Proposed Collection; Comment Request, 36931-36935 [2018-16350]
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Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices
Title: Accelerating Wireline
Broadband Deployment by Removing
Barriers to Infrastructure Investment,
GN Docket No. 17–84.
Form Number(s): N/A.
Type of Review: Revision of a
currently approved collection.
Respondents: Business or other forprofit entities.
Number of Respondents and
Responses: 5,357 respondents; 573,928
responses.
Estimated Time per Response: 0.5–4.5
hours.
Frequency of Response: On occasion
reporting requirements; recordkeeping
and third-party disclosure requirements.
Obligation to Respond: Required to
obtain or retain benefits. Statutory
authority for this information collection
is contained in 47 U.S.C. 222 and 251.
Total Annual Burden: 575,448 hours.
Total Annual Cost: No cost.
Privacy Act Impact Assessment: No
impact(s).
Nature and Extent of Confidentiality:
The Commission is not requesting that
the respondents submit confidential
information to the FCC. Respondents
may, however, request confidential
treatment for information they believe to
be confidential under 47 CFR 0.459 of
the Commission’s rules.
Needs and Uses: Section 251 of the
Communications Act of 1934, as
amended, 47 U.S.C. 251, is designed to
accelerate private sector development
and deployment of telecommunications
technologies and services by spurring
competition. Section 222(e) is also
designed to spur competition by
prescribing requirements for the sharing
of subscriber list information. These
information collection requirements are
designed to help implement certain
provisions of sections 222(e) and 251,
and to eliminate operational barriers to
competition in the telecommunications
services market. Specifically, these
information collection requirements
will be used to implement (1) local
exchange carriers’ (‘‘LECs’’) obligations
to provide their competitors with
dialing parity and non-discriminatory
access to certain services and
functionalities; (2) incumbent local
exchange carriers’ (‘‘ILECs’’) duty to
make network information disclosures;
and (3) numbering administration. The
revisions to this collection relate to
changes in one of many components of
the currently approved collection—
specifically, certain reporting,
recordkeeping and/or third-party
disclosure requirements under section
251(c)(5). In November 2017, the
Commission adopted new rules
concerning certain information
collection requirements implemented
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under section 251(c)(5) of the Act,
pertaining to network change
disclosures. Most of the changes to
those rules applied specifically to a
certain subset of network change
disclosures, namely notices of planned
copper retirements. In addition, the
changes removed a rule that prohibits
incumbent LECs from engaging in useful
advanced coordination with entities
affected by network changes. In June
2018, the Commission revised its
network change disclosure rules to (1)
revise the types of network changes that
trigger an incumbent LEC’s public
notice obligation, and (2) extend the
force majeure provisions applicable to
copper retirements to all types of
network changes. The changes are
aimed at removing unnecessary
regulatory barriers to the deployment of
high-speed broadband networks. The
Commission estimates that these
revisions do not result in any change to
the total annual burden hours or any
additional outlays of funds for hiring
outside contractors or procuring
equipment as the changes eliminate
notices that are subsumed by notice
obligations that remain in force or
simply codify procedures available to a
small number of incumbent LECs by
waiver orders.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2018–16300 Filed 7–30–18; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL HOUSING FINANCE
AGENCY
[No. 2018–N–08]
Proposed Collection; Comment
Request
Federal Housing Finance
Agency.
ACTION: 30-Day notice of submission of
information collection for approval from
Office of Management and Budget.
AGENCY:
In accordance with the
requirements of the Paperwork
Reduction Act of 1995 (PRA), the
Federal Housing Finance Agency (FHFA
or the Agency) is seeking public
comments concerning an information
collection known as ‘‘Minimum
Requirements for Appraisal
Management Companies,’’ which has
been assigned control number 2590–
0013 by the Office of Management and
Budget (OMB). FHFA intends to submit
the information collection to OMB for
review and approval of a three-year
SUMMARY:
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36931
extension of the control number, which
is due to expire on July 31, 2018.
DATES: Interested persons may submit
comments on or before August 30, 2018.
ADDRESSES: Submit comments to the
Office of Information and Regulatory
Affairs of the Office of Management and
Budget, Attention: Desk Officer for the
Federal Housing Finance Agency,
Washington, DC 20503, Fax: (202) 395–
3047, Email: OIRA_submission@
omb.eop.gov. Please also submit
comments to FHFA, identified by
‘‘Proposed Collection; Comment
Request: ‘Minimum Requirements for
Appraisal Management Companies, (No.
2018–N–08)’’’ by any of the following
methods:
• Agency Website: www.fhfa.gov/
open-for-comment-or-input.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments. If
you submit your comment to the
Federal eRulemaking Portal, please also
send it by email to FHFA at
RegComments@fhfa.gov to ensure
timely receipt by the Agency.
• Mail/Hand Delivery: Federal
Housing Finance Agency, Eighth Floor,
400 Seventh Street SW, Washington, DC
20219, ATTENTION: Proposed
Collection; Comment Request:
‘‘Minimum Requirements for Appraisal
Management Companies, (No. 2018–N–
08).’’
We will post all public comments we
receive without change, including any
personal information you provide, such
as your name and address, email
address, and telephone number, on the
FHFA website at https://www.fhfa.gov. In
addition, copies of all comments
received will be available for
examination by the public through the
electronic comment docket for this PRA
Notice also located on the FHFA
website.
FOR FURTHER INFORMATION CONTACT:
Robert Witt. Senior Policy Analyst,
Office of Housing and Regulatory
Policy, by email at Robert.Witt@fhfa.gov
or by telephone at (202) 649–3128; or
Eric Raudenbush, Associate General
Counsel, Eric.Raudenbush@fhfa.gov,
(202) 649–3084 (these are not toll-free
numbers); Federal Housing Finance
Agency, 400 Seventh Street SW,
Washington, DC 20219. The
Telecommunications Device for the
Hearing Impaired is (800) 877–8339.
SUPPLEMENTARY INFORMATION: FHFA is
seeking comments on its upcoming
request to OMB to renew the PRA
clearance for the following collection of
information:
Title: Minimum requirements for
appraisal management companies.
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Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices
OMB Number: 2590–0013.
Affected Public: Participating States
and State-registered Appraisal
Management Companies.
