Agency Information Collection Activities: Proposed Information Collection Renewal; Comment Request, 43652-43663 [2021-16963]

Agencies

• FEDERAL DEPOSIT INSURANCE CORPORATION

[Federal Register Volume 86, Number 151 (Tuesday, August 10, 2021)]
[Notices]
[Pages 43652-43663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16963]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0183; -0195; -0200]


Agency Information Collection Activities: Proposed Information 
Collection Renewal; Comment Request

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its obligations under the Paperwork 
Reduction Act of 1995 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collections described below (OMB Control No. 
3064-0183; -0195; and -0200).

DATES: Comments must be submitted on or before October 12, 2021.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     Agency website: https://www.fdic.gov/resources/regulations/federal-register-publications/.

[[Page 43653]]

     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Manny Cabeza (202-898-3767), Regulatory Counsel, MB-
3128, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery: Comments may be hand-delivered to the guard 
station at the rear of the 17th Street building (located on F Street), 
on business days between 7:00 a.m. and 5:00 p.m.
    All comments should refer to the relevant OMB control number. A 
copy of the comments may also be submitted to the OMB desk officer for 
the FDIC: Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Manny Cabeza, Regulatory Counsel, 202-
898-3767, [email protected], MB-3128, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Proposal to renew the following currently 
approved collections of information:
    1. Title: Credit Risk Retention.
    OMB Number: 3064-0183.
    Form Number: None.
    Affected Public: Insured state nonmember banks, state savings 
institutions, insured state branches of foreign banks, and any 
subsidiary of the aforementioned entities.
    General Description of Collection: This information collection 
request comprises disclosure and recordkeeping requirements under the 
credit risk retention rule issued pursuant to section 15G of the 
Securities Exchange Act of 1934 (15 U.S.C. 78o-11), as added by Section 
941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank'').\1\ The Credit Risk Retention rule (``the Rule'') was 
jointly issued in 2015 by the Federal Deposit Insurance Corporation 
(``FDIC''), the Office of the Comptroller of the Currency (``OCC''), 
the Federal Reserve Board (``Board''), the Securities and Exchange 
Commission (``SEC'') and, with respect to the portions of the Rule 
addressing the securitization of residential mortgages, the Federal 
Housing Finance Agency (``FHFA'') and the Department of Housing and 
Urban Development (``HUD'').\2\ The FDIC regulations corresponding to 
the Rule are found at 12 CFR part 373.\3\
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    \1\ Public Law 111-2-3, 124 Stat. 1376 (2010).
    \2\ 79 FR 77740.
    \3\ Each agency adopted the same rule text but each agency's 
version of its rule is codified in different parts of the Code of 
Federal Regulations with substantially identical section numbers 
(e.g.__.01;_.02, etc.) Rule citations herein are to FDIC's version 
of the Rule which is codified at 12 CFR part 373.
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    Section 941 of Dodd-Frank requires the Board, the FDIC, the OCC 
(collectively, the ``Federal banking agencies''), the Commission and, 
in the case of the securitization of any ``residential mortgage 
asset,'' together with HUD and FHFA, to jointly prescribe regulations 
that (i) require a an issuer of an asset-backed security or a person 
who organizes and initiates an asset backed securities transaction by 
selling or transferring assets, either directly or indirectly, 
including through an affiliate, to the issuer (``issuer or organizer'') 
to retain not less than five percent of the credit risk of any asset 
that the issuer or organizer, through the issuance of an asset-backed 
security (``ABS''), transfers, sells or conveys to a third party and 
(ii) prohibit an issuer or organizer from directly or indirectly 
hedging or otherwise transferring the credit risk that the issuer or 
organizer is required to retain under section 941 and the agencies' 
implementing rules. Exempted from the credit risk retention 
requirements of section 941 are certain types of securitization 
transactions, including ABS collateralized solely by qualified 
residential mortgages (``QRMs''), as that term is defined in the Rule. 
In addition, Section 941 provides that the agencies must permit an 
issuer or organizer to retain less than five percent of the credit risk 
of residential mortgage loans, commercial real estate (``CRE'') loans, 
commercial loans and automobile loans that are transferred, sold or 
conveyed through the issuance of ABS by the issuer or organizer, if the 
loans meet underwriting standards established by the Federal banking 
agencies.
    The FDIC implemented Section 941 of Dodd-Frank through 12 CFR part 
373 (the ``Rule''). The Rule defines a securitizer as (1) The depositor 
of the asset-backed securities (if the depositor is not the sponsor); 
or (2) The sponsor of the asset-backed securities.\4\ The Rule provides 
a menu of credit risk retention options from which securitizers can 
choose and sets out the standards, including disclosure, recordkeeping, 
and reporting requirements, for each option; identifies the eligibility 
criteria, including certification and disclosure requirements, that 
must be met for ABS offerings to qualify for the QRM and other 
exemptions; specifies the underwriting standards for CRE loans, 
commercial loans and automobile loans, as well as disclosure, 
certification and recordkeeping requirements, that must be met for ABS 
issuances collateralized by such loans to qualify for reduced credit 
risk retention; and sets forth the circumstances under which retention 
obligations may be allocated by sponsors to originators, including 
disclosure and monitoring requirements.
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    \4\ 12 CFR 373.2.
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    Part 373 contains several requirements that qualify as information 
collections under the Paperwork Reduction Act of 1995 (``PRA''). The 
information collection requirements are found in sections 373.4; 373.5; 
373.6; 373.7; 373.8; 373.9; 373.10; 373.11; 373.13; 373.15; 373.16; 
373.17; 373.18; and 373.19(g). The recordkeeping requirements relate 
primarily to (i) the adoption and maintenance of various policies and 
procedures to ensure and monitor compliance with regulatory 
requirements and (ii) certifications, including as to the effectiveness 
of internal supervisory controls. The required disclosures for each 
risk retention option are intended to provide investors with material 
information concerning the sponsor's retained interest in a 
securitization transaction (e.g., the amount, form and nature of the 
retained interest, material assumptions and methodology, 
representations and warranties). Compliance with the information 
collection requirements is mandatory, responses to the information 
collections will not be kept confidential and, with the exception of 
the recordkeeping requirements in sections 373.4(d), 373.5(k)(3) and 
373.15(d), the Rule does not specify a mandatory retention period for 
the information.
    Burden Estimate:

Change Is Burden Estimation Methodology

(1) Prior Methodology

    To determine the total paperwork burden for the requirements 
contained in the Credit Risk Retention Rule, FDIC first estimated the 
universe of sponsors that would be required to comply with the 
disclosure and recordkeeping requirements. FDIC estimated that 
approximately 270 unique sponsors conduct ABS offerings each year.\5\ 
This estimate was based on the average number of ABS offerings from 
2007 through 2017 reported by the ABS database Asset-Backed Alert for 
all non-CMBS transactions and by Commercial Mortgage Alert for all CMBS

[[Page 43654]]

