Real Estate Appraisals, 21312-21318 [2020-08216]
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Federal Register / Vol. 85, No. 75 / Friday, April 17, 2020 / Rules and Regulations
Regulatory Flexibility Act
I certify that this regulation will not
have a significant economic impact on
a substantial number of small entities.
This regulation will affect Federal
employees and members of the
uniformed services who participate in
the Thrift Savings Plan, which is a
Federal defined contribution retirement
savings plan created under the Federal
Employees’ Retirement System Act of
1986 (FERSA), Public Law 99–335, 100
Stat. 514, and which is administered by
the Agency.
Paperwork Reduction Act
I certify that this regulation does not
require additional reporting under the
criteria of the Paperwork Reduction Act.
Unfunded Mandates Reform Act of
1995
Pursuant to the Unfunded Mandates
Reform Act of 1995, 2 U.S.C. 602, 632,
653, 1501–1571, the effects of this
regulation on state, local, and tribal
governments and the private sector have
been assessed. This regulation will not
compel the expenditure in any one year
of $100 million or more by state, local,
and tribal governments, in the aggregate,
or by the private sector. Therefore, a
statement under section 1532 is not
required.
List of Subjects in 5 CFR Part 1650
Alimony, Claims, Government
employees, Pensions, Retirement.
Ravindra Deo,
Executive Director, Federal Retirement Thrift
Investment Board.
For the reasons stated in the
preamble, the FRTIB amends 5 CFR part
1650 as follows:
payment change and waived the right to
this annuity with respect to the
applicable amount, the participant must
submit to the TSP record keeper a
properly completed withdrawal request
form, signed by his or her spouse. If the
TSP granted the participant an
exception to the signature requirement,
the participant should enclose a copy of
the TSP’s approval letter with the
withdrawal form.
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DEPARTMENT OF THE TREASURY
3. Amend § 1650.62 by revising
paragraph (c) to read as follows:
[Docket No. R–1713]
§ 1650.62 Spousal rights applicable to inservice withdrawals.
FEDERAL DEPOSIT INSURANCE
CORPORATION
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(c) Unless the participant was granted
an exception under this subpart to the
signature requirement within 90 days of
the date the withdrawal form is
processed by the TSP, before obtaining
an in-service withdrawal, a participant
who is covered by FERS or who is a
member of the uniformed services must
obtain the consent of his or her spouse
and waiver of the spouse’s right to a
joint and survivor annuity described in
§ 1650.61(c) with respect to the
applicable amount.
To show the spouse’s consent and
waiver, a participant must submit to the
TSP record keeper a properly completed
withdrawal request form, signed by his
or her spouse. Once a form containing
the spouse’s consent and waiver has
been submitted to the TSP record
keeper, the spouse’s consent is
irrevocable for that withdrawal.
[FR Doc. 2020–07734 Filed 4–16–20; 8:45 am]
BILLING CODE P
1. The authority citation for part 1650
continues to read as follows:
■
Authority: 5 U.S.C. 8351, 8432d, 8433,
8434, 8435, 8474(b)5 and 8474(c)(1).
2. Amend § 1650.61 by revising
paragraph (c)(4) to read as follows:
■
§ 1650.61 Spousal rights applicable to
post-employment withdrawals.
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(c) * * *
(4) Unless the TSP granted the
participant an exception under this
subpart to the spousal notification
requirement within 90 days of the date
the withdrawal form is processed by the
TSP, to show that the spouse has
consented to a different total or partial
withdrawal election or installment
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12 CFR Part 34
[Docket No. OCC–2020–0014]
RIN 1557–AE86
FEDERAL RESERVE SYSTEM
12 CFR Part 225
RIN 7100–AF87
*
PART 1650—METHODS OF
WITHDRAWING FUNDS FROM THE
THRIFT SAVINGS PLAN
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Currency
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12 CFR Part 323
RIN 3064–AF48
Real Estate Appraisals
Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and the Federal Deposit
Insurance Corporation (FDIC).
ACTION: Interim final rule with request
for comments.
AGENCY:
The OCC, Board, and FDIC
(collectively, the agencies) are adopting
an interim final rule to amend the
agencies’ regulations requiring
appraisals of real estate for certain
transactions. The interim final rule
defers the requirement to obtain an
appraisal or evaluation for up to 120
days following the closing of a
transaction for certain residential and
commercial real estate transactions,
excluding transactions for acquisition,
development, and construction of real
estate. Regulated institutions should
make best efforts to obtain a credible
valuation of real property collateral
before the loan closing, and otherwise
underwrite loans consistent with the
principles in the agencies’ Standards for
Safety and Soundness and Real Estate
Lending Standards. The agencies are
providing this relief to allow regulated
institutions to expeditiously extend
liquidity to creditworthy households
and businesses in light of recent strains
on the U.S. economy as a result of the
National Emergency declared in
connection with coronavirus disease
2019 (COVID–19).
DATES: The interim final rule is effective
April 17, 2020 through December 31,
2020. Comments on the interim final
rule must be received no later than June
1, 2020.
ADDRESSES: Interested parties are
encouraged to submit written comments
SUMMARY:
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Federal Register / Vol. 85, No. 75 / Friday, April 17, 2020 / Rules and Regulations
jointly to all of the agencies.
Commenters are encouraged to use the
title ‘‘Real Estate Appraisals’’ to
facilitate the organization and
distribution of comments among the
agencies. Comments should be directed
to:
OCC: Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal or email, if possible.
Please use the title ‘‘Real Estate
Appraisals’’ to facilitate the organization
and distribution of the comments. You
may submit comments by any of the
following methods:
• Federal eRulemaking Portal—
Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0014’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. For
help with submitting effective
comments please click on ‘‘View
Commenter’s Checklist.’’ Click on the
‘‘Help’’ tab on the Regulations.gov home
page to get information on using
Regulations.gov, including instructions
for submitting public comments.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov Classic homepage.
Enter ‘‘Docket ID OCC–2020–0014’’ in
the Search Box and click ‘‘Search.’’
Public comments can be submitted via
the ‘‘Comment’’ box below the
displayed document information or by
clicking on the document title and then
clicking the ‘‘Comment’’ box on the topleft side of the screen. For help with
submitting effective comments please
click on ‘‘Commenter’s Checklist.’’ For
assistance with the Regulations.gov Beta
site, please call (877) 378–5457 (toll
free) or (703) 454–9859 Monday–Friday,
9 a.m.–5 p.m. ET or email regulations@
erulemakinghelpdesk.com.
• Email: regs.comments@
occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, Office
of the Comptroller of the Currency, 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 ‘‘Docket
ID OCC–2020–0014’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information provided such as
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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.
You may review comments and other
related materials that pertain to this
rulemaking action by any of the
following methods:
• Viewing Comments Electronically—
Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0014’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen.
Comments and supporting materials can
be viewed and filtered by clicking on
‘‘View all documents and comments in
this docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov Classic homepage.
Enter ‘‘Docket ID OCC–2020–0014’’ in
the Search Box and click ‘‘Search.’’
Click on the ‘‘Comments’’ tab.
Comments can be viewed and filtered
by clicking on the ‘‘Sort By’’ drop-down
on the right side of the screen or the
‘‘Refine Results’’ options on the left side
of the screen. Supporting materials can
be viewed by clicking on the
‘‘Documents’’ tab and filtered by
clicking on the ‘‘Sort By’’ drop-down on
the right side of the screen or the
‘‘Refine Results’’ options on the left side
of the screen.’’ For assistance with the
Regulations.gov Beta site, please call
(877) 378–5457 (toll free) or (703) 454–
9859 Monday–Friday, 9 a.m.–5 p.m. ET
or email regulations@
erulemakinghelpdesk.com.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Board: You may submit comments,
identified by Docket No. R–1713; RIN
7100–AF87, by any of the following
methods:
• Agency website: https://www.federal
reserve.gov. Follow the instructions for
submitting comments at https://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm.
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• Email: regs.comments@
federalreserve.gov. Include docket and
RIN numbers in the subject line of the
message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments will be made
available on the Board’s website at
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons or to remove personally
identifiable information at the
commenter’s request. Accordingly,
comments will not be edited to remove
any identifying or contact information.
For security reasons, the Board requires
that visitors make an appointment to
inspect comments. You may do so by
calling (202) 452–3684.
FDIC: You may submit comments,
identified by RIN 3064–AF48, by any of
the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal/.
Follow the instructions for submitting
comments on the Agency website.
• Email: comments@fdic.gov. Include
the RIN 3064–AF48 in the subject line
of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
Instructions: Comments submitted
must include ‘‘FDIC’’ and ‘‘RIN 3064–
AF48.’’ Comments received will be
posted without change to https://
www.fdic.gov/regulations/laws/federal/,
including any personal information
provided.
