[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68664-68666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26318]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, without 
revision, the Recordkeeping and Disclosure Requirements Associated with 
Regulation Y for Minimum Requirements for Appraisal Management 
Companies (FR HY-5; OMB No. 7100-0370).

DATES: Comments must be submitted on or before February 1, 2022.

ADDRESSES: You may submit comments, identified by FR HY-5, by any of 
the following methods:
     Agency Website: https://www.federalreserve.gov/. Follow 
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include the OMB 
number or FR number in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, comments will not be edited to remove any confidential 
business information, identifying information, or contact information. 
Public comments may also be viewed electronically or in paper in Room 
146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. 
and 5:00 p.m. on weekdays. For security reasons, the Board requires 
that visitors make an appointment to inspect comments. You may do so by 
calling (202) 452-3684. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. In exercising this delegated authority, the 
Board is directed to take every reasonable step to solicit comment. In 
determining whether to approve a collection of information, the Board 
will consider all comments received from the public and other agencies.

[[Page 68665]]

    During the comment period for this proposal, a copy of the proposed 
PRA OMB submission, including the draft reporting form and 
instructions, supporting statement, and other documentation, will be 
made available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears above. Final 
versions of these documents will be made available at https://www.reginfo.gov/public/do/PRAMain, if approved.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed 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;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, 
Without Revision, the Following Information Collection

    Report title: The Recordkeeping and Disclosure Requirements 
Associated with Regulation Y for Minimum Requirements for Appraisal 
Management Companies.
    Agency form number: FR HY-5.
    OMB control number: 7100-0370.
    Frequency: Event-generated.
    Respondents: The FR HY-5 panel comprises federally regulated and 
state regulated appraisal management companies (AMCs) and U.S. states, 
except that AMCs that oversee 15 or fewer appraisers in a state or less 
than 25 appraisers in two or more states are exempt from these 
recordkeeping and disclosure requirements.
    Estimated number of respondents: Section 225.193(a), 1; Section 
225.192(b), 1,239; Section 225.193(b), 1,146; Section 225.195(c), 13; 
Section 225.196, 51.
    Estimated average hours per response: Section 225.193(a), 40; 
Section 225.192(b), 0.08; Section 225.193(b), 1; Section 225.195(c), 2; 
Section 225.196, 1.
    Estimated annual burden hours: Section 225.193(a), 40; Section 
225.192(b), 99; Section 225.193(b), 2,292; Section 225.195(c), 26; 
Section 225.196, 51.
    General description of report: The Board's recordkeeping and 
disclosure requirements associated with the minimum requirements for 
AMCs are found in sections 225.192, 225.193, 225.195, and 225.196 of 
the Board's Regulation Y, Subpart M.
    Pursuant to section 225.193(a), each participating state must 
establish and maintain within its appraiser certifying and licensing 
agency a registration and supervision program with the legal authority 
and mechanisms to, among other things, review and approve or deny an 
AMC's application for initial registration; require AMCs to submit 
reports, information, and documents; and report violations of 
appraisal-related laws, regulations, or orders, as well as disciplinary 
and enforcement actions, to the Appraisal Subcommittee (ASC) of the 
Federal Financial Institutions Examination Council.
    Section 225.192(b) provides that an appraiser in an AMC's network 
or panel is deemed to remain a part of the AMC's appraiser panel until 
the AMC (1) sends a written notice to the appraiser removing the 
appraiser with an explanation or (2) receives a written notice from the 
appraiser asking to be removed or a notice of the death or incapacity 
of the appraiser. Section 225.193(b) requires each participating state 
to require non-federally regulated AMCs to register with the state 
appraiser certifying and licensing agency.
    Section 225.195(c) requires a federally regulated AMC to 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 regarding the 
determination of the AMC National Registry fee, including information 
relating to certain ownership limitations in the regulation.
    Section 225.196 requires that each participating state submit to 
the ASC the information required to be submitted by the ASC regulations 
or guidance concerning AMCs that operate in the state.
    Legal authorization and confidentiality: The Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 authorizes the FR HY-5. 
Agencies must ``jointly, by rule, establish minimum requirements to be 
applied by a State in the registration of [AMCs].'' \1\ The Agencies 
further must ``jointly promulgate regulations for the reporting of the 
activities of [AMCs] to the [ASC] in determining the payment of the 
annual registry fee.'' \2\ Each participating state with an appraiser 
certifying and licensing agency must also transmit to the ASC ``[1] a 
roster listing individuals who have received a State certification or 
license . . . [2] reports on the issuance and renewal of licenses and 
certifications, sanctions, disciplinary actions, and license and 
certification revocations, and license and certification suspensions on 
a timely basis to the national registry of the [ASC] . . . [3] 
including investigations initiated and disciplinary actions taken.'' 
\3\
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    \1\ 12 U.S.C. 3353(a).
    \2\ 12 U.S.C. 3353(e).
    \3\ 12 U.S.C. 3338(a).
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    The HY-5 reporting and recordkeeping requirements are required to 
obtain a benefit for states because AMCs, unless they are owned and 
controlled by a federally regulated depository institution, are barred 
from providing appraisal management services for federally related 
transactions in a state that has not adopted the minimum AMC 
requirements.\4\ The FR HY-5 recordkeeping and disclosure requirements 
are mandatory for an AMC that is: (1) An AMC that is a subsidiary owned 
and controlled by a financial institution and regulated by a federal 
financial institution regulatory agency,\5\ or (2) is registered with a 
state that has a state appraiser certifying and licensing agency.
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    \4\ 12 U.S.C. 3353.
    \5\ 12 U.S.C. 3353(c).
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    The Federal Reserve does not collect information subject to the HY-
5 recordkeeping and reporting requirements. If information subject to 
the HY-5 requirements is obtained as part of an examination or 
supervision of a financial institution, it may be considered 
confidential under exemption 8 of the Freedom of Information Act 
(FOIA).\6\ Information subject to the HY-5 requirements may also be 
kept confidential under FOIA

[[Page 68666]]

exemption 4 if it is confidential commercial or financial information 
that is both customarily and actually treated as private.\7\
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    \6\ 5 U.S.C. 552(b)(8).
    \7\ 5 U.S.C. 552(b)(4).
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    Consultation outside the agency: The Board, the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
and the Federal Housing Finance Agency collaborated in reassessing and 
confirming their burden estimates and methodologies for this submission 
and discussed potential improvements and evaluations for future 
submissions.

    Board of Governors of the Federal Reserve System, November 29, 
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-26318 Filed 12-2-21; 8:45 am]
BILLING CODE 6210-01-P