Unknown. Final rules, official interpretations, and commentary

5,847 words·~27 min read·/register/2022/10/20/2022-22820·

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-2022-10-20.xml --- 87 202 Thursday, October 20, 2022 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 63778-63779 2022-22735 Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application and Permit for Importation of Firearms, Ammunition, and Defense Articles, 63800-63801 2022-22756 Application to Make and Register a Firearm, 63799-63800 2022-22754 Identification of Explosive Materials, 63801 2022-22753 Consumer Financial Protection Bureau of Consumer Financial Protection RULES Appraisals for Higher-Priced Mortgage Loans Exemption Threshold, 63663-63666 2022-22820 Consumer Leasing (Regulation M), 63666-63671 2022-22818 Truth in Lending (Regulation Z), 63671-63677 2022-22819 Children Children and Families Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Case Studies of Child Care and Development Fund Lead Agencies' Consumer Education Strategies, 63780-63781 2022-22759 Domestic Victims of Human Trafficking Program Data, 63781-63782 2022-22757 Tribal Maternal, Infant, and Early Childhood Home Visiting Program Form 2: Grantee Performance Measures, 63779-63780 2022-22755 Coast Guard Coast Guard RULES Safety Zone: Corpus Christi Shipping Channel, Corpus Christi, TX, 63687-63689 2022-22872 Commerce Commerce Department See Industry and Security Bureau See National Oceanic and Atmospheric Administration Community Development Community Development Financial Institutions Fund NOTICES Target Market Assessment Methodologies, 63852-63854 2022-22767 Comptroller Comptroller of the Currency RULES Appraisals for Higher-Priced Mortgage Loans Exemption Threshold, 63663-63666 2022-22820 Education Department Education Department RULES Student Assistance General Provisions, Federal Family Education Loan Program, William D.

Ford Federal Direct Loan Program, etc.; Corrections, 63689-63695 2022-22822 Employee Benefits Employee Benefits Security Administration NOTICES Proposed Exemption for Certain Prohibited Transaction Restrictions Involving JPMorgan Chase Co. Located in New York, NY, 63802-63818 2022-22861 Energy Department Energy Department See Federal Energy Regulatory Commission RULES Energy Conservation Program: Test Procedure for Variable Refrigerant Flow Multi-Split Systems, 63860-63901 2022-22511 NOTICES Meetings:

Environmental Management Site-Specific Advisory Board, Hanford, 63765 2022-22741 Environmental Management Site-Specific Advisory Board, Savannah River Site, 63765-63766 2022-22740 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: California; Determinations of Attainment by the Attainment Date, California Areas Classified as Serious for the 2008 Ozone National Ambient Air Quality Standards, etc., 63698-63701 2022-22192 California;

Imperial County; 2015 Ozone National Ambient Air Quality Standard; Determination of Attainment by the Attainment Date but for International Emissions, 63701-63703 2022-22276 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Imperial County, CA Nonattainment Area for the 2012 Annual Fine Particulate Matter National Ambient Air Quality Standard, 63751-63759 2022-22191 Nevada; Infrastructure Requirements for Fine Particulate Matter, 63744-63751 2022-22864 New Jersey;

Motor Vehicle Enhanced Inspection and Maintenance Program; Diesel Opacity Cutpoints, 63743-63744 2022-22224 NOTICES Draft Integrated Risk Information System Toxicological Review of Hexavalent Chromium, 63774-63775 2022-22725 Federal Aviation Federal Aviation Administration RULES Airspace Designations and Reporting Points: Bellingham, WA, 63680-63681 2022-22186 Kotzebue, AK, 63678-63679 2022-22187 Level Island, AK, 63681-63683 2022-22188 Northcentral United States, 63679-63680 2022-22185 Trona, CA, 63683-63686 2022-22783 PROPOSED RULES Airworthiness Directives:

Airbus SAS Airplanes, 63709-63718 2022-21449 2022-22047 2022-22053 Dassault Aviation Airplanes, 63706-63709 2022-20982 Embraer S.A. (Type Certificate Previously Held by Yabora Indstria Aeronautica S.A.; Embraer S.A.) Airplanes, 63704-63706 2022-21448 NOTICES Recommended Gulfstream GV-Series Standardized Curricula for Operators Delivered by Training Centers, 63851 2022-22583 Federal Deposit Federal Deposit Insurance Corporation NOTICES Meetings: Systemic Resolution Advisory Committee, 63775-63776 2022-22789 Federal Energy Federal Energy Regulatory Commission NOTICES Application:

Eugene Water and Electric Board, 63767-63768 2022-22770 Missisquoi, LLC, 63772-63773 2022-22774 Pyrites Hydro, LLC, 63766-63767 2022-22769 Rumford Falls Hydro, LLC, 63770-63771 2022-22771 Combined Filings, 63768-63770 2022-22777 Environmental Impact Statements; Availability, etc.: Northern Natural Gas Co., Northern Lights 2023 Expansion Project, 63771-63772 2022-22776 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations: Buena Vista Energy Center, LLC, 63770 2022-22775 Request for Extension of Time:

Transcontinental Gas Pipe Line Co., LLC, Sea Robin Pipeline Co., LLC, Florida Gas Transmission Co., LLC, 63773-63774 2022-22772 Federal Mediation Federal Mediation and Conciliation Service NOTICES Internal Reorganization, 63776 2022-22727 Training Evaluation, 63776 2022-22729 Federal Motor Federal Motor Carrier Safety Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Commercial Motor Vehicle Marking Requirements, 63851-63852 2022-22784 Federal Reserve Federal Reserve System RULES Appraisals for Higher-Priced Mortgage Loans Exemption Threshold, 63663-63666 2022-22820 Consumer Leasing (Regulation M), 63666-63671 2022-22818 Truth in Lending (Regulation Z), 63671-63677 2022-22819 NOTICES Change in Bank Control:

Acquisitions of Shares of a Bank or Bank Holding Company, 63776-63777 2022-22807 Acquisitions of Shares of a Savings and Loan Holding Company, 63777 2022-22803 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 63777-63778 2022-22804 Federal Trade Federal Trade Commission PROPOSED RULES Commercial Surveillance and Data Security, 63738-63739 2022-22813 Food and Drug Food and Drug Administration RULES Guidance: Laboratory Accreditation for Analyses of Foods;

Small Entity Compliance Guide, 63686-63687 2022-22706 NOTICES Advancing Real-World Evidence Program, 63786-63787 2022-22795 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 63786 2022-22762 Complex Innovative Design Paired Meeting Program, 63787-63790 2022-22794 Guidance: Current Good Manufacturing Practice for Animal Cells, Tissues, and Cell- and Tissue-Based Products, 63784-63785 2022-22816 Donor Eligibility for Animal Cells, Tissues, and Cell- and Tissue-Based Products, 63783-63784 2022-22817 Meetings:

Animal Generic Drug User Fee Act, 63782-63783 2022-22744 Foreign Assets Foreign Assets Control Office NOTICES Sanctions Action, 63854-63856 2022-22811 2022-22812 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Children and Families Administration See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See Coast Guard NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Incident Communications Activity Report, 63792-63793 2022-22791 Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Public Housing Operating Subsidy—Appeals, 63794-63795 2022-22797 Rent Schedule—Low Income Housing, 63793-63794 2022-22788 Industry Industry and Security Bureau NOTICES Denial of Export Privileges: Aviastar—TU, 63760-63762 2022-22815 Interior Interior Department See Land Management Bureau See National Park Service International Trade Com International Trade Commission NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Finished Carbon Steel Flanges from India, Italy, and Spain, 63798-63799 2022-22752 Complaint, 63797-63798 2022-22805 Justice Department Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Proposed Consent Decree, 63801-63802 2022-22743 Labor Department Labor Department See Employee Benefits Security Administration Land Land Management Bureau NOTICES Plats of Survey: Oregon/Washington, 63795 2022-22733 National Credit National Credit Union Administration NOTICES Privacy Act;

