Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Credit Risk Retention, 27677-27680 [2021-10799]
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Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices
2021–0032 through one of the following
methods:
• Federal eRulemaking Portal:
www.regulations.gov. Search using the
above DOT docket number and follow
the online instructions for submitting
comments.
• Fax: 1–202–493–2251.
• Mail or Hand Delivery: Docket
Management Facility, U.S. Department
of Transportation, 1200 New Jersey
Avenue SE, West Building, Room W12–
140, Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through
Friday, except on Federal holidays.
Instructions: All submissions must
include the agency name and docket
number for this rulemaking.
Note: All comments received will be
posted without change to
www.regulations.gov including any
personal information provided.
Comments are invited on: (a) Whether
the proposed collection of information
is necessary for the Department’s
performance; (b) the accuracy of the
estimated burden; (c) ways for the
Department to enhance the quality,
utility and clarity of the information
collection; and (d) ways that the burden
could be minimized without reducing
the quality of the collected information.
The agency will summarize and/or
include your comments in the request
for OMB’s clearance of this information
collection.
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Electronic Access and Filing
A copy of the notice may be viewed
online at www.regulations.gov using the
docket number listed above. A copy of
this notice will be placed in the docket.
Electronic retrieval help and guidelines
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each year. An electronic copy of this
document may also be downloaded
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the Government Publishing Office’s
website at www.GovInfo.gov.
FOR FURTHER INFORMATION CONTACT: Jim
Mead, (202) 366–5723, Office of Cargo
and Commercial Sealift, U.S.
Department of Transportation, 1200
New Jersey Avenue SE, Washington, DC
20590.
SUPPLEMENTARY INFORMATION:
Title: Procedures for Determining
Vessel Services Categories for Purposes
of the Cargo Preference Act.
OMB Control Number: 2133–0540.
Type of Request: Renewal of a
Previously Approved Information
Collection.
Abstract: The purpose is to provide
information to be used in the
designation of service categories of
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individual vessels for purposes of
compliance with the Cargo Preference
Act under a Memorandum of
Understanding entered into by the U.S.
Department of Agriculture, U.S. Agency
for International Development, and the
Maritime Administration. MARAD will
use the data submitted by vessel
operators to create a list of Vessel SelfDesignations and determine whether
MARAD agrees or disagrees with a
vessel owner’s designation of a vessel.
Respondents: Owners or operators of
U.S.-registered vessels and foreignregistered vessels.
Affected Public: Business Owners for
Profits.
Estimated Number of Respondents:
200.
Estimated Number of Responses: 200.
Estimated Hours per Response: .25.
Annual Estimated Total Annual
Burden Hours: 50.
Frequency of Response: Annually.
(Authority: The Paperwork Reduction Act of
1995; 44 U.S.C. Chapter 35, as amended; and
49 CFR 1.93.)
*
*
*
*
*
By Order of the Maritime Administrator.
Dated: May 17, 2021.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2021–10696 Filed 5–20–21; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Information Collection
Renewal; Submission for OMB Review;
Credit Risk Retention
Office of the Comptroller of the
Currency (OCC), Treasury.
ACTION: Notice and request for comment.
AGENCY:
The OCC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other Federal
agencies to take this opportunity to
comment on a continuing information
collection as required by the Paperwork
Reduction Act of 1995 (PRA). In
accordance with the requirements of the
PRA, the OCC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The OCC is
soliciting comment concerning the
renewal of its information collection
titled, ‘‘Credit Risk Retention.’’ The OCC
SUMMARY:
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27677
also is giving notice that it has sent the
collection to OMB for review.
DATES: You should submit written
comments by June 21, 2021
ADDRESSES: Commenters are encouraged
to submit comments by email, if
possible. You may submit comments by
any of the following methods:
• Email: prainfo@occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, 1557–
0249, 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 ‘‘1557–
0249’’ in your comment. In general, the
OCC will publish comments on
www.reginfo.gov 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.
Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
You may review comments and other
related materials that pertain to this
information collection 1 following the
close of the 30-day comment period for
this notice by the following method:
• Viewing Comments Electronically:
Go to www.reginfo.gov. Click on the
‘‘Information Collection Review’’ tab.
Underneath the ‘‘Currently under
Review’’ section heading, from the dropdown menu select ‘‘Department of
Treasury’’ and then click ‘‘submit.’’ This
information collection can be located by
searching by OMB control number
‘‘1557–0249’’ or ‘‘Credit Risk
Retention.’’ Upon finding the
appropriate information collection, click
on the related ‘‘ICR Reference Number.’’
On the next screen, select ‘‘View
Supporting Statement and Other
Documents’’ and then click on the link
1 On March 17, 2021, the OCC published a 60-day
notice for this information collection, 86 FR 14674.
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to any comment listed at the bottom of
the screen.
• For assistance in navigating
www.reginfo.gov, please contact the
Regulatory Information Service Center
at (202) 482–7340.
SUPPLEMENTARY INFORMATION:
Title: Credit Risk Retention.
OMB Control No.: 1557–0249.
Affected Public: Business or other forprofit.
Type of Review: Regular review.
