Unknown. Final regulation

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2011-02-10.xml --- 76 28 Thursday, February 10, 2011 Contents Agriculture Agriculture Department See Forest Service Coast Guard Coast Guard PROPOSED RULES Safety Zones: Mississippi River, Mile 842.0 to 839.5, 7515-7518 2011-2860 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 7531-7532 2011-2905 2011-2906 Copyright Royalty Board Copyright Royalty Board NOTICES Distribution of 2000, 2001, 2002, and 2003 Cable Royalty Funds, 7590-7591 2011-2940 Defense Department Defense Department PROPOSED RULES Federal Acquisition Regulations:

Enhancing Contract Transparency, 7522-7526 2011-2900 Education Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 7549-7550 2011-3011 Meetings: Advisory Committee on Student Financial Assistance, 7551 2011-3030 President's Board of Advisors on Historically Black Colleges and Universities, 7550-7551 2011-3016 Election Election Assistance Commission NOTICES Meetings; Sunshine Act, 7551-7552 2011-3137 Employment and Training Employment and Training Administration NOTICES Affirmative Determinations Regarding Applications for Reconsideration:

Matthews International Corp., Bronze Division, Kingwood, WV, 7584-7585 2011-2965 Amended Certifications Regarding Eligibility To Apply for Worker Adjustment Assistance: General Motors Corp., Milford Proving Grounds, et al., Milford, MI, 7585 2011-2968 Determinations Regarding Eligibility to Apply for Worker Adjustment Assistance, 7585-7588 2011-2964 Investigations Regarding Certifications of Eligibility to Apply for Worker Adjustment Assistance, 7588-7589 2011-2963 Negative Determinations Regarding Application for Reconsideration:

Bob Evans Farms, Inc., Galva, IL, 7589-7590 2011-2966 Revised Determinations on Reconsideration: Bruss North America, Russell Springs, KY, 7590 2011-2967 Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency PROPOSED RULES Outer Continental Shelf Air Regulations Consistency Update for Alaska, 7518-7522 2011-3004 NOTICES Access in Litigation to Confidential Business Information: Transfer of Information to the United States Department of Justice and Parties to Certain Litigation, 7559-7560 2011-2991 Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Transportation Conformity Determinations for Federally Funded and Approved Transportation Plans, Programs and Projects, 7560-7562 2011-3002 Equal Equal Employment Opportunity Commission NOTICES Meetings; Sunshine Act, 7562 2011-3124 Executive Office of the President See Science and Technology Policy Office Federal Aviation Federal Aviation Administration RULES Operations Specifications, 7482-7491 2011-2834 PROPOSED RULES Airworthiness Directives:

Boeing Co. Model 747-400 and -400F Series Airplane, 7513-7515 2011-2952 Empresa Brasileira de Aeronautica S.A. Model ERJ 170 Airplanes; and Model ERJ 190-100 STD, ERJ 190-100 LR, ERJ 190-100 IGW, ERJ 190-200 STD, ERJ 190-200 LR, and ERJ 190-200 IGW Airplanes, 7511-7513 2011-2926 Establishment of Class E Airspace: Kenbridge, VA; Withdrawal, 7515 2011-2986 Federal Communications Federal Communications Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 7562-7567 2011-2954 2011-2955 2011-2956 2011-2957 2011-2958 2011-3022 Federal Deposit Federal Deposit Insurance Corporation NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 7567-7568 2011-2901 Federal Emergency Federal Emergency Management Agency RULES National Flood Insurance Program, Policy Wording Correction, 7508-7510 2011-2942 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Participation in the National Flood Insurance Program, 7576 2011-3015 Debt Collection Financial Statement, 7577 2011-3020 Exemption of State-Owned Properties Under Self-Insurance Plan, 7575-7576 2011-3028 Federal Energy Federal Energy Regulatory Commission NOTICES Applications:

Charles River Energy LLC, 7552 2011-2946 Baseline Filings: DCP Guadalupe Pipeline, LLC, 7552-7553 2011-2945 Combined Filings, 7553-7558 2011-2935 2011-2936 2011-2937 2011-2938 Filings: Enogex, LLC, 7558 2011-2811 Initial Market-Based Rate Filings Including Requests For Blanket Section 204 Authorization: GBC Metals LLC, 7558-7559 2011-2939 Technical Conferences: Tennessee Gas Pipeline Co., 7559 2011-2934 Federal Highway Federal Highway Administration NOTICES Environmental Impact Statements;