Systems of Records, 63818-63820 2022-22802 National Institute National Institutes of Health NOTICES Meetings: Center for Scientific Review, 63790-63791 2022-22763 National Institute of Diabetes and Digestive and Kidney Diseases, 63792 2022-22768 National Institute of Neurological Disorders and Stroke, 63791 2022-22764 National Library of Medicine, 63791-63792 2022-22765 National Oceanic National Oceanic and Atmospheric Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Reporting Requirements for Commercial Fisheries Authorization under the Marine Mammal Protection Act, 63764-63765 2022-22728 Meetings: Mid-Atlantic Fishery Management Council; Public Hearings, 63764 2022-22809 New England Fishery Management Council, 63762 2022-22808 Permits; Applications, Issuances, etc.: Magnuson-Stevens Act Provisions; General Provisions for Domestic Fisheries; Exempted Fishing, 63762-63763 2022-22801 National Park National Park Service NOTICES Extension and Continuation of Concession Contracts and Award of Temporary Concession Contracts, 63795-63797 2022-22760 Neighborhood Neighborhood Reinvestment Corporation NOTICES Meetings;

Sunshine Act, 63820 2022-22898 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Environmental Assessments; Availability, etc.: Regents of the University of California, University of California Davis McClellan Nuclear Research Center Training, Research, Isotope, General Atomics Nuclear Reactor, 63820-63826 2022-22766 Personnel Personnel Management Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Change in Student's Status, 63826-63827 2022-22793 Postal Regulatory Postal Regulatory Commission NOTICES Market Dominant Product List, 63827-63828 2022-22890 New Postal Products, 63828-63829 2022-22796 Postal Service Postal Service RULES USPS Connect Local Mail, 63696-63698 2022-22726 PROPOSED RULES New Mailing Standards for Domestic Mailing Services Products, 63741-63743 2022-22742 NOTICES Product Change:

Priority Mail Express, Priority Mail, First-Class Package Service, and Parcel Select Service Negotiated Service Agreement, 63829-63830 2022-22745 2022-22746 2022-22747 2022-22748 2022-22749 2022-22750 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: Clean Water Act, 50th Anniversary (Proc. 10480), 63661-63662 2022-22935 Securities Securities and Exchange Commission NOTICES Self-Regulatory Organizations; Proposed Rule Changes: Cboe BZX Exchange, Inc., 63830 2022-22737 Cboe Exchange, Inc., 63830-63834 2022-22738 National Securities Clearing Corp., 63845-63847 2022-22732 New York Stock Exchange, LLC, 63842-63845 2022-22730 NYSE American, LLC, 63834-63837 2022-22734 NYSE Arca, Inc., 63837-63842, 63847-63850 2022-22731 2022-22736 Small Business Small Business Administration NOTICES Conflicts of Interest Exemption:

Tecum Capital Partners III, L.P., 63850-63851 2022-22792 State Department State Department PROPOSED RULES Passports: Statement of Consent; Consular Reports of Birth Abroad, 63739-63741 2022-22758 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration PROPOSED RULES Enhancing Transparency of Airline Ancillary Service Fees, 63718-63738 2022-22214 Treasury Treasury Department See Community Development Financial Institutions Fund See Comptroller of the Currency See Foreign Assets Control Office RULES Privacy Act, 63904-63931 2022-22723 NOTICES Request for Information:

State Small Business Credit Initiative Technical Assistance Funds, 63856 2022-22786 U.S. Institute United States Institute of Peace NOTICES Meetings: Board of Directors, 63856-63857 2022-22751 Veteran Affairs Veterans Affairs Department RULES Delegated Authority to Settle Federal Tort Claims Act Administrative Tort Claims, 63695-63696 2022-22559 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Clearance for A-11 Section 280 Improving Customer Experience, 63857-63858 2022-22790 Separate Parts In This Issue Part II Energy Department, 63860-63901 2022-22511 Part III Treasury Department, 63904-63931 2022-22723 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 87 202 Thursday, October 20, 2022 Rules and Regulations DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 34 [Docket No. OCC-2022-0018] RIN 1557-AF17 FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Docket No.

R-1785] RIN 7100-AG43 BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 Appraisals for Higher-Priced Mortgage Loans Exemption Threshold AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); and Bureau of Consumer Financial Protection (Bureau). ACTION: Final rules, official interpretations, and commentary. SUMMARY: The OCC, the Board, and the Bureau are finalizing amendments to the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA).