transactions.\6\ Of the 270 sponsors, the agencies assigned 8 percent 
of these sponsors to the Board, 12 percent to FDIC, 13 percent to the 
OCC, and 67 percent to the Commission.\7\
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    \5\ By agreement among the agencies, the FDIC's Division of 
Insurance Research, in consultation with its counterparts at the 
other agencies, prepared and documented the burden estimation 
methodology used by all agencies in their respective ICRs.
    \6\ Data was provided by the Securities and Exchange Commission. 
See SEC supporting statement for its information collection for the 
Credit Risk Retention rule (3235-0712) available at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201803-3235-014.
    \7\ The allocation percentages among the agencies were based on 
the agencies' latest assessment of data as of August 13, 2018, 
including the securitization activity reported by FDIC-insured 
depository institutions in the June 30, 2017 Consolidated Reports of 
Condition.
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    Next, FDIC estimated how many respondents keep records and make 
required disclosures by estimating the proportionate amount of 
offerings per year for each agency. The estimate was based on the 
average number of ABS offerings from 2007 through 2017. The agencies 
estimated the total number of annual offerings per year to be 1,400 \8\ 
which resulted in the following:
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    \8\ Based on ABS issuance data from Asset-Backed Alert on the 
initial terms of offerings, supplemented with information from 
Commercial Mortgage Alert. This estimate included registered 
offerings, offerings made under Securities Act Rule 144A, and 
traditional private placements. This estimate was for offerings not 
exempted under Sec. Sec.  _.19(a)-(f) and _.20 of the Rule.
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    (a) 13 offerings per year will be subject to disclosure and 
recordkeeping requirements under Sec.  373.11, which are divided 
equally among the four agencies (i.e., 3.25 offerings per year per 
agency);
    (b) 110 offerings per year were estimated to be subject to 
disclosure and recordkeeping requirements under Sec. Sec.  373.13 and 
373.19(g), which were divided proportionately among the agencies based 
on the entity percentages described above:
    (i) Nine (9) offerings per year for the Board (8%);
    (ii) 13 offerings per year for the FDIC (12%);
    (iii) 14 offerings per year for the OCC (13%);
    (iv) 74 offerings per year for the Commission (67%).
    (c) 132 offerings per year were estimated to be subject to the 
disclosure requirements under Sec.  373.15, which were divided 
proportionately among the agencies based on the entity percentages 
described above:
    (i) 11 offerings per year for the Board (8%);
    (ii) 16 offerings per year for the FDIC (12%);
    (iii) 17 offerings per year for the OCC (13%);
    (iv) 88 offerings per year for the Commission (67%).
    (d) Of these 132 offerings per year, 44 offerings per year were 
estimated to be subject to disclosure and recordkeeping requirements 
under Sec. Sec.  373.16, 373.17, and 373.18, respectively, which were 
divided proportionately among the agencies based on the entity 
percentages described above:
    (i) 4 offerings per year for each section for the Board (8%);
    (ii) 6 offerings per year for each section for the FDIC (12%);
    (iii) 6 offerings per year for each section for the OCC (13%);
    (iv) 29 offerings per year for each section for the Commission 
(67%).
    To obtain the estimated number of responses (equal to the number of 
offerings) for each option in subpart B of the rule, FDIC multiplied 
the number of offerings estimated to be subject to the base risk 
retention requirements (i.e., 1,158) \9\ by the sponsor percentages 
described above. The result was the number of base risk retention 
offerings per year per agency. For the FDIC, this was calculated by 
multiplying 1,158 offerings per year by 12 percent, which equals 139 
offerings per year. This number was then divided by the number of base 
risk retention options under subpart B of the rule (i.e., nine) \10\ to 
arrive at the estimate of the number of offerings per year per agency 
per base risk retention option. For the FDIC, this was calculated by 
dividing 139 offerings per year by nine options, resulting in 15 
offerings per year per base risk retention option.
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    \9\ Estimate of 1,400 offerings per year, minus the estimate of 
the number of offerings qualifying for an exemption under Sec. Sec.  
373.13, 373.15, and 19(g) as described in (b) and (c) above (i.e. 
1,400 minus (b) 110 minus (c) 132 equals 1,158).
    \10\ For purposes of this calculation, the horizontal, vertical, 
and combined horizontal and vertical risk retention methods under 
the standard risk retention option (Sec.  373.4) are each counted as 
a separate option under subpart B of the rule. The other six are: 
Sec.  373.5; Sec.  373.6; Sec.  373.7; Sec.  373.8; Sec.  373.9; and 
Sec.  373.10.
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    The agencies assumed that 90% of institutions use the vertical 
interest form of risk retention while the remaining 10% use the 
combined vertical and horizontal form of risk retention. The burden 
tables above use this allocation and of the 45 responses attributed to 
Sec.  373.4, we allocated 40 (90%) to the vertical form of risk 
retention and 5 (10%) to the other two options (1 response to the 
horizontal form of risk retention and 4 responses to the combined 
vertical and horizontal form of risk retention.
    FDIC believes that the burden estimation methodology previously 
used overestimates the number of ABS offerings by FDIC-supervised 
institutions. Furthermore, the OCC has confirmed that the estimates it 
used for its 2021 renewal of OCC's Credit Risk Retention information 
collection are based on the expertise of the OCC's subject matter 
experts rather than the 2015 interagency methodology.\11\ As a result 
of these two factors, the FDIC has decided to diverge from the 
interagency methodology used in 2015 and 2018 and instead use the new 
methodology described below to estimate burden for this information 
collection.
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    \11\ The supporting statement for the OCC's 2021 renewal is 
titled ``1557-0249 Credit Risk Retention Supporting Statement 5-18-
21 1244.docx''and can be found at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202101-1557-003.
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(2) New Methodology

    Potential respondents to this information collection (IC) are FDIC-
supervised insured depository institutions (``IDIs'') including state 
nonmember banks, state savings institutions, insured state branches of 
foreign banks, and any subsidiary of the aforementioned entities. As of 
December 31, 2020, the FDIC supervised 3,227 state nonmember banks, 
state savings institutions, and insured state branches of foreign 
banks. Of these 3,227 IDIs, 2,382 are small for the purposes of the 
Regulatory Flexibility Act (RFA).\12\
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    \12\ The SBA defines a small banking organization as having $600 
million or less in assets, where an organization's ``assets are 
determined by averaging the assets reported on its four quarterly 
financial statements for the preceding year.'' See 13 CFR 121.201 
(as amended by 84 FR 34261, effective August 19, 2019). In its 
determination, the ``SBA counts the receipts, employees, or other 
measure of size of the concern whose size is at issue and all of its 
domestic and foreign affiliates.'' See 13 CFR 121.103. Following 
these regulations, the FDIC uses a respondent's affiliated and 
acquired assets, averaged over the preceding four quarters, to 
determine whether the respondent is ``small'' for the purposes of 
RFA.
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    Respondents to this information collection are FDIC-supervised IDIs 
that are securitizers of ABS. To generate a universe of potential 
securitizers, FDIC obtained data from Call Reports for the quarter 
ending on December 31 for the years 2018, 2019, and 2020, for all FDIC-
supervised IDIs that reported a non-zero amount in either: (a) 
Outstanding principal balance of assets sold and securitized with 
servicing retained or with recourse or other seller-provided credit 
enhancements; \13\ or (b) amount of loans and leases held for 
investment, net of allowance, and held for sale held by consolidated 
variable interest entities (VIEs).\14\ This search resulted in a list 
of 79 IDIs that were potential securitizers. Using this list, FDIC 
searched for each IDI's name in FitchConnect's repository

[[Page 43655]]