Availability, etc.: Seattle Ferry Terminal (Colman Dock) in Seattle, WA; Rescinded, 7623 2011-2830 Federal Housing Finance Agency Federal Housing Finance Agency RULES Office of the Ombudsman, 7479-7482 2011-2845 Federal Housing Finance Board Federal Housing Finance Board RULES Office of the Ombudsman, 7479-7482 2011-2845 Federal Mine Federal Mine Safety and Health Review Commission NOTICES Meetings; Sunshine Act, 7568 2011-3087 2011-3088 Federal Motor Federal Motor Carrier Safety Administration NOTICES Applications for Exemptions from Innovative Electronics:

Parts and Accessories Necessary for Safe Operation; Brakes, 7623-7625 2011-2985 Qualification of Drivers; Exemption Applications; Diabetes Mellitus, 7625-7627 2011-2984 Federal Railroad Federal Railroad Administration NOTICES Petitions for Waivers of Compliance: Association of American Railroads, 7627-7628 2011-2921 Denton County Transportation Authority, 7628-7629 2011-2920 Federal Reserve Federal Reserve System NOTICES Changes in Bank Control: Acquisitions of Shares of a Bank or Bank Holding Company, 7568 2011-2953 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Wildlife and Plants: 12-Month Finding on Petition to List Pacific Walrus as Endangered or Threatened, 7634-7679 2011-2400 90-Day Finding on a Petition To Revise Critical Habitat for Vernal Pool Fairy and Tadpole Shrimp, 7528-7530 2011-2882 NOTICES Endangered and Threatened Species Permit Applications, 7577-7579 2011-3021 Meetings:

Coral Reef Task Force, 7579 2011-3014 Sport Fishing and Boating Partnership Council, 7579-7580 2011-3017 Permit Applications: Endangered Species, Marine Mammals, 7580-7581 2011-3029 Forest Forest Service NOTICES Meetings: Lake County Resource Advisory Committee, 7531 2011-2801 Yavapai County Resource Advisory Committee, 7531 2011-3019 General Services General Services Administration PROPOSED RULES Federal Acquisition Regulations: Enhancing Contract Transparency, 7522-7526 2011-2900 Health and Human Health and Human Services Department See National Institutes of Health NOTICES Findings of Research Misconduct, 7568-7569 2011-2975 Meetings:

Presidential Commission for the Study of Bioethical Issues, 7569-7570 2011-3023 Technical Advisory Panel on Medicare Trustee Reports, 7569 2011-3009 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency Indian Affairs Indian Affairs Bureau RULES Indian Trust Management Reform; Implementation of Statutory Changes, 7500-7508 2011-2896 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau RULES Indian Trust Management Reform;

Implementation of Statutory Changes, 7500-7508 2011-2896 International Trade Adm International Trade Administration RULES Certification of Factual Information During Antidumping and Countervailing Duty Proceedings, 7491-7500 2011-2761 NOTICES Extension of Preliminary Results of Antidumping Duty Administrative Review: Certain Polyester Staple Fiber from the People's Republic of China, 7532 2011-3010 Final Results of Antidumping Duty Administrative Review: 1-Hydroxyethylidene-1, 1-Diphosphonic Acid from India, 7532-7534 2011-3018 Final Results of the Expedited Sunset Review of the Antidumping Duty Order:

Porcelain-on-Steel Cooking Ware from the People's Republic of China, 7534 2011-3008 Preliminary Results of Antidumping Duty Administrative Review and Intent to Rescind Review in Part: Wooden Bedroom Furniture from the People's Republic of China, 7534-7546 2011-3024 Rescission of Countervailing Duty Administrative Review: Certain Hot-Rolled Carbon Steel Flat Products from Brazil, 7546 2011-3007 International Trade Com International Trade Commission NOTICES Complaints: Certain Digital Televisions and Components Thereof, 7583 2011-2962 Certain Electronics Devices Having a Blu-Ray Disc Player and Components Thereof, 7582-7583 2011-2961 Meetings;