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A. Need for and Use of the Information
Collection
In 2015, the Federal Deposit
Insurance Corporation (FDIC), the Office
of the Comptroller of the Currency
(OCC), the Board of Governors of the
Federal Reserve System (Board), the
Bureau of Consumer Financial
Protection (Bureau), and FHFA
(collectively, the Agencies) jointly
issued regulations 1 to implement
provisions of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act) relating to the
eligibility of appraisal management
companies (AMCs) to provide appraisal
management services for real estate
related financial transactions that are
engaged in, contracted for, or regulated
by a ‘‘federal financial institutions
regulatory agency’’ or the Resolution
Trust Corporation (‘‘Federally related
transactions’’).2 Generally, these
statutory provisions provide that an
AMC either be registered with a state’s
appraiser certifying and licensing
agency or be subject to oversight by a
federal financial institutions regulatory
agency in order to participate in a
Federally related transaction.3
As required by the Dodd-Frank Act
provisions, the Agencies’ joint AMC
regulations establish minimum
requirements for the registration and
supervision of AMCs to be applied by
states that have elected to establish an
appraiser certifying and licensing
agency with authority to register and
supervise AMCs (participating states).4
1 See 80 FR 32658 (June 9, 2015). By agreement,
the responsibility for clearance under the PRA of
information collections contained in the joint
regulations is shared only by the FDIC, OCC, Board,
and FHFA.
2 See 12 U.S.C. 3350(4), (5). ‘‘Federal financial
institutions regulatory agency’’ includes the FDIC,
OCC, Board, and National Credit Union
Administration. See 12 U.S.C. 3350(6).
3 Section 1117 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989
(FIRREA), 12 U.S.C. 3346, permits states to
establish an appraiser certifying and licensing
agency ‘‘to assure the availability of State certified
and licensed appraisers for the performance in a
State of appraisals in federally related transactions
and to assure effective supervision of the activities
of certified and licensed appraisers.’’ The DoddFrank Act amended section 1117 to provide that the
duties of a state appraiser certifying and licensing
agency may also include the registration and
supervision of AMCs. Although states are not
required by federal law to register and supervise
AMCs, or even to establish an appraiser certifying
and licensing agency, an AMC that is not registered
with such a state agency (except for those regulated
by a federal financial institutions regulatory agency)
may not participate in a federally-related
transaction in that state. See 12 U.S.C. 3353(f)(1).
4 See 12 CFR 1222.23.
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The joint regulations also implement the
statutory requirement that states report
to the Appraisal Subcommittee (ASC) of
the Federal Financial Institutions
Examination Council (FFIEC) the
information required by the ASC to
administer a national registry of AMCs
(AMC National Registry or Registry).5
When fully established, the AMC
National Registry will include AMCs
that are either: (1) Subsidiaries owned
and controlled by an insured depository
institution (as defined in 12 U.S.C.
1813) and regulated by either the FDIC,
OCC, or Board (federally regulated
AMCs) ;6 or (2) registered with, and
subject to supervision of, a state
appraiser certifying and licensing
agency. FHFA’s AMC regulation,
located at Subpart B of 12 CFR part
1222, is substantively identical to the
AMC regulations of the FDIC, OCC, and
Board and contains the recordkeeping
and reporting requirements described
below.7
1. State Reporting Requirements (IC #1)
The regulation requires that each state
electing to register AMCs for purposes
of permitting AMCs to provide appraisal
management services relating to covered
transactions in the state submit to the
ASC the information regarding such
AMCs required to be submitted by ASC
regulations or guidance concerning
AMCs that operate in the state.8
2. State Recordkeeping Requirements
(IC #2)
States seeking to register AMCs must
have an AMC registration and
supervision program. The regulation
requires each participating state to
establish and maintain within its
appraiser certifying and licensing
agency a registration and supervision
program with the legal authority and
mechanisms to: (i) Review and approve
or deny an application for initial
registration; (ii) periodically review and
renew, or deny renewal of, an AMC’s
registration; (iii) examine an AMC’s
books and records and require the
submission of reports, information, and
documents; (iv) verify an AMC’s panel
members’ certifications or licenses; (v)
investigate and assess potential
violations of laws, regulations, or
orders; (vi) discipline, suspend,
terminate, or deny registration renewals
of AMCs that violate laws, regulations,
or orders; and (vii) report violations of
12 U.S.C. 3353(e).
12 CFR 1222.21(k) (defining ‘‘Federally
regulated AMC’’).
7 See 12 CFR 1222.20 through 1222.26. For
clarity, the regulatory citations in this notice are to
FHFA’s version of the joint regulations only.
8 See 12 CFR 1222.26.
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laws, regulations, or orders, and
disciplinary and enforcement actions to
the ASC.9
The regulation requires each
participating state to impose
requirements on AMCs that are not
federally regulated (non-federally
regulated AMCs) to: (i) Register with
and be subject to supervision by a state
appraiser certifying and licensing
agency in each state in which the AMC
operates; (ii) use only state-certified or
state-licensed appraisers for federally
regulated transactions in conformity
with any federally regulated transaction
regulations; (iii) establish and comply
with processes and controls reasonably
designed to ensure that the AMC, in
engaging an appraiser, selects an
appraiser who is independent of the
transaction and who has the requisite
education, expertise, and experience
necessary to competently complete the
appraisal assignment for the particular
market and property type; (iv) direct the
appraiser to perform the assignment in
accordance with the Uniform Standards
of Professional Appraisal Practice; and
(v) establish and comply with processes
and controls reasonably designed to
ensure that the AMC conducts its
appraisal management services in
accordance with sections 129E(a)
through (i) of the Truth-in-Lending
Act.10
3. AMC Reporting Requirements (IC #3)
The regulation provides that an AMC
may not be registered by a state or
included on the AMC National Registry
if the company is owned, directly or
indirectly, by any person who has had
an appraiser license or certificate
refused, denied, cancelled, surrendered
in lieu of revocation, or revoked in any
state for a substantive cause.11 The
regulation also provides that an AMC
may not be registered by a state if any
person that owns 10 percent or more of
the AMC fails to submit to a background
investigation carried out by the state
appraiser certifying and licensing
agency.12 Thus, each AMC registering
with a state must provide information to
the state on compliance with those
ownership restrictions. Further, the
regulation requires that a federally
regulated AMC report to the state or
states in which it operates the
information required to be submitted by
the state pursuant to the ASC’s policies,
including policies regarding the
determination of the AMC National
5 See
6 See
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9 See
12 CFR 1222.23(a).
12 CFR 1222.23(b). Sections 129E(a)
through (i) of the Truth-in-Lending Act are located
at 15 U.S.C. 1639e(a) through (i).
