Agency Information Collection Activities: Information Collection Renewal; Comment Request; Credit Risk Retention, 4121-4124 [2018-01521]
Download as PDF
<![CDATA[
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices
Communications received by March
15, 2018 will be considered by FRA
before final action is taken. Comments
received after that date will be
considered if practicable.
Anyone can search the electronic
form of any written communications
and comments received into any of our
dockets by the name of the individual
submitting the comment (or signing the
document, if submitted on behalf of an
association, business, labor union, etc.).
Under 5 U.S.C. 553(c), DOT solicits
comments from the public to better
inform its processes. DOT posts these
comments, without edit, including any
personal information the commenter
provides, to www.regulations.gov, as
described in the system of records
notice (DOT/ALL–14 FDMS), which can
be reviewed at https://
www.transportation.gov/privacy. See
also https://www.regulations.gov/
privacyNotice for the privacy notice of
regulations.gov.
Robert C. Lauby,
Associate Administrator for Railroad Safety
Chief Safety Officer.
[FR Doc. 2018–01582 Filed 1–26–18; 8:45 am]
BILLING CODE 4910–06–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Information Collection
Renewal; Comment Request; Credit
Risk Retention
Office of the Comptroller of the
Currency (OCC), Treasury.
ACTION: Notice and request for comment.
AGENCY:
The OCC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other federal
agencies to take this opportunity to
comment on a continuing information
collection as required by the Paperwork
Reduction Act of 1995 (PRA). In
accordance with the requirements of the
PRA, the OCC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The OCC is
soliciting comment concerning the
renewal of its information collection
titled, ‘‘Credit Risk Retention.’’
DATES: You should submit written
comments by March 30, 2018.
ADDRESSES: Because paper mail in the
Washington, DC area and at the OCC is
sradovich on DSK3GMQ082PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
18:19 Jan 26, 2018
Jkt 244001
subject to delay, commenters are
encouraged to submit comments by
email, if possible. Comments may be
sent to: Legislative and Regulatory
Activities Division, Office of the
Comptroller of the Currency, Attention:
1557–0249, 400 7th Street SW, Suite
3E–218, Washington, DC 20219. In
addition, comments may be sent by fax
to (571) 465–4326 or by electronic mail
to prainfo@occ.tress.gov. You may
personally inspect and photocopy
comments at the OCC, 400 7th Street
SW, Washington, DC 20219. For
security reasons, the OCC requires that
visitors make an appointment to inspect
comments. You may do so by calling
(202) 649–6700 or, for persons who are
deaf or hearing impaired, TTY, (202)
649–5597. Upon arrival, visitors will be
required to present valid governmentissued photo identification and submit
to security screening in order to inspect
and photocopy comments.
All comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT:
Shaquita Merritt, OCC Clearance
Officer, (202) 649–5490 or, for persons
who are deaf or hearing impaired, TTY,
(202) 649–5597, Legislative and
Regulatory Activities Division, Office of
the Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
SUPPLEMENTARY INFORMATION: Under the
PRA (44 U.S.C. 3501–3520), federal
agencies must obtain approval from the
OMB for each collection of information
that they conduct or sponsor.
‘‘Collection of information’’ is defined
in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) to include agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party. Section
3506(c)(2)(A) of title 44 requires federal
agencies to provide a 60-day notice in
the Federal Register concerning each
proposed collection of information,
including each proposed extension of an
existing collection of information,
before submitting the collection to OMB
for approval. To comply with this
requirement, the OCC is publishing
notice of the proposed collection of
information set forth in this document.
Title: Credit Risk Retention.
OMB Control No.: 1557–0249.
Affected Public: Business or other forprofit.
Type of Review: Regular review.
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
4121
Abstract: This information collection
request relates to 12 CFR part 43, which
implemented section 941(b) of the
Dodd-Frank Act.1 Section 941(b) of the
Dodd-Frank Act required the OCC,
Board of Governors of the Federal
Reserve System (FRB), Federal Deposit
Insurance Corporation (FDIC), Securities
and Exchange Commission (SEC), and,
in the case of the securitization of any
residential mortgage asset, the Federal
Housing Finance Agency (FHFA), and
the Department of Housing and Urban
Development (HUD) to issue rules that,
subject to certain exemptions: Require a
securitizer to retain not less than 5% of
the credit risk of any asset that the
securitizer, through the issuance of an
asset-backed security, transfers, sells, or
conveys to a third party; and prohibit a
securitizer from directly or indirectly
hedging or otherwise transferring the
credit risk that the securitizer is
required to retain under the statute and
implementing regulations.
Part 43 sets forth permissible forms of
risk retention for securitizations that
involve issuance of asset-backed
securities. Section 15G of the Exchange
Act also exempts certain types of
securitization transactions from these
risk retention requirements and
authorizes the agencies to exempt or
establish a lower risk retention
requirement for other types of
securitization transactions. Section 15G
also states that the agencies must permit
a securitizer to retain less than five
percent of the credit risk of commercial
mortgages, commercial loans, and
automobile loans that are transferred,
sold, or conveyed through the issuance
of ABS by the securitizer if the loans
meet underwriting standards
established by the federal banking
agencies.2
Part 43 sets forth permissible forms of
risk retention for securitizations that
involve issuance of asset-backed
securities, as well as exemptions from
the risk retention requirements, and
contains requirements subject to the
PRA.
