Appraisal Subcommittee; Final Order Granting in Part Temporary Waiver Relief, 38630-38633 [2019-16908]
Download as PDF
<![CDATA[
38630
Federal Register / Vol. 84, No. 152 / Wednesday, August 7, 2019 / Notices
Comments are requested concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
the accuracy of the Commission’s
burden estimate; ways to enhance the
quality, utility, and clarity of the
information collected; ways to minimize
the burden of the collection of
information on the respondents,
including the use of automated
collection techniques or other forms of
information technology; and ways to
further reduce the information
collection burden on small business
concerns with fewer than 25 employees.
The FCC may not conduct or sponsor
a collection of information unless it
displays a currently valid Office of
Management and Budget (OMB) control
number. No person shall be subject to
any penalty for failing to comply with
a collection of information subject to the
PRA that does not display a valid OMB
control number.
DATES: Written PRA comments should
be submitted on or before October 7,
2019. If you anticipate that you will be
submitting comments, but find it
difficult to do so within the period of
time allowed by this notice, you should
advise the contact listed below as soon
as possible.
ADDRESSES: Direct all PRA comments to
Nicole Ongele, FCC, via email PRA@
fcc.gov and to Nicole.ongele@fcc.gov.
FOR FURTHER INFORMATION CONTACT: For
additional information about the
information collection, contact Nicole
Ongele, (202) 418–2991.
SUPPLEMENTARY INFORMATION:
OMB Control Number: 3060–XXXX.
Title: Toll Free Number Auctions.
Form Number: FCC–5633.
Type of Review: New information
collection.
Respondents: Individuals or
Households, Business or other for-profit,
Not-for-profit Institutions, Farms and/or
Federal, State, Local and/or Tribal
government agencies.
Number of Respondents and
Responses: 1,220 respondents; 1,220
responses.
Estimated Time per Response: 0.084
hours (5 minutes)–0.166 hours (10
minutes).
Frequency of Response: On occasion
and one-time reporting requirements.
Obligation to Respond: Required to
obtain or retain benefits. Statutory
authority for this information collection
is contained in 47 U.S.C. 251(e)(1).
Total Annual Burden: 105 hours.
Total Annual Cost: No Cost.
Privacy Act Impact Assessment: The
Commission is preparing to conduct a
Privacy Act Impact Assessment (PIA).
Nature and Extent of Confidentiality:
The Commission is not requesting that
respondents for this information
collection (LOA and Secondary Market)
submit confidential information to the
FCC. For individuals, the Privacy Act, 5
U.S.C. 552a, is the statutory authority
for confidentiality and it applies to this
information collection. 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: On September 27,
2018, the Commission released a Report
and Order in WC Docket No. 17–192,
FCC 18–137 (Report and Order). In the
Report and Order, the Commission
established competitive bidding as a toll
free number assignment method, and
called for an auction for select numbers
in the toll free code 833 as an
experiment to test this method. To
verify the relationship between the
responsible organization (RespOrg) and
the potential subscriber, a Letter of
Authorization (LOA) is required during
the bidding process. Additionally, a key
component to the effectiveness of the
auction is the adoption of a post-auction
secondary market (Secondary Market)
for the sale of the rights to use 833 code
toll free numbers. Collecting data on
Secondary Market transactions will
allow the Commission to evaluate the
entire experimental auction process and
determine the potential use of
competitive bidding in future toll free
number assignments.
Federal Communications Commission.
Marlene Dortch,
Secretary, Office of the Secretary.
[FR Doc. 2019–16896 Filed 8–6–19; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice of Termination of Receiverships
The Federal Deposit Insurance
Corporation (FDIC or Receiver), as
Receiver for each of the following
insured depository institutions, was
charged with the duty of winding up the
affairs of the former institutions and
liquidating all related assets. The
Receiver has fulfilled its obligations and
made all dividend distributions
required by law.
NOTICE OF TERMINATION OF RECEIVERSHIPS
Fund
jspears on DSK3GMQ082PROD with NOTICES
10175
10322
10365
10529
...................................
...................................
...................................
...................................
Receivership name
City
Charter Bank ....................................................................
First Southern Bank ..........................................................
Atlantic Southern Bank .....................................................
The F & M State Bank of Argonia ....................................
Santa Fe .............................