Section 129H of TILA establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or “HPMLs” in the agencies' regulations. The OCC, the Board, the Bureau, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Federal Housing Finance Agency

(FHFA)(collectively, the Agencies) jointly issued final rules implementing these requirements, effective January 18, 2014. The Agencies' rules exempted, among other loan types, transactions of $25,000 or less, and required that this loan amount be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the OCC, the Board, and the Bureau will not adjust this exemption threshold from the prior year. Additionally, in years following a year in which the exemption threshold was not adjusted because the CPI-W decreased, the threshold is calculated by applying the annual percentage increase in the CPI-W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI-W had been taken into account. Based on the CPI-W in effect as of June 1, 2022, the exemption threshold will increase from $28,500 to $31,000, effective January 1, 2023. DATES: This final rule is effective January 1, 2023. FOR FURTHER INFORMATION CONTACT: *OCC:* MaryAnn Nash, Counsel, Chief Counsel's Office,

(202)649-6287; for persons who are deaf or hard of hearing TTY,

(202)649-5597. *Board:* Lorna M. Neill, Senior Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at

(202)452-3667. For users of TTY-TRS, please call 711 from any telephone, anywhere in the United States. *Bureau:* Thomas Dowell, Senior Counsel, Office of Regulations, Bureau of Consumer Financial Protection, at

(202)435-7700. If you require this document in an alternative electronic format, please contact *CFPB_Accessibility@cfpb.gov.* SUPPLEMENTARY INFORMATION: I. Background The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) amended TILA to add special appraisal requirements for “higher-risk mortgages.” 1 In January 2013, the Agencies jointly issued a final rule implementing these requirements and adopted the term “higher-priced mortgage loan”

