Unknown. Final rule; official interpretation

4,142 words·~19 min read·/register/2023/12/21/2023-28079

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-2023-12-21.xml --- 88 244 Thursday, December 21, 2023 Contents Agricultural Marketing Agricultural Marketing Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88360-88361 2023-28074 Agriculture Agriculture Department See Agricultural Marketing Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88361 2023-28086 AIRFORCE Air Force Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 88376-88377 2023-28077 Antitrust Division Antitrust Division NOTICES Changes under the National Cooperative Research and Production Act: The National Advanced Mobility Consortium, Inc., 88411-88412 2023-28139 Army Army Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88377-88378 2023-28080 Consumer Financial Protection Bureau of Consumer Financial Protection RULES Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold, 88221-88223 2023-28079 Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold, 88223-88227 2023-28076 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Charter Amendments, Establishments, Renewals and Terminations:

Advisory Committee on Ground Ambulance and Patient Billing, 88393 2023-28128 Medicare and Medicaid Programs: Application from The Compliance Team for Continued Approval of its Rural Health Clinics Program, 88393-88395 2023-28111 Coast Guard Coast Guard RULES Drawbridge Operations: Turner Cut, near Stockton, CA, 88251-88253 2023-28146 Sector Name Conforming Amendment: Sector Sault Sainte Marie, 88249-88251 2023-28103 Commerce Commerce Department See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration Commodity Futures Commodity Futures Trading Commission NOTICES Hearings, Meetings, Proceedings etc.:

Technology Advisory Committee, 88376 2023-28126 Copyright Royalty Board Copyright Royalty Board RULES Cost of Living Adjustment to Royalty Rates for Webcaster Statutory License; Correction, 88253 2023-28098 Cost of Living Adjustment: Royalty Rates and Terms for Making and Distributing Phonorecords; Correction, 88253-88254 2023-28075 Defense Department Defense Department See Air Force Department See Army Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88378-88381 2023-28078 2023-28081 2023-28082 2023-28083 2023-28084 Intent to Grant an Exclusive License:

Kapalya, Inc., 88378 2023-28073 Drug Drug Enforcement Administration NOTICES Decision and Order: Frank A. Hooper, D.V.M., 88414-88416 2023-28015 Joeseph Potter, D.D.S., 88412-88413 2023-28013 Mark Young, M.D., 88413-88414 2023-28016 Education Department Education Department NOTICES Evaluation of Full-Service Community Schools; Correction, 88381 2023-28147 Proposed Waiver and Extension of the Project Period: Tribally Controlled Postsecondary Career and Technical Institutions Program, 88381-88383 2023-28127 Employee Benefits Employee Benefits Security Administration RULES Federal Independent Dispute Resolution Process Administrative Fee and Certified Independent Dispute Resolution Entity Fee Ranges, 88494-88525 2023-27931 Employment and Training Employment and Training Administration PROPOSED RULES Labor Certification for Permanent Employment of Foreign Workers in the United States:

Modernizing Schedule A to Include Consideration of Additional Occupations in Science, Technology, Engineering, and Mathematics and Non-STEM Occupations, 88290-88294 2023-27938 Energy Department Energy Department See Energy Information Administration See Federal Energy Regulatory Commission Energy Information Energy Information Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88383 2023-28142 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans;

Approvals and Promulgations: California; Great Basin Unified Air Pollution Control District; Stationary Source Permits, 88255-88257 2023-27889 California; San Diego County Air Pollution Control District; Oxides of Nitrogen, 88254-88255 2023-27876 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Georgia; Miscellaneous Rule Revision, 88308-88310 2023-28085 Georgia; Vehicle Inspection and Maintenance Program, 88310-88315 2023-28105 Nevada; Clark County Second 10-Year Maintenance Plan for the 1997 8-Hour Ozone Standard, 88300-88308 2023-27874 Water Quality Standards:

Protect Aquatic Life in the Delaware River, 88315-88336 2023-27758 NOTICES Transfer of Data: RTI International and ToxStrategies LLC, 88389-88390 2023-28088 Federal Aviation Federal Aviation Administration RULES Amendment of Restricted Area: Holtville, CA, 88227-88228 2023-28032 PROPOSED RULES Airspace Designations and Reporting Points: Alaska, 88281-88284 2023-28029 2023-28033 Ebensburg, PA, 88279-88281 2023-27869 Hastings, NE, 88286-88288 2023-28031 Mankato, MN, 88284-88286 2023-28089 Airworthiness Directives:

Leonardo S.p.a. Helicopters, 88274-88279 2023-28034 2023-28037 The Boeing Company Airplanes, 88271-88274 2023-28004 Establishment of Restricted Area: Vicinity of Townsend, MT, 88288-88289 2023-28030 NOTICES Noise Compatibility Program Update: Westfield-Barnes Regional Airport, Westfield; Approval, 88483-88485 2023-28148 Random Drug and Alcohol Testing Percentage Rates of Covered Aviation Employees for the Period January 1, 2024 to December 31, 2024; Correction, 88485 2023-28124 Federal Communications Federal Communications Commission RULES Supporting Survivors of Domestic and Sexual Violence;

Lifeline and Link Up Reform Modernization; Correction, 88261 2023-27840 Video Relay Service and Internet Protocol Captioned Telephone Service: Commencement of Pending User Registration; Rates for Interstate Inmate Calling Services, 88257-88261 2023-28007 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88390-88392 2023-28096 2023-28097 Federal Emergency Federal Emergency Management Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Fire Management Assistance Grant Program, 88408-88410 2023-28149 Federal Energy Federal Energy Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 88383-88386 2023-28130 Combined Filings, 88386-88387, 88389 2023-28132 2023-28133 Environmental Assessments; Availability, etc.: Florida Gas Transmission Co.; South Louisiana Project, 88387-88388 2023-28131 Revisions to the Filing Process for Commission Forms: eForms Updates, 88388-88389 2023-28129 Federal Highway Federal Highway Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 88485-88486 2023-28134 Federal Motor Federal Motor Carrier Safety Administration NOTICES Exemption Applications: Qualification of Drivers; Epilepsy and Seizure Disorders, 88486-88487 2023-28038 Federal Railroad Federal Railroad Administration NOTICES Northern Indiana Commuter Transportation District's Request to Amend Its Positive Train Control Safety Plan and Positive Train Control System, 88488 2023-28008 Petition for Waiver of Compliance, 88488-88489 2023-28110 Federal Reserve Federal Reserve System NOTICES Change in Bank Control:

Acquisitions of Shares of a Bank or Bank Holding Company, 88392-88393 2023-28035 Federal Transit Federal Transit Administration PROPOSED RULES State Safety Oversight, 88337 2023-28155 Transit Worker Hours of Service and Fatigue Risk Management, 88337-88338 2023-28154 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Species: Threatened Species Status for Coal Darter with Section 4(d) Rule, 88338-88359 2023-27873 Food and Drug Food and Drug Administration RULES Institutional Review Board Waiver or Alteration of Informed Consent for Minimal Risk Clinical Investigations, 88228-88249 2023-27935 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Examination of Implied Claims in Direct-to-Consumer Prescription Drug Promotion, 88398-88401 2023-28093 Guidance: 510(k) Third Party Review Program and Third Party Emergency Use Authorization Review, 88395-88396 2023-28095 Development of Monoclonal Antibody Products Targeting SARS-CoV-2 for Emergency Use Authorization, 88401-88402 2023-28092 Patent Extension Regulatory Review Period: Lybalvi, 88397-88398 2023-28094 Health and Human Health and Human Services Department See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health RULES Federal Independent Dispute Resolution Process Administrative Fee and Certified Independent Dispute Resolution Entity Fee Ranges, 88494-88525 2023-27931 NOTICES Hearings, Meetings, Proceedings etc.:

Advisory Committee on Minority Health, 88402-88403 2023-28101 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency Interior Interior Department See Fish and Wildlife Service See Land Management Bureau Internal Revenue Internal Revenue Service RULES Federal Independent Dispute Resolution Process Administrative Fee and Certified Independent Dispute Resolution Entity Fee Ranges, 88494-88525 2023-27931 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Citric Acid and Certain Citrate Salts from Belgium, 88361-88362 2023-28138 Oil Country Tubular Goods from Ukraine, 88362-88363 2023-28036 Polyethylene Terephthalate Film, Sheet, and Strip from Taiwan, 88363-88365 2023-28027 Determination of Sales at Less-Than-Fair Value: Gas Powered Pressure Washers from the People's Republic of China, 88365-88367 2023-28137 Justice Department Justice Department See Antitrust Division See Drug Enforcement Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: ARCOS Transaction Reporting, 88416-88417 2023-28107 Dispensing Records of Individual Practitioners, 88417-88418 2023-28108 Proposed Consent Decree: CERCLA, the Clean Water Act, and the Oil Pollution Act, 88417 2023-28017 Labor Department Labor Department See Employee Benefits Security Administration See Employment and Training Administration See Veterans Employment and Training Service Land Land Management Bureau NOTICES Realty Action: Direct Sale of Public Land in Eagle County, CO, 88410 2023-28045 Library Library of Congress See Copyright Royalty Board Maritime Maritime Administration NOTICES Hearings, Meetings, Proceedings etc.:

Decommissioning and Disposition of the National Historic Landmark Nuclear Ship Savannah, 88489-88490 2023-28099 National Endowment for the Humanities National Endowment for the Humanities NOTICES Hearings, Meetings, Proceedings etc.: Humanities Panel, 88419 2023-28014 National Foundation National Foundation on the Arts and the Humanities See National Endowment for the Humanities National Institute National Institute of Standards and Technology NOTICES Request for Information:

Executive Order on Artificial Intelligence, 88368-88370 2023-28232 National Institute National Institutes of Health NOTICES Hearings, Meetings, Proceedings etc.: Board of Regents of the National Library of Medicine, 88407-88408 2023-28065 National Institute of Biomedical Imaging and Bioengineering, 88408 2023-28123 National Institute on Aging, 88403-88407 2023-28018 2023-28019 2023-28020 2023-28021 2023-28022 2023-28023 2023-28024 2023-28025 2023-28026 2023-28069 2023-28070 National Institute on Minority Health and Health Disparities, 88405-88406 2023-28122 National Library of Medicine, 88403-88404, 88407-88408 2023-28068 2023-28071 2023-28072 2023-28067 National Oceanic National Oceanic and Atmospheric Administration RULES Approach Regulations for Humpback Whales in Waters Surrounding the Hawaiian Islands under the Marine Mammal Protection Act, 88262-88265 2023-28091 Fisheries of the Northeastern United States: 2024 and Projected 2025 Specifications for the Summer Flounder and Scup Fisheries, and 2024 Specifications for the Black Sea Bass Fishery, 88266-88270 2023-28090 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Dr. Nancy Foster Scholarship Program, 88373 2023-28113 Implementation of Vessel Speed Restrictions to Reduce the Threat of Ship Collisions with North Atlantic Right Whales, 88375-88376 2023-28121 Environmental Assessments; Availability, etc.: Vessel Operations, 88370-88372 2023-28120 Permits, Applications, Issuances, etc.: Marine Mammals; File No. 27592, 88372 2023-28151 Request for Membership Application: United States Integrated Ocean Observing System Advisory Committee, 88373-88375 2023-28125 National Science National Science Foundation NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Eddie Bernice Johnson INCLUDES Initiative National Network Survey, 88419-88420 2023-28156 National Science Foundation Research Traineeship Program Monitoring System, 88420-88421 2023-28046 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Criteria and Procedures for Emergency Access to Non-Federal and Regional Low-Level Waste Disposal Facilities, 88421-88422 2023-28144 Form to Propose a Generic Issue, 88422-88423 2023-28145 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 88423-88424 2023-28109 Postal Service Postal Service NOTICES Product Change:

Priority Mail and USPS Ground Advantage Negotiated Service Agreement, 88424-88427 2023-28053 2023-28054 2023-28055 2023-28056 2023-28057 2023-28058 2023-28059 2023-28060 2023-28061 2023-28062 2023-28063 2023-28064 Priority Mail Express, Priority Mail, and USPS Ground Advantage Negotiated Service Agreement, 88424-88427 2023-28047 2023-28048 2023-28049 2023-28050 2023-28051 2023-28052 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 88427-88429, 88432-88433, 88436, 88463-88464 2023-28114 2023-28115 2023-28116 2023-28117 2023-28118 2023-28119 Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange LLC, 88429-88432, 88437-88461 2023-28042 2023-28043 Nasdaq GEMX, LLC, 88461-88463 2023-28041 Nasdaq MRX, LLC, 88433-88436 2023-28040 The Nasdaq Stock Market LLC, 88464-88466 2023-28039 Small Business Small Business Administration NOTICES Disaster or Emergency Declaration and Related Determination:

Tennessee, 88466 2023-28150 Social Social Security Administration NOTICES Privacy Act; Matching Program, 88466-88467 2023-28104 State Department State Department NOTICES Continental Shelf and Maritime Boundaries; Limits, 88470-88477 2023-28159 Exclusive Economic Zone and Maritime Boundaries; Limits, 88477-88483 2023-28158 Pilot Program: Resume Renewal of H-1B Nonimmigrant Visas in the United States for Certain Qualified Noncitizens, 88467-88470 2023-28160 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Federal Railroad Administration See Federal Transit Administration See Maritime Administration RULES Solicitation Provisions and Contract Clauses, 88261-88262 2023-27890 Treasury Treasury Department See Internal Revenue Service Veteran Affairs Veterans Affairs Department PROPOSED RULES Fee Reasonableness Reviews:

Effect of Loss of Accreditation on Direct Payment, 88295-88300 2023-28100 NOTICES Hearings, Meetings, Proceedings etc.: Veterans and Community Oversight and Engagement Board, 88490-88491 2023-28136 Veterans Employment Veterans Employment and Training Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Employment Navigator Data Collection and Matching, 88418-88419 2023-28087 Separate Parts In This Issue Part II Health and Human Services Department, 88494-88525 2023-27931 Labor Department, Employee Benefits Security Administration, 88494-88525 2023-27931 Treasury Department, Internal Revenue Service, 88494-88525 2023-27931 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. 88 244 Thursday, December 21, 2023 Rules and Regulations CONSUMER FINANCIAL PROTECTION BUREAU 12 CFR Part 1003 Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold AGENCY: Consumer Financial Protection Bureau.

ACTION: Final rule; official interpretation. SUMMARY: The Consumer Financial Protection Bureau

(CFPB)is amending the official commentary that interprets the requirements of the CFPB's Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 4.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2023, the exemption threshold is adjusted to $56 million from $54 million. Therefore, banks, savings associations, and credit unions with assets of $56 million or less as of December 31, 2023, are exempt from collecting data in 2024. DATES: This rule is effective on January 1, 2024. FOR FURTHER INFORMATION CONTACT: Anna Boadwee and Adrien Fernandez, Attorney-Advisors, Office of Regulations, at

(202)435-7700. If you require this document in an alternative electronic format, please contact *CFPB_Accessibility@cfpb.gov.* SUPPLEMENTARY INFORMATION: The CFPB is amending Regulation C, which implements the Home Mortgage Disclosure Act of 1975

(HMDA)asset thresholds, to establish the asset-sized exemption threshold for depository financial institution for 2024. The asset threshold will be $56 million for 2024. I. Background HMDA requires most mortgage lenders located in metropolitan areas to collect data about their housing-related lending activity. 1 Annually, lenders must report their data to the appropriate Federal agencies and make the data available to the public. The CFPB's Regulation C implements HMDA. 2 1 12 U.S.C. 2801-2810. 2 12 CFR part 1003. Prior to 1997, HMDA exempted certain depository institutions as defined in HMDA ( *i.e.,* banks, savings associations, and credit unions) with assets totaling $10 million or less as of the preceding year-end. In 1996, HMDA was amended to expand the asset-size exemption for these depository institutions. 3 The amendment increased the dollar amount of the asset-size exemption threshold by requiring a one-time adjustment of the $10 million figure based on the percentage by which the CPI-W for 1996 exceeded the CPI-W for 1975, and it provided for annual adjustments thereafter based on the annual percentage increase in the CPI-W, rounded to the nearest multiple of $1 million. 3 12 U.S.C. 2808(b). The definition of “financial institution” in § 1003.2(g) provides that the CFPB will adjust the asset threshold based on the year-to-year change in the average of the CPI-W, not seasonally adjusted, for each 12-month period ending in November, rounded to the nearest $1 million. For 2023, the threshold was $54 million. During the 12-month period ending in November 2023, the average of the CPI-W increased by 4.1 percent. As a result, the exemption threshold is increased to $56 million for 2024. Thus, banks, savings associations, and credit unions with assets of $56 million or less as of December 31, 2023, are exempt from collecting data in 2024. An institution's exemption from collecting data in 2024 does not affect its responsibility to report data it was required to collect in 2023. II. Procedural Requirements A. Administrative Procedure Act Under the Administrative Procedure Act (APA), notice and opportunity for public comment are not required if the CFPB finds that notice and opportunity for public comment are impracticable, unnecessary, or contrary to the public interest. 4 Pursuant to this final rule, comment 2(g)-2 in Regulation C, supplement I, is amended to update the exemption threshold. The amendment in this final rule is technical and non-discretionary, and it merely applies the formula established by Regulation C for determining any adjustments to the exemption threshold. For these reasons, the CFPB has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendment is adopted in final form. 4 5 U.S.C. 553(b)(B). Section 553(d) of the APA generally requires publication of a final rule not less than 30 days before its effective date, except in the case of

