Final 30-Day Federal Register Notice

FR2 -0183 Credit Risk Retention 86 FR 58269 October 21 2021.pdf

Credit Risk Retention

Final 30-Day Federal Register Notice

OMB: 3064-0183

Document [pdf]

Download: pdf | pdf

58269

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
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:

jspears on DSK121TN23PROD with NOTICES1

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

VerDate Sep<11>2014

17:35 Oct 20, 2021

Jkt 256001

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.

PO 00000

Frm 00023

Fmt 4703

Sfmt 4703

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:

E:\FR\FM\21OCN1.SGM

21OCN1

58270

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

jspears on DSK121TN23PROD with NOTICES1

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).

VerDate Sep<11>2014

17:35 Oct 20, 2021

Jkt 256001

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

PO 00000

Frm 00024

Fmt 4703

Sfmt 4703

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.

E:\FR\FM\21OCN1.SGM

21OCN1

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
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

jspears on DSK121TN23PROD with NOTICES1

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.

VerDate Sep<11>2014

17:35 Oct 20, 2021

Jkt 256001

(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).

PO 00000

Frm 00025

Fmt 4703

Sfmt 4703

58271

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

E:\FR\FM\21OCN1.SGM

Continued

21OCN1

jspears on DSK121TN23PROD with NOTICES1

58272

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

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 http://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).

VerDate Sep<11>2014

17:35 Oct 20, 2021

Jkt 256001

PO 00000

Frm 00026

Fmt 4703

Sfmt 4703

E:\FR\FM\21OCN1.SGM

21OCN1

58273

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
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 ......

5.5

(Man-

On Occasion ......

2.0

(Man-

On Occasion ......

7.5

(Man-

On Occasion ......

7.0

(Man-

On Occasion ......

3.0

(Man-

On Occasion ......

20.75

(Man-

On Occasion ......

6.0

(Man-

On Occasion ......

2.5

(Man-

On Occasion ......

1.25

(Man-

On Occasion ......

20.0

Disclosure (Mandatory).
Disclosure (Mandatory).

On Occasion ......

1.25

On Occasion ......

1.25

Disclosure (Mandatory).

On Occasion ......

1.25

............................

........................

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 ...........

VerDate Sep<11>2014

17:35 Oct 20, 2021

Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).

On Occasion ......

0.5

On Occasion ......

0.5

On Occasion ......

0.5

On Occasion ......

0.5

On Occasion ......

20.0

On Occasion ......

30.0

On Occasion ......

20.0

On Occasion ......

40.0

On Occasion ......

0.5

Recordkeeping
(Mandatory).
Recordkeeping
(Mandatory).

On Occasion ......

40.0

On Occasion ......

40.0

Recordkeeping
(Mandatory).

On Occasion ......

40.0

............................

........................

239

Jkt 256001

PO 00000

Frm 00027

Fmt 4703

Sfmt 4703

E:\FR\FM\21OCN1.SGM

21OCN1

58274

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices
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.

VerDate Sep<11>2014

17:35 Oct 20, 2021

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.

PO 00000

Frm 00028

Fmt 4703

Sfmt 4703

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).

E:\FR\FM\21OCN1.SGM

21OCN1

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

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

VerDate Sep<11>2014

17:35 Oct 20, 2021

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).

PO 00000

Frm 00029

Fmt 4703

Sfmt 4703

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)

E:\FR\FM\21OCN1.SGM

Continued

21OCN1

58276

Federal Register / Vol. 86, No. 201 / Thursday, October 21, 2021 / Notices

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.

VerDate Sep<11>2014

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.

PO 00000

Frm 00030

Fmt 4703

Sfmt 4703

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).

E:\FR\FM\21OCN1.SGM

21OCN1

58277

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

0.08

Recordkeeping
(Mandatory).

On occasion .......

Disclosure 53
(Mandatory).

On occasion .......

1,146

2,292

Disclosure (Mandatory).

On occasion .......

............................

........................

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.

jspears on DSK121TN23PROD with NOTICES1

Request for Comment

VerDate Sep<11>2014

17:35 Oct 20, 2021

Jkt 256001

PO 00000

Frm 00031

Fmt 4703

Sfmt 9990

[FR Doc. 2021–22944 Filed 10–20–21; 8:45 am]
BILLING CODE 6714–01–P

E:\FR\FM\21OCN1.SGM

21OCN1

File Type	application/pdf
File Modified	2021-10-21
File Created	2021-10-21