[Federal Register Volume 89, Number 49 (Tuesday, March 12, 2024)]
[Rules and Regulations]
[Pages 17710-17711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05159]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 34

[Docket ID OCC-2024-0002]

FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Docket No. OP-1829]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 323

RIN 3064-ZA41

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 722 and 741


Temporary Exceptions to FIRREA Appraisal Requirements in Maui 
County as Affected by Hawaii Wildfires

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); and National Credit Union 
Administration (NCUA), collectively referred to as the agencies.

ACTION: Statement and order; temporary exceptions.

-----------------------------------------------------------------------

SUMMARY: The Depository Institutions Disaster Relief Act of 1992 
(DIDRA) authorizes the agencies to make exceptions to statutory and 
regulatory appraisal requirements under Title XI of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) 
relating to transactions involving real property located within an area 
in a state or territory declared to be a major disaster by the 
President. In this statement and order, the agencies exercise their 
authority to grant temporary exceptions to the FIRREA appraisal 
requirements for real estate-related financial transactions, provided 
certain criteria are met, in an area in the State of Hawaii following 
the major disaster declared by President Biden as a result of 
wildfires. The expiration date for the exceptions is August 10, 2026, 
which is three years after the date the President declared the major 
disaster.

DATES: This order is effective on March 12, 2024 and expires three 
years after the date the President declared the relevant area a major 
disaster, which is August 10, 2026.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Kevin Lawton, Appraiser, Real Estate Specialist, Bank 
Supervision Policy, at (202) 649-7152; or Mitchell Plave, Special 
Counsel, Chief Counsel's Office, at (202) 649-6285. If you are deaf, 
hard of hearing, or have a speech disability, please dial 7-1-1 to 
access telecommunications relay services.
    Board: Devyn Jeffereis, Senior Financial Institution Policy Analyst 
II, Division of Supervision and Regulation at (202) 452-2729; Matthew 
Suntag, Senior Counsel, Legal Division, at (202) 452-3694; or David 
Imhoff, Senior Attorney, Legal Division, at (202) 452-2249; For users 
of TTY-TRS, please call 711 from any telephone, anywhere in the United 
States.
    FDIC: Patrick J. Mancoske, Senior Examination Specialist, Division 
of Risk Management and Supervision, at (202) 898-7032, 
[email protected]; Mark Mellon, Counsel, Legal Division, at (202) 898-
3884, [email protected]; Lauren Whitaker, Counsel, Legal Division at 
(202) 898-3872, [email protected]; Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.
    NCUA: Simon Hermann, Senior Credit Specialist, Office of 
Examination and Insurance, at (703) 518-6360; Robert Leonard, 
Compliance Officer, Office of General Counsel, (703) 518-1143; Rachel 
Ackmann, Senior Staff Attorney, Office of General Counsel, at (703) 
548-2601; National Credit Union Administration, 1775 Duke Street, 
Alexandria, VA 22314.

SUPPLEMENTARY INFORMATION: 

Statement

    Section 2 of DIDRA, which added section 1123 to Title XI of 
FIRREA,\1\ authorizes the agencies to make exceptions to statutory and 
regulatory appraisal requirements for certain transactions. These 
exceptions are available for transactions involving real property 
located in an area in which the President has determined a major 
disaster exists, pursuant to 42 U.S.C. 5170, provided that the 
exception would facilitate recovery from the major disaster and is 
consistent with safety and soundness.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 3352.
---------------------------------------------------------------------------

    On August 10, 2023, the President declared that a major disaster 
existed in the State of Hawaii \2\ due to damage resulting from 
wildfires beginning on August 8, 2023. The agencies have determined 
that granting relief from the appraisal requirements set forth in Title

[[Page 17711]]

XI of FIRREA, and in the agencies' appraisal regulations, for real 
estate-related financial transactions in an area designated as 
adversely affected by the major disaster is consistent with the 
provisions of DIDRA.
---------------------------------------------------------------------------

