[Federal Register Volume 59, Number 53 (Friday, March 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6303]


[[Page Unknown]]

[Federal Register: March 18, 1994]


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FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL

Appraisal Subcommittee
[Docket No. AS94-2]

 

Order Terminating Temporary Waiver Relief for the Commonwealth of 
the Northern Mariana Islands and Request for Comments

AGENCY: Appraisal Subcommittee, Federal Financial Institutions 
Examination Council.

ACTION: Order terminating temporary waiver relief and request for 
comments.

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SUMMARY: The Appraisal Subcommittee (``ASC'') of the Federal Financial 
Institutions Examination Council (``FFIEC'') is issuing an order 
finding that a scarcity of certified or licensed appraisers resulting 
in significant delays in obtaining the services of such appraisers no 
longer exists in the Commonwealth of the Northern Mariana Islands 
(``CNMI''). Therefore, the ASC is terminating the temporary waiver 
relief from State appraiser certification and licensing requirements 
granted CNMI in the ASC's Final Order Granting Commonwealth of the 
Northern Mariana Islands Temporary Waiver Relief (``Relief Order''), 
which was adopted on February 17, 1993, and published at 58 FR 11235 
(February 24, 1993). In accordance with ASC rules and regulations, the 
ASC is requesting comments from interested members of the public on 
this action, and, in the absence of ASC action to the contrary, this 
finding of waiver termination automatically will become final 21 
calendar days after the close of the comment period. The ASC also is 
extending the February 28, 1994 termination date stated in the Relief 
Order to the final termination date specified below.

DATES: Comments must be submitted on or before April 18, 1994. This 
Order will become final on May 9, 1994, unless the ASC takes further 
action to the contrary.

ADDRESSES: Persons wishing to submit written comments should file them 
with Edwin W. Baker, Executive Director, Appraisal Subcommittee, 2100 
Pennsylvania Avenue, NW., suite 200, Washington, DC 20037. All comment 
letters should refer to Docket No. AS94-2. All comments received will 
be available for public inspection and copying at the above location.

FOR FURTHER INFORMATION CONTACT:
Edwin W. Baker, Executive Director, or Marc L. Weinberg, General 
Counsel, at (202) 634-6520, Appraisal Subcommittee, 2100 Pennsylvania 
Avenue, NW., suite 200, Washington, DC 20037.

SUPPLEMENTARY INFORMATION:

I. Background

A. Relevant Statutory Provisions and Regulations

    As of January 1, 1993, Title XI of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (``FIRREA''), as 
amended,\1\ required all federally regulated financial institutions to 
use State licensed or certified real estate appraisers, as appropriate, 
to perform appraisals in federally related transactions. See Section 
1119(a) of Title XI, 12 U.S.C. 3348(a). Thus, each State, territory and 
the District of Columbia (``State'') should have had in place at that 
time its entire regulatory scheme for certifying, licensing and 
supervising real estate appraisers.
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    \1\Pub. L. 101-73, 103 Stat. 183 (1989), as amended by Pub. L. 
102-233, 105 Stat. 1761, 1792, (1991), Pub. L. 102-242, 105 Stat. 
2330, 2386 (1991), Pub. L. 102-550, 106 Stat. 3672 (1992), and Pub. 
L. 102-485, 106 Stat. 2771 (1992).
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    Section 1119(b) of Title XI, 12 U.S.C. 3348(b), provides the ASC 
and the States with a degree of flexibility in dealing with 
extraordinary circumstances that may occur. The Section enables the ASC 
to waive, on a temporary basis and with the FFIEC's concurrence, any 
State certification or licensing requirement on a written finding that: 
(1) ``There is a scarcity of certified or licensed appraisers to 
perform appraisals in connection with federally related transactions''; 
and (2) that the scarcity is ``leading to significant delays in the 
performance of such appraisals.'' Temporary waivers terminate when the 
ASC ``determines that such * * * delays have been eliminated.''
    ASC Rule 1102.2, 12 CFR 1102.2 (1993), requires a State appraiser 
regulatory agency (``State agency'') to address seven informational 
areas when requesting temporary waiver relief. The ASC then must 
publish a notice in the Federal Register respecting the received 
request and must give interested persons 30 calendar days from its 
publication in which to submit written comments. The ASC must grant or 
deny a waiver in whole, in part, or upon specific terms and conditions, 
within 45 calendar days of the date of publication of the notice in the 
Federal Register. The ASC retains significant flexibility in the case 
of an emergency.
    Rule 1102.7, 12 CFR 1102.7 (1993), relates to the termination of 
temporary waiver orders. The ASC at any time may terminate such an 
order on a finding that: (1) The ``significant delays in obtaining'' 
certified or licensed appraiser services ``no longer exist''; or (2) 
the ``terms and conditions of the waiver order are not being 
satisfied.'' The ASC is required under the Rule to publish its waiver 
termination finding in the Federal Register and to solicit public 
comments on the finding for at least 30 calendar days. Absent further 
ASC action, the finding becomes final automatically 21 calendar days 
after the end of the commend period.\2\
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    \2\Rule 1102.6, 12 CFR 1102.6, allows the ASC to initiate an 
extension of temporary waiver relief and enables a State agency to 
request such an extension in writing. Such a request is subject to 
all the requirements of 12 CFR part 1102, subpart A, and therefore 
is processed in the same manner as an initial temporary waiver 
request. CNMI has not requested such an extension.
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B. Procedural Status