Batesville .............................
Macon .................................
Argonia ................................
The Receiver has further irrevocably
authorized and appointed FDICCorporate as its attorney-in-fact to
execute and file any and all documents
that may be required to be executed by
the Receiver which FDIC-Corporate, in
its sole discretion, deems necessary,
including but not limited to releases,
discharges, satisfactions, endorsements,
assignments, and deeds. Effective on the
termination dates listed above, the
Receiverships have been terminated, the
Receiver has been discharged, and the
VerDate Sep<11>2014
16:49 Aug 06, 2019
Jkt 247001
State
NM
AR
GA
KS
Termination
date
8/1/2019
8/1/2019
8/1/2019
8/1/2019
Receiverships have ceased to exist as
legal entities.
FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
Dated at Washington, DC, on August 1,
2019.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[Docket No. AS19–06]
[FR Doc. 2019–16804 Filed 8–6–19; 8:45 am]
BILLING CODE 6714–01–P
PO 00000
Frm 00044
Fmt 4703
Sfmt 4703
Appraisal Subcommittee; Final Order
Granting in Part Temporary Waiver
Relief
Appraisal Subcommittee of the
Federal Financial Institutions
Examination Council.
ACTION: Final order granting in part,
with specified terms and conditions,
AGENCY:
E:\FR\FM\07AUN1.SGM
07AUN1
Federal Register / Vol. 84, No. 152 / Wednesday, August 7, 2019 / Notices
and with the Federal Financial
Institutions Examination Council
(FFIEC) concurrence, temporary waiver
relief.
The Appraisal Subcommittee
(ASC) of the FFIEC is issuing a final
order pursuant to section 1119(b) of
Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989, as amended (Title XI) and the
rules promulgated thereunder. This
order grants in part, with specified
terms and conditions, and with the
FFIEC concurrence, a request for
temporary waiver relief received from
Governor Doug Burgum, State of North
Dakota, the North Dakota Department of
Financial Institutions, and the North
Dakota Bankers Association, notice of
which was published in the Federal
Register on May 30, 2019.
DATES: Applicable August 7, 2019.
FOR FURTHER INFORMATION CONTACT:
James R. Park, Executive Director, at
(202) 595–7575, or Alice M. Ritter,
General Counsel, at (202) 595–7577,
ASC, 1325 G Street NW, Suite 500,
Washington, DC 20005.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
jspears on DSK3GMQ082PROD with NOTICES
A. Relevant Statutory Provisions and
Regulations
The ASC was established by Title XI.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 concurrence 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
1 The ASC Board consists 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.
VerDate Sep<11>2014
16:49 Aug 06, 2019
Jkt 247001
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
The ASC has promulgated regulations
that set forth 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
with specified terms or conditions,
including provisions for waiver
termination. The ASC’s order shall
respond to comments received, provide
reasons for its finding, and be published
promptly in the Federal Register. Any
ASC approval order shall be effective
only upon FFIEC concurrence.
B. Procedural Status
On August 1, 2018, a letter requesting
a temporary waiver was submitted to
the ASC by Governor Doug Burgum,
State of North Dakota, the North Dakota
Department of Financial Institutions,
and the North Dakota Bankers
Association (collectively, the
Requester). On September 7, 2018, ASC
staff replied to the Requester by letter,
in which ASC staff described the
information required to file a completed
waiver request pursuant to 12 CFR
1102.2 and 1102.3. The Requester
submitted additional information in a
letter dated April 10, 2019, in response
to the ASC’s September 7, 2018 letter.
On April 15, 2019, the ASC convened a
Special Meeting and determined to
publish a notice for comment on the
request for temporary waiver in the
Federal Register. The request seeks a
waiver of appraiser credentialing
requirements for appraisals for FRTs
under $500,000 for 1-to-4 family
residential real estate transactions and
under $1,000,000 for agricultural and
commercial real estate transactions
throughout the State of North Dakota for
a period of not less than five years.
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.
6 12 CFR part 1102, subpart A.
PO 00000
Frm 00045
Fmt 4703
Sfmt 4703
38631
On May 30, 2019, 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 The comment
period closed on July 1, 2019. 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 July 9, 2019, and
voted to approve the issuance of this
final order granting in part, upon
specified terms and conditions, and
subject to FFIEC concurrence,
temporary waiver relief. The FFIEC met
via teleconference on July 12, 2019, and
a quorum of the Council being present,
took the following action: Pursuant to
§ 1119(b) of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989, as amended, the Council
approved the temporary waiver granted
by the ASC on July 9, 2019.
