[Federal Register Volume 82, Number 128 (Thursday, July 6, 2017)]
[Notices]
[Pages 31325-31327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14151]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Proposed Collection 
Renewals; Comment Request (3064-0085 & -0120)

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

DATES: Comments must be submitted on or before September 5, 2017.

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/notices.html.
     Email: [email protected]. Include the name and number of 
the collection in the subject line of the message.
     Mail: Manny Cabeza (202-898-3767). Counsel, MB 3007, 
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: Manny Cabeza at the FDIC address noted 
above.

SUPPLEMENTARY INFORMATION: Proposal to renew the following currently 
approved collections of information:
    1. Title: Record Keeping, Reporting and Disclosure Requirements in 
Connection with the Equal Credit Opportunity Act Regulation B.
    OMB Number: 3064-0085.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

[[Page 31326]]



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                                                                                                     Estimated
    Source and burden type         Number of        Annual           Total      Average time per   annual burden
                                  respondents      frequency       responses        response          (hours)
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Credit Reporting History                 3,744             850       3,182,400  2 Minutes.......         106,080
 (1002.10) Reporting.
    Total Reporting...........  ..............  ..............  ..............  ................         106,080
Disclosure for Optional Self-            1,100           2,500       2,750,000  1 Minute........          45,833
 Test (1002.5) Third Party
 Disclosure.
Notifications (1002.9) Third             3,744           1,715       6,420,960  2 Minutes.......         214,032
 Party Disclosure.
Appraisal Report Upon Request            3,744             190         711,360  5 Minutes.......          59,280
 (1002.12(a)(1)) Third Party
 Disclosure.
Notice of Right to Appraisal             3,744           1,650       6,177,600  1 Minute........         102,960
 (1002.14(a)(2)) Third Party
 Disclosure.
    Total Third Party           ..............  ..............  ..............  ................         422.105
     Disclosure.
Record Retention                         3,744             360       1,347,840  1 Minute........          22,464
 (Applications, Actions, Pre-
 Screened
 Solicitations)(1002.12)
 Record Keeping.
Record Retention (Self-                  1,100               1           1,100  2 Hours.........           2,200
 Testing)(1002.12) Record
 Keeping.
Record Retention (Self-Testing             275               1             275  8 Hours.........           2,200
 Self-Correction) (1002.15)
 Record Keeping.
                               ---------------------------------------------------------------------------------
    Total Record Keeping......  ..............  ..............  ..............  ................          26,864
                               ---------------------------------------------------------------------------------
        Total Estimated Annual  ..............  ..............  ..............  ................         555,049
         Burden.
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    General Description of Collection: Regulation B (12 CFR part 1002) 
issued by the Consumer Financial Protection Bureau, prohibits creditors 
from discriminating against applicants on any bases specified by the 
Equal Credit Opportunity Act; imposes, reporting, record keeping and 
disclosure requirements; establishes guidelines for gathering and 
evaluating credit information; and requires creditors to give 
applicants certain written notices.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours is a result of economic 
fluctuation. In particular, the number of respondents has decreased 
while the reporting frequency and the estimated time per response 
remain the same.
    2. Title: Flood Insurance.
    OMB Number: 3064-0120.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate: There is no change in the method or substance of 
the collection. There is an overall reduction in burden hours which is 
the result of (1) economic fluctuation reflected by a decrease in the 
number of FDIC-supervised institutions and (2) a decrease in the number 
of flood insurance policies nationally. In particular, the number of 
respondents and the frequency of response (number of loans) have 
decreased while the hours per response remain the same. FDIC estimates 
total annual burden to be 111,540 hours. To obtain this figure, FDIC 
relied on: (a) Data from the Federal Emergency Management Agency (FEMA) 
as of May 2017; (b) FDIC Call Report data as of March 31, 2017; and (c) 
Federal Reserve Board mortgage data as of March 31, 2017.

