80 FR 30499 - Agency Information Collection Activities: Submission to the Office of Management and Budget for Review; Reinstatement of a Previously Approved Collection; Comment Request; Loans in Areas Having Special Flood Hazards

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 80, Issue 102 (May 28, 2015)

National Credit Union Administration is announcing that a proposed collection of information has been submitted to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 U.S.C. Chapter 35). The purpose of this notice is to allow for 30 days of public comment. This information collection is published to obtain comments from the public. The information collection relates to the requirements under the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973 (Flood Acts),\1\ as amended by the National Flood Insurance Reform Act of 1994.\2\ NCUA has implemented these flood insurance requirements in its regulations. Under the Flood Acts and the regulations, federally insured credit unions must follow recordkeeping and disclosure provisions regarding certain loans that require flood insurance. ---------------------------------------------------------------------------

[Federal Register Volume 80, Number 102 (Thursday, May 28, 2015)]
[Notices]
[Pages 30499-30501]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12821]


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NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Submission to the 
Office of Management and Budget for Review; Reinstatement of a 
Previously Approved Collection; Comment Request; Loans in Areas Having 
Special Flood Hazards

AGENCY: National Credit Union Administration (NCUA).

ACTION: Request for Comment.

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SUMMARY: National Credit Union Administration is announcing that a 
proposed collection of information has been submitted to the Office of 
Management and Budget (OMB) for review and clearance under the 
Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 U.S.C. Chapter 35). 
The purpose of this notice is to allow for 30 days of public comment.
    This information collection is published to obtain comments from 
the public. The information collection relates to the requirements 
under the National Flood Insurance Act of 1968 and the Flood Disaster 
Protection Act of 1973 (Flood Acts),\1\ as amended by the National 
Flood Insurance Reform Act of 1994.\2\ NCUA has implemented these flood 
insurance requirements in its regulations. Under the Flood Acts and the 
regulations, federally insured credit unions must follow recordkeeping 
and disclosure provisions regarding certain loans that require flood 
insurance.
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    \1\ These statutes are codified at 42 U.S.C. 4001-4129.
    \2\ Title V of the Riegle Community Development and Regulatory 
Improvement Act of 1994, also known as the National Flood Insurance 
Reform Act of 1994, comprehensively amended the Federal flood 
insurance statutes. See Public Law 103-325, 108 Stat. 2255 (1994).

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DATES: Comments will be accepted until June 29, 2015.

ADDRESSES: Interested persons are invited to submit comments to:
    (i) Desk Officer for the National Credit Union Administration, 
3133-0143, U.S. Office of Management and Budget, 725 17th Street NW., 
#10102, Washington, DC 20503, [email protected]; and
    (ii) Jessica Khouri, National Credit Union Administration, 1775 
Duke Street, Alexandria, VA 22314-3428, Fax No. 703-837-2861, 
[email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information, a 
copy of the information collection request, or a copy of submitted 
comments should be directed to Jessica Khouri by mail at the National 
Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-
3428, by fax at Fax No. 703-837-2861, or by email at [email protected].

SUPPLEMENTARY INFORMATION: 

I. Abstract and Request for Comments

    NCUA is reinstating a previously approved collection of information 
for 3133-0143 (12 CFR part 760, Loans in Areas Having Special Flood 
Hazards). The Flood Acts made the purchase of flood insurance mandatory 
in connection with loans made by

[[Page 30500]]