II. Request for a Temporary Waiver
The Requester sought a temporary
waiver of the appraiser credentialing
requirements for appraisals for FRTs
under $500,000 for 1-to-4 family
residential real estate transactions and
under $1,000,000 for agricultural and
commercial real estate transactions
throughout the State of North Dakota for
a period of not less than five years. The
Requester stated that a scarcity of
appraisers exists, particularly in the
rural areas of the western part of the
State, indicating that of the 53 counties
in North Dakota, 29 counties do not
have a single appraiser residing in the
county, and that while the most severe
impact of the appraiser scarcity has
been experienced in western and the
most rural districts in North Dakota, the
population centers are also impacted.
The Requester conducted a survey to
assess what lenders deem are
appropriate turnaround times for
residential and commercial appraisals.
The Requester summarized the results
of the survey as follows:
• 81 percent reported that up to 30
days is appropriate for residential
appraisals.
• 80 percent reported that up to 60
days is appropriate for commercial
appraisals.
• 65 percent reported a delay in
receiving a residential real estate
appraisal, and 71 percent reported a
delay in receiving a commercial
appraisal.
• 57 percent reported unreasonable
delays in receiving residential real
7 84
E:\FR\FM\07AUN1.SGM
FR 25052 (May 30, 2019).
07AUN1
38632
Federal Register / Vol. 84, No. 152 / Wednesday, August 7, 2019 / Notices
estate appraisals in the prior 12 months.
72 percent reported unreasonable delays
in receiving commercial appraisals in
the prior 12 months.
The Requester acknowledged that
federal banking agencies and NCUA
have proposed increases to the appraisal
thresholds,8 stating that ‘‘[if adopted, it]
will have a positive effect that is similar
to that which can be achieved by the
granting of this waiver since both
approaches will provide much needed
relief.’’
jspears on DSK3GMQ082PROD with NOTICES
III. Summary of Comments
The ASC received 109 9 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
mortgage lending associations,
professional associations, appraisal
firms, appraisers, and several banks and
financial institution associations in the
State of North Dakota.
While a few commenters supported
the granting of a temporary waiver, the
majority of comments received were
from appraisers opposing the granting of
a temporary waiver. Associations
representing insured depository
institutions in North Dakota (banks and
credit unions) meanwhile argued that
the waiver would provide some measure
of relief in local communities without
increasing any safety and soundness
risks. Several other commenters
disputed that there was a shortage of
appraisers in North Dakota and that
there are significant delays. Specifically,
commenters offered data showing that
the number of appraisers in North
Dakota is consistent with other similarly
populated States. Commenters also
stated that the turn time of appraisals in
North Dakota average within the
Requester’s range of appropriate turn
times. Commenters also noted decreased
economic activity in North Dakota and
that turn times have improved in recent
years. Several commenters also
expressed varying concerns about the
long term impact a waiver would have
on appraisers and the appraisal
profession, consumers and the safety
and soundness of the North Dakota
banking system. Several commenters
reported making attempts to be added to
8 See 83 FR 63110 (December 7, 2018) (OCC,
Board, and FDIC proposing to increase the
residential real estate appraisal threshold level from
$250,000 to $400,000); 83 FR 49857 (October 3,
2018) (NCUA proposing to increase the appraisal
threshold for non-residential real estate transactions
from $250,000 to $1,000,000).
9 Regulations.gov shows 109 comments received
in total with 105 viewable comments due to
duplicates and 2 withdrawals.
VerDate Sep<11>2014
16:49 Aug 06, 2019
Jkt 247001
lender lists of approved appraisers
without success. Several commenters
asked if a waiver were granted, who
would be qualified to perform a
Uniform Standards of Professional
Appraisal Practice (USPAP)-compliant
appraisal without the training and
education a credentialed appraiser is
required to have, and with whom
consumers and other parties would file
a complaint. Commenters also
expressed concern over the loss of
protection to the public if a waiver is
granted. The ASC acknowledges these
concerns and emphasizes that this is a
temporary waiver while more long-term
solutions are researched and
implemented by the Requester and
interested stakeholders in the State of
North Dakota. In the interim, lenders are
still required to obtain USPAPcompliant appraisals for FRTs and
should review appraisals for compliance
with USPAP. Several commenters
challenged the ASC’s authority to
exercise temporary waiver discretion at
this point in time, commenting that the
statutory provision was meant to be
applied when States were first setting
up appraiser regulatory programs and
were perhaps not going to be able to
meet the statutory deadline to establish
a program. The ASC notes that the
statute includes no expiration of the
waiver provisions in the statute.