of ABS offerings (``deals'') \15\ and compiled a list of deals for 
which an IDI was listed as the issuer, sponsor, originator, or servicer 
of the offering. For IDIs for which deals were not found on 
FitchConnect, the following method was followed: The queried Call 
Report item labeled ``(a)'' above includes assets sold with recourse or 
other seller-provided credit enhancements, which are outside the scope 
of the Credit Risk Retention rule. To identify IDIs which securitized 
from those that did not, a $75 million threshold of year over year 
growth in that item is used to identify new securitizations in 2018, 
2019, and 2020, as FDIC assumes that growth of less than $75 million 
would be unlikely to reflect sponsorship or issuance of new term ABS 
offerings during that period. This method yielded a list of 20 
institutions. FDIC reviewed examination records for the 20 IDIs 
identified as potential securitizers to determine which institutions 
actually securitize. FDIC cross-referenced the list of securitizing 
IDIs and the list of aforementioned ABS offering naming conventions 
found using FitchConnect with Intex's database of prospectuses.\16\ 
From this cross-referencing, FDIC found a count of deals associated 
with each deal name. Finally, FDIC determined whether the sponsor or 
depositor for each deal was an FDIC-supervised IDI or subsidiary of an 
FDIC-supervised institution by reading the prospectus of each deal.
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    \13\ Schedule RC-S, item 1 on forms 031 and 041; Supplemental 
Info, item 4(a) on form 051.
    \14\ Schedule RC-V, item 1(c) on forms 031 and 041.
    \15\ https://app.fitchconnect.com, using ``ABS'', ``CMBS'', and 
``RMBS'' sections under the ``Sectors'' tab, last accessed on June 
11, 2021.
    \16\ https://www.intex.com/main/.
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    Once the set of deals, with corresponding FDIC-supervised 
securitizers, was constructed, FDIC matched each deal with the sections 
in Part 373 that imposed one or more PRA requirements on that deal. 
Most sections impose both disclosure and recordkeeping 
requirements.\17\ For those sections, FDIC separately estimated the 
burdens for each of the two types of PRA requirements. The following 
details the estimated respondent counts for each of these sections:
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    \17\ With the noted exception of Sec.  373.10 Qualified Tender 
Option Bonds, which has no recordkeeping burden associated with it.
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    (a) Two FDIC-supervised IDIs were involved in deals in which credit 
risk was retained through horizontal interest (Sec.  373.4(a)(2) 
Standard Risk Retention--Horizontal Interest). These two IDIs were 
involved in four, three, and four such deals in 2018, 2019, and 2020, 
respectively. FDIC therefore estimates two annual respondents, with an 
average annual response rate of two responses per respondent, for the 
disclosure requirement associated with Sec.  373.4(a)(2) and the 
corresponding reporting requirement in Sec.  373.4(d).\18\
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    \18\ 4+3+4=11 total deals. 11/(3 years*2 respondents)=1.83 
responses per respondent annually.
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    (b) Two FDIC-supervised IDIs were involved in deals in which credit 
risk was retained through vertical interest (Sec.  373.4(a)(1) Standard 
Risk Retention--Vertical Interest). These two IDIs were involved in 0, 
0, and 13 such deals in 2018, 2019, and 2020, respectively. FDIC 
therefore estimates two annual respondents, with an average annual 
response rate of two responses per respondent, for the disclosure 
requirement associated with Sec.  373.4(a)(1) and the corresponding 
reporting requirement in Sec.  373.4(d).\19\
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    \19\ 0+0+13=13 total deals. 13/(3 years*2 respondents)=2.17 
responses per respondent annually.
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    (c) Three FDIC-supervised IDIs were involved in deals in which 
credit risk was retained through revolving master trusts (Sec.  373.5 
Revolving Master Trusts). These three IDIs were involved in eight, six, 
and zero such deals in 2018, 2019, and 2020, respectively. FDIC 
therefore estimates three annual respondents, with an average annual 
response rate of two responses per respondent, for the disclosure 
requirement associated with Sec.  373.5 and the corresponding reporting 
requirement in Sec.  373.5(k)(3).\20\
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    \20\ 8+6+0=14 total deals. 14/(3 years*3 respondents)=1.56 
responses per respondent annually.
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    Using the above methodology, FDIC could not find any ABS offerings 
that (1) involved an FDIC-supervised IDI or subsidiary of an FDIC-
supervised IDI as a securitizer and (2) were subject to the PRA 
requirements listed in one or more of the following ten sections: 
Sec. Sec.  373.4(a)(3); 373.6; 373.7; 373.10; 373.11; 373.13; 373.15; 
373.16; 373.17; and 373.18. It is possible that an FDIC-supervised IDI 
or subsidiary of an FDIC-supervised IDI would be a respondent to burden 
items related to these sections in the next three years. As such, FDIC 
is using one respondent and one annual response per respondent for the 
disclosure and recordkeeping requirements related to each of these ten 
sections to preserve the associated burden estimate.
    Of the seven unique institutions with securitizations between 2018 
and 2020, none are considered small for the purposes of the RFA.\21\
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    \21\ As of December 31, 2020.
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    The estimated time per response varies by burden item, and these 
estimates are unchanged from the previous renewal which remains in line 
with the burden estimated adopted by the agencies.
    Two burden items included in the 2018 information collection 
request have been removed from this renewal request. The disclosure 
burden related to Sec.  373.8 Fannie Mae and Freddie Mac was removed as 
FDIC has determined that it is not possible for FDIC-supervised IDIs or 
subsidiaries of FDIC-supervised IDIs to be respondents to this burden 
item. The disclosure burden related to Sec.  373.9 Open Market 
Collateralized Loan Obligations (``CLOs'') was removed because the D.C. 
Circuit Court invalidated section 941 of Dodd-Frank as it applies to 
CLOs.\22\
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    \22\ The Loan Syndication and Trading Association v. Securities 
and Exchange Commission and Board of Governors of the Federal 
Reserve System (No. 17-5004).
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    The estimated annual burden, in hours, is the product of the 
estimated number of respondents, number of responses per respondent, 
and time per response, as summarized in the table below. The total 
estimated annual burden for this information collection is 376 hours, a 
3,075-hour reduction from the 2018 burden estimate, which reflects the 
aforementioned change in methodology.

                                                           Summary of Estimated Annual Burden
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                                                                                             Estimated       Number of                     Total annual
            IC description                  Type of burden        Frequency of response      number of      responses/       Hours per       estimated
                                        (obligation to respond)                             respondents     respondent       response         burden
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                                                                   Disclosure Burdens
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Sec.   373.4(a)(2) Standard Risk       Disclosure (Mandatory)..  On Occasion............               2               2             5.5              22
 Retention--Horizontal Interest.

[[Page 43656]]

 
Sec.   373.4(a)(1) Standard Risk       Disclosure (Mandatory)..  On Occasion............               2               2             2.0               8
 Retention--Vertical Interest.
Sec.   373.4(a)(3) Standard Risk       Disclosure (Mandatory)..  On Occasion............               1               1             7.5               8
 Retention--Combined Interest *.
Sec.   373.5 Revolving Master Trusts.  Disclosure (Mandatory)..  On Occasion............               3               2             7.0              42
Sec.   373.6 Eligible ABCP Conduits *  Disclosure (Mandatory)..  On Occasion............               1               1             3.0               3
Sec.   373.7 Commercial MBS *........  Disclosure (Mandatory)..  On Occasion............               1               1           20.75              21
Sec.   373.10 Qualified Tender Option  Disclosure (Mandatory)..  On Occasion............               1               1             6.0               6
 Bonds *.
Sec.   373.11 Allocation of Risk       Disclosure (Mandatory)..  On Occasion............               1               1             2.5               3
 Retention to an Originator *.
Sec.   373.13 Exemption for Qualified  Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 Residential Mortgages *.
Sec.   373.15 Exemption for            Disclosure (Mandatory)..  On Occasion............               1               1            20.0              20
 Qualifying Commercial Loans,
 Commercial Real Estate and
 Automobile Loans *.
Sec.   373.16 Underwriting Standards   Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 for Qualifying Commercial Loans *.
Sec.   373.17 Underwriting Standards   Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 for Qualifying Commercial Real
 Estate Loans *.
Sec.   373.18 Underwriting Standards   Disclosure (Mandatory)..  On Occasion............               1               1            1.25               1
 for Qualifying Automobile Loans *.
                                                                                         ---------------------------------------------------------------
    Disclosure Subtotal..............  ........................  .......................  ..............  ..............  ..............             137
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                                                                  Recordkeeping Burdens
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Sec.   373.4(a)(2) Standard Risk       Recordkeeping             On Occasion............               2               2             0.5               2
 Retention--Horizontal Interest.        (Mandatory).
Sec.   373.4(a)(1) Standard Risk       Recordkeeping             On Occasion............               2               2             0.5               2
 Retention--Vertical Interest.          (Mandatory).
Sec.   373.4(a)(3) Standard Risk       Recordkeeping             On Occasion............               1               1             0.5               1
 Retention--Combined Interest *.        (Mandatory).
Sec.   373.5 Revolving Master Trusts.  Recordkeeping             On Occasion............               3               2             0.5               3
                                        (Mandatory).
Sec.   373.6 Eligible ABCP Conduits *  Recordkeeping             On Occasion............               1               1            20.0              20
                                        (Mandatory).
Sec.   373.7 Commercial MBS *........  Recordkeeping             On Occasion............               1               1            30.0              30
                                        (Mandatory).
Sec.   373.11 Allocation of Risk       Recordkeeping             On Occasion............               1               1            20.0              20
 Retention to an Originator *.          (Mandatory).
Sec.   373.13 Exemption for Qualified  Recordkeeping             On Occasion............               1               1            40.0              40
 Residential Mortgages *.               (Mandatory).
Sec.   373.15 Exemption for            Recordkeeping             On Occasion............               1               1             0.5               1
 Qualifying Commercial Loans,           (Mandatory).
 Commercial Real Estate and
 Automobile Loans *.
Sec.   373.16 Underwriting Standards   Recordkeeping             On Occasion............               1               1            40.0              40
 for Qualifying Commercial Loans *.     (Mandatory).
Sec.   373.17 Underwriting Standards   Recordkeeping             On Occasion............               1               1            40.0              40
 for Qualifying Commercial Real         (Mandatory).
 Estate Loans *.
Sec.   373.18 Underwriting Standards   Recordkeeping             On Occasion............               1               1            40.0              40
 for Qualifying Automobile Loans *.     (Mandatory).
                                                                                         ---------------------------------------------------------------
    Recordkeeping Subtotal...........  ........................  .......................  ..............  ..............  ..............             239
                                                                                         ---------------------------------------------------------------
        Total Annual Burden Hours....  ........................  .......................  ..............  ..............  ..............             376
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Source: FDIC.
* There are currently zero estimated respondents for these items however, FDIC is using 1 as a placeholder to preserve the burden estimate in case an
  institution becomes subject to these provisions.