(1)a substantive rule which grants or recognizes an exemption or relieves a restriction;

(2)interpretive rules and statements of policy; or

(3)as otherwise provided by the agency for good cause found and published with the rule. 5 At a minimum, the CFPB has determined that the amendments fall under the third exception to section 553(d). The CFPB finds that there is good cause to make the amendments effective on January 1, 2024. The amendment in this final rule is technical and non-discretionary, and it applies the method previously established in the agency's regulations for determining adjustments to the threshold. 5 5 U.S.C. 553(d). 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. 6 As noted previously, the CFPB has determined that it is unnecessary to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA's requirement relating to an initial and final regulatory flexibility analysis does not apply. 6 5 U.S.C. 603(a), 604(a). C. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995, 7 the CFPB reviewed this final rule. The CFPB has determined that this rule does not create any new information collections or substantially revise any existing collections. 7 44 U.S.C. 3506; 5 CFR part 1320. D. Congressional Review Act Pursuant to the Congressional Review Act, the CFPB will submit a report containing this rule and other required information to the United States Senate, the United States House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. 8 The Office of Information and Regulatory Affairs

(OIRA)has designated this rule as not a “major rule” as defined by 5 U.S.C. 804(2). 8 5 U.S.C. 801 *et seq.* List of Subjects in 12 CFR Part 1003 Banks, banking, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations. Authority and Issuance For the reasons set forth above, the CFPB amends Regulation C, 12 CFR part 1003, as set forth below: PART 1003—HOME MORTGAGE DISCLOSURE (REGULATION C) 1. The authority citation for part 1003 continues to read as follows: Authority: 12 U.S.C. 2803, 2804, 2805, 5512, 5581. 2. Supplement I to part 1003 is amended under the heading *Section 1003.2—Definitions* by revising paragraph 2(g) Financial Institution to read as follows: Supplement I to Part 1003—Official Interpretations Section 1003.2—Definitions *2(g) Financial Institution* 1. *Preceding calendar year and preceding December 31.* The definition of financial institution refers both to the preceding calendar year and the preceding December 31. These terms refer to the calendar year and the December 31 preceding the current calendar year. For example, in 2019, the preceding calendar year is 2018 and the preceding December 31 is December 31, 2018. Accordingly, in 2019, Financial Institution A satisfies the asset-size threshold described in § 1003.2(g)(1)(i) if its assets exceeded the threshold specified in comment 2(g)-2 on December 31, 2018. Likewise, in 2020, Financial Institution A does not meet the loan-volume test described in § 1003.2(g)(1)(v)(A) if it originated fewer than 25 closed-end mortgage loans during either 2018 or 2019. 2. *Adjustment of exemption threshold for banks, savings associations, and credit unions.* For data collection in 2024, the asset-size exemption threshold is $56 million. Banks, savings associations, and credit unions with assets at or below $56 million as of December 31, 2023, are exempt from collecting data for 2024. *3. Merger or acquisition—coverage of surviving or newly formed institution.* After a merger or acquisition, the surviving or newly formed institution is a financial institution under § 1003.2(g) if it, considering the combined assets, location, and lending activity of the surviving or newly formed institution and the merged or acquired institutions or acquired branches, satisfies the criteria included in § 1003.2(g). For example, A and B merge. The surviving or newly formed institution meets the loan threshold described in § 1003.2(g)(1)(v)(B) if the surviving or newly formed institution, A, and B originated a combined total of at least 200 open-end lines of credit in each of the two preceding calendar years. Likewise, the surviving or newly formed institution meets the asset-size threshold in § 1003.2(g)(1)(i) if its assets and the combined assets of A and B on December 31 of the preceding calendar year exceeded the threshold described in § 1003.2(g)(1)(i). Comment 2(g)-4 discusses a financial institution's responsibilities during the calendar year of a merger. *4. Merger or acquisition—coverage for calendar year of merger or acquisition.