Agency Information Collection Activities: Proposed Collection Renewal; Comment Request, 58269-58277 [2021-22944]
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10. An affirmation that the
prospective AFC system operator, and
any entities responsible for operating
other functions of the AFC system under
the control of the AFC system operator,
will comply with all of the applicable
rules as well as applicable enforcement
mechanisms and procedures.
8. Prospective AFC system operators
must file proposals, and any
supplements thereto, with the
Commission using the Commission’s
Electronic Comment Filing System
(ECFS). See Electronic Filing of
Documents in Rulemaking Proceedings,
63 FR 24121 (1998). To be considered
concurrently with the other initial
proposals, proposals must be filed on or
before the date indicated on the first
page of this Public Notice. Prospective
AFC system operators may request
confidential treatment of information
contained in their proposals consistent
with § 0.459 of the Commission’s rules.
Comments regarding the AFC system
proposals should also be filed using
ECFS by the dates indicated on the first
page of this Public Notice. All such
filings should refer to ET Docket 21–
352.
9. Congressional Review Act. The
Commission has determined and
Administrator of the Office of
Information and Regulatory Affairs,
Office of Management and Budget,
concurs, that this rule is ‘‘non-major’’
under the Congressional Review Act, 5.
U.S.C. 804(2). The Commission will
send a copy of this Public Notice to
Congress and the Government
Accountability Office pursuant to 5
U.S.C. 801(a)(1)(A).
Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2021–22765 Filed 10–20–21; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
[OMB No. 3064–0018;–0165;–0183;–0195]
Agency Information Collection
Activities: Proposed Collection
Renewal; Comment Request
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Agency Information Collection
Activities: Submission for OMB Review;
Comment Request.
AGENCY:
The FDIC, as part of its
obligations under the Paperwork
Reduction Act of 1995, invites the
general public and other Federal
agencies to take this opportunity to
comment on the request to renew the
existing information collections
described below (OMB Control No.
3064–0018;–0165;–0183; and–0195).
DATES: Comments must be submitted on
or before November 22, 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/.
SUMMARY:
• Email: comments@fdic.gov. 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 NW building
(located on F Street), on business days
between 7:00 a.m. and 5:00 p.m.
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.
FOR FURTHER INFORMATION CONTACT:
Manny Cabeza, Regulatory Counsel,
202–898–3767, mcabeza@fdic.gov, 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: Application Pursuant to
Section 19 of the Federal Deposit
Insurance Act.
OMB Number: 3064–0018.
Form Number: 6710–07.
Affected Public: Individuals and
FDIC-insured depository institutions.
Burden Estimate:
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SUMMARY OF ANNUAL BURDEN
Information collection description
Type of burden
Obligation to respond
Application Pursuant to Section 19
of the Federal Deposit Insurance
Act.
Reporting ...........
Mandatory ..........
Total Estimated Annual Burden:
1,168 hours.
General Description of Collection:
Section 19 of the Federal Deposit
Insurance Act (FDI), 12 U.S.C. Section
1829, requires the FDIC’s consent prior
to any participation in the affairs of an
insured depository institution by an
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Estimated
number of
respondents
73
individual who has been convicted of
crimes involving dishonesty or breach
of trust, and included drug-related
convictions. To obtain that consent,
certain individuals and insured
depository institutions must submit an
application to the FDIC for approval on
Form FDIC 6710/07.
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Estimated
average
frequency of
response
Estimated
time per
response
(hours)
1
Estimated
annual burden
(hours)
16
1,168
2. Title: Pillar 2 Guidance—Advanced
Capital Framework.
OMB Number: 3064–0165.
Form Number: None.
Affected Public: Insured state
nonmember banks and certain
subsidiaries of these entities.
Burden Estimate:
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SUMMARY OF ANNUAL BURDEN
Estimated
number of
respondents
Information collection description
Type of burden
Obligation to
respond
Pillar 2 Guidance .............................
Recordkeeping ...
Voluntary ............
Total Estimated Annual Burden: 420
hours.