Abstract: This information collection
request relates to 12 CFR part 43, which
implemented section 941(b) of the
Dodd-Frank Act.2 Section 941(b) of the
Dodd-Frank Act required the OCC,
Board of Governors of the Federal
Reserve System (Board), Federal Deposit
Insurance Corporation (FDIC), Securities
and Exchange Commission (SEC), and,
in the case of the securitization of any
residential mortgage asset, the Federal
Housing Finance Agency (FHFA), and
the Department of Housing and Urban
Development (HUD) (collectively, the
agencies) to issue rules that, subject to
certain exemptions: Require a
securitizer to retain not less than 5% of
the credit risk of any asset that the
securitizer, through the issuance of an
asset-backed security, transfers, sells, or
conveys to a third party; and prohibit a
securitizer from directly or indirectly
hedging or otherwise transferring the
credit risk that the securitizer is
required to retain under the statute and
implementing regulations.
Part 43 sets forth permissible forms of
risk retention for securitizations that
involve the issuance of asset-backed
securities. Section 15G of the Exchange
Act also exempts certain types of
securitization transactions from these
risk retention requirements and
authorizes the agencies to exempt or
establish a lower risk retention
requirement for other types of
securitization transactions. Section 15G
also states that the agencies must permit
a securitizer to retain less than five
percent of the credit risk of commercial
mortgages, commercial loans, and
automobile loans that are transferred,
sold, or conveyed through the issuance
of ABS by the securitizer if the loans
meet underwriting standards
established by the Federal banking
agencies.3
Part 43 sets forth permissible forms of
risk retention for securitizations that
involve issuance of asset-backed
securities, as well as exemptions from
the risk retention requirements, and
2 Dodd-Frank Wall Street Reform and Consumer
Protection Act (Pub. L. 111–203, 124 Stat. 1376
(July 21, 2010)).
3 15 U.S.C. 78o–11(c)(1)(B)(ii) and (2).
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contains requirements subject to the
PRA.
Section 43.4 sets forth the conditions
that must be met by sponsors electing to
use the standard risk retention option,
which may consist of an eligible vertical
interest or an eligible horizontal
residual interest, or any combination
thereof. Sections 43.4(c)(1) and
43.4(c)(2) specify the disclosures
required with respect to eligible
horizontal residual interests and eligible
vertical interests, respectively.
A sponsor retaining any eligible
horizontal residual interest (or funding
a horizontal cash reserve account) is
required to disclose: The fair value (or
a range of fair values and the method
used to determine such range) of the
eligible horizontal residual interest that
the sponsor expects to retain at the
closing of the securitization transaction
(§ 43.4(c)(1)(i)(A)); the material terms of
the eligible horizontal residual interest
(§ 43.4(c)(1)(i)(B)); the methodology
used to calculate the fair value (or range
of fair values) of all classes of ABS
interests (§ 43.4(c)(1)(i)(C)); the key
inputs and assumptions used in
measuring the estimated total fair value
(or range of fair values) of all classes of
ABS interests (§ 43.4(c)(1)(i)(D)); the
reference data set or other historical
information used to develop the key
inputs and assumptions
(§ 43.4(c)(1)(i)(G)); the fair value of the
eligible horizontal residual interest
retained by the sponsor
(§ 43.4(c)(1)(ii)(A)); the fair value of the
eligible horizontal residual interest
required to be retained by the sponsor
(§ 43.4(c)(1)(ii)(B)); a description of any
material differences between the
methodology used in calculating the fair
value disclosed prior to sale and the
methodology used to calculate the fair
value at the time of closing
(§ 43.4(c)(1)(ii)(C)); and if the sponsor
retains risk through the funding of an
eligible horizontal cash reserve account,
the amount placed by the sponsor in the
horizontal cash reserve account at
closing, the fair value of the eligible
horizontal residual interest that the
sponsor is required to fund through
such account, and a description of such
account (§ 43.4(c)(1)(iii)).
For eligible vertical interests, the
sponsor is required to disclose: The
form of the eligible vertical interest
(§ 43.4(c)(2)(i)(A)); the percentage that
the sponsor is required to retain as a
vertical interest (§ 43.4(c)(2)(i)(B)); a
description of the material terms of the
vertical interest and the amount the
sponsor expects to retain at
closing(§ 43.4(c)(2)(i)(C)); and the
amount of vertical interest retained by
the sponsor at closing, if that amount is
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materially different from the amount
disclosed ((§ 43.4(c)(2)(ii)).
Section 43.4(d) requires a sponsor to
retain the certifications and disclosures
required in paragraphs (a) and (c) of this
section in its records and must provide
the disclosure upon request to the
Commission and the sponsor’s
appropriate Federal banking agency, if
any, until three years after all ABS
interests are no longer outstanding.
Section 43.5(k) requires sponsors
relying on the master trust (or revolving
pool securitization) risk retention option
to disclose: The material terms of the
seller’s interest and the percentage of
the seller’s interest that the sponsor
expects to retain at the closing of the
transaction (§ 43.5(k)(1)(i)); the amount
of the seller’s interest that the sponsor
retained at closing, if that amount is
materially different from the amount
disclosed (§ 43.5(k)(1)(ii)); the material
terms of any horizontal residual
interests offsetting the seller’s interest
under § 43.5(g), § 43.5(h) and § 43.5(i)
(§ 43.5(k)(1)(iii)); and the fair value of
any horizontal residual interests
retained by the sponsor (§ 43.5(k)(1)(iv)).
Additionally, a sponsor must retain the
disclosures required in § 43.5(k)(1) in its
records and must provide the disclosure
upon request to the Commission and the
sponsor’s appropriate Federal banking
agency, if any, until three years after all
ABS interests are no longer outstanding
(§ 43.5(k)(3)).
