[Federal Register Volume 67, Number 213 (Monday, November 4, 2002)]
[Rules and Regulations]
[Page 67102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28044]



[[Page 67102]]

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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 722


Federal Credit Unions; Miscellaneous Technical Amendment

AGENCY: National Credit Union Administration (NCUA).

ACTION: Final rule.

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SUMMARY: The National Credit Union Administration (NCUA) is amending 
its appraisal regulation regarding the transaction value for 
nonresidential loans that require an appraisal from a state-certified 
appraiser. This amendment is technical rather than substantive.

DATES: This rule is effective November 4, 2002.

FOR FURTHER INFORMATION CONTACT: Chrisanthy J. Loizos, Staff Attorney, 
Division of Operations, Office of General Counsel, (703) 518-6540, 
National Credit Union Administration, 1775 Duke Street, Alexandria, VA 
22314-3428.

SUPPLEMENTARY INFORMATION: When adopting the Regulatory Flexibility 
Program in 2001, NCUA amended its appraisal rule to raise the threshold 
for requiring an appraisal for real estate-related financial 
transactions from those over $100,000 to those over $250,000. 66 FR 
58656, 58662, Nov. 23, 2001. NCUA also removed the provision creating a 
different threshold for appraisals related to member business loans. 
Id. The amendment, therefore, raised the appraisal threshold for all 
real estate-related financial transactions, including member business 
loans, to $250,000. The NCUA Board found that the raised appraisal 
threshold for a member business loan was consistent with the regulatory 
provisions adopted by the Federal banking agencies.
    In the 2001 rulemaking, NCUA amended the transaction value 
threshold in paragraph (a)(1), the paragraph that requires certain 
types of transactions to have appraisals. 12 CFR 722.3(a). NCUA did not 
adjust the corresponding amount in paragraph (b)(2), the paragraph that 
determines the type of appraiser for certain nonresidential 
transactions, namely, member business loans. 12 CFR 722.3(b)(2). This 
has caused some confusion. Under paragraph (b)(2), only nonresidential 
transactions with a transaction value over $250,000 require an 
appraisal by a state-certified appraiser. 12 CFR 722.2(e), 722.3(a)(1), 
722.3(b)(2). Some credit unions, however, have read the requirement in 
paragraph (b)(2) as requiring an appraisal for transactions with a 
value over $50,000.
    This amendment conforms the transaction value that triggers the 
requirement for a state-certified appraiser's appraisal in paragraph 
(b)(2) to the transaction value threshold in paragraph (a)(1), which 
initially determines if the rule requires any appraisal. The amendment 
clarifies that a federally insured credit union must have an appraisal 
prepared by a state-certified appraiser for a nonresidential 
transaction if the value of the transaction exceeds $250,000.

Regulatory Procedures

Final Rule Under the Administrative Procedure Act

    The amendment to the final rule is technical rather than 
substantive. NCUA finds good cause that notice and public comment are 
unnecessary under sec. 553(b)(B) of the Administrative Procedure Act 
(APA), 5 U.S.C. 553(b)(B).

Effective Date

    NCUA also finds good cause to dispense with the 30-day delayed 
effective date requirement under sec. 553(d)(3) of the APA. The rule is 
technical rather than substantive. The rule will, therefore, be 
effective immediately upon publication of this notice.

Regulatory Flexibility Act

    An initial regulatory flexibility analysis under the Regulatory 
Flexibility Act is required only when an agency is required to publish 
a general notice of proposed rulemaking for any proposed rule. 5 U.S.C. 
603. As noted previously, NCUA has determined that it is unnecessary to 
publish a notice of proposed rulemaking for this rule. Accordingly, an 
initial regulatory analysis is not required. Moreover, since this final 
rule imposes no new requirements and makes only a technical amendment, 
NCUA has determined and certifies that this rule will not have any 
significant economic impact on a substantial number of small credit 
unions (primarily those under $1 million in assets).

Small Business Regulatory Enforcement Fairness Act

    Title II of the Small Business Regulatory Enforcement Fairness Act 
(SBREFA) of 1996 (Pub. L. 104-121) provides, generally, for 
congressional review of agency rules. A reporting requirement is 
triggered in instances where NCUA issues a final rule as defined by 
Section 551 of the Administrative Procedures Act. 5 U.S.C. 551. The 
Office of Management and Budget has reviewed this rule and has 
determined that for purposes of the Small Business Regulatory 
Enforcement Fairness Act of 1996 it is not a major rule.

Paperwork Reduction Act

    NCUA has determined that the final rule does not increase paperwork 
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.) and regulations of the Office of Management and Budget.

Executive Order 13132 Statement

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their regulatory actions on state and local 
interests. In adherence to fundamental federalism principles, NCUA, an 
independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order. NCUA has determined that 
this final rule does not constitute a policy that has federalism 
implications for purposes of the executive order.

List of Subjects in 12 CFR Part 722

    Credit unions, Mortgages, Reporting and recordkeeping requirements.

    By the National Credit Union Administration Board on October 15, 
2002.
Becky Baker,
Secretary of the Board.

    For the reasons stated in the preamble, NCUA amends 12 CFR chapter 
VII as set forth below:

PART 722--APPRAISALS

    1. The authority citation for part 722 continues to read as 
follows:

    Authority: 12 U.S.C. 1766, 1789, 3339.


Sec.  722.3  [Amended]

    2. Section 722.3(b)(2) is amended by revising the number ``50,000'' 
to read ``250,000.''

[FR Doc. 02-28044 Filed 11-1-02; 8:45 am]
BILLING CODE 7535-01-P