General Description of Collection:
There has been no change in the method
or substance of this information
collection. The number of institutions
subject to the record keeping
requirements has decreased from eight
(8) to two (2). In 2008 the Office of the
Comptroller of the Currency, the Board
of Governors of the Federal Reserve
System and the FDIC issued a
supervisory guidance document related
to the supervisory review process of
capital adequacy (Pillar 2) in connection
with the implementation of the Basel II
Advanced Capital Framework.1
Sections 37, 41, 43 and 46 of the
guidance include possible information
collections. Section 37 provides that
banks should state clearly the definition
of capital used in any aspect of its
internal capital adequacy assessment
process (ICAAP) and document any
changes in the internal definition of
capital. Section 41 provides that banks
should maintain thorough
documentation of its ICAAP. Section 43
specifies that the board of directors
should approve the bank’s ICAAP,
review it on a regular basis and approve
any changes. Section 46 recommends
that boards of directors periodically
review the assessment of overall capital
adequacy and analyze how measures of
internal capital adequacy compare with
other capital measures such as
regulatory or accounting.
3. 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
1 Public
Law 111–2–3, 124 Stat. 1376 (2010).
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1
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
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,
79 FR 77740.
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.
2
3
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Estimated
time per
response
(hours)
Estimated
frequency of
responses
4
105
Estimated
annual burden
(hours)
420
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.
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 §§ 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
4
12 CFR 373.2.
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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
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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 nonCMBS transactions and by Commercial
Mortgage Alert for all CMBS
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
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:
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.
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 §§ _.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 § 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
§§ 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 § 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 §§ 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
9 Estimate of 1,400 offerings per year, minus the
estimate of the number of offerings qualifying for
an exemption under §§ 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).
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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.
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 § 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.
(2) New Methodology
Potential respondents to this
information collection (IC) are FDICsupervised 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
10 For purposes of this calculation, the horizontal,
vertical, and combined horizontal and vertical risk
retention methods under the standard risk retention
option (§ 373.4) are each counted as a separate
option under subpart B of the rule. The other six
are: §§ 373.5; 373.6; 373.7; 373.8; 373.9; and 373.10.
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.
12 The SBA defines a small banking organization
as having $600 million or less in assets, where an
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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 FDICsupervised 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
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 sellerprovided 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.
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:
(a) Two FDIC-supervised IDIs were
involved in deals in which credit risk
was retained through horizontal interest
(§ 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
§ 373.4(a)(2) and the corresponding
reporting requirement in § 373.4(d).18
(b) Two FDIC-supervised IDIs were
involved in deals in which credit risk
was retained through vertical interest
(§ 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
§ 373.4(a)(1) and the corresponding
reporting requirement in § 373.4(d).19
(c) Three FDIC-supervised IDIs were
involved in deals in which credit risk
was retained through revolving master
trusts (§ 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
§ 373.5 and the corresponding reporting
requirement in § 373.5(k)(3).20
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:
§§ 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 FDICsupervised IDI or subsidiary of an FDICsupervised 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
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 § 373.8 Fannie Mae and Freddie Mac
was removed as FDIC has determined
that it is not possible for FDICsupervised IDIs or subsidiaries of FDICsupervised IDIs to be respondents to this
burden item. The disclosure burden
related to § 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
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
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.
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/.
17 With the noted exception of § 373.10 Qualified
Tender Option Bonds, which has no recordkeeping
burden associated with it.
18 4 + 3 + 4 = 11 total deals. 11/(3 years * 2
respondents) = 1.83 responses per respondent
annually.
19 0 + 0 + 13 = 13 total deals. 13/(3 years * 2
respondents) = 2.17 responses per respondent
annually.
20 8 + 6 + 0 = 14 total deals. 14/(3 years * 3
respondents) = 1.56 responses per respondent
annually.
21 As of December 31, 2020.
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 aforementioned change in
methodology.
SUMMARY OF ESTIMATED ANNUAL BURDEN
Type of burden
(obligation to
respond)
IC description
Estimated
number of
respondents
Frequency of
response
Number of
responses/
respondent
Hours per
response
Total annual
estimated
burden
Disclosure Burdens
§ 373.4(a)(2) Standard Risk Retention—Horizontal Interest.
§ 373.4(a)(1) Standard Risk Retention—Vertical Interest.
§ 373.4(a)(3) Standard Risk Retention—Combined Interest *.
§ 373.5 Revolving Master Trusts .....
§ 373.6 Eligible ABCP Conduits * ....
§ 373.7 Commercial MBS * ..............
§ 373.10 Qualified Tender Option
Bonds *.
§ 373.11 Allocation of Risk Retention to an Originator *.
§ 373.13 Exemption for Qualified
Residential Mortgages *.
§ 373.15 Exemption for Qualifying
Commercial Loans, Commercial
Real Estate and Automobile
Loans *.