Section 43.4 sets forth the conditions
that must be met by sponsors electing to
use the standard risk retention option,
which may consist of an eligible vertical
interest or an eligible horizontal
residual interest, or any combination
thereof. Sections 43.4(c)(1) and
43.4(c)(2) specify the disclosures
required with respect to eligible
horizontal residual interests and eligible
vertical interests, respectively.
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act (Pub. L. 111–203, 124 Stat. 1376
(July 21, 2010)).
2 15 U.S.C. 78o–11(c)(1)(B)(ii) and (2).
E:\FR\FM\29JAN1.SGM
29JAN1
sradovich on DSK3GMQ082PROD with NOTICES
4122
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices
A sponsor retaining any eligible
horizontal residual interest (or funding
a horizontal cash reserve account) is
required to disclose: The fair value (or
a range of fair values and the method
used to determine such range) of the
eligible horizontal residual interest that
the sponsor expects to retain at the
closing of the securitization transaction
(§ 43.4(c)(1)(i)(A)); the material terms of
the eligible horizontal residual interest
(§ 43.4(c)(1)(i)(B)); the methodology
used to calculate the fair value (or range
of fair values) of all classes of ABS
interests (§ 43.4(c)(1)(i)(C)); the key
inputs and assumptions used in
measuring the estimated total fair value
(or range of fair values) of all classes of
ABS interests (§ 43.4(c)(1)(i)(D)); the
reference data set or other historical
information used to develop the key
inputs and assumptions
(§ 43.4(c)(1)(i)(G)); the fair value of the
eligible horizontal residual interest
retained by the sponsor
(§ 43.4(c)(1)(ii)(A)); the fair value of the
eligible horizontal residual interest
required to be retained by the sponsor
(§ 43.4(c)(1)(ii)(B)); a description of any
material differences between the
methodology used in calculating the fair
value disclosed prior to sale and the
methodology used to calculate the fair
value at the time of closing
(§ 43.4(c)(1)(ii)(C)); and the amount
placed by the sponsor in the horizontal
cash reserve account at closing, the fair
value of the eligible horizontal residual
interest that the sponsor is required to
fund through such account, and a
description of such account
(§ 43.4(c)(1)(iii)).
For eligible vertical interests, the
sponsor is required to disclose: The
form of the eligible vertical interest
(§ 43.4(c)(2)(i)(A)); the percentage that
the sponsor is required to retain
(§ 43.4(c)(2)(i)(B)); a description of the
material terms of the vertical interest
and the amount the sponsor expects to
retain at closing (§ 43.4(c)(2)(i)(C)); and
the amount of vertical interest retained
by the sponsor at closing
((§ 43.4(c)(2)(ii)).
Section 43.4(d) requires a sponsor to
retain the certifications and disclosures
required in paragraphs (a) and (c) of this
section in its records and must provide
the disclosure upon request to the
Commission and the sponsor’s
appropriate federal banking agency, if
any, until three years after all ABS
interests are no longer outstanding.
Section 43.5(k) requires sponsors
relying on the master trust (or revolving
pool securitization) risk retention option
to disclose: The material terms of the
seller’s interest and the percentage of
the seller’s interest that the sponsor
VerDate Sep<11>2014
18:19 Jan 26, 2018
Jkt 244001
expects to retain at the closing of the
transaction (§ 43.5(k)(1)(i)); the
percentage of the seller’s interest that
the sponsor retained at closing
(§ 43.5(k)(1)(ii)); the material terms of
any horizontal risk retention offsetting
the seller’s interest under § 43.5(g),
§ 43.5(h) and § 43.5(i) (§ 43.5(k)(1)(iii));
and the fair value of any horizontal risk
retention retained by the sponsor
(§ 43.5(k)(1)(iv)). Additionally, a
sponsor must retain the disclosures
required in § 43.5(k)(1) in its records
and must provide the disclosure upon
request to the Commission and the
sponsor’s appropriate federal banking
agency, if any, until three years after all
ABS interests are no longer outstanding
(§ 43.5(k)(3)).
Section 43.6 addresses the
requirements for sponsors utilizing the
eligible ABCP conduit risk retention
option. The requirements for the eligible
ABCP conduit risk retention option
include disclosure to each purchaser of
ABCP and periodically to each holder of
commercial paper issued by the ABCP
conduit of the name and form of
organization of the regulated liquidity
provider that provides liquidity
coverage to the eligible ABCP conduit,
including a description of the material
terms of such liquidity coverage, and
notice of any failure to fund; and with
respect to each ABS interest held by the
ABCP conduit, the asset class or brief
description of the underlying
securitized assets, the standard
industrial category code for each
originator-seller that retains an interest
in the securitization transaction, and a
description of the percentage amount
and form of interest retained by each
originator-seller (§ 43.6(d)(1)). An ABCP
conduit sponsor relying upon this
section shall provide, upon request, to
the Commission and the sponsor’s
appropriate Federal banking agency, if
any, the information required under
§ 43.6(d)(1), in addition to the name and
form of organization of each originatorseller that retains an interest in the
securitization transaction (§ 43.6(d)(2)).