FOR FURTHER INFORMATION CONTACT:
OCC: G. Kevin Lawton, Appraiser
(Real Estate Specialist), (202) 649–6670;
Mitchell Plave, Special Counsel, (202)
649–5490; or Joanne Phillips, Counsel,
Chief Counsel’s Office (202) 649–5500;
Office of the Comptroller of the
Currency, 400 7th Street SW,
Washington, DC 20219. For persons
who are deaf or hearing impaired, TTY
users may contact (202) 649–5597.
Board: Anna Lee Hewko, Associate
Director, (202) 530–6260; Teresa A.
Scott, Manager, Policy Development
Section, (202) 973–6114; Carmen Holly,
Lead Financial Institution Policy
Analyst, (202) 973–6122, Division of
Supervision and Regulation; Laurie
Schaffer, Deputy General Counsel, (202)
452–2272; Derald Seid, Senior Counsel,
(202) 452–2246; Trevor Feigleson,
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Senior Attorney, (202) 452–3274; David
Imhoff Legal Assistant/Attorney, (202)
452–2249, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For the hearing
impaired only, Telecommunications
Device for the Deaf (TDD) users may
contact (202) 263–4869.
FDIC: Beverlea S. Gardner, Senior
Examination Specialist, Division of Risk
Management and Supervision, (202)
898–3640, BGardner@FDIC.gov;
Benjamin K. Gibbs, Counsel, Legal
Division, (202) 898–6726; Mark Mellon,
Counsel, Legal Division, (202) 898–
3884; or, Lauren Whitaker, Senior
Attorney, Legal Division, (202) 898–
3872, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429. For the hearing
impaired only, TDD users may contact
(202) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Background
B. Summary of the Interim Final Rule
II. The Interim Final Rule
III. Effective Date
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act Analysis
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Solicitation of Comments on Use of
Plain Language
G. OCC Unfunded Mandates Reform Act of
1995 Determination
I. Introduction
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A. Background
Impact of COVID–19 on appraisals
and evaluations. Due to the impact of
COVID–19, businesses and individuals
have a heightened need for additional
liquidity. Being able to quickly access
equity in real estate could help address
this need. However, government
restrictions on non-essential movement
and health and safety advisories in
response to the National Emergency
declared in connection with COVID–
19,1 including those relating to social
distancing, have led to complications
with respect to performing and
completing real property appraisals and
evaluations needed to comply with
federal appraisal regulations. As a
result, some borrowers may experience
delays in obtaining funds needed to
meet immediate and near-term financial
needs.
1 Proclamation 9994, 85 FR 15337 (March 18,
2020).
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Title XI and the appraisal regulations.
Title XI directs each Federal financial
institutions regulatory agency to publish
appraisal regulations for federally
related transactions within its
jurisdiction.2 The purpose of Title XI is
to protect federal financial and public
policy interests 3 in real estate-related
transactions by requiring that real estate
appraisals used in connection with
federally related transactions (Title XI
appraisals) 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.4
Title XI directs the agencies to
prescribe appropriate standards for Title
XI appraisals under the agencies’
respective jurisdictions.5 At a
minimum, the statute provides that a
Title XI appraisal must be: (1)
Performed in accordance with the
Uniform Standards of Professional
Appraisal Practice (USPAP); (2) a
written appraisal, as defined by the
statute; and (3) subject to appropriate
review for compliance with USPAP.6
While appraisals are ordinarily
completed before a lender and borrower
close a real estate transaction, there is
no specific requirement in USPAP that
appraisals be completed at a specific
time relative to the closing of a
transaction.
All federally related transactions must
have Title XI appraisals. Title XI defines
a federally related transaction as a real
estate-related financial transaction 7 that
the agencies or a financial institution
regulated by the agencies engages in or
contracts for, that requires the services
2 The term ‘‘Federal financial institutions
regulatory agencies’’ means the Board, the FDIC, the
OCC, the National Credit Union Administration,
and, formerly, the Office of Thrift Supervision. 12
U.S.C. 3350(6).
3 These interests include those stemming from the
federal government’s roles as regulator and deposit
insurer of financial institutions that engage in real
estate lending and investment, guarantor or lender
on mortgage loans, and as a direct party in real
estate-related financial transactions. These federal
financial and public policy interests have been
described in predecessor legislation and
accompanying Congressional reports. See Real
Estate Appraisal Reform Act of 1988, H.R. Rep. No.
100–1001, pt. 1, at 19 (1988); 133 Cong. Rec. 33047–
33048 (1987).
4 12 U.S.C. 3331.
5 12 U.S.C. 3339.
6 Id.
7 12 U.S.C. 3350(5). A real estate-related financial
transaction is defined as any transaction that
involves: (i) The sale, lease, purchase, investment
in or exchange of real property, including interests
in property, or financing thereof; (ii) the refinancing
of real property or interests in real property; and
(iii) the use of real property or interests in property
as security for a loan or investment, including
mortgage-backed securities.
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of an appraiser.8 The agencies have
authority to determine those real estaterelated financial transactions that do not
require the services of an appraiser and
thus are not required to have Title XI
appraisals.9 The agencies have exercised
this authority by exempting certain
categories of real estate-related financial
transactions from the agencies’ appraisal
requirements.10
The agencies have used their safety
and soundness authority to require
evaluations for a subset of transactions
for which an appraisal is not required.11
Under the appraisal regulations, for
these transactions, financial institutions
that are subject to the agencies’
appraisal regulations (regulated
institutions) must obtain an appropriate
evaluation of real property collateral
that is consistent with safe and sound
banking practices.12
Authority to defer appraisals and
evaluations. In general, the agencies
require that Title XI appraisals for
federally related transactions occur
prior to closing of a federally related
transaction.13 The Interagency
Guidelines on Appraisals and
Evaluations provide similar information
about evaluations.14 Under the interim
final rule, deferrals of appraisals and
evaluations will allow for expeditious
access to credit. The deferrals, which
will be temporary, are offered in
response to a National Emergency.
Regulated institutions that defer receipt
of an appraisal or evaluation are still
expected to conduct their lending
8 12
U.S.C. 3350(4).
estate-related financial transactions that the
agencies have exempted from the appraisal
requirement are not federally related transactions
under the agencies’ appraisal regulations.
10 See OCC: 12 CFR 34.43(a); Board: 12 CFR
225.63(a); FDIC: 12 CFR 323.3(a). The agencies have
determined that these categories of transactions do
not require appraisals by state certified or state
licensed appraisers in order to protect federal
financial and public policy interests or to satisfy
principles of safe and sound banking.
11 See OCC: 12 CFR 34.43(b); Board: 12 CFR
225.63(b); and FDIC: 12 CFR 323.3(b). Evaluations
are required for exempt residential and commercial
loans below the thresholds; exempt business loans;
exempt subsequent transactions; and transactions
subject to the rural residential exemption.
12 The agencies have provided guidance on
appraisals and evaluations through the Interagency
Guidelines on Appraisals and Evaluations. See 75
FR 77450 (December 10, 2010), available at https://
occ.gov/news-issuances/federal-register/2010/
75fr77450.pdf.
13 See OCC: 12 CFR 34.43(a), 34.44(b)&(e); Board:
12 CFR 225.63(a), 225.64(b)&(e); FDIC: 12 CFR
323.3(a), 323.4(b)&(e) (requiring an appraisal to (1)
contain sufficient information and analysis to
support the institution’s decision to engage in the
transaction, and (2) be based on the definition of
market value in the regulation, which takes into
account a specified closing date for the transaction).
14 See 75 FR 77450 (December 10, 2010), available
at https://occ.gov/news-issuances/federal-register/
2010/75fr77450.pdf.
9 Real
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activity consistent with the
underwriting principles in the agencies’
Standards for Safety and Soundness 15
and Real Estate Lending Standards 16
that focus on the ability of a borrower
to repay a loan and other relevant laws
and regulations. These deferrals are not
an exercise of the agencies’ waiver
authority, because appraisals and
evaluations are being deferred, not
waived. The deferrals are also not a
waiver of USPAP requirements, given
that (1) USPAP does not address the
completion of an appraisal assignment
with the timing of a lending decision;
and (2) the deferred appraisal must be
conducted in compliance with USPAP.
The deferral of evaluations reflects the
same considerations relating to the
impact of COVID–19 as the deferral of
appraisals. The agencies require
evaluations for certain exempt
transactions as a matter of safety and
soundness. Evaluations do not need to
comply with USPAP, but must be
sufficiently robust to support a
valuation conclusion. An evaluation can
be less complex than an appraisal and
usually takes less time to complete than
an appraisal, but it also commonly
involves physical property inspections.
For these reasons, the agencies also are
using their safety and soundness
authority 17 to allow for deferral of
evaluations.
By the end of the deferral period,
regulated institutions must obtain
appraisals or evaluations that are
consistent with safe and sound banking
practices, as required by the agencies’
appraisal regulations.