11 See 12 CFR 1222.24(a) and 1222.25(b).
12 See 12 CFR 1222.24(b).
10 See
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Registry fee, and information regarding
compliance with the ownership
restrictions described above.13
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4. AMC Recordkeeping Requirements
(IC #4)
An entity meets the definition of an
AMC that is subject to the requirements
of the AMC regulation if, among other
things, it oversees an appraiser panel of
more than 15 state-certified or statelicensed appraisers in a state, or 25 or
more state-certified or state-licensed
appraisers in two or more states, within
a given 12-month period.14 For
purposes of determining whether a
company qualifies as an AMC under
that definition, the regulation provides
that an appraiser in an AMC’s network
or panel is deemed to remain on the
network or panel until: (i) The AMC
sends a written notice to the appraiser
removing the appraiser with an
explanation; or (ii) receives a written
notice from the appraiser asking to be
removed or a notice of the death or
incapacity of the appraiser.15 The AMC
would retain these notices in its files.
B. Burden Estimate
FHFA’s burden estimates for the
information collections described above
appear below. The estimates below
remain the same as those set forth in the
60-day notice, despite one commenter’s
assertion that some of the assumptions
underlying those burden estimates are
incorrect. Those assertions and FHFA’s
responses are addressed below in
section C of the notice.
There is no change in the existing
methodology or substance of this
information collection. For the
information collections described above,
the general methodology is to compute
the industry wide burden hours for
participating states and AMCs and then
assign a share of the burden hours to
each of the Agencies for each
information collection.
As noted above, each of the Agencies’
AMC regulations contains reporting and
recordkeeping requirements applying to
participating states and to both federally
regulated and non-federally regulated
AMCs. The Agencies have estimated
that approximately 200 entities meet the
regulatory definition of an ‘‘appraisal
management company’’ 16 and that, of
those 200 AMCs, approximately 120 are
federally regulated and approximately
80 are non-federally regulated.17 Unlike
13 See
12 CFR 1222.25(c).
14 See 12 CFR 1222.21(c)(iii).
15 See 12 CFR 1222.22(b).
16 In FHFA’s regulations, this definition is set
forth at 12 CFR 1222.21(c).
17 FHFA anticipates that definitive information
on the total number of AMCs and on the relative
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the insured depository institutions
regulated by the OCC, FDIC, and Board,
none of FHFA’s regulated entities owns
or controls an AMC or, by law, could
ever own or control an AMC.
Accordingly, the Agencies have agreed
that responsibility for the burdens
arising from reporting and
recordkeeping requirements imposed
upon federally regulated AMCs are to be
split evenly among the OCC, FDIC, and
Board (i.e., the equivalent of 40
federally regulated AMCs for each
agency) and that FHFA will not include
those burdens in its totals. The four
Agencies have agreed to split the total
burdens imposed upon participating
states and upon non-federally regulated
AMCs evenly between them (i.e., by
taking responsibility for 25 percent of
the burden per agency or, in the case of
non-federally regulated AMCs, the
equivalent of 20 such AMCs for each
agency).
Thus, for ICs #1 and #2, which relate
to reporting and recordkeeping
requirements imposed upon
participating states, each agency is
responsible for 25 percent of the total
estimated burden. For ICs #3 and #4,
which relate to reporting and
recordkeeping requirements imposed
upon both federally regulated AMCs
and non-federally regulated AMCs, the
OCC, FDIC, and Board are each
responsible for the burden imposed
upon a total of 60 AMCs (40 federally
regulated plus 20 non-federally
regulated), or 30 percent of the total
burden, while FHFA is responsible only
for the burden imposed upon 20 nonfederally regulated AMCs, or 10 percent
of the total burden.
The Agencies estimate the total
annualized hour burden placed on
respondents by the information
collection in the joint AMC regulations
to be 1,445 hours. FHFA estimates its
share of the hour burden to be 183
hours. The calculations on which those
estimates are based are described below.
1. State Reporting Requirements (IC #1)
The total estimated burden hours for
states reporting to the ASC are
calculated by multiplying the number of
states by the hour burden per state. The
burden hours are then divided equally
among the FDIC, OCC, Board, and
FHFA, with each agency responsible for
25 percent of the total. For purposes of
this calculation, the number of states is
set at 55 which, in conformity with the
regulatory definition of ‘‘state,’’ includes
number of federally regulated and non-federally
regulated AMCs will become available after the
AMC National Registry becomes fully operational in
2020.
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all 50 U.S. states as well as the
Commonwealth of the Northern Mariana
Islands, the District of Columbia, Guam,
Puerto Rico, and the U.S. Virgin
Islands.18 The burden estimate of 1 hour
per report is unchanged from the
estimate provided for the currentlyapproved ICR. Therefore, the estimated
total state reporting burden attributable
to all of the Agencies is: 55 states × 1
hour/state = 55 hours. The estimated
burden hours attributable to FHFA are
55 hours × 25 percent = 14 hours
(rounded to the nearest whole number).
2. State Recordkeeping Requirements
(IC #2)
The estimated burden hours on
participating states for developing and
maintaining an AMC licensing program
is calculated by multiplying the number
of states without a registration and
licensing program by the hour burden to
develop the system. The total burden
hours are then equally divided among
the FDIC, OCC, Board, and FHFA.
According to the Appraisal Institute, as
of July 26, 2017, there were 5 states that
had not developed a system to register
and oversee AMCs.19 The burden
estimate of 40 hours per state without a
registration system is unchanged from
the estimate provided for the currentlyapproved ICR. Therefore, the total
estimated burden attributable to all of
the Agencies is: 5 states × 40 hours/state
= 200 hours. The estimated burden
hours attributable to FHFA are 200
hours × 25 percent = 50 hours.
3. AMC Reporting Requirements (IC #3)
The burden for AMC reporting
requirements for information needed to
determine the AMC National Registry
fee and information regarding
compliance with the AMC ownership
restrictions is calculated by multiplying
the number of AMCs by the frequency
of response and then by the burden per
response. As described above, 30
percent of the burden hours are then
assigned to each of the FDIC, OCC, and
Board, while 10 percent are assigned to
FHFA.
The frequency of response is
estimated as the number of states that
do not have an AMC registration
program in which the average AMC
operates.20 As discussed above, 5 states
do not have AMC registration or
18 See
12 CFR 1222.21(o).
Institute ‘‘Enacted State AMC Laws,’’
https://www.appraisalinstitute.org/advocacy/
enacted-state-amc-laws1/.
20 The number of states includes all U.S. states,
territories, and districts to include: The
Commonwealth of the Northern Mariana Islands;
the District of Columbia; Guam; Puerto Rico; and
the U.S. Virgin Islands.
19 Appraisal
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oversight programs. According to the
Consumer Financial Protection Bureau
(CFPB), the average AMC operates in
19.56 states.21 Therefore, the average
AMC operates in approximately 2 states
that do not have AMC registration
systems: (5 states/55 states) × 19.56
states = 1.778 states, rounded to 2 states.