(HPML)instead of “higher-risk mortgage” (the January 2013 Final Rule). 2 In July 2013, the Agencies proposed additional exemptions from the January 2013 Final Rule. 3 In December 2013, the Agencies issued a supplemental final rule with additional exemptions from the January 2013 Final Rule (the December 2013 Supplemental Final Rule). 4 Among other exemptions, the Agencies adopted an exemption from the new HPML appraisal rules for transactions of $25,000 or less, to be adjusted annually for inflation. 1 Public Law 111-203, section 1471, 124 Stat. 1376, 2185-87 (2010), codified at TILA section 129H, 15 U.S.C. 1639h. 2 78 FR 10368 (Feb. 13, 2013). 3 78 FR 48548 (Aug. 8, 2013). 4 78 FR 78520 (Dec. 26, 2013). The OCC's, Board's, and Bureau's versions of the January 2013 Final Rule and December 2013 Supplemental Final Rule and corresponding official interpretations are substantively identical. The FDIC, NCUA, and FHFA adopted the Bureau's version of the regulations under the January 2013 Final Rule and December 2013 Supplemental Final Rule. 5 5 *See* NCUA: 12 CFR 722.3; FHFA: 12 CFR part 1222. Although the FDIC adopted the Bureau's version of the regulation, the FDIC did not issue its own regulation containing a cross-reference to the Bureau's version. *See* 78 FR 10368, 10370 (Feb. 13, 2013). The OCC's, Board's, and Bureau's regulations, 6 and their accompanying interpretations, 7 provide that the exemption threshold for smaller loans will be adjusted effective January 1 of each year based on any annual percentage increase in the CPI-W that was in effect on the preceding June 1. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900. If there is no annual percentage increase in the CPI-W, the OCC, the Board, and the Bureau will not adjust the threshold amounts from the prior year. 8 6 12 CFR 34.203(b)(2) (OCC); 12 CFR 226.43(b)(2) (Board); and 12 CFR 1026.35(c)(2)(ii) (Bureau). 7 12 CFR part 34, appendix C to subpart G, comment 203(b)(2)-1 (OCC); 12 CFR part 226, Supplement I, comment 43(b)(2)-1 (Board); and 12 CFR part 1026, Supplement I, comment 35(c)(2)(ii)-1 (Bureau). 8 *See* 12 CFR part 34, appendix C to subpart G, comment 203(b)(2)-1 and -2 (OCC); 12 CFR part 226, Supplement I, comment 43(b)(2)-1 and -2 (Board); and 12 CFR part 1026, Supplement I, comment 35(c)(2)(ii)-1 and -2 (Bureau). On November 30, 2016, the OCC, the Board, and the Bureau published a final rule in the **Federal Register** to memorialize the calculation method used by the Agencies each year to adjust the exemption threshold to ensure that the values for the exemption threshold keep pace with the CPI-W (HPML Small Dollar Adjustment Calculation Rule). 9 The HPML Small Dollar Adjustment Calculation Rule memorialized the policy that, if there is no annual percentage increase in the CPI-W, the OCC, Board, and Bureau will not adjust the exemption threshold from the prior year. The HPML Small Dollar Adjustment Calculation Rule also provided that, in years following a year in which the exemption threshold was not adjusted because there was a decrease in the CPI-W from the previous year, the threshold is calculated by applying the annual percentage change in the CPI-W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI-W had been taken into account. If the resulting amount calculated, after rounding, is greater than the current threshold, then the threshold effective January 1 the following year will increase accordingly; if the resulting amount calculated, after rounding, is equal to or less than the current threshold, then the threshold effective January 1 the following year will not change, but future increases will be calculated based on the amount that would have resulted, after rounding. 9 *See* 81 FR 86250 (Nov. 30, 2016). II. 2023 Adjustment and Commentary Revision Effective January 1, 2023, the exemption threshold amount is increased from $28,500 to $31,000. This amount is based on the CPI-W in effect on June 1, 2022, which was reported on May 11, 2022 (based on April 2022 data). 10 The CPI-W is a subset of the CPI-U index (based on all urban consumers) and represents approximately 29 percent of the U.S. population. The CPI-W reported on May 11, 2022, reflects an 8.9 percent increase in the CPI-W from April 2021 to April 2022. Accordingly, the 8.9 percent increase in the CPI-W from April 2021 to April 2022 results in an exemption threshold amount of $31,000, after rounding. The OCC, the Board, and the Bureau are revising the commentaries to their respective regulations to add new comments as follows: 10 The Bureau of Labor Statistics calculates consumer-based indices for each month but does not report those indices until the middle of the following month. As such, the most recently reported indices as of June 1, 2022 were reported on May 11, 2022 and reflect economic conditions in April 2022. • Comment 203(b)(2)-3.x to 12 CFR part 34, appendix C to subpart G (OCC); • Comment 43(b)(2)-3.x to Supplement I of 12 CFR part 226 (Board); and • Comment 35(c)(2)(ii)-3.x to Supplement I of 12 CFR part 1026 (Bureau). These new comments state that, from January 1, 2023, through December 31, 2023, the threshold amount is $31,000. These revisions are effective January 1, 2023. III. Regulatory Analysis Administrative Procedure Act Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the agency finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest. 11 The amendments in this rule are technical and apply the method previously memorialized in the December 2013 Supplemental Final Rule and the HPML Small Dollar Adjustment Calculation Rule. For these reasons, the OCC, the Board, and the Bureau have determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendments are adopted in final form. 11 5 U.S.C. 553(b)(B). Regulatory Flexibility Act The Regulatory Flexibility Act