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B. Summary of the Interim Final Rule
The interim final rule allows a
temporary deferral of the requirements
for appraisals and evaluations under the
agencies’ appraisal regulations. The
deferrals apply to both residential and
commercial real estate-related financial
transactions, excluding transactions for
acquisition, development, and
construction of real estate. The agencies
are excluding transactions for
acquisition, development, and
construction of real estate because these
loans present heightened risks not
15 OCC: 12 CFR part 30, Appendix A; Board: 12
CFR 208, Appendix D–1; and FDIC: 12 CFR part
364, Appendix A.
16 OCC: 12 CFR part 34, subpart D, Appendix A;
Board: 12 CFR 208, Subpart E, Appendix C; and
FDIC: 12 CFR part 365, subpart A, Appendix A.
Financial institutions should have a program for
establishing the market value of real property to
comply with these real estate lending standards,
which require financial institutions to determine
the value used in loan-to-value calculations based
in part on a value set forth in an appraisal or an
evaluation.
17 See 12 U.S.C. 1831p–1.
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associated with financing existing real
estate.
Under the interim final rule, regulated
institutions may close a real estate loan
without a contemporaneous appraisal or
evaluation, subject to a requirement that
institutions obtain the appraisal or
evaluation, as would have been required
under the appraisal regulations without
the deferral, within a grace period of
120 days after closing of the transaction.
While appraisals and evaluations can be
deferred, the agencies expect
institutions to use best efforts and
available information to develop a wellinformed estimate of the collateral value
of the subject property. For purposes of
risk-weighting of residential mortgage
exposures, an institution’s prudent
underwriting estimation of the collateral
value of the subject property will be
considered to meet the agencies’
appraisal and evaluation requirements
during the deferral period.18 In addition,
the agencies continue to expect
regulated institutions to adhere to
internal underwriting standards for
assessing borrowers’ creditworthiness
and repayment capacity, and to develop
procedures for estimating the
collateral’s value for the purposes of
extending or refinancing credit.
Transactions for acquisition,
development, and construction of real
estate are being excluded because
repayment of those transactions is
generally dependent on the completion
or sale of the property being held as
collateral as opposed to repayment
generated by existing collateral or the
borrower. The agencies also expect
institutions to develop an appropriate
risk mitigation strategy if the appraisal
or evaluation ultimately reveals a
market value significantly lower than
the expected market value. An
institution’s risk mitigation strategy
should consider safety and soundness
risk to the institution, balanced with
mitigation of financial harm to COVID–
19-affected borrowers. The temporary
provision permitting regulated
institutions to defer an appraisal or
evaluation for eligible transactions will
expire on December 31, 2020 (a
transaction closed on or before
December 31, 2020 is eligible for a
deferral), unless extended by the
agencies. The agencies believe that the
limited timeframe for the deferral will
in some respects help to manage
potential risk by balancing the need for
immediate relief due to the National
Emergency with safety and soundness
concerns for risk to lenders.
18 See OCC: 12 CFR 3.32(g); Board: 12 CFR
217.32(g); FDIC: 12 CFR 324.32(g).
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II. Revisions to the Title XI Appraisal
Regulations
The interim final rule adds a new,
temporary provision to the appraisal
regulations that provides a 120-day
deferral of appraisal and evaluation
requirements for all transactions
secured by commercial or residential
real estate during the COVID–19
pandemic, excluding transactions for
acquisition, development, and
construction of real estate. The interim
final rule does not revise any of the
existing appraisal exceptions or any
other requirements with respect to the
performance of evaluations.
The interim final rule will allow
regulated institutions to quickly provide
liquidity to owners of commercial and
residential property. The temporary
provision allowing regulated
institutions to defer appraisals or
evaluations for covered transactions will
expire on December 31, 2020, unless
extended by the agencies.
III. Effective Date
The interim final rule is effective
April 17, 2020.
IV. Administrative Law Matters
A. Administrative Procedure Act
The agencies are issuing this interim
final rule without prior notice and the
opportunity for public comment and the
30-day delayed effective date ordinarily
prescribed by the Administrative
Procedure Act (APA).19 Pursuant to
section 553(b)(B) of the APA, general
notice and the opportunity for public
comment are not required with respect
to a rulemaking when an ‘‘agency for
good cause finds (and incorporates the
finding and a brief statement of reasons
therefor in the rules issued) that notice
and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.’’ 20
The agencies believe that the public
interest is best served by implementing
the interim final rule as soon as
possible. As discussed above, recent
events have suddenly and significantly
affected global economic activity,
increasing businesses’ and households’
need to have timely access to liquidity
from real estate equity. In addition, the
spread of COVID–19 has greatly
increased the difficulty of performing
real estate appraisals and evaluations in
a timely manner. This relief will allow
regulated institutions to better focus on
supporting lending to creditworthy
households and businesses in light of
recent strains on the U.S. economy as a
19 5
20 5
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U.S.C. 553.
U.S.C. 553(b)(B).
17APR1
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result of COVID–19, while reaffirming
the safety and soundness principle that
valuation of collateral is an essential
part of the lending decision. For these
reasons, the agencies find that there is
good cause consistent with the public
interest to issue the rule without
advance notice and comment.21
The APA also requires a 30-day
delayed effective date, except for (1)
substantive rules which grant or
recognize an exemption or relieve a
restriction; (2) interpretative rules and
statements of policy; or (3) as otherwise
provided by the agency for good
cause.22 Because the rules relieve a
restriction, the interim final rule is
exempt from the APA’s delayed
effective date requirement.23
Additionally, the agencies find good
cause to publish the interim final rule
with an immediate effective date for the
same reasons set forth above under the
discussion of section 553(b)(B) of the
APA.
While the agencies believe that there
is good cause to issue the rule without
advance notice and comment and with
an immediate effective date, the
agencies are interested in the views of
the public and request comment on all
aspects of the interim final rule.
B. Congressional Review Act
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For purposes of Congressional Review
Act, the Office of Management and
Budget (OMB) makes a determination as
to whether a final rule constitutes a
‘‘major’’ rule.24 If a rule is deemed a
‘‘major rule’’ by the OMB, the
Congressional Review Act generally
provides that the rule may not take
effect until at least 60 days following its
publication.25
The Congressional Review Act defines
a ‘‘major rule’’ as any rule that the
Administrator of the Office of
Information and Regulatory Affairs of
the OMB finds has resulted in or is
likely to result in (A) an annual effect
on the economy of $100,000,000 or
more; (B) a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies or geographic
regions, or (C) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
on the ability of United States-based
enterprises to compete with foreignbased enterprises in domestic and
export markets.26
21 5
U.S.C. 553(b)(B); 553(d)(3)
U.S.C. 553(d).
23 5 U.S.C. 553(d)(1).
24 5 U.S.C. 801 et seq.
25 5 U.S.C. 801(a)(3).
26 5 U.S.C. 804(2).
22 5
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For the same reasons set forth above
with respect to APA requirements, the
agencies are adopting the interim final
rule without the delayed effective date
generally prescribed under the
Congressional Review Act. The delayed
effective date required by the
Congressional Review Act does not
apply to any rule for which an agency
for good cause finds (and incorporates
the finding and a brief statement of
reasons therefor in the rule issued) that
notice and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest.27 In light of
households’ and businesses’ immediate
need to access liquidity from real estate
equity, combined with the difficulty of
obtaining appraisals during the ongoing
COVID–19 outbreak, the agencies
believe that delaying the effective date
of the rule would be contrary to the
public interest.
As required by the Congressional
Review Act, the agencies will submit
the final rule and other appropriate
reports to Congress and the Government
Accountability Office for review.
C. Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of
1995 28 (PRA), the agencies may not
conduct or sponsor, and a respondent is
not required to respond to, an
information collection unless it displays
a currently valid OMB control number.
The agencies have reviewed this final
rule and determined that it would not
introduce any new or revise any
collection of information pursuant to
the PRA. Therefore, no submissions will
be made to OMB for review.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act
(RFA) 29 generally requires that an
agency to consider whether the rule it
proposes will have a significant
economic impact on a substantial
number of small entities.30 The RFA
applies only to rules for which an
agency publishes a general notice of
proposed rulemaking pursuant to 5
U.S.C. 553(b).31 As discussed
previously, consistent with section
553(b)(B) of the APA, the agencies have
determined for good cause that general
notice and opportunity for public
27 5
U.S.C. 808(2).
U.S.C. 3501–3521.
29 5 U.S.C. 601 et seq.
30 5 U.S.C. 604. Under regulations issued by the
Small Business Administration, a small entity
includes a depository institution, bank holding
company, or savings and loan holding company
with total assets of $600 million or less and trust
companies with total assets of $41.5 million or less.
See 13 CFR 121.201.
31 5 U.S.C. 604(a).