                                           Table 1--Burden Calculation
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                                      Share of
               Item                    burden       Hours        Share        Hours        Hours     Total hours
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1. Disclosure to the Borrower.....          50%         0.50          90%         0.45        0.225       25,097
2. Disclosure to the Servicer.....  ...........  ...........  ...........  ...........        0.225       25,097
3. Report to FEMA of a Change in    ...........  ...........          10%         0.05         0.05        5,577
 Servicer.........................
4. Recordkeeping (Bank keeps a              50%         0.50  ...........         0.50         0.50       55,770
 copy of all notifications).......
                                    ...........          1.0  ...........          1.0          1.0      111,540
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Respondents (FDIC supervised banks  ...........  ...........  ...........  ...........  ...........        3,718
 with real estate loans)..........
Frequency (Average no. of real      ...........  ...........  ...........  ...........  ...........           30
 estate loans serviced w/flood
 ins).............................
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    Total burden..................  ...........  ...........  ...........  ...........  ...........      111,540
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Sources: FDIC, FEMA, Federal Reserve Board.

FEMA reported there were 4,983,954 flood insurance policies in effect 
with a total insured value of $1,238,657,149,400.\1\
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    \1\ https://www.fema.gov/flood-insurance-statistics-current-month (accessed June 15, 2017).
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    FDIC Call Report data showed that as of March 31, 2017, there were 
a total of 5,790 FDIC-insured institutions with a total of $4.25 
trillion in 1-4 family; multifamily; nonfarm, nonresidential, and 
agricultural loans secured by real estate. As of March 31, 2017, there 
were 3,718 FDIC-regulated institutions with a total value of about 
$1.19 trillion in these loans. Based on the foregoing, we estimate that 
FDIC-regulated banks hold 27.9% of these assets.
    The Federal Reserve Board reported $14.41 trillion in mortgage debt 
outstanding in the U.S., with $4.63 trillion (32.4%) held by depository

[[Page 31327]]

institutions.\2\ Since this total debt held by banks is close to the 
value of these real estate loans from Call Report data, we have 
confidence that we can meld the data sets for estimation purposes. We 
therefore assume that 32.4% of the value of flood insurance policies 
will be held by U.S. commercial banks: $401 billion.
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    \2\ https://www.federalreserve.gov/econresdata/releases/mortoutstand/mortoutstand20170331.htm (accessed June 15, 2017).
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    In the absence of any data on the number of real estate loans with 
flood insurance at any bank, we resort to apportion 32.4% of the number 
of flood insurance policies (1,614,801) to commercial banks, and 27.9% 
of those to FDIC-regulated institutions (451,177). Because the value of 
property varies greatly between different geographical regions and 
different banks, it is doubtful that this estimation of the number of 
policies is accurate. However, there exists no other reasonable method 
for deriving the number of policies at each bank given available data.
    Next, we apportioned the 451,177 flood insurance policies to each 
FDIC-regulated institution according to its share of real estate loans 
to total real estate loans. The resulting apportionment results in an 
average of 121 policies per bank, and a median of 30 policies per bank. 
Because the average is skewed by the large number of policies at large 
banks, we believe the median is a better measure for calculating burden 
hours.
    Our subject-matter experts (SMEs) for this rule believe that the 
total burden to the public for complying with this rule is 1.0 hours 
per policy. We find four PRA related tasks in this rule: (1) Disclosure 
to Borrowers, (2) Disclosure to Servicers, (3) Reporting to FEMA of 
Changes in Coverage, and (4) Recordkeeping for tasks 1-3 above. We 
assume that Recordkeeping will comprise \1/2\ hour, and the remaining 
\1/2\ is split between the other tasks. We assume that 90% of policies 
will involve a new origination, and 10% of policies will involve a 
change in status. With 3,718 respondents holding a median of 30 
policies and 1 hour of burden per policy, we calculate a total burden 
of 111,540 hours. This burden is apportioned to each task as shown in 
Table 1 above.
    General Description of Collection: Each supervised lending 
institution is currently required to provide a notice of special flood 
hazards to each borrower with a loan secured by a building or mobile 
home located or to be located in an area identified by the Director of 
the Federal Emergency Management Agency as being subject to special 
flood hazards. The Riegle Community Development Act requires that each 
institution also provide a copy of the notice to the servicer of the 
loan (if different from the originating lender).

Request for Comment

    Comments are invited on: (a) Whether the collections of information 
are 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 information collections, 
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 30th day of June, 2017.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2017-14151 Filed 7-5-17; 8:45 am]
BILLING CODE 6714-01-P