FINAL RULE--AMENDMENT TO RULES REGARDING DELEGATION OF AUTHORITY.

The Board of Governors is amending 12 C.F.R. Part 265, its Rules Regarding Delegation of Authority, pursuant to sections 11(i) and (k) of the Federal Reserve Act (12 U.S.C. 248(i) and (k)). Specifically, the Board is revising and expanding the delegation of authority to the Director of Division of Consumer and Community Affairs to include: issuing interpretations under the Fair Credit Reporting Act, adjusting the dollar amount to determine coverage under the Home Ownership and Equity Protection Act, adjusting the depository institution exemption threshold under the Home Mortgage Disclosure Act, making certain determinations under the Community Reinvestment Act regulations, and holding public hearings on financial service issues in keeping with congressional mandates.

Effective December 28, 1998, 12 C.F.R. Part 265 is amended as follows:

Part 265--Rules Regarding Delegation of Authority

1. The authority citation for Part 265 continues to read as follows:

Authority: 12 U.S.C. 248(i) and (k).

2. Section 265.9 is amended by revising paragraphs (a) introductory text, (a)(1), (c)(1), (c)(4), and (c)(5), and adding new paragraphs (a)(8) and (d) through (g). The revisions and additions read as follows:

Section 265.9 Functions delegated to the Director of Division of Consumer and Community Affairs.

(a) Issuing examination manuals, forms, and other materials. To issue examination or inspection manuals; report, agreement, and examination forms; examination procedures, guidelines, instructions, and other similar materials pursuant to: section 11(a) of the Federal Reserve Act (12 U.S.C. 248(a)); sections 108(b), 621(c), 704(b), 814(c), and 917(b) of the Consumer Credit Protection Act (15 U.S.C. 1607(b), 1681s(b), 1691c(b), 16921(c) and 1693o(b)); section 305(c) of the Home Mortgage Disclosure Act (12 U.S.C. 2804(c)); section 18(f)(3) of the Federal Trade Commission Act (15 U.S.C. 57a(f)(3)); section 808(c) of the Civil Rights Act of 1968 (42 U.S.C. 3608(c)); section 270(b) of the Truth in Savings Act (12 U.S.C. 4309); and section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(c)). The foregoing manuals, forms, and other materials are for use within the Federal Reserve System in the administration of enforcement responsibilities in connection with:

   (1) Sections 1-200 and 501-921 of the Consumer Credit Protection Act (15
   U.S.C. 1601-1693r), in regard to the Truth in Lending Act, the Consumer
   Leasing Act, the Equal Credit Opportunity Act, the Electronic Fund Transfer
   Act, the Fair Credit Reporting Act and the Fair Debt Collection Practices
   Act;

(8) Sections 261-274 of the Truth in Savings Act (12 U.S.C. 4301-4313).

(c) Determining inconsistencies between state and federal laws. * * *

   (1) Sections 111, 171(a) and 186(a) of the Truth in Lending Act (15 U.S.C.
   1610(a), 1666j(a), 1667e(a)) and section 226.28 of Regulation Z (12 C.F.R.
   Part 226) and section 213.7 of Regulation M (12 C.F.R. Part 213);

   (4) Section 306(a) of the Home Mortgage Disclosure Act (12 U.S.C. 2805(a))
   and section 203.3 of Regulation C (12 C.F.R. Part 203); and

   (5) Section 273 of the Truth in Savings Act (12 U.S.C. 4312) and section
   230.1 of Regulation DD (12 C.F.R. Part 230).

(d) Interpreting the Fair Credit Reporting Act. To issue interpretations pursuant to section 621(e) of the Fair Credit Reporting Act (15 U.S.C. 1681s(e));

(e) Annual adjustments. To adjust as required by law:

   (1) The amount specified in section 103(aa)(1)(B)(ii) of the Truth in
   Lending Act and section 226.32(a)(1)(ii) of Regulation Z (12 C.F.R. Part
   226), relating to mortgages bearing fees above a certain amount in accord
   with section 103(aa)(3) of that act (15 U.S.C. 1602(aa)); and

   (2) The amount specified in section 309(b)(1) of the Home Mortgage
   Disclosure Act (12 U.S.C. 2808(b)(1)) and section 203.3(a)(1)(ii) of
   Regulation C (12 C.F.R. Part 203) relating to the asset threshold above
   which a depository institution must collect and report data.

(f) Community Reinvestment Act determinations. To make determinations, pursuant to section 804 of the Community Reinvestment Act (12 U.S.C. 2903), approving or disapproving:

   (1) Strategic plans and any amendments thereto pursuant to section
   228.27(g) and (h) of Regulation BB (12 C.F.R. Part 228); and

   (2) Requests for designation as a wholesale or limited purpose bank or the
   revocation of such designation, pursuant to section 228.25(b) of Regulation
   BB (12 C.F.R. Part 228).

(g) Public hearings. To conduct hearings or other proceedings required by law, concerning consumer law or other matters within the responsibilities of the Division of Consumer and Community Affairs, in consultation with other interested divisions of the Board where appropriate.