Sunshine Act, 7583-7584 2011-3033 Terminations of Investigations: Certain Video Displays, Components Thereof and Products Containing Same, 7584 2011-2960 Labor Department Labor Department See Employment and Training Administration Land Land Management Bureau NOTICES Environmental Impact Statements; Availability, etc.: Pony Express Resource Management Plan Amendment/Mona to Oquirrh Transmission Corridor, 7581-7582 2011-2993 Library Library of Congress See Copyright Royalty Board Mine Safety and Health Federal Review Commission See Federal Mine Safety and Health Review Commission NASA National Aeronautics and Space Administration PROPOSED RULES Federal Acquisition Regulations:

Enhancing Contract Transparency, 7522-7526 2011-2900 Major System Acquisition: Earned Value Management, 7526-7527 2011-2756 National Archives National Archives and Records Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 7591 2011-3045 National Institute National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Loan Repayment Programs, 7570-7571 2011-2995 Meetings:

Center for Scientific Review, 7572, 7574-7575 2011-2990 2011-2998 National Cancer Institute, 7575 2011-2992 National Institute of Allergy and Infectious Diseases, 7573 2011-2999 National Institute of Environmental Health Sciences, 2011-2996 7572-7574 2011-3001 National Institute of General Medical Sciences, 7573 2011-2997 National Institute on Drug Abuse, 7571-7572, 7575 2011-2988 2011-2994 National Oceanic National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Prohibited Species Donation Program, 7546-7547 2011-2911 Meetings: Atlantic Highly Migratory Species Advisory Panel, 7547 2011-2987 New England Fishery Management Council, 7548 2011-2929 Taking and Importing Marine Mammals: Precision Strike Weapons Testing and Training by Eglin Air Force Base in the Gulf of Mexico, 7548-7549 2011-2980 National Science National Science Foundation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 7591-7592 2011-2976 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Decisions:

Entergy Nuclear Vermont Yankee, LLC and Entergy Nuclear Operations, Inc., 7592-7593 2011-3026 Science Technology Science and Technology Policy Office NOTICES Meetings: Presidents Council of Advisors on Science and Technology, 7593-7594 2011-3039 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 2011-2931 7594-7596 2011-2932 2011-2933 2011-2930 Self-Regulatory Organizations; Proposed Rule Changes:

C2 Options Exchange, Inc, 7597-7601 2011-2972 2011-2973 Chicago Board Options Exchange, Inc., 7601-7602, 7610-7616 2011-2949 2011-2970 2011-2971 EDGA Exchange, Inc., 7608-7610, 7616-7619 2011-2923 2011-2969 EDGX Exchange, Inc., 7607-7608, 7620-7622 2011-2924 2011-2950 NASDAQ OMX PHLX LLC, 7619-7620 2011-2951 NASDAQ Stock Market LLC, 7602-7604 2011-2927 National Stock Exchange, Inc., 7604-7607 2011-2925 Small Business Small Business Administration NOTICES Disaster Declarations:

California, 7622-7623 2011-2979 Maine, 7622 2011-2977 State Department State Department NOTICES Performance Review Board Members, 7623 2011-3006 Thrift Supervision Thrift Supervision Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Interagency Charter and Federal Deposit Insurance Application, 7630 2011-2943 Interagency Notice of Change in Control, 7629-7630 2011-2941 Meetings: OTS Minority Depository Institutions Advisory Committee, 7630-7631 2011-2944 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Federal Railroad Administration Treasury Treasury Department See Thrift Supervision Office NOTICES Meetings:

President's Council on Jobs and Competitiveness, 7629 2011-3048 Separate Parts In This Issue Part II Interior Department, Fish and Wildlife Service, 7634-7679 2011-2400 Reader Aids Consult the Reader Aids section at the end of this page for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 76 28 Thursday, February 10, 2011 Rules and Regulations FEDERAL HOUSING FINANCE BOARD 12 CFR Part 907 FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1213 RIN 2590-AA20 Office of the Ombudsman AGENCIES:

Federal Housing Finance Board; Federal Housing Finance Agency. ACTION: Final regulation. SUMMARY: The Federal Housing Finance Agency