A sponsor relying on the eligible
ABCP conduit risk retention option
shall maintain and adhere to policies
and procedures to monitor compliance
by each originator-seller which is
satisfying a risk retention obligation in
respect to ABS interests acquired by an
eligible ABCP conduit (§ 43.6(f)(2)(i)). If
the ABCP conduit sponsor determines
that an originator-seller is no longer in
compliance, the sponsor must promptly
notify the holders of the ABCP, and
upon request, the Commission and the
sponsor’s appropriate federal banking
agency, in writing of the name and form
of organization of any originator-seller
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
that fails to retain, and the amount of
ABS interests issued by an intermediate
SPV of such originator-seller and held
by the ABCP conduit
(§ 43.6(f)(2)(ii)(A)(1)); the name and
form of organization of any originatorseller that hedges, directly or indirectly
through an intermediate SPV, its risk
retention in violation of the rule, and
the amount of ABS interests issued by
an intermediate SPV of such originatorseller and held by the ABCP conduit
(§ 43.6(f)(2)(ii)(A)(2)); and any remedial
actions taken by the ABCP conduit
sponsor or other party with respect to
such ABS interests
(§ 43.6(f)(2)(ii)(A)(3)).
Section 43.7 sets forth the
requirements for sponsors relying on the
commercial mortgage-backed securities
risk retention option, and includes
disclosures of: The name and form of
organization of each initial third-party
purchaser (§ 43.7(b)(7)(i)); each initial
third-party purchaser’s experience in
investing in commercial mortgagebacked securities (§ 43.7(b)(7)(ii)); other
material information (§ 43.7(b)(7)(iii));
the fair value and purchase price of the
eligible horizontal residual interest
retained by each third-party purchaser,
and the fair value of the eligible
horizontal residual interest that the
sponsor would have retained if the
sponsor had relied on retaining an
eligible horizontal residual interest
under the standard risk retention option
(§ 43.7(b)(7)(iv) and (v)); a description of
the material terms of the eligible
horizontal residual interest retained by
each initial third-party purchaser,
including the same information as is
required to be disclosed by sponsors
retaining horizontal interests pursuant
to § 43.4 (§ 43.7(b)(7)(vi)); the material
terms of the applicable transaction
documents with respect to the
Operating Advisor (§ 43.7(b)(7)(vii));
and representations and warranties
concerning the securitized assets, a
schedule of any securitized assets that
are determined not to comply with such
representations and warranties, and the
factors used to determine that such
securitized assets should be included in
the pool notwithstanding that they did
not comply with the representations and
warranties (§ 43.7(b)(7)(viii)). A sponsor
relying on the commercial mortgagebacked securities risk retention option is
also required to provide in the
underlying securitization transaction
documents certain provisions related to
the Operating Advisor (§ 43.7(b)(6)), to
maintain and adhere to policies and
procedures to monitor compliance by
third-party purchasers with regulatory
requirements (§ 43.7(c)(2)(A)), and to
E:\FR\FM\29JAN1.SGM
29JAN1
sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices
notify the holders of the ABS interests
in the event of noncompliance by a
third-party purchaser with such
regulatory requirements (§ 43.7(c)(2)(B)).
Section 43.8 requires that a sponsor
relying on the Federal National
Mortgage Association and Federal Home
Loan Mortgage Corporation risk
retention option must disclose a
description of the manner in which it
has met the credit risk retention
requirements (§ 43.8(c)).
Section 43.9 sets forth the
requirements for sponsors relying on the
open market CLO risk retention option,
and includes disclosures of a complete
list of, and certain information related
to, every asset held by an open market
CLO (§ 43.9(d)(1)), and the full legal
name and form of organization of the
CLO manager (§ 43.9(d)(2)).
Section 43.10 sets forth the
requirements for sponsors relying on the
qualified tender option bond risk
retention option, and includes
disclosures of the name and form of
organization of the qualified tender
option bond entity, a description of the
form and subordination features of the
retained interest in accordance with the
disclosure obligations in section 43.4(d),
the fair value of any portion of the
retained interest that is claimed by the
sponsor as an eligible horizontal
residual interest, and the percentage of
ABS interests issued that is represented
by any portion of the retained interest
that is claimed by the sponsor as an
eligible vertical interest (§ 43.10(e)(1)–
(4)). In addition, to the extent any
portion of the retained interest claimed
by the sponsor is a municipal security
held outside of the qualified tender
option bond entity, the sponsor must
disclose the name and form of
organization of the qualified tender
option bond entity, the identity of the
issuer of the municipal securities, the
face value of the municipal securities
deposited into the qualified tender
option bond entity, and the face value
of the municipal securities retained
outside of the qualified tender option
bond entity by the sponsor or its
majority-owned affiliates (§ 43.10(e)(5)).
Section 43.11 sets forth the conditions
that apply when the sponsor of a
securitization allocates to originators of
securitized assets a portion of the credit
risk the sponsor is required to retain,
including disclosure of the name and
form of organization of any originator
that acquires and retains an interest in
the transaction, a description of the
form, amount and nature of such
interest, and the method of payment for
such interest (§ 43.11(a)(2)). A sponsor
relying on this section is required to
maintain and adhere to policies and
VerDate Sep<11>2014
18:19 Jan 26, 2018
Jkt 244001
procedures that are reasonably designed
to monitor originator compliance with
retention amount and hedging,
transferring and pledging requirements
(§ 43.11(b)(2)(A)), and to promptly
notify the holders of the ABS interests
in the transaction in the event of
originator non-compliance with such
regulatory requirements
(§ 43.11(b)(2)(B)).