[[Page 43657]]

    2. Title: Minimum Requirements for Appraisal Management Companies
    OMB Number: 3064-0195.
    Form Number: None.
    Affected Public: Individuals or households; business or other for 
profit.
    General Description of Collection: This information collection 
comprises recordkeeping and disclosure requirements under regulations 
issued by the Federal Deposit Insurance Corporation (FDIC), jointly 
with the Office of the Comptroller of the Currency (OCC), the Board of 
Governors of the Federal Reserve System (FRB), the National Credit 
Union Administration (NCUA), the Bureau of Consumer Financial 
Protection (CFPB), and the Federal Home Finance Agency (FHFA) 
(collectively, ``the agencies'') that implement the minimum 
requirements in Section 1473 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act or the Act) to be applied by 
states \23\ in the registration and supervision of appraisal management 
companies (AMCs). The regulations also implement the requirement in 
Section 1473 of the Dodd-Frank Act for states to report to the 
Appraisal Subcommittee (ASC) of the Federal Financial Institutions 
Examination Council (FFIEC) the information required by the ASC to 
administer the new national registry of appraisal management companies 
(AMC National Registry or Registry). The information collection (IC) 
requirements are established in Part 323 of the FDIC's codified 
regulations.
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    \23\ States include the 50 U.S. states, the District of 
Columbia, and the territories of Guam, Mariana Islands, Puerto Rico, 
and the U.S. Virgin Islands. See 12 CFR 323.9.
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    This information collection was last approved for renewal on 
October 16, 2018 (``2018 ICR'') with a total annual burden estimate of 
421 hours. The 2018 ICR contains two recordkeeping and two reporting IC 
requirements. The FDIC notes that the ASC has issued its own 
regulations or guidance implementing the requirements from the Act 
related to the information to be presented to the ASC by the 
participating states, and submitted an IC related to this reporting 
requirement.\24\ Accordingly, the FDIC is not taking PRA burden for the 
associated IC (previously included as ``State Reporting Requirements to 
Appraisal Subcommittee'') and has removed it from its current ICR 
submission.
---------------------------------------------------------------------------

    \24\ See OMB No. 3139-0009 and the accompanying Supporting 
Statement submitted by the ASC in 2021, available at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202102-3139-001 
(accessed June 2, 2021).
---------------------------------------------------------------------------

    For each of the remaining ICs, FDIC's estimation methodology is to 
compute the total estimated burden hours for that IC and then assign an 
agreed-upon share of the burden hours to each of the regulatory 
agencies (FDIC, FRB, OCC, and FHFA).\25\ The FDIC's estimated annual 
burden is calculated by finding the product of the estimated annual 
number of respondents, the estimated annual number of responses per 
respondent, the estimated burden hours per response and the share of 
the burden attributable to the FDIC.
---------------------------------------------------------------------------

    \25\ The agencies agreed to this burden-sharing methodology in 
2018.
---------------------------------------------------------------------------

    Burden Estimate:

Estimated Number of Respondents

IC #1: Written Notice of Appraiser Removal From Network or Panel

    This IC relates to the written notice of appraiser removal from the 
network or panel pursuant to Sec.  323.10. The number of respondents is 
estimated to be equal to the number of appraisers who leave the 
profession each year multiplied by the estimated percentage of 
appraisers who work for AMCs. The number of appraisers who leave is 
calculated by adding the number of appraisers who are laid off or 
resign to the number of appraisers that have had their licenses revoked 
or surrendered. This estimation methodology is similar to the 
methodology used in the 2018 ICR.
    The number of appraisers who are laid off or resign each year is 
estimated by multiplying the annual rate of ``Total separations'' by 
the number of appraisers for each year. Using data from the Bureau of 
Labor Statistics (BLS) for the finance and insurance industry, shown in 
Table 1 below, the annual rate of ``Total separations'' in 2020 is 25.1 
percent.\26\ The rate for 2020 is within the range of annual rates 
between 2011 and 2020 (20.4 to 26.0 percent, with a median of 24.8 
percent) and is a reasonable estimate for future periods.
---------------------------------------------------------------------------

    \26\ Bureau of Labor Statistics (BLS), ``Job Openings and Labor 
Turnover Survey: Finance and Insurance'' (Series ID: 
JTU520000000000000TSR), available at https://www.bls.gov/data/ 
(accessed June 4, 2021).

 Table 1--Annual Rate of Total Separations for the Finance and Insurance
                      Industry in the United States
------------------------------------------------------------------------
                                                              Value (in
                            Year                                  %)
------------------------------------------------------------------------
2011.......................................................         20.4
2012.......................................................         23.6
2013.......................................................         26.0
2014.......................................................         25.0
2015.......................................................         24.5
2016.......................................................         23.9
2017.......................................................         25.2
2018.......................................................         24.2
2019.......................................................         24.6
2020.......................................................         25.1
------------------------------------------------------------------------
Source: BLS, ``Job Openings and Labor Turnover Survey: Finance and
  Insurance'' (Series ID: JTU520000000000000TSR), available at https://www.bls.gov/data/ (accessed June 4, 2021).

    The number of appraisers is estimated by using the number of 
appraisers in 2020 as a proxy for the level of appraiser employment 
over the next three years.\27\ In 2020, the total number of appraisers 
was 86,000 and is similar to the annual average of 87,000 appraisers 
between 2011 and 2020. Table 2 contains data on annual employment level 
for appraisers in the U.S. between 2011 and 2020:
---------------------------------------------------------------------------

    \27\ BLS, ``Employed--Appraisers and assessors of real estate'' 
(Series ID: LNU02038218), available at https://beta.bls.gov/dataViewer/view/timeseries/LNU02038218 (accessed June 2, 2021).

 Table 2--Annual Level of Employment for Appraisers in the United States
------------------------------------------------------------------------
                                                           Value (in
                         Year                              thousands)
------------------------------------------------------------------------
2011.................................................                 88
2012.................................................                 93
2013.................................................                 98
2014.................................................                 95
2015.................................................                 76
2016.................................................                 73
2017.................................................                 97
2018.................................................                 84
2019.................................................                 84
2020.................................................                 86
------------------------------------------------------------------------
Source: BLS, ``Employed--Appraisers and assessors of real estate''
  (Series ID: LNU02038218), available at https://beta.bls.gov/dataViewer/view/timeseries/LNU02038218 view/timeseries/LNU02038218 (accessed June 2, 2021).