(RFA)does not apply to a rulemaking where a general notice of proposed rulemaking is not required. 12 As noted previously, the Agencies have determined that it is unnecessary to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply. 12 5 U.S.C. 603(a), 604(a). Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995, 13 the Agencies reviewed this final rule. The Agencies have determined that this final rule does not create any new information collections or substantially revise any existing collections. 13 44 U.S.C. 3506; 5 CFR part 1320. Unfunded Mandates Reform Act The OCC analyzes proposed rules for the factors listed in Section 202 of the Unfunded Mandates Reform Act of 1995, before promulgating a final rule for which a general notice of proposed rulemaking was published. 14 As discussed above, the OCC has determined that the publication of a general notice of proposed rulemaking is unnecessary. 14 2 U.S.C. 1532. Bureau Congressional Review Act Statement Pursuant to the Congressional Review Act (5 U.S.C. 801 *et seq.* ), the Bureau will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. The Office of Information and Regulatory Affairs has designated this rule as not a “major rule” as defined by 5 U.S.C. 804(2). Bureau Signing Authority The Associate Director of Research, Markets, and Regulations, Janis K. Pappalardo, having reviewed and approved this document, is delegating the authority to electronically sign this document to Grace Feola, Bureau **Federal Register** Liaison, for purposes of publication in the **Federal Register** . List of Subjects 12 CFR Part 34 Accounting, Banks, Banking, Consumer protection, Credit, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth-in-lending. 12 CFR Part 226 Advertising, Appraisal, Appraiser, Consumer protection, Credit, Federal Reserve System, Reporting and recordkeeping requirements, Truth in lending. 12 CFR Part 1026 Advertising, Banks, Banking, Consumer protection, Credit, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Authority and Issuance For the reasons set forth in the preamble, the OCC amends 12 CFR part 34 as set forth below: PART 34— REAL ESTATE LENDING AND APPRAISALS 1. The authority citation for part 34 continues to read as follows: Authority: 12 U.S.C. 1 *et seq.,* 25b, 29, 93a, 371, 1462a, 1463, 1464, 1465, 1701j-3, 1828(o), 3331 *et seq.,* 5101 *et seq.,* and 5412(b)(2)(B) and 15 U.S.C. 1639h. 2. In appendix C to subpart G, under *Section 34.203—Appraisals for Higher-Priced Mortgage Loans,* paragraph 34.203(b)(2) is revised to read as follows: Appendix C to Subpart G—OCC Interpretations *Section 34.203—Appraisals for Higher-Priced Mortgage Loans* *Paragraph 34.203(b)(2)* 1. *Threshold amount.* For purposes of § 34.203(b)(2), the threshold amount in effect during a particular period is the amount stated in comment 203(b)(2)-3 for that period. The threshold amount is adjusted effective January 1 of each year by any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) that was in effect on the preceding June 1. Comment 203(b)(2)-3 will be amended to provide the threshold amount for the upcoming year after the annual percentage change in the CPI-W that was in effect on June 1 becomes available. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900. 2. *No increase in the CPI-W.* If the CPI-W in effect on June 1 does not increase from the CPI-W in effect on June 1 of the previous year, the threshold amount effective the following January 1 through December 31 will not change from the previous year. When this occurs, for the years that follow, the threshold is calculated based on the annual percentage change in the CPI-W applied to the dollar amount that would have resulted, after rounding, if decreases and any subsequent increases in the CPI-W had been taken into account. i. *Net increases.* If the resulting amount calculated, after rounding, is greater than the current threshold, then the threshold effective January 1 the following year will increase accordingly. ii. *Net decreases.* If the resulting amount calculated, after rounding, is equal to or less than the current threshold, then the threshold effective January 1 the following year will not change, but future increases will be calculated based on the amount that would have resulted. 3. *Threshold.* For purposes of § 34.203(b)(2), the threshold amount in effect during a particular period is the amount stated below for that period. i. From January 18, 2014, through December 31, 2014, the threshold amount is $25,000. ii. From January 1, 2015, through December 31, 2015, the threshold amount is $25,500. iii. From January 1, 2016, through December 31, 2016, the threshold amount is $25,500. iv. From January 1, 2017, through December 31, 2017, the threshold amount is $25,500. v. From January 1, 2018, through December 31, 2018, the threshold amount is $26,000. vi. From January 1, 2019, through December 31, 2019, the threshold amount is $26,700. vii. From January 1, 2020, through December 31, 2020, the threshold amount is $27,200. viii. From January 1, 2021, through December 31, 2021, the threshold amount is $27,200. ix. From January 1, 2022, through December 31, 2022, the threshold amount is $28,500. x. From January 1, 2023, through December 31, 2023, the threshold amount is $31,000. 