28 44
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comment is unnecessary, and therefore
the agencies are not issuing a notice of
proposed rulemaking. Accordingly, the
agencies have concluded that the RFA’s
requirements relating to initial and final
regulatory flexibility analysis do not
apply.
Nevertheless, the agencies seek
comment on whether, and the extent to
which, the interim final rule would
affect a significant number of small
entities.
E. Riegle Community Development and
Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the
Riegle Community Development and
Regulatory Improvement Act
(RCDRIA),32 in determining the effective
date and administrative compliance
requirements for new regulations that
impose additional reporting, disclosure,
or other requirements on insured
depository institutions (IDIs), each
Federal banking agency must consider,
consistent with the principle of safety
and soundness and the public interest,
any administrative burdens that such
regulations would place on depository
institutions, including small depository
institutions, and customers of
depository institutions, as well as the
benefits of such regulations. In addition,
section 302(b) of RCDRIA requires new
regulations and amendments to
regulations that impose additional
reporting, disclosure, or other new
requirements on IDIs generally to take
effect on the first day of a calendar
quarter that begins on or after the date
on which the regulations are published
in final form, with certain exceptions,
including for good cause.33 The interim
final rule would not impose any
additional reporting, disclosure, or other
new requirements on IDIs. Therefore, for
the reasons described above, the
agencies find good cause exists under
section 302 of RCDRIA to publish this
interim final rule with an immediate
effective date. As such, the interim final
rule will be effective on April 17, 2020.
Nevertheless, the agencies seek
comment on RCDRIA.
F. Use of Plain Language
Section 722 of the Gramm-LeachBliley Act 34 requires the Federal
banking agencies to use plain language
in all proposed and final rules
published after January 1, 2000. The
agencies have sought to present the final
rule in a simple and straightforward
manner and invite comments on
whether there are additional steps the
32 12
U.S.C. 4802(a).
U.S.C. 4802.
34 12 U.S.C. 4809.
33 12
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agencies could take to make the rule
easier to understand. For example:
• Have the agencies organized the
material to suit your needs? If not, how
could this material be better organized?
• Are the requirements in the
regulation clearly stated? If not, how
could the regulation be more clearly
stated?
• Does the regulation contain
language or jargon that is not clear? If
so, which language requires
clarification?
• Would a different format (grouping
and order of sections, use of headings,
paragraphing) make the regulation
easier to understand? If so, what
changes to the format would make the
regulation easier to understand?
• What else could we do to make the
regulation easier to understand?
G. OCC Unfunded Mandates Reform Act
of 1995 Determination
As a general matter, the Unfunded
Mandates Reform Act of 1995 (UMRA),
2 U.S.C. 1531 et seq., requires the
preparation of a budgetary impact
statement before promulgating a rule
that includes a Federal mandate that
may result in the expenditure by State,
local, and tribal governments, in the
aggregate, or by the private sector, of
$100 million or more in any one year.
However, the UMRA does not apply to
final rules for which a general notice of
proposed rulemaking was not
published.35 Therefore, because the
OCC has found good cause to dispense
with notice and comment for this
interim final rule, the OCC has not
prepared an economic analysis of the
rule under the UMRA.
List of Subjects
12 CFR Part 34
Appraisal, Appraiser, Banks, Banking,
Consumer protection, Credit, Mortgages,
National banks, Reporting and
recordkeeping requirements, Savings
associations, Truth in lending.
12 CFR Part 225
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Administrative practice and
procedure, Banks, banking, Federal
Reserve System, Capital planning,
Holding companies, Reporting and
recordkeeping requirements, Securities,
Stress testing
Banks, banking, Mortgages, Reporting
and recordkeeping requirements,
Savings associations.
2 U.S.C. 1532(a).
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Office of the Comptroller of the
Currency
12 CFR Chapter I
Authority and Issuance
Jkt 250001
4. Section 225.63 is amended by
adding paragraph (f) to read as follows:
■
§ 225.63 Appraisals required; transactions
requiring a State certified or licensed
appraiser.
*
For the reasons set forth in the joint
preamble, the OCC amends part 34 of
chapter I of title 12 of the Code of
Federal Regulations as follows:
PART 34—REAL ESTATE LENDING
AND APPRAISALS
1. The authority citation for part 34
continues to read as follows:
■
Authority: 12 U.S.C. 1, 25b, 29, 93a, 371,
1462a, 1463, 1464, 1465, 1701j–3, 1828(o),
3331 et seq., 5101 et seq., and 5412(b)(2)(B),
and 15 U.S.C. 1639h.
2. Section 34.43 is amended by adding
paragraph (f) to read as follows:
■
§ 34.43 Appraisals required; transactions
requiring a State certified or licensed
appraiser.
*
*
*
*
*
(f) Deferrals of appraisals and
evaluations for certain residential and
commercial transactions—(1) 120-day
grace period. The completion of
appraisals and evaluations required
under paragraphs (a) and (b) of this
section may be deferred up to 120 days
from the date of closing.
(2) Covered transactions. The
deferrals authorized under paragraph
(f)(1) of this section apply to all
residential and commercial real estatesecured transactions, excluding
transactions for acquisition,
development, and construction of real
estate.
(3) Sunset. The appraisal and
evaluation deferrals authorized by this
paragraph (f) will expire for transactions
closing after December 31, 2020.
*
*
*
*
(f) Deferrals of appraisals and
evaluations for certain residential and
commercial transactions—(1) 120-day
grace period. The completion of
appraisals and evaluations required
under paragraphs (a) and (b) of this
section may be deferred up to 120 days
from the date of closing.
(2) Covered transactions. The
deferrals authorized under paragraph
(f)(1) of this section apply to all
residential and commercial real estatesecured transactions, excluding
transactions for acquisition,
development, and construction of real
estate.
(3) Sunset. The appraisal and
evaluation deferrals authorized by this
paragraph (f) will expire for transactions
closing after December 31, 2020.
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the joint
preamble, the FDIC amends part 323 of
chapter III of title 12 of the Code of
Federal Regulations as follows:
PART 323—APPRAISALS
5. The authority citation for part 323
continues to read as follows:
■
Authority: 12 U.S.C. 1818, 1819(a)
(‘‘Seventh’’ and ‘‘Tenth’’), 1831p–1 and 3331
et seq.
6. Section 323.3 is amended by adding
paragraph (g) to read as follows:
■
FEDERAL RESERVE BOARD
§ 323.3 Appraisals required; transactions
requiring a State certified or licensed
appraiser.
12 CFR Chapter II
*
Authority and Issuance
For the reasons set forth in the joint
preamble, the Board amends part 225 of
chapter II of title 12 of the Code of
Federal Regulations as follows:
PART 225—BANK HOLDING
COMPANIES AND CHANGE IN BANK
CONTROL (REGULATION Y)
3. The authority citation for part 225
continues to read as follows:
■
12 CFR Part 323
35 See
DEPARTMENT OF THE TREASURY
21317
Authority: 12 U.S.C. 1817(j)(13), 1818,
1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b),
1972(l), 3106, 3108, 3310, 3331 et seq.,
31206, 31207, and 31209; 15 U.S.C. 1681s,
1681w, 6801 and 6805.
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*
*
*
*
(g) Deferrals of appraisals and
evaluations for certain residential and
commercial transactions—(1) 120-day
grace period. The completion of
appraisals and evaluations required
under paragraphs (a) and (b) of this
section may be deferred up to 120 days
from the date of closing.
(2) Covered transactions. The
deferrals authorized under paragraph
(g)(1) of this section apply to all
residential and commercial real estatesecured transactions, excluding
transactions for acquisition,
development, and construction of real
estate.
(3) Sunset. The appraisal and
evaluation deferrals authorized by this
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Federal Register / Vol. 85, No. 75 / Friday, April 17, 2020 / Rules and Regulations
paragraph (g) will expire for
transactions closing after December 31,
2020.
Brian P. Brooks,
First Deputy Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System, April 10, 2020.
Ann Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on or about April
10, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020–08216 Filed 4–16–20; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2017–0947; Product
Identifier 2017–SW–059–AD; Amendment
39–19902; AD 2020–08–10]
RIN 2120–AA64
Airworthiness Directives; Robinson
Helicopter Company Helicopters
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
The FAA is adopting a new
airworthiness directive (AD) for
Robinson Helicopter Company
(Robinson) Model R44 and R44 II
helicopters. This AD was prompted by
reports of cracking in certain tail rotor
blades. This AD requires visually
checking each tail rotor blade for a
crack. The FAA is issuing this AD to
address the unsafe condition on these
products.
SUMMARY:
DATES:
This AD is effective May 22,
2020.
For service information
identified in this final rule, contact
Robinson Helicopter Company, 2901
Airport Drive, Torrance, CA 90505;
telephone 310–539–0508; fax 310–539–
5198; or at https://robinsonheli.com/
technical-support/. You may view a
copy of the referenced service
information at the FAA, Office of the
Regional Counsel, Southwest Region,
10101 Hillwood Pkwy., Room 6N–321,
Fort Worth, TX 76177.
