Final Order Denying Temporary Waiver Relief, 19558-19560 [2018-09419]
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Federal Register / Vol. 83, No. 86 / Thursday, May 3, 2018 / Notices
from TriStar Bank, notice of which was
published in the Federal Register on
March 9, 2018.
Washington, DC 20548, or call (202)
512–7350.
Authority: Federal Advisory Committee
Act, Pub. L. 92–463.
DATES:
Dated: April 30, 2018.
Wendy M. Payne,
Executive Director.
Applicable May 3, 2018.
FOR FURTHER INFORMATION CONTACT:
James R. Park, Executive Director, at
(202) 595–7575, or Alice M. Ritter,
General Counsel, at (202) 595–7577,
ASC, 1401 H Street NW, Suite 760,
Washington, DC 20005.
[FR Doc. 2018–09391 Filed 5–2–18; 8:45 am]
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[FR Doc. 2018–09541 Filed 5–1–18; 4:15 pm]
BILLING CODE 6715–01–P
FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
[Docket No. AS18–07]
Final Order Denying Temporary Waiver
Relief
Appraisal Subcommittee of the
Federal Financial Institutions
Examination Council.
ACTION: Final Order denying temporary
waiver relief.
AGENCY:
The Appraisal Subcommittee
(ASC) of the Federal Financial
Institutions Examination Council
(FFIEC) is issuing a final order denying
temporary waiver relief pursuant to the
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989, as
amended. This order denies a request
for temporary waiver relief received
sradovich on DSK3GMQ082PROD with NOTICES
SUMMARY:
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A. Relevant statutory provisions and
regulations
Title XI established the ASC.1 The
purpose of Title XI is ‘‘to provide that
Federal financial and public policy
interests in real estate related
transactions will be protected by
requiring that real estate appraisals
utilized in connection with federally
related transactions are performed in
writing, in accordance with uniform
standards, by individuals whose
competency has been demonstrated and
whose professional conduct will be
subject to effective supervision.’’ 2
Section 1119(b) of Title XI authorizes
the ASC to waive, on a temporary basis
and with approval of the FFIEC, ‘‘any
requirement relating to certification or
licensing of a person to perform
appraisals under [Title XI] upon a
written determination that there is a
scarcity of certified or licensed
appraisers to perform appraisals in
connection with federally related
transactions 3 in a State, or in any
geographical political subdivision of a
State, leading to significant delays in the
performance of such appraisals.’’ 4
Congress intended that the ASC exercise
this waiver authority ‘‘cautiously.’’ 5
1 The ASC Board is comprised of seven members.
Five members are designated by the heads of the
FFIEC agencies (Board of Governors of the Federal
Reserve System [Board], Bureau of Consumer
Financial Protection [Bureau], Federal Deposit
Insurance Corporation [FDIC], Office of the
Comptroller of the Currency [OCC], and National
Credit Union Administration [NCUA]). The other
two members are designated by the heads of the
Department of Housing and Urban Development
(HUD) and the Federal Housing Finance Agency
(FHFA).
2 Title XI § 1101, 12 U.S.C. 3331.
3 ‘‘Federally related transaction’’ (FRT) refers to
any real estate related financial transaction which:
(a) A federal financial institutions regulatory agency
engages in, contracts for, or regulates; and (b)
requires the services of an appraiser. (Title XI
§ 1121 (4), 12 U.S.C. 3350.)
4 12 U.S.C. 3348(b).
5 House Comm. on Banking, Finance and Urban
Affairs, Report Together with Additional,
Supplemental, Minority, Individual, and Dissenting
Views, Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, H.R. Rep. No. 101–54 Part
1, 101st Cong., 1st Sess., at 482–83.
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The ASC has issued procedures 6
governing the processing of temporary
waiver requests. After receiving a
waiver request, the ASC is required to
issue a public notice in the Federal
Register requesting comment on the
request for a proposed temporary
waiver. Within 15 days of the close of
the 30-day comment period, the ASC, by
order, must grant or deny a waiver, in
whole or in part, and upon specified
terms or conditions, including
provisions for waiver termination. The
ASC’s order must respond to comments
received, provide reasons for its finding,
and be published promptly in the
Federal Register.