4. *Qualifying for exemption—in general.* A transaction is exempt under § 34.203(b)(2) if the creditor makes an extension of credit at consummation that is equal to or below the threshold amount in effect at the time of consummation. 5. *Qualifying for exemption—subsequent changes.* A transaction does not meet the condition for an exemption under § 34.203(b)(2) merely because it is used to satisfy and replace an existing exempt loan, unless the amount of the new extension of credit is equal to or less than the applicable threshold amount. For example, assume a closed-end loan that qualified for a § 34.203(b)(2) exemption at consummation in year one is refinanced in year ten and that the new loan amount is greater than the threshold amount in effect in year ten. In these circumstances, the creditor must comply with all of the applicable requirements of § 34.203 with respect to the year ten transaction if the original loan is satisfied and replaced by the new loan, unless another exemption from the requirements of § 34.203 applies. *See* § 34.203(b) and (d)(7). BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Authority and Issuance For the reasons set forth in the preamble, the Board amends Regulation Z, 12 CFR part 226, as set forth below: PART 226—TRUTH IN LENDING (REGULATION Z) 3. The authority citation for part 226 continues to read as follows: Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 1637(c)(5), 1639(l), and 1639h; Pub. L. 111-24, section 2, 123 Stat. 1734; Pub. L. 111-203, 124 Stat. 1376. 4. In Supplement I to part 226, under *Section 226.43—Appraisals for Higher-Risk Mortgage Loans,* paragraph 43(b)(2) is revised to read as follows: Supplement I to Part 226—Official Staff Interpretations Section 226.43—Appraisals for Higher-Risk Mortgage Loans *Paragraph 43(b)(2)* 1. *Threshold amount.* For purposes of § 226.43(b)(2), the threshold amount in effect during a particular period is the amount stated in comment 43(b)(2)-3 for that period. The threshold amount is adjusted effective January 1 of each year by any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) that was in effect on the preceding June 1. Comment 43(b)(2)-3 will be amended to provide the threshold amount for the upcoming year after the annual percentage change in the CPI-W that was in effect on June 1 becomes available. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900. 2. *No increase in the CPI-W.* If the CPI-W in effect on June 1 does not increase from the CPI-W in effect on June 1 of the previous year, the threshold amount effective the following January 1 through December 31 will not change from the previous year. When this occurs, for the years that follow, the threshold is calculated based on the annual percentage change in the CPI-W applied to the dollar amount that would have resulted, after rounding, if decreases and any subsequent increases in the CPI-W had been taken into account. i. *Net increases.* If the resulting amount calculated, after rounding, is greater than the current threshold, then the threshold effective January 1 the following year will increase accordingly. ii. *Net decreases.* If the resulting amount calculated, after rounding, is equal to or less than the current threshold, then the threshold effective January 1 the following year will not change, but future increases will be calculated based on the amount that would have resulted. 3. *Threshold.* For purposes of § 226.43(b)(2), the threshold amount in effect during a particular period is the amount stated below for that period. i. From January 18, 2014, through December 31, 2014, the threshold amount is $25,000. ii. From January 1, 2015, through December 31, 2015, the threshold amount is $25,500. iii. From January 1, 2016, through December 31, 2016, the threshold amount is $25,500. iv. From January 1, 2017, through December 31, 2017, the threshold amount is $25,500. v. From January 1, 2018, through December 31, 2018, the threshold amount is $26,000. vi. From January 1, 2019, through December 31, 2019, the threshold amount is $26,700. vii. From January 1, 2020, through December 31, 2020, the threshold amount is $27,200. viii. From January 1, 2021, through December 31, 2021, the threshold amount is $27,200. ix. From January 1, 2022, through December 31, 2022, the threshold amount is $28,500. x. From January 1, 2023, through December 31, 2023, the threshold amount is $31,000. 4. *Qualifying for exemption—in general.* A transaction is exempt under § 226.43(b)(2) if the creditor makes an extension of credit at consummation that is equal to or below the threshold amount in effect at the time of consummation. 5. *Qualifying for exemption—subsequent changes.