[Federal Register Volume 81, Number 66 (Wednesday, April 6, 2016)]
[Notices]
[Pages 19971-19974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07819]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Proposed Collection 
Renewals; Comment Request (3064-0001, -0174, -0188 & -0191)

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice and request for comment.

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SUMMARY: The FDIC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to

[[Page 19972]]

comment on the renewal of existing information collections, as required 
by the Paperwork Reduction Act of 1995. Currently, the FDIC is 
soliciting comment on the renewal of the information collections 
described below.

DATES: Comments must be submitted on or before June 6, 2016.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     http://www.FDIC.gov/regulations/laws/federal/.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Gary A. Kuiper (202.898.3877), Counsel, MB-3016 or 
Manny Cabeza (202.898.3767), Counsel MB-3105, 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 Building (located on F Street), 
on business days between 7:00 a.m. and 5:00 p.m.

All comments should refer to the relevant OMB control number. A copy of 
the comments may also be submitted to the OMB desk officer for the 
FDIC: Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Washington, DC 
20503.

FOR FURTHER INFORMATION CONTACT: Gary Kuiper or Manny Cabeza, at the 
FDIC address above.

SUPPLEMENTARY INFORMATION: 
    Proposal to renew the following currently-approved collections of 
information:
    1. Title: Charter and Federal Deposit Insurance Application.
    OMB Number: 3064-0001.
    Affected Public: Banks or savings associations wishing to become 
FDIC-insured depository institutions.
    Frequency of Response: On occasion.
    Annual Number of Respondents: 143.
    Estimated Time per Response: 125 hours.
    Total Annual Burden: 17,875 hours.
    General Description: The Federal Deposit Insurance Act requires 
financial institutions to apply to the FDIC to obtain deposit 
insurance. This collection provides FDIC with the information needed to 
evaluate the applications.
    2. Title: Interagency Guidance on Funding and Liquidity Risk 
Management.
    OMB Number: 3064-0174.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Frequency of Response: Occasionally. (Paragraph 14); Quarterly 
(Paragraph 20).
    Estimated Number of Respondents: 3,947.
    Burden Estimate:

----------------------------------------------------------------------------------------------------------------
                                                     Number of     Average hours   Responses per
                                                    respondents    per response        year         Total hours
----------------------------------------------------------------------------------------------------------------
Paragraph 14 (Record Keeping)...................  ..............  ..............  ..............  ..............
    Large Institutions (over $20 billion in                   19             720               1          13,680
     assets)....................................
    Mid-size Institutions ($1 to $20 billion in              329             240               1          78,960
     assets)....................................
    Small Institutions (less than $1 billion in            3,599              80               1         287,920
     assets)....................................
Paragraph 14 Subtotal...........................           3,947  ..............  ..............         380,560
Paragraph 20 (Reporting)........................  ..............  ..............  ..............  ..............
    All supervised institutions.................           3,947               4              12         189,456
                                                 ---------------------------------------------------------------
        Total Burden Hours......................  ..............  ..............  ..............         570,016
----------------------------------------------------------------------------------------------------------------

    General Description: The information collection includes reporting 
and recordkeeping requirements related to sound risk management 
principles applicable to insured depository institutions. To enable an 
institution and its supervisor to evaluate the liquidity risk exposure 
of an institution's individual business lines and for the institution 
as a whole, the guidance summarizes principles of sound liquidity risk 
management and advocates the establishment of policies and procedures 
that consider liquidity costs, benefits, and risks in strategic 
planning. In addition, the guidance encourages the use of liquidity 
risk reports that provide detailed and aggregate information on items 
such as cash flow gaps, cash flow projections, assumptions used in cash 
flow projections, asset and funding concentrations, funding 
availability, and early warning or risk indicators. This is intended to 
enable management to assess an institution's sensitivity to changes in 
market conditions, the institution's financial performance, and other 
important risk factors.
    3. Title: Appraisals for Higher-Priced Mortgage Loans.
    OMB Number: 3064-0188.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Frequency of Response: Occasionally.
    Estimated Number of Respondents: 2,428.
    Burden Estimate:

----------------------------------------------------------------------------------------------------------------
                                                     Number of       Number of       Hours per     Total burden
                                                    respondents      responses       response          hours
----------------------------------------------------------------------------------------------------------------
Review and Provide Copy of Full Interior
 Appraisal (reporting burden)
    Non-automated responders....................             809              13             .25           2,629
    Automated responders........................           1,619              13             .08           1,684
                                                 ---------------------------------------------------------------
        Subtotal................................           2,428  ..............  ..............           4,313
Investigate and Verify Requirement for Second
 Appraisal (recordkeeping burden)
    Non-automated responders....................             809               8             .25           1,618
    Automated responders........................           1,619               8             .08           1,036
                                                 ---------------------------------------------------------------
        Subtotal................................           2,428  ..............  ..............           2,654
Conduct and Provide Second Appraisal (reporting
 burden)
    Non-automated responders....................             809               1             .25             202