The North Dakota Real Estate
Appraiser Qualifications and Ethics
Board (Appraiser Board) provided a
letter in which they recommend
denying the request. The Appraiser
Board reported a 44 percent increase in
appraisers since 2009 and submitted
data in support of their position. The
letter from the Appraiser Board also
addressed recent regulatory changes that
have been made or are being considered
that address many of the concerns in the
request.
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 10 specified in the
request. In considering this request, the
ASC examined both evidence of a
scarcity of appraisers in North Dakota,
and evidence of scarcity leading to
significant delay. The ASC noted that
North Dakota’s appraisal turnaround
time is one of the slowest in the
country. In this case, while data
provided to the ASC by the Requester
and the Appraiser Board and included
in public comments, was not consistent
and sometimes conflicted, the majority
of the ASC members concluded that a
scarcity of appraisers does exist in
North Dakota and that the scarcity is
leading to a significant delay in
appraisal services for FRTs. Therefore,
by majority vote, the ASC determined to
grant in part, subject to specified terms
and conditions, and subject to FFIEC
concurrence, temporary waiver relief as
follows:
• A temporary waiver of appraiser
credentialing requirements for
appraisals of FRTs under $500,000 for 1to-4 family residential real estate
transactions throughout the State of
North Dakota for a period of one year,
unless the federal banking agencies
issue a rule increasing appraisal
exemption threshold limits for
residential real estate transactions,11 in
which case the residential waiver will
terminate 60 days after the effective date
of that threshold increase.
• A temporary waiver of appraiser
credentialing requirements for
appraisals of FRTs under $1,000,000 for
commercial real estate transactions 12
throughout the State of North Dakota for
a period of one year.
• During the one-year period, the
Requester is expected to develop a plan
through continued dialogue with North
Dakota stakeholders, including the
Appraiser Board, to identify potential
solutions to address appraiser scarcity
and appraisal delay.
• At least 30 days prior to the
expiration of the one-year period, the
Requester should provide (1) a status
report to the ASC on the plan that was
developed in collaboration with
stakeholders and any implementation
progress made on that plan toward
identifying meaningful solutions to
resolve appraiser scarcity and delay
issues faced in North Dakota; and (2)
supporting data showing that appraiser
scarcity leading to significant delays
continues to exist, which may include
information to identify specific
localities affected by appraiser scarcity.
The ASC will consider the information
as presented by the Requester, and by
vote in open session, may extend the
temporary waiver for an additional oneyear period.
• The ASC at any time may terminate
a waiver order on a finding that
significant delay in the receipt of
appraisals for FRTs no longer exists, or
11 83
10 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 00046
Fmt 4703
Sfmt 4703
FR 63110 (December 7, 2018).
request was for commercial and
agricultural, but agricultural loans are already
included in either commercial or business loans.
12 The
E:\FR\FM\07AUN1.SGM
07AUN1
38633
Federal Register / Vol. 84, No. 152 / Wednesday, August 7, 2019 / Notices
that the terms and conditions of the
order are not being satisfied.
V. Order
For the reasons stated above, and
pursuant to section 1119(b) of Title XI
and 12 CFR part 1102, subpart A, the
ASC grants temporary waiver relief to
the Requester, subject to the following
specified terms and conditions:
• A temporary waiver of appraiser
credentialing requirements for
appraisals of FRTs under $500,000 for 1to-4 family residential real estate
transactions throughout the State of
North Dakota for a period of one year,
unless the federal banking agencies
issue a rule increasing appraisal
exemption threshold limits for
residential real estate transactions,13 in
which case the residential waiver will
terminate 60 days after the effective date
of that threshold increase.