§ 373.16 Underwriting Standards for
Qualifying Commercial Loans *.
§ 373.17 Underwriting Standards for
Qualifying Commercial Real Estate Loans *.
§ 373.18 Underwriting Standards for
Qualifying Automobile Loans *.
Disclosure Subtotal ..................
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
Disclosure
datory).
(Man-
On Occasion ......
2
2
5.5
22
(Man-
On Occasion ......
2
2
2.0
8
(Man-
On Occasion ......
1
1
7.5
8
(Man-
On Occasion ......
3
2
7.0
42
(Man-
On Occasion ......
1
1
3.0
3
(Man-
On Occasion ......
1
1
20.75
21
(Man-
On Occasion ......
1
1
6.0
6
(Man-
On Occasion ......
1
1
2.5
3
(Man-
On Occasion ......
1
1
1.25
1
(Man-
On Occasion ......
1
1
20.0
20
Disclosure (Mandatory).
Disclosure (Mandatory).
On Occasion ......
1
1
1.25
1
On Occasion ......
1
1
1.25
1
Disclosure (Mandatory).
On Occasion ......
1
1
1.25
1
............................
............................
........................
........................
........................
137
Recordkeeping Burdens
§ 373.4(a)(2) Standard Risk Retention—Horizontal Interest.
§ 373.4(a)(1) Standard Risk Retention—Vertical Interest.
§ 373.4(a)(3) Standard Risk Retention—Combined Interest *.
§ 373.5 Revolving Master Trusts .....
§ 373.6 Eligible ABCP Conduits * ....
jspears on DSK121TN23PROD with NOTICES1
§ 373.7 Commercial MBS * ..............
§ 373.11 Allocation of Risk Retention to an Originator *.
§ 373.13 Exemption for Qualified
Residential Mortgages *.
§ 373.15 Exemption for Qualifying
Commercial Loans, Commercial
Real Estate and Automobile
Loans *.
§ 373.16 Underwriting Standards for
Qualifying Commercial Loans *.
§ 373.17 Underwriting Standards for
Qualifying Commercial Real Estate Loans *.
§ 373.18 Underwriting Standards for
Qualifying Automobile Loans *.
Recordkeeping Subtotal ...........
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Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
On Occasion ......
2
2
0.5
2
On Occasion ......
2
2
0.5
2
On Occasion ......
1
1
0.5
1
On Occasion ......
3
2
0.5
3
On Occasion ......
1
1
20.0
20
On Occasion ......
1
1
30.0
30
On Occasion ......
1
1
20.0
20
On Occasion ......
1
1
40.0
40
On Occasion ......
1
1
0.5
1
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
On Occasion ......
1
1
40.0
40
On Occasion ......
1
1
40.0
40
Recordkeeping
(Mandatory).
On Occasion ......
1
1
40.0
40
............................
............................
........................
........................
........................
239
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SUMMARY OF ESTIMATED ANNUAL BURDEN—Continued
IC description
Total
Annual
Hours.
Burden
Type of burden
(obligation to
respond)
Frequency of
response
Estimated
number of
respondents
Number of
responses/
respondent
Hours per
response
............................
............................
........................
........................
........................
Total annual
estimated
burden
376
jspears on DSK121TN23PROD with NOTICES1
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.
4. 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.
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
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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Jkt 256001
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.
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.
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 § 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
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).
25 The agencies agreed to this burden-sharing
methodology in 2018.
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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.
TABLE 1—ANNUAL RATE OF TOTAL
SEPARATIONS FOR THE FINANCE AND
INSURANCE INDUSTRY IN THE UNITED
STATES
Year
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
......................................
......................................
......................................
......................................
......................................
......................................
......................................
......................................
......................................
......................................
Value
(in %)
20.4
23.6
26.0
25.0
24.5
23.9
25.2
24.2
24.6
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:
TABLE 2— ANNUAL LEVEL OF EMPLOYMENT FOR APPRAISERS IN THE
UNITED STATES
Year
2011 ......................................
2012 ......................................
Value
(in thousands)
88
93
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).
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).
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58275
TABLE 2— ANNUAL LEVEL OF EMPLOY- AMCs is 4,130 notices per year, rounded Employment Status, whereas the data
31
MENT FOR APPRAISERS IN THE to the nearest ten. Thus, the estimated available for the 2018 ICR contained
number
of
annual
respondents for this
only four categories.35 Given the level of
UNITED STATES—Continued
information collection is 4,130. The
respondents to this IC are either natural
Year
persons or AMCs. There are no data
available currently on the number of
2013 ......................................