Sections 43.13 and 43.19(g) provide
exemptions from the risk retention
requirements for qualified residential
mortgages and qualifying 3-to-4 unit
residential mortgage loans that meet
certain specified criteria, including that
the depositor with respect to the
securitization transaction certify that it
has evaluated the effectiveness of its
internal supervisory controls and
concluded that the controls are effective
(§§ 43.13(b)(4)(i) and 43.19(g)(2)), and
that the sponsor provide a copy of the
certification to potential investors prior
to sale of asset-backed securities in the
issuing entity (§§ 43.13(b)(4)(iii) and
43.19(g)(2)). In addition, §§ 43.13(c)(3)
and 43.19(g)(3) provide that a sponsor
that has relied upon the exemptions will
not lose the exemptions if, after closing
of the transaction, it is determined that
one or more of the residential mortgage
loans does not meet all of the criteria;
provided that the depositor complies
with certain specified requirements,
including prompt notice to the holders
of the asset-backed securities of any
loan that is required to be repurchased
by the sponsor, the amount of such
repurchased loan, and the cause for
such repurchase.
Section 43.15 provides exemptions
from the risk retention requirements for
qualifying commercial loans that meet
the criteria specified in § 43.16,
qualifying CRE loans that meet the
criteria specified in § 43.17, and
qualifying automobile loans that meet
the criteria specified in § 43.18. Section
43.15 also requires the sponsor to
disclose a description of the manner in
which the sponsor determined the
aggregate risk retention requirement for
the securitization transaction after
including qualifying commercial loans,
qualifying CRE loans, or qualifying
automobile loans with 0 percent risk
retention (§ 43.15(a)(4)). In addition, the
sponsor is required to disclose
descriptions of the qualifying
commercial loans, qualifying CRE loans,
and qualifying automobile loans
(‘‘qualifying assets’’), and descriptions
of the assets that are not qualifying
assets, and the material differences
between the group of qualifying assets
and the group of assets that are not
qualifying assets with respect to the
composition of each group’s loan
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
4123
balances, loan terms, interest rates,
borrower credit information, and
characteristics of any loan collateral
(§ 43.15(b)(3)). Additionally, a sponsor
must retain the disclosures required in
§§ 43.15(a) and (b) in its records and
must provide the disclosure upon
request to the Commission and the
sponsor’s appropriate federal banking
agency, if any, until three years after all
ABS interests are no longer outstanding
(§ 43.15(d)).
Sections 43.16, 43.17 and 43.18 each
require that: The depositor of the assetbacked security certify that it has
evaluated the effectiveness of its
internal supervisory controls and
concluded that its internal supervisory
controls are effective (§§ 43.16(a)(8)(i),
43.17(a)(10)(i), and 43.18(a)(8)(i)); the
sponsor is required to provide a copy of
the certification to potential investors
prior to the sale of asset-backed
securities in the issuing entity
(§§ 43.16(a)(8)(iii), 43.17(a)(10)(iii), and
43.18(a)(8)(iii)); and the sponsor must
promptly notify the holders of the assetbacked securities of any loan included
in the transaction that is required to be
cured or repurchased by the sponsor,
including the principal amount of such
loan and the cause for such cure or
repurchase (§§ 43.16(b)(3), 43.17(b)(3),
and 43.18(b)(3)). Additionally, a sponsor
must retain the disclosures required in
§§ 43.16(a)(8), 43.17(a)(10) and
43.18(a)(8) in its records and must
provide the disclosure upon request to
the Commission and the sponsor’s
appropriate Federal banking agency, if
any, until three years after all ABS
interests are no longer outstanding
(§ 43.15(d)).
Estimated Number of Respondents: 35
sponsors; 182 annual offerings per year.
Total Estimated Annual Burden:
3,139 hours.
Comments submitted in response to
this notice will be summarized and
included in the request for OMB
approval. All comments will become a
matter of public record. Comments are
invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the information collection
burden;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
E:\FR\FM\29JAN1.SGM
29JAN1
4124
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Notices
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Dated: January 23, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief
Counsel, Office of the Comptroller of the
Currency.
[FR Doc. 2018–01521 Filed 1–26–18; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Regulation Project
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
The Internal Revenue Service,
as part of its continuing effort to reduce
paperwork and respondent burden,
invites the general public and other
Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
Currently, the IRS is soliciting
comments concerning, Miscellaneous
Sections Affected by the Taxpayer Bill
of Rights 2 and the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996.
DATES: Written comments should be
received on or before March 30, 2018 to
be assured of consideration.
ADDRESSES: Direct all written comments
to Laurie Brimmer, Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the regulation should be
directed to LaNita Van Dyke, Internal
Revenue Service, Room 6526, 1111
Constitution Avenue NW, Washington,
DC 20224 or (202) 317–6009 or, through
the internet at Lanita.VanDyke@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Miscellaneous Sections Affected
by the Taxpayer Bill of Rights 2 and the
Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
OMB Number: 1545–1356.
Regulation Project Number: TD 8725.