    Given the data summarized above, the number of appraisers who are 
laid off or resign is estimated by multiplying the annual number of 
appraisers by the annual separation rate 86,000 x 25.1 percent = 
21,586.
    As stated above, respondents to this IC also include appraisers who 
have their license revoked or surrendered each year. According to the 
ASC, between January 1, 2010 and December 31, 2019, the counts of 
appraisers who have had their license revoked or surrendered are 804 
and 576,

[[Page 43658]]

respectively.\28\ Therefore, the annual average over the ten-year span 
is 138 licenses revoked or surrendered per year.\29\
---------------------------------------------------------------------------

    \28\ Federal Financial Institution Examination Council: 
Appraisal Subcommittee, ``Annual Report 2019: Appendix E Appraiser 
Disciplinary Actions Reported by State,'' available at https://www.asc.gov/About-the-ASC/AnnualReports.aspx (accessed June 2, 
2021).
    \29\ The average over the ten years is calculated as (1,380, or 
804 + 576) divided by 10.
---------------------------------------------------------------------------

    The number of appraisal removal notices for AMCs is then calculated 
by adding the estimate of appraisers who are laid off or resign to the 
number of appraisers who have their licenses revoked or surrendered, 
and multiplying by the estimated percent of total appraisers who work 
for AMCs. According the Appraisal Institute, approximately 81 percent 
of appraisers are sole proprietors, executives in a firm, or are listed 
as having other forms of employment status.\30\ The remaining 19 
percent of appraisers are employees or staff members in firms such as 
AMCs, appraisal services companies, or other companies. Using 19 
percent as the estimate of the percentage of appraisers who work for 
AMCs, the estimated total number of appraiser removal notices for AMCs 
is 4,130 notices per year, rounded to the nearest ten.\31\ Thus, the 
estimated number of annual respondents for this information collection 
is 4,130. The respondents to this IC are either natural persons or 
AMCs. There are no data available currently on the number of AMCs that 
are considered ``small,'' for the purposes of the Regulatory 
Flexibility Act (RFA), and none of the respondents who are natural 
persons are small for the purposes of the RFA. As a rough 
approximation, to estimate the number of small respondents to this IC 
FDIC uses the percentage of insured depository institutions that are 
small (70 percent) for purposes of the RFA,\32\ and assume that all 
respondents are AMCs. Thus, FDIC estimates that 2,891 respondents to 
this IC are small for purposes of the RFA.\33\ This is likely a 
conservative estimate of small respondents for this information 
collection because not all respondents to this IC are AMCs.
---------------------------------------------------------------------------

    \30\ Appraisal Institute, ``U.S. VALUATION PROFESSION FACT SHEET 
Q1 2019,'' available at https://www.appraisalinstitute.org/file.aspx?DocumentId=2342, (accessed June 2, 2021).
    \31\ The estimated total number of appraiser removal notices for 
AMCs is calculated as (21,586 + 138) x 19 percent, which yields 
4,127.56 notices, or 4,130 after rounding to the nearest ten. The 
estimate is rounded to the nearest ten because 10 percent of the 
respondents will be allocated to FHFA, and OMB systems require whole 
number inputs.
    \32\ December 31, 2020, Call Report data. The Small Business 
Administration (SBA) defines a small banking organization as having 
$600 million or less in assets, where an organization's ``assets are 
determined by averaging the assets reported on its four quarterly 
financial statements for the preceding year.'' See 13 CFR 121.201 
(as amended by 84 FR 34261, effective August 19, 2019). In its 
determination, the ``SBA counts the receipts, employees, or other 
measure of size of the concern whose size is at issue and all of its 
domestic and foreign affiliates.'' See 13 CFR 121.103. Following 
these regulations, the FDIC uses a covered entity's affiliated and 
acquired assets, averaged over the preceding four quarters, to 
determine whether the covered entity is ``small'' for the purposes 
of RFA.
    \33\ The estimated number of small respondents to this IC is 
calculated by multiplying the estimated number of respondents 
(4,130) by 70 percent.
---------------------------------------------------------------------------

    The estimated number of notices per year is lower than the 2018 ICR 
estimate by 5,751 notices.\34\ Two factors contributed to the drop in 
estimated notices: First, the number of appraisers who are laid off or 
resign, and the number that have had their licenses revoked or 
surrendered (138 and 21,586, respectively) are lower than the estimates 
in the 2018 ICR (245 and 23,280); second, there is more granular data 
available to calculate the share of appraisers employed by AMCs, 
appraisal services companies, or other companies. The most recent data 
from the Appraisal Institute contains nine separate categories for 
Appraiser Employment Status, whereas the data available for the 2018 
ICR contained only four categories.\35\ Given the level of aggregation 
available in 2018, the estimate of the share of appraisers in the 2018 
ICR likely included appraisers who are employees or staff members in a 
government or regulatory agency, and individuals with employment 
statuses such as valuation consultant, professor or other academic 
professional, semi-retired or retired, or student. The FDIC notes that 
appraisers or individuals with the five employment statuses listed 
above would not be subject to this IC. Consequently, the share (19 
percent) is much lower than the share (42 percent) used in the 2018 
ICR.
---------------------------------------------------------------------------

    \34\ See OMB No. 3064-0195 and the accompanying Supporting 
Statement submitted by the FDIC in 2018, available at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201804-3064-013 
(accessed June 2, 2021).
    \35\ The most recent data available from the Appraisal Institute 
includes five new categories (employee or staff member in a 
government or regulatory agency, valuation consultant, professor or 
other academic professional, semi-retired or retired, and student), 
in addition to the four categories that match closely to the data in 
the 2018 ICR (employee or staff member of a firm, sole proprietor of 
own business (no employees/partners), executive in a firm, and 
other).
---------------------------------------------------------------------------

IC #2: Develop and Maintain a State Licensing Program

    The second information collection pertains to developing and 
maintaining a state licensing program for AMCs pursuant to Section 
323.14. Section 323.14 requires that each state electing to register 
AMCs for purposes of permitting AMCs to provide appraisal management 
services relating to covered transactions in the state must submit to 
the ASC certain information required under the Rule and any additional 
information required by the ASC concerning AMCs. Thus, this burden 
falls on the states, especially those that have not developed a system 
to register and oversee AMCs. According to the ASC there are four 
states (the territories of Guam, Mariana Islands, Puerto Rico, and the 
U.S. Virgin Islands) that have not developed a system to register and 
oversee AMCs.\36\ Thus, the estimated number of annual respondents for 
this burden is four. Since respondents to this IC are states, none of 
the respondents are considered ``small'' for purposes of the RFA.
---------------------------------------------------------------------------

    \36\ ASC, ``States' Status on Implementation of AMC Programs,'' 
available at https://www.asc.gov/National-Registries/StatesStatus.aspx (accessed June 2, 2021).
---------------------------------------------------------------------------

IC #3: AMC Disclosure Requirements (State-Regulated AMCs) 37
---------------------------------------------------------------------------

    \37\ Based on conversations between the SMEs at the FDIC, FRB, 
OCC, and FHFA, the current ICR splits the IC #3 from the 2018 ICR 
(titled ``AMC Reporting Requirements (State and Federal AMCs) 
(323.12 & 13(c))'') in to two separate ICs, one each for state-
regulated AMCs, and federally regulated AMCs.
---------------------------------------------------------------------------

    The third information collection relates to disclosure requirements 
for AMCs that are not federally regulated AMCs \38\ (``state-regulated 
AMCs'') pursuant to Section 323.12, which involves information sent by 
AMCs to third parties, including states and the AMC National Registry. 
The disclosure requirement for this IC includes registration 
limitations/requirements. According to the National Registry, accessed 
on June 2, 2021, there are 3,854 active AMCs, of which 3,817 are state-
regulated AMCs.\39\ FDIC does not have the data to estimate the change 
in the number of active state-regulated AMCs using historical 
information because the National Registry became available for the 
states to populate in July 2018, and the states' reporting 
characteristics vary over time.\40\ For the

[[Page 43659]]

purposes of this analysis FDIC assumes the number of state-regulated 
AMCs to remain approximately the same over the next three years. Thus, 
the estimated number of annual respondents for this burden is 3,820, 
after rounding up to the nearest ten.\41\ There are no data available 
currently on the number of AMCs that are small. As a rough 
approximation, FDIC uses the percentage of insured depository 
institutions that are small (70 percent) for purposes of the RFA to 
estimate the number of small respondents to this IC. Using this 
methodology FDIC estimates that 2,674 respondents to this IC are small 
for purposes of the RFA.\42\
---------------------------------------------------------------------------