Section 43.6 addresses the
requirements for sponsors utilizing the
eligible ABCP conduit risk retention
option. The requirements for the eligible
ABCP conduit risk retention option
include disclosure to each purchaser of
ABCP and periodically to each holder of
commercial paper issued by the ABCP
conduit of the name and form of
organization of the regulated liquidity
provider that provides liquidity
coverage to the eligible ABCP conduit,
including a description of the material
terms of such liquidity coverage, and
notice of any failure to fund; and with
respect to each ABS interest held by the
ABCP conduit, the asset class or brief
description of the underlying
securitized assets, the standard
industrial category code for each
originator-seller that retains an interest
in the securitization transaction, and a
description of the percentage amount
and form of interest retained by each
originator-seller (§ 43.6(d)(1)). An ABCP
conduit sponsor relying upon this
section shall provide, upon request, to
the Commission and the sponsor’s
appropriate Federal banking agency, if
any, the information required under
§ 43.6(d)(1), in addition to the name and
form of organization of each originator-
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seller that retains an interest in the
securitization transaction (§ 43.6(d)(2)).
A sponsor relying on the eligible
ABCP conduit risk retention option
shall maintain and adhere to policies
and procedures to monitor compliance
by each originator-seller which is
satisfying a risk retention obligation in
respect to ABS interests acquired by an
eligible ABCP conduit (§ 43.6(f)(2)(i)). If
the ABCP conduit sponsor determines
that an originator-seller is no longer in
compliance, the sponsor must promptly
notify the holders of the ABCP, and
upon request, the Commission and the
sponsor’s appropriate Federal banking
agency, in writing of the name and form
of organization of any originator-seller
that fails to retain, and the amount of
ABS interests issued by an intermediate
SPV of such originator-seller and held
by the ABCP conduit
(§ 43.6(f)(2)(ii)(A)(1)); the name and
form of organization of any originatorseller that hedges, directly or indirectly
through an intermediate SPV, its risk
retention in violation of the rule, and
the amount of ABS interests issued by
an intermediate SPV of such originatorseller and held by the ABCP conduit
(§ 43.6(f)(2)(ii)(A)(2)); and any remedial
actions taken by the ABCP conduit
sponsor or other party with respect to
such ABS interests
(§ 43.6(f)(2)(ii)(A)(3)).
Section 43.7 sets forth the
requirements for sponsors relying on the
commercial mortgage-backed securities
risk retention option, and includes
disclosures of: The name and form of
organization of each initial third-party
purchaser (§ 43.7(b)(7)(i)); each initial
third-party purchaser’s experience in
investing in commercial mortgagebacked securities (§ 43.7(b)(7)(ii)); other
material information (§ 43.7(b)(7)(iii));
the fair value and purchase price of the
eligible horizontal residual interest
retained by each initial third-party
purchaser, and the fair value of the
eligible horizontal residual interest that
the sponsor would have retained if the
sponsor had relied on retaining an
eligible horizontal residual interest
under the standard risk retention option
(§ 43.7(b)(7)(iv) and (v)); a description of
the material terms of the eligible
horizontal residual interest retained by
each initial third-party purchaser,
including the same information as is
required to be disclosed by sponsors
retaining horizontal interests pursuant
to § 43.4 (§ 43.7(b)(7)(vi)); the material
terms of the applicable transaction
documents with respect to the
Operating Advisor (§ 43.7(b)(7)(vii));
and representations and warranties
concerning the securitized assets, a
schedule of any securitized assets that
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are determined not to comply with such
representations and warranties, and the
factors used to determine that such
securitized assets should be included in
the pool notwithstanding that they did
not comply with the representations and
warranties (§ 43.7(b)(7)(viii)). A sponsor
relying on the commercial mortgagebacked securities risk retention option is
also required to provide in the
underlying securitization transaction
documents certain provisions related to
the Operating Advisor (§ 43.7(b)(6)), to
maintain and adhere to policies and
procedures to monitor compliance by
third-party purchasers with regulatory
requirements (§ 43.7(c)(2)(i)), and to
notify the holders of the ABS interests
in the event of noncompliance by a
third-party purchaser with such
regulatory requirements (§ 43.7(c)(2)(ii)).
Section 43.8 requires that a sponsor
relying on the Federal National
Mortgage Association and Federal Home
Loan Mortgage Corporation risk
retention option must disclose a
description of the manner in which it
has met the credit risk retention
requirements (§ 43.8(c)).
Section 43.9 sets forth the
requirements for sponsors relying on the
open market CLO risk retention option,
and includes disclosures of a complete
list of, and certain information related
to, every asset held by an open market
CLO (§ 43.9(d)(1)), and the full legal
name and form of organization of the
CLO manager (§ 43.9(d)(2)).
Section 43.10 sets forth the
requirements for sponsors relying on the
qualified tender option bond risk
retention option, and includes
disclosures of the name and form of
organization of the qualified tender
option bond entity, a description of the
form and subordination features of the
retained interest in accordance with the
disclosure obligations in section 43.4(c),
the fair value of any portion of the
retained interest that is claimed by the
sponsor as an eligible horizontal
residual interest, and the percentage of
ABS interests issued that is represented
by any portion of the retained interest
that is claimed by the sponsor as an
eligible vertical interest (§ 43.10(e)(1)–
(4)). In addition, to the extent any
portion of the retained interest claimed
by the sponsor is a municipal security
held outside of the qualified tender
option bond entity, the sponsor must
disclose the name and form of
organization of the qualified tender
option bond entity, the identity of the
issuer of the municipal securities, the
face value of the municipal securities
deposited into the qualified tender
option bond entity, and the face value
of the municipal securities retained
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27679
outside of the qualified tender option
bond entity by the sponsor or its
majority-owned affiliates (§ 43.10(e)(5)).
