FRY30_20210526_omb

Supporting Statement for the
Recordkeeping and Disclosure Provisions Associated with Real Estate Appraisal Standards
(FR Y-30; OMB No. 7100-0250)
Summary
The Board of Governors of the Federal Reserve System (Board), under authority
delegated by the Office of Management and Budget (OMB), has extend for three years, with
revision, the Recordkeeping and Disclosure Provisions Associated with Real Estate Appraisal
Standards (FR Y-30; OMB No. 7100-0250).1 Title XI of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C. § 3331 et seq.) requires that, for
federally related transactions, 2 regulated institutions obtain real estate appraisals performed by
certified or licensed appraisers in conformance with uniform appraisal standards. 3 The Board’s
regulations implementing Title XI of FIRREA, contained in the Board’s Regulation Y - Bank
Holding Companies and Change in Bank Control (12 CFR Part 225), include certain
recordkeeping requirements that apply to state member banks (SMBs), bank holding companies
(BHC), and nonbank subsidiaries of BHCs that extend mortgage credit (together, institutions).
The Board and other supervisory agencies also have issued Interagency Appraisal and Evaluation
Guidelines (the Guidelines) that convey supervisory expectations relating to real estate appraisals
and evaluations used to support real estate-related financial transactions.4 These Guidelines
recommend that institutions adopt certain policies and procedures to ensure compliance with
Title XI of FIRREA and Regulation Y.
The Board revised the FR Y-30 to account for the information collections contained in
the Guidelines.

1

This information collection was previously titled Recordkeeping Requirements Associated with Real Estate
Appraisal Standards for Federally Related Transactions Pursuant to Regulations H and Y (FR H-4; OMB No.
7100-0250). Under the proposal, this information collection would no longer include references to section 208.51 of
the Board’s Regulation H (12 CFR 208.51), which is cleared by the Board as part of the Recordkeeping
Requirements Associated with the Real Estate Lending Standards Regulation for State Member Banks (FR H-5;
OMB No. 7100-0261). This change would not affect the burden estimate for this information collection, as prior
burden calculations for the FR H-4 have not included any burden associated with section 208.51 of Regulation H.
Additionally, as described in this supporting statement, the proposal would replace references to section 208.50 of
Regulation H with references to subpart G of Regulation Y as the source for certain appraisal standards for state
member banks. Therefore, the Board has modified the title and agency tracking number of the FR H-4 information
collection to reflect that it will no longer account for provisions of Regulation H.
2
A “federally related transaction” means any real estate-related financial transaction which (A) a federal financial
institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates, and
(B) requires the services of an appraiser. 12 U.S.C. § 3350(4). The term “real estate-related financial transaction”
means any transaction involving (A) the sale, lease, purchase, investment in or exchange of real property, including
interests in property, or the financing thereof, (B) the refinancing of real property or interests in real property, and
(C) the use of real property or interests in property as security for a loan or investment, including mortgage-backed
securities. 12 U.S.C. § 3350(5).
3
The federal financial institutions regulatory agencies that have issued these regulations consist of the Board, Office
of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit
Union Administration (NCUA) (together, the agencies).
4
SR 10-16, available at https://www.federalreserve.gov/boarddocs/srletters/2010/sr1016.htm.

The current estimated total annual burden for the FR Y-30 is 28,184 hours, and would
increase to 28,340 hours. The revisions would result in an increase of 156 hours.
Background and Justification
Title XI of FIRREA directs the federal financial institution regulatory agencies to publish
appraisal rules for federally related transactions within the jurisdiction of each agency. 5 The
Board has implemented this requirement in Regulation Y, subpart G (12 CFR 225.61 - 225.67).6
Regulation Y (1) identifies which real estate-related financial transactions require the services of
an appraiser, (2) prescribes which categories of federally related transactions shall be appraised
by a State certified appraiser and which by a State licensed appraiser, and (3) prescribes
minimum standards for the performance of real estate appraisals in connection with federally
related transactions under the jurisdiction of the Board. In addition, as mandated by Title XI,
Regulation Y requires that all such appraisals be written and that they conform to the Uniform
Standards of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards
Board of the Appraisal Foundation.
The Guidelines clarify the agencies’ real estate appraisal regulations and provide
institutions and examiners with supervisory guidance for a prudent appraisal and evaluation
program. Specifically, the guidelines address appraisal independence, minimum appraisal
standards, and institutions’ policies and procedures for conducting and monitoring appraisals,
evaluations, and related activities; explain what transactions require appraisals and elaborate on
the agencies’ expectations for the development and content of an evaluation; and discuss thirdparty arrangements, compliance programs, and referrals.
Description of Information Collection
Recordkeeping Requirements and Provisions
For federally related transactions, Regulation Y requires institutions to use appraisals
prepared in accordance with minimum appraisal standards in the regulation, including the
USPAP. Generally, these standards prescribe the requirements for analyzing the value of real
property as well as the requirements for reporting such analysis and a value conclusion.
Appraisals must be written and contain sufficient information and analysis to support the
institution’s decision to engage in the transaction and must be subject to appropriate review for
compliance with the USPAP. 7
Under the Guidelines, an institution’s board of directors or its designated committee is
responsible for adopting and reviewing policies and procedures that establish an effective real
5

See 12 U.S.C. § 3339.
The Board’s Regulation H also notes that the standards applicable to appraisals rendered in connection with
Federally related transactions entered into by state member banks are set forth in 12 CFR Part 225, subpart G.
12 CFR 208.50(b). Previous versions of the FR H-4 information collection have referenced section 208.50 of
Regulation H as setting forth the relevant standards for SMBs. In the interest of simplicity and accuracy, this
information collection now refers to Regulation Y as the source of the relevant appraisal standards for all
respondents.
7
12 CFR 225.64(b)-(c).
6