The burden estimate of one hour per
response is unchanged from the
estimate provided for the currentlyapproved ICR. Therefore, the total
estimated hour burden is: 200 AMCs ×
2 states × 1 hour = 400 hours. The
estimated burden hours attributable to
FHFA are 400 hours × 10 percent = 40
hours.
4. AMC Recordkeeping Requirements
(IC #4)
The burden for recordkeeping by
AMCs of written notices of appraiser
removal from a network or panel is
estimated to be equal to the number of
appraisers who leave the profession per
year multiplied by the estimated
percentage of appraisers who work for
AMCs, then multiplied by burden hours
per notice. As described above, 30
percent of the burden hours are then
assigned to each of the FDIC, OCC, and
Board, while 10 percent are assigned to
FHFA.
The number of appraisers who leave
an AMC annually, either by resigning,
being laid off, or having their licenses
revoked or surrendered, is estimated to
be 9,881. The burden estimate of 0.08
hours per notice is unchanged from the
estimate provided for the currentlyapproved ICR. Therefore, the estimated
total hour burden is: 9,881 notices ×
0.08 hours = 790 hours (rounded to the
nearest whole number). The estimated
burden hours attributable to FHFA are
790 hours × 10 percent = 79 hours.
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C. Response to Comments Received
In accordance with the requirements
of 5 CFR 1320.8(d), FHFA published an
initial notice and request for comments
regarding the renewal of the PRA
clearance for this information collection
in the Federal Register on May 16, 2018
(‘‘60-day notice’’).22 The 60-day
comment period closed on July 16,
2018. FHFA received two comments.
One comment letter, from an
individual, asserted that this collection
of information is not necessary for the
proper performance of FHFA functions
because ‘‘there is currently too much
oversight which cost excessive amounts
of money’’ and that those costs are
‘‘passed down to the consumers through
the AMCs to cover costs to maintain
regulatory compliance.’’ Because these
comments relate to regulatory burden
generally and not to the collection of
information under the joint AMC
regulation, FHFA has not addressed
them in this notice.
The second comment letter, from a
trade association representing AMCs,
addressed a number of issues relating to
the collection of information under the
joint AMC regulation. First, the
commenter stated that the collection of
information is ‘‘necessary’’ and has
‘‘practical utility,’’ but ‘‘only to the
extent that the information collected
serves the proper purpose to promote
appraiser independence while ensuring
a healthy real estate valuation market.’’
FHFA disagrees with the commenter’s
implication that the ‘‘proper purpose’’
of the collection of information under
the joint AMC regulations is limited to
the promotion of appraiser
independence. In fact, as required by
statute, the AMC regulations address all
issues on which the Agencies were
required to promulgate regulations—
including minimum requirements for
registration of AMCs in participating
states,23 registration limitations for
AMCs,24 and the reporting of
information by AMCs to the ASC 25—
and not merely the promotion of
appraiser independence. The collection
of information is necessary for
implementation of those requirements.
To the extent that the commenter
disagrees with the scope and
requirements of the joint AMC
regulations, FHFA notes that those
regulations may not be rescinded or
revised through the PRA renewal
process.
The second comment letter also
questioned the accuracy of FHFA’s
estimates of the burdens of the
collection of information. Asserting that
the Agencies’ estimate that there are 200
AMCs currently operating in the U.S. is
too low, the commenter stated, without
providing any further information or
support, that ‘‘industry estimates’’ as to
the number of AMCs ‘‘are closer to
400.’’ As stated in the 60-day notice,
because the actual number of AMCs is
not currently known and will not be
known until the AMC National Registry
is fully operational in 2020, the
Agencies made a best guess that 200
entities currently qualify as an AMC, as
that term is defined under the joint
21 The CFPB conducted a survey of 9 AMCs in
2013 regarding the provisions in the regulation and
the related PRA burden.
22 See 83 FR 22681 (May 16, 2018).
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23 See
12 U.S.C. 3353(a).
12 U.S.C. 3353(d).
25 See 12 U.S.C. 3353(e).
24 See
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AMC regulations.26 Because the
commenter has provided no support for
its assertion regarding the current
number of AMCs subject to the joint
regulations, FHFA’s estimate as to that
number remains unchanged.
The commenter further asserted that,
contrary to the Agencies’ estimates that
60 percent of existing AMCs (or 120 out
of 200) are federally regulated, it knows
of only one federally regulated AMC in
existence. As with respect to the total
number of AMCs, the Agencies made a
best guess estimate as to the relative
number of federally regulated and nonfederally-regulated AMCs in the absence
of any available empirical data on this
issue pending completion of the AMC
National Registry. As explained above,
that estimate has no bearing on the
Agencies’ estimates as to the total
amount of burden imposed by the
collections of information under the
joint AMC regulations, but relates only
to the appropriate distribution among
the rulemaking Agencies of
responsibility (under the PRA) for a
portion of the total estimated burden.
Given this, and the lack of support
provided by the commenter for its
estimate as to the actual number of
federally regulated AMCs, FHFA’s
estimate as to the relative number
remains unchanged from that reflected
in the 60-day notice.
Other issues addressed in the second
comment letter, including
recommendations that the ASC issue
additional guidance to states and AMCs
concerning the AMC minimum
requirements, find opportunities to
develop reporting efficiencies in the
state licensing system, and be more
aggressive in supporting modernization
of the outdated National Appraiser
Registry do not relate to the collection
of information under the joint AMC
regulation. The Agencies, however, will
forward these suggestions to the ASC for
consideration.
D. Comments Request
In accordance with the requirements
of 5 CFR 1320.10(a), FHFA is publishing
26 The joint regulations define ‘‘appraisal
management company’’ generally to mean an entity
that: (1) Provides appraisal management services
(for example, maintaining a panel of certified and
licensed appraisers to perform appraisals, managing
the process of having an appraisal performed,
collecting fees, and paying appraisers) to creditors
or to secondary mortgage market participants; (2)
provides such services in connection with valuing
a consumer’s primary dwelling as security for a
consumer credit transaction or incorporating such
transactions into securitizations; and (3) oversees an
appraiser panel of more than 15 State-certified or
State-licensed appraisers in a State or 25 or more
State-certified or State-licensed appraisers in two or
more States within a 12-month period. See 12 CFR
1222.21(c)(1).
E:\FR\FM\31JYN1.SGM
31JYN1
Federal Register / Vol. 83, No. 147 / Tuesday, July 31, 2018 / Notices
this second notice to request comments
regarding the following: (1) Whether the
collection of information is necessary
for the proper performance of FHFA
functions, including whether the
information has practical utility; (2) the
accuracy of FHFA’s estimates of the
burdens of the collection of information;
(3) ways to enhance the quality, utility,
and clarity of the information collected;
and (4) ways to minimize the burden of
the collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Dated: July 26, 2018.