(FHFA)is adopting a final regulation that establishes an Office of the Ombudsman, which is responsible for considering complaints and appeals from the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Banks (collectively, regulated entities), the Federal Home Loan Bank System's Office of Finance, and any person that has a business relationship with a regulated entity or the Office of Finance, regarding any matter relating to the regulation and supervision of the regulated entities or the Office of Finance by FHFA. DATES: *Effective Date:* March 14, 2011. FOR FURTHER INFORMATION CONTACT: Sandy Comenetz, Executive Advisor to the Acting Director,

(202)414-3771, or Andra Grossman, Senior Counsel,

(202)343-1313 (not toll-free numbers), Federal Housing Finance Agency, Fourth Floor, 1700 G Street, NW., Washington, DC 20552. The telephone number for the Telecommunications Device for the Deaf is

(800)877-8339. SUPPLEMENTARY INFORMATION: I. Background The Housing and Economic Recovery Act of 2008 (HERA), Public Law 110-289, 122 Stat. 2654 (2008), amended the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 *et seq.* ) (Safety and Soundness Act) to establish FHFA as an independent agency of the Federal Government. 1 FHFA was established to oversee the prudential operations of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, Enterprises), and the Federal Home Loan Banks (FHLBanks); and to ensure that they operate in a safe and sound manner; remain adequately capitalized; foster liquid, efficient, competitive and resilient national housing finance markets; comply with the Safety and Soundness Act and their respective authorizing statutes, as well as all rules, regulations, guidelines, and orders and carry out their missions through activities that are authorized by their respective statutes and are consistent with the public interest. FHFA also has regulatory authority over the FHLBank System's Office of Finance under section 1311(b)(2) of the Safety and Soundness Act (12 U.S.C. 4511(b)(2)). 1 *See* Division A, “Federal Housing Finance Regulatory Reform Act of 2008,” Title I, Section 1101 of HERA. Section 1105(e) of HERA amended section 1317(i) of the Safety and Soundness Act (12 U.S.C. 4517(i)) to require the Director of FHFA to establish, by regulation, an Office of the Ombudsman (Office). The Office must be headed by an Ombudsman who will consider complaints and appeals from any regulated entity and any person that has a business relationship with a regulated entity regarding any matter relating to the regulation and supervision of such regulated entity. The regulation must specify the authority and duties of the Office. On August 6, 2010, FHFA published for comment a proposed regulation to establish an Office of the Ombudsman at FHFA. 2 The proposed regulation set forth the authority and duties of the Office, and included provisions concerning retaliation and confidentiality. 2 74 FR 47495. FHFA received comment letters from Fannie Mae; Freddie Mac; the FHLBanks of Des Moines, Pittsburgh, Seattle, and Topeka; and Wells Fargo Home Mortgage. All comments were considered and have been posted on the FHFA Web site at *http://www.fhfa.gov.* A discussion of significant comments as they relate to the final regulation follows. II. Final Regulation Specific concerns raised by commenters are described and addressed below. After considering the comments, FHFA adopts a final regulation implementing section 1317(i) of the Safety and Soundness Act as amended by section 1105(e) of HERA to establish an FHFA Office of the Ombudsman. Scope of Ombudsman's Authority Several commenters requested that the final regulation clarify that the following types of matters—business decisions of the regulated entities, disputes between the regulated entities or the Office of Finance and vendors, and matters in litigation—are not within the scope of the Office's responsibilities. They requested that the Ombudsman's authority be expressly limited to complaints concerning FHFA's regulatory and supervisory activities. FHFA's view is that business decisions of the regulated entities, and disputes between the regulated entities or the Office of Finance and vendors may relate to the regulation and supervision of the regulated entities. It is the Ombudsman's responsibility to consider the facts of each case to determine whether the matter is appropriate for consideration. Accordingly, there is no need for clarifying language. As to the requested language about matters in litigation, FHFA agrees, and the final regulation specifically provides that the Ombudsman will not consider matters in litigation, arbitration, or mediation. Several commenters requested that the final regulation permit appeals of non-final decisions or conclusions, and also in situations where there is an existing avenue or another forum for appeal. FHFA declines to allow appeals to the Ombudsman in such circumstances on the grounds that to do so would be inefficient and would lead to confusion as to the status of the respective appeals. One commenter requested that the regulation authorize the Ombudsman to

(i)Engage in a collaborative dialogue with the person that has a business relationship with the regulated entity,