2

estate appraisal and evaluation program. An institution’s collateral valuation program should
establish criteria to select, evaluate, and monitor the performance of appraisers and persons who
perform evaluations. In addition, the Guidelines explain that an institution should establish
policies and procedures for determining when to obtain an appraisal. When an evaluation is used
instead of an appraisal, the Guidelines provide that the evaluation’s content should be
documented in the credit file or reproducible. Furthermore, under the guidelines, an institution
should establish policies and procedures for determining an appropriate collateral valuation
method for a given transaction considering associated risks and should establish criteria for
assessing whether an existing appraisal or evaluation continues to reflect the market value of the
property. An institution should have internal controls for identifying, monitoring, and managing
the risks associated with the appraisal and evaluation program and using a third party
arrangements for valuation services.
Records of appraisals or evaluations or other documentation pertaining to the institutions’
monitoring or updating of property values should be kept in the credit file for the life of the loan.
These records can be either paper or electronic records.
Disclosure Provisions
The Guidelines state that an institution should file a complaint with the appropriate state
appraiser regulatory officials when it suspects that a state certified or licensed appraiser failed to
comply with USPAP or applicable state laws, or engaged in other unethical or unprofessional
conduct.
Respondent Panel
The FR Y-30 panel comprises SMBs, BHCs, and nonbank subsidiaries of BHCs.
Revisions to the FR Y-30
The Board revised the FR Y-30 to account for the information collections contained in
the Guidelines. Although previous OMB supporting statements for the FR H-4, the former
agency tracking number for this clearance, referred to the Guidelines, the Board did not formally
clear these information collections or account for their corresponding burden.
Time Schedule for Information Collection
Bank examiners monitor compliance with the appraisal regulation during examinations
and inspections of Board-regulated institutions. There is no formal reporting form and the
information is not submitted to the Federal Reserve.
Public Availability of Data
No data collected by the Federal Reserve related to this information collection is made
available to the public by the Board.

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Legal Status
The FR Y-30 is authorized pursuant to Title XI of FIRREA (12 U.S.C. § 3339). The
Board also has the authority to require reports from bank holding companies (12 U.S.C. §
1844(c)) and state member banks (12 U.S.C. §§ 248(a) and 324). The obligation to respond is
mandatory. The recordkeeping and disclosure provisions contained in the Guidelines, which is
nonbinding, are voluntary. 8
Because FR Y-30 records would be maintained at each banking organization, the
Freedom of Information Act (FOIA) would only be implicated if the Board obtained such
records as part of the examination or supervision of a banking organization. In the event the
records are obtained by the Board as part of an examination or supervision of a financial
institution, this information may be considered confidential pursuant to exemption 8 of the
FOIA, which protects information contained in “examination, operating, or condition reports”
obtained in the bank supervisory process (5 U.S.C. § 552(b)(8)). In addition, the information
may also be kept confidential under exemption 4 for the FOIA, which protects commercial or
financial information obtained from a person that is privileged or confidential (5 U.S.C. §
552(b)(4)).
Consultation Outside of the Agency
The provisions that are the subject of this information collection were adopted jointly by
the Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation,
Office of Thrift Supervision, and National Credit Union Administration. There has been no
consultation outside the Federal Reserve System regarding this proposal to extend the FR Y-30,
with revision.
Public Comments
On October 14, 2020, the Board published an initial notice in the Federal Register
(85 FR 65050) requesting public comment for 60 days on the extension, with revision, of the
FR Y-30. The comment period for this notice expired on December 14, 2020. The Board did not
receive any comments. The Board adopted the extension, with revision, of the FR Y-30 as
originally proposed. On February 16, 2021, the Board published a final notice in the Federal
Register (86 FR 9504).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR Y-30 is 28,184
hours, and would increase to 28,340 hours with the revisions. The Board has used a more
accurate methodology for calculating the burden of the information collection based on its
experience. The Board is using (1) the average number of loans per institution as the frequency
and (2) 5 minutes as the estimated average time per response for the appraisals or evaluations.
These recordkeeping and disclosure provisions represent less than 1 percent of the Board’s total
paperwork burden.
8

See SR 18-5 / CA 18-7: Interagency Statement Clarifying the Role of Supervisory Guidance (September 12, 2018).

4

Estimated
number of
respondents9

FR Y-30
Current
Recordkeeping
SMBs
Sections 208.50 - 208.51
Nonbank subsidiaries of BHCs
Sections 225.61 - 225.67
Current Total
Proposed
Recordkeeping
SMBs
Sections 225.61 - 225.67 and
guidelines
Nonbank subsidiaries of BHCs
Sections 225.61 - 225.67 and
guidelines
Disclosure
SMBs
Guidelines
Nonbank subsidiaries of BHCs
Guidelines
Proposed Total

Annual
frequency

Estimated
average minutes
per response

Estimated
annual burden
hours

740

419

5

25,838

1,126

25

5

2,346
28,184

740

419

5

25,838

1,126

25

5

2,346

740

1

5

62

1,126

1

5

94
28,340

Change

156

The estimated total annual cost to the public for the FR Y-30 is $1,667,084, and would
increase to $1,676,311 with the revisions.10
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.

9

Of these respondents, 607 SMBs and 2 nonbank subsidiaries of BHCs are considered small entities as defined by
the Small Business Administration (i.e., entities with less than $600 million in total assets),
https://www.sba.gov/document/support--table-size-standards. There are no special accommodations given to
mitigate the burden on small institutions.
10
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $20, 45% Financial Managers at
$73, 15% Lawyers at $72, and 10% Chief Executives at $95). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2020, published March 31, 2021, http://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, http://www.bls.gov/soc/.

5

Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for collecting and processing this
information collection is negligible.

6