98 AMCs that are considered ‘‘small,’’ for
2014 ......................................
95 the purposes of the Regulatory
2015 ......................................
76
Flexibility Act (RFA), and none of the
2016 ......................................
73
2017 ......................................
97 respondents who are natural persons are
2018 ......................................
84 small for the purposes of the RFA. As
2019 ......................................
84 a rough approximation, to estimate the
2020 ......................................
86 number of small respondents to this IC
FDIC uses the percentage of insured
Source: BLS, ‘‘Employed—Appraisers and
assessors of real estate’’ (Series ID: depository institutions that are small (70
LNU02038218),
available
at
https:// percent) for purposes of the RFA,32 and
beta.bls.gov/dataViewer/view/timeseries/
assume that all respondents are AMCs.
LNU02038218 (accessed June 2, 2021).
Thus, FDIC estimates that 2,891
Given the data summarized above, the respondents to this IC are small for
number of appraisers who are laid off or purposes of the RFA.33 This is likely a
conservative estimate of small
resign is estimated by multiplying the
respondents for this information
annual number of appraisers by the
collection because not all respondents
annual separation rate 86,000 × 25.1
to this IC are AMCs.
percent = 21,586.
The estimated number of notices per
As stated above, respondents to this
year is lower than the 2018 ICR estimate
IC also include appraisers who have
by 5,751 notices.34 Two factors
their license revoked or surrendered
contributed to the drop in estimated
each year. According to the ASC,
notices: First, the number of appraisers
between January 1, 2010 and December
who are laid off or resign, and the
31, 2019, the counts of appraisers who
number that have had their licenses
have had their license revoked or
revoked or surrendered (138 and 21,586,
surrendered are 804 and 576,
respectively) are lower than the
respectively.28 Therefore, the annual
estimates in the 2018 ICR (245 and
average over the ten-year span is 138
23,280); second, there is more granular
licenses revoked or surrendered per
data available to calculate the share of
year.29
The number of appraisal removal
appraisers employed by AMCs,
notices for AMCs is then calculated by
appraisal services companies, or other
adding the estimate of appraisers who
companies. The most recent data from
are laid off or resign to the number of
the Appraisal Institute contains nine
appraisers who have their licenses
separate categories for Appraiser
revoked or surrendered, and
31 The estimated total number of appraiser
multiplying by the estimated percent of
removal notices for AMCs is calculated as (21,586
total appraisers who work for AMCs.
+ 138) × 19 percent, which yields 4,127.56 notices,
According the Appraisal Institute,
or 4,130 after rounding to the nearest ten. The
approximately 81 percent of appraisers
estimate is rounded to the nearest ten because 10
percent of the respondents will be allocated to
are sole proprietors, executives in a
FHFA, and OMB systems require whole number
firm, or are listed as having other forms
inputs.
of employment status.30 The remaining
32 December 31, 2020, Call Report data. The
19 percent of appraisers are employees
Small Business Administration (SBA) defines a
or staff members in firms such as AMCs, small banking organization as having $600 million
or less in assets, where an organization’s ‘‘assets are
appraisal services companies, or other
determined by averaging the assets reported on its
companies. Using 19 percent as the
four quarterly financial statements for the preceding
estimate of the percentage of appraisers
year.’’ See 13 CFR 121.201 (as amended by 84 FR
who work for AMCs, the estimated total 34261, effective August 19, 2019). In its
number of appraiser removal notices for determination, the ‘‘SBA counts the receipts,
Value
(in thousands)
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.
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).
jspears on DSK121TN23PROD with NOTICES1
28
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Jkt 256001
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.
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).
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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, semiretired 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.
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 § 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.
IC #3: AMC Disclosure Requirements
(State-regulated AMCs) 37
The third information collection
relates to disclosure requirements for
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).
36 ASC, ‘‘States’ Status on Implementation of
AMC Programs,’’ available at https://www.asc.gov/
National-Registries/StatesStatus.aspx (accessed
June 2, 2021).
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)
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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
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
jspears on DSK121TN23PROD with NOTICES1
IC #4: AMC Disclosure Requirements
(Federally regulated AMCs)
The fourth information collection
relates to AMC disclosure requirements
(323.12 & 13(c))’’) in to two separate ICs, one each
for state-regulated AMCs, and federally regulated
AMCs.