B. Procedural Status
On November 20, 2017, the ASC
received a letter requesting
consideration of a temporary waiver
from TriStar Bank, a state-chartered
bank located in Dickson, Tennessee
(Requester). On November 30, 2017,
ASC staff replied by letter to the
Requester, in which ASC staff described
the information required to file a
completed waiver request pursuant to
12 CFR §§ 1102.2 and 1102.3. On
January 22, 2018, the Requester
submitted additional information (dated
January 10, 2018) in response to the
ASC’s November 30, 2017 letter. On
March 9, 2018, the ASC published a
Notice of Received Request for a
Temporary Waiver giving interested
persons 30 days to submit comments,
including submission of written data,
views and arguments.7 On April 3,
2018, the Requester submitted
correspondence with additional
information in response to a comment
letter submitted by the Tennessee Real
Estate Appraiser Commission (discussed
infra). The comment period closed on
April 9, 2018. A discussion of the public
comments received by the ASC
concerning the request for temporary
waiver relief follows in Section III
below.
The ASC called a special meeting to
consider this matter on April 23, 2018,
and voted to approve the issuance of
this final order denying temporary
waiver relief.
II. Request for a Temporary Waiver
The request submitted by the
Requester sought temporary waiver
relief ‘‘to receive a one-year waiver of
the appraisal regulation’s requirements
to utilize a certified appraiser. . . . for
appraisals completed within the
Nashville MSA. . . . mostly in Dickson,
Maury, Williamson and Davidson
6 12
7 83
CFR part 1102, subpart A.
FR 10480 (March 9, 2018).
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Federal Register / Vol. 83, No. 86 / Thursday, May 3, 2018 / Notices
counties.’’ 8 The Requester stated that
the shortage of appraisers, time delay
and added cost is negatively impacting
clients.
The Requester submitted data to
support the request alleging a scarcity of
certified general appraisers and delays
experienced in receiving commercial
appraisals/evaluations. The Requester
stated, ‘‘[w]e reviewed our appraisal
logs in 2013 and in 2017 to determine
the trend of pricing and timeliness of
appraisals/evaluations during each year.
Since 2013, the logs reflect an average
increase of 82% in wait time to receive
commercial appraisals/evaluations.
During that time, the average cost to our
clients for commercial appraisals/
evaluations has increased 23%. The cost
of time and money is putting pressure
on our clients’ ability to find value in
our work.’’ 9 The Requester further
stated concern that ‘‘the new
requirements to become a certified
general appraiser are not producing
enough qualified appraisers in the
market. A current appraiser has little
motivation to train someone that he or
she will have to compete against in the
future or the time to commit to train an
apprentice during this time of
tremendous growth.’’ 10
The Requester stated there is only one
certified general appraiser in the county
of Dickson, and the demand is so great
in the Nashville MSA area that the
Requester is having a difficult time
receiving appraisals in a reasonable
amount of time. The Requester
expressed concern that ‘‘current
regulation and requirements are not
allowing a healthy marketplace to
obtain independent values.’’ 11
sradovich on DSK3GMQ082PROD with NOTICES
III. Summary of Comments
The ASC received 166 comment
letters in response to the published
notice of received request for a
temporary waiver and request for
comment. These comment letters were
received from State appraiser certifying
and licensing agencies, appraiser and
real estate trade associations,
professional associations, AMCs,
appraisal firms and appraisers. The
majority of comments received were
from appraisers opposing the granting of
a temporary waiver. Several comments
were also received from appraisal trade
organizations opposing the granting of a
8 Letter from Requester to the ASC requesting a
temporary waiver (Nov. 20, 2017).
9 Id.
10 Id.
11 Letter from Requester to the ASC providing
additional information on the request for a
temporary waiver (Jan. 10, 2018).
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17:29 May 02, 2018
Jkt 244001
temporary waiver.12 Several appraisers
credentialed in Tennessee responded to
the ASC’s request for comments by
stating they have contacted TriStar
offering to perform appraisals for the
bank, but have not been assigned any
appraisals or evaluations to date. A few
commenters did not oppose or support
the granting of a temporary waiver in
response to this request, but requested
the ASC exercise such waiver authority
with caution. A few commenters
supported the request for a waiver, but
expressed support of a waiver of the
requirement for an appraisal, which is
beyond the scope of authority set forth
in the statute authorizing the ASC to
waive, on a temporary basis and with
approval of the FFIEC, credentialing
requirements.