• A temporary waiver of appraiser
credentialing requirements for
appraisals of FRTs under $1,000,000 for
commercial real estate transactions
throughout the State of North Dakota for
a period of one year.
• During the one-year period, the
Requester is expected to develop a plan
through continued dialogue with North
Dakota stakeholders, including the
Appraiser Board, to identify potential
solutions to address appraiser scarcity
and appraisal delay.
• At least 30 days prior to the
expiration of the one-year period, the
Requester should provide (1) a status
report to the ASC on the plan that was
developed in collaboration with
stakeholders and any implementation
progress made on that plan toward
identifying meaningful solutions to
resolve appraiser scarcity and delay
issues faced in North Dakota; and (2)
supporting data showing that appraiser
scarcity leading to significant delays
continues to exist, which may include
information to identify specific
localities affected by appraiser scarcity.
The ASC will consider the information
as presented by the Requester, and by
vote in open session, may extend the
temporary waiver for an additional oneyear period.
• The ASC at any time may terminate
a waiver order on a finding that
significant delay in the receipt of
appraisals for FRTs no longer exists, or
that the terms and conditions of the
order are not being satisfied.
*
*
*
*
*
By the Appraisal Subcommittee.
Dated: August 2, 2019.
Arthur Lindo,
Chairman.
[FR Doc. 2019–16908 Filed 8–6–19; 8:45 am]
BILLING CODE 6700–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket Nos. FDA–2018–N–4131, FDA–
2018–N–0821, FDA–2013–N–0032, FDA–
2014–N–0801, FDA–2007–D–0429, FDA–
2013–N–0013, and FDA–2008–D–0530]
ACTION:
Notice.
The Food and Drug
Administration (FDA) is publishing a
list of information collections that have
been approved by the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act of 1995.
SUMMARY:
Ila
S. Mizrachi, Office of Operations, Food
and Drug Administration, Three White
Flint North, 10 a.m.–12 p.m., 11601
Landsdown St., North Bethesda, MD
20852, 301–796–7726, PRAStaff@
fda.hhs.gov.
FOR FURTHER INFORMATION CONTACT:
The
following is a list of FDA information
collections recently approved by OMB
under section 3507 of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3507).
The OMB control number and
expiration date of OMB approval for
each information collection are shown
in table 1. Copies of the supporting
statements for the information
collections are available on the internet
at https://www.reginfo.gov/public/do/
PRAMain. An Agency may not conduct
or sponsor, and a person is not required
to respond to, a collection of
information unless it displays a
currently valid OMB control number.
SUPPLEMENTARY INFORMATION:
Agency Information Collection
Activities; Announcement of Office of
Management and Budget Approvals
AGENCY:
Food and Drug Administration,
HHS.
TABLE 1—LIST OF INFORMATION COLLECTIONS APPROVED BY OMB
OMB control
number
Title of collection
jspears on DSK3GMQ082PROD with NOTICES
FDA Adverse Event and Products Experience Reports; Electronic Submissions ..................................................
Investigation of Consumer Perceptions of Expressed Modified Risk Claims .........................................................
Food Labeling: Notification Procedures for Statements on Dietary Supplements ..................................................
Export Notification and Recordkeeping Requirements ...........................................................................................
Labeling of Nonprescription Human Drug Products Marketed Without an Approved Application as Required by
the Dietary Supplement and Nonprescription Drug Consumer Protection Act ...................................................
Sanitary Transportation of Human and Animal Food ..............................................................................................
Guidance for Industry on Tropical Disease Priority Review Vouchers ...................................................................
13 83
FR 63110 (December 7, 2018).
VerDate Sep<11>2014
16:49 Aug 06, 2019
Jkt 247001
PO 00000
Frm 00047
Fmt 4703
Sfmt 9990
E:\FR\FM\07AUN1.SGM
07AUN1
Date approval
expires
0910–0645
0910–0873
0910–0331
0910–0482
6/30/2022
6/30/2022
7/31/2022
7/31/2022
0910–0641
0910–0773
0910–0822
7/31/2022
7/31/2022
7/31/2022
]]>Agencies
[Federal Register Volume 84, Number 152 (Wednesday, August 7, 2019)]
[Notices]
[Pages 38630-38633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16908]
=======================================================================
-----------------------------------------------------------------------
FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
[Docket No. AS19-06]
Appraisal Subcommittee; Final Order Granting in Part Temporary
Waiver Relief
AGENCY: Appraisal Subcommittee of the Federal Financial Institutions
Examination Council.