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ADDRESSES:
Examining the AD Docket
You may examine the AD docket on
the internet at https://
www.regulations.gov by searching for
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15:51 Apr 16, 2020
Jkt 250001
and locating Docket No. FAA–2017–
0947; or in person at Docket Operations
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
The AD docket contains this AD, any
comments received, and other
information. The address for Docket
Operations is U.S. Department of
Transportation, Docket Operations, M
30, West Building Ground Floor, Room
W12 140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT:
James Guo, Aerospace Engineer, Los
Angeles ACO Branch, FAA, 3960
Paramount Blvd., Lakewood, California
90712; telephone 562–627–5357; email
james.guo@faa.gov.
SUPPLEMENTARY INFORMATION:
Discussion
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would
apply to Robinson Model R44 and R44
II helicopters with a tail rotor blade part
number (P/N) C029–1 or P/N C029–2
installed. The NPRM published in the
Federal Register on May 23, 2018 (83
FR 23829). The NPRM was prompted by
reports of P/N C029–1 and P/N C029–
2 tail rotor blades with fatigue cracks at
the leading edge. The cracks were
caused by high fatigue stresses due to
resonance when the blades were at high
pitch angles from large left pedal inputs.
The NPRM proposed to require visually
checking each tail rotor blade for a
crack. The proposed requirements were
intended to detect a cracked tail rotor
blade and prevent loss of the blade and
subsequent loss of directional control.
The FAA is issuing this AD to address
the unsafe condition on these products.
Since the FAA issued the NPRM, the
website address for Robinson changed.
This AD updates that website address.
Comments
The FAA gave the public the
opportunity to comment on the NPRM.
The following presents the comments
received on the NPRM and the FAA’s
response to each comment.
Request: Robinson requested the FAA
change the wording in the Discussion
section that states the cracks in tail rotor
blades were caused by ‘‘stresses due to
resonance when the blades were at high
pitch angles from large left pedal
inputs’’ to ‘‘stresses during maneuvers
with large left pedal inputs.’’
FAA Response: The FAA disagrees.
The wording in the NPRM provides
greater detail with regard to the
mechanics of the cause of the cracking.
Request: Robinson requested the FAA
change the wording in the Discussion
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Fmt 4700
Sfmt 4700
section that describes the proposed
actions’ intentions by adding the word
‘‘possible’’, which would read as
follows: ‘‘prevent possible loss of the
blade.’’ Robinson states that even with
a crack, loss of the blade is possible, but
not certain.
FAA Response: The FAA disagrees.
The unsafe condition described in this
AD is a crack in the tail rotor blade. The
current wording does not state the
helicopter will lose a tail rotor blade but
rather loss of a blade could occur. The
description of the unsafe condition
states that the condition ‘‘could result in
the loss of the tail rotor.’’
Request: Robinson requested the FAA
correct the two instances of the wording
‘‘tail leading edge’’ by deleting the word
‘‘tail.’’ The first instance is in the
Proposed AD Requirements section and
the second instance is in the Required
Actions paragraph.
FAA Response: The FAA agrees and
has made these corrections.
Request: Robinson requested that the
FAA change the Applicability paragraph
by adding the following: ‘‘Tail rotor
blade part number is visible on data
plate located between bearings in blade
root.’’
FAA Response: The FAA disagrees
because the addition is unnecessary.
Parties may refer to the data plate or the
aircraft’s records to determine which
part-numbered tail rotor blades are
installed. If they are uncertain about the
location of the data plate, they can refer
to service information documents that
interested parties have access to through
their normal course of business.
Request: Robinson requested that the
FAA change the wording in the Unsafe
Condition paragraph to state, ‘‘This AD
defines the unsafe condition as a
possible crack in the tail rotor blade’’
because not all blades have a crack.
FAA Response: The FAA disagrees.
The unsafe condition that is being
addressed is a crack in a blade.
Request: Robinson requested that the
FAA change the wording in the
Required Actions section from the
checks of the tail rotor blades may be
conducted ‘‘by the owner/operator’’ to
‘‘by an owner/operator.’’
FAA Response: The FAA disagrees.
The language requested by the
commenter would unacceptably
broaden the AD requirement. The FAA
intended to allow the owner or operator
of the aircraft, who holds at least a
private pilot certificate, to perform the
check when maintenance personnel are
not present. The requested change in
language may be interpreted to allow a
pilot to perform the check on any
aircraft, including aircraft that the pilot
does not own or operate.
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17APR1
]]>Agencies
[Federal Register Volume 85, Number 75 (Friday, April 17, 2020)]
[Rules and Regulations]
[Pages 21312-21318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08216]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
[Docket No. OCC-2020-0014]
RIN 1557-AE86
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R-1713]
RIN 7100-AF87
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 323
RIN 3064-AF48
Real Estate Appraisals
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); and the
Federal Deposit Insurance Corporation (FDIC).
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The OCC, Board, and FDIC (collectively, the agencies) are
adopting an interim final rule to amend the agencies' regulations
requiring appraisals of real estate for certain transactions. The
interim final rule defers the requirement to obtain an appraisal or
evaluation for up to 120 days following the closing of a transaction
for certain residential and commercial real estate transactions,
excluding transactions for acquisition, development, and construction
of real estate. Regulated institutions should make best efforts to
obtain a credible valuation of real property collateral before the loan
closing, and otherwise underwrite loans consistent with the principles
in the agencies' Standards for Safety and Soundness and Real Estate
Lending Standards. The agencies are providing this relief to allow
regulated institutions to expeditiously extend liquidity to
creditworthy households and businesses in light of recent strains on
the U.S. economy as a result of the National Emergency declared in
connection with coronavirus disease 2019 (COVID-19).
DATES: The interim final rule is effective April 17, 2020 through
December 31, 2020. Comments on the interim final rule must be received
no later than June 1, 2020.
ADDRESSES: Interested parties are encouraged to submit written comments
[[Page 21313]]
jointly to all of the agencies. Commenters are encouraged to use the
title ``Real Estate Appraisals'' to facilitate the organization and
distribution of comments among the agencies. Comments should be
directed to:
OCC: Commenters are encouraged to submit comments through the
Federal eRulemaking Portal or email, if possible. Please use the title
``Real Estate Appraisals'' to facilitate the organization and
distribution of the comments. You may submit comments by any of the
following methods:
Federal eRulemaking Portal--Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://www.regulations.gov/. Enter
``Docket ID OCC-2020-0014'' in the Search Box and click ``Search.''
Click on ``Comment Now'' to submit public comments. For help with
submitting effective comments please click on ``View Commenter's
Checklist.'' Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov Classic
homepage. Enter ``Docket ID OCC-2020-0014'' in the Search Box and click
``Search.'' Public comments can be submitted via the ``Comment'' box
below the displayed document information or by clicking on the document
title and then clicking the ``Comment'' box on the top-left side of the
screen. For help with submitting effective comments please click on
``Commenter's Checklist.'' For assistance with the Regulations.gov Beta
site, please call (877) 378-5457 (toll free) or (703) 454-9859 Monday-
Friday, 9 a.m.-5 p.m. ET or email [email protected].
Email: [email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, 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
``Docket ID OCC-2020-0014'' in your comment. In general, the OCC will
enter all comments received into the docket and publish the comments on
the Regulations.gov website without change, including any business or
personal information provided 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.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically--Regulations.gov Classic
or Regulations.gov Beta:
Regulations.gov Classic: Go to https://www.regulations.gov/. Enter
``Docket ID OCC-2020-0014'' in the Search box and click ``Search.''
Click on ``Open Docket Folder'' on the right side of the screen.
Comments and supporting materials can be viewed and filtered by
clicking on ``View all documents and comments in this docket'' and then
using the filtering tools on the left side of the screen. Click on the
``Help'' tab on the Regulations.gov home page to get information on
using Regulations.gov. The docket may be viewed after the close of the
comment period in the same manner as during the comment period.
Regulations.gov Beta: Go to https://beta.regulations.gov/ or click
``Visit New Regulations.gov Site'' from the Regulations.gov Classic
homepage. Enter ``Docket ID OCC-2020-0014'' in the Search Box and click
``Search.'' Click on the ``Comments'' tab. Comments can be viewed and
filtered by clicking on the ``Sort By'' drop-down on the right side of
the screen or the ``Refine Results'' options on the left side of the
screen. Supporting materials can be viewed by clicking on the
``Documents'' tab and filtered by clicking on the ``Sort By'' drop-down
on the right side of the screen or the ``Refine Results'' options on
the left side of the screen.'' For assistance with the Regulations.gov
Beta site, please call (877) 378-5457 (toll free) or (703) 454-9859
Monday-Friday, 9 a.m.-5 p.m. ET or email
[email protected].