One commenter who had provided
appraisal and evaluation services for the
Requester since 2012 provided data that
in some cases contradicted data
provided by the Requester. For example,
the commenter claimed to have
completed a number of commercial
appraisals that were not included in the
data submitted by the Requester. In
addition, the commenter provided an
explanation for lengthy turn-around
times on two of the commercial
properties listed in the Requester’s data.
The Tennessee Real Estate Appraiser
Commission (TN REAC) provided
comment on this request, stating that it
‘‘disagrees that there is a shortage of
appraisers in those cited counties.’’ 13
TN REAC also provided data showing
that 174 Certified General appraisers
and 491 total credentialed appraisers are
available in the four counties and the
directly surrounding area. This
information is supported by the
National Registry.14
IV. ASC Discussion
In order to grant a temporary waiver,
the ASC must make a determination that
a scarcity of credentialed appraisers is
leading to significant delays in
obtaining appraisals for FRTs in the
geographic area 15 specified in the
request. In considering this request, the
ASC examined both evidence of a
12 A number of commenters indicated that
granting the waiver would erode the public trust,
and a number of other commenters cautioned that
granting of the waiver would result in the same
conditions that led to the financial crisis in 2008.
13 Letter from TN REAC to the ASC responding
to request for comments on the temporary waiver
request. (Jan. 23, 2018).
14 Title XI requires the ASC to maintain a
National Registry of State certified and licensed
appraisers who are eligible to perform appraisals in
FRTs. (Title XI § 1109(b)1), 12 U.S.C. 3338(b)(1).)
15 The ASC’s section 1119(b) temporary waiver
authority is with respect to a State or any
geographical political subdivision of a State.
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19559
scarcity of appraisers in the area, and
evidence of significant delay, taking into
account the comments received.
Regarding the scarcity of appraisers,
the Requester’s comments focused on
Dickson County. The Requester
provided little discussion of scarcity in
Maury, Davidson, and Williamson
counties and no discussion of other
counties in the Nashville MSA. As
noted, TN REAC disagreed that a
scarcity exists, and submitted more
comprehensive information concerning
the number of appraisers in this area.
Regarding the delay in obtaining
appraisals, the Requester submitted data
to show that the delivery time for the
appraisals and evaluations it has
ordered and received increased between
2013 and 2017. Because the request for
a temporary waiver applies only to
appraisals, the ASC focused on data
related to delivery time for appraisals.
Delivery times for appraisals alone have
increased by a smaller percentage than
the aggregated delivery times. In
addition, the ASC believes it is useful to
look at the median appraisal delivery
times, especially in light of the small
sample size presented by the Requester.
Using the median time also results in an
analysis that is more resistant to the
influence of outliers in the data. The
data provided by the Requester
indicates that the delivery time for a
commercial appraisal it ordered in the
subject counties in 2013 was 21 days. In
2017, the delivery time was 27 days.
Comparing the median numbers yields
a six-day increase in the appraisal time
between 2013 and 2017, based on the
data provided by TriStar. But it appears
the Requester’s data may be incomplete.
One commenter asserted that he
completed additional commercial
appraisals for the Requester in 2017 that
were not reported. If these appraisals are
considered in calculating the median,
the delivery time for the Requester’s
commercial appraisals in 2017 was 24
days. This an increase of only three
days.
In order to grant a temporary waiver
request, the ASC must find both that
there is a scarcity of appraisers in the
relevant geographic area and that this
scarcity has caused significant delays in
appraisal services for FRTs. In this case,
the information submitted to the ASC
does not support a finding that there is
a scarcity of appraisers that has resulted
in a significant delay in the delivery
times for appraisals. Thus, this request
is denied.
VI. Order
For the reasons stated above, and
pursuant to section 1119(b) of Title XI
and 12 CFR part 1102, subpart A, the
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Federal Register / Vol. 83, No. 86 / Thursday, May 3, 2018 / Notices
ASC denies the request for temporary
waiver relief from the State certification
requirements for certified general
appraisers to perform commercial
appraisals for FRTs in the Tennessee
counties of Dickson, Maury, Williamson
and Davidson.