ACTION: Final order granting in part, with specified terms and
conditions,
[[Page 38631]]
and with the Federal Financial Institutions Examination Council (FFIEC)
concurrence, temporary waiver relief.
-----------------------------------------------------------------------
SUMMARY: The Appraisal Subcommittee (ASC) of the FFIEC is issuing a
final order pursuant to section 1119(b) of Title XI of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as amended
(Title XI) and the rules promulgated thereunder. This order grants in
part, with specified terms and conditions, and with the FFIEC
concurrence, a request for temporary waiver relief received from
Governor Doug Burgum, State of North Dakota, the North Dakota
Department of Financial Institutions, and the North Dakota Bankers
Association, notice of which was published in the Federal Register on
May 30, 2019.
DATES: Applicable August 7, 2019.
FOR FURTHER INFORMATION CONTACT: James R. Park, Executive Director, at
(202) 595-7575, or Alice M. Ritter, General Counsel, at (202) 595-7577,
ASC, 1325 G Street NW, Suite 500, Washington, DC 20005.
SUPPLEMENTARY INFORMATION:
I. Background
A. Relevant Statutory Provisions and Regulations
The ASC was established by Title XI.\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 concurrence 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 consists 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.
---------------------------------------------------------------------------
The ASC has promulgated regulations that set forth 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 with specified terms or conditions, including provisions for
waiver termination. The ASC's order shall respond to comments received,
provide reasons for its finding, and be published promptly in the
Federal Register. Any ASC approval order shall be effective only upon
FFIEC concurrence.
---------------------------------------------------------------------------
\6\ 12 CFR part 1102, subpart A.
---------------------------------------------------------------------------
B. Procedural Status
On August 1, 2018, a letter requesting a temporary waiver was
submitted to the ASC by Governor Doug Burgum, State of North Dakota,
the North Dakota Department of Financial Institutions, and the North
Dakota Bankers Association (collectively, the Requester). On September
7, 2018, ASC staff replied to the Requester by letter, in which ASC
staff described the information required to file a completed waiver
request pursuant to 12 CFR 1102.2 and 1102.3. The Requester submitted
additional information in a letter dated April 10, 2019, in response to
the ASC's September 7, 2018 letter. On April 15, 2019, the ASC convened
a Special Meeting and determined to publish a notice for comment on the
request for temporary waiver in the Federal Register. The request seeks
a waiver of appraiser credentialing requirements for appraisals for
FRTs under $500,000 for 1-to-4 family residential real estate
transactions and under $1,000,000 for agricultural and commercial real
estate transactions throughout the State of North Dakota for a period
of not less than five years.
On May 30, 2019, 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\
The comment period closed on July 1, 2019. A discussion of the public
comments received by the ASC concerning the request for temporary
waiver relief follows in Section III below.
---------------------------------------------------------------------------
\7\ 84 FR 25052 (May 30, 2019).
---------------------------------------------------------------------------
The ASC called a Special Meeting to consider this matter on July 9,
2019, and voted to approve the issuance of this final order granting in
part, upon specified terms and conditions, and subject to FFIEC
concurrence, temporary waiver relief. The FFIEC met via teleconference
on July 12, 2019, and a quorum of the Council being present, took the
following action: Pursuant to Sec. 1119(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as amended,
the Council approved the temporary waiver granted by the ASC on July 9,
2019.
II. Request for a Temporary Waiver
The Requester sought a temporary waiver of the appraiser
credentialing requirements for appraisals for FRTs under $500,000 for
1-to-4 family residential real estate transactions and under $1,000,000
for agricultural and commercial real estate transactions throughout the
State of North Dakota for a period of not less than five years. The
Requester stated that a scarcity of appraisers exists, particularly in
the rural areas of the western part of the State, indicating that of
the 53 counties in North Dakota, 29 counties do not have a single
appraiser residing in the county, and that while the most severe impact
of the appraiser scarcity has been experienced in western and the most
rural districts in North Dakota, the population centers are also
impacted.
The Requester conducted a survey to assess what lenders deem are
appropriate turnaround times for residential and commercial appraisals.
