Residential Mortgage
Loan Originators
Finally, the FDIC proposed to rescind
subpart B of part 365, which relates to
registration requirements for residential
mortgage loan originators, due to the
Bureau’s issuance of its 13 regulation,
Regulation G, pursuant to the Bureau’s
authority under the Dodd-Frank Act. In
light of the Bureau’s action, the FDIC
considered the provisions contained in
part 365, subpart B to be unnecessary,
redundant, or otherwise duplicative of
the Bureau regulation governing this
area.14
III. Comments
The FDIC issued the NPR with a 60-
day comment period, which closed on
April 8, 2019. The FDIC received no
comments on the NPR, and
consequently the final rule is adopted
without change.
IV. Explanation of the Final Rule
As discussed in the NPR, 12 CFR part
390, subpart P is being rescinded in its
entirety because other existing FDIC
regulations concerning permissible
activities, safety and soundness
standards, and real estate lending
standards replicate the current
requirements of part 390, subpart P.
To clarify that part 365 applies to all
institutions for which the FDIC is the
appropriate Federal banking agency, the
FDIC is amending sections 365.1 and
365.2 of part 365 to replace the phrases
‘‘insured state nonmember banks
(including state-licensed insured
branches of foreign banks)’’ and ‘‘state
nonmember bank’’ throughout subpart
A with the phrase ‘‘FDIC-supervised
institution.’’ In addition, section 365.1
is being revised to add the definition of
the term ‘‘FDIC-supervised institution’’
to mean any insured depository
institution for which the FDIC is the
appropriate Federal banking agency
pursuant to section 3(q) of the FDI
Act.15
Finally, because the Dodd-Frank Act
amended the S.A.F.E. Act, transferring
Federal registration requirements for
mortgage loan originators from the
S.A.F.E. Act Agencies (including the
FDIC) to the Bureau, and the Bureau has
finalized its Regulation G, the FDIC is
rescinding part 365, subpart B, in its
entirety, because it is outdated and no
longer necessary.
V. Administrative Law Matters
A. Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(PRA),16 the FDIC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number.
The final rule rescinds and removes
from FDIC regulations part 390, subpart
P. With regard to part 365, subpart A,
the final rule amends sections 365.1 and
365.2 to clarify that State savings
associations as well as State nonmember
banks and foreign banks having insured
branches are all subject to part 365. It
also rescinds and removes from the
FDIC’s regulations part 365, subpart B.
The final rule will not create any new
or revise any existing collections of
information under the PRA. Therefore,
no information collection request has
been submitted to the OMB for review.
B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
requires that, in connection with a final
rule, an agency prepare a final
regulatory flexibility analysis that
describes the impact of the proposed
rule on small entities.17 However, a
regulatory flexibility analysis is not
required if the agency certifies that the
rule will not have a significant
economic impact on a substantial
number of small entities, and publishes
its certification and a short explanatory
statement in the Federal Register
together with the rule. The Small
Business Administration (SBA) has
defined ‘‘small entities’’ to include
banking organizations with total assets
of less than or equal to $550 million.18
For the reasons provided below, the
FDIC certifies that the rule would not
have a significant economic impact on
a substantial number of small banking
organizations. Accordingly, a regulatory
flexibility analysis is not required.
As of December 31, 2018, the FDIC
supervised 3,489 insured financial
institutions, of which 2,674 are
considered small banking organizations
for the purposes of the RFA. The rule
primarily affects regulations that govern
State savings associations. There are 36
State savings associations considered to
be small banking organizations for the
purposes of the RFA.19
As explained previously, the rule
would remove sections 390.260,
390.261, 390.262, 390.263, 390.264,
390.265, 390.266, 390.267, 390.268,
390.269, 390.270, 390.271, and 390.272
of part 390, subpart P because these
sections are unnecessary, redundant of,
or otherwise duplicative of other FDIC
regulations for safety and soundness
standards. Because these regulations are
redundant to existing regulations,
rescinding them would not have any
substantive effects on small FDIC-
supervised institutions.
As explained previously, part 364
covers State savings associations in
section 364.101 and in appendix A.
Because the lending documentation
practices and standards in part 364,
appendix A are substantively similar to
existing regulations for State savings
associations found in section 390.271,
rescinding section 390.271 and the rest
of part 390, subpart P would not have
any substantive effects on small FDIC-
supervised institutions.
As stated previously, the rule would
amend part 365, subpart A so that it
would expressly apply to State savings
associations. Because the real estate
lending requirements in sections 365.1
and 365.2 and part 364, appendix A are
substantively identical to currently
applicable regulations for State savings
associations found in 390.264 and
390.265 (including the appendix to
section 390.265), amending part 365,
subpart A so that it would apply to all
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khammond on DSKBBV9HB2PROD with RULES
12 See id. at 1658.
13 The S.A.F.E. Act was enacted as part of the
Housing and Economic Recovery Act of 2008,
Public Law 110–289, 122 Stat. 2654, sections 1501–
17 (codified at 12 U.S.C. 5101–16) as amended by
Title X of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) (Pub. L.
111–203, 124 Stat. 1376). The S.A.F.E. Act requires
residential mortgage loan originators employed by
depository institutions, subsidiaries that are owned
and controlled by a depository institution and
regulated by a Federal banking agency, institutions
regulated by the National Credit Union
Administration, and institutions regulated by the
Farm Credit Administration to register with the
Nationwide Mortgage Licensing System and
Registry, obtain a unique identifier, and maintain
such registration.
14 See 84 FR 1658–59.
15 12 U.S.C. 1813(q).
16 44 U.S.C. 3501–3521.
17 5 U.S.C. 601, et seq.