Section 43.11 sets forth the conditions
that apply when the sponsor of a
securitization allocates to originators of
securitized assets a portion of the credit
risk the sponsor is required to retain,
including disclosure of the name and
form of organization of any originator
that acquires and retains an interest in
the transaction, a description of the
form, amount and nature of such
interest, and the method of payment for
such interest (§ 43.11(a)(2)). A sponsor
relying on this section is required to
maintain and adhere to policies and
procedures that are reasonably designed
to monitor originator compliance with
retention amount and hedging,
transferring and pledging requirements
(§ 43.11(b)(2)(i)), and to promptly notify
the holders of the ABS interests in the
transaction in the event of originator
non-compliance with such regulatory
requirements (§ 43.11(b)(2)(ii)).
Sections 43.13 and 43.19(g) provide
exemptions from the risk retention
requirements for qualified residential
mortgages and qualifying 3-to-4 unit
residential mortgage loans that meet
certain specified criteria, including that
the depositor with respect to the
securitization transaction certify that it
has evaluated the effectiveness of its
internal supervisory controls and
concluded that the controls are effective
(§§ 43.13(b)(4)(i) and 43.19(g)(2)), and
that the sponsor provide a copy of the
certification to potential investors prior
to sale of asset-backed securities in the
issuing entity (§§ 43.13(b)(4)(iii) and
43.19(g)(2)). In addition, §§ 43.13(c)(3)
and 43.19(g)(3) provide that a sponsor
that has relied upon the exemptions will
not lose the exemptions if, after closing
of the transaction, it is determined that
one or more of the residential mortgage
loans does not meet all of the criteria;
provided that the depositor complies
with certain specified requirements,
including prompt notice to the holders
of the asset-backed securities of any
loan that is required to be repurchased
by the sponsor, the amount of such
repurchased loan, and the cause for
such repurchase.
Section 43.15 provides exemptions
from the risk retention requirements for
qualifying commercial loans that meet
the criteria specified in § 43.16,
qualifying CRE loans that meet the
criteria specified in § 43.17, and
qualifying automobile loans that meet
the criteria specified in § 43.18. Section
43.15 also requires the sponsor to
disclose a description of the manner in
which the sponsor determined the
aggregate risk retention requirement for
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the securitization transaction after
including qualifying commercial loans,
qualifying CRE loans, or qualifying
automobile loans with 0 percent risk
retention (§ 43.15(a)(4)). In addition, the
sponsor is required to disclose
descriptions of the qualifying
commercial loans, qualifying CRE loans,
and qualifying automobile loans
(‘‘qualifying assets’’), and descriptions
of the assets that are not qualifying
assets, and the material differences
between the group of qualifying assets
and the group of assets that are not
qualifying assets with respect to the
composition of each group’s loan
balances, loan terms, interest rates,
borrower credit information, and
characteristics of any loan collateral
(§ 43.15(b)(3)). Additionally, a sponsor
must retain the disclosures required in
§§ 43.15(a) and (b) in its records and
must provide the disclosure upon
request to the Commission and the
sponsor’s appropriate Federal banking
agency, if any, until three years after all
ABS interests are no longer outstanding
(§ 43.15(d)).
Sections 43.16, 43.17 and 43.18 each
require that: The depositor of the assetbacked security certify that it has
evaluated the effectiveness of its
internal supervisory controls and
concluded that its internal supervisory
controls are effective (§§ 43.16(a)(8)(i),
43.17(a)(10)(i), and 43.18(a)(8)(i)); the
sponsor is required to provide a copy of
the certification to potential investors
prior to the sale of asset-backed
securities in the issuing entity
(§§ 43.16(a)(8)(iii), 43.17(a)(10)(iii), and
43.18(a)(8)(iii)); and the sponsor must
promptly notify the holders of the assetbacked securities of any loan included
in the transaction that is required to be
cured or repurchased by the sponsor,
including the principal amount of such
loan and the cause for such cure or
repurchase (§§ 43.16(b)(3), 43.17(b)(3),
and 43.18(b)(3)). Additionally, a sponsor
must retain the disclosures required in
§§ 43.16(a)(8), 43.17(a)(10) and
43.18(a)(8) in its records and must
provide the disclosure upon request to
the Commission and the sponsor’s
appropriate Federal banking agency, if
any, until three years after all ABS
interests are no longer outstanding
(§ 43.15(d)).
Estimated Number of Respondents: 35
sponsors; 182 annual offerings per year.
Total Estimated Annual Burden:
2,835 hours.4
On March 17, 2021, the OCC
published a 60-day notice for this
4 This estimate appeared as 2,799 hours in the 60day notice and has been corrected to 2,835 hours
(86 FR 14674 (March 17, 2021)).
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information collection, 86 FR 14674. No
comments were received. Comments
continue to be invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the information collection
burden;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
[FR Doc. 2021–10799 Filed 5–20–21; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Notice and Request for Information—
State Small Business Credit Initiative
(SSBCI)
Departmental Offices, Treasury.