The Requester summarized the results of the survey as follows:
81 percent reported that up to 30 days is appropriate for
residential appraisals.
80 percent reported that up to 60 days is appropriate for
commercial appraisals.
65 percent reported a delay in receiving a residential
real estate appraisal, and 71 percent reported a delay in receiving a
commercial appraisal.
57 percent reported unreasonable delays in receiving
residential real
[[Page 38632]]
estate appraisals in the prior 12 months. 72 percent reported
unreasonable delays in receiving commercial appraisals in the prior 12
months.
The Requester acknowledged that federal banking agencies and NCUA
have proposed increases to the appraisal thresholds,\8\ stating that
``[if adopted, it] will have a positive effect that is similar to that
which can be achieved by the granting of this waiver since both
approaches will provide much needed relief.''
---------------------------------------------------------------------------
\8\ See 83 FR 63110 (December 7, 2018) (OCC, Board, and FDIC
proposing to increase the residential real estate appraisal
threshold level from $250,000 to $400,000); 83 FR 49857 (October 3,
2018) (NCUA proposing to increase the appraisal threshold for non-
residential real estate transactions from $250,000 to $1,000,000).
---------------------------------------------------------------------------
III. Summary of Comments
The ASC received 109 \9\ 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 mortgage lending
associations, professional associations, appraisal firms, appraisers,
and several banks and financial institution associations in the State
of North Dakota.
---------------------------------------------------------------------------
\9\ Regulations.gov shows 109 comments received in total with
105 viewable comments due to duplicates and 2 withdrawals.
---------------------------------------------------------------------------
While a few commenters supported the granting of a temporary
waiver, the majority of comments received were from appraisers opposing
the granting of a temporary waiver. Associations representing insured
depository institutions in North Dakota (banks and credit unions)
meanwhile argued that the waiver would provide some measure of relief
in local communities without increasing any safety and soundness risks.
Several other commenters disputed that there was a shortage of
appraisers in North Dakota and that there are significant delays.
Specifically, commenters offered data showing that the number of
appraisers in North Dakota is consistent with other similarly populated
States. Commenters also stated that the turn time of appraisals in
North Dakota average within the Requester's range of appropriate turn
times. Commenters also noted decreased economic activity in North
Dakota and that turn times have improved in recent years. Several
commenters also expressed varying concerns about the long term impact a
waiver would have on appraisers and the appraisal profession, consumers
and the safety and soundness of the North Dakota banking system.
Several commenters reported making attempts to be added to lender lists
of approved appraisers without success. Several commenters asked if a
waiver were granted, who would be qualified to perform a Uniform
Standards of Professional Appraisal Practice (USPAP)-compliant
appraisal without the training and education a credentialed appraiser
is required to have, and with whom consumers and other parties would
file a complaint. Commenters also expressed concern over the loss of
protection to the public if a waiver is granted. The ASC acknowledges
these concerns and emphasizes that this is a temporary waiver while
more long-term solutions are researched and implemented by the
Requester and interested stakeholders in the State of North Dakota. In
the interim, lenders are still required to obtain USPAP-compliant
appraisals for FRTs and should review appraisals for compliance with
USPAP. Several commenters challenged the ASC's authority to exercise
temporary waiver discretion at this point in time, commenting that the
statutory provision was meant to be applied when States were first
setting up appraiser regulatory programs and were perhaps not going to
be able to meet the statutory deadline to establish a program. The ASC
notes that the statute includes no expiration of the waiver provisions
in the statute.
The North Dakota Real Estate Appraiser Qualifications and Ethics
Board (Appraiser Board) provided a letter in which they recommend
denying the request. The Appraiser Board reported a 44 percent increase
in appraisers since 2009 and submitted data in support of their
position. The letter from the Appraiser Board also addressed recent
regulatory changes that have been made or are being considered that
address many of the concerns in the request.
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 \10\ specified in the request. In considering this request, the
ASC examined both evidence of a scarcity of appraisers in North Dakota,
and evidence of scarcity leading to significant delay. The ASC noted
that North Dakota's appraisal turnaround time is one of the slowest in
the country. In this case, while data provided to the ASC by the
Requester and the Appraiser Board and included in public comments, was
not consistent and sometimes conflicted, the majority of the ASC
members concluded that a scarcity of appraisers does exist in North
Dakota and that the scarcity is leading to a significant delay in
appraisal services for FRTs. Therefore, by majority vote, the ASC
determined to grant in part, subject to specified terms and conditions,
and subject to FFIEC concurrence, temporary waiver relief as follows:
---------------------------------------------------------------------------
\10\ The ASC's section 1119(b) temporary waiver authority is
with respect to a State or any geographical political subdivision of
a State.