Kevin Winkler,
Chief Information Officer, Federal Housing
Finance Agency.
[FR Doc. 2018–16350 Filed 7–30–18; 8:45 am]
BILLING CODE 8070–01–P
FEDERAL MARITIME COMMISSION
daltland on DSKBBV9HB2PROD with NOTICES
Notice of Agreement Filed
The Commission hereby gives notice
of the filing of the following agreement
under the Shipping Act of 1984.
Interested parties may submit comments
on the agreement to the Secretary by
email at Secretary@fmc.gov, or by mail,
Federal Maritime Commission,
Washington, DC 20573, within twelve
days of the date this notice appears in
the Federal Register. Copies of the
agreement 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.: 201263.
Agreement Name: Maersk/MSC/Zim
Cooperative Working Agreement.
Parties: Maersk Line A/S;
Mediterranean Shipping Company S.A.;
and Zim Integrated Shipping Services
Ltd.
Filing Party: Wayne Rohde, Cozen
O’Connor.
Synopsis: The Agreement authorizes
the parties to share space and cooperate
on the provision of service strings in the
trade between Asia and the U.S. East
Coast.
Proposed Effective Date: 9/8/2018.
Location: https://www2.fmc.gov/
FMC.Agreements.Web/Public/
AgreementHistory/14256.
Dated: July 25, 2018.
Rachel Dickon,
Secretary.
[FR Doc. 2018–16280 Filed 7–30–18; 8:45 am]
BILLING CODE P
VerDate Sep<11>2014
18:30 Jul 30, 2018
Jkt 244001
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
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 August 23,
2018.
A. Federal Reserve Bank of
Minneapolis (Mark A. Rauzi, Vice
President), 90 Hennepin Avenue,
Minneapolis, Minnesota 55480–0291:
1. Mackinac Financial Corporation,
Manistique, Michigan; to acquire 100
percent of the voting shares of Lincoln
Community Bank, Merrill, Wisconsin.
Board of Governors of the Federal Reserve
System, July 26, 2018.
Yao-Chin Chao,
Assistant Secretary of the Board.
36935
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 August 24,
2018.
A. Federal Reserve Bank of
Minneapolis (Mark A. Rauzi, Vice
President), 90 Hennepin Avenue,
Minneapolis, Minnesota 55480–0291:
1. Citizens Community Bancorp, Inc.,
Eau Claire, Wisconsin; to acquire 100
percent of United Bank, Osseo,
Wisconsin.
B. 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. Old National Bancorp, Evansville,
Indiana; to merge with Klein Financial,
Inc., Chaska, Minnesota, and thereby
indirectly acquire KleinBank, also of
Chaska, Minnesota.
[FR Doc. 2018–16337 Filed 7–30–18; 8:45 am]
Board of Governors of the Federal Reserve
System, July 25, 2018.
Yao-Chin Chao,
Assistant Secretary of the Board.
BILLING CODE P
[FR Doc. 2018–16377 Filed 7–30–18; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
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
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities; Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
AGENCY:
E:\FR\FM\31JYN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 147 (Tuesday, July 31, 2018)]
[Notices]
[Pages 36931-36935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16350]
=======================================================================
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FEDERAL HOUSING FINANCE AGENCY
[No. 2018-N-08]
Proposed Collection; Comment Request
AGENCY: Federal Housing Finance Agency.
ACTION: 30-Day notice of submission of information collection for
approval from Office of Management and Budget.
-----------------------------------------------------------------------
SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act of 1995 (PRA), the Federal Housing Finance Agency (FHFA or the
Agency) is seeking public comments concerning an information collection
known as ``Minimum Requirements for Appraisal Management Companies,''
which has been assigned control number 2590-0013 by the Office of
Management and Budget (OMB). FHFA intends to submit the information
collection to OMB for review and approval of a three-year extension of
the control number, which is due to expire on July 31, 2018.
DATES: Interested persons may submit comments on or before August 30,
2018.
ADDRESSES: Submit comments to the Office of Information and Regulatory
Affairs of the Office of Management and Budget, Attention: Desk Officer
for the Federal Housing Finance Agency, Washington, DC 20503, Fax:
(202) 395-3047, Email: [email protected]. Please also submit
comments to FHFA, identified by ``Proposed Collection; Comment Request:
`Minimum Requirements for Appraisal Management Companies, (No. 2018-N-
08)''' by any of the following methods:
Agency Website: www.fhfa.gov/open-for-comment-or-input.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. If you submit your
comment to the Federal eRulemaking Portal, please also send it by email
to FHFA at [email protected] to ensure timely receipt by the Agency.
Mail/Hand Delivery: Federal Housing Finance Agency, Eighth
Floor, 400 Seventh Street SW, Washington, DC 20219, ATTENTION: Proposed
Collection; Comment Request: ``Minimum Requirements for Appraisal
Management Companies, (No. 2018-N-08).''
We will post all public comments we receive without change,
including any personal information you provide, such as your name and
address, email address, and telephone number, on the FHFA website at
https://www.fhfa.gov. In addition, copies of all comments received will
be available for examination by the public through the electronic
comment docket for this PRA Notice also located on the FHFA website.
FOR FURTHER INFORMATION CONTACT: Robert Witt. Senior Policy Analyst,
Office of Housing and Regulatory Policy, by email at
[email protected] or by telephone at (202) 649-3128; or Eric
Raudenbush, Associate General Counsel, [email protected], (202)
649-3084 (these are not toll-free numbers); Federal Housing Finance
Agency, 400 Seventh Street SW, Washington, DC 20219. The
Telecommunications Device for the Hearing Impaired is (800) 877-8339.
SUPPLEMENTARY INFORMATION: FHFA is seeking comments on its upcoming
request to OMB to renew the PRA clearance for the following collection
of information:
Title: Minimum requirements for appraisal management companies.
[[Page 36932]]
OMB Number: 2590-0013.
Affected Public: Participating States and State-registered
Appraisal Management Companies.
A. Need for and Use of the Information Collection
In 2015, the Federal Deposit Insurance Corporation (FDIC), the
Office of the Comptroller of the Currency (OCC), the Board of Governors
of the Federal Reserve System (Board), the Bureau of Consumer Financial
Protection (Bureau), and FHFA (collectively, the Agencies) jointly
issued regulations \1\ to implement provisions of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (Dodd-Frank Act) relating to
the eligibility of appraisal management companies (AMCs) to provide
appraisal management services for real estate related financial
transactions that are engaged in, contracted for, or regulated by a
``federal financial institutions regulatory agency'' or the Resolution
Trust Corporation (``Federally related transactions'').\2\ Generally,
these statutory provisions provide that an AMC either be registered
with a state's appraiser certifying and licensing agency or be subject
to oversight by a federal financial institutions regulatory agency in
order to participate in a Federally related transaction.\3\
---------------------------------------------------------------------------
\1\ See 80 FR 32658 (June 9, 2015). By agreement, the
responsibility for clearance under the PRA of information
collections contained in the joint regulations is shared only by the
FDIC, OCC, Board, and FHFA.
