Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Credit Risk Retention, 18126-18129 [2018-08577]

Download as PDF 18126 Federal Register / Vol. 83, No. 80 / Wednesday, April 25, 2018 / Notices offices can be found on FTA’s website at www.fta.dot.gov. H. Technical Assistance and Other Program Information For further information concerning this notice, please contact the Low-No Program manager Tara Clark by phone at 202–366–2623, or by email at tara.clark@dot.gov. A TDD is available for individuals who are deaf or hard of hearing at 800–877–8339. In addition, FTA will post answers to questions and requests for clarifications on FTA’s website at https://www.transit.dot.gov/ funding/grants/lowno. To ensure applicants receive accurate information about eligibility or the program, the applicant is encouraged to contact FTA directly, rather than through intermediaries or third parties, with questions. FTA staff may also conduct briefings on the FY 2018 discretionary grants selection and award process upon request. K. Jane Williams, Acting Administrator. BILLING CODE P DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration [Docket No.: PHMSA–2018–0004; Notice No. 2018–04] Hazardous Materials: Public Meeting Notice for the Research and Development Forum Pipeline and Hazardous Materials Safety Administration (PHMSA), DOT. ACTION: Notice of public meeting. AGENCY: This notice is designed to inform the interested public that the Office of Hazardous Materials Safety (OHMS) of the Pipeline and Hazardous Materials Safety Administration (PHMSA) will hold a public Research and Development Forum that will be held May 16 and 17, 2018, in Washington, DC. OHMS will host the forum to present the results of recently completed projects, brief new project plans with stakeholder input, and discuss the direction of current and future research projects. During the meeting, OHMS will solicit comments related to new research topics that may be considered for inclusion in its future work. OHMS also reviews research needs statements from industry, academia, and other stakeholders. OHMS is particularly interested in the research gaps sradovich on DSK3GMQ082PROD with NOTICES VerDate Sep<11>2014 19:12 Apr 24, 2018 Jkt 244001 May 16 and 17, 2018 from 8:30 a.m. to 4:30 p.m. Eastern Standard Time on both days. DATES: The meeting will be held at the National Transportation Safety Board Boardroom and Conference Center at 420 10th Street SW, Washington, DC 20594. Registration: The DOT requests that attendees pre-register for these meetings by completing the form at https:// www.surveymonkey.com/r/P7CMR3R. Conference call-in and ‘‘live meeting’’ capability will be provided. Specific information about conference call-in and live meeting access will be posted, when available, at: https:// www.phmsa.dot.gov/research-anddevelopment/hazmat/rd-meetings-andevents under ‘‘Upcoming Events.’’ ADDRESSES: [FR Doc. 2018–08636 Filed 4–24–18; 8:45 am] SUMMARY: associated with energetic materials characterization and transport, safe transport of energy products, safe containment and transportation of compressed gasses, safe packaging and transportation of charge storage devices, and others. One focus will be a discussion on the safety gaps recently identified in a 2017 cooperative research report completed by the National Academy of Sciences titled ‘‘Safely Transporting Hazardous Liquids and Gases in a Changing U.S. Energy Landscape.’’ The identification of other research gaps related to the transportation of hazardous materials will be encouraged in an effort to meet the holistic needs of the transportation community and the U.S. Department of Transportation’s (DOT) strategic goals: Safety, investment in infrastructure, innovation and accountability. Eva Rodezno or Rick Boyle, Office of Hazardous Materials Safety, Research and Development, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation, Washington, DC. Telephone: (202) 366–8799 and (202) 366–2993. Email: eva.rodezno@dot.gov or rick.boyle@dot.gov. FOR FURTHER INFORMATION CONTACT: Signed on April 19, 2018 in Washington, DC. William S. Schoonover, Associate Administrator for Hazardous Materials Safety. [FR Doc. 2018–08586 Filed 4–24–18; 8:45 am] BILLING CODE 4910–60–P PO 00000 Frm 00134 Fmt 4703 Sfmt 4703 DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; 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.’’ The OCC also is giving notice that it has sent the collection to OMB for review. DATES: You should submit written comments by May 25, 2018. ADDRESSES: Commenters are encouraged to submit comments by email, if possible. You may submit comments by any of the following methods: • Email: prainfo@occ.treas.gov. • Mail: 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. • Hand Delivery/Courier: 400 7th Street SW, Suite 3E–218, Washington, DC 20219. • Fax: (571) 465–4326. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘1557– 0249’’ in your comment. In general, the OCC will publish them on www.reginfo.gov without change, including any business or personal information that you provide, such as name and address information, email addresses, or phone numbers. 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. Additionally, please send a copy of your comments by mail to: OCC Desk SUMMARY: E:\FR\FM\25APN1.SGM 25APN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 83, No. 80 / Wednesday, April 25, 2018 / Notices Officer, 1557–0249, U.S. Office of Management and Budget, 725 17th Street NW, #10235, Washington, DC 20503 or by email to oira_submission@ omb.eop.gov. You may review comments and other related materials that pertain to this information collection 1 following the close of the 30-day comment period for this notice by any of the following methods: • Viewing Comments Electronically: Go to www.reginfo.gov. Click on the ‘‘Information Collection Review’’ tab. Underneath the ‘‘Currently under Review’’ section heading, from the dropdown menu, select ‘‘Department of Treasury’’ and then click ‘‘submit.’’ This information collection can be located by searching by OMB control number ‘‘1557–0249’’ or ‘‘Credit Risk Retention.’’ Upon finding the appropriate information collection, click on the related ‘‘ICR Reference Number.’’ On the next screen, select ‘‘View Supporting Statement and Other Documents’’ and then click on the link to any comment listed at the bottom of the screen. • For assistance in navigating www.reginfo.gov, please contact the Regulatory Information Service Center at (202) 482–7340. • Viewing Comments Personally: You may personally inspect comments at the OCC, 400 7th Street SW, Washington, DC. 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 comments. FOR FURTHER INFORMATION CONTACT: 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 1 On January 29, 2018, the OCC published a 60Day notice for this information collection. The comments can be viewed on www.reginfo.gov. Please follow the instructions listed in this notice to view them. VerDate Sep<11>2014 19:12 Apr 24, 2018 Jkt 244001 submit reports, keep records, or provide information to a third party. The OCC is asking OMB to extend its approval of the following information collection. Title: Credit Risk Retention. OMB Control No.: 1557–0249. Affected Public: Business or other forprofit. Type of Review: Regular review. Abstract: This information collection request relates to 12 CFR part 43, which implements section 941(b) of the DoddFrank Act.2 Section 941(b) of the DoddFrank Act required the OCC, the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the 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.3 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 2 Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111–203, 124 Stat. 1376 (July 21, 2010)). 3 15 U.S.C. 78o–11(c)(1)(B)(ii) and (2). PO 00000 Frm 00135 Fmt 4703 Sfmt 4703 18127 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. 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 disclosures upon request to the SEC and the sponsor’s appropriate federal E:\FR\FM\25APN1.SGM 25APN1 sradovich on DSK3GMQ082PROD with NOTICES 18128 Federal Register / Vol. 83, No. 80 / Wednesday, April 25, 2018 / Notices 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 (§ 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 disclosures upon request to the SEC 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 SEC 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 originator-seller 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 VerDate Sep<11>2014 19:12 Apr 24, 2018 Jkt 244001 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 SEC 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 (§ 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 (§ 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 PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 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 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 § 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 E:\FR\FM\25APN1.SGM 25APN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 83, No. 80 / Wednesday, April 25, 2018 / Notices 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 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 VerDate Sep<11>2014 19:12 Apr 24, 2018 Jkt 244001 (‘‘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 (§ 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 disclosures upon request to the SEC 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 disclosures upon request to the SEC 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. The OCC issued a notice for 60 days of comment regarding this collection on January 29, 2018, 83 FR 4121. No comments were received. Comments continue to be 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; PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 18129 (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) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Dated: April 19, 2018. Karen Solomon, Acting Senior Deputy Comptroller and Chief Counsel. [FR Doc. 2018–08577 Filed 4–24–18; 8:45 am] BILLING CODE 4810–33–P DEPARTMENT OF THE TREASURY Multiemployer Pension Plan Application To Reduce Benefits Department of the Treasury. Notice of availability; Request for comments. AGENCY: ACTION: The Board of Trustees of the Sheet Metal Workers Local Pension Plan, a multiemployer pension plan, has submitted an application to reduce benefits under the plan in accordance with the Multiemployer Pension Reform Act of 2014 (MPRA). The purpose of this notice is to announce that the application submitted by the Board of Trustees of the Sheet Metal Workers Local Pension Plan has been published on the website of the Department of the Treasury (Treasury), and to request public comments on the application from interested parties, including participants and beneficiaries, employee organizations, and contributing employers of the Sheet Metal Workers Local Pension Plan. DATES: Comments must be received by June 11, 2018. ADDRESSES: You may submit comments electronically through the Federal eRulemaking Portal at http:// www.regulations.gov, in accordance with the instructions on that site. Electronic submissions through www.regulations.gov are encouraged. Comments may also be mailed to the Department of the Treasury, MPRA Office, 1500 Pennsylvania Avenue NW, Room 1224, Washington, DC 20220, Attn: Eric Berger. Comments sent via facsimile and email will not be accepted. Additional Instructions. All comments received, including attachments and other supporting materials, will be made available to the public. Do not include any personally identifiable information (such as your Social Security number, name, address, or other contact information) or any SUMMARY: E:\FR\FM\25APN1.SGM 25APN1