regulated lending institutions (such as credit unions) when the loans 
are secured by improved real estate or mobile homes located in a 
special flood hazard area in a participating community. NCUA, along 
with other financial institution regulators, issued regulations 
governing the lending institutions they supervise. Therefore, under 
part 760 of NCUA's regulations, a federally insured credit union shall 
not make, increase, extend, or renew any designated loan unless the 
building or mobile home and any personal property securing the loan is 
covered by flood insurance for the term of the loan. A designated loan 
means a loan secured by a building or mobile home that is located or to 
be located in a special flood hazard area in which flood insurance is 
available under the Flood Acts. The credit union must also provide 
certain disclosures to borrowers and abide by recordkeeping 
requirements.
    Specifically, a federally insured credit union is required to:
     Retain a completed copy of the Standard Flood Hazard 
Determination Form developed by the Federal Emergency Management Agency 
(FEMA). This form is used by lenders, such as credit unions, to 
document their determination of whether a building or mobile home 
offered as collateral security for a loan is or will be located in a 
special flood hazard area in which flood insurance is available.
     Notify a borrower and the servicer when a building or 
mobile home offered as collateral security for a loan is determined to 
be in a special flood hazard area and notify them whether flood 
insurance is available.
     Notify a borrower and the servicer if the secured property 
becomes newly located in a special flood hazard area due to remapping 
of flood hazard areas by FEMA, which would obligate the borrower to 
obtain flood insurance. In addition, the credit union or its servicer 
must purchase flood insurance on the borrower's behalf if the borrower, 
after notification, fails to obtain mandated flood insurance due to 
remapping, and charge the borrower for the cost.
     Notify a borrower whose mandated flood insurance policy 
has expired or if the policy covers an amount less than the required 
amount, of the borrower's obligation to obtain a flood insurance policy 
for the required amount. If the borrower fails to obtain a flood 
insurance policy for the required amount following this notification, 
the credit union or its servicer must purchase flood insurance on the 
borrower's behalf and charge the borrower for the cost.
     Notify FEMA of the identity of, and any change in, the 
servicer of a loan secured by a building or mobile home located or to 
be located in a special flood hazard area.
    On August 12, 2013, NCUA published a notice in the Federal Register 
(78 FR 48912) requesting public comments for 60 days on the 
reinstatement of 3133-0143, a previously approved information 
collection for 12 CFR part 760 (Loans in Areas Having Special Flood 
Hazards). NCUA received no comments.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. NCUA requests that you send your 
comments on this collection to the locations listed in the addresses 
section. Your comments should address: (a) The necessity of the 
information collection for the proper performance of NCUA, including 
whether the information will have practical utility; (b) the accuracy 
of our estimate of the burden (hours and cost) of the collection of 
information, including the validity of the methodology and assumptions 
used; (c) ways we could enhance the quality, utility, and clarity of 
the information to be collected; and (d) ways we could minimize the 
burden of the collection of the information on the respondents such as 
the use of automated collection techniques or other forms of 
information technology. It is NCUA's policy to make all comments 
available to the public for review.

II. Data

    Title: Loans in Areas Having Special Flood Hazards, 12 CFR part 
760.
    OMB Number: 3133-0143.
    Form Number: None.
    Type of Review: Reinstatement of a previously approved collection.
    Description: Federally insured credit unions are required by the 
Flood Acts and 12 CFR part 760 to make certain disclosures and maintain 
compliance records related to flood insurance.
    Borrowers use the disclosed information to make valid purchase 
decisions. NCUA uses the maintained records to verify compliance with 
the Flood Acts and part 760.
    Respondents: Federally insured credit unions granting real estate 
loans.
    Estimated No. of Respondents: 4,032 credit unions.
    Frequency of Response: Annually.
    Estimated Total Annual Burden Hours: 102,144.
    Estimated Total Annual Cost: $4.43 million.
    The following are the specific underlying ICRs that comprise the 
total:
    ICR related to required recordkeeping of the Standard Flood Hazard 
Determination Form.
    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 270.
    Estimated Time per Response: 2.5 minutes (\1/24\ hour) per loan.
    Estimated Annual Burden: 45,360 recordkeeping hours.
    ICRs related to disclosures:

1. Notice of Special Flood Hazards to Borrower and Servicer

    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 54.
    Estimated Time per Response: 5 minutes (\1/12\ hour) to execute 
this notice.
    Estimated Annual Burden: 18,144 reporting hours.

2. Notice to FEMA of Servicer

    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 54.
    Estimated Time per Response: 5 minutes (\1/12\ hour) to execute 
this notice.
    Estimated Annual Burden: 18,144 reporting hours.

3. Notice to FEMA of Change in Servicer

    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 27.
    Estimated Time per Response: 5 minutes (\1/12\ hour) to execute 
this notice.
    Estimated Annual Burden: 9,072 reporting hours.

4. Notice to Borrower of Lapsed Mandated Flood Insurance

    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 11.
    Estimated Time per Response: 5 minutes (\1/12\ hour) to execute 
this notice.
    Estimated Annual Burden: 3,696 reporting hours.

5. Purchase of Force-Placed Flood Insurance

    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 3.
    Estimated Time per Response: 15 minutes (\1/4\ hour) to execute 
this notice.
    Estimated Annual Burden: 3,024 reporting hours.

6. Notice to Borrower and Servicer of Remapping

    Respondents: 4,032 credit unions.

[[Page 30501]]

    Estimated Annual Frequency of Response: 5.
    Estimated Time per Response: 5 minutes (\1/12\ hour) to execute 
this notice.
    Estimated Annual Burden: 1,680 reporting hours.

7. Purchase of Force-Placed Flood Insurance for Borrower from Remapping

    Respondents: 4,032 credit unions.
    Estimated Annual Frequency of Response: 3.
    Estimated Time per Response: 15 minutes (\1/4\ hour) to execute 
this notice.
    Estimated Annual Burden: 3,024 reporting hours.
    Therefore, NCUA estimates that the total burden hours for this 
collection of information is:
    45,360 recordkeeping hours.
    56,784 disclosure hours.
    102,144 total burden hours.

    By the National Credit Union Administration Board on May 21, 
2015.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2015-12821 Filed 5-27-15; 8:45 am]
 BILLING CODE 7535-01-P