Abstract: Under Internal Revenue
Code section 7430 a prevailing party
may recover the reasonable
administrative or litigation costs
incurred in an administrative or civil
proceeding that relates to the
sradovich on DSK3GMQ082PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
18:19 Jan 26, 2018
Jkt 244001
determination, collection, or refund of
any tax, interest, or penalty. Section
301.7430–2(c) of the regulation provides
that the IRS will not award
administrative costs under section 7430
unless the taxpayer files a written
request in accordance with the
requirements of the regulation.
Current Actions: There is no change to
this existing regulation.
Type of Review: Extension of a
currently approved collection.
Affected Public: Individuals or
households, and business or other forprofit organizations, not-for-profit
institutions, farms, and the Federal
government.
Estimated Number of Respondents:
38.
Estimated Time per Respondent: 2
hours, 16 minutes.
Estimated Total Annual Burden
Hours: 86.
The following paragraph applies to all
of the collections of information covered
by this notice:
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Books or records relating to a collection
of information must be retained as long
as their contents may become material
in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential,
as required by 26 U.S.C. 6103.
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (e) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
Approved: January 23, 2018.
Laurie Brimmer,
Senior Tax Analyst.
[FR Doc. 2018–01661 Filed 1–26–18; 8:45 am]
BILLING CODE 4830–01–P
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Form 8802
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
The Internal Revenue Service,
as part of its continuing effort to reduce
paperwork and respondent burden,
invites the general public and other
Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
Currently, the IRS is soliciting
comments concerning Form 8802,
Application for United States Residency
Certification.
DATES: Written comments should be
received on or before March 30, 2018 to
be assured of consideration.
ADDRESSES: Direct all written comments
to Laurie Brimmer at Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the form and instructions
should be directed to LaNita Van Dyke
at Internal Revenue Service, Room 6526,
1111 Constitution Avenue NW,
Washington, DC 20224, or (202) 317–
6009 or, through the internet at
Lanita.VanDyke@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Application for United States
Residency Certification.
OMB Number: 1545–1817.
Form Number: Form 8802.
Abstract: An entity must use Form
8802 to apply for United States
Residency Certification. All requests for
U.S. residency certification must be
received on Form 8802, Application for
United States Residency Certification.
As proof of residency in the United
States and of entitlement to the benefits
of a tax treaty, U.S. Government
certification that you are a U.S. citizen,
U.S. corporation, U.S. partnership, or
resident of the United States for
purposes of taxation.
Current Actions: There are no changes
being made to the form at this time.
Type of Review: Extension of a
currently approved collection.
Affected Public: Individuals or
households, business or other for-profit
organization, and not-for-profit
institution.
Estimated Number of Respondents:
130,132.
SUMMARY:
E:\FR\FM\29JAN1.SGM
29JAN1
]]>Agencies
[Federal Register Volume 83, Number 19 (Monday, January 29, 2018)]
[Notices]
[Pages 4121-4124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01521]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection
Renewal; Comment Request; Credit Risk Retention
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
-----------------------------------------------------------------------
SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other federal
agencies to take this opportunity to comment on a continuing
information collection as required by the Paperwork Reduction Act of
1995 (PRA). In accordance with the requirements of the PRA, the OCC may
not conduct or sponsor, and the respondent is not required to respond
to, an information collection unless it displays a currently valid
Office of Management and Budget (OMB) control number. The OCC is
soliciting comment concerning the renewal of its information collection
titled, ``Credit Risk Retention.''
DATES: You should submit written comments by March 30, 2018.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0249, 400 7th Street SW, Suite 3E-218, Washington, DC
20219. In addition, comments may be sent by fax to (571) 465-4326 or by
electronic mail to [email protected]. You may personally inspect
and photocopy comments at the OCC, 400 7th Street SW, Washington, DC
20219. For security reasons, the OCC requires that visitors make an
appointment to inspect comments. You may do so by calling (202) 649-
6700 or, for persons who are deaf or hearing impaired, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid
government-issued photo identification and submit to security screening
in order to inspect and photocopy comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance
Officer, (202) 649-5490 or, for persons who are deaf or hearing
impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities
Division, Office of the Comptroller of the Currency, 400 7th Street SW,
Suite 3E-218, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), federal
agencies must obtain approval from the OMB for each collection of
information that they conduct or sponsor. ``Collection of information''
is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency
requests or requirements that members of the public submit reports,
keep records, or provide information to a third party. Section
3506(c)(2)(A) of title 44 requires federal agencies to provide a 60-day
notice in the Federal Register concerning each proposed collection of
information, including each proposed extension of an existing
collection of information, before submitting the collection to OMB for
approval. To comply with this requirement, the OCC is publishing notice
of the proposed collection of information set forth in this document.
Title: Credit Risk Retention.
OMB Control No.: 1557-0249.
Affected Public: Business or other for-profit.
Type of Review: Regular review.
