Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Appraisal Management Companies, 38204-38206 [2018-16639]

Agencies

• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 83, Number 150 (Friday, August 3, 2018)]
[Notices]
[Pages 38204-38206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16639]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Appraisal Management Companies

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

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to comment on a continuing 
information collection as required by the Paperwork Reduction Act of 
1995 (PRA). In accordance with the requirements of the PRA, the OCC may 
not conduct or sponsor, and the respondent is not required to respond 
to, an information collection unless it displays a currently valid 
Office of Management and Budget (OMB) control number.
    The OCC is soliciting comment concerning the renewal of its 
information collection titled, ``Appraisal Management Companies.'' The 
OCC also is giving notice that it has sent the collection to OMB for 
review.

DATES: You should submit written comments by September 4, 2018.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, Attention: 1557-0324, 400 
7th Street SW, suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street, SW, suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0324'' in your comment. In general, the OCC will publish them on 
www.reginfo.gov without change, including any business or personal 
information that you provide, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0324, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503 or by email to 
[email protected].
    You may review comments and other related materials that pertain to 
this information collection \1\ following the close of the 30-Day 
comment period for

[[Page 38205]]

this notice by any of the following methods:
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    \1\ On March 23, 2018, the OCC published a 60-Day notice for 
this information collection. The comments can be viewed on 
www.reginfo.gov. Please follow the instructions listed in this 
notice to view them.
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     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu, 
select ``Department of Treasury'' and then click ``submit''. This 
information collection can be located by searching by OMB control 
number ``1557-0324'' or ``Appraisal Management Companies.'' Upon 
finding the appropriate information collection, click on the related 
``ICR Reference Number.'' On the next screen, select ``View Supporting 
Statement and Other Documents'' and then click on the link to any 
comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th Street, SW, Washington, DC. For security 
reasons, the OCC requires that visitors make an appointment to inspect 
comments. You may do so by calling (202) 649-6700 or, for persons who 
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival, 
visitors will be required to present valid government-issued photo 
identification and submit to security screening in order to inspect 
comments.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street, 
SW, suite 3E-218, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal 
agencies must obtain approval from the OMB for each collection of 
information that they conduct or sponsor. ``Collection of information'' 
is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency 
requests or requirements that members of the public submit reports, 
keep records, or provide information to a third party. The OCC requests 
that OMB extend its approval of the following collection:
    Title: Appraisal Management Companies.
    OMB Control No.: 1557-0324.
    Affected Public: Business or other for-profit.
    Type of Review: Regular review.
    Abstract: The OCC, Board of Governors of the Federal Reserve System 
(FRB), Federal Deposit Insurance Corporation (FDIC), National Credit 
Union Administration (NCUA), Consumer Financial Protection Bureau 
(Bureau), and Federal Housing Finance Agency (FHFA) (Agencies) have 
rules implementing the minimum requirements in section 1473 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act to be applied 
by States in the registration and supervision of appraisal management 
companies (AMCs). The Agencies have also implemented the requirement in 
section 1473 of the Dodd-Frank Act for States to report to the 
Appraisal Subcommittee of the Federal Financial Institutions 
Examination Council (FFIEC) the information required by the Appraisal 
Subcommittee (ASC) to administer the new national registry of appraisal 
management companies (AMC National Registry or Registry).

State Recordkeeping Requirements

    States seeking to register AMCs must have an AMC registration and 
supervision program. Section 34.213(a) 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 law, 
regulation, or order violations; (vi) discipline, suspend, terminate, 
or deny registration renewals of, AMCs that violate laws, regulations, 
or orders; and (vii) report violations of appraisal-related laws, 
regulations, or orders, and disciplinary and enforcement actions to the 
ASC.
    Section 34.213(b) requires each participating State to impose 
requirements on AMCs not owned and controlled by an insured depository 
institution and regulated by a Federal financial institutions 
regulatory agency 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 Uniform Standards of 
Professional Appraisal Practices (USPAP); and (v) establish and comply 
with processes and controls reasonably designed to ensure that the AMC 
conducts its appraisal management services in accordance with section 
129E(a)-(i) of the Truth in Lending Act.

State Reporting Burden

    Section 34.216 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 must submit to 
the ASC the information required to be submitted under subpart H to 
part 34 and any additional information required by the ASC concerning 
AMCs.

AMC Reporting Requirements

    Section 34.215(c) requires that a Federally regulated AMC must 
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: (i) Information regarding the determination of the AMC 
National Registry fee; and (ii) the information listed in Sec.  34.214.
    Section 34.214 provides that an AMC may not be registered by a 
State or included on the AMC National Registry if such 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. Each person that owns more than 
10 percent of an AMC shall submit to a background investigation carried 
out by the State appraiser certifying and licensing agency. While Sec.  
34.214 does not authorize States to conduct background investigations 
of Federally regulated AMCs, it would allow a State to do so if the 
Federally regulated AMC chooses to register voluntarily with the State.