The docket may be viewed after the close of the comment period in
the same manner as during the comment period.
Board: You may submit comments, identified by Docket No. R-1713;
RIN 7100-AF87, by any of the following methods:
Agency website: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Email: [email protected]. Include docket
and RIN numbers in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments will be made available on the Board's website
at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any identifying or
contact information. For security reasons, the Board requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684.
FDIC: You may submit comments, identified by RIN 3064-AF48, by any
of the following methods:
Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the Agency
website.
Email: [email protected]. Include the RIN 3064-AF48 in the
subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
Instructions: Comments submitted must include ``FDIC'' and ``RIN
3064-AF48.'' Comments received will be posted without change to https://www.fdic.gov/regulations/laws/federal/, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: G. Kevin Lawton, Appraiser (Real Estate Specialist), (202)
649-6670; Mitchell Plave, Special Counsel, (202) 649-5490; or Joanne
Phillips, Counsel, Chief Counsel's Office (202) 649-5500; Office of the
Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219.
For persons who are deaf or hearing impaired, TTY users may contact
(202) 649-5597.
Board: Anna Lee Hewko, Associate Director, (202) 530-6260; Teresa
A. Scott, Manager, Policy Development Section, (202) 973-6114; Carmen
Holly, Lead Financial Institution Policy Analyst, (202) 973-6122,
Division of Supervision and Regulation; Laurie Schaffer, Deputy General
Counsel, (202) 452-2272; Derald Seid, Senior Counsel, (202) 452-2246;
Trevor Feigleson,
[[Page 21314]]
Senior Attorney, (202) 452-3274; David Imhoff Legal Assistant/Attorney,
(202) 452-2249, Legal Division, Board of Governors of the Federal
Reserve System, 20th and C Streets NW, Washington, DC 20551. For the
hearing impaired only, Telecommunications Device for the Deaf (TDD)
users may contact (202) 263-4869.
FDIC: Beverlea S. Gardner, Senior Examination Specialist, Division
of Risk Management and Supervision, (202) 898-3640, [email protected];
Benjamin K. Gibbs, Counsel, Legal Division, (202) 898-6726; Mark
Mellon, Counsel, Legal Division, (202) 898-3884; or, Lauren Whitaker,
Senior Attorney, Legal Division, (202) 898-3872, Federal Deposit
Insurance Corporation, 550 17th Street NW, Washington, DC 20429. For
the hearing impaired only, TDD users may contact (202) 925-4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Background
B. Summary of the Interim Final Rule
II. The Interim Final Rule
III. Effective Date
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act Analysis
E. Riegle Community Development and Regulatory Improvement Act
of 1994
F. Solicitation of Comments on Use of Plain Language
G. OCC Unfunded Mandates Reform Act of 1995 Determination
I. Introduction
A. Background
Impact of COVID-19 on appraisals and evaluations. Due to the impact
of COVID-19, businesses and individuals have a heightened need for
additional liquidity. Being able to quickly access equity in real
estate could help address this need. However, government restrictions
on non-essential movement and health and safety advisories in response
to the National Emergency declared in connection with COVID-19,\1\
including those relating to social distancing, have led to
complications with respect to performing and completing real property
appraisals and evaluations needed to comply with federal appraisal
regulations. As a result, some borrowers may experience delays in
obtaining funds needed to meet immediate and near-term financial needs.
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\1\ Proclamation 9994, 85 FR 15337 (March 18, 2020).
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Title XI and the appraisal regulations. Title XI directs each
Federal financial institutions regulatory agency to publish appraisal
regulations for federally related transactions within its
jurisdiction.\2\ The purpose of Title XI is to protect federal
financial and public policy interests \3\ in real estate-related
transactions by requiring that real estate appraisals used in
connection with federally related transactions (Title XI appraisals)
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.\4\
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\2\ The term ``Federal financial institutions regulatory
agencies'' means the Board, the FDIC, the OCC, the National Credit
Union Administration, and, formerly, the Office of Thrift
Supervision. 12 U.S.C. 3350(6).
\3\ These interests include those stemming from the federal
government's roles as regulator and deposit insurer of financial
institutions that engage in real estate lending and investment,
guarantor or lender on mortgage loans, and as a direct party in real
estate-related financial transactions. These federal financial and
public policy interests have been described in predecessor
legislation and accompanying Congressional reports. See Real Estate
Appraisal Reform Act of 1988, H.R. Rep. No. 100-1001, pt. 1, at 19
(1988); 133 Cong. Rec. 33047-33048 (1987).
\4\ 12 U.S.C. 3331.
---------------------------------------------------------------------------
Title XI directs the agencies to prescribe appropriate standards
for Title XI appraisals under the agencies' respective
jurisdictions.\5\ At a minimum, the statute provides that a Title XI
appraisal must be: (1) Performed in accordance with the Uniform
Standards of Professional Appraisal Practice (USPAP); (2) a written
appraisal, as defined by the statute; and (3) subject to appropriate
review for compliance with USPAP.\6\ While appraisals are ordinarily
completed before a lender and borrower close a real estate transaction,
there is no specific requirement in USPAP that appraisals be completed
at a specific time relative to the closing of a transaction.
---------------------------------------------------------------------------
\5\ 12 U.S.C. 3339.
\6\ Id.
---------------------------------------------------------------------------
All federally related transactions must have Title XI appraisals.
Title XI defines a federally related transaction as a real estate-
related financial transaction \7\ that the agencies or a financial
institution regulated by the agencies engages in or contracts for, that
requires the services of an appraiser.\8\ The agencies have authority
to determine those real estate-related financial transactions that do
not require the services of an appraiser and thus are not required to
have Title XI appraisals.\9\ The agencies have exercised this authority
by exempting certain categories of real estate-related financial
transactions from the agencies' appraisal requirements.\10\
---------------------------------------------------------------------------
\7\ 12 U.S.C. 3350(5). A real estate-related financial
transaction is defined as any transaction that involves: (i) The
sale, lease, purchase, investment in or exchange of real property,
including interests in property, or financing thereof; (ii) the
refinancing of real property or interests in real property; and
(iii) the use of real property or interests in property as security
for a loan or investment, including mortgage-backed securities.
\8\ 12 U.S.C. 3350(4).
\9\ Real estate-related financial transactions that the agencies
have exempted from the appraisal requirement are not federally
related transactions under the agencies' appraisal regulations.
\10\ See OCC: 12 CFR 34.43(a); Board: 12 CFR 225.63(a); FDIC: 12
CFR 323.3(a). The agencies have determined that these categories of
transactions do not require appraisals by state certified or state
licensed appraisers in order to protect federal financial and public
policy interests or to satisfy principles of safe and sound banking.
---------------------------------------------------------------------------
The agencies have used their safety and soundness authority to
require evaluations for a subset of transactions for which an appraisal
is not required.\11\ Under the appraisal regulations, for these
transactions, financial institutions that are subject to the agencies'
appraisal regulations (regulated institutions) must obtain an
appropriate evaluation of real property collateral that is consistent
with safe and sound banking practices.\12\
---------------------------------------------------------------------------
\11\ See OCC: 12 CFR 34.43(b); Board: 12 CFR 225.63(b); and
FDIC: 12 CFR 323.3(b). Evaluations are required for exempt
residential and commercial loans below the thresholds; exempt
business loans; exempt subsequent transactions; and transactions
subject to the rural residential exemption.
\12\ The agencies have provided guidance on appraisals and
evaluations through the Interagency Guidelines on Appraisals and
Evaluations. See 75 FR 77450 (December 10, 2010), available at
https://occ.gov/news-issuances/federal-register/2010/75fr77450.pdf.
---------------------------------------------------------------------------
Authority to defer appraisals and evaluations. In general, the
agencies require that Title XI appraisals for federally related
transactions occur prior to closing of a federally related
transaction.\13\ The Interagency Guidelines on Appraisals and
Evaluations provide similar information about evaluations.\14\ Under
the interim final rule, deferrals of appraisals and evaluations will
allow for expeditious access to credit. The deferrals, which will be
temporary, are offered in response to a National Emergency. Regulated
institutions that defer receipt of an appraisal or evaluation are still
expected to conduct their lending
[[Page 21315]]
activity consistent with the underwriting principles in the agencies'
Standards for Safety and Soundness \15\ and Real Estate Lending
Standards \16\ that focus on the ability of a borrower to repay a loan
and other relevant laws and regulations. These deferrals are not an
exercise of the agencies' waiver authority, because appraisals and
evaluations are being deferred, not waived. The deferrals are also not
a waiver of USPAP requirements, given that (1) USPAP does not address
the completion of an appraisal assignment with the timing of a lending
decision; and (2) the deferred appraisal must be conducted in
compliance with USPAP.
