FRY30_20240519_omb

Supporting Statement for the
Recordkeeping and Disclosure Requirements and 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 extended for three years,
without revision, the Recordkeeping and Disclosure Requirements and Provisions Associated
with Real Estate Appraisal Standards (FR Y-30; OMB No. 7100-0250). 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,1 regulated institutions obtain real estate
appraisals performed by certified or licensed appraisers in conformance with uniform appraisal
standards.2 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.3 These Guidelines recommend that institutions adopt certain policies and
procedures to ensure compliance with Title XI of FIRREA and Regulation Y.
The estimated total annual burden for the FR Y-30 is 28,340 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.4 The
Board has implemented this requirement in Regulation Y, Subpart G (12 CFR 225.61 - 225.67).5
A “federally related transaction” means any real estate-related financial transaction which (1) a federal financial
institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates, and
(2) requires the services of an appraiser. 12 U.S.C. § 3350(4). The term “real estate-related financial transaction”
means any transaction involving (1) the sale, lease, purchase, investment in or exchange of real property, including
interests in property, or the financing thereof, (2) the refinancing of real property or interests in real property, and
(3) 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).
2
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). See 12 U.S.C. § 3350(6).
3
SR 10-16, available at https://www.federalreserve.gov/boarddocs/srletters/2010/sr1016.htm.
4
See 12 U.S.C. § 3339.
5
12 CFR Part 225, Subpart G. 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 208, Subpart E. Previous versions of this information collection have referenced sections 208.50-208.51 of
Regulation H as setting forth the relevant standards for SMBs. In the interest of simplicity and accuracy, this
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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.6
Under the Guidelines, an institution’s board of directors or its designated committee is
responsible for adopting, reviewing, and maintaining policies and procedures that establish an
effective real 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 thirdparty arrangements for valuation services.
information collection now refers to Regulation Y as the source of the relevant appraisal standards for all
respondents.
6
12 CFR 225.64(b)-(c).

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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.
This retention period enables Board supervisors to monitor compliance with Regulation Y. 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.
Frequency and Time Schedule
The FR Y-30 is retained and disclosed on an event-generated basis. Bank examiners
monitor compliance with the appraisal regulation during examinations and inspections of Boardregulated institutions.
Public Availability of Data
There are no data related to this information collection available to the public.
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 BHCs (12 U.S.C. § 1844(c)) and SMBs
(12 U.S.C. §§ 248(a) and 324). Title XI of FIRREA and Regulation Y require that all appraisals
be written and that they conform to the USPAP, which is promulgated by the Appraisal
Standards Board of the Appraisal Foundation.7 Therefore, compliance with the provisions of
Regulation Y that implement these requirements is mandatory. The recordkeeping provisions
contained in the Guidelines, which are nonbinding, are voluntary.
Because FR Y-30 records would be maintained at each banking organization, the
Freedom of Information Act (FOIA) would be implicated only 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 would be protected from disclosure under FOIA exemption 8, which
protects information contained in “examination, operating, or condition reports” obtained in the
bank supervisory process (5 U.S.C. § 552(b)(8)). Information retained pursuant to the
recordkeeping requirements under the FR Y-30 may also be exempt from disclosure pursuant to

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See 12 U.S.C. § 3339; 12 CFR 225.64.

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FOIA exemption 4, if it is nonpublic commercial or financial information which is both
customarily and actually treated as private by the respondent (5 U.S.C. § 552(b)(4)).
Consultation Outside of the Agency
There has been no consultation outside the Federal Reserve System.
Public Comments
On December 26, 2023, the Board published an initial notice in the Federal Register (88
FR 88920) requesting public comment for 60 days on the extension, without revision, of the
FR Y-30. The comment period for this notice expired on February 26, 2024. The Board did not
receive any comments. The Board adopted the extension, without revision, of the FR Y-30 as
originally proposed. On April 29, 2024, the Board published a final notice in the Federal
Register (89 FR 33347).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR Y-30 is 28,340
hours. These recordkeeping and disclosure requirements and provisions represent less than 1
percent of the Board’s total paperwork burden.

FR Y-30
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
Total

Estimated
number of
respondents8

Estimated
annual
frequency

Estimated
average time
per response

Estimated
annual burden
hours

740

419

5 minutes

25,838

1,126

25

5 minutes

2,346

740

1

5 minutes

62

1,126

1

5 minutes

94
28,340

8

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 $850 million in total assets). Size standards effective
March 17, 2023. See https://www.sba.gov/document/support-table-size-standards. There are no special
accommodations given to mitigate the burden on small institutions.

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The estimated total annual cost to the public for the FR Y-30 is $1,979,549.9
Sensitive Questions
This information collection contains no questions of a sensitive nature, as defined by
OMB guidelines.
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.

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Total cost to the responding public is estimated using the following formula: total burden hours, multiplied by the
cost of staffing, where the cost of staffing is calculated as a percent of time for each occupational group multiplied
by the group’s hourly rate and then summed (30% Office & Administrative Support at $23, 45% Financial
Managers at $84, 15% Lawyers at $85, and 10% Chief Executives at $124). Hourly rates for each occupational
group are the (rounded) mean hourly wages from the Bureau of Labor Statistics (BLS), Occupational Employment
and Wages, May 2023, published April 3, 2024, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are
defined using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

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