* A transaction does not meet the condition for an exemption under § 226.43(b)(2) merely because it is used to satisfy and replace an existing exempt loan, unless the amount of the new extension of credit is equal to or less than the applicable threshold amount. For example, assume a closed-end loan that qualified for a § 226.43(b)(2) exemption at consummation in year one is refinanced in year ten and that the new loan amount is greater than the threshold amount in effect in year ten. In these circumstances, the creditor must comply with all of the applicable requirements of § 226.43 with respect to the year ten transaction if the original loan is satisfied and replaced by the new loan, unless another exemption from the requirements of § 226.43 applies. *See* § 226.43(b) and (d)(7). BUREAU OF CONSUMER FINANCIAL PROTECTION Authority and Issuance For the reasons set forth in the preamble, the Bureau amends Regulation Z, 12 CFR part 1026, as set forth below: PART 1026—TRUTH IN LENDING (REGULATION Z) 5. The authority citation for part 1026 continues to read as follows: Authority: 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353, 5511, 5512, 5532, 5581; 15 U.S.C. 1601 *et seq.* 6. In Supplement I to part 1026, under *Section 1026.35—Requirements for Higher-Priced Mortgage Loans,* paragraph 35(c)(2)(ii) is revised to read as follows: Supplement I to Part 1026—Official Interpretations *Section 1026.35—Requirements for Higher-Priced Mortgage Loans* Paragraph 35(c)(2)(ii) 1. *Threshold amount.* For purposes of § 1026.35(c)(2)(ii), the threshold amount in effect during a particular period is the amount stated in comment 35(c)(2)(ii)-3 for that period. The threshold amount is adjusted effective January 1 of each year by any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) that was in effect on the preceding June 1. Comment 35(c)(2)(ii)-3 will be amended to provide the threshold amount for the upcoming year after the annual percentage change in the CPI-W that was in effect on June 1 becomes available. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900. 2. *No increase in the CPI-W.* If the CPI-W in effect on June 1 does not increase from the CPI-W in effect on June 1 of the previous year, the threshold amount effective the following January 1 through December 31 will not change from the previous year. When this occurs, for the years that follow, the threshold is calculated based on the annual percentage change in the CPI-W applied to the dollar amount that would have resulted, after rounding, if decreases and any subsequent increases in the CPI-W had been taken into account. i. *Net increases.* If the resulting amount calculated, after rounding, is greater than the current threshold, then the threshold effective January 1 the following year will increase accordingly. ii. *Net decreases.* If the resulting amount calculated, after rounding, is equal to or less than the current threshold, then the threshold effective January 1 the following year will not change, but future increases will be calculated based on the amount that would have resulted. 3. *Threshold.* For purposes of § 1026.35(c)(2)(ii), the threshold amount in effect during a particular period is the amount stated below for that period. i. From January 18, 2014, through December 31, 2014, the threshold amount is $25,000. ii. From January 1, 2015, through December 31, 2015, the threshold amount is $25,500. iii. From January 1, 2016, through December 31, 2016, the threshold amount is $25,500. iv. From January 1, 2017, through December 31, 2017, the threshold amount is $25,500. v. From January 1, 2018, through December 31, 2018, the threshold amount is $26,000. vi. From January 1, 2019, through December 31, 2019, the threshold amount is $26,700. vii. From January 1, 2020, through December 31, 2020, the threshold amount is $27,200. viii. From January 1, 2021, through December 31, 2021, the threshold amount is $27,200. ix. From January 1, 2022, through December 31, 2022, the threshold amount is $28,500. x. From January 1, 2023, through December 31, 2023, the threshold amount is $31,000. 4. *Qualifying for exemption—in general.* A transaction is exempt under § 1026.35(c)(2)(ii) if the creditor makes an extension of credit at consummation that is equal to or below the threshold amount in effect at the time of consummation. 5. *Qualifying for exemption—subsequent changes.* A transaction does not meet the condition for an exemption under § 1026.35(c)(2)(ii) merely because it is used to satisfy and replace an existing exempt loan, unless the amount of the new extension of credit is equal to or less than the applicable threshold amount. For example, assume a closed-end loan that qualified for a § 1026.35(c)(2)(ii) exemption at consummation in year one is refinanced in year ten and that the new loan amount is greater than the threshold amount in effect in year ten. In these circumstances, the creditor must comply with all of the applicable requirements of § 1026.35(c) with respect to the year ten transaction if the original loan is satisfied and replaced by the new loan, unless another exemption from the requirements of § 1026.35(c) applies. *See* § 1026.35(c)(2) and (c)(4)(vii). Michael J. Hsu, 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. Grace Feola, Federal Register Liaison, Bureau of Consumer Financial Protection. [FR Doc. 2022-22820 Filed 10-19-22; 8:45 am]

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