ROCIS_OMWI Bank Director Data Supporting Statement

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"MINORITY AND WOMEN INCLUSION"

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THFA

0MB NUMBER 2590-0014

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SUPPORTINGSTATEMENT

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A.

JUSTIFICATION

1. Circumstances Necessitatingthe Collection of Information
The FederalHousingFinanceAgency(FHFA) is seekingrenewal ofthe 0MB Paperwork
ReductionAct (PRA) clearance for the collection ofinformationregardingtheminority and gender
classificationofindividualsserving on theboards ofdirectors ofthe FederalHome LoanBanks
(Banks) andofthe OfficeofFinanceunder FHFA'sregulations on Minority andWomenInclusion
(MWI), which are codified at 12 CFR part 1223.
The FederalHome LoanBank System (Bank System) consists ofelevenregional Banks and the
Office of Finance, which issues and sendees the Banks' debt securities. The Banks are wholesale

financialinstitutions, organizedunder authority ofthe FederalHome LoanBankAct (BankAct) to
serve the public interest by enhancingthe availabilityofresidentialhousingfinanceand
community lending credit through their member institutions and, to a limited extent, through
certain eligible non-member entities. Each Bank is structured as a regional cooperative that is
ownedandcontrolled by member financialinstitutions locatedwithin its district, whichare also its
primary customers. The Bank Act vests the management of each Bank in a board ofdirectors that
consists oftwo types ofdirectors: (1) member directors, who are drawnfrom the officers and
directors ofmemberinstitutions located in the Bank's district andwho are elected to represent
members in a particular state in that district; and (2) independent directors, who are unaffiliated
with anyofthe Bank's memberinstitutions, but whoresidein the Bank's district andare elected on

an at-large basis. ' The Office ofFinance is also governed by a board ofdirectors, which consists
ofthe presidents ofthe eleven Banks and five independent directors.2
Section 1319Aofthe FederalHousingEnterprisesFinancialSafetyand SoundnessAct of 1992
(Safetyand SoundnessAct) requires that eachofthe Banks establishan OfficeofMinority and
WomenInclusion(OMWI)to be responsible for all matters relating to diversityin its management,

employment, andbusiness activities, in accordance with requirements established by FHFA.3
Section 1319A also requires that each Bank implement standards and procedures to ensure, to the
maximum extent possible, the inclusion and utilization ofwomen and minorities "at all levels" of

' See12U.S.C. §§ 1427(a)(l), (b), (d).
2 See 12 CFR§ 1273.7(a).
35ecl2U.S.C. §4520(a).

its business and activities, and submit an annual report to FHFA detailing actions taken to achieve

those goals.
FHFA's MWI regulations implement those statutory requirements and also extend the requirements

to the OfficeofFinance. Theregulations require generallythat eachBank andthe Officeof
Finance"develop, implement, andmaintainpolicies andproceduresto ensure, to themaximum
extent possiblein balancewith financiallysafeand soundbusinesspractices, the inclusion and
utilizationofminorities, women, individualswith disabilities, andminority-, women-, and
disabled-ownedbusinessesin all businessand activities and at all levels oftheregulated entity,

including in management, employment, procurement, insurance, and all types ofcontracts. "5 In
recognitionofthe fact that eachBankis requiredby statute to promote diversity andinclusion"at
all levels" ofits businessandactivities, the MWIregulations furtherrequirethat the Banks'
policies andprocedures (as well as those ofthe OfficeofFinance)"[ejncouragethe consideration
ofdiversityin nominatingor solicitingnominees for positions onboards ofdirectors and engagein
recruiting andoutreachdirected at encouragingindividualswho areminorities, women and

individuals with disabilities to seek or apply for employment with theregulated entity."
In conformitywith the statutory requirements, FHFA'sMWIregulations require that eachBank
andthe OfficeofFinancesubmitto FHFAan annualreport describing, amongotherthings, its
efforts to promote diversity at all levels ofmanagementandemployment, andthe results ofthose

efforts. 7 In order to provide a quantitative basis upon whichto assess the results ofthose efforts,
FHFA'sregulationsrequire that eachBank andthe OfficeofFinanceset forth in theirrespective
annual reports the demographic data reported on the EEO-1 form, which they are required to file

annually with the Equal Employment Opportunity Commission (EEOC). 8 The EEO-1 form
requires that eachrespondentproviderace, ethnicity, and genderinformationfor its employees,
broken downinto variousjob categories. Becausethe EEO-1 form does not require that a
respondentprovide information on its boarddirectors, FHFAcannotuse the EEO-1 datato assess
the effectiveness ofthe Bank System's efforts to "encourage the consideration of diversity in
nominating or soliciting nominees for positions on boards of directors."
In orderto provide the datanecessaryto assessthose efforts, the MWIregulations separately
require that the annualreports set forth "[d]atashowingfor thereporting yearby minority and
gender classification, the number of individuals on the board of directors of each Bank and the
OfficeofFinance," usingthe sameracial and ethnic classificationsthat areused on the EEO-1
form (which comply with 0MB's "StatisticalPolicyDirectiveNo. 15, RaceandEthnic Standards

for Federal Statistics andAdministrative Reporting"). 9 The regulation requires that eachBank and
the Office of Finance collect that data "through an information collection requesting each director's

voluntary self-identification ofhis or her minority and gender classification without personally
identifiable information."

4Seel2U.S.C. §§4520(b), (d).
5 See 12 CFR § 1223. 21(b).

6Seel2CFR§1223.21(b)(7).
7Se<2l2CFR§ 1223. 22(a).