Abstract: This information collection request relates to 12 CFR
part 43, which implemented section 941(b) of the Dodd-Frank Act.\1\
Section 941(b) of the Dodd-Frank Act required the OCC, Board of
Governors of the Federal Reserve System (FRB), Federal Deposit
Insurance Corporation (FDIC), Securities and Exchange Commission (SEC),
and, in the case of the securitization of any residential mortgage
asset, the Federal Housing Finance Agency (FHFA), and the Department of
Housing and Urban Development (HUD) to issue rules that, subject to
certain exemptions: Require a securitizer to retain not less than 5% of
the credit risk of any asset that the securitizer, through the issuance
of an asset-backed security, transfers, sells, or conveys to a third
party; and prohibit a securitizer from directly or indirectly hedging
or otherwise transferring the credit risk that the securitizer is
required to retain under the statute and implementing regulations.
---------------------------------------------------------------------------
\1\ Dodd-Frank Wall Street Reform and Consumer Protection Act
(Pub. L. 111-203, 124 Stat. 1376 (July 21, 2010)).
---------------------------------------------------------------------------
Part 43 sets forth permissible forms of risk retention for
securitizations that involve issuance of asset-backed securities.
Section 15G of the Exchange Act also exempts certain types of
securitization transactions from these risk retention requirements and
authorizes the agencies to exempt or establish a lower risk retention
requirement for other types of securitization transactions. Section 15G
also states that the agencies must permit a securitizer to retain less
than five percent of the credit risk of commercial mortgages,
commercial loans, and automobile loans that are transferred, sold, or
conveyed through the issuance of ABS by the securitizer if the loans
meet underwriting standards established by the federal banking
agencies.\2\
---------------------------------------------------------------------------
\2\ 15 U.S.C. 78o-11(c)(1)(B)(ii) and (2).
---------------------------------------------------------------------------
Part 43 sets forth permissible forms of risk retention for
securitizations that involve issuance of asset-backed securities, as
well as exemptions from the risk retention requirements, and contains
requirements subject to the PRA.
Section 43.4 sets forth the conditions that must be met by sponsors
electing to use the standard risk retention option, which may consist
of an eligible vertical interest or an eligible horizontal residual
interest, or any combination thereof. Sections 43.4(c)(1) and
43.4(c)(2) specify the disclosures required with respect to eligible
horizontal residual interests and eligible vertical interests,
respectively.
[[Page 4122]]
A sponsor retaining any eligible horizontal residual interest (or
funding a horizontal cash reserve account) is required to disclose: The
fair value (or a range of fair values and the method used to determine
such range) of the eligible horizontal residual interest that the
sponsor expects to retain at the closing of the securitization
transaction (Sec. 43.4(c)(1)(i)(A)); the material terms of the
eligible horizontal residual interest (Sec. 43.4(c)(1)(i)(B)); the
methodology used to calculate the fair value (or range of fair values)
of all classes of ABS interests (Sec. 43.4(c)(1)(i)(C)); the key
inputs and assumptions used in measuring the estimated total fair value
(or range of fair values) of all classes of ABS interests (Sec.
43.4(c)(1)(i)(D)); the reference data set or other historical
information used to develop the key inputs and assumptions (Sec.
43.4(c)(1)(i)(G)); the fair value of the eligible horizontal residual
interest retained by the sponsor (Sec. 43.4(c)(1)(ii)(A)); the fair
value of the eligible horizontal residual interest required to be
retained by the sponsor (Sec. 43.4(c)(1)(ii)(B)); a description of any
material differences between the methodology used in calculating the
fair value disclosed prior to sale and the methodology used to
calculate the fair value at the time of closing (Sec.
43.4(c)(1)(ii)(C)); and the amount placed by the sponsor in the
horizontal cash reserve account at closing, the fair value of the
eligible horizontal residual interest that the sponsor is required to
fund through such account, and a description of such account (Sec.
43.4(c)(1)(iii)).
For eligible vertical interests, the sponsor is required to
disclose: The form of the eligible vertical interest (Sec.
43.4(c)(2)(i)(A)); the percentage that the sponsor is required to
retain (Sec. 43.4(c)(2)(i)(B)); a description of the material terms of
the vertical interest and the amount the sponsor expects to retain at
closing (Sec. 43.4(c)(2)(i)(C)); and the amount of vertical interest
retained by the sponsor at closing ((Sec. 43.4(c)(2)(ii)).
Section 43.4(d) requires a sponsor to retain the certifications and
disclosures required in paragraphs (a) and (c) of this section in its
records and must provide the disclosure upon request to the Commission
and the sponsor's appropriate federal banking agency, if any, until
three years after all ABS interests are no longer outstanding.
Section 43.5(k) requires sponsors relying on the master trust (or
revolving pool securitization) risk retention option to disclose: The
material terms of the seller's interest and the percentage of the
seller's interest that the sponsor expects to retain at the closing of
the transaction (Sec. 43.5(k)(1)(i)); the percentage of the seller's
interest that the sponsor retained at closing (Sec. 43.5(k)(1)(ii));
the material terms of any horizontal risk retention offsetting the
seller's interest under Sec. 43.5(g), Sec. 43.5(h) and Sec. 43.5(i)
(Sec. 43.5(k)(1)(iii)); and the fair value of any horizontal risk
retention retained by the sponsor (Sec. 43.5(k)(1)(iv)). Additionally,
a sponsor must retain the disclosures required in Sec. 43.5(k)(1) in
its records and must provide the disclosure upon request to the
Commission and the sponsor's appropriate federal banking agency, if
any, until three years after all ABS interests are no longer
outstanding (Sec. 43.5(k)(3)).