\2\ See 12 U.S.C. 3350(4), (5). ``Federal financial institutions
regulatory agency'' includes the FDIC, OCC, Board, and National
Credit Union Administration. See 12 U.S.C. 3350(6).
\3\ Section 1117 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (FIRREA), 12 U.S.C. 3346, permits states
to establish an appraiser certifying and licensing agency ``to
assure the availability of State certified and licensed appraisers
for the performance in a State of appraisals in federally related
transactions and to assure effective supervision of the activities
of certified and licensed appraisers.'' The Dodd-Frank Act amended
section 1117 to provide that the duties of a state appraiser
certifying and licensing agency may also include the registration
and supervision of AMCs. Although states are not required by federal
law to register and supervise AMCs, or even to establish an
appraiser certifying and licensing agency, an AMC that is not
registered with such a state agency (except for those regulated by a
federal financial institutions regulatory agency) may not
participate in a federally-related transaction in that state. See 12
U.S.C. 3353(f)(1).
---------------------------------------------------------------------------
As required by the Dodd-Frank Act provisions, the Agencies' joint
AMC regulations establish minimum requirements for the registration and
supervision of AMCs to be applied by states that have elected to
establish an appraiser certifying and licensing agency with authority
to register and supervise AMCs (participating states).\4\ The joint
regulations also implement the statutory requirement that states report
to the Appraisal Subcommittee (ASC) of the Federal Financial
Institutions Examination Council (FFIEC) the information required by
the ASC to administer a national registry of AMCs (AMC National
Registry or Registry).\5\ When fully established, the AMC National
Registry will include AMCs that are either: (1) Subsidiaries owned and
controlled by an insured depository institution (as defined in 12
U.S.C. 1813) and regulated by either the FDIC, OCC, or Board (federally
regulated AMCs) ;\6\ or (2) registered with, and subject to supervision
of, a state appraiser certifying and licensing agency. FHFA's AMC
regulation, located at Subpart B of 12 CFR part 1222, is substantively
identical to the AMC regulations of the FDIC, OCC, and Board and
contains the recordkeeping and reporting requirements described
below.\7\
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\4\ See 12 CFR 1222.23.
\5\ See 12 U.S.C. 3353(e).
\6\ See 12 CFR 1222.21(k) (defining ``Federally regulated
AMC'').
\7\ See 12 CFR 1222.20 through 1222.26. For clarity, the
regulatory citations in this notice are to FHFA's version of the
joint regulations only.
---------------------------------------------------------------------------
1. State Reporting Requirements (IC #1)
The regulation requires that each state electing to register AMCs
for purposes of permitting AMCs to provide appraisal management
services relating to covered transactions in the state submit to the
ASC the information regarding such AMCs required to be submitted by ASC
regulations or guidance concerning AMCs that operate in the state.\8\
---------------------------------------------------------------------------
\8\ See 12 CFR 1222.26.
---------------------------------------------------------------------------
2. State Recordkeeping Requirements (IC #2)
States seeking to register AMCs must have an AMC registration and
supervision program. The regulation requires each participating state
to establish and maintain within its appraiser certifying and licensing
agency a registration and supervision program with the legal authority
and mechanisms to: (i) Review and approve or deny an application for
initial registration; (ii) periodically review and renew, or deny
renewal of, an AMC's registration; (iii) examine an AMC's books and
records and require the submission of reports, information, and
documents; (iv) verify an AMC's panel members' certifications or
licenses; (v) investigate and assess potential violations of laws,
regulations, or orders; (vi) discipline, suspend, terminate, or deny
registration renewals of AMCs that violate laws, regulations, or
orders; and (vii) report violations of laws, regulations, or orders,
and disciplinary and enforcement actions to the ASC.\9\
---------------------------------------------------------------------------
\9\ See 12 CFR 1222.23(a).
---------------------------------------------------------------------------
The regulation requires each participating state to impose
requirements on AMCs that are not federally regulated (non-federally
regulated AMCs) to: (i) Register with and be subject to supervision by
a state appraiser certifying and licensing agency in each state in
which the AMC operates; (ii) use only state-certified or state-licensed
appraisers for federally regulated transactions in conformity with any
federally regulated transaction regulations; (iii) establish and comply
with processes and controls reasonably designed to ensure that the AMC,
in engaging an appraiser, selects an appraiser who is independent of
the transaction and who has the requisite education, expertise, and
experience necessary to competently complete the appraisal assignment
for the particular market and property type; (iv) direct the appraiser
to perform the assignment in accordance with the Uniform Standards of
Professional Appraisal Practice; and (v) establish and comply with
processes and controls reasonably designed to ensure that the AMC
conducts its appraisal management services in accordance with sections
129E(a) through (i) of the Truth-in-Lending Act.\10\
---------------------------------------------------------------------------
\10\ See 12 CFR 1222.23(b). Sections 129E(a) through (i) of the
Truth-in-Lending Act are located at 15 U.S.C. 1639e(a) through (i).
---------------------------------------------------------------------------
3. AMC Reporting Requirements (IC #3)
The regulation provides that an AMC may not be registered by a
state or included on the AMC National Registry if the company is owned,
directly or indirectly, by any person who has had an appraiser license
or certificate refused, denied, cancelled, surrendered in lieu of
revocation, or revoked in any state for a substantive cause.\11\ The
regulation also provides that an AMC may not be registered by a state
if any person that owns 10 percent or more of the AMC fails to submit
to a background investigation carried out by the state appraiser
certifying and licensing agency.\12\ Thus, each AMC registering with a
state must provide information to the state on compliance with those
ownership restrictions. Further, the regulation requires that a
federally regulated AMC report to the state or states in which it
operates the information required to be submitted by the state pursuant
to the ASC's policies, including policies regarding the determination
of the AMC National
[[Page 36933]]
Registry fee, and information regarding compliance with the ownership
restrictions described above.\13\
---------------------------------------------------------------------------
\11\ See 12 CFR 1222.24(a) and 1222.25(b).
\12\ See 12 CFR 1222.24(b).
\13\ See 12 CFR 1222.25(c).