(ii)revise a requirement of the regulated entities, and

(iii)revise an interpretation of the regulated entities. Engaging in a collaborative dialogue as a facilitator or mediator is the essence of the Ombudsman's role and does not need further clarification. In contrast, revising a requirement of a regulated entity or an interpretation of a regulated entity's charter does not come within the Ombudsman's authority because the Ombudsman is not a decision maker. However, as with any complaint or appeal, where a supervisory or regulatory requirement or a charter interpretation is challenged, the Ombudsman is authorized to conduct inquiries and submit findings of fact and make a recommendation to the Director concerning resolution of the issue. Accordingly, FHFA concludes there is no need for further clarification of these issues. Definitions *Business Relationship.* In the proposed regulation “business relationship” means a relationship or potential relationship between a person and a regulated entity or the Office of Finance that involves the provision of goods or services, but does not mean a relationship between a mortgagor and a regulated entity that directly or indirectly owns, purchased, guarantees, or sold the mortgage. Several commenters requested that the definition exclude “potential relationships” because including them would, in their terms, exponentially increase the universe of persons to whom the regulation would apply. They noted that the operative provision, 12 U.S.C. 4517(i), does not use the word “potential.” FHFA will not make the change because, like existing business relationships, a potential business relationship may relate to FHFA's regulation and supervision of a regulated entity. FHFA has made a technical revision to the definition of the term “business relationship,” by substituting the term “interaction” for “relationship” in the body of the definition. *Person.* In the proposed regulation, “person” means an organization, business entity, or individual that has a business relationship with a regulated entity or the Office of Finance or that represents directly or indirectly the interests of a person that has a business relationship with a regulated entity or the Office of Finance. It does not mean an individual borrower. Some commenters requested that the definition expressly exclude employees to clarify that a dispute between a regulated entity or the Office of Finance and an employee would not come within the Ombudsman's purview. The commenters' rationale is that there are other forums for such disputes, namely State or Federal court. As the Ombudsman evaluates the facts of each case to determine whether the matter is appropriate for consideration, FHFA's view is that adding the requested language is unnecessary and could lead to confusion as to whether employees may complain about FHFA policies that affect them. The same commenters requested that the Ombudsman be required to notify a regulated entity of any whistleblower complaint in which the entity is named so that the entity will be able to address the matter quickly. FHFA is not required to provide such notification under applicable law, but will do so as it deems appropriate under the circumstances. No additional language will be added to the final regulation. Reviews of Disputed Supervisory Determinations One commenter asked whether the Office is intended to replace the process under 12 CFR 907.9 by which FHLBanks may seek review of a disputed supervisory determination, or whether it is intended to be an alternate path of appeal. The answer is that the Ombudsman's responsibility to consider complaints and appeals from regulated entities replaces the § 907.9 process. All of the regulated entities and the Office of Finance may submit appeals of final supervisory determinations to the Ombudsman for consideration. The Ombudsman will conduct an inquiry and submit findings of fact and a recommendation to the Director concerning resolution of the case. Consequently, 12 CFR 907.9 will be removed on the effective date of this part. No Retaliation Proposed § 1213.6 provides that neither FHFA nor any FHFA employee may retaliate against a regulated entity, the Office of Finance, or a person for submitting a complaint or appeal. As proposed, the Ombudsman would receive and address complaints of retaliation and upon completion of an investigation, report the findings to the Director with recommendations, including a recommendation to take disciplinary action against any FHFA employee found to have retaliated. FHFA did not receive comments from the public on the proposed section. However, subsequent to publication of the proposed rule, the FHFA Inspector General was appointed and confirmed. Accordingly, FHFA has revised § 1213.6 to provide that the Ombudsman, in coordination with the Inspector General, is to examine the basis of the alleged retaliation. At the completion of the examination, the Ombudsman is to report the findings to the Director with recommendations, including any recommendation to take disciplinary action against any FHFA employee found to have retaliated. Confidentiality One commenter requested that § 1213.7 of the final regulation permit parties to request that their identity or specific information remain confidential. The final regulation, as does the proposed regulation, requires the Ombudsman to ensure that safeguards exist to preserve confidentiality, and prohibits the Ombudsman from disclosing information, including a party's identity, provided by a party except to appropriate reviewing or investigating officials or if disclosure is required by law. The final regulation clarifies that an appropriate investigating official may include the Inspector General. Differences Between the FHLBanks and the Enterprises Section 1313(f) of the Safety and Soundness Act (12 U.S.C. 4513(f)), as amended by section 1201 of HERA, requires the Director, when promulgating regulations relating to the FHLBanks, to consider the differences between the FHLBanks and the Enterprises with respect to the FHLBanks' cooperative ownership structure, mission of providing liquidity to members, affordable housing and community development mission, capital structure, and joint and several liability. The Director may also consider any other differences that are deemed appropriate. The Director considered the differences between the FHLBanks and the Enterprises as they relate to the above factors and concluded that none of the unique factors relating to the FHLBanks warranted establishing different treatment under the final regulation. III. Regulatory Impact Paperwork Reduction Act The final regulation does not contain any information collection requirement that requires the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501 *et seq.* ). Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ) requires that a regulation that has a significant economic impact on a substantial number of small entities, small businesses, or small organizations must include an initial regulatory flexibility analysis describing the regulation's impact on small entities. Such an analysis need not be undertaken if the agency has certified that the regulation will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 605(b). FHFA has considered the impact of the final regulation under the Regulatory Flexibility Act. FHFA certifies that the final regulation is not likely to have a significant economic impact on a substantial number of small entities for purposes of the Regulatory Flexibility Act. List of Subjects 12 CFR Part 907 Administrative practice and procedure, Federal home loan banks. 12 CFR Part 1213 Administrative practice and procedure, Federal home loan banks, Government-sponsored enterprises. Authority and Issuance Accordingly, for the reasons stated in the preamble, under the authority of 12 U.S.C. 4511(b)(2), 4517(i), and 4526, the Federal Housing Finance Agency amends Chapters IX and XII of Title 12, Code of Federal Regulations as follows: CHAPTER IX—FEDERAL HOUSING FINANCE BOARD PART 907—PROCEDURES 1. The authority citation for part 907 continues to read as follows: Authority: 12 U.S.C. 1422b(a)(1). § 907.9 [Removed and reserved] 2. Remove and reserve § 907.9. CHAPTER XII—FEDERAL HOUSING FINANCE AGENCY SUBCHAPTER A—ORGANIZATION AND OPERATIONS 3. Add part 1213 to subchapter A to read as follows: PART 1213—OFFICE OF THE OMBUDSMAN Sec. 1213.1 Purpose and scope. 1213.2 Definitions. 1213.3 Authorities and duties of the Ombudsman. 1213.4 Complaints and appeals from a regulated entity or the Office of Finance. 1213.5 Complaints from a person. 1213.6 No retaliation. 1213.7 Confidentiality. Authority: 12 U.S.C. 4511(b)(2), 4517(i), and 4526. § 1213.1 Purpose and scope.

