[Federal Register Volume 83, Number 85 (Wednesday, May 2, 2018)]
[Notices]
[Pages 19285-19288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09324]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0195]


Agency Information Collection Activities: Proposed Collection 
Renewal; Comment Request

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 an 
existing information collection, as required by the Paperwork Reduction 
Act of 1995 (PRA). Currently, the FDIC is soliciting comment on renewal 
of the information collection described below.

DATES: Comments must be submitted on or before July 2, 2018.

ADDRESSES: Interested parties are invited to submit written comments to 
the FDIC by any of the following methods:
     https://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: 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.

[[Page 19286]]

All comments should refer to OMB control number 3064-0195. 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, Counsel, 202-898-3767, 
[email protected], MB-3007, Federal Deposit Insurance Corporation, 550 
17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: 
    Proposal to renew the following currently approved collection of 
information:
    Title: Minimum requirements for appraisal management companies.
    OMB Number: 3064-0195.
    Form Number: None.
    Affected Public: Participating States and Appraisal Management 
Companies that are subsidiaries owned and controlled by insured 
depository institutions.
    Burden Estimate:

                                                                                    Summary of Annual Burden
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                                                                     Estimated       Estimated    Estimated time                           Total annual
                                            Type of burden           number of       number of     per response    Frequency of response     estimated     FDIC, FRB and OCC      FHFA share
                                                                    respondents      responses        (hours)                              burden hours          share
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IC #1--AMC Written Notice of         Record Keeping.............           9,881               1            0,08  On Occasion...........             790  237...............  79
 Appraiser Removal from Network or
 Panel (323.10).
IC #2--State Recordkeeping           Record Keeping.............               5               1              40  On Occasion...........             200  50................  50
 Requirements (323.11(a) & (b).
IC #3--AMC Reporting Requirements    Reporting..................             200               2               1  On Occasion...........             400  120...............  40
 (State and Federal AMCs) (323.12 &
 13(c)).
IC #4--State Reporting Requirements  Reporting..................              55               1               1  On Occasion...........              55  14................  14
 to the Appraisal Sub Committee
 (323.14).
                                                                 -------------------------------------------------------------------------------------------------------------------------------
Total Estimated Annual Burden......  ...........................  ..............  ..............  ..............  ......................           1,445  421 hours.........  183 hours.
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    General Description of Collection: The FDIC, the Office of the 
Comptroller of the Currency (OCC), The Board of Governors of the 
Federal Reserve System (FRB) and the Federal Home Finance Agency (FHFA) 
(collectively, the Agencies) issued regulations to implement the 
requirements of section 1473 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act to be applied by States in the registration and 
supervision of appraisal management companies (AMCs). The regulations 
also implement the requirement in section 1473 of the Dodd-Frank Act 
for States to report to the Appraisal Subcommittee (ASC) of the Federal 
Financial Institutions Examination Council (FFIEC) the information 
required by the Appraisal Subcommittee (ASC) to administer the new 
national registry of appraisal management companies (AMC National 
Registry or Registry). The FDIC's regulation is found at 12 CFR part 
323 (the Regulation) and contains the following PRA recordkeeping and 
reporting requirements:
    AMC Recordkeeping Requirements (IC #1). Section 323.10 of the 
Regulation provides that an appraiser in an AMC's network or panel is 
deemed to remain on the network or panel until: (i) The AMC sends a 
written notice to the appraiser removing the appraiser with an 
explanation; or (ii) receives a written notice from the appraiser 
asking to be removed or a notice of the death or incapacity of the 
appraiser. The AMC would retain these notices in its files.
    State Recordkeeping Requirements (IC #2). States seeking to 
register AMCs must have an AMC registration and supervision program. 
Section 323.11(a) of the Regulation requires each participating State 
to establish and maintain within its appraiser certifying and licensing 
agency a registration and supervision program with the legal authority 
and mechanisms to: (i) Review and approve or deny an application for 
initial registration; (ii) periodically review and renew, or deny 
renewal of, an AMC's registration; (iii) examine an AMC's books and 
records and require the submission of reports, information, and 
documents; (iv) verify an AMC's panel members' certifications or 
licenses; (v) investigate and assess potential violations of laws, 
regulations, or orders; (vi) discipline, suspend, terminate, or deny 
registration renewals of, AMCs that violate laws, regulations, or 
orders; and (vii) report violations of appraisal-related laws, 
regulations, or orders, and disciplinary and enforcement actions to the 
ASC.
    Section 323.11(b) requires each participating State to impose 
requirements on AMCs not regulated by a Federal financial institutions 
regulatory agency nor owned and controlled by an insured depository 
institution to: (i) Register with and be subject to supervision by a 
State appraiser certifying and licensing agency in each State in which 
the AMC operates; (ii) use only State-certified or State-licensed 
appraisers for Federally-regulated transactions in conformity with any 
Federally-regulated transaction regulations; (iii) establish and comply 
with processes and controls reasonably designed to ensure that the AMC, 
in engaging an appraiser, selects an appraiser who is independent of 
the transaction and who has the requisite education, expertise, and 
experience necessary to competently complete the appraisal assignment 
for the particular market and property type; (iv) direct the appraiser 
to perform the assignment in accordance with the Uniform Standards of 
Professional Appraisal Practice; and (v) establish and comply with 
processes and controls reasonably designed to ensure that the AMC 
conducts its appraisal management services in accordance with section 
129E(a)-(i) of the Truth-in-Lending Act.
    AMC Reporting Requirements (IC #3). Section 323.13(c) requires that 
a Federally-regulated AMC report to the State or States in which it 
operates the information required to be submitted by the State pursuant 
to the ASC's policies, including: (i) Information regarding the 
determination of the AMC National