---------------------------------------------------------------------------
4. AMC Recordkeeping Requirements (IC #4)
An entity meets the definition of an AMC that is subject to the
requirements of the AMC regulation if, among other things, it oversees
an appraiser panel of more than 15 state-certified or state-licensed
appraisers in a state, or 25 or more state-certified or state-licensed
appraisers in two or more states, within a given 12-month period.\14\
For purposes of determining whether a company qualifies as an AMC under
that definition, the regulation provides that an appraiser in an AMC's
network or panel is deemed to remain on the network or panel until: (i)
The AMC sends a written notice to the appraiser removing the appraiser
with an explanation; or (ii) receives a written notice from the
appraiser asking to be removed or a notice of the death or incapacity
of the appraiser.\15\ The AMC would retain these notices in its files.
---------------------------------------------------------------------------
\14\ See 12 CFR 1222.21(c)(iii).
\15\ See 12 CFR 1222.22(b).
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B. Burden Estimate
FHFA's burden estimates for the information collections described
above appear below. The estimates below remain the same as those set
forth in the 60-day notice, despite one commenter's assertion that some
of the assumptions underlying those burden estimates are incorrect.
Those assertions and FHFA's responses are addressed below in section C
of the notice.
There is no change in the existing methodology or substance of this
information collection. For the information collections described
above, the general methodology is to compute the industry wide burden
hours for participating states and AMCs and then assign a share of the
burden hours to each of the Agencies for each information collection.
As noted above, each of the Agencies' AMC regulations contains
reporting and recordkeeping requirements applying to participating
states and to both federally regulated and non-federally regulated
AMCs. The Agencies have estimated that approximately 200 entities meet
the regulatory definition of an ``appraisal management company'' \16\
and that, of those 200 AMCs, approximately 120 are federally regulated
and approximately 80 are non-federally regulated.\17\ Unlike the
insured depository institutions regulated by the OCC, FDIC, and Board,
none of FHFA's regulated entities owns or controls an AMC or, by law,
could ever own or control an AMC. Accordingly, the Agencies have agreed
that responsibility for the burdens arising from reporting and
recordkeeping requirements imposed upon federally regulated AMCs are to
be split evenly among the OCC, FDIC, and Board (i.e., the equivalent of
40 federally regulated AMCs for each agency) and that FHFA will not
include those burdens in its totals. The four Agencies have agreed to
split the total burdens imposed upon participating states and upon non-
federally regulated AMCs evenly between them (i.e., by taking
responsibility for 25 percent of the burden per agency or, in the case
of non-federally regulated AMCs, the equivalent of 20 such AMCs for
each agency).
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\16\ In FHFA's regulations, this definition is set forth at 12
CFR 1222.21(c).
\17\ FHFA anticipates that definitive information on the total
number of AMCs and on the relative number of federally regulated and
non-federally regulated AMCs will become available after the AMC
National Registry becomes fully operational in 2020.
---------------------------------------------------------------------------
Thus, for ICs #1 and #2, which relate to reporting and
recordkeeping requirements imposed upon participating states, each
agency is responsible for 25 percent of the total estimated burden. For
ICs #3 and #4, which relate to reporting and recordkeeping requirements
imposed upon both federally regulated AMCs and non-federally regulated
AMCs, the OCC, FDIC, and Board are each responsible for the burden
imposed upon a total of 60 AMCs (40 federally regulated plus 20 non-
federally regulated), or 30 percent of the total burden, while FHFA is
responsible only for the burden imposed upon 20 non-federally regulated
AMCs, or 10 percent of the total burden.
The Agencies estimate the total annualized hour burden placed on
respondents by the information collection in the joint AMC regulations
to be 1,445 hours. FHFA estimates its share of the hour burden to be
183 hours. The calculations on which those estimates are based are
described below.
1. State Reporting Requirements (IC #1)
The total estimated burden hours for states reporting to the ASC
are calculated by multiplying the number of states by the hour burden
per state. The burden hours are then divided equally among the FDIC,
OCC, Board, and FHFA, with each agency responsible for 25 percent of
the total. For purposes of this calculation, the number of states is
set at 55 which, in conformity with the regulatory definition of
``state,'' includes all 50 U.S. states as well as the Commonwealth of
the Northern Mariana Islands, the District of Columbia, Guam, Puerto
Rico, and the U.S. Virgin Islands.\18\ The burden estimate of 1 hour
per report is unchanged from the estimate provided for the currently-
approved ICR. Therefore, the estimated total state reporting burden
attributable to all of the Agencies is: 55 states x 1 hour/state = 55
hours. The estimated burden hours attributable to FHFA are 55 hours x
25 percent = 14 hours (rounded to the nearest whole number).
---------------------------------------------------------------------------
\18\ See 12 CFR 1222.21(o).
---------------------------------------------------------------------------
2. State Recordkeeping Requirements (IC #2)
The estimated burden hours on participating states for developing
and maintaining an AMC licensing program is calculated by multiplying
the number of states without a registration and licensing program by
the hour burden to develop the system. The total burden hours are then
equally divided among the FDIC, OCC, Board, and FHFA. According to the
Appraisal Institute, as of July 26, 2017, there were 5 states that had
not developed a system to register and oversee AMCs.\19\ The burden
estimate of 40 hours per state without a registration system is
unchanged from the estimate provided for the currently-approved ICR.
Therefore, the total estimated burden attributable to all of the
Agencies is: 5 states x 40 hours/state = 200 hours. The estimated
burden hours attributable to FHFA are 200 hours x 25 percent = 50
hours.
---------------------------------------------------------------------------
\19\ Appraisal Institute ``Enacted State AMC Laws,'' https://www.appraisalinstitute.org/advocacy/enacted-state-amc-laws1/.
---------------------------------------------------------------------------
3. AMC Reporting Requirements (IC #3)
The burden for AMC reporting requirements for information needed to
determine the AMC National Registry fee and information regarding
compliance with the AMC ownership restrictions is calculated by
multiplying the number of AMCs by the frequency of response and then by
the burden per response. As described above, 30 percent of the burden
hours are then assigned to each of the FDIC, OCC, and Board, while 10
percent are assigned to FHFA.
The frequency of response is estimated as the number of states that
do not have an AMC registration program in which the average AMC
operates.\20\ As discussed above, 5 states do not have AMC registration
or
[[Page 36934]]
oversight programs. According to the Consumer Financial Protection
Bureau (CFPB), the average AMC operates in 19.56 states.\21\ Therefore,
the average AMC operates in approximately 2 states that do not have AMC
registration systems: (5 states/55 states) x 19.56 states = 1.778
states, rounded to 2 states. The burden estimate of one hour per
response is unchanged from the estimate provided for the currently-
approved ICR. Therefore, the total estimated hour burden is: 200 AMCs x
2 states x 1 hour = 400 hours. The estimated burden hours attributable
to FHFA are 400 hours x 10 percent = 40 hours.