Section 43.6 addresses the requirements for sponsors utilizing the
eligible ABCP conduit risk retention option. The requirements for the
eligible ABCP conduit risk retention option include disclosure to each
purchaser of ABCP and periodically to each holder of commercial paper
issued by the ABCP conduit of the name and form of organization of the
regulated liquidity provider that provides liquidity coverage to the
eligible ABCP conduit, including a description of the material terms of
such liquidity coverage, and notice of any failure to fund; and with
respect to each ABS interest held by the ABCP conduit, the asset class
or brief description of the underlying securitized assets, the standard
industrial category code for each originator-seller that retains an
interest in the securitization transaction, and a description of the
percentage amount and form of interest retained by each originator-
seller (Sec. 43.6(d)(1)). An ABCP conduit sponsor relying upon this
section shall provide, upon request, to the Commission and the
sponsor's appropriate Federal banking agency, if any, the information
required under Sec. 43.6(d)(1), in addition to the name and form of
organization of each originator-seller that retains an interest in the
securitization transaction (Sec. 43.6(d)(2)).
A sponsor relying on the eligible ABCP conduit risk retention
option shall maintain and adhere to policies and procedures to monitor
compliance by each originator-seller which is satisfying a risk
retention obligation in respect to ABS interests acquired by an
eligible ABCP conduit (Sec. 43.6(f)(2)(i)). If the ABCP conduit
sponsor determines that an originator-seller is no longer in
compliance, the sponsor must promptly notify the holders of the ABCP,
and upon request, the Commission and the sponsor's appropriate federal
banking agency, in writing of the name and form of organization of any
originator-seller that fails to retain, and the amount of ABS interests
issued by an intermediate SPV of such originator-seller and held by the
ABCP conduit (Sec. 43.6(f)(2)(ii)(A)(1)); the name and form of
organization of any originator-seller that hedges, directly or
indirectly through an intermediate SPV, its risk retention in violation
of the rule, and the amount of ABS interests issued by an intermediate
SPV of such originator-seller and held by the ABCP conduit (Sec.
43.6(f)(2)(ii)(A)(2)); and any remedial actions taken by the ABCP
conduit sponsor or other party with respect to such ABS interests
(Sec. 43.6(f)(2)(ii)(A)(3)).
Section 43.7 sets forth the requirements for sponsors relying on
the commercial mortgage-backed securities risk retention option, and
includes disclosures of: The name and form of organization of each
initial third-party purchaser (Sec. 43.7(b)(7)(i)); each initial
third-party purchaser's experience in investing in commercial mortgage-
backed securities (Sec. 43.7(b)(7)(ii)); other material information
(Sec. 43.7(b)(7)(iii)); the fair value and purchase price of the
eligible horizontal residual interest retained by each third-party
purchaser, and the fair value of the eligible horizontal residual
interest that the sponsor would have retained if the sponsor had relied
on retaining an eligible horizontal residual interest under the
standard risk retention option (Sec. 43.7(b)(7)(iv) and (v)); a
description of the material terms of the eligible horizontal residual
interest retained by each initial third-party purchaser, including the
same information as is required to be disclosed by sponsors retaining
horizontal interests pursuant to Sec. 43.4 (Sec. 43.7(b)(7)(vi)); the
material terms of the applicable transaction documents with respect to
the Operating Advisor (Sec. 43.7(b)(7)(vii)); and representations and
warranties concerning the securitized assets, a schedule of any
securitized assets that are determined not to comply with such
representations and warranties, and the factors used to determine that
such securitized assets should be included in the pool notwithstanding
that they did not comply with the representations and warranties (Sec.
43.7(b)(7)(viii)). A sponsor relying on the commercial mortgage-backed
securities risk retention option is also required to provide in the
underlying securitization transaction documents certain provisions
related to the Operating Advisor (Sec. 43.7(b)(6)), to maintain and
adhere to policies and procedures to monitor compliance by third-party
purchasers with regulatory requirements (Sec. 43.7(c)(2)(A)), and to
[[Page 4123]]
notify the holders of the ABS interests in the event of noncompliance
by a third-party purchaser with such regulatory requirements (Sec.
43.7(c)(2)(B)).
Section 43.8 requires that a sponsor relying on the Federal
National Mortgage Association and Federal Home Loan Mortgage
Corporation risk retention option must disclose a description of the
manner in which it has met the credit risk retention requirements
(Sec. 43.8(c)).
Section 43.9 sets forth the requirements for sponsors relying on
the open market CLO risk retention option, and includes disclosures of
a complete list of, and certain information related to, every asset
held by an open market CLO (Sec. 43.9(d)(1)), and the full legal name
and form of organization of the CLO manager (Sec. 43.9(d)(2)).
Section 43.10 sets forth the requirements for sponsors relying on
the qualified tender option bond risk retention option, and includes
disclosures of the name and form of organization of the qualified
tender option bond entity, a description of the form and subordination
features of the retained interest in accordance with the disclosure
obligations in section 43.4(d), the fair value of any portion of the
retained interest that is claimed by the sponsor as an eligible
horizontal residual interest, and the percentage of ABS interests
issued that is represented by any portion of the retained interest that
is claimed by the sponsor as an eligible vertical interest (Sec.