[[Page 19287]]

Registry fee; and (ii) the information listed in section 323.12 of the 
Regulation. Section 323.12 provides that an AMC may not be registered 
by a State or included on the AMC National Registry if such company is 
owned, directly or indirectly, by any person who has had an appraiser 
license or certificate refused, denied, cancelled, surrendered in lieu 
of revocation, or revoked in any State. Each person that owns more than 
10 percent of an AMC is required to submit to a background 
investigation carried out by the State appraiser certifying and 
licensing agency. While section 323.12 does not authorize States to 
conduct background investigations of Federally-regulated AMCs, it would 
allow a State to do so if the Federally-regulated AMC chooses to 
register voluntarily with the State.
    State Reporting Requirements (IC #4). Section 323.14 requires that 
each State electing to register AMCs for purposes of permitting AMCs to 
provide appraisal management services relating to covered transactions 
in the State must submit to the ASC the information concerning such 
AMCs required to be submitted under the Regulation and any additional 
information required by the ASC.
    Burden Estimate Methodology and Assumptions:
    There is no change in the methodology or substance of this 
information collection. For the information collections described 
above, the general methodology is to compute the industry wide burden 
hours for States and appraisal management companies (AMCs) and then 
assign a share of the burden hours to each of the regulatory agencies 
for each information collection. The Agencies are revising their burden 
estimates based on the following assumptions:
    IC #1: AMC Written Notice of Appraiser Removal from Network or 
Panel. The burden for written notices of appraiser removal from a 
network or panel is estimated to be equal to the number of appraisers 
who leave the profession per year multiplied by the estimated 
percentage of appraisers who work for AMCs, then multiplied by burden 
hours per notice. The number of appraisers who leave is calculated by 
adding the number of appraisers who are laid off or resign to the 
number of appraisers that have had their licenses revoked or 
surrendered. The total burden hours are then split between the Federal 
Reserve Board (FRB), the Office of the Comptroller of the Currency 
(OCC), the Federal Deposit Insurance Corporation (FDIC), and the 
Federal Housing Finance Agency (FHFA) in a ratio of 3:3:3:1 in 
accordance with the burden sharing agreement among the Agencies. 
Finally, the burden hours are calculated by multiplying the estimated 
number of written notices of appraiser removal (9,881) by the estimated 
burden per notice (0.08 hours) for a total of 790 burden hours.\1\ As 
previously mentioned, the total burden hours are then split between the 
FDIC, FRB, OCC, and the FHFA such that the FHFA is responsible for 79 
hours and the other three agencies are responsible for 237 hours each.
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    \1\ The ``per notice'' burden estimate of 0.08 hours is 
unchanged from the estimate provided for the currently-approved ICR. 
The subject matter experts at the FDIC do not believe this estimate 
needs to be updated for this renewal.
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    IC #2: Develop and Maintain a State Licensing Program. The burden 
on the States for developing and maintaining an AMC licensing program 
is calculated by multiplying the number of states without a 
registration and licensing program by the hour burden to develop the 
system. The total burden hours are then equally divided among the FDIC, 
FRB, OCC, and FHFA. According to the Appraisal Institute as of July 26, 
2017, there are 5 states that have not developed a system to register 
and oversee AMCs.\2\ The 2015 ICR estimate of the hour burden per state 
without a registration system was 40 hours. The FDIC does not believe 
this estimate needs to be updated for this renewal. Therefore, the 
total hour burden is 200 hours: 5 States x 40 hours/state = 200 hours. 
Finally, the total hour burden is divided among the four agencies such 
that each agency is responsible for 50 burden hours.\3\
