Final Order Denying Temporary Waiver Relief, 19558-19560 [2018-09419]

Download as PDF 19558 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] BILLING CODE 1610–02–P SUPPLEMENTARY INFORMATION: FEDERAL ELECTION COMMISSION I. Background Sunshine Act Meeting TIME AND DATE: Tuesday, May 8, 2018 at 10:00 a.m. PLACE: 1050 First Street NE, Washington, DC STATUS: This meeting will be closed to the public. MATTERS TO BE CONSIDERED: Compliance matters pursuant to 52 U.S.C. 30109. Matters relating to internal personnel decisions, or internal rules and practices. Information the premature disclosure of which would be likely to have a considerable adverse effect on the implementation of a proposed Commission action. Matters concerning participation in civil actions or proceedings or arbitration. * * * * * CONTACT PERSON FOR MORE INFORMATION: Judith Ingram, Press Officer, Telephone: (202) 694–1220. Dayna C. Brown, Secretary and Clerk of the Commission. [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: VerDate Sep<11>2014 17:29 May 02, 2018 Jkt 244001 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. PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 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). E:\FR\FM\03MYN1.SGM 03MYN1 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). VerDate Sep<11>2014 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. PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 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 E:\FR\FM\03MYN1.SGM 03MYN1 19560 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. * * * * * 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 Jkt 244001 PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 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 the following address: Federal Trade 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), Washington, DC 20024. FOR FURTHER INFORMATION CONTACT: G. Richard Gold and Alex Tang, Attorneys, Office of the General Counsel, FTC, 600 Pennsylvania Avenue NW, Washington, DC 20580, (202) 326–2424. SUPPLEMENTARY INFORMATION: SUMMARY: E:\FR\FM\03MYN1.SGM 03MYN1

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.

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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.
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    \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.
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    \7\ 83 FR 10480 (March 9, 2018).
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    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.
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    \8\ Letter from Requester to the ASC requesting a temporary 
waiver (Nov. 20, 2017).
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    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.
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    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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