---------------------------------------------------------------------------
\20\ The number of states includes all U.S. states, territories,
and districts to include: The Commonwealth of the Northern Mariana
Islands; the District of Columbia; Guam; Puerto Rico; and the U.S.
Virgin Islands.
\21\ The CFPB conducted a survey of 9 AMCs in 2013 regarding the
provisions in the regulation and the related PRA burden.
---------------------------------------------------------------------------
4. AMC Recordkeeping Requirements (IC #4)
The burden for recordkeeping by AMCs of written notices of
appraiser removal from a network or panel is estimated to be equal to
the number of appraisers who leave the profession per year multiplied
by the estimated percentage of appraisers who work for AMCs, then
multiplied by burden hours per notice. As described above, 30 percent
of the burden hours are then assigned to each of the FDIC, OCC, and
Board, while 10 percent are assigned to FHFA.
The number of appraisers who leave an AMC annually, either by
resigning, being laid off, or having their licenses revoked or
surrendered, is estimated to be 9,881. The burden estimate of 0.08
hours per notice is unchanged from the estimate provided for the
currently-approved ICR. Therefore, the estimated total hour burden is:
9,881 notices x 0.08 hours = 790 hours (rounded to the nearest whole
number). The estimated burden hours attributable to FHFA are 790 hours
x 10 percent = 79 hours.
C. Response to Comments Received
In accordance with the requirements of 5 CFR 1320.8(d), FHFA
published an initial notice and request for comments regarding the
renewal of the PRA clearance for this information collection in the
Federal Register on May 16, 2018 (``60-day notice'').\22\ The 60-day
comment period closed on July 16, 2018. FHFA received two comments.
---------------------------------------------------------------------------
\22\ See 83 FR 22681 (May 16, 2018).
---------------------------------------------------------------------------
One comment letter, from an individual, asserted that this
collection of information is not necessary for the proper performance
of FHFA functions because ``there is currently too much oversight which
cost excessive amounts of money'' and that those costs are ``passed
down to the consumers through the AMCs to cover costs to maintain
regulatory compliance.'' Because these comments relate to regulatory
burden generally and not to the collection of information under the
joint AMC regulation, FHFA has not addressed them in this notice.
The second comment letter, from a trade association representing
AMCs, addressed a number of issues relating to the collection of
information under the joint AMC regulation. First, the commenter stated
that the collection of information is ``necessary'' and has ``practical
utility,'' but ``only to the extent that the information collected
serves the proper purpose to promote appraiser independence while
ensuring a healthy real estate valuation market.'' FHFA disagrees with
the commenter's implication that the ``proper purpose'' of the
collection of information under the joint AMC regulations is limited to
the promotion of appraiser independence. In fact, as required by
statute, the AMC regulations address all issues on which the Agencies
were required to promulgate regulations--including minimum requirements
for registration of AMCs in participating states,\23\ registration
limitations for AMCs,\24\ and the reporting of information by AMCs to
the ASC \25\--and not merely the promotion of appraiser independence.
The collection of information is necessary for implementation of those
requirements. To the extent that the commenter disagrees with the scope
and requirements of the joint AMC regulations, FHFA notes that those
regulations may not be rescinded or revised through the PRA renewal
process.
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\23\ See 12 U.S.C. 3353(a).
\24\ See 12 U.S.C. 3353(d).
\25\ See 12 U.S.C. 3353(e).
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The second comment letter also questioned the accuracy of FHFA's
estimates of the burdens of the collection of information. Asserting
that the Agencies' estimate that there are 200 AMCs currently operating
in the U.S. is too low, the commenter stated, without providing any
further information or support, that ``industry estimates'' as to the
number of AMCs ``are closer to 400.'' As stated in the 60-day notice,
because the actual number of AMCs is not currently known and will not
be known until the AMC National Registry is fully operational in 2020,
the Agencies made a best guess that 200 entities currently qualify as
an AMC, as that term is defined under the joint AMC regulations.\26\
Because the commenter has provided no support for its assertion
regarding the current number of AMCs subject to the joint regulations,
FHFA's estimate as to that number remains unchanged.
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\26\ The joint regulations define ``appraisal management
company'' generally to mean an entity that: (1) Provides appraisal
management services (for example, maintaining a panel of certified
and licensed appraisers to perform appraisals, managing the process
of having an appraisal performed, collecting fees, and paying
appraisers) to creditors or to secondary mortgage market
participants; (2) provides such services in connection with valuing
a consumer's primary dwelling as security for a consumer credit
transaction or incorporating such transactions into securitizations;
and (3) oversees an appraiser panel of more than 15 State-certified
or State-licensed appraisers in a State or 25 or more State-
certified or State-licensed appraisers in two or more States within
a 12-month period. See 12 CFR 1222.21(c)(1).
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The commenter further asserted that, contrary to the Agencies'
estimates that 60 percent of existing AMCs (or 120 out of 200) are
federally regulated, it knows of only one federally regulated AMC in
existence. As with respect to the total number of AMCs, the Agencies
made a best guess estimate as to the relative number of federally
regulated and non-federally-regulated AMCs in the absence of any
available empirical data on this issue pending completion of the AMC
National Registry. As explained above, that estimate has no bearing on
the Agencies' estimates as to the total amount of burden imposed by the
collections of information under the joint AMC regulations, but relates
only to the appropriate distribution among the rulemaking Agencies of
responsibility (under the PRA) for a portion of the total estimated
burden. Given this, and the lack of support provided by the commenter
for its estimate as to the actual number of federally regulated AMCs,
FHFA's estimate as to the relative number remains unchanged from that
reflected in the 60-day notice.
Other issues addressed in the second comment letter, including
recommendations that the ASC issue additional guidance to states and
AMCs concerning the AMC minimum requirements, find opportunities to
develop reporting efficiencies in the state licensing system, and be
more aggressive in supporting modernization of the outdated National
Appraiser Registry do not relate to the collection of information under
the joint AMC regulation. The Agencies, however, will forward these
suggestions to the ASC for consideration.
D. Comments Request
In accordance with the requirements of 5 CFR 1320.10(a), FHFA is
publishing
[[Page 36935]]
this second notice to request comments regarding the following: (1)
Whether the collection of information is necessary for the proper
performance of FHFA functions, including whether the information has
practical utility; (2) the accuracy of FHFA's estimates of the burdens
of the collection of information; (3) ways to enhance the quality,
utility, and clarity of the information collected; and (4) ways to
minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques or other
forms of information technology.
Dated: July 26, 2018.
Kevin Winkler,
Chief Information Officer, Federal Housing Finance Agency.
[FR Doc. 2018-16350 Filed 7-30-18; 8:45 am]
BILLING CODE 8070-01-P
