The Board is amending Regulation D (Reserve Requirements of Depository Institutions) to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2021. More... The annual indexation of these amounts is required notwithstanding the Board’s action in March 2020 setting all reserve requirement ratios to zero. The Regulation D amendments set the reserve requirement exemption amount for 2021 at $21.1 million of reservable liabilities (up from $16.9 million in 2020). The Regulation D amendments also set the amount of net transaction accounts at each depository institution (over the reserve requirement exemption amount) that could be subject to a reserve requirement ratio of not more than 3 percent (and which may be zero) in 2021 at $182.9 million (up from $127.5 million in 2020). This amount is known as the low reserve tranche. The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act. The annual indexation of the reserve requirement exemption amount and low reserve tranche, though required by statute, will not affect depository institutions’ reserve requirements, which will remain zero.

The Board is also announcing changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports. More... The final rule is effective January 11, 2021 (Regulation D, Docket R-1733) and was published in the Federal Register on December 11, 2020.

The Board published a final rule that applies an inflation adjustment to the threshold for total consolidated assets in Regulation I. More... Federal Reserve Bank stockholders that have total consolidated assets above the threshold receive a different dividend rate on their Reserve Bank stock than stockholders with total consolidated assets at or below the threshold. The Federal Reserve Act requires that the Board annually adjust the total consolidated asset threshold to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis (BEA). Based on the change in the Gross Domestic Product Price Index as of September 30, 2020, the total consolidated asset threshold will be $10,785,000,000 through December 31, 2021. The final rule is effective January 11, 2021 (Regulation I, Docket R-1732) and was published in the Federal Register on December 10, 2020.

On December 22, 2020, the Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a Revised Statement Regarding Status of Certain Investment Funds and Their Portfolio Investments for Purposes of Regulation O and Reporting Requirements under Part 363 of FDIC Regulations. More... The revised statement supersedes the original statement that was issued on December 27, 2019, and that expired on January 1, 2021. The revised statement explains that the federal banking agencies will exercise discretion to not take enforcement action against banks or asset managers that become principal shareholders of banks with respect to certain extensions of credit by banks that otherwise would violate Regulation O. The agencies are extending this temporary relief while the Board, in consultation with the other federal banking agencies, considers whether to amend Regulation O. The interagency statement also sets forth the eligibility criteria for this relief (Regulation O).

The Board adopted a final rule to amend the Board’s assessment rule, Regulation TT, pursuant to section 318 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), to address amendments made by section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). More... The final rule raises the minimum threshold for being considered an assessed company from $50 billion to $100 billion in total consolidated assets for bank holding companies and savings and loan holding companies and adjusts the amount charged to assessed companies with total consolidated assets between $100 billion and $250 billion to reflect changes in supervisory and regulatory responsibilities resulting from EGRRCPA. The final rule is effective January 7, 2021 (Regulation TT, Docket R-1683) and was published in the Federal Register on December 8, 2020.

The Board and the Consumer Financial Protection Bureau (CFPB) finalized amendments to the official interpretations and commentary for the agencies’ regulations that implement the Consumer Leasing Act (CLA). More... The Dodd-Frank Act amended the CLA by requiring that the dollar threshold for exempt consumer leases be adjusted annually by the 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 Board and the CFPB will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, 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. Based on the annual percentage increase in the CPI-W as of June 1, 2020, the exemption threshold will remain at $58,300. The final rule is effective January 1, 2021 (Regulation M and Consumer Financial Protection Bureau, Regulation M, Docket R-1727) and was published in the Federal Register on December 10, 2020.

The Board, the CFPB, and the OCC finalized 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. More... The Board, the CFPB, the FDIC, the Federal Housing Finance Agency, the National Credit Union Administration, and the OCC 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 CPI-W. If there is no annual percentage increase in the CPI-W, the Board, the CFPB, and the OCC will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, 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, 2020, the exemption threshold will remain at $27,200. The final rule is effective January 1, 2021 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R-1729) and was published in the Federal Register on December 10, 2020.

The Board and the CFPB are amending the official interpretations and commentary for the agencies’ regulations that implement TILA. The Dodd-Frank Act amended TILA by requiring that the dollar threshold for exempt consumer credit transactions be adjusted annually by the annual percentage increase in the CPI-W. More... If there is no annual percentage increase in the CPI-W, the Board and the CFPB will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, 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. Based on the annual percentage increase in the CPI-W as of June 1, 2020, the exemption threshold will remain at $58,300. The final rule is effective January 1, 2021 (Regulation Z and Consumer Financial Protection Bureau, Regulation Z, Docket R-1728) and was published in the Federal Register on December 10, 2020.

The Board and the FDIC amended their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” and “intermediate small bank.” More... As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the CPI-W. The final rule is effective January 1, 2021 (Regulation BB, Docket R-1735) and was published in the Federal Register on December 23, 2020.

The 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 CPI-W. More... Based on the 1.3 percent increase in the average of the CPI-W for the 12-month period ending in November 2020, the exemption threshold is adjusted to $48 million from $47 million. Therefore, banks, savings associations, and credit unions with assets of $48 million or less as of December 31, 2020, are exempt from collecting data in 2021. The final rule is effective January 1, 2021 (Consumer Financial Protection Bureau, Regulation C) and was published in the Federal Register on December 22, 2020.

The CFPB is amending the official commentary that interprets the requirements of the CFPB’s Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan. More... This amendment is based on the annual percentage change in the average of the CPI-W. Based on the 1.3 percent increase in the average of the CPI-W for the 12-month period ending in November 2020, the exemption threshold is adjusted to $2.230 billion from $2.202 billion. Therefore, creditors with assets of less than $2.230 billion (including assets of certain affiliates) as of December 31, 2020, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2021. The final rule is effective January 1, 2021 (Consumer Financial Protection Bureau, Regulation Z) and was published in the Federal Register on December 22, 2020.

The CFPB is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA). More... The CFPB is required to calculate annually the dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to section 609 of the FCRA (15 U.S.C. 1681g); this final rule establishes the maximum allowable charge for the 2021 calendar year. The final rule is effective January 1, 2021 (Consumer Financial Protection Bureau, Regulation V) and was published in the Federal Register on December 23, 2020.

Pursuant to the provisions of the Privacy Act of 1974, notice was given that the Board proposes to modify existing system of records BGFRS-23 “FRB—Freedom of Information Act and Privacy Act Case Tracking and Reporting System.” More... The system, which the Board proposes to rename as BGFRS-23 “FRB—Freedom of Information Act and Privacy Act Case Automation System,” contains tracking, reporting, and processing information for Freedom of Information Act and Privacy Act requests. The modified system of records will become effective January 21, 2021, without further notice, unless comments dictate otherwise (Rules Regarding Access to Personal Information under the Privacy Act of 1974, Systems of Records of the Federal Reserve System). The modified system of records was published in the Federal Register on December 21, 2020.

The Board proposes to amend its Regulation D (Reserve Requirements of Depository Institutions) to eliminate references to an “interest on required reserves” rate and to an “interest on excess reserves” rate and replace them with a reference to a single “interest on reserve balances” rate. More... The Board also proposes to simplify the formula used to calculate the amount of interest paid on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks, and to make other conforming changes. Comments on this notice of proposed rulemaking must be received by March 9, 2021 (Docket R-1737).