*
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*
Port of Los Angeles terminals to ensure
compliance with the Port’s Clean Truck
Program. The Agreement also governs
the maintenance of, and access to, the
Drayage Truck registry, which contains
information on whether trucks meet the
Port’s criteria for terminal access under
its Clean Truck Program.
By the Appraisal Subcommittee.
Dated April 27, 2018.
Arthur Lindo,
Chairman.
Dated: April 30, 2018.
Rachel E. Dickon,
Secretary.
[FR Doc. 2018–09419 Filed 5–2–18; 8:45 am]
Board of Governors of the Federal Reserve
System, April 26, 2018.
Ann Misback,
Secretary of the Board.
BILLING CODE 6731–AA–P
[FR Doc. 2018–09364 Filed 5–2–18; 8:45 am]
BILLING CODE
FEDERAL TRADE COMMISSION
[FR Doc. 2018–09365 Filed 5–2–18; 8:45 am]
Privacy Act of 1974; System of
Records
AGENCY:
BILLING CODE 6700–01–P
Federal Trade Commission
(FTC).
FEDERAL RESERVE SYSTEM
FEDERAL MARITIME COMMISSION
sradovich on DSK3GMQ082PROD with NOTICES
Notice of Agreements Filed
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit comments
on the agreements to the Secretary,
Federal Maritime Commission,
Washington, DC 20573, within twelve
days of the date this notice appears in
the Federal Register. Copies of the
agreements are available through the
Commission’s website (www.fmc.gov) or
by contacting the Office of Agreements
at (202)–523–5793 or tradeanalysis@
fmc.gov.
Agreement No.: 201248.
Title: COSCO SHIPPING/PIL/WHL/
CMA CGM Vessel Sharing and Slot
Exchange Agreement.
Parties: CMA CGM S.A.; COSCO
Shipping Co., Ltd.; Pacific International
Lines (PTE) Ltd.; Wan Hai Lines
(Singapore) Pte. Ltd.; and Wan Hai
Lines Ltd.
Filing Party: Eric Jeffrey; Nixon
Peabody LLP; 799 9th Street NW, Suite
500; Washington, DC 20001.
Synopsis: The Agreement authorizes
the Parties to operate a joint service and
to exchange slots between that joint
service and a service operated by CMA
CGM in the trade between ports in
China (including Hong Kong) and ports
on the United States West Coast.
Agreement No.: 201249.
Title: Port of Los Angeles Data
Delivery Agreement.
Parties: City of Los Angeles; APM
Terminals Pacific Ltd.; Eagle Marine
Services, Ltd.; Everport Terminal
Services Inc.; TraPac Inc., West Basin
Container Terminal LLC; and Yusen
Terminals LLC.
Filing Party: David Smith & Jeff Vogel;
Cozen O’Connor; 1200 19th Street NW,
Washington, DC 20036.
Synopsis: The Agreement authorizes
the parties to collect and deliver data
with respect to trucks moving through
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications will also be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than May 29, 2018.
A. Federal Reserve Bank of St. Louis
(David L. Hubbard, Senior Manager)
P.O. Box 442, St. Louis, Missouri
63166–2034. Comments can also be sent
electronically to
Comments.applications@stls.frb.org:
1. BancStar, Inc., and Pacific
BancStar, Inc., both of St. Louis,
Missouri; to merge with Hillsboro
Bancshares, Inc., Hillsboro, Missouri,
and thereby indirectly acquire Bank of
Hillsboro, Hillsboro, Missouri.
VerDate Sep<11>2014
17:29 May 02, 2018
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ACTION:
Notice of modified systems of
records.
The FTC proposes to modify
all FTC Privacy Act system of records
notices (SORNs) by amending and
bifurcating an existing routine use
relating to assistance in data breach
responses, to conform with Office of
Management and Budget (OMB)
guidance to federal agencies, OMB
Memorandum 17–12.
DATES: Comments must be submitted by
June 4, 2018. This routine use, which is
being published in proposed form, shall
become final and effective July 2, 2018,
without further notice unless otherwise
amended or repealed by the
Commission on the basis of any
comments received.