(a)*Purpose.* The purpose of this part is to establish within FHFA the Office of the Ombudsman (Office) under section 1317(i) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517(i)), as amended, and to set forth the authorities and duties of the Ombudsman.

(b)*Scope.* —(1) This part applies to complaints and appeals from any regulated entity and any person that has a business relationship with a regulated entity regarding any matter relating to the regulation and supervision of such regulated entity or the Office of Finance by FHFA.

(2)The establishment of the Office does not alter or limit any other right or procedure associated with appeals, complaints, or administrative matters submitted by a person regarding any matter relating to the regulation and supervision of a regulated entity or the Office of Finance under any other law or regulation. § 1213.2 Definitions. For purposes of this part, the term: *Business relationship* means any existing or potential interaction between a person and a regulated entity or the Office of Finance for the provision of goods or services. The term *business relationship* does not include any interaction between a mortgagor and a regulated entity that directly or indirectly owns, purchased, guarantees, or sold the mortgage. *Director* means the Director of FHFA or his or her designee. *FHFA* means the Federal Housing Finance Agency. *Office of Finance* means the Office of Finance of the Federal Home Loan Bank System. *Person* means an organization, business entity, or individual that has a business relationship with a regulated entity or the Office of Finance, or that represents the interests of a person that has a business relationship with a regulated entity or the Office of Finance. The term *person* does not include an individual borrower. *Regulated entity* means the Federal National Mortgage Association and any affiliate, the Federal Home Loan Mortgage Corporation and any affiliate, and any Federal Home Loan Bank. § 1213.3 Authorities and duties of the Ombudsman.