43.10(e)(1)-(4)). In addition, to the extent any portion of the
retained interest claimed by the sponsor is a municipal security held
outside of the qualified tender option bond entity, the sponsor must
disclose the name and form of organization of the qualified tender
option bond entity, the identity of the issuer of the municipal
securities, the face value of the municipal securities deposited into
the qualified tender option bond entity, and the face value of the
municipal securities retained outside of the qualified tender option
bond entity by the sponsor or its majority-owned affiliates (Sec.
43.10(e)(5)).
Section 43.11 sets forth the conditions that apply when the sponsor
of a securitization allocates to originators of securitized assets a
portion of the credit risk the sponsor is required to retain, including
disclosure of the name and form of organization of any originator that
acquires and retains an interest in the transaction, a description of
the form, amount and nature of such interest, and the method of payment
for such interest (Sec. 43.11(a)(2)). A sponsor relying on this
section is required to maintain and adhere to policies and procedures
that are reasonably designed to monitor originator compliance with
retention amount and hedging, transferring and pledging requirements
(Sec. 43.11(b)(2)(A)), and to promptly notify the holders of the ABS
interests in the transaction in the event of originator non-compliance
with such regulatory requirements (Sec. 43.11(b)(2)(B)).
Sections 43.13 and 43.19(g) provide exemptions from the risk
retention requirements for qualified residential mortgages and
qualifying 3-to-4 unit residential mortgage loans that meet certain
specified criteria, including that the depositor with respect to the
securitization transaction certify that it has evaluated the
effectiveness of its internal supervisory controls and concluded that
the controls are effective (Sec. Sec. 43.13(b)(4)(i) and 43.19(g)(2)),
and that the sponsor provide a copy of the certification to potential
investors prior to sale of asset-backed securities in the issuing
entity (Sec. Sec. 43.13(b)(4)(iii) and 43.19(g)(2)). In addition,
Sec. Sec. 43.13(c)(3) and 43.19(g)(3) provide that a sponsor that has
relied upon the exemptions will not lose the exemptions if, after
closing of the transaction, it is determined that one or more of the
residential mortgage loans does not meet all of the criteria; provided
that the depositor complies with certain specified requirements,
including prompt notice to the holders of the asset-backed securities
of any loan that is required to be repurchased by the sponsor, the
amount of such repurchased loan, and the cause for such repurchase.
Section 43.15 provides exemptions from the risk retention
requirements for qualifying commercial loans that meet the criteria
specified in Sec. 43.16, qualifying CRE loans that meet the criteria
specified in Sec. 43.17, and qualifying automobile loans that meet the
criteria specified in Sec. 43.18. Section 43.15 also requires the
sponsor to disclose a description of the manner in which the sponsor
determined the aggregate risk retention requirement for the
securitization transaction after including qualifying commercial loans,
qualifying CRE loans, or qualifying automobile loans with 0 percent
risk retention (Sec. 43.15(a)(4)). In addition, the sponsor is
required to disclose descriptions of the qualifying commercial loans,
qualifying CRE loans, and qualifying automobile loans (``qualifying
assets''), and descriptions of the assets that are not qualifying
assets, and the material differences between the group of qualifying
assets and the group of assets that are not qualifying assets with
respect to the composition of each group's loan balances, loan terms,
interest rates, borrower credit information, and characteristics of any
loan collateral (Sec. 43.15(b)(3)). Additionally, a sponsor must
retain the disclosures required in Sec. Sec. 43.15(a) and (b) in its
records and must provide the disclosure upon request to the Commission
and the sponsor's appropriate federal banking agency, if any, until
three years after all ABS interests are no longer outstanding (Sec.
43.15(d)).
Sections 43.16, 43.17 and 43.18 each require that: The depositor of
the asset-backed security certify that it has evaluated the
effectiveness of its internal supervisory controls and concluded that
its internal supervisory controls are effective (Sec. Sec.
43.16(a)(8)(i), 43.17(a)(10)(i), and 43.18(a)(8)(i)); the sponsor is
required to provide a copy of the certification to potential investors
prior to the sale of asset-backed securities in the issuing entity
(Sec. Sec. 43.16(a)(8)(iii), 43.17(a)(10)(iii), and 43.18(a)(8)(iii));
and the sponsor must promptly notify the holders of the asset-backed
securities of any loan included in the transaction that is required to
be cured or repurchased by the sponsor, including the principal amount
of such loan and the cause for such cure or repurchase (Sec. Sec.
43.16(b)(3), 43.17(b)(3), and 43.18(b)(3)). Additionally, a sponsor
must retain the disclosures required in Sec. Sec. 43.16(a)(8),
43.17(a)(10) and 43.18(a)(8) in its records and must provide the
disclosure upon request to the Commission and the sponsor's appropriate
Federal banking agency, if any, until three years after all ABS
interests are no longer outstanding (Sec. 43.15(d)).
Estimated Number of Respondents: 35 sponsors; 182 annual offerings
per year.
Total Estimated Annual Burden: 3,139 hours.
Comments submitted in response to this notice will be summarized
and included in the request for OMB approval. All comments will become
a matter of public record. Comments are invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the information
collection burden;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
[[Page 4124]]
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: January 23, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel, Office of the
Comptroller of the Currency.
[FR Doc. 2018-01521 Filed 1-26-18; 8:45 am]
BILLING CODE 4810-33-P