    \38\ Section 323.9 defines a federally regulated AMC as ``an AMC 
that is owned and controlled by an insured depository institution, 
as defined in 12 U.S.C. 1813 and regulated by [the OCC, FRB, or 
FDIC].''
    \39\ ASC nonpublic data, obtained as of June 3, 2021, stored 
under this memo's workpapers on FDIC SharePoint.
    \40\ The most recent Annual Report of the ASC notes that as of 
December 31, 2019, the National Registry contained 1,374 AMCs 
registered from 14 states. As of June 2, 2021, the date I accessed 
the ASC's website, there are 40 states currently populating the 
National Registry. See Federal Financial Institution Examination 
Council: Appraisal Subcommittee, ``Annual Report 2019: Appendix E 
Appraiser Disciplinary Actions Reported by State,'' available at 
https://www.asc.gov/About-the-ASC/AnnualReports.aspx (accessed June 
2, 2021); and ASC, ``States' Status on Implementation of AMC 
Programs,'' available at https://www.asc.gov/National-Registries/StatesStatus.aspx (accessed June 2, 2021).
    \41\ The estimate is rounded to the nearest ten because 10 
percent of the respondents will be allocated to FHFA, and OMB 
systems require whole number inputs.
    \42\ The estimated number of small respondents to this IC is 
calculated by multiplying the estimated number of respondents 
(3,820) by 70 percent.
---------------------------------------------------------------------------

IC #4: AMC Disclosure Requirements (Federally Regulated AMCs)

    The fourth information collection relates to AMC disclosure 
requirements for federally regulated AMCs pursuant to Section 
323.13(c). The disclosure requirements for this IC include registration 
limitations/requirements as well as information regarding the 
determination of the AMC National Registry fee. Of the 3,854 active 
AMCs, 37 are federally regulated AMCs.\43\ FDIC does not have the data 
to estimate the change in the number of active federally regulated AMCs 
using historical information because the National Registry became 
available for the states to populate in July 2018, and the states' 
reporting characteristics vary over time.\44\ For the purposes of this 
analysis FDIC assumes the number of federally regulated AMCs to remain 
approximately the same over the next three years. Thus, the estimated 
number of annual respondents for this burden is 39, after rounding up 
to the nearest multiple of three.\45\ There are no data available 
currently on the number of AMCs that are small. As a rough 
approximation, FDIC uses the percentage of insured depository 
institutions that are small (70 percent) for purposes of the RFA to 
estimate the number of small respondents to this IC. Accordingly, FDIC 
estimates that 27 respondents to this IC are small for purposes of the 
RFA.\46\
---------------------------------------------------------------------------

    \43\ ASC nonpublic data, obtained as of June 3, 2021.
    \44\ See footnote 40.
    \45\ The estimate is rounded to the nearest multiple of three 
because the estimated respondents will be allocated equally to the 
FDIC, FRB, and OCC, and OMB systems require whole number inputs. The 
aggregate estimated number of respondents for IC #3 and IC #4 in the 
current ICR (state-regulated and federally regulated AMCs) is higher 
than the corresponding estimate in the 2018 ICR by 3,659. The 
increase in the number of respondents in the current ICR is 
attributable to the definitive information available from the 
National Registry after 2018, when AMC registration requirements 
became effective.
    \46\ The estimated number of small respondents to this IC is 
calculated by multiplying the estimated number of respondents (39) 
by 70 percent.
---------------------------------------------------------------------------

Estimated Number of Responses

    For IC #1, FDIC assumes an AMC receives one written notice from 
each appraiser \47\ asking to be removed from the appraiser panel, or 
sends one notice to each appraiser removing him/her from the panel. 
Thus, the estimated number of responses per respondent is one.
---------------------------------------------------------------------------

    \47\ In the event of an appraiser's death or incapacitation, the 
AMC receives notice of death or incapacity. See 12 CFR 323.10.
---------------------------------------------------------------------------

    For IC #2, FDIC assumes that states without a registration and 
licensing program would develop and maintain a single program for each 
state. Thus, the estimated number of responses per respondent is one.
    For IC #3 and IC #4, FDIC estimates the number of responses per 
respondent as the number of states that do not have an AMC registration 
program in which the average state-regulated or federally regulated AMC 
operates. As discussed previously, there are four states that currently 
do not have an AMC registration program. As noted in the Supporting 
Statement accompanying the 2018 ICR, a 2013 survey conducted by the 
CFPB found that the average AMC operates in 19.56 states.\48\ Thus, the 
average state-regulated or federally regulated AMC operates in 
approximately 2 states that do not have AMC registration systems: (4 
states/55 states) x 19.56 states = 1.422 states ~ rounded up to 2 
states.
---------------------------------------------------------------------------

    \48\ See OMB No. 3064-0195 and the accompanying Supporting 
Statement submitted by the FDIC in 2018, available at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201804-3064-013 
(accessed June 2, 2021). Additional details on the survey can be 
found in the text accompanying the final rule. See Minimum 
Requirements for Appraisal Management Companies, 80 FR 32,677 (June 
9, 2015).
---------------------------------------------------------------------------

Frequency of Responses

    For IC #1, as discussed above, the AMC receives (or sends) a 
written notice in the event an appraiser no longer serves on the panel. 
Since this event occurs on occasion, FDIC uses ``On Occasion'' as the 
Frequency of Reponses for this IC and assumes a frequency of one.
    For IC #2, FDIC assumes the states that have currently elected not 
to register and oversee AMCs could choose to do so at any time. Since 
this event occurs on occasion, FDIC uses ``On Occasion'' as the 
Frequency of Reponses for this IC and assumes a frequency of one.
    For IC #3 and IC #4, FDIC assumes the state-regulated or federally 
regulated AMCs that are currently operating in a state but have not yet 
registered with that state could choose to do so any time. Since this 
event occurs on occasion, FDIC uses ``On Occasion'' as the Frequency of 
Reponses for this IC and assumes a frequency of one.

Estimated Time per Response

    The 2018 ICR estimate of the hour burden per written notice of 
appraiser removal was 0.08 hours. The FDIC believes this estimate 
remains reasonable and appropriate for this IC and uses 0.08 hours as 
the estimated time per response for IC #1.
    The 2018 ICR estimate of the hour burden for a state without a 
registration program or system to establish one was 40 hours. The FDIC 
believes this estimate remains reasonable and appropriate for this IC 
and uses 40 hours as the estimated time per response for IC #2.
    The 2018 ICR estimate of the hour burden for a state-regulated or 
federally regulated AMC to register in a state in which it operates was 
one hour. The FDIC believes this estimate remains reasonable and 
appropriate for IC #3 and IC #4 and uses one hour each as the estimated 
time per response for IC #3 and IC #4.
    The estimated annual burden, in hours, for the four agencies (FDIC, 
FRB, OCC, and FHFA) is the product of the estimated number of 
respondents per year allocated to each agency, the number of responses 
per respondent per year, and the hours per response, as summarized in 
Tables 3 and 4 below. For IC #1, and IC #3, the estimated respondents 
are split between the four agencies the FDIC, FRB, OCC, and FHFA, at a 
ratio of 3:3:3:1.\49\ Thus, the

[[Page 43660]]

estimated number of annual respondents attributable to the FDIC, FRB, 
and OCC for IC #1, and IC #3 are 1,239, and 1,146 each, respectively. 
Similarly, the estimated number of annual respondents attributable to 
the FHFA for IC #1, and IC #3 are 413, and 382, respectively. For IC 
#2, the estimated number of respondents is split equally amongst the 
four agencies which amounts to one respondent each.\50\ For IC #4, the 
estimated number of respondents (39) is split equally amongst the three 
banking agencies (13 each) as Section 323.9 defines a federally 
regulated AMC as an AMC owned and controlled by an insured depository 
institution, which is regulated by the FDIC, FRB, or OCC. The total 
estimated annual burden for this information collection is 8,208 
hours.\51\ The FDIC, FRB, and OCC will each have equally-sized shares 
of the total estimated burden, with each agency responsible for 2,457 
hours. The FHFA is responsible for the remaining 837 hours.
---------------------------------------------------------------------------