Request for information.
AGENCY:
ACTION:
The State Small Business
Credit Initiative (SSBCI) provides funds
to States, Territories, and Tribal
governments to enable these
jurisdictions to support programs for
small businesses. Specifically,
beginning in FY 2021, the Department
of the Treasury (Treasury) is authorized
to provide up to $10 billion in support
for small business capital and technical
assistance programs as a response to the
economic effects of the COVID–19
pandemic. Treasury invites the public to
comment on the SSBCI program design
and implementation in order to support
new and existing small businesses.
Responses may be used by Treasury to
assist in developing program design and
guidance. Responses may also be used
to inform Treasury’s allocation of
technical assistance funding to states,
territories, and Tribal governments, the
Minority Business Development Agency
(MBDA), and programs implemented
directly by Treasury.
DATES: Responses must be received by
June 4, 2021 to be assured of
consideration.
ADDRESSES: Submit comments via
www.regulations.gov. In general,
SUMMARY:
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comments received will be posted on
https://www.regulations.gov without
change, including any business or
personal information provided.
Comments received, including
attachments and other supporting
materials, will be part of the public
record and subject to public disclosure.
Do not enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: Jeff
Stout at (202) 622–2059 or ssbci_
information@treasury.gov.
SUPPLEMENTARY INFORMATION:
Purpose: This request for information
offers States, Territories, Tribal
governments, localities, communitybased and other non-profit
organizations, small businesses,
researchers, financial institutions, and
other interested individuals and entities
the opportunity to provide information
on effective approaches for the delivery
of capital and technical assistance
through SSBCI.
Background: SSBCI provides funding
for two program categories: Capital
access programs (‘‘CAPs’’) and other
credit support programs (‘‘OCSPs’’).
CAPs provide portfolio insurance for
business loans by setting up loan loss
reserve funds for participating financial
institutions. OCSPs include, but are not
limited to, collateral support programs,
loan participation and guarantee
programs, and venture capital and other
venture financing programs.
SSBCI was originally created in the
Small Business Jobs Act of 2010 to
increase availability of credit for small
business. It was funded at $1.5 billion
and implemented by Treasury and states
and territories from 2011 through 2017.
Funds were allocated in all 50 states,
the District of Columbia, the
Commonwealth of Puerto Rico, the
Commonwealth of Northern Mariana
Islands, Guam, American Samoa, and
the United States Virgin Islands. SSBCI
provided allocatees significant
flexibility to design programs that met
local market conditions. By the end of
the program, participating jurisdictions
had directed SSBCI funds to 152 small
business programs with a wide range of
models and strategies. State programs
addressed the spectrum of small
business financing needs, from loans for
microbusinesses and equipment
purchases for small manufacturers to
equity capital for early stage technology.
Approximately 69 percent of the
funding supported lending or credit
support programs and 31 percent
supported venture capital programs.
According to the program evaluation
E:\FR\FM\21MYN1.SGM
21MYN1
]]>Agencies
[Federal Register Volume 86, Number 97 (Friday, May 21, 2021)]
[Notices]
[Pages 27677-27680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10799]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection
Renewal; Submission for OMB Review; Credit Risk Retention
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other Federal
agencies to take this opportunity to comment on a continuing
information collection as required by the Paperwork Reduction Act of
1995 (PRA). In accordance with the requirements of the PRA, the OCC may
not conduct or sponsor, and the respondent is not required to respond
to, an information collection unless it displays a currently valid
Office of Management and Budget (OMB) control number. The OCC is
soliciting comment concerning the renewal of its information collection
titled, ``Credit Risk Retention.'' The OCC also is giving notice that
it has sent the collection to OMB for review.
DATES: You should submit written comments by June 21, 2021
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
Email: [email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, 1557-0249, 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
``1557-0249'' in your comment. In general, the OCC will publish
comments on www.reginfo.gov 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.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under 30-day Review--Open for
Public Comments'' or by using the search function.
You may review comments and other related materials that pertain to
this information collection \1\ following the close of the 30-day
comment period for this notice by the following method:
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\1\ On March 17, 2021, the OCC published a 60-day notice for
this information collection, 86 FR 14674.
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Viewing Comments Electronically: Go to www.reginfo.gov.
Click on the ``Information Collection Review'' tab. Underneath the
``Currently under Review'' section heading, from the drop-down menu
select ``Department of Treasury'' and then click ``submit.'' This
information collection can be located by searching by OMB control
number ``1557-0249'' or ``Credit Risk Retention.'' Upon finding the
appropriate information collection, click on the related ``ICR
Reference Number.'' On the next screen, select ``View Supporting
Statement and Other Documents'' and then click on the link
[[Page 27678]]
to any comment listed at the bottom of the screen.
For assistance in navigating www.reginfo.gov, please
contact the Regulatory Information Service Center at (202) 482-7340.
SUPPLEMENTARY INFORMATION:
Title: Credit Risk Retention.
OMB Control No.: 1557-0249.
Affected Public: Business or other for-profit.
Type of Review: Regular review.
