[Federal Register Volume 90, Number 74 (Friday, April 18, 2025)]
[Rules and Regulations]
[Pages 16455-16456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-06748]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 74 / Friday, April 18, 2025 / Rules
and Regulations
[[Page 16455]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 34
[Docket ID OCC-2025-0003]
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. OP-1864]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 323
RIN 3064-ZA46
NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 722 and 741
[Docket ID NCUA-2025-0039]
Temporary Exceptions to FIRREA Appraisal Requirements in Los
Angeles County as Affected by California Wildfires and Straight-Line
Winds
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.
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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 Los Angeles County, California following
the major disaster declared by the President as a result of wildfires
and straight-line winds. The expiration date for the exceptions is
January 8, 2028, which is 3 years after the date the President declared
the major disaster.
DATES: This order is effective on April 18, 2025 and expires 3 years
after the date the President declared the relevant area a major
disaster, which is January 8, 2028.
FOR FURTHER INFORMATION CONTACT:
OCC: Kevin Lawton, Appraiser, Real Estate Specialist, Bank
Supervision Policy, at (202) 649-6220; Mitchell Plave, Special Counsel,
Chief Counsel's Office, at (202) 649-5400; or Joanne Phillips, Counsel,
at (202) 549-5400. 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, Special Counsel, Legal Division, at (202) 452-3694; or Trevor
Feigleson, Senior Counsel, Legal Division, at (202) 452-3274. 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]; Jamie Z. Goodson, Counsel, Legal Division at (202)
898-6685, [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.
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\1\ 12 U.S.C. 3352.
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On January 8, 2025, the President declared that a major disaster
existed in the State of California \2\ due to damage resulting from
wildfires and straight-line winds beginning on January 7, 2025. The
agencies have determined that granting relief from the appraisal
requirements set forth in Title XI of FIRREA, and in the agencies'
appraisal regulations, for real estate-related financial transactions
in Los Angeles County, California is consistent with the provisions of
DIDRA.
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\2\ Press Release, FEMA (January 8, 2025), available at https://www.fema.gov/press-release/20250109/president-joseph-r-biden-jr-approves-major-disaster-declaration-california.
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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 and straight-line
winds from the real estate appraisal requirements of
[[Page 16456]]
Title XI of FIRREA and its implementing regulations.\4\
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\3\ Depository institutions include federally-insured credit
unions.
\4\ 12 U.S.C. 3331-3355; 12 CFR 34.41 through 34.47 (OCC); 12
CFR part 225, subpart G (Board); 12 CFR part 323, subpart A (FDIC);
12 CFR part 722 (NCUA).
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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 January 8, 2025, but
no later than January 8, 2028; 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.
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\5\ This relief also includes loans modified during the
effective period of this order.
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Expiration Date
Exceptions made under section 1123 of FIRREA may be provided for no
more than 3 years after the President determines a major disaster
exists in an area.\6\ Accordingly, the exceptions provided for by this
order shall expire 3 years after the date the President declared a
major disaster existed in Los Angeles County, California, which is
January 8, 2028.
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\6\ 12 U.S.C. 3352(b).
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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 Los Angeles
County,\7\ which has been designated as adversely affected by a major
disaster by the President as a result of the wildfires and straight-
line winds beginning on January 7, 2025.
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\7\ Press Release, FEMA (January 8, 2025), available at https://www.fema.gov/press-release/20250109/president-joseph-r-biden-jr-approves-major-disaster-declaration-california.
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(2) There is a binding commitment to fund the transaction \8\ that
was entered into on or after January 8, 2025, but no later than January
8, 2028.
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\8\ This relief also includes loans modified during the
effective period of this order.
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(3) The value of the real property supports the institution's
decision to enter into the transaction.
Rodney E. Hood,
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 April 9, 2025.
Jennifer M. Jones,
Deputy Executive Secretary.
By order of the National Credit Union Administration Board.
Dated at Alexandria, VA, this 10th day of April, 2025.
Melane Conyers-Ausbrooks,
Secretary of the NCUA Board.
[FR Doc. 2025-06748 Filed 4-17-25; 8:45 am]
BILLING CODE 6714-01-P; 7535-01-P; 4810-33-P; 6210-01-P