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.
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17:35 Oct 20, 2021
Jkt 256001
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
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.
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.
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.
47 In the event of an appraiser’s death or
incapacitation, the AMC receives notice of death or
incapacity. See 12 CFR 323.10.
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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) × 19.56 states = 1.422 states ∼
rounded up to 2 states.
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
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).
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Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
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
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 § 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 equallysized shares of the total estimated
burden, with each agency responsible
for 2,457 hours. The FHFA is
responsible for the remaining 837 hours.
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
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
TABLE 3—SUMMARY OF ESTIMATED ANNUAL BURDENS—FDIC, FRB, AND OCC SHARE
[OMB No. 3064–0195]
Type of burden
(obligation to
respond)
IC Description
IC #1—Written Notice of Appraiser
Removal From Network or Panel
(12 CFR part 323.10).
IC #2—State Recordkeeping Requirements
(12
CFR
parts
323.11(a) and 323.11(b)).
IC #3—AMC Disclosure Requirements (State-regulated AMCs)
(12 CFR part 323.12).
IC #4—AMC Disclosure Requirements
(Federally
regulated
AMCs) (12 CFR parts 323.12 and
323.13(c)).
Total Annual Burden Hours
(FDIC, FRB, and OCC
Share):.
Frequency
of response
Number of
responses
per
respondent
Number of
respondents
Hours per
response
Annual burden
(hours)
Disclosure 52
(Mandatory).
On occasion .......
1,239
1
0.08
99
Recordkeeping
(Mandatory).
On occasion .......
1
1
40
40
Disclosure 53
(Mandatory).
On occasion .......
1,146
2
1
2,292
Disclosure (Mandatory).
On occasion .......
13
2
1
26
............................
............................
........................
........................
........................
2,457
Source: FDIC.
Comments are invited on: (a) Whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
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 October 15,
2021.
James P. Sheesley,
Assistant Executive Secretary.
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 × 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.
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. 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.
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[FR Doc. 2021–22944 Filed 10–20–21; 8:45 am]
BILLING CODE 6714–01–P
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]]>Agencies
[Federal Register Volume 86, Number 201 (Thursday, October 21, 2021)]
[Notices]
[Pages 58269-58277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22944]
=======================================================================
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FEDERAL DEPOSIT INSURANCE CORPORATION
[OMB No. 3064-0018;-0165;-0183;-0195]
Agency Information Collection Activities: Proposed Collection
Renewal; Comment Request
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Agency Information Collection Activities: Submission for OMB
Review; Comment Request.
-----------------------------------------------------------------------
SUMMARY: The FDIC, as part of its obligations under the Paperwork
Reduction Act of 1995, invites the general public and other Federal
agencies to take this opportunity to comment on the request to renew
the existing information collections described below (OMB Control No.
3064-0018;-0165;-0183; and-0195).
DATES: Comments must be submitted on or before November 22, 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/.
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 NW building (located on F
Street), on business days between 7:00 a.m. and 5:00 p.m.
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.
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: Application Pursuant to Section 19 of the Federal Deposit
Insurance Act.
OMB Number: 3064-0018.
Form Number: 6710-07.
Affected Public: Individuals and FDIC-insured depository
institutions.
Burden Estimate:
Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated
Estimated average Estimated time Estimated
Information collection description Type of burden Obligation to respond number of frequency of per response annual burden
respondents response (hours) (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Application Pursuant to Section 19 of Reporting............... Mandatory.............. 73 1 16 1,168
the Federal Deposit Insurance Act.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Estimated Annual Burden: 1,168 hours.
General Description of Collection: Section 19 of the Federal
Deposit Insurance Act (FDI), 12 U.S.C. Section 1829, requires the
FDIC's consent prior to any participation in the affairs of an insured
depository institution by an individual who has been convicted of
crimes involving dishonesty or breach of trust, and included drug-
related convictions. To obtain that consent, certain individuals and
insured depository institutions must submit an application to the FDIC
for approval on Form FDIC 6710/07.
2. Title: Pillar 2 Guidance--Advanced Capital Framework.
OMB Number: 3064-0165.
Form Number: None.
Affected Public: Insured state nonmember banks and certain
subsidiaries of these entities.
Burden Estimate:
[[Page 58270]]
Summary of Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
Estimated Estimated Estimated time Estimated
Information collection description Type of burden Obligation to respond number of frequency of per response annual burden
respondents responses (hours) (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pillar 2 Guidance.................... Recordkeeping........... Voluntary.............. 1 4 105 420
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Estimated Annual Burden: 420 hours.