    \2\ Press Release, The White House (August 10, 2023), available 
at https://www.whitehouse.gov/briefing-room/presidential-actions/2023/08/10/president-joseph-r-biden-jr-approves-hawaii-disaster-declaration-3/.
---------------------------------------------------------------------------

Facilitation of Recovery From the Major Disaster

    The agencies have determined that the disruption of real estate 
markets in the area designated as adversely affected by the major 
disaster interferes with the ability of depository institutions \3\ to 
obtain appraisals that comply with Title XI statutory and regulatory 
requirements. Further, the agencies have determined that the disruption 
may impede institutions in making loans and engaging in other 
transactions that would aid in the reconstruction and rehabilitation of 
the affected area. Accordingly, the agencies have determined that 
recovery from this major disaster would be facilitated by exempting 
certain transactions involving real estate located in the area 
designated as adversely affected by the wildfires from the real estate 
appraisal requirements of Title XI of FIRREA and its implementing 
regulations.\4\
---------------------------------------------------------------------------

    \3\ Depository institutions include federally insured credit 
unions.
    \4\ 12 U.S.C. 3331-3355; 12 CFR 34.41-34.47 (OCC); 12 CFR part 
225, subpart G (Board); 12 CFR part 323, subpart A (FDIC); 12 CFR 
part 722 (NCUA).
---------------------------------------------------------------------------

Consistency With Safety and Soundness

    The agencies also have determined that the exceptions are 
consistent with safety and soundness, provided that the depository 
institution determines the following: (1) the transaction involves real 
property located in the area designated as adversely affected by the 
major disaster; (2) there is a binding commitment to fund the 
transaction \5\ that was entered into on or after August 10, 2023, but 
no later than August 10, 2026; and (3) the value of the real property 
supports the institution's decision to enter into the transaction. In 
addition, the transaction must continue to be subject to review by 
management and by the agencies in the course of examinations of the 
institution.
---------------------------------------------------------------------------

    \5\ This relief also includes loans modified during the 
effective period of this order.
---------------------------------------------------------------------------

Expiration Date

    Exceptions made under section 1123 of FIRREA may be provided for no 
more than three years after the President determines a major disaster 
exists in an area.\6\ Accordingly, the exceptions provided for by this 
order shall expire three years after the date the President declared a 
major disaster existed in the State of Hawaii, which is August 10, 
2026.
---------------------------------------------------------------------------

    \6\ 12 U.S.C. 3352(b).
---------------------------------------------------------------------------

Order

    In accordance with section 2 of DIDRA, relief is hereby granted 
from the provisions of Title XI of FIRREA and the agencies' appraisal 
regulations for any real estate-related financial transaction that 
requires the services of an appraiser under those provisions, provided 
that the institution determines each of the following:
    (1) The transaction involves real property located in Maui 
County,\7\ which has been designated as adversely affected by a major 
disaster by the President as a result of the wildfires beginning on 
August 8, 2023.
---------------------------------------------------------------------------

    \7\ Press Release, The White House (August 10, 2023), available 
at https://www.whitehouse.gov/briefing-room/presidential-actions/2023/08/10/president-joseph-r-biden-jr-approves-hawaii-disaster-declaration-3/.
---------------------------------------------------------------------------

    (2) There is a binding commitment to fund the transaction \8\ that 
was entered into on or after August 10, 2023, but no later than August 
10, 2026.
---------------------------------------------------------------------------

    \8\ This relief also includes loans modified during the 
effective period of this order.
---------------------------------------------------------------------------

    (3) The value of the real property supports the institution's 
decision to enter into the transaction.

Michael J. Hsu,
Acting Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve 
System.
Ann E. Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on March 5, 2024.
James P. Sheesley,
Assistant Executive Secretary.

    By order of the National Credit Union Administration Board.

    Dated at Alexandria, VA, this 28th day of February, 2024.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2024-05159 Filed 3-11-24; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P; 7535-01-P