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    Automated responders........................           1,619               1             .08             129
                                                 ---------------------------------------------------------------
        Subtotal................................           2,428  ..............  ..............             331
                                                 ---------------------------------------------------------------
            Total Annual Burden.................  ..............  ..............  ..............           7,298
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    General Description: Section 1471 of the Dodd-Frank Act established 
a new Truth in Lending (TILA) section 129H, which contains appraisal 
requirements applicable to higher-risk mortgages and prohibits a 
creditor from extending credit in the form of a higher-risk mortgage 
loan to any consumer without meeting those requirements. A higher-risk 
mortgage is defined as a residential mortgage loan secured by a 
principal dwelling with an annual percentage rate (APR) that exceeds 
the average prime offer rate (APOR) for a comparable transaction as of 
the date the interest rate is set by certain enumerated percentage 
point spreads. Additionally, 12 CFR part 1026 allows a creditor to make 
a higher-risk mortgage loan only if certain conditions are met. The 
creditor must obtain a written appraisal performed by a certified or 
licensed appraiser who must conduct a physical property visit of the 
interior of the property. At application, the applicant must be 
provided with a statement regarding the purpose of the appraisal; a 
notice that that the creditor will provide the applicant a copy of any 
written appraisal; and notice that that the applicant may choose to 
have a separate appraisal conducted at the expense of the applicant. 
The creditor must also provide the consumer with a free copy of any 
written appraisals obtained for the transaction at least three business 
days before closing.
    The rule also requires a higher-risk mortgage loan creditor to 
obtain an additional written appraisal, from a different licensed or 
certified appraiser, at no cost to the borrower, if: The higher-risk 
mortgage loan will finance the acquisition of the consumer's principal 
dwelling; the seller acquired the home within 180 days of signing the 
agreement to sell the property; and the consumer is purchasing the home 
for a higher price than the seller paid.
    The additional written appraisal generally must include the 
following information: (1) An analysis of the difference in sale prices 
(i.e., the sale price paid by the seller and the acquisition price of 
the property as set forth in the consumer's purchase agreement); (2) 
Changes in market conditions; and (3) Any improvements made to the 
property between the date of the previous sale and the current sale.
    The information collection requirements are needed to protect 
consumers and promote the safety and soundness of creditors making 
higher-risk mortgage loans. This information is used by creditors to 
evaluate real estate collateral in higher-risk mortgage loan 
transactions and by consumers entering these transactions.
    4. Title: Interagency Guidance on Leveraged Lending.
    OMB Number: 3064-0191.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Frequency of Response: Occasionally.
    Estimated Number of Respondents: 10.
    Burden Estimate:

----------------------------------------------------------------------------------------------------------------
                                                                     Estimated       Estimated       Estimated
                                                     Number of        annual       average hours   total annual
                                                    respondents      frequency     per response    burden hours
----------------------------------------------------------------------------------------------------------------
Implementation Burden
    Recordkeeping burden........................               1               1           986.7           986.7
                                                 ---------------------------------------------------------------
        Total Implementation Burden.............  ..............  ..............  ..............           986.7
Ongoing Burden
    Recordkeeping burden........................               9               1           529.3         4,763.7
                                                 ---------------------------------------------------------------
        Total Ongoing Burden....................  ..............  ..............  ..............         4,763.7
                                                 ---------------------------------------------------------------
        Total PRA Burden........................  ..............  ..............  ..............         5,750.4
----------------------------------------------------------------------------------------------------------------

    General Description: The Guidance describes expectations for the 
sound risk management of leveraged lending activities, including the 
importance for institutions to develop and maintain: (a) Transactions 
structured to reflect a sound business premise, an appropriate capital 
structure, and reasonable cash flow and balance sheet leverage; (b) A 
definition of leveraged lending that facilitates consistent application 
across all business lines; (c) Well-defined underwriting standards; (d) 
A credit limit and concentration framework consistent with the 
institution's risk appetite; (e) Sound MIS that enable management to 
identify, aggregate, and monitor leveraged exposures and comply with 
policy across all business lines; (f) Strong pipeline management 
policies and procedures; and (g) Guidelines for conducting periodic 
portfolio and pipeline stress tests to quantify the potential impact of 
economic and market conditions on the institution's asset quality, 
earnings, liquidity, and capital.
    The guidance outlines high-level principles related to safe and 
sound leveraged lending activities, including underwriting 
considerations, assessing and documenting enterprise value, risk 
management expectations for credits awaiting distribution, stress 
testing expectations and portfolio management, and risk management 
expectations, all of which will be reviewed during supervisory 
examinations to assess how well the financial institution is managing 
its risk. Banks will not be submitting documentation to the FDIC. 
Rather, FDIC examiners will review this documentation during 
examinations to assess a bank's management of its risk.

Request for Comment

    Comments are invited on: (a) Whether the collections of information 
are

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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 collections of information, 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 collections 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.

    Dated at Washington, DC, this 31st day of March 2016.

    Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016-07819 Filed 4-5-16; 8:45 am]
 BILLING CODE 6714-01-P