General Description of Collection: There has been no change in the
method or substance of this information collection. The number of
institutions subject to the record keeping requirements has decreased
from eight (8) to two (2). In 2008 the Office of the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System and the
FDIC issued a supervisory guidance document related to the supervisory
review process of capital adequacy (Pillar 2) in connection with the
implementation of the Basel II Advanced Capital Framework.1 Sections
37, 41, 43 and 46 of the guidance include possible information
collections. Section 37 provides that banks should state clearly the
definition of capital used in any aspect of its internal capital
adequacy assessment process (ICAAP) and document any changes in the
internal definition of capital. Section 41 provides that banks should
maintain thorough documentation of its ICAAP. Section 43 specifies that
the board of directors should approve the bank's ICAAP, review it on a
regular basis and approve any changes. Section 46 recommends that
boards of directors periodically review the assessment of overall
capital adequacy and analyze how measures of internal capital adequacy
compare with other capital measures such as regulatory or accounting.
3. 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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\4\ 12 CFR 373.2.
---------------------------------------------------------------------------
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 Sec. Sec. 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
[[Page 58271]]
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
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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:
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
(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.
---------------------------------------------------------------------------
\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. Sec. 373.5; 373.6; 373.7; 373.8; 373.9; and 373.10.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
(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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
[[Page 58272]]
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 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.
---------------------------------------------------------------------------
\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/.
---------------------------------------------------------------------------
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:
---------------------------------------------------------------------------
\17\ With the noted exception of Sec. 373.10 Qualified Tender
Option Bonds, which has no recordkeeping burden associated with it.
---------------------------------------------------------------------------
(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\
---------------------------------------------------------------------------
\18\ 4 + 3 + 4 = 11 total deals. 11/(3 years * 2 respondents) =
1.83 responses per respondent annually.
---------------------------------------------------------------------------
(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\
---------------------------------------------------------------------------
\19\ 0 + 0 + 13 = 13 total deals. 13/(3 years * 2 respondents) =
2.17 responses per respondent annually.
---------------------------------------------------------------------------
(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\
---------------------------------------------------------------------------
\20\ 8 + 6 + 0 = 14 total deals. 14/(3 years * 3 respondents) =
1.56 responses per respondent annually.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\22\ The Loan Syndication and Trading Association v. Securities
and Exchange Commission and Board of Governors of the Federal
Reserve System (No. 17-5004).
---------------------------------------------------------------------------
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
[[Page 58273]]
the aforementioned change in methodology.
Summary of Estimated Annual Burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------------------------------------
Disclosure Burdens
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sec. 373.4(a)(2) Standard Risk Disclosure (Mandatory).. On Occasion............ 2 2 5.5 22
Retention--Horizontal Interest.
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
---------------------------------------------------------------
Recordkeeping Burdens
--------------------------------------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------
[[Page 58274]]
Total Annual Burden Hours.... ........................ ....................... .............. .............. .............. 376
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.
4. 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.
---------------------------------------------------------------------------
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
------------------------------------------------------------------------
Year Value (in %)
------------------------------------------------------------------------
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
[[Page 58275]]
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, respectively.\28\ Therefore, the annual average over the ten-
year span is 138 licenses revoked or surrendered per year.\29\
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\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 Sec.
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
[[Page 58276]]
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 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\
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\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
[[Page 58277]]
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 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 Sec. 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.
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\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]
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Number of
IC Description Type of burden Frequency of response Number of responses per Hours per Annual burden
(obligation to respond) respondents respondent response (hours)
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IC #1--Written Notice of Appraiser Disclosure \52\ On occasion............ 1,239 1 0.08 99
Removal From Network or Panel (12 (Mandatory).
CFR part 323.10).
IC #2--State Recordkeeping Recordkeeping On occasion............ 1 1 40 40
Requirements (12 CFR parts 323.11(a) (Mandatory).
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)).
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Total Annual Burden Hours (FDIC, ........................ ....................... .............. .............. .............. 2,457
FRB, and OCC Share):.
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Source: FDIC.
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 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.
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\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. 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.
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Federal Deposit Insurance Corporation.
Dated at Washington, DC, on October 15, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-22944 Filed 10-20-21; 8:45 am]
BILLING CODE 6714-01-P