AMC Recordkeeping Requirements

    Section 34.212(b) 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. The AMC would retain these notices in its files.

[[Page 38206]]

    Estimated Number of Respondents: 200 AMCs; 55 States and 
Territories.
    Total Estimated Annual Burden: 421.
    The OCC issued a notice for 60 days of comment on March 23, 2018, 
83 FR 12843. One comment was received from a trade association 
representing appraisal management companies (AMCs).

Topic A: Whether the Collection of Information is Necessary for the 
Proper Performance of the Functions of the OCC, Including Whether the 
Information has Practical Utility

    In response to topic A, the commenter stated that the collection of 
information is ``necessary and does have 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.'' While not stated expressly, the commenter implies 
that the ``proper purpose'' of the collection is limited to collections 
relating appraiser independence.
    In response to this comment, the OCC notes that the purpose of the 
AMC rule and the collection is to implement all required elements of 
the statute, not only provisions that extend to appraiser independence. 
See 12 U.S.C. 3353(a) (setting minimum requirements for registration 
regulation in participating states); id. section 3353(d) (setting 
registration limitations for AMCs); and id. section 3353(e) (requiring 
reporting of information by AMCs to the ASC). The OCC and the other 
agencies that were party to the AMC rule were required to adopt 
regulations to implement the statutory requirements and the collection 
is a necessary component for implementation of these requirements.
    To the extent that the commenter disagrees with the scope and 
requirements of Title XI and the AMC rule, the OCC also notes that 
regulations may not be rescinded by the OCC through the PRA renewal 
process.

Topic B: The Accuracy of the OCC's Estimate of the Information 
Collection Burden

    In response to topic B, the commenter states that the burden 
estimates are too low. The commenter believes that the number of 
respondents is approximately twice what was estimated. The commenter 
also states that the actual number of AMCs will not be known until 2020 
when the AMC National Registry is fully operational.
    The commenter indicates that its members believe that the estimate 
of the annual burden to comply is also too low. The commenter 
recommends that the estimate be increased to twice the current 
estimate. The commenter notes that each state differs in complexity of 
their demands for the collection of information and not all are on the 
same renewal schedule. Some renew annually and some biennially, which 
have varying burdens for preparation and validation.
    The burden estimates for this collection have historically been 
prepared on an industry-wide basis and then allotted to each agency. 
The FDIC prepared the industry-wide estimates for this renewal. We 
invite commenters to review the analysis, which is included in our 
supporting statement, and comment during the 30-day comment period.

Topic C: Ways to Enhance the Quality, Utility, and Clarity of the 
Information to be Collected

    In response to topic C, the commenter suggested that the ASC should 
issue additional guidance to states and AMCs concerning the AMC minimum 
requirements. The goal of such guidance would be to ``provide 
consistency in the implementation of the regulations and information 
required.'' The commenter also expressed concern that wide variation of 
AMC requirements from state to state may have material unintended 
consequences on lending activity in a particular jurisdiction.
    In response to these comments, OCC notes that the commenter's 
suggestions do not relate to the collection. In addition, while Title 
XI and the AMC rule set minimum standards for the registration and 
supervision of AMCs by states, Title XI and the AMC rule expressly 
provide that a state may adopt requirements in addition to those 
contained in the AMC regulation. 12 U.S.C. 3353(b); 12 CFR 34.210(d). 
The OCC will, however, refer these suggestions to the ASC for 
consideration.

Topic D: Ways to Minimize the Burden of the Collection on Respondents, 
Including Through the use of Automated Collection Techniques or Other 
Forms of Information Technology

    In response to topic D, the commenter recommends that the ASC 
``find opportunities to develop reporting efficiencies in the licensing 
system, which could include partnering with the Nationwide Multistate 
Licensing System (NMLS) or investing in a new process. Furthermore, the 
ASC should be more aggressive in supporting modernization of the 
outdated National Appraiser Registry (which AMCs must use to comply 
with the minimum requirements).''
    In response to these comments, OCC notes that the commenter's 
suggestions do not relate to the collection. The OCC will, however, 
refer these suggestions to the ASC for consideration.

Topic E: Estimates of Capital or Start-up Costs and Costs of Operation, 
Maintenance, and Purchase of Services to Provide Information

    The commenter stated that the ``estimated cost to implement the AMC 
minimum requirements and AMC Registry requirements in 50 states and the 
District of Columbia ranges from $250,000-$500,000 per AMC,'' not 
including ``the additional $100,000-$200,000 paid by AMCs to the ASC to 
be on the National AMC Registry.''
    In response to the comment, the OCC notes that the commenter has 
not segregated the costs relating to the collection from costs of 
complying with the substantive requirements of Title XI and the AMC 
rule.
    Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimate of the information 
collection burden;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: July 30, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel.
[FR Doc. 2018-16639 Filed 8-2-18; 8:45 am]
 BILLING CODE 4810-33-P