---------------------------------------------------------------------------
A temporary waiver of appraiser credentialing requirements
for appraisals of FRTs under $500,000 for 1-to-4 family residential
real estate transactions throughout the State of North Dakota for a
period of one year, unless the federal banking agencies issue a rule
increasing appraisal exemption threshold limits for residential real
estate transactions,\11\ in which case the residential waiver will
terminate 60 days after the effective date of that threshold increase.
---------------------------------------------------------------------------
\11\ 83 FR 63110 (December 7, 2018).
---------------------------------------------------------------------------
A temporary waiver of appraiser credentialing requirements
for appraisals of FRTs under $1,000,000 for commercial real estate
transactions \12\ throughout the State of North Dakota for a period of
one year.
---------------------------------------------------------------------------
\12\ The request was for commercial and agricultural, but
agricultural loans are already included in either commercial or
business loans.
---------------------------------------------------------------------------
During the one-year period, the Requester is expected to
develop a plan through continued dialogue with North Dakota
stakeholders, including the Appraiser Board, to identify potential
solutions to address appraiser scarcity and appraisal delay.
At least 30 days prior to the expiration of the one-year
period, the Requester should provide (1) a status report to the ASC on
the plan that was developed in collaboration with stakeholders and any
implementation progress made on that plan toward identifying meaningful
solutions to resolve appraiser scarcity and delay issues faced in North
Dakota; and (2) supporting data showing that appraiser scarcity leading
to significant delays continues to exist, which may include information
to identify specific localities affected by appraiser scarcity. The ASC
will consider the information as presented by the Requester, and by
vote in open session, may extend the temporary waiver for an additional
one-year period.
The ASC at any time may terminate a waiver order on a
finding that significant delay in the receipt of appraisals for FRTs no
longer exists, or
[[Page 38633]]
that the terms and conditions of the order are not being satisfied.
V. Order
For the reasons stated above, and pursuant to section 1119(b) of
Title XI and 12 CFR part 1102, subpart A, the ASC grants temporary
waiver relief to the Requester, subject to the following specified
terms and conditions:
A temporary waiver of appraiser credentialing requirements
for appraisals of FRTs under $500,000 for 1-to-4 family residential
real estate transactions throughout the State of North Dakota for a
period of one year, unless the federal banking agencies issue a rule
increasing appraisal exemption threshold limits for residential real
estate transactions,\13\ in which case the residential waiver will
terminate 60 days after the effective date of that threshold increase.
---------------------------------------------------------------------------
\13\ 83 FR 63110 (December 7, 2018).
---------------------------------------------------------------------------
A temporary waiver of appraiser credentialing requirements
for appraisals of FRTs under $1,000,000 for commercial real estate
transactions throughout the State of North Dakota for a period of one
year.
During the one-year period, the Requester is expected to
develop a plan through continued dialogue with North Dakota
stakeholders, including the Appraiser Board, to identify potential
solutions to address appraiser scarcity and appraisal delay.
At least 30 days prior to the expiration of the one-year
period, the Requester should provide (1) a status report to the ASC on
the plan that was developed in collaboration with stakeholders and any
implementation progress made on that plan toward identifying meaningful
solutions to resolve appraiser scarcity and delay issues faced in North
Dakota; and (2) supporting data showing that appraiser scarcity leading
to significant delays continues to exist, which may include information
to identify specific localities affected by appraiser scarcity. The ASC
will consider the information as presented by the Requester, and by
vote in open session, may extend the temporary waiver for an additional
one-year period.
The ASC at any time may terminate a waiver order on a
finding that significant delay in the receipt of appraisals for FRTs no
longer exists, or that the terms and conditions of the order are not
being satisfied.
* * * * *
By the Appraisal Subcommittee.
Dated: August 2, 2019.
Arthur Lindo,
Chairman.
[FR Doc. 2019-16908 Filed 8-6-19; 8:45 am]
BILLING CODE 6700-01-P