(a)*General.* The Office shall be headed by an Ombudsman, who shall consider complaints and appeals from any regulated entity, the Office of Finance, and any person that has a business relationship with a regulated entity or the Office of Finance regarding any matter relating to the regulation and supervision of such regulated entity or the Office of Finance by FHFA. In considering any complaint or appeal under this part, the Ombudsman shall:

(1)Conduct inquiries and submit findings of fact and recommendations to the Director concerning resolution of the complaint or appeal, and

(2)Act as a facilitator or mediator to advance the resolution of the complaint or appeal.

(b)*Other duties.* The Ombudsman shall:

(1)Establish procedures for carrying out the functions of the Office,

(2)Establish and publish procedures for receiving and considering complaints and appeals, and

(3)Report annually to the Director on the activities of the Office, or more frequently, as determined by the Director. § 1213.4 Complaints and appeals from a regulated entity or the Office of Finance.

(a)*Complaints.* —(1) *General.* Any regulated entity or the Office of Finance may submit a complaint in accordance with procedures established by the Ombudsman.

(2)*Matters subject to complaint.* A regulated entity or the Office of Finance may submit a complaint regarding any matter relating to the regulation and supervision of a regulated entity or the Office of Finance by FHFA that is not subject to appeal or in litigation, arbitration, or mediation. The Ombudsman may further define what matters are subject to complaint.

(b)*Appeals.* —(1) *General.* Any regulated entity or the Office of Finance may submit an appeal in accordance with procedures established by the Ombudsman.

(2)*Matters subject to appeal.* A regulated entity or the Office of Finance may submit an appeal regarding any final, written regulatory or supervisory conclusion, decision, or examination rating by FHFA. The Ombudsman may further define what matters are subject to appeal.

(3)*Matters not subject to appeal.* Matters for which there is an existing avenue of appeal or for which there is another forum for appeal; non-final decisions or conclusions; and matters in ongoing litigation, arbitration, or mediation, unless there has been a breakdown in the process, may not be appealed. Matters not subject to appeal include, but are not limited to, appointments of conservators or receivers, preliminary examination conclusions, formal enforcement decisions, formal and informal rulemakings, Freedom of Information Act appeals, final FHFA decisions subject to judicial review, and matters within the jurisdiction of the FHFA Inspector General. The Ombudsman may further define what matters are not subject to appeal.

(4)*Effect of filing an appeal.* An appeal under this section does not excuse a regulated entity or the Office of Finance from complying with any regulatory or supervisory decision while the appeal is pending. However, the Director, upon consideration of a written request, may waive compliance with a regulatory or supervisory decision during the pendency of the appeal. § 1213.5 Complaints from a person.

(a)*General.* Any person that has a business relationship with a regulated entity or the Office of Finance may submit a complaint in accordance with procedures established by the Ombudsman.

(b)*Matters subject to complaint.* A person may submit a complaint regarding any matter relating to the regulation and supervision of a regulated entity or the Office of Finance by FHFA that is not a matter in litigation, arbitration, or mediation. The Ombudsman may further define what matters are subject to complaints. § 1213.6 No retaliation. Neither FHFA nor any FHFA employee may retaliate against a regulated entity, the Office of Finance, or a person for submitting a complaint or appeal under this part. The Ombudsman shall receive and address claims of retaliation. Upon receiving a complaint, the Ombudsman, in coordination with the Inspector General, shall examine the basis of the alleged retaliation. Upon completion of the examination, the Ombudsman shall report the findings to the Director with recommendations, including a recommendation to take disciplinary action against any FHFA employee found to have retaliated. § 1213.7 Confidentiality. The Ombudsman shall ensure that safeguards exist to preserve confidentiality. If a party requests that information and materials remain confidential, the Ombudsman shall not disclose the information or materials, without approval of the party, except to appropriate reviewing or investigating officials, such as the Inspector General, or as required by law. However, the resolution of certain complaints (such as complaints of retaliation against a regulated entity or the Office of Finance) may not be possible if the identity of the party remains confidential. In such cases, the Ombudsman shall discuss with the party the circumstances limiting confidentiality. Dated: February 3, 2011. Edward J. DeMarco, Acting Director, Federal Housing Finance Agency. [FR Doc. 2011-2845 Filed 2-9-11; 8:45 am]

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