---------------------------------------------------------------------------
\13\ See OCC: 12 CFR 34.43(a), 34.44(b)&(e); Board: 12 CFR
225.63(a), 225.64(b)&(e); FDIC: 12 CFR 323.3(a), 323.4(b)&(e)
(requiring an appraisal to (1) contain sufficient information and
analysis to support the institution's decision to engage in the
transaction, and (2) be based on the definition of market value in
the regulation, which takes into account a specified closing date
for the transaction).
\14\ See 75 FR 77450 (December 10, 2010), available at https://occ.gov/news-issuances/federal-register/2010/75fr77450.pdf.
\15\ OCC: 12 CFR part 30, Appendix A; Board: 12 CFR 208,
Appendix D-1; and FDIC: 12 CFR part 364, Appendix A.
\16\ OCC: 12 CFR part 34, subpart D, Appendix A; Board: 12 CFR
208, Subpart E, Appendix C; and FDIC: 12 CFR part 365, subpart A,
Appendix A. Financial institutions should have a program for
establishing the market value of real property to comply with these
real estate lending standards, which require financial institutions
to determine the value used in loan-to-value calculations based in
part on a value set forth in an appraisal or an evaluation.
---------------------------------------------------------------------------
The deferral of evaluations reflects the same considerations
relating to the impact of COVID-19 as the deferral of appraisals. The
agencies require evaluations for certain exempt transactions as a
matter of safety and soundness. Evaluations do not need to comply with
USPAP, but must be sufficiently robust to support a valuation
conclusion. An evaluation can be less complex than an appraisal and
usually takes less time to complete than an appraisal, but it also
commonly involves physical property inspections. For these reasons, the
agencies also are using their safety and soundness authority \17\ to
allow for deferral of evaluations.
---------------------------------------------------------------------------
\17\ See 12 U.S.C. 1831p-1.
---------------------------------------------------------------------------
By the end of the deferral period, regulated institutions must
obtain appraisals or evaluations that are consistent with safe and
sound banking practices, as required by the agencies' appraisal
regulations.
B. Summary of the Interim Final Rule
The interim final rule allows a temporary deferral of the
requirements for appraisals and evaluations under the agencies'
appraisal regulations. The deferrals apply to both residential and
commercial real estate-related financial transactions, excluding
transactions for acquisition, development, and construction of real
estate. The agencies are excluding transactions for acquisition,
development, and construction of real estate because these loans
present heightened risks not associated with financing existing real
estate.
Under the interim final rule, regulated institutions may close a
real estate loan without a contemporaneous appraisal or evaluation,
subject to a requirement that institutions obtain the appraisal or
evaluation, as would have been required under the appraisal regulations
without the deferral, within a grace period of 120 days after closing
of the transaction. While appraisals and evaluations can be deferred,
the agencies expect institutions to use best efforts and available
information to develop a well-informed estimate of the collateral value
of the subject property. For purposes of risk-weighting of residential
mortgage exposures, an institution's prudent underwriting estimation of
the collateral value of the subject property will be considered to meet
the agencies' appraisal and evaluation requirements during the deferral
period.\18\ In addition, the agencies continue to expect regulated
institutions to adhere to internal underwriting standards for assessing
borrowers' creditworthiness and repayment capacity, and to develop
procedures for estimating the collateral's value for the purposes of
extending or refinancing credit. Transactions for acquisition,
development, and construction of real estate are being excluded because
repayment of those transactions is generally dependent on the
completion or sale of the property being held as collateral as opposed
to repayment generated by existing collateral or the borrower. The
agencies also expect institutions to develop an appropriate risk
mitigation strategy if the appraisal or evaluation ultimately reveals a
market value significantly lower than the expected market value. An
institution's risk mitigation strategy should consider safety and
soundness risk to the institution, balanced with mitigation of
financial harm to COVID-19-affected borrowers. The temporary provision
permitting regulated institutions to defer an appraisal or evaluation
for eligible transactions will expire on December 31, 2020 (a
transaction closed on or before December 31, 2020 is eligible for a
deferral), unless extended by the agencies. The agencies believe that
the limited timeframe for the deferral will in some respects help to
manage potential risk by balancing the need for immediate relief due to
the National Emergency with safety and soundness concerns for risk to
lenders.
---------------------------------------------------------------------------
\18\ See OCC: 12 CFR 3.32(g); Board: 12 CFR 217.32(g); FDIC: 12
CFR 324.32(g).
---------------------------------------------------------------------------
II. Revisions to the Title XI Appraisal Regulations
The interim final rule adds a new, temporary provision to the
appraisal regulations that provides a 120-day deferral of appraisal and
evaluation requirements for all transactions secured by commercial or
residential real estate during the COVID-19 pandemic, excluding
transactions for acquisition, development, and construction of real
estate. The interim final rule does not revise any of the existing
appraisal exceptions or any other requirements with respect to the
performance of evaluations.
The interim final rule will allow regulated institutions to quickly
provide liquidity to owners of commercial and residential property. The
temporary provision allowing regulated institutions to defer appraisals
or evaluations for covered transactions will expire on December 31,
2020, unless extended by the agencies.
III. Effective Date
The interim final rule is effective April 17, 2020.
IV. Administrative Law Matters
A. Administrative Procedure Act
The agencies are issuing this interim final rule without prior
notice and the opportunity for public comment and the 30-day delayed
effective date ordinarily prescribed by the Administrative Procedure
Act (APA).\19\ Pursuant to section 553(b)(B) of the APA, general notice
and the opportunity for public comment are not required with respect to
a rulemaking when an ``agency for good cause finds (and incorporates
the finding and a brief statement of reasons therefor in the rules
issued) that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \20\
---------------------------------------------------------------------------
\19\ 5 U.S.C. 553.
\20\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------
The agencies believe that the public interest is best served by
implementing the interim final rule as soon as possible. As discussed
above, recent events have suddenly and significantly affected global
economic activity, increasing businesses' and households' need to have
timely access to liquidity from real estate equity. In addition, the
spread of COVID-19 has greatly increased the difficulty of performing
real estate appraisals and evaluations in a timely manner. This relief
will allow regulated institutions to better focus on supporting lending
to creditworthy households and businesses in light of recent strains on
the U.S. economy as a
[[Page 21316]]
result of COVID-19, while reaffirming the safety and soundness
principle that valuation of collateral is an essential part of the
lending decision. For these reasons, the agencies find that there is
good cause consistent with the public interest to issue the rule
without advance notice and comment.\21\
---------------------------------------------------------------------------
\21\ 5 U.S.C. 553(b)(B); 553(d)(3)
---------------------------------------------------------------------------
The APA also requires a 30-day delayed effective date, except for
(1) substantive rules which grant or recognize an exemption or relieve
a restriction; (2) interpretative rules and statements of policy; or
(3) as otherwise provided by the agency for good cause.\22\ Because the
rules relieve a restriction, the interim final rule is exempt from the
APA's delayed effective date requirement.\23\ Additionally, the
agencies find good cause to publish the interim final rule with an
immediate effective date for the same reasons set forth above under the
discussion of section 553(b)(B) of the APA.
---------------------------------------------------------------------------
\22\ 5 U.S.C. 553(d).
\23\ 5 U.S.C. 553(d)(1).
---------------------------------------------------------------------------
While the agencies believe that there is good cause to issue the
rule without advance notice and comment and with an immediate effective
date, the agencies are interested in the views of the public and
request comment on all aspects of the interim final rule.
B. Congressional Review Act
For purposes of Congressional Review Act, the Office of Management
and Budget (OMB) makes a determination as to whether a final rule
constitutes a ``major'' rule.\24\ If a rule is deemed a ``major rule''
by the OMB, the Congressional Review Act generally provides that the
rule may not take effect until at least 60 days following its
publication.\25\
---------------------------------------------------------------------------
\24\ 5 U.S.C. 801 et seq.
\25\ 5 U.S.C. 801(a)(3).
---------------------------------------------------------------------------
The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of the OMB finds has resulted in or is likely to result in (A)
an annual effect on the economy of $100,000,000 or more; (B) a major
increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies or geographic regions, or
(C) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic and
export markets.\26\
---------------------------------------------------------------------------
\26\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------
For the same reasons set forth above with respect to APA
requirements, the agencies are adopting the interim final rule without
the delayed effective date generally prescribed under the Congressional
Review Act. The delayed effective date required by the Congressional
Review Act does not apply to any rule for which an agency for good
cause finds (and incorporates the finding and a brief statement of
reasons therefor in the rule issued) that notice and public procedure
thereon are impracticable, unnecessary, or contrary to the public
interest.\27\ In light of households' and businesses' immediate need to
access liquidity from real estate equity, combined with the difficulty
of obtaining appraisals during the ongoing COVID-19 outbreak, the
agencies believe that delaying the effective date of the rule would be
contrary to the public interest.