    \49\ The assumption to divide the burden hours between the 
agencies is based on conversations between the subject matter 
experts at the FDIC, FRB, OCC, and FHFA and is based on the 
approximate proportion of AMCs supervised by the three banking 
agencies and evenly split among the three banking agencies. The 
burden hours are shared using the same ratio as the 2018 ICR. The 
ratio does not affect the total amount of burden imposed by the 
collections of information under the joint AMC regulations, and 
relates only to the appropriate distribution among the rulemaking 
agencies of responsibility (under the PRA) for a portion of the 
total estimated burden. See OMB No. 2590-0013 and the accompanying 
Supporting Statement submitted by the FHFA in 2018, available at 
https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201807-2590-002 
(accessed June 16, 2021).
    \50\ For IC #2, the assumption to divide the burden hours 
equally between the agencies is based on conversations between the 
SMEs at the FDIC, FRB, OCC, and FHFA. The burden hours are shared 
using the same ratio as the 2018 ICR.
    \51\ The estimated total annual burden hours of 8,208 is 
obtained by aggregating the estimated total annual burden hours for 
the FDIC, FRB, and OCC in Table 3 (7,371, or 2,457 x 3) with the 
corresponding value for the FHFA in Table 4 (837).
    The estimated hour burden in the current ICR (8,208) higher than 
the 2018 ICR estimate by 6,763 hours. The increase is predominantly 
driven by the increase in the aggregate estimated number of 
respondents to IC #3 and IC #4. As discussed previously, the 
estimated number of respondents in higher than the estimate in the 
2018 ICR due to the definitive information available from the 
National Registry after 2018.

                                         Table 3--Summary of Estimated Annual Burdens--FDIC, FRB, and OCC Share
                                                                   [OMB No. 3064-0195]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Number of                    Annual
             IC description              Type of burden (obligation      Frequency of response      Number of    responses per   Hours per      burden
                                                 to respond)                                       respondents    respondent      response     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
IC #1--Written Notice of Appraiser       Disclosure \52\             On occasion.................        1,239               1         0.08           99
 Removal From Network or Panel (12 CFR    (Mandatory).
 part 323.10).
IC #2--State Recordkeeping Requirements  Recordkeeping (Mandatory).  On occasion.................            1               1           40           40
 (12 CFR parts 323.11(a) and 323.11(b)).
IC #3--AMC Disclosure Requirements       Disclosure \53\             On occasion.................        1,146               2            1        2,292
 (State-regulated AMCs) (12 CFR part      (Mandatory).
 323.12).
IC #4--AMC Disclosure Requirements       Disclosure (Mandatory)....  On occasion.................           13               2            1           26
 (Federally regulated AMCs) (12 CFR
 parts 323.12 and 323.13(c)).
                                                                                                  ------------------------------------------------------
    Total Annual Burden Hours (FDIC,     ..........................  ............................  ...........  ..............  ...........        2,457
     FRB, and OCC Share).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: FDIC.

    3. Title: Joint Standards for Assessing Diversity Policies and 
Practices.
---------------------------------------------------------------------------

    \52\ The 2018 ICR erroneously classified IC #1 as a 
Recordkeeping requirement. The burden for this IC has been changed 
to a Disclosure requirement.
    \53\ The 2018 ICR erroneously classified IC #3 as a Reporting 
requirement. The burden for this IC has been changed to a Disclosure 
requirement.
---------------------------------------------------------------------------

    OMB Number: 3064-00200.
    Form Number: 2710/05--Diversity Self-Assessment (paper form).
    2710/06--Diversity Self-Assessment (electronic form).
    Affected Public: Insured state nonmember banks, and insured state 
savings associations.
    Burden Estimate: FDIC is revising the burden estimates associated 
with this information collection as a result of the update of the 
electronic version of the reporting form. The update will allow 
respondents who have previously completed a diversity self-assessment 
(DSA) to copy and clone their previous submission. This copy/clone 
capability reduces the reporting burden for returning respondents. 
However, it does not change the burden for respondents who fill out the 
electronic form for the first time or respondents who choose an 
alternative method of assessing their diversity policies and practices. 
As such, this ICR revises the IC line items to distinguish between the 
implementation burden incurred by first time respondents from the 
ongoing burden incurred by returning respondents. This ICR also updates 
the respondent count estimates for the other line items in this IC. 
Finally, this ICR adds a line to cover the burdens of non-material (not 
responsive) submissions.
    In October 2020, the FDIC implemented a copy/clone feature in FID-
SA for submissions covering the 2020 reporting period and beyond. This 
feature allows the respondent to pre-populate a new diversity self-
assessment with the information that was previously completed and 
submitted. In addition, the FDIC Office of Minority and Women Inclusion 
(OMWI) have identified several submissions that complete the pro forma 
form but do not provide the FDIC with any material self-assessments. 
With the addition of these two submission types, there are now five 
distinct submission types for this IC:
    1. Paper Form Submissions, which are DSA submissions that use the 
``Diversity Self-Assessment of Financial Institutions Regulated by the 
FDIC'' form and submit the form as an email attachment or via the 
United States Postal Service;
    2. Electronic Form (Implementation) Submissions, which are DSA 
submissions that utilize the online FID-SA application, and the 
financial institution has not previously submitted a DSA;
    3. Electronic Form (Ongoing) Submissions, which are DSA submissions 
that utilize the online FID-

[[Page 43661]]

SA application and are able to use the copy/clone feature in FID-SA;
    4. Free-Form Submissions, which are submissions that do not use the 
``Diversity Self-Assessment of Financial Institutions Regulated by the 
FDIC'' form; and
    5. Non-Material Submissions, which are pro forma submissions that 
do not provide any material self-assessments.

Estimated Number of Respondents and Responses

    Responses to this information collection are voluntary and may be 
submitted by any FDIC-regulated financial institution. As such, 
potential respondents to this IC are all FDIC-regulated financial 
institutions. As of December 31, 2020, the FDIC regulates 3,227 insured 
depository institutions (IDIs). Of these institutions, 2,380 are 
considered small for the purposes of the Regulatory Flexibility Act 
(RFA).
    Respondents submit a single response per year. To estimate the 
number of respondents for this ICR, FDIC reviewed and summarized data 
from historical submissions by FDIC-regulated IDIs covering diversity 
activities in the reporting periods 2016-2019. Submissions were 
categorized as a first-time submission if no prior submission was made 
by the same IDI. Otherwise, the submission was categorized as a repeat 
submission. FDIC did not categorize 2016 submissions since 2016 was the 
first year for which the agency has submission data. A summary of these 
results is provided in Table 1 below:

    Table 1--OMWI Submission Counts, by Submission Type and Reporting
                                 Period
------------------------------------------------------------------------
           Submission type              2016     2017     2018     2019
------------------------------------------------------------------------
All submissions *...................       95      137      133      152
All submissions, small IDIs **......       17       26       26       33
First-time submissions..............  .......       81       42       38
First-time submissions, small IDIs    .......       18       13       16
 **.................................
Repeat submissions..................  .......       56       91      113
Repeat submissions, small IDIs **...  .......        8       13       17
------------------------------------------------------------------------
Source: FDIC OMWI.
* These counts include two financial institutions (CERTs 20399 in 2016
  and 29845 in 2019) that were later found to not be regulated by the
  FDIC during their respective reporting periods. We include them here
  to align the table with other OMWI published analyses (available at
  https://www.fdic.gov/about/diversity/analysisdsa.html).
** IDIs are counted as small if they meet the SBA's definition of
  ``small'' for purposes of RFA as of December 31st in each reporting
  period.