ADDRESSES: Interested parties are
invited to submit written comments by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Comments should refer to
‘‘Privacy Act of 1974; System of
Records: FTC File No. P072104’’ to
facilitate the organization of comments.
Please file your comment online at
https://ftcpublic.commentworks.com/
ftc/privacyactroutineuse by following
the instructions on the web-based form.
If you prefer to file your comment on
paper, mail or deliver your comment to
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Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex J), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
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FOR FURTHER INFORMATION CONTACT: G.
Richard Gold and Alex Tang, Attorneys,
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]]>Agencies
[Federal Register Volume 83, Number 86 (Thursday, May 3, 2018)]
[Notices]
[Pages 19558-19560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09419]
=======================================================================
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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
[Docket No. AS18-07]
Final Order Denying Temporary Waiver Relief
AGENCY: Appraisal Subcommittee of the Federal Financial Institutions
Examination Council.
ACTION: Final Order denying temporary waiver relief.
-----------------------------------------------------------------------
SUMMARY: The Appraisal Subcommittee (ASC) of the Federal Financial
Institutions Examination Council (FFIEC) is issuing a final order
denying temporary waiver relief pursuant to the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989, as amended. This order
denies a request for temporary waiver relief received from TriStar
Bank, notice of which was published in the Federal Register on March 9,
2018.
DATES: Applicable May 3, 2018.
FOR FURTHER INFORMATION CONTACT: James R. Park, Executive Director, at
(202) 595-7575, or Alice M. Ritter, General Counsel, at (202) 595-7577,
ASC, 1401 H Street NW, Suite 760, Washington, DC 20005.
SUPPLEMENTARY INFORMATION:
I. Background
A. Relevant statutory provisions and regulations
Title XI established the ASC.\1\ The purpose of Title XI is ``to
provide that Federal financial and public policy interests in real
estate related transactions will be protected by requiring that real
estate appraisals utilized in connection with federally related
transactions are performed in writing, in accordance with uniform
standards, by individuals whose competency has been demonstrated and
whose professional conduct will be subject to effective supervision.''
\2\ Section 1119(b) of Title XI authorizes the ASC to waive, on a
temporary basis and with approval of the FFIEC, ``any requirement
relating to certification or licensing of a person to perform
appraisals under [Title XI] upon a written determination that there is
a scarcity of certified or licensed appraisers to perform appraisals in
connection with federally related transactions \3\ in a State, or in
any geographical political subdivision of a State, leading to
significant delays in the performance of such appraisals.'' \4\
Congress intended that the ASC exercise this waiver authority
``cautiously.'' \5\
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\1\ The ASC Board is comprised of seven members. Five members
are designated by the heads of the FFIEC agencies (Board of
Governors of the Federal Reserve System [Board], Bureau of Consumer
Financial Protection [Bureau], Federal Deposit Insurance Corporation
[FDIC], Office of the Comptroller of the Currency [OCC], and
National Credit Union Administration [NCUA]). The other two members
are designated by the heads of the Department of Housing and Urban
Development (HUD) and the Federal Housing Finance Agency (FHFA).
\2\ Title XI Sec. 1101, 12 U.S.C. 3331.
\3\ ``Federally related transaction'' (FRT) refers to any real
estate related financial transaction which: (a) A federal financial
institutions regulatory agency engages in, contracts for, or
regulates; and (b) requires the services of an appraiser. (Title XI
Sec. 1121 (4), 12 U.S.C. 3350.)
\4\ 12 U.S.C. 3348(b).
\5\ House Comm. on Banking, Finance and Urban Affairs, Report
Together with Additional, Supplemental, Minority, Individual, and
Dissenting Views, Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, H.R. Rep. No. 101-54 Part 1, 101st Cong.,
1st Sess., at 482-83.
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The ASC has issued procedures \6\ governing the processing of
temporary waiver requests. After receiving a waiver request, the ASC is
required to issue a public notice in the Federal Register requesting
comment on the request for a proposed temporary waiver. Within 15 days
of the close of the 30-day comment period, the ASC, by order, must
grant or deny a waiver, in whole or in part, and upon specified terms
or conditions, including provisions for waiver termination. The ASC's
order must respond to comments received, provide reasons for its
finding, and be published promptly in the Federal Register.
---------------------------------------------------------------------------
\6\ 12 CFR part 1102, subpart A.