8 See 12 CFR§ 1223.23(b)(l). As requiredby29 CFR§ 1602.7, eachBankandthe OfficeofFinanceannuallyfiles an
EEO-1 form with the EEOC.

9 See 12 CFR§ 1223.23(b)(10)(i).
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2. Use of Data
FHFA uses the information collected under this control number to assess the effectiveness of the

policies andprocedures that eachBank andthe OfficeofFinanceis requiredto implement to
promote diversityin all ofits businessand activities "at all levels" and, specifically, to encourage
diversityin the nominationand solicitationofnominees for members ofits boardsofdirectors.
FHFAalso usesthe informationto establisha baselineto analyzefuture trends relatedto the
diversityoftheboards ofdirectors ofthe Banks andthe OfficeofFinanceandto assessthe
effectiveness ofthe strategies developedby the Banksandthe OfficeofFinancefor promoting,
developing, and retaining diverse board talent.
3. Use of Information Technology
The MWIregulation doesnot specifythe methodby whichthe Banks andthe OfficeofFinanceare
to collect the demographicinformation, otherthanto require that it be donein a waythat does not
gamerpersonally identifiableinformation. Typically, the Banks andthe OfficeofFinancecollect
the information electronically, by emailing to each of their board directors a link where each

directormay anonymouslyreport his or her demographicinformation.
4. Efforts to Identify Duplication
This information collection is not duplicative because the demographic information collected is not

available from any other source. Existing § 1223. 23(b)(l) requires that the annual report include
demographic data required to be reported on the EEO-1 form, which each Bank and the Office of
Financearerequiredto file withthe EEOCpursuantto Title VII ofthe Civil RightsAct of 1964, as

amended, and EEOC's implementing regulations. ° This avoids duplication by allowing the Banks
andthe OfficeofFinanceto submit demographicinformationregardingtheir employees thatthey
are alreadyrequiredto collect to satisfythoseother statutory andregulatoryrequirements.
However, becausethejob categoriesincludedon the EEO-1 form do not pertainto members of
boards ofdirectors, demographicinformation for directors must be collected separately.
5. Impact on Small Entities

The information collection is directed at individualsonly and, therefore, does not havea significant
economicimpact on a substantialnumberofsmall entities.
6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction

If the demographicinformation for boarddirectors is not collected annuallywith the other
informationrequiredto beincludedin the annualrqwrts filedby the Banks andthe Officeof
Finance,FHFAwill not be ableto assess fully the effectivenessofthepolicies andprocedureseach
is requiredto implement to promote diversity in all ofits businessand activities "at all levels" and,
10 See 42 U. S. C. § 2000e, et seq. ; 29 CFR § 1602. 7. The EEOC has received PRA clearance from 0MB to carry out
the EEO-1 information collection under control #3046-0007.
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specifically, to encourage diversity in the nomination and solicitation ofnominees for members of
its boards of directors.

7. Circumstances RequiringSpecialInformation Collection
There areno special circumstancesrequiringthe information collection to be conductedin a
mannerinconsistentwith the guidelinesprovidedin Item 7.
8. Solicitation of Comments on Information Collection

In accordancewiththe requirements of5 CFR 1320.8(d), FHFApublisheda request for public

comments regarding this information collection in the Federal Register on May 16, 2018. n The
60-daycomment period closed on July 16, 2018. FHFAreceivedno comment letters.
9. Provision of Payments or Gifts to Respondents

No payment or gift is provided to any respondent.
10. Assurance of Confidentiality

The Banks, the OfficeofFinance, and FHFAwill maintainthe confidentialityofinformation
obtained from respondents as required by applicable statute, regulation, and agency policy.
11. Questions of a Sensitive Nature

The information collection requests information regarding an individual's minority and gender
classification using the same classifications as those used on the EEO-1 form.
12. Estimates of the Hour Burden of the Information Collection

The estimated annualizedhourburdenimposeduponrespondentsby this informationcollection is
20 hours. This estimate is based on the following calculations:

Board director receives email link to electronic form and completes form:
.

Time per response:

0. 1 hours

.

Total respondents:

.

Total hours:

200 directors
20

13. Estimated Total Annualized Cost Burden to Respondents

Therewill be no costs imposedupon the respondentsby this information collection.
u See83 FR22684 (May 16, 2018).

14. Estimated Cost to the Federal Government

The estimated annual costburdento the Federal government is $0.
15. Reasons for Changein Burden
FHFA's estimate for the total burden associated with this information collection has decreased by
one hour, from 21 to 20 hours. This is becausethe maximum total number of Bank and Office of

Finance board directors who would be asked to provide their demographic data has decreased from
210 to 200.
16. Plans for Tabulation, Statistical Analysis, and Publication

The results ofthis information collection maybepublishedin aggregatedform in FHFA's annual
report to Congress, showingsummedtotals andpercentages amongthe demographiccategories.
There will be no statistical analysis.

17. If SeekingApproval to Not Displaythe ExpirationDate for 0MB Approval ofthe
Information Collection, Explainthe ReasonsWhyDisplayWould Be Inappropriate
FHFAplans to displaythe expirationdate for 0MB approval.
18. ExplainEachException to the Topics ofthe Certification Statement Identifiedin
"Certification for Paperwork Reduction Act Submission."
There are no exceptions to the certification statement identified in Item 18.

B. COLLECTIONOF INFORMATIONEMPLOYINGSTATISTICALMETHODS
This information collection doesnot employ statisticalmethods.