Credit Risk Retention–Notification of Commencement of Review; Extension of Review Period

Agency: "Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); U.S. Securities and Exchange Commission (Commission); Federal Housing Finance Agency (FHFA); and Department of Housing and Urban Development (HUD)."

SUMMARY: The OCC, Board, FDIC, Commission, FHFA, and HUD (the agencies) are providing notice of the extension of the period for the review, and publication of determination of the review, of the definition of qualified residential mortgage; the community-focused residential mortgage exemption; and the exemption for qualifying three-to-four unit residential mortgage loans, in each case as currently set forth in the Credit Risk Retention Regulations (as defined below) as adopted by the agencies.

DATES:

The period for completion of the review of the subject residential mortgage provisions and publication of notice disclosing determination of this review is extended until June 20, 2021.

FOR FURTHER INFORMATION CONTACT:

OCC: Daniel Borman, Senior Attorney, (202) 649-6929 or, for persons who are deaf or hearing impaired, TTY, (202) 649-5597, Chief Counsel's Office; Ajay Palvia, (202) 649-5505, Senior Financial Economist, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219.

Board: Flora H. Ahn, Special Counsel, (202) 452-2317, David W. Alexander, Senior Counsel, (202) 452-287, or Matthew D. Suntag, Senior Counsel, (202) 452-3694, Legal Division; Donald N. Gabbai, Lead Financial Institutions Policy Analyst, Division of Supervision and Regulation, (202) 452-3358; Karen Pence, Assistant Director, Division of Research & Statistics, (202) 452-2342; Nikita Pastor, Senior Counsel, Division of Consumer & Community Affairs, (202) 452-3692; Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551.

FDIC: Rae-Ann Miller, Associate Director, (202) 898-3898; Kathleen M. Russo, Counsel, (703) 562-2071, [email protected]; or Phillip E. Sloan, Counsel, (703) 562-6137, [email protected], Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

Commission: Arthur Sandel, Special Counsel; Kayla Roberts, Special Counsel; Katherine Hsu, Chief, (202) 551-3850, in the Office of Structured Finance, Division of Corporation Finance; or Chandler Lutz, Economist, (202) 551-6600, in the Office of Risk Analysis, Division of Economic and Risk Analysis, U.S. Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549.

FHFA: Ron Sugarman, Principal Policy Analyst, Office of Financial Analysis, Modeling and Simulations, (202) 649-3208, [email protected], or Peggy K. Balsawer, Associate General Counsel, Office of General Counsel, (202) 649-3060, [email protected], Federal Housing Finance Agency, Constitution Center, 400 7th Street SW, Washington, DC 20219. The telephone number for the Telecommunications Device for the Deaf is (800) 877-8339.

HUD: Keith Becker, Deputy Assistant Secretary for Risk Management & Regulatory Affairs, U.S. Department of Housing & Urban Development, 451 7th Street SW, Washington, DC 20410; telephone number (202) 402-3722 (this is not a toll-free number). Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Relay at (800) 877-8339.

SUPPLEMENTARY INFORMATION: The credit risk retention regulations are codified at 12 CFR part 43; 12 CFR part 244; 12 CFR part 373; 17 CFR part 246; 12 CFR part 1234; and 24 CFR part 267 (the Credit Risk Retention Regulations). The Credit Risk Retention Regulations require the OCC, Board, FDIC, and Commission, in consultation with the FHFA and HUD, to commence, and give notice of commencement of, a review of the following provisions of the Credit Risk Retention Regulations no later than December 24, 2019: (1) The definition of qualified residential mortgage (QRM) in section _.13 of the Credit Risk Retention Regulations; (2) the community-focused residential mortgage exemption in section _.19(f) of the Credit Risk Retention Regulations; and (3) the exemption for qualifying three-to-four unit residential mortgage loans in section _.19(g) of the Credit Risk Retention Regulations (collectively, the "subject residential mortgage provisions"). The Credit Risk Retention Regulations also require that, after completion of this review, but no later than six months after publication of a notification announcing the review, unless extended by the agencies, the agencies publish a notification disclosing the determination of their review. Notification of the commencement of the review was published in the Federal Register on December 20, 2019 (84 FR 70073).

This notification is being published to give notice that, due to various factors considered among the agencies, including market and other disruptions precipitated by COVID-19, the agencies have determined to extend the period for completion of their review of the subject residential mortgage provisions and publication of notice disclosing determination of this review until June 20, 2021.

Brian P. Brooks,

Acting 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.

Ann E. Misback,

Secretary of the Board.

Federal Deposit Insurance Corporation.

By order of the Board of Directors.

Dated at Washington, DC, on June 19, 2020.

James P. Sheesley,

Acting Assistant Executive Secretary.

Dated: June 19, 2020.

By the Securities and Exchange Commission.

Vanessa A. Countryman,

Secretary.

Mark A. Calabria,

Director, Federal Housing Finance Agency.

By the Department of Housing and Urban Development.

Len Wolfson,

Acting Assistant Secretary for Housing--Federal Housing Commissioner.

Notification of commencement of review; extension of review period.

CFR Part: "12 CFR Part 43"; "12 CFR Part 244"; "12 CFR Part 373"; "12 CFR Part 1234"; "17 CFR Part 246"; "24 CFR Part 267"

RIN Number: "RIN 3064-ZA07"

Citation: "85 FR 39099"

Document Number: "Docket No. OCC-2019-0012"; "Docket No. OP-1688"; "Notice No. 2019-N-7"; "Release No. 34-89100"; "FR-6172-N-02"

Federal Register Page Number: "39099"

"Proposed Rules"