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B. Procedural Status
On November 20, 2017, the ASC received a letter requesting
consideration of a temporary waiver from TriStar Bank, a state-
chartered bank located in Dickson, Tennessee (Requester). On November
30, 2017, ASC staff replied by letter to the Requester, in which ASC
staff described the information required to file a completed waiver
request pursuant to 12 CFR Sec. Sec. 1102.2 and 1102.3. On January 22,
2018, the Requester submitted additional information (dated January 10,
2018) in response to the ASC's November 30, 2017 letter. On March 9,
2018, the ASC published a Notice of Received Request for a Temporary
Waiver giving interested persons 30 days to submit comments, including
submission of written data, views and arguments.\7\ On April 3, 2018,
the Requester submitted correspondence with additional information in
response to a comment letter submitted by the Tennessee Real Estate
Appraiser Commission (discussed infra). The comment period closed on
April 9, 2018. A discussion of the public comments received by the ASC
concerning the request for temporary waiver relief follows in Section
III below.
---------------------------------------------------------------------------
\7\ 83 FR 10480 (March 9, 2018).
---------------------------------------------------------------------------
The ASC called a special meeting to consider this matter on April
23, 2018, and voted to approve the issuance of this final order denying
temporary waiver relief.
II. Request for a Temporary Waiver
The request submitted by the Requester sought temporary waiver
relief ``to receive a one-year waiver of the appraisal regulation's
requirements to utilize a certified appraiser. . . . for appraisals
completed within the Nashville MSA. . . . mostly in Dickson, Maury,
Williamson and Davidson
[[Page 19559]]
counties.'' \8\ The Requester stated that the shortage of appraisers,
time delay and added cost is negatively impacting clients.
---------------------------------------------------------------------------
\8\ Letter from Requester to the ASC requesting a temporary
waiver (Nov. 20, 2017).
---------------------------------------------------------------------------
The Requester submitted data to support the request alleging a
scarcity of certified general appraisers and delays experienced in
receiving commercial appraisals/evaluations. The Requester stated,
``[w]e reviewed our appraisal logs in 2013 and in 2017 to determine the
trend of pricing and timeliness of appraisals/evaluations during each
year. Since 2013, the logs reflect an average increase of 82% in wait
time to receive commercial appraisals/evaluations. During that time,
the average cost to our clients for commercial appraisals/evaluations
has increased 23%. The cost of time and money is putting pressure on
our clients' ability to find value in our work.'' \9\ The Requester
further stated concern that ``the new requirements to become a
certified general appraiser are not producing enough qualified
appraisers in the market. A current appraiser has little motivation to
train someone that he or she will have to compete against in the future
or the time to commit to train an apprentice during this time of
tremendous growth.'' \10\
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\9\ Id.
\10\ Id.
---------------------------------------------------------------------------
The Requester stated there is only one certified general appraiser
in the county of Dickson, and the demand is so great in the Nashville
MSA area that the Requester is having a difficult time receiving
appraisals in a reasonable amount of time. The Requester expressed
concern that ``current regulation and requirements are not allowing a
healthy marketplace to obtain independent values.'' \11\
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\11\ Letter from Requester to the ASC providing additional
information on the request for a temporary waiver (Jan. 10, 2018).
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III. Summary of Comments
The ASC received 166 comment letters in response to the published
notice of received request for a temporary waiver and request for
comment. These comment letters were received from State appraiser
certifying and licensing agencies, appraiser and real estate trade
associations, professional associations, AMCs, appraisal firms and
appraisers. The majority of comments received were from appraisers
opposing the granting of a temporary waiver. Several comments were also
received from appraisal trade organizations opposing the granting of a
temporary waiver.\12\ Several appraisers credentialed in Tennessee
responded to the ASC's request for comments by stating they have
contacted TriStar offering to perform appraisals for the bank, but have
not been assigned any appraisals or evaluations to date. A few
commenters did not oppose or support the granting of a temporary waiver
in response to this request, but requested the ASC exercise such waiver
authority with caution. A few commenters supported the request for a
waiver, but expressed support of a waiver of the requirement for an
appraisal, which is beyond the scope of authority set forth in the
statute authorizing the ASC to waive, on a temporary basis and with
approval of the FFIEC, credentialing requirements.
