[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29959]
[[Page Unknown]]
[Federal Register: December 6, 1994]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
FEDERAL RESERVE SYSTEM
12 CFR Part 225
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 323
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 564
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Part 722
Real Estate Appraisal Exceptions in Major Disaster Areas
AGENCIES: Office of the Comptroller of the Currency, Treasury; Board of
Governors of the Federal Reserve System; Federal Deposit Insurance
Corporation; Office of Thrift Supervision, Treasury; and National
Credit Union Administration.
ACTION: Statement and Order; temporary exceptions.
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SUMMARY: Section 2 of the Depository Institutions Disaster Relief Act
of 1992 (DIDRA), authorizes the Federal financial institutions
regulatory agencies to make exceptions to statutory and regulatory
requirements relating to appraisals for certain transactions. The
exceptions are available for transactions that involve real property in
major disaster areas when the exceptions would facilitate recovery from
the disaster and would be consistent with safety and soundness.
Expiration dates for certain transactions are set out in the
SUPPLEMENTARY INFORMATION section.
DATES: This order is effective on December 6, 1994, and expires for
specific areas on the dates indicated in the SUPPLEMENTARY INFORMATION
section.
FOR FURTHER INFORMATION CONTACT:
Office of the Comptroller of the Currency (OCC)
William C. Kerr, National Bank Examiner or Thomas E. Watson,
National Bank Examiner (202) 874-5170, Office of the Chief National
Bank Examiner; or Peter C. Liebesman, (202) 874-5300, Assistant
Director, Bank Activities and Structure Division, 250 E Street, S.W.,
Washington, DC 20219.
Board of Governors of the Federal Reserve System (Board)
Rhoger H. Pugh, Assistant Director, (202) 728-5883, Stanley B.
Rediger, Supervisory Financial Analyst, (202) 452-2629, Virginia M.
Gibbs, Supervisory Financial Analyst, (202) 452-2521, Division of
Banking Supervision and Regulation; or Deneen Donnley-Evans, Staff
Attorney, (202) 736-5567, Legal Division. For the hearing impaired
only, contact Dorothea Thompson, Telecommunications Device for the Deaf
(TDD), (202) 452-3544, 20th and C Streets, N.W., Washington, DC 20551.
Federal Deposit Insurance Corporation (FDIC)
Robert F. Miailovich, Associate Director, (202) 898-6918, James D.
Leitner, Examination Specialist, (202) 898-6790, Division of
Supervision; or Dirck A. Hargraves, Attorney, (202) 898-7049, Legal
Division, 550 17th Street, N.W., Washington, DC 20429.
Office of Thrift Supervision, Treasury (OTS)
William J. Magrini, Project Manager, (202) 906-5744; Diana Garmus,
Deputy Assistant Director, Corporate Activities, (202) 906-5683; Ellen
J. Sazzman, Attorney, Regulations and Legislation Division, Chief
Counsel's Office, (202) 907-7133; 1700 G Street N.W., Washington, DC
20552.
National Credit Union Administration (NCUA)
Michael J. McKenna, Office of General Counsel, (703) 518-6540, or
Herb Yolles, Office of Examination and Insurance, (703) 518-6360, 1775
Duke Street, Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION:
Statement
Section 2 of DIDRA, 12 U.S.C. 3352, authorizes the agencies to make
exceptions to statutory and regulatory appraisal requirements for
transactions with respect to real property located in areas in which
the President has determined, pursuant to section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5170,
that a major disaster exists, provided that the exception would
facilitate recovery from the major disaster and is consistent with
safety and soundness.1 Such exceptions expire not later than three
years after the date of the President's determination that a major
disaster exists in the area.
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\1\ The agencies must make the exception no later than 30 months
after the date on which the President determines that a major
disaster exists in the area.
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Since October 18, 1994, and continuing, the President has declared
several areas as Major Disaster Areas in certain Texas counties because
of the extensive flooding that occurred and is continuing. The agencies
believe that granting relief from the appraisal requirements for
certain real estate transactions in all such areas affected by this
flooding is consistent with the provisions of the DIDRA.