* The scenarios described below illustrate a financial institution's responsibilities for the calendar year of a merger or acquisition. For purposes of these illustrations, a “covered institution” means a financial institution, as defined in § 1003.2(g), that is not exempt from reporting under § 1003.3(a), and “an institution that is not covered” means either an institution that is not a financial institution, as defined in § 1003.2(g), or an institution that is exempt from reporting under § 1003.3(a). i. Two institutions that are not covered merge. The surviving or newly formed institution meets all of the requirements necessary to be a covered institution. No data collection is required for the calendar year of the merger (even though the merger creates an institution that meets all of the requirements necessary to be a covered institution). When a branch office of an institution that is not covered is acquired by another institution that is not covered, and the acquisition results in a covered institution, no data collection is required for the calendar year of the acquisition. ii. A covered institution and an institution that is not covered merge. The covered institution is the surviving institution, or a new covered institution is formed. For the calendar year of the merger, data collection is required for covered loans and applications handled in the offices of the merged institution that was previously covered and is optional for covered loans and applications handled in offices of the merged institution that was previously not covered. When a covered institution acquires a branch office of an institution that is not covered, data collection is optional for covered loans and applications handled by the acquired branch office for the calendar year of the acquisition. iii. A covered institution and an institution that is not covered merge. The institution that is not covered is the surviving institution, or a new institution that is not covered is formed. For the calendar year of the merger, data collection is required for covered loans and applications handled in offices of the previously covered institution that took place prior to the merger. After the merger date, data collection is optional for covered loans and applications handled in the offices of the institution that was previously covered. When an institution remains not covered after acquiring a branch office of a covered institution, data collection is required for transactions of the acquired branch office that take place prior to the acquisition. Data collection by the acquired branch office is optional for transactions taking place in the remainder of the calendar year after the acquisition. iv. Two covered institutions merge. The surviving or newly formed institution is a covered institution. Data collection is required for the entire calendar year of the merger. The surviving or newly formed institution files either a consolidated submission or separate submissions for that calendar year. When a covered institution acquires a branch office of a covered institution, data collection is required for the entire calendar year of the merger. Data for the acquired branch office may be submitted by either institution. *5. Originations.* Whether an institution is a financial institution depends in part on whether the institution originated at least 25 closed-end mortgage loans in each of the two preceding calendar years or at least 200 open-end lines of credit in each of the two preceding calendar years. Comments 4(a)-2 through -4 discuss whether activities with respect to a particular closed-end mortgage loan or open-end line of credit constitute an origination for purposes of § 1003.2(g). *6. Branches of foreign banks—treated as banks.* A Federal branch or a State-licensed or insured branch of a foreign bank that meets the definition of a “bank” under section 3(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(a)) is a bank for the purposes of § 1003.2(g). *7. Branches and offices of foreign banks and other entities—treated as nondepository financial institutions.* A Federal agency, State-licensed agency, State-licensed uninsured branch of a foreign bank, commercial lending company owned or controlled by a foreign bank, or entity operating under section 25 or 25A of the Federal Reserve Act, 12 U.S.C. 601 and 611 (Edge Act and agreement corporations) may not meet the definition of “bank” under the Federal Deposit Insurance Act and may thereby fail to satisfy the definition of a depository financial institution under § 1003.2(g)(1). An entity is nonetheless a financial institution if it meets the definition of nondepository financial institution under § 1003.2(g)(2). Brian Shearer, Senior Advisor, Consumer Financial Protection Bureau. [FR Doc. 2023-28079 Filed 12-20-23; 8:45 am]

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