[Federal Register Volume 84, Number 136 (Tuesday, July 16, 2019)]
[Notices]
[Pages 33943-33944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15035]


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FEDERAL DEPOSIT INSURANCE CORPORATION

[OMB No. 3064-0188]


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 obligations under the Paperwork 
Reduction Act of 1995 (PRA), invites the general public and other 
Federal agencies to take this opportunity to comment on the renewal of 
the existing information collection described below (3064-0188).

DATES: Comments must be submitted on or before September 16, 2019.

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: Jennifer Jones (202-898-6768), 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: Jennifer Jones, Counsel, 202-898-6768, 
[email protected], MB-3105, Federal Deposit Insurance Corporation, 550 
17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Proposal to renew the following currently 
approved collection of information:
    1. Title: Appraisal for Higher-Priced Mortgage Loans.
    OMB Number: 3064-0188.
    Form Number: None.
    Affected Public: Insured state nonmember banks and state savings 
associations.
    Burden Estimate:

                                                       Summary of Annual Burden and Internal Cost
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                                                                                                                                                Total
                                                                              Estimated       Estimated     Estimated                           annual
  Information collection (IC)       Type of burden       Obligation to        number of     frequency of     time per       Frequency of      estimated
          description                                       respond          respondents      responses      response         response          burden
                                                                                                             (hours)                           (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Review and Provide Copy of Full  Third Party          Mandatory..........           1,300              13      0.13662  On Occasion........        2,309
 Interior Appraisal.              Disclosure.
Investigate and Verify           Recordkeeping......  Mandatory..........           1,300               8      0.13662  On Occasion........        1,421
 Requirement for Second
 Appraisal.
Conduct and Provide Second       Third Party          Mandatory..........           1,300               1      0.13662  On Occasion........          178
 Appraisal.                       Disclosure.
rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
    Total Hourly Burden........  ...................  ...................  ..............  ..............  ...........  ...................        3,908
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    General Description of Collection: Section 1471 of the Dodd-Frank 
Act established a new Truth in Lending 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 that exceeds the 
average prime offer rate for a comparable transaction as of the date 
the interest rate is set by certain enumerated percentage point 
spreads.
    To implement this statutory requirement, a final rule was 
promulgated to amend 12 CFR part 1026, Regulation Z by the Bureau of 
Consumer Financial Protection, the Board of Governors of the Federal 
Reserve, the FDIC, the Federal Housing Finance Authority, the National 
Credit Union Association, and the Office of the Comptroller of the 
Currency.
    In particular, the rule requires that, within three days of 
application, a creditor provide a disclosure that informs consumers 
regarding the purpose of the appraisal, that the creditor will provide 
the consumer a copy of any appraisal, and that the consumer may choose 
to have a separate appraisal conducted at the expense of the consumer. 
If a loan meets the definition of a higher-risk mortgage loan, then the 
creditor would be required to obtain a written appraisal prepared by a 
certified or licensed

[[Page 33944]]

appraiser who conducts a physical visit of the interior of the property 
that will secure the transaction, and send a copy of the written 
appraisal to the consumer. To qualify for the safe harbor provided 
under the rule, a creditor is required to review the written appraisal 
as specified in the text of the rule and appendix A. If a loan is 
classified as a higher-risk mortgage loan that will finance the 
acquisition of the property to be mortgaged, and the property was 
acquired within the previous 180 days by the seller at a price that was 
lower than the current sale price, then the creditor is required to 
obtain an additional appraisal. A creditor is required to provide the 
consumer a copy of the appraisal reports performed in connection with 
the loan, without charge, at least days prior to consummation of the 
loan.
    There is no change in the method or substance of the collection. 
The overall reduction in burden hours is the result of economic 
fluctuation. In particular, the number of respondents has decreased 
while the hours per response and frequency of responses have remained 
the same.

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 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 July 11, 2019.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-15035 Filed 7-15-19; 8:45 am]
 BILLING CODE 6714-01-P