Agencies

[Federal Register Volume 83, Number 80 (Wednesday, April 25, 2018)]
[Notices]
[Pages 18126-18129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08577]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Credit Risk Retention

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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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.'' The OCC also is giving notice that it has 
sent the collection to OMB for review.

DATES: You should submit written comments by May 25, 2018.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: 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.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0249'' in your comment. In general, the OCC will publish them on 
www.reginfo.gov without change, including any business or personal 
information that you provide, such as name and address information, 
email addresses, or phone numbers. 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.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk

[[Page 18127]]

Officer, 1557-0249, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503 or by email to 
[email protected].
    You may review comments and other related materials that pertain to 
this information collection \1\ following the close of the 30-day 
comment period for this notice by any of the following methods:
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    \1\ On January 29, 2018, the OCC published a 60-Day notice for 
this information collection. The comments can be viewed on 
www.reginfo.gov. Please follow the instructions listed in this 
notice to view them.
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     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu, 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0249'' or ``Credit Risk Retention.'' Upon finding the 
appropriate information collection, click on the related ``ICR 
Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th Street SW, Washington, DC. 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 
comments.

FOR FURTHER INFORMATION CONTACT: 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. The OCC is 
asking OMB to extend its approval of the following information 
collection.
    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 implements section 941(b) of the Dodd-Frank Act.\2\ 
Section 941(b) of the Dodd-Frank Act required the OCC, the Board of 
Governors of the Federal Reserve System (FRB), the Federal Deposit 
Insurance Corporation (FDIC), the 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.
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    \2\ Dodd-Frank Wall Street Reform and Consumer Protection Act 
(Pub. L. 111-203, 124 Stat. 1376 (July 21, 2010)).
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    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.\3\
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    \3\ 15 U.S.C. 78o-11(c)(1)(B)(ii) and (2).
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    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.
    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 disclosures upon request to the SEC and 
the sponsor's appropriate federal

[[Page 18128]]

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 disclosures upon request to the SEC 
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 SEC 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 SEC 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 
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 Sec.  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

[[Page 18129]]

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 disclosures upon request to the SEC 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 
disclosures upon request to the SEC 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.
    The OCC issued a notice for 60 days of comment regarding this 
collection on January 29, 2018, 83 FR 4121. No comments were received. 
Comments continue to be 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) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: April 19, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel.
[FR Doc. 2018-08577 Filed 4-24-18; 8:45 am]
 BILLING CODE 4810-33-P