    On December 21, 1992, the ASC received a letter of December 16, 
1992, from CNMI's Governor requesting a one-year waiver, from January 1 
through December 31, 1993, of the requirement to use certified or 
licensed real estate appraisers within CNMI. Because of the immediacy 
of the January 1, 1993 implementation date of Title XI and the facts 
represented in the Governor's letter, the ASC, on December 31, 1992, 
issued an order both granting CNMI emergency interim temporary waiver 
relief and soliciting public comment on the request. The interim order 
was published in the Federal Register on January 6, 1993 at 58 FR 551. 
No comments were received, and the ASC approved the issuance of the 
Relief Order on February 17, 1993. The next day, the Chairman of the 
FFIEC, pursuant to delegated authority, concurred in the ASC's 
determination, and the Relief Order was published in the Federal 
Register on February 24, 1993. The ASC found that a scarcity of State 
certified and licensed appraisers existed on CNMI and that significant 
delays in obtaining the services of such appraisers were being 
experienced. Accordingly, the ASC ordered temporary waiver relief for 
CNMI for the period of February 22, 1993, through February 28, 1994, 
subject to three conditions described below.
    During the period of temporary waiver relief, the federally 
regulated lenders specified in Section 1120 of Title XI, 12 U.S.C. 
3349, could use appraisers who are not licensed or certified so long as 
appraisals are performed in a manner that is consistent with the 
appraisal regulations, requirements, guidelines and standards of the 
appropriate Federal financial institutions regulatory agency, as 
defined in section 1122(6) of Title XI, 12 U.S.C. 3350(6).

III. Compliance With the Relief Order

    CNMI, through its Board of Professional Licensing (``Board''), has 
fully complied with the three conditions of the Relief Order. 
Specifically, CNMI has taken appropriate steps during the temporary 
waiver period to alleviate the scarcity of State certified and licensed 
appraisers in CNMI and the significant delays in obtaining the services 
of those appraisers and has provided the ASC the three required 
monitoring reports on a timely basis. In addition, CNMI undertook to 
notify the ASC promptly of any circumstances that might adversely 
affect CNMI's compliance with the Relief Order.
    According to CNMI's monitoring reports and other contacts between 
the ASC and the Board, the Board contracted with a firm on March 26, 
1993, to provide appropriate prelicensure/certification education 
meeting Appraiser Qualification Board standards to persons desiring to 
become CNMI licensed or certified real estate appraisers. As of January 
12, 1994, the Board reported that it has issued credentials to two 
licensed appraisers, one certified residential appraiser and six 
certified general appraisers, and eight more persons have become 
qualified to take the next-scheduled Certified General Real Estate 
Appraiser Examination. CNMI's Board also reported that it has requested 
the same firm to submit a proposal to offer appropriate continuing 
education courses to CNMI licensed or certified appraisers. In short, 
CNMI believes that a scarcity of certified or licensed appraisers 
leading to significant delays in the performance of appraisals in 
connection with federally related transactions no longer exists.

IV. Conclusion

    On the basis of the foregoing, the ASC finds that a scarcity of 
certified or licensed appraisers leading to significant delays in the 
performance of appraisals in connection with federally related 
transactions no longer exists on CNMI. The ASC requests comment on this 
finding for a 30 calendar day period and orders the termination of 
temporary waiver relief to be effective on a final basis 21 calendar 
days after the close of the comment period, absent further ASC action 
in the interim. The ASC also orders an extension of the original 
February 28, 1994 termination date to coincide with the final date of 
temporary waiver termination as determined under this Order. 
Thereafter, federally regulated lenders will be required to use real 
estate appraisers who are temporarily or permanently licensed or 
certified by CNMI to perform appraisals in connection with federally 
related transactions.


    Dated: March 10, 1994.

    By the Appraisal Subcommittee of the Federal Financial 
Institutions Examination Council.
Diana L. Garmus,
Acting Chairperson.
[FR Doc. 94-6303 Filed 3-17-94; 8:45 am]
BILLING CODE 6210-01-M