Abstract: This information collection request relates to 12 CFR
part 43, which implemented section 941(b) of the Dodd-Frank Act.\2\
Section 941(b) of the Dodd-Frank Act required the OCC, Board of
Governors of the Federal Reserve System (Board), Federal Deposit
Insurance Corporation (FDIC), Securities and Exchange Commission (SEC),
and, in the case of the securitization of any residential mortgage
asset, the Federal Housing Finance Agency (FHFA), and the Department of
Housing and Urban Development (HUD) (collectively, the agencies) to
issue rules that, subject to certain exemptions: Require a securitizer
to retain not less than 5% of the credit risk of any asset that the
securitizer, through the issuance of an asset-backed security,
transfers, sells, or conveys to a third party; and prohibit a
securitizer from directly or indirectly hedging or otherwise
transferring the credit risk that the securitizer is required to retain
under the statute and implementing regulations.
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\2\ Dodd-Frank Wall Street Reform and Consumer Protection Act
(Pub. L. 111-203, 124 Stat. 1376 (July 21, 2010)).
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Part 43 sets forth permissible forms of risk retention for
securitizations that involve the issuance of asset-backed securities.
Section 15G of the Exchange Act also exempts certain types of
securitization transactions from these risk retention requirements and
authorizes the agencies to exempt or establish a lower risk retention
requirement for other types of securitization transactions. Section 15G
also states that the agencies must permit a securitizer to retain less
than five percent of the credit risk of commercial mortgages,
commercial loans, and automobile loans that are transferred, sold, or
conveyed through the issuance of ABS by the securitizer if the loans
meet underwriting standards established by the Federal banking
agencies.\3\
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\3\ 15 U.S.C. 78o-11(c)(1)(B)(ii) and (2).
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Part 43 sets forth permissible forms of risk retention for
securitizations that involve issuance of asset-backed securities, as
well as exemptions from the risk retention requirements, and contains
requirements subject to the PRA.
Section 43.4 sets forth the conditions that must be met by sponsors
electing to use the standard risk retention option, which may consist
of an eligible vertical interest or an eligible horizontal residual
interest, or any combination thereof. Sections 43.4(c)(1) and
43.4(c)(2) specify the disclosures required with respect to eligible
horizontal residual interests and eligible vertical interests,
respectively.
A sponsor retaining any eligible horizontal residual interest (or
funding a horizontal cash reserve account) is required to disclose: The
fair value (or a range of fair values and the method used to determine
such range) of the eligible horizontal residual interest that the
sponsor expects to retain at the closing of the securitization
transaction (Sec. 43.4(c)(1)(i)(A)); the material terms of the
eligible horizontal residual interest (Sec. 43.4(c)(1)(i)(B)); the
methodology used to calculate the fair value (or range of fair values)
of all classes of ABS interests (Sec. 43.4(c)(1)(i)(C)); the key
inputs and assumptions used in measuring the estimated total fair value
(or range of fair values) of all classes of ABS interests (Sec.
43.4(c)(1)(i)(D)); the reference data set or other historical
information used to develop the key inputs and assumptions (Sec.
43.4(c)(1)(i)(G)); the fair value of the eligible horizontal residual
interest retained by the sponsor (Sec. 43.4(c)(1)(ii)(A)); the fair
value of the eligible horizontal residual interest required to be
retained by the sponsor (Sec. 43.4(c)(1)(ii)(B)); a description of any
material differences between the methodology used in calculating the
fair value disclosed prior to sale and the methodology used to
calculate the fair value at the time of closing (Sec.
43.4(c)(1)(ii)(C)); and if the sponsor retains risk through the funding
of an eligible horizontal cash reserve account, the amount placed by
the sponsor in the horizontal cash reserve account at closing, the fair
value of the eligible horizontal residual interest that the sponsor is
required to fund through such account, and a description of such
account (Sec. 43.4(c)(1)(iii)).
For eligible vertical interests, the sponsor is required to
disclose: The form of the eligible vertical interest (Sec.
43.4(c)(2)(i)(A)); the percentage that the sponsor is required to
retain as a vertical interest (Sec. 43.4(c)(2)(i)(B)); a description
of the material terms of the vertical interest and the amount the
sponsor expects to retain at closing(Sec. 43.4(c)(2)(i)(C)); and the
amount of vertical interest retained by the sponsor at closing, if that
amount is materially different from the amount disclosed ((Sec.
43.4(c)(2)(ii)).
Section 43.4(d) requires a sponsor to retain the certifications and
disclosures required in paragraphs (a) and (c) of this section in its
records and must provide the disclosure upon request to the Commission
and the sponsor's appropriate Federal banking agency, if any, until
three years after all ABS interests are no longer outstanding.
Section 43.5(k) requires sponsors relying on the master trust (or
revolving pool securitization) risk retention option to disclose: The
material terms of the seller's interest and the percentage of the
seller's interest that the sponsor expects to retain at the closing of
the transaction (Sec. 43.5(k)(1)(i)); the amount of the seller's
interest that the sponsor retained at closing, if that amount is
materially different from the amount disclosed (Sec. 43.5(k)(1)(ii));
the material terms of any horizontal residual interests offsetting the
seller's interest under Sec. 43.5(g), Sec. 43.5(h) and Sec. 43.5(i)
(Sec. 43.5(k)(1)(iii)); and the fair value of any horizontal residual
interests retained by the sponsor (Sec. 43.5(k)(1)(iv)). Additionally,
a sponsor must retain the disclosures required in Sec. 43.5(k)(1) in
its records and must provide the disclosure upon request to the
Commission and the sponsor's appropriate Federal banking agency, if
any, until three years after all ABS interests are no longer
outstanding (Sec. 43.5(k)(3)).