The agencies have determined that the disruption of real estate
markets in all such affected areas interferes with the ability of
depository institutions to obtain appraisals that comply with statutory
and regulatory requirements and, therefore, may impede institutions in
making loans and engaging in other transactions that would aid in the
reconstruction and rehabilitation of the affected area. Accordingly,
the agencies have determined that recovery from this major disaster
would be facilitated by excepting transactions involving real estate
located in the area directly affected by the flooding from the real
estate appraisal requirements of Title XI of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (FIRREA) as amended, 12
U.S.C. 3331 et seq., and regulations promulgated thereto. This has the
effect of excepting certain transactions from the definition of
``federally related transactions.''
The agencies have also determined that safety and soundness would
not be adversely affected by such exceptions so long as the depository
institution's records relating to any such excepted transaction clearly
indicate either that the property involved was directly affected by the
major disaster or that the transaction would facilitate recovery from
the disaster and there is a binding commitment to fund the transaction
within three years after the date the major disaster was declared. In
addition, the transaction must continue to be subject to review by
management and by the agencies in the course of examination of the
institution under normal supervisory standards relating to safety and
soundness, though the transactions need not comply with the specific
requirements of Title XI of FIRREA and the agencies' appraisal
regulations.
Expiration Dates
Any exceptions provided under the order shall expire not later than
three years after the date on which the President determines, pursuant
to 42 U.S.C. 5170, that a major disaster exists in the area.
Accordingly, exceptions for the major disasters declared due to the
flooding expire on October 18, 1997. Exceptions for any other counties
that have been declared major disasters by the President as a result of
the flooding that began in Texas on or about October 11, 1994, expire
three years after the date of such declaration.
Order
In accordance with section 2 of DIDRA, relief is hereby granted
from the provisions of Title XI of FIRREA and the agencies' appraisal
regulations for any real estate-related financial transaction that
requires the services of an appraiser under those provisions, provided
that:
(1) The transaction involves real estate located in an area that
the President has determined, pursuant to 42 U.S.C. 5170, is a major
disaster area as a result of the October 1994 flooding in Texas, and
has been designated eligible for Federal assistance by the Federal
Emergency Management Agency (FEMA);2
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\2\ The Texas counties affected are listed in the appendix to
this order. The exception would also include any other such areas
that the President subsequently declares are major disaster areas as
a result of the flooding.
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(2)(a) The real property involved was directly affected by the
major disaster, or
(b) The real property involved was not directly affected by the
major disaster but the institution's records explain how the
transaction would facilitate recovery from the disaster;
(3) There is a binding commitment to fund a transaction within
three years after the date the major disaster was declared by the
President; and
(4) The institution retains in its files, for examiner review,
appropriate documentation supporting the property's valuation.
Appendix to Order
Texas: Angelina, Austin, Bastrop, Brazos, Brazoria, Burleson,
Chambers, Fayette, Fort Bend, Galveston, Grimes, Hardin, Harris,
Houston, Jackson, Jasper, Jefferson, Lee, Liberty, Madison, Matagorda,
Montgomery, Nacagdoches, Orange, Polk, San Augustine, San Jacinto,
Shelby, Trinity, Tyler, Victoria, Washington, Waller, Walker, Wharton.
Dated: November 7, 1994.
Eugene A. Ludwig,
Comptroller of the Currency.
Dated: November 23, 1994.
By order of the Board of Governors of the Federal Reserve
System.
William W. Wiles,
Secretary of the Board.
Dated: November 18, 1994.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Acting Executive Secretary.
Dated: November 23, 1994.
By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
Dated: November 8, 1994.
Becky Baker,
Secretary of the Board, National Credit Union Administration.
[FR Doc. 94-29959 Filed 12-5-94; 8:45 am]
BILLING CODES OCC, 4810-33-P (20%), BOARD 6210-01-P (20%), FDIC 6714-
01-P (20%), OTS 6720-01-P (20%), NCUA 7535-01-P (20%)