18 The SBA defines a small banking organization
as having $550 million or less in assets, where ‘‘a
financial institution’s assets are determined by
averaging the assets reported on its four quarterly
financial statements for the preceding year.’’ See 13
CFR 121.201 (as amended, effective December 2,
2014). ‘‘SBA counts the receipts, employees, or
other measure of size of the concern whose size is
at issue and all of its domestic and foreign
affiliates. . . .’’ See 13 CFR 121.103. Following
these regulations, the FDIC uses a covered entity’s
affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the
FDIC-supervised institution is ‘‘small’’ for the
purposes of the RFA.
19 FDIC Call Report, December 31, 2018.
supervisory authority for State savings
associations from the former OTS to the
FDIC by amending certain parts of part
365 of the FDIC’s regulations to clarify
that part 365, subpart A applies to all
insured depository institutions,
including State savings associations, for
which the FDIC is the appropriate
Federal banking agency.12
C. Removal of Part 365, Subpart B,
Registration of Residential Mortgage
Loan Originators
Finally, the FDIC proposed to rescind
subpart B of part 365, which relates to
registration requirements for residential
mortgage loan originators, due to the
Bureau’s issuance of its 13 regulation,
Regulation G, pursuant to the Bureau’s
authority under the Dodd-Frank Act. In
light of the Bureau’s action, the FDIC
considered the provisions contained in
part 365, subpart B to be unnecessary,
redundant, or otherwise duplicative of
the Bureau regulation governing this
area.14
III. Comments
The FDIC issued the NPR with a 60-
day comment period, which closed on
April 8, 2019. The FDIC received no
comments on the NPR, and
consequently the final rule is adopted
without change.
IV. Explanation of the Final Rule
As discussed in the NPR, 12 CFR part
390, subpart P is being rescinded in its
entirety because other existing FDIC
regulations concerning permissible
activities, safety and soundness
standards, and real estate lending
standards replicate the current
requirements of part 390, subpart P.
To clarify that part 365 applies to all
institutions for which the FDIC is the
appropriate Federal banking agency, the
FDIC is amending sections 365.1 and
365.2 of part 365 to replace the phrases
‘‘insured state nonmember banks
(including state-licensed insured
branches of foreign banks)’’ and ‘‘state
nonmember bank’’ throughout subpart
A with the phrase ‘‘FDIC-supervised
institution.’’ In addition, section 365.1
is being revised to add the definition of
the term ‘‘FDIC-supervised institution’’
to mean any insured depository
institution for which the FDIC is the
appropriate Federal banking agency
pursuant to section 3(q) of the FDI
Act.15
Finally, because the Dodd-Frank Act
amended the S.A.F.E. Act, transferring
Federal registration requirements for
mortgage loan originators from the
S.A.F.E. Act Agencies (including the
FDIC) to the Bureau, and the Bureau has
finalized its Regulation G, the FDIC is
rescinding part 365, subpart B, in its
entirety, because it is outdated and no
longer necessary.
V. Administrative Law Matters
A. Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(PRA),16 the FDIC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number.
The final rule rescinds and removes
from FDIC regulations part 390, subpart
P. With regard to part 365, subpart A,
the final rule amends sections 365.1 and
365.2 to clarify that State savings
associations as well as State nonmember
banks and foreign banks having insured
branches are all subject to part 365. It
also rescinds and removes from the
FDIC’s regulations part 365, subpart B.
The final rule will not create any new
or revise any existing collections of
information under the PRA. Therefore,
no information collection request has
been submitted to the OMB for review.
B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
requires that, in connection with a final
rule, an agency prepare a final
regulatory flexibility analysis that
describes the impact of the proposed
rule on small entities.17 However, a
regulatory flexibility analysis is not
required if the agency certifies that the
rule will not have a significant
economic impact on a substantial
number of small entities, and publishes
its certification and a short explanatory
statement in the Federal Register
together with the rule. The Small
Business Administration (SBA) has
defined ‘‘small entities’’ to include
banking organizations with total assets
of less than or equal to $550 million.18
For the reasons provided below, the
FDIC certifies that the rule would not
have a significant economic impact on
a substantial number of small banking
organizations. Accordingly, a regulatory
flexibility analysis is not required.
As of December 31, 2018, the FDIC
supervised 3,489 insured financial
institutions, of which 2,674 are
considered small banking organizations
for the purposes of the RFA. The rule
primarily affects regulations that govern
State savings associations. There are 36
State savings associations considered to
be small banking organizations for the
purposes of the RFA.19
As explained previously, the rule
would remove sections 390.260,
390.261, 390.262, 390.263, 390.264,
390.265, 390.266, 390.267, 390.268,
390.269, 390.270, 390.271, and 390.272
of part 390, subpart P because these
sections are unnecessary, redundant of,
or otherwise duplicative of other FDIC
regulations for safety and soundness
standards. Because these regulations are
redundant to existing regulations,
rescinding them would not have any
substantive effects on small FDIC-
supervised institutions.
As explained previously, part 364
covers State savings associations in
section 364.101 and in appendix A.
Because the lending documentation
practices and standards in part 364,
appendix A are substantively similar to
existing regulations for State savings
associations found in section 390.271,
rescinding section 390.271 and the rest
of part 390, subpart P would not have
any substantive effects on small FDIC-
supervised institutions.
As stated previously, the rule would
amend part 365, subpart A so that it
would expressly apply to State savings
associations. Because the real estate
lending requirements in sections 365.1
and 365.2 and part 364, appendix A are
substantively identical to currently
applicable regulations for State savings
associations found in 390.264 and
390.265 (including the appendix to
section 390.265), amending part 365,
subpart A so that it would apply to all
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