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    \2\ Appraisal Institute ``Enacted State AMC Laws''. https://www.appraisalinstitute.org/advocacy/enacted-state-amc-laws1/.
    \3\ The assumption to divide the burden hours between the 
agencies is based on a burden-sharing agreement among the FDIC, FRB, 
OCC, and FHFA. The burden hours are shared in the same ratio as the 
2015 ICR.
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    IC #3: AMC Reporting Requirements (State and Federal AMCs). The 
burden for AMC reporting requirements is calculated by multiplying the 
number of AMCs by the frequency of response then by the burden per 
response. The burden hours are then divided between the FDIC, FRB, OCC, 
and FHFA at a ratio of 3:3:3:1.\4\ FDIC estimates there are 
approximately 400 entities that provide appraisal management services 
as defined by section 323.9(d). Of these 400 entities, FDIC estimates 
approximately 200 entities meet the definition of an AMC as defined by 
section 323.9(c).\5\
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    \4\ Id.
    \5\ The FDIC anticipates more definitive information will become 
available when AMC registration requirements become effective on 
August 10, 2018.
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    The frequency of response is estimated as the number of states that 
do not have an AMC registration program in which the average AMC 
operates.\6\ According to the Appraisal Institute, Five (5) states do 
not have AMC registration or oversight programs.\7\ According to the 
Consumer Financial Protection Bureau (CFPB), the average AMC operates 
in 19.56 states.\8\ Therefore, the average AMC operates in 
approximately 2 states that do not have AMC registration systems: (5 
States/55 states) x 19.56 states = 1.778 states ~ 2 states. Therefore 
the total hour burden for IC #3 is 400 hours: 200 AMCs x 2 states 
(frequency) x 1 hour = 400 hours. The burden hours are then divided 
such that the FDIC, FRB, and OCC are each responsible for 120 burden 
hours and the FHFA is responsible for 40 burden hours.\9\
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    \6\ The number of states includes all U.S. states, territories, 
and districts to include: The Commonwealth of the Northern Mariana 
Islands, the District of Columbia, Guam, Puerto Rico, and the U.S. 
Virgin Islands.
    \7\ Appraisal Institute ``Enacted State AMC Laws''. https://www.appraisalinstitute.org/advocacy/enacted-state-amc-laws1/. Date 
accessed: February 27, 2018.
    \8\ The CFPB conducted a survey of 9 AMCs in 2013 regarding the 
provisions in the rule and the related PRA burden.
    \9\ See footnote 9.
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    IC #4: State Reporting Requirements to the Appraisal Subcommittee. 
The burden hours for State reporting to the ASC are estimated by 
multiplying the number of states by the hour burden per state.\10\ Then 
the burden hours are divided equally among the FDIC, FRB, OCC, and the 
FHFA. The total burden hour for state reporting is 50 hours: 55 states 
x 1 hour/state = 55 hours. This is then equally divided across the 4 
agencies for 14 burden hours each, with rounding.\11\
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    \10\ The number of states includes all U.S. states, territories, 
and districts to include: The Commonwealth of the Northern Mariana 
Islands, the District of Columbia, Guam, Puerto Rico, and the U.S. 
Virgin Islands. The burden estimate of 1 hour per report is 
unchanged from the estimate provided for the currently-approved ICR. 
The subject matter experts at the FDIC do not believe this estimate 
needs to be updated for this renewal.
    \11\ See footnote 9.
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Request for Comment

    Comments are invited on: (a) Whether the collection of information 
is 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 collection, 
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

[[Page 19288]]

burden of the collection 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, on April 27, 2018.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-09324 Filed 5-1-18; 8:45 am]
 BILLING CODE 6714-01-P