Section 43.6 addresses the requirements for sponsors utilizing the
eligible ABCP conduit risk retention option. The requirements for the
eligible ABCP conduit risk retention option include disclosure to each
purchaser of ABCP and periodically to each holder of commercial paper
issued by the ABCP conduit of the name and form of organization of the
regulated liquidity provider that provides liquidity coverage to the
eligible ABCP conduit, including a description of the material terms of
such liquidity coverage, and notice of any failure to fund; and with
respect to each ABS interest held by the ABCP conduit, the asset class
or brief description of the underlying securitized assets, the standard
industrial category code for each originator-seller that retains an
interest in the securitization transaction, and a description of the
percentage amount and form of interest retained by each originator-
seller (Sec. 43.6(d)(1)). An ABCP conduit sponsor relying upon this
section shall provide, upon request, to the Commission and the
sponsor's appropriate Federal banking agency, if any, the information
required under Sec. 43.6(d)(1), in addition to the name and form of
organization of each originator-
[[Page 27679]]
seller that retains an interest in the securitization transaction
(Sec. 43.6(d)(2)).
A sponsor relying on the eligible ABCP conduit risk retention
option shall maintain and adhere to policies and procedures to monitor
compliance by each originator-seller which is satisfying a risk
retention obligation in respect to ABS interests acquired by an
eligible ABCP conduit (Sec. 43.6(f)(2)(i)). If the ABCP conduit
sponsor determines that an originator-seller is no longer in
compliance, the sponsor must promptly notify the holders of the ABCP,
and upon request, the Commission and the sponsor's appropriate Federal
banking agency, in writing of the name and form of organization of any
originator-seller that fails to retain, and the amount of ABS interests
issued by an intermediate SPV of such originator-seller and held by the
ABCP conduit (Sec. 43.6(f)(2)(ii)(A)(1)); the name and form of
organization of any originator-seller that hedges, directly or
indirectly through an intermediate SPV, its risk retention in violation
of the rule, and the amount of ABS interests issued by an intermediate
SPV of such originator-seller and held by the ABCP conduit (Sec.
43.6(f)(2)(ii)(A)(2)); and any remedial actions taken by the ABCP
conduit sponsor or other party with respect to such ABS interests
(Sec. 43.6(f)(2)(ii)(A)(3)).
Section 43.7 sets forth the requirements for sponsors relying on
the commercial mortgage-backed securities risk retention option, and
includes disclosures of: The name and form of organization of each
initial third-party purchaser (Sec. 43.7(b)(7)(i)); each initial
third-party purchaser's experience in investing in commercial mortgage-
backed securities (Sec. 43.7(b)(7)(ii)); other material information
(Sec. 43.7(b)(7)(iii)); the fair value and purchase price of the
eligible horizontal residual interest retained by each initial third-
party purchaser, and the fair value of the eligible horizontal residual
interest that the sponsor would have retained if the sponsor had relied
on retaining an eligible horizontal residual interest under the
standard risk retention option (Sec. 43.7(b)(7)(iv) and (v)); a
description of the material terms of the eligible horizontal residual
interest retained by each initial third-party purchaser, including the
same information as is required to be disclosed by sponsors retaining
horizontal interests pursuant to Sec. 43.4 (Sec. 43.7(b)(7)(vi)); the
material terms of the applicable transaction documents with respect to
the Operating Advisor (Sec. 43.7(b)(7)(vii)); and representations and
warranties concerning the securitized assets, a schedule of any
securitized assets that are determined not to comply with such
representations and warranties, and the factors used to determine that
such securitized assets should be included in the pool notwithstanding
that they did not comply with the representations and warranties (Sec.
43.7(b)(7)(viii)). A sponsor relying on the commercial mortgage-backed
securities risk retention option is also required to provide in the
underlying securitization transaction documents certain provisions
related to the Operating Advisor (Sec. 43.7(b)(6)), to maintain and
adhere to policies and procedures to monitor compliance by third-party
purchasers with regulatory requirements (Sec. 43.7(c)(2)(i)), and to
notify the holders of the ABS interests in the event of noncompliance
by a third-party purchaser with such regulatory requirements (Sec.
43.7(c)(2)(ii)).
Section 43.8 requires that a sponsor relying on the Federal
National Mortgage Association and Federal Home Loan Mortgage
Corporation risk retention option must disclose a description of the
manner in which it has met the credit risk retention requirements
(Sec. 43.8(c)).
Section 43.9 sets forth the requirements for sponsors relying on
the open market CLO risk retention option, and includes disclosures of
a complete list of, and certain information related to, every asset
held by an open market CLO (Sec. 43.9(d)(1)), and the full legal name
and form of organization of the CLO manager (Sec. 43.9(d)(2)).
Section 43.10 sets forth the requirements for sponsors relying on
the qualified tender option bond risk retention option, and includes
disclosures of the name and form of organization of the qualified
tender option bond entity, a description of the form and subordination
features of the retained interest in accordance with the disclosure
obligations in section 43.4(c), the fair value of any portion of the
retained interest that is claimed by the sponsor as an eligible
horizontal residual interest, and the percentage of ABS interests
issued that is represented by any portion of the retained interest that
is claimed by the sponsor as an eligible vertical interest (Sec.