---------------------------------------------------------------------------
\27\ 5 U.S.C. 808(2).
---------------------------------------------------------------------------
As required by the Congressional Review Act, the agencies will
submit the final rule and other appropriate reports to Congress and the
Government Accountability Office for review.
C. Paperwork Reduction Act
In accordance with the requirements of the Paperwork Reduction Act
of 1995 \28\ (PRA), the agencies may not conduct or sponsor, and a
respondent is not required to respond to, an information collection
unless it displays a currently valid OMB control number. The agencies
have reviewed this final rule and determined that it would not
introduce any new or revise any collection of information pursuant to
the PRA. Therefore, no submissions will be made to OMB for review.
---------------------------------------------------------------------------
\28\ 44 U.S.C. 3501-3521.
---------------------------------------------------------------------------
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) \29\ generally requires that
an agency to consider whether the rule it proposes will have a
significant economic impact on a substantial number of small
entities.\30\ The RFA applies only to rules for which an agency
publishes a general notice of proposed rulemaking pursuant to 5 U.S.C.
553(b).\31\ As discussed previously, consistent with section 553(b)(B)
of the APA, the agencies have determined for good cause that general
notice and opportunity for public comment is unnecessary, and therefore
the agencies are not issuing a notice of proposed rulemaking.
Accordingly, the agencies have concluded that the RFA's requirements
relating to initial and final regulatory flexibility analysis do not
apply.
---------------------------------------------------------------------------
\29\ 5 U.S.C. 601 et seq.
\30\ 5 U.S.C. 604. Under regulations issued by the Small
Business Administration, a small entity includes a depository
institution, bank holding company, or savings and loan holding
company with total assets of $600 million or less and trust
companies with total assets of $41.5 million or less. See 13 CFR
121.201.
\31\ 5 U.S.C. 604(a).
---------------------------------------------------------------------------
Nevertheless, the agencies seek comment on whether, and the extent
to which, the interim final rule would affect a significant number of
small entities.
E. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\32\ in determining the effective
date and administrative compliance requirements for new regulations
that impose additional reporting, disclosure, or other requirements on
insured depository institutions (IDIs), each Federal banking agency
must consider, consistent with the principle of safety and soundness
and the public interest, any administrative burdens that such
regulations would place on depository institutions, including small
depository institutions, and customers of depository institutions, as
well as the benefits of such regulations. In addition, section 302(b)
of RCDRIA requires new regulations and amendments to regulations that
impose additional reporting, disclosure, or other new requirements on
IDIs generally to take effect on the first day of a calendar quarter
that begins on or after the date on which the regulations are published
in final form, with certain exceptions, including for good cause.\33\
The interim final rule would not impose any additional reporting,
disclosure, or other new requirements on IDIs. Therefore, for the
reasons described above, the agencies find good cause exists under
section 302 of RCDRIA to publish this interim final rule with an
immediate effective date. As such, the interim final rule will be
effective on April 17, 2020. Nevertheless, the agencies seek comment on
RCDRIA.
---------------------------------------------------------------------------
\32\ 12 U.S.C. 4802(a).
\33\ 12 U.S.C. 4802.
---------------------------------------------------------------------------
F. Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act \34\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The agencies have sought to present
the final rule in a simple and straightforward manner and invite
comments on whether there are additional steps the
[[Page 21317]]
agencies could take to make the rule easier to understand. For example:
---------------------------------------------------------------------------
\34\ 12 U.S.C. 4809.
---------------------------------------------------------------------------
Have the agencies organized the material to suit your
needs? If not, how could this material be better organized?
Are the requirements in the regulation clearly stated? If
not, how could the regulation be more clearly stated?
Does the regulation contain language or jargon that is not
clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the regulation easier to
understand? If so, what changes to the format would make the regulation
easier to understand?
What else could we do to make the regulation easier to
understand?
G. OCC Unfunded Mandates Reform Act of 1995 Determination
As a general matter, the Unfunded Mandates Reform Act of 1995
(UMRA), 2 U.S.C. 1531 et seq., requires the preparation of a budgetary
impact statement before promulgating a rule that includes a Federal
mandate that may result in the expenditure by State, local, and tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year. However, the UMRA does not apply to
final rules for which a general notice of proposed rulemaking was not
published.\35\ Therefore, because the OCC has found good cause to
dispense with notice and comment for this interim final rule, the OCC
has not prepared an economic analysis of the rule under the UMRA.
---------------------------------------------------------------------------
\35\ See 2 U.S.C. 1532(a).
---------------------------------------------------------------------------
List of Subjects
12 CFR Part 34
Appraisal, Appraiser, Banks, Banking, Consumer protection, Credit,
Mortgages, National banks, Reporting and recordkeeping requirements,
Savings associations, Truth in lending.
12 CFR Part 225
Administrative practice and procedure, Banks, banking, Federal
Reserve System, Capital planning, Holding companies, Reporting and
recordkeeping requirements, Securities, Stress testing
12 CFR Part 323
Banks, banking, Mortgages, Reporting and recordkeeping
requirements, Savings associations.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Chapter I
Authority and Issuance
For the reasons set forth in the joint preamble, the OCC amends
part 34 of chapter I of title 12 of the Code of Federal Regulations as
follows:
PART 34--REAL ESTATE LENDING AND APPRAISALS
0
1. The authority citation for part 34 continues to read as follows:
Authority: 12 U.S.C. 1, 25b, 29, 93a, 371, 1462a, 1463, 1464,
1465, 1701j-3, 1828(o), 3331 et seq., 5101 et seq., and
5412(b)(2)(B), and 15 U.S.C. 1639h.
0
2. Section 34.43 is amended by adding paragraph (f) to read as follows:
Sec. 34.43 Appraisals required; transactions requiring a State
certified or licensed appraiser.
* * * * *
(f) Deferrals of appraisals and evaluations for certain residential
and commercial transactions--(1) 120-day grace period. The completion
of appraisals and evaluations required under paragraphs (a) and (b) of
this section may be deferred up to 120 days from the date of closing.
(2) Covered transactions. The deferrals authorized under paragraph
(f)(1) of this section apply to all residential and commercial real
estate-secured transactions, excluding transactions for acquisition,
development, and construction of real estate.
(3) Sunset. The appraisal and evaluation deferrals authorized by
this paragraph (f) will expire for transactions closing after December
31, 2020.
FEDERAL RESERVE BOARD
12 CFR Chapter II
Authority and Issuance
For the reasons set forth in the joint preamble, the Board amends
part 225 of chapter II of title 12 of the Code of Federal Regulations
as follows:
PART 225--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL
(REGULATION Y)
0
3. The authority citation for part 225 continues to read as follows:
Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 1831p-1,
1843(c)(8), 1844(b), 1972(l), 3106, 3108, 3310, 3331 et seq., 31206,
31207, and 31209; 15 U.S.C. 1681s, 1681w, 6801 and 6805.
0
4. Section 225.63 is amended by adding paragraph (f) to read as
follows:
Sec. 225.63 Appraisals required; transactions requiring a State
certified or licensed appraiser.
* * * * *
(f) Deferrals of appraisals and evaluations for certain residential
and commercial transactions--(1) 120-day grace period. The completion
of appraisals and evaluations required under paragraphs (a) and (b) of
this section may be deferred up to 120 days from the date of closing.
(2) Covered transactions. The deferrals authorized under paragraph
(f)(1) of this section apply to all residential and commercial real
estate-secured transactions, excluding transactions for acquisition,
development, and construction of real estate.
(3) Sunset. The appraisal and evaluation deferrals authorized by
this paragraph (f) will expire for transactions closing after December
31, 2020.
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the joint preamble, the FDIC amends
part 323 of chapter III of title 12 of the Code of Federal Regulations
as follows:
PART 323--APPRAISALS
0
5. The authority citation for part 323 continues to read as follows:
Authority: 12 U.S.C. 1818, 1819(a) (``Seventh'' and ``Tenth''),
1831p-1 and 3331 et seq.
0
6. Section 323.3 is amended by adding paragraph (g) to read as follows:
Sec. 323.3 Appraisals required; transactions requiring a State
certified or licensed appraiser.
* * * * *
(g) Deferrals of appraisals and evaluations for certain residential
and commercial transactions--(1) 120-day grace period. The completion
of appraisals and evaluations required under paragraphs (a) and (b) of
this section may be deferred up to 120 days from the date of closing.
(2) Covered transactions. The deferrals authorized under paragraph
(g)(1) of this section apply to all residential and commercial real
estate-secured transactions, excluding transactions for acquisition,
development, and construction of real estate.
(3) Sunset. The appraisal and evaluation deferrals authorized by
this
[[Page 21318]]
paragraph (g) will expire for transactions closing after December 31,
2020.
Brian P. Brooks,
First Deputy Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System, April 10, 2020.
Ann Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on or about April 10, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-08216 Filed 4-16-20; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