    As Table 1 shows, there were 152 total submissions in 2019, the 
most recent reporting year. This is an increase of approximately 20 
submissions from the previous year. This increase is due to the 
introduction of the online FID-SA application and an expanded outreach 
effort by the FDIC to educate and increase awareness about the DSA. The 
FDIC expects that submission counts will continue to climb upwards due 
to continued expanded outreach efforts as well as the introduction of 
the copy/clone feature to facilitate responses. Based on the historical 
submission counts and the expected rise in submissions, the FDIC 
expects it will receive 195 submissions per year with the majority of 
these submissions using the online FID-SA application. Based on the 
historical trends of first-time and repeating submissions future 
expectations, the FDIC anticipates annual respondent counts of 45 
Electronic Form (Implementation) and 130 Electronic Form (Ongoing) 
submissions.\54\ In addition, the FDIC anticipates annual counts of 
five Free-Form Submissions and ten Non-material Submissions.\55\ 
Finally, FDIC recognizes that some IDIs may prefer to continue 
providing Paper Submissions and anticipate five such submissions per 
year.
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    \54\ Steady state averages of 25 percent for Electronic Form 
(Implementation) and 75 percent for Electronic Form (Ongoing) 
submissions were estimated from historical submissions by FDIC-
regulated IDIs covering diversity activities in 2019, the first 
reporting period for which the online submission was available, and 
multiplied by 175, the anticipated number of annual Electronic Form 
submissions, to arrive at estimates of 45 Electronic Form 
(Implementation) and 130 Electronic Form (Ongoing) submissions. For 
the purposes of annualizing the estimated number of respondents, it 
is assumed that the estimated annual count of respondents for 
Electronic Form (Ongoing) Submissions includes returning Electronic 
Form (Implementation) Submissions from the previous year.
    \55\ The FDIC found 0, 0, and 4 Free-Form submissions and 3, 3, 
and 12 Non-material submissions in 2017, 2018, and 2019, 
respectively. Based on these historical numbers and their 
supervisory experience, the FDIC anticipates approximately 5 Free-
Form and 10 Non-material Submissions going forward.
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Estimated Hourly Burden

    The FDIC estimates that Electronic Form (Implementation) 
Submissions will take seven hours, the same burden that was recorded in 
the Electronic Form line item in the 2020 ICR. For Electronic Form 
(Ongoing) Submissions, the FDIC estimates that the copy/clone feature 
will save respondents an average of four hours per submission, for a 
net burden of three hours per response. For Non-material Submissions, 
the FDIC estimates that the pro forma completion of the submission 
application will take six minutes, or 0.1 hours. The FDIC has reviewed 
the hourly burden estimates for Paper Submissions and for Free-Form 
Submissions and found that the estimates from the 2020 ICR remain 
reasonable and appropriate. Finally, the FDIC estimates that each 
respondent will incur one hour of burden per year, on average, to 
disclose a portion of its submission to the public, in a manner 
reflective of the entity's size and other characteristics.
    The estimated annual burden for each submission type, in hours, is 
the product of the estimated number of respondents, number of responses 
per respondent per year, and time per response, as summarized in Table 
2 below. The total estimated annual burden for this information 
collection is 100, 106 hours, a reduction of 559 hours from the 
previously approved ICR. \56\
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    \56\ The average burden hour estimate across all submission 
types is 4 hours and 8 minutes per response.

[[Page 43662]]



                                                       Table 2--Summary of Estimated Annual Burden
                                                                   [OMB No. 3064-0006]
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                                                                                                             Number of
     Information collection        Type of burden (obligation to        Frequency of         Number of     responses per     Hours per     Annual burden
 description--submission  type                respond)                    response          respondents     respondent       response         (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Joint Standards for Assessing    Reporting (Voluntary)............  Annual..............               5               1               8              40
 Diversity Policies and
 Practices--Paper Form.
Joint Standards for Assessing    Reporting (Voluntary)............  Annual..............              45               1               7             315
 Diversity Policies and
 Practices--Electronic Form
 (Implementation).
Joint Standards for Assessing    Reporting (Voluntary)............  Annual..............             130               1               3             390
 Diversity Policies and
 Practices--Electronic Form
 (Ongoing).
Joint Standards for Assessing    Reporting (Voluntary)............  Annual..............               5               1              12              60
 Diversity Policies and
 Practices--Free-Form.
Joint Standards for Assessing    Reporting (Voluntary)............  Annual..............              10               1             0.1               1
 Diversity Policies and
 Practices--Non-material.
Joint Standards for Assessing    Disclosure (Voluntary)...........  Annual..............             195               1               1             195
 Diversity Policies and
 Practices--Public Disclosure.
                                                                                                                                         ---------------
    Total Annual Burden          .................................  ....................  ..............  ..............  ..............           1,001
     (Hours):.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: FDIC.

General Description of Collection

    Section 342 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010 (the Act) required the Office of the Comptroller 
of the Currency (OCC), Board of Governors of the Federal Reserve System 
(Board), Federal Deposit Insurance Corporation (FDIC), Bureau of 
Consumer Financial Protection (CFPB), National Credit Union 
Administration (NCUA), and Securities and Exchange Commission (SEC) 
(together, Agencies and separately, Agency) each to establish an Office 
of Minority and Women Inclusion (OMWI) to be responsible for all 
matters of the Agency relating to diversity in management, employment, 
and business activities. The Act also instructed each OMWI Director to 
develop standards for assessing the diversity policies and practices of 
entities regulated by the Agency. The Agencies worked together to 
develop joint standards and, on June 10, 2015, they jointly published 
in the Federal Register \57\ the ``Final Interagency Policy Statement 
Establishing Joint Standards for Assessing the Diversity Policies and 
Practices of Entities Regulated by the Agencies'' (Policy Statement).
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    \57\ 80 FR 33016.
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    The Policy Statement contains a ``collection of information'' 
within the meaning of the Paperwork Reduction Act of 1995 (PRA). The 
Policy Statement includes Joint Standards that cover ``Practices to 
Promote Transparency of Organizational Diversity and Inclusion.'' These 
Joint Standards contemplate that a regulated entity is transparent 
about its diversity and inclusion activities by making certain 
information available to the public annually on its website or through 
other appropriate communications methods, in a manner reflective of the 
entity's size and other characteristics. The specific information 
referenced in these standards is: (a) Leadership commitment to 
diversity and inclusion; (b) workforce diversity and employment 
practices; (c) progress toward achieving diversity and inclusion in its 
procurement activities; and (d) opportunities available at the entity 
that promote diversity.
    In addition, the Policy Statement includes Joint Standards that 
address ``Entities' Self-Assessment.'' The Joint Standards for 
Entities' Self-Assessment envision that a regulated entity, in a manner 
reflective of its size and other characteristics, (a) conducts annually 
a voluntary self-assessment of its diversity policies and practices; 
(b) monitors and evaluates its performance under its diversity policies 
and practices on an ongoing basis; (c) provides information pertaining 
to its self-assessment to the OMWI Director of its primary federal 
financial regulator; and (d) publishes information pertaining to its 
efforts with respect to the Joint Standards.
    The collection of information described above is reported to the 
FDIC via the form entitled ``Diversity Self-Assessment of Financial 
Institutions Regulated by the FDIC,'' which can be submitted in paper 
\58\ or electronic format.\59\ To facilitate DSA submissions, the FDIC 
has developed the automated Financial Institution Diversity Self-
Assessment (FID-SA) application. FID-SA provides FDIC-regulated 
financial institutions an easy and efficient way to electronically 
complete the diversity self-assessment; work with multiple users; view 
previous submissions; attach supporting material; and print and save in 
pdf format.\60\
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    \58\ The paper version of the ``Diversity Self-Assessment of 
Financial Institutions Regulated by the FDIC'' form (form number 
2710/05) can be viewed at the following location: https://www.fdic.gov/resources/regulations/federal-register-publications/2021/2021-form-2710-05-diversity-self-assessment-paper-form.pdf.
    \59\ The electronic version of the ``Diversity Self-Assessment 
of Financial Institutions Regulated by the FDIC'' form (form number 
2710/06) can be viewed at the following location: https://www.fdic.gov/resources/regulations/federal-register-publications/2021/2021-form-2710-06-diversity-self-assessment-screen-shots.docx.
    \60\ As described in the FID-SA portal, available at https://www.fdic.gov/about/diversity/fidsaportal.html (accessed May 1, 
2021).
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Request for Comment

    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the FDIC's functions, 
including whether

[[Page 43663]]

the information has practical utility; (b) the accuracy of the 
estimates of the burden of the information collection, including the 
validity of the methodology and assumptions used; (c) ways to enhance 
the quality, utility, and clarity of the information to be collected; 
and (d) ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology. All comments will 
become a matter of public record.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on August 4, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-16963 Filed 8-9-21; 8:45 am]
BILLING CODE 6714-01-P