43.10(e)(1)-(4)). In addition, to the extent any portion of the
retained interest claimed by the sponsor is a municipal security held
outside of the qualified tender option bond entity, the sponsor must
disclose the name and form of organization of the qualified tender
option bond entity, the identity of the issuer of the municipal
securities, the face value of the municipal securities deposited into
the qualified tender option bond entity, and the face value of the
municipal securities retained outside of the qualified tender option
bond entity by the sponsor or its majority-owned affiliates (Sec.
43.10(e)(5)).
Section 43.11 sets forth the conditions that apply when the sponsor
of a securitization allocates to originators of securitized assets a
portion of the credit risk the sponsor is required to retain, including
disclosure of the name and form of organization of any originator that
acquires and retains an interest in the transaction, a description of
the form, amount and nature of such interest, and the method of payment
for such interest (Sec. 43.11(a)(2)). A sponsor relying on this
section is required to maintain and adhere to policies and procedures
that are reasonably designed to monitor originator compliance with
retention amount and hedging, transferring and pledging requirements
(Sec. 43.11(b)(2)(i)), and to promptly notify the holders of the ABS
interests in the transaction in the event of originator non-compliance
with such regulatory requirements (Sec. 43.11(b)(2)(ii)).
Sections 43.13 and 43.19(g) provide exemptions from the risk
retention requirements for qualified residential mortgages and
qualifying 3-to-4 unit residential mortgage loans that meet certain
specified criteria, including that the depositor with respect to the
securitization transaction certify that it has evaluated the
effectiveness of its internal supervisory controls and concluded that
the controls are effective (Sec. Sec. 43.13(b)(4)(i) and 43.19(g)(2)),
and that the sponsor provide a copy of the certification to potential
investors prior to sale of asset-backed securities in the issuing
entity (Sec. Sec. 43.13(b)(4)(iii) and 43.19(g)(2)). In addition,
Sec. Sec. 43.13(c)(3) and 43.19(g)(3) provide that a sponsor that has
relied upon the exemptions will not lose the exemptions if, after
closing of the transaction, it is determined that one or more of the
residential mortgage loans does not meet all of the criteria; provided
that the depositor complies with certain specified requirements,
including prompt notice to the holders of the asset-backed securities
of any loan that is required to be repurchased by the sponsor, the
amount of such repurchased loan, and the cause for such repurchase.
Section 43.15 provides exemptions from the risk retention
requirements for qualifying commercial loans that meet the criteria
specified in Sec. 43.16, qualifying CRE loans that meet the criteria
specified in Sec. 43.17, and qualifying automobile loans that meet the
criteria specified in Sec. 43.18. Section 43.15 also requires the
sponsor to disclose a description of the manner in which the sponsor
determined the aggregate risk retention requirement for
[[Page 27680]]
the securitization transaction after including qualifying commercial
loans, qualifying CRE loans, or qualifying automobile loans with 0
percent risk retention (Sec. 43.15(a)(4)). In addition, the sponsor is
required to disclose descriptions of the qualifying commercial loans,
qualifying CRE loans, and qualifying automobile loans (``qualifying
assets''), and descriptions of the assets that are not qualifying
assets, and the material differences between the group of qualifying
assets and the group of assets that are not qualifying assets with
respect to the composition of each group's loan balances, loan terms,
interest rates, borrower credit information, and characteristics of any
loan collateral (Sec. 43.15(b)(3)). Additionally, a sponsor must
retain the disclosures required in Sec. Sec. 43.15(a) and (b) in its
records and must provide the disclosure upon request to the Commission
and the sponsor's appropriate Federal banking agency, if any, until
three years after all ABS interests are no longer outstanding (Sec.
43.15(d)).
Sections 43.16, 43.17 and 43.18 each require that: The depositor of
the asset-backed security certify that it has evaluated the
effectiveness of its internal supervisory controls and concluded that
its internal supervisory controls are effective (Sec. Sec.
43.16(a)(8)(i), 43.17(a)(10)(i), and 43.18(a)(8)(i)); the sponsor is
required to provide a copy of the certification to potential investors
prior to the sale of asset-backed securities in the issuing entity
(Sec. Sec. 43.16(a)(8)(iii), 43.17(a)(10)(iii), and 43.18(a)(8)(iii));
and the sponsor must promptly notify the holders of the asset-backed
securities of any loan included in the transaction that is required to
be cured or repurchased by the sponsor, including the principal amount
of such loan and the cause for such cure or repurchase (Sec. Sec.
43.16(b)(3), 43.17(b)(3), and 43.18(b)(3)). Additionally, a sponsor
must retain the disclosures required in Sec. Sec. 43.16(a)(8),
43.17(a)(10) and 43.18(a)(8) in its records and must provide the
disclosure upon request to the Commission and the sponsor's appropriate
Federal banking agency, if any, until three years after all ABS
interests are no longer outstanding (Sec. 43.15(d)).
Estimated Number of Respondents: 35 sponsors; 182 annual offerings
per year.
Total Estimated Annual Burden: 2,835 hours.\4\
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\4\ This estimate appeared as 2,799 hours in the 60-day notice
and has been corrected to 2,835 hours (86 FR 14674 (March 17,
2021)).
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On March 17, 2021, the OCC published a 60-day notice for this
information collection, 86 FR 14674. No comments were received.
Comments continue to be invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the information
collection burden;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2021-10799 Filed 5-20-21; 8:45 am]
BILLING CODE 4810-33-P