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\12\ A number of commenters indicated that granting the waiver
would erode the public trust, and a number of other commenters
cautioned that granting of the waiver would result in the same
conditions that led to the financial crisis in 2008.
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One commenter who had provided appraisal and evaluation services
for the Requester since 2012 provided data that in some cases
contradicted data provided by the Requester. For example, the commenter
claimed to have completed a number of commercial appraisals that were
not included in the data submitted by the Requester. In addition, the
commenter provided an explanation for lengthy turn-around times on two
of the commercial properties listed in the Requester's data.
The Tennessee Real Estate Appraiser Commission (TN REAC) provided
comment on this request, stating that it ``disagrees that there is a
shortage of appraisers in those cited counties.'' \13\ TN REAC also
provided data showing that 174 Certified General appraisers and 491
total credentialed appraisers are available in the four counties and
the directly surrounding area. This information is supported by the
National Registry.\14\
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\13\ Letter from TN REAC to the ASC responding to request for
comments on the temporary waiver request. (Jan. 23, 2018).
\14\ Title XI requires the ASC to maintain a National Registry
of State certified and licensed appraisers who are eligible to
perform appraisals in FRTs. (Title XI Sec. 1109(b)1), 12 U.S.C.
3338(b)(1).)
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IV. ASC Discussion
In order to grant a temporary waiver, the ASC must make a
determination that a scarcity of credentialed appraisers is leading to
significant delays in obtaining appraisals for FRTs in the geographic
area \15\ specified in the request. In considering this request, the
ASC examined both evidence of a scarcity of appraisers in the area, and
evidence of significant delay, taking into account the comments
received.
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\15\ The ASC's section 1119(b) temporary waiver authority is
with respect to a State or any geographical political subdivision of
a State.
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Regarding the scarcity of appraisers, the Requester's comments
focused on Dickson County. The Requester provided little discussion of
scarcity in Maury, Davidson, and Williamson counties and no discussion
of other counties in the Nashville MSA. As noted, TN REAC disagreed
that a scarcity exists, and submitted more comprehensive information
concerning the number of appraisers in this area.
Regarding the delay in obtaining appraisals, the Requester
submitted data to show that the delivery time for the appraisals and
evaluations it has ordered and received increased between 2013 and
2017. Because the request for a temporary waiver applies only to
appraisals, the ASC focused on data related to delivery time for
appraisals. Delivery times for appraisals alone have increased by a
smaller percentage than the aggregated delivery times. In addition, the
ASC believes it is useful to look at the median appraisal delivery
times, especially in light of the small sample size presented by the
Requester. Using the median time also results in an analysis that is
more resistant to the influence of outliers in the data. The data
provided by the Requester indicates that the delivery time for a
commercial appraisal it ordered in the subject counties in 2013 was 21
days. In 2017, the delivery time was 27 days. Comparing the median
numbers yields a six-day increase in the appraisal time between 2013
and 2017, based on the data provided by TriStar. But it appears the
Requester's data may be incomplete. One commenter asserted that he
completed additional commercial appraisals for the Requester in 2017
that were not reported. If these appraisals are considered in
calculating the median, the delivery time for the Requester's
commercial appraisals in 2017 was 24 days. This an increase of only
three days.
In order to grant a temporary waiver request, the ASC must find
both that there is a scarcity of appraisers in the relevant geographic
area and that this scarcity has caused significant delays in appraisal
services for FRTs. In this case, the information submitted to the ASC
does not support a finding that there is a scarcity of appraisers that
has resulted in a significant delay in the delivery times for
appraisals. Thus, this request is denied.
VI. Order
For the reasons stated above, and pursuant to section 1119(b) of
Title XI and 12 CFR part 1102, subpart A, the
[[Page 19560]]
ASC denies the request for temporary waiver relief from the State
certification requirements for certified general appraisers to perform
commercial appraisals for FRTs in the Tennessee counties of Dickson,
Maury, Williamson and Davidson.
* * * * *
By the Appraisal Subcommittee.
Dated April 27, 2018.
Arthur Lindo,
Chairman.
[FR Doc. 2018-09419 Filed 5-2-18; 8